All posts by Richy George

Ten questions for 2020 presidential candidate John Delaney

Posted by on 13 September, 2019

This post was originally published on this site

In November 2020, America will go to the polls to vote in perhaps the most consequential election in a generation. The winner will lead the country amid great social, economic and ecological unrest. The 2020 election will be a referendum on both the current White House and the direction of the country at large.

Nearly 20 years into the young century, technology has become a pervasive element in all of our lives, and will continue to only grow more important. Whoever takes the oath of office in January 2021 will have to answer some difficult questions, raging from an impending climate disaster to concerns about job loss at the hands of robotics and automation.

Many of these questions are overlooked in day to day coverage of candidates and during debates. In order to better address the issues, TechCrunch staff has compiled a 10-part questionnaire across a wide range of tech-centric topics. The questions have been sent to national candidates, regardless of party. We will be publishing the answers as we receive them. Candidates are not required to answer all 10 in order for us to publish, but we will be noting which answers have been left blank.

First up is former Congressman John Delaney. Prior to being elected to Maryland’s 6th Congressional District, Delaney co-founded and led healthcare loan service Health Care Financial Partners (HCFP) and  commercial lender CapitalSource. He was elected to Congress in 2013, beating out a 10-term Republican incumbent. Rumored to be running against Maryland governor Larry Hogan for a 2018 bid, Delaney instead announced plans to run for president in 2020.

1. Which initiatives will you prioritize to limit humankind’s impact on climate and avoid potential climate catastrophe?

My $4 trillion Climate Plan will enable us to reach the goal of net zero emissions by 2050, which the IPCC says is the necessary target to avoid the worst effects of climate change. The centerpiece of my plan is a carbon-fee-and-dividend that will put a price on carbon emissions and return the money to the American people through a dividend. My plan also includes increased federal funding for renewable energy research, advanced nuclear technologies, direct air capture, a new Climate Corps program, and the construction of the Carbon Throughway, which would transport captured carbon from all over the country to the Permian Basin for reuse and permanent sequestration.

2. What is your plan to increase black and Latinx startup founders’ access to funding?

As a former entrepreneur who started two companies that went on to be publicly traded, I am a firm believer in the importance of entrepreneurship. To ensure people from all backgrounds have the support they need to start a new business, I will create nonprofit banks to serve economically distressed communities, launch a new SBIC program to help provide access to capital to minority entrepreneurs, and create a grant program to fund business incubators and accelerators at HBCUs. Additionally, I pledge to appoint an Entrepreneurship Czar who will be responsible for promoting entrepreneurship-friendly policies at all levels of government and encouraging entrepreneurship in rural and urban communities that have been left behind by venture capital investment.

3. Why do you think low-income students are underrepresented in STEM fields and how do you think the government can help fix that problem?

I think a major part of the problem is that schools serving low-income communities don’t have the resources they need to provide a quality STEM education to every student. To fix that, I have an education plan that will increase investment in STEM education and use Title I funding to eliminate the $23 billion annual funding gap between predominantly white and predominantly black school districts. To encourage students to continue their education after they graduate from high school and ensure every student learns the skills they need, my plan also provides two years of free in-state tuition and fees at a public university, community college, or technical school to everyone who completes one year of my mandatory national service program.

4. Do you plan on backing and rolling out paper-only ballots or paper-verified election machines? With many stakeholders in the private sector and the government, how do you aim to coordinate and achieve that?

Making sure that our elections are secure is vital, and I think using voting machines that create a voter-verified paper record could improve security and increase voters’ confidence in the integrity of our elections. To address other facets of the election security issue, I have proposed creating a Department of Cybersecurity to help protect our election systems, and while in Congress I introduced election security legislation to ensure that election vendors are solely owned and controlled by American citizens.

5. What, if any, federal regulation should be enacted for autonomous vehicles?

I was proud to be the founder of the Congressional Artificial Intelligence Caucus, a bipartisan group of lawmakers dedicated to understanding the impacts of advances in AI technology and educating other legislators so they have the knowledge they need to enact policies that ensure these innovations benefit Americans. We need to use the legislative process to have a real conversation involving experts and other stakeholders in order to develop a comprehensive set of regulations regarding autonomous vehicles, which should include standards that address data collection practices and other privacy issues as well as more fundamental questions about public safety.

