Clubhouse lays off more than 50% staff / Job openings in U.S. startups decline 52% / Prenuvo opens first MRI location in NYC

Plus, Proprio receives FDA clearance for surgical imaging tool

Inside.com Part of   Network April 28, 2023

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Clubhouse announced the layoff of more than 50% of its employees. As of Oct. 2022, the audio platform had 100 employees. More: "It's difficult for us to communicate the strategy to cross-functional teams when it's evolving by 1% each day, or to make quick changes when each surface is owned by a different product squad," said Paul Davison, CEO and co-founder of Clubhouse.  The company previously laid off an undisclosed number of employees in June 2022, as it sought to restructure amid a decreasing user base. Clubhouse says it has "years of runway" and is not implementing a hiring freeze. The startup reached unicorn status in Jan. 2021, reaching a post-money valuation of $4B after a $200M Series C in May 2021.

What the numbers say: In Mar. 2023, venture-backed U.S.-based startups posted 9,218 jobs, 52% lower than the peak value of 19,292 from Apr. 2022, per NGP Capital's State of Startup jobs in the U.S. 2023 report. The decline in the number of jobs posted correlates with the funding slump trend. Despite the slump, the number of jobs posted by seed-stage startups remained relatively constant since last year.  Relevance: Over 50% of the vacancies were posted by New York City and Bay Area startups, followed by 10% of