6. How do you plan to achieve and maintain U.S. superiority in space, both in government programs and private industry?

Space exploration is tremendously important to me as a former Congressman from Maryland, the home of NASA’s Goddard Space Flight Center, major space research centers at the University of Maryland, and many companies that develop crucial aerospace technologies. As president, I will support the NASA budget and will continue to encourage innovation in the private sector.

7. Increased capital in startups founded by American entrepreneurs is a net positive, but should the U.S. allow its businesses to be part-owned by foreign governments, particularly the government of Saudi Arabia?

I am concerned that joint ventures between U.S. businesses and foreign governments, including state-owned enterprises, could facilitate the theft of intellectual property, potentially allowing foreign governments to benefit from taxpayer-funded research. We need to put in place greater protections that defend American innovation from theft.

8. Will U.S.-China technology decoupling harm or benefit U.S. innovation and why?

In general, I am in favor of international technology cooperation but in the case of China, it engages in predatory economic behavior and disregards international rules. Intellectual property theft has become a big problem for American businesses as China allows its companies to steal IP through joint ventures. In theory, U.S.-China collaboration could advance technology and innovation but without proper IP and economic protections, U.S.-China joint ventures and partnerships can be detrimental to the U.S.

9. How large a threat does automation represent to American jobs? Do you have a plan to help train low-skilled workers and otherwise offset job loss?

Automation could lead to the disruption of up to 54 million American jobs if we aren’t prepared and we don’t have the right policies. To help American workers transition to the high-tech, high-skill future economy, I am calling for a national AI strategy that will support public/private AI partnerships, develop a social contract with the communities that are negatively impacted by technology and globalization, and create updated education and job training programs that will help students and those currently in the workforce learn the skills they need.

To help provide jobs to displaced workers and drive economic growth in communities that suffer negative effects from automation, I have proposed a $2 trillion infrastructure plan that would create an infrastructure bank to facilitate state and local government investment, increase the Highway Trust Fund, create a Climate Infrastructure Fund, and create five new matching funds to support water infrastructure, school infrastructure, deferred maintenance projects, rural broadband, and infrastructure projects in disadvantaged communities in urban and rural areas. In addition, my proposed national service program will create new opportunities that allow young adults to learn new skills and gain valuable work experience. For example, my proposal includes a new national infrastructure apprenticeship program that will award a professional certificate proving mastery of particular skill sets for those who complete the program.

10. What steps will you take to restore net neutrality and assure internet users that their traffic and data are safe from manipulation by broadband providers?

I support the Save Net Neutrality Act to restore net neutrality, and I will appoint FCC commissioners who are committed to maintaining a fair and open internet. Additionally, I would work with Congress to update our digital privacy laws and regulations to protect consumers, especially children, from their data being collected without consent.

Posted Under: Tech News
The mainframe business is alive and well, as IBM announces new Z15

Posted by on 12 September, 2019

This post was originally published on this site

It’s easy to think about mainframes as some technology dinosaur, but the fact is these machines remain a key component of many large organization’s computing strategies. Today, IBM announced the latest in their line of mainframe computers, the Z15.

For starters, as you would probably expect, these are big and powerful machines capable of handling enormous workloads. For example, this baby can process up to 1 trillion web transactions a day and handle 2.4 million Docker containers, while offering unparalleled security to go with that performance. This includes the ability to encrypt data once, and it stays encrypted, even when it leaves the system, a huge advantage for companies with a hybrid strategy.

Speaking of which, you may recall that IBM bought Red Hat last year for $34 billion. That deal closed in July and the companies have been working to incorporate Red Hat technology across the IBM business including the z line of mainframes.

IBM announced last month that it was making OpenShift, Red Hat’s Kubernetes-based cloud-native tools, available on the mainframe running Linux. This should enable developers, who have been working on OpenShift on other systems to move seamlessly to the mainframe without special training.

IBM sees the mainframe as a bridge for hybrid computing environments, offering a highly secure place for data that when combined with Red Hat’s tools, can enable companies to have a single control plane for applications and data wherever it lives.

While it could be tough to justify the cost of these machines in the age of cloud computing, Ray Wang, founder and principal analyst at Constellation Research, says it could be more cost-effective than the cloud for certain customers. “If you are a new customer, and currently in the cloud and develop on Linux, then in the long run the economics are there to be cheaper than public cloud if you have a lot of IO, and need to get to a high degree of encryption and security” he said.

He added, “The main point is that if you are worried about being held hostage by public cloud vendors on pricing, in the long run the Z is a cost-effective and secure option for owning compute power and working in a multi-cloud, hybrid cloud world.”

Companies like airlines and financial services companies continue to use mainframes, and while they need the power these massive machines provide, they need to do so in a more modern context. The z15 is designed to provide that link to the future, while giving these companies the power they need.

Posted Under: Tech News
SmartDrive snaps up $90M for in-truck video telematics solutions for safety and fuel efficiency

Posted by on 12 September, 2019

This post was originally published on this site

Trucks and other large commercial vehicles are the biggest whales on the road today — are they also, by virtue of that size, some of the most dangerous and inefficient if they are driven badly. Today, a startup that has built a platform aimed at improving both of those areas has raised a large round of funding to continue fuelling (so to speak) its own growth: SmartDrive, a San Diego-based provider of video-based telematics and transportation insights, has snapped up a round of $90 million.

The company is not disclosing its valuation but according to PitchBook, it was last valued (in 2017) at $290 million, which would put the valuation now around $380 million. But given that the company has been growing well — it says that in the first half of this year, its contracted units were up 48%, while sales were up by 44% — that figure may well be higher. (We are asking.)

The funding comes at an interesting time for fleet management and the trucking industry. A lot of the big stories about automotive technology at the moment seem to be focused on autonomous vehicles for private usage, but that leaves a large — and largely legacy — market in the form of fleet management and commercial vehicles.

That’s not to say it’s been completely ignored, however. Bigger companies like Uber, Telsa and Volvo, and startups like Nikola and more are all building smarter trucks, and just yesterday Samsara, which makes an industrial IoT platform that works, in part, to provide fleet management to the trucking industry, raised $300 million on a $6.3 billion valuation.

The telematics market was estimated to be worth $25.5 billion in 2018 and is forecast to grow to some $98 billion by 2026.

The round was led by TPG Sixth Street Partners, a division of investment giant TPG (which backs the likes of Spotify and many others), which earlier this year was raising a $2 billion fund for growth-stage investments. Unnamed existing investors also participated. The company prior to this had raised $230 million, with other backers including Founders Fund, NewView Capital, Oak Investment Partners, Michelin and more. (NEA had also been an investor but has more recently sold its stake.)

SmartDrive has been around since 2005 and focuses on a couple of key areas. Tapping data from the many sensors that you have today in commercial vehicles, it builds up a picture of how specific truckers are handling their vehicles, from their control on tricky roads to what gears and speed they are using as they go up inclines, and how long they idle their engines. The resulting data is used both to provide a better picture to fleet managers of that performance, and to highlight specific areas where the trucker can improve his or her performance, and how.

Analytics and data provided to customers include multi-camera 360-degree views, extended recording and U-turn triggering, along with diagnostics on specific driver performance. The company claims that the information has led to more satisfaction among drivers and customers, with driver retention rates of 70% or higher and improvements to 9 miles per gallon (mpg) on trips, versus industry averages of 20% driver retention and 6 mpg.

“This is an exciting time at SmartDrive and in the transportation sector overall as adoption of video-based telematics continues to accelerate,” stated Steve Mitgang, SmartDrive CEO, in a statement. “Building on our pioneering video-based safety program, our vision of an open platform powering best-of-breed video, compliance and telematics applications is garnering significant traction across a diverse range of fleets given the benefits of choice, flexibility and a lower total cost of ownership. The investment from TPG Sixth Street Partners and our existing investors will fuel continued innovation in areas such as computer vision and AI, while also enhancing sales and marketing initiatives and further international expansion.”

The focus for SmartDrive seems to be on how drivers are doing in specific circumstances: it doesn’t seem to suggest whether there could have been better routes, or if better fleet management could have resulted in improved performance. (That could be one area where it grows, or fits into a bigger platform, however.)

“SmartDrive is a market leader in the large and expanding transportation safety and intelligence sector and we are pleased to be investing in a growing company led by such a talented team,” noted Bo Stanley, partner and co-head of the Capital Solutions business at TPG Sixth Street Partners, in a statement. “SmartDrive’s proprietary data analytics platform and strong subscriber base put it in a great position to continue to capitalize on its track record of innovation and the broader secular trend of higher demand for safer and smarter transportation.”

Posted Under: Tech News
IBM brings Cloud Foundry and Red Hat OpenShift together

Posted by on 12 September, 2019

This post was originally published on this site

At the Cloud Foundry Summit in The Hague, IBM today showcased its Cloud Foundry Enterprise Environment on Red Hat’s OpenShift container platform.

For the longest time, the open-source Cloud Foundry Platform-as-a-Service ecosystem and Red Hat’s Kubernetes-centric OpenShift were mostly seen as competitors, with both tools vying for enterprise customers who want to modernize their application development and delivery platforms. But a lot of things have changed in recent times. On the technical side, Cloud Foundry started adopting Kubernetes as an option for application deployments and as a way of containerizing and running Cloud Foundry itself.

On the business side, IBM’s acquisition of Red Hat has brought along some change, too. IBM long backed Cloud Foundry as a top-level foundation member, while Red Hat bet on its own platform instead. Now that the acquisition has closed, it’s maybe no surprise that IBM is working on bringing Cloud Foundry to Red Hat’s platform.

For now, this work is still officially still a technology experiment, but our understanding is that IBM plans to turn this into a fully supported project that will give Cloud Foundry users the option to deploy their application right to OpenShift, while OpenShift customers will be able to offer their developers the Cloud Foundry experience.

“It’s another proof point that these things really work well together,” Cloud Foundry Foundation CTO Chip Childers told me ahead of today’s announcement. “That’s the developer experience that the CF community brings and in the case of IBM, that’s a great commercialization story for them.”

While Cloud Foundry isn’t seeing the same hype as in some of its earlier years, it remains one of the most widely used development platforms in large enterprises. According to the Cloud Foundry Foundation’s latest user survey, the companies that are already using it continue to move more of their development work onto the platform and the according to the code analysis from source{d}, the project continues to see over 50,000 commits per month.

“As businesses navigate digital transformation and developers drive innovation across cloud native environments, one thing is very clear: they are turning to Cloud Foundry as a proven, agile, and flexible platform — not to mention fast — for building into the future,” said Abby Kearns, executive director at the Cloud Foundry Foundation. “The survey also underscores the anchor Cloud Foundry provides across the enterprise, enabling developers to build, support, and maximize emerging technologies.”image024

Also at this week’s Summit, Pivotal (which is in the process of being acquired by VMware) is launching the alpha version of the Pivotal Application Service (PAS) on Kubernetes, while Swisscom, an early Cloud Foundry backer, is launching a major update to its Cloud Foundry-based Application Cloud.

Posted Under: Tech News
Kubernetes co-founder Craig McLuckie is as tired of talking about Kubernetes as you are

Posted by on 11 September, 2019

This post was originally published on this site

“I’m so tired of talking about Kubernetes . I want to talk about something else,” joked Kubernetes co-founder and VP of R&D at VMware Craig McLuckie during a keynote interview at this week’s Cloud Foundry Summit in The Hague. “I feel like that 80s band that had like one hit song — Cherry Pie.”

He doesn’t quite mean it that way, of course (though it makes for a good headline, see above), but the underlying theme of the conversation he had with Cloud Foundry executive director Abby Kearns was that infrastructure should be boring and fade into the background, while enabling developers to do their best work. “We still have a lot of work to do as an industry to make the infrastructure technology fade into the background and bring forwards the technologies that developers interface with, that enable them to develop the code that drives the business, etc. […] Let’s make that infrastructure technology really, really boring. ”

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What McLuckie wants to talk about is developer experience and with VMware’s intend to acquire Pivotal, it’s placing a strong bet on Cloud Foundry as one of the premiere development platforms for cloud native applications. For the longest time, the Cloud Foundry and Kubernetes ecosystem, which both share an organizational parent in the Linux Foundation, have been getting closer, but that move has accelerated in recent months as the Cloud Foundry ecosystem has finished work on some of its Kubernetes integrations.

McLuckie argues that the Cloud Native Computing Foundation, the home of Kubernetes and other cloud-native open-source projects, was always meant to be a kind of open-ended organization that focuses on driving innovation. And that created a large set of technologies that vendors can choose from. “But when you start to assemble that, I tend to think about you building up this cake which is your development stack, you discover that some of those layers of the cake, like Kubernetes, have a really good bake. They are done to perfection,” said McLuckie, who is clearly a fan of the Great British Baking show. “And other layers, you look at it and you think, wow, that could use a little more bake, it’s not quite ready yet. […] And we haven’t done a great job of pulling it all together and providing a recipe that delivers an entirely consumable experience for everyday developers.”

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He argues that Cloud Foundry, on the other hand, has always focused on building that highly opinionated, consistent developer experience. “Bringing those two communities together, I think, is going to have incredibly powerful results for both communities as we start to bring these technologies together,” he said.

With the Pivotal acquisition still in the works, McLuckie didn’t really comment on what exactly this means for the path forward for Cloud Foundry and Kubernetes (which he still talked about with a lot of energy, despite being tired of it), but it’s clear that he’s looking to Cloud Foundry to enable that developer experience on top of Kubernetes that abstracts all of the infrastructure away for developers and makes deploying an application a matter of a single CLI command.

Bonus: Cherry Pie.

Posted Under: Tech News
Explorium reveals $19.1M in total funding for machine learning data discovery platform

Posted by on 11 September, 2019

This post was originally published on this site

Explorium, a data discovery platform for machine learning models, received a couple of unannounced funding rounds over the last year — a $3.6 million seed round last September and a $15.5 million Series A round in March. Today, it made both of these rounds public.

The seed round was led by Emerge with participation of F2 Capital. The Series A was led by Zeev Ventures with participation from the seed investors. The total raised is $19.1 million.

The company founders, who have a data science background, found that it was problematic to find the right data to build a machine learning model. Like most good startup founders confronted with a problem, they decided to solve it themselves by building a data discovery platform for data scientists.

CEO and co-founder, Maor Shlomo says that the company wanted to focus on the quality of the data because not much work has been done there. “A lot of work has been invested on the algorithmic part of machine learning, but the algorithms themselves have very much become commodities. The challenge now is really finding the right data to feed into those algorithms,” Sholmo told TechCrunch.

It’s a hard problem to solve, so they built a kind of search engine that can go out and find the best data wherever it happens to live, whether it’s internally or in an open data set, public data or premium databases. The company has partnered with thousands of data sources, according to Schlomo, to help data scientist customers find the best data for their particular model.

“We developed a new type of search engine that’s capable of looking at the customers data, connecting and enriching it with literally thousands of data sources, while automatically selecting what are the best pieces of data, and what are the best variables or features, which could actually generate the best performing machine learning model,” he explained.

Shlomo sees a big role for partnerships, whether that involves data sources or consulting firms, who can help push Explorium into more companies.

Explorium has 63 employees spread across offices in Tel Aviv, Kiev and San Francisco. It’s still early days, but Sholmo reports “tens of customers.” As more customers try to bring data science to their companies, especially with a shortage of data scientists, having a tool like Explorium could help fill that gap.

Posted Under: Tech News
ScyllaDB takes on Amazon with new DynamoDB migration tool

Posted by on 11 September, 2019

This post was originally published on this site

There are a lot of open source databases out there, and ScyllaDB, a NoSQL variety, is looking to differentiate itself by attracting none other than Amazon users. Today, it announced a DynamoDB migration tool to help Amazon customers move to its product.

It’s a bold move, but Scylla, which has a free open source product along with paid versions, has always had a penchant for going after bigger players. It has had a tool to help move Cassandra users to ScyllaDB for some time.

CEO Dor Laor says DynamoDB customers can now also migrate existing code with little modification. “If you’re using DynamoDB today, you will still be using the same drivers and the same client code. In fact, you don’t need to modify your client code one bit. You just need to redirect access to a different IP address running Scylla,” Laor told TechCrunch.

He says that the reason customers would want to switch to Scylla is because it offers a faster and cheaper experience by utilizing the hardware more efficiently. That means companies can run the same workloads on fewer machines, and do it faster, which ultimately should translate to lower costs.

The company also announced a $25 million Series C extension led by Eight Roads Ventures. Existing investors Bessemer Venture Partners, Magma Venture Partners, Qualcomm Ventures and TLV Partners also participated. Scylla has raised a total of $60 million, according to the company.

The startup has been around for 6 years and customers include Comcast, GE, IBM and Samsung. Laor says that Comcast went from running Cassandra on 400 machines to running the same workloads with Scylla on just 60.

Laor is playing the long game in the database market, and it’s not about taking on Cassandra, DynamoDB or any other individual product. “Our main goal is to be the default NoSQL database where if someone has big data, real-time workloads, they’ll think about us first, and we will become the default.”

Posted Under: Tech News
HashiCorp announces fully managed service mesh on Azure

Posted by on 10 September, 2019

This post was originally published on this site

Service mesh is just beginning to take hold in the cloud native world, and as it does, vendors are looking for ways to help customers understand it. One way to simplify the complexity of dealing with the growing number of service mesh products out there is to package it as a service. Today, HashiCorp announced a new service on Azure to address that need, building it into the Consul product.

HashiCorp co-founder and CTO Armon Dadgar says it’s a fully managed service. “We’ve partnered closely with Microsoft to offer a native Consul [service mesh] service. At the highest level, the goal here is, how do we make it basically push button,” Dadgar told TechCrunch.

He adds that there is extremely tight integration in terms of billing and permissions, as well other management functions, as you would expect with a managed service in the public cloud. Brendan Burns, one of the original Kubernetes developers, who is now a distinguished engineer at Microsoft, says the HashiCorp solution really strips away a lot of the complexity associated with running a service mesh.

“In this case, HashiCorp is using some integration into the Azure control plane to run Consul for you. So you just consume the service mesh. You don’t have to worry about the operations of the service mesh, Burns said. He added, “This is really turning it into a service instead of a do-it-yourself exercise.”

Service meshes are tools used in conjunction with containers and Kubernetes in a dynamic cloud native environment to help micro services communicate and interoperate with one another. There is a growing number of them including Istio, Envoy and Linkerd jockeying for position right now.

Burns makes it clear that while Microsoft is working closely with HashiCorp on this project, it’s also working with other vendors, as well. “Our goal with the service mesh interface specification was really to let a lot of partners be successful on the platform. You know, there’s a bunch of different service meshes. It’s a place where we feel like there’s a lot of evolution and experimentation happening, so we want to make sure that our customers can can find the right solution for them,” Burns explained.

The HashiCorp Consul service is currently in private Beta.

Posted Under: Tech News
HashiCorp expands Terraform free version, adds paid tier for SMBs

Posted by on 10 September, 2019

This post was originally published on this site

HashiCorp has had a free tier for its Terraform product in the past, but it was basically for a single user. Today, the company announced it was expanding that free tier to allow up to five users, while also increasing the range of functions that are available before you have to pay.

“We’re announcing a pretty large expansion of the Terraform Cloud free tier. So many of the capabilities that used to be exclusively in our Terraform enterprise product, we’re now bringing down into the Terraform free tier. It allows you to do central actual execution of Terraform and apply the full lifecycle as part of the free tier,” HashiCorp co-founder and CTO Armon Dadgar explained.

In addition, the company announced a middle tier aimed at SMBs. Dadgar says the new pricing tier helped address some obvious gaps in the pricing catalogue for a large sets of users, who outgrew the free product, yet weren’t ready for the enterprise version.

“We were seeing was a lot of friction with our SMB customers trying to figure out how to go from one-user Terraform to a team of five people or a team of 20 people. And I think the challenge was that we had the enterprise product, which in terms of deployment and pricing, is really geared toward Global 2000 kinds of companies,” Dadgar told TechCrunch.

He said, this left a huge gap for smaller teams of between five and 100 user teams, which forced those teams to kludge together solutions to fit their requirements. The company thought it would make more sense to have a paid tier specifically geared for this group that would create a logical path for all users on the platform, while solving a known problem.

“It’s a logical path, but it also just answers the constant questions on forums and mailing lists regarding how to collaborate [with smaller teams]. Before, we didn’t have a prescriptive answer, and so there was a lot of DIY, and this is our attempt at a prescriptive answer of how you should do this,” he said.

Terraform is the company’s tool for defining, deploying and managing infrastructure as code. There is an open source product, an on prem version and a SaaS version.

Posted Under: Tech News
Payments giant Stripe debuts a credit card in its latest step into the financing fray

Posted by on 10 September, 2019

This post was originally published on this site

Last week, when the popular payments startup Stripe made some waves with its first move into money lending through the launch of Stripe Capital, we reported that the company was also soon going to be launching a credit card. Now, that news is official. Today, the company is doubling down on financing with the launch of corporate cards for business customers.

Announced officially today to coincide with the company’s developer event Stripe Sessions, the Stripe Corporate Card — as the product is officially called — is a Visa that will be open to businesses that are incorporated in the US, although they can operate elsewhere.

Notably, users are expected to pay their balance in full each month, so for now there is no interest rate, or fee, to use the card, with Stripe making its money by way of the interchange fee that comes with every transaction using the card.

“We’re not freezing cards based on late or no payments,” Cristina Cordova, the business lead overseeing the launch, said in an interview. “A pretty common reason for non-payment is that a person switched bank accounts and forgot to update the information. But we think we’ll have fewer problems because we have banking information for accepting revenue, by way of our payments business.”

The move is another major step ahead for Stripe as it continues to diversify its business and bring on more financial products to become a one-stop shop for e-commerce and other companies for all the transactions they might need to make in the course of their lives. It is a little ironic that it’s taken years for credit cards to get added into the mix, considering Stripe’s earliest homepages and marketing efforts were built around the design of a credit card (a reference to taking payments online, not issuing credit, of course).

In any case, the list of products now offered by Stripe is long — longer, you might say, than it takes to incorporate a Stripe service into a developer workflow. In addition to its API-based flagship payments product — which is available as a direct service or, via Stripe Connect, for third parties via marketplaces and other platforms — it offers billing and invoicing, in-person payment services (via Terminal), business analytics, fraud prevention on transactions (Radar), company incorporation (Atlas), and a range of content around business strategy.

Some of these Stripe products are free to use, and some come at a price: the main point for offering them together is to build more engagement and loyalty from customers to keep them from migrating to other services. In that regard, credit cards are a cornerstone of how businesses operate, to handle day-to-day expenses in a more accountable way, and this is an area that is already well-served by others, including startups like Brex but also a plethora of challenger and traditional banks. So as much as anything else, this is a clear move to help stave off competition.

At the same time, it underscores how Stripe is leveraging the huge amount of data that it has amassed about its users and payments on the platform: it’s not just about enabling single services, but about using the byproducts of those services — data — to put fuel into new products.

Today, to underscore its global ambitions in that regard, Stripe is adding some expansions to several of its existing products. For example, it will now allow businesses to make payouts in local currencies in 45 countries (an important detail, for example, for marketplaces and network-based companies like ridesharing businesses).

The credit card product will follow a model similar to that of Stripe Capital. As with the lending product, there is a single bank issuing the credit and the card. Amber Feng, head of financial infrastructure for Stripe, confirmed to me that it is actually the same bank that’s providing the cash behind Stripe Capital. Stripe is still declining to name the bank itself, but hints that we may hear more about it soon, which leads me to wonder what news might be coming next.

(Funding perhaps would make sense? The company has raised a whopping $785 million to date and has a valuation of $22.5 billion at the moment. Given that Stripe has made indications that a public listing is not on the cards soon, that might imply, with the launch of these new financing products, that more capital might be raised soon.)

Also similar to Stripe Capital, the underwriting of the card is based on Stripe data. That is to say, business users are verified and approved based on turnover (revenues) as measured by the Stripe payments platform itself; and in cases where applicants are “pre-revenue”, they can be evaluated based on other data sources. For example, if they have used Stripe Atlas to incorporate their businesses, the paperwork supplied for that is used by Stripe to vet the customer’s suitability for a credit card.  

Notably, the cards will be delivered in the spirit of instant gratification: if you are applying and get approved, you can download a virtual card within minutes to your Apple Wallet as you await the physical card to arrive in the post.

Stripe is big on data in its own business, and it’s bringing some of that into this product with spending controls that can be set by person and by category; real-time expense reporting by way of texts; rewards of 2% back on spending in the business’s most-used categories; and integration with financial software like Quickbooks and Expensify.

Posted Under: Tech News
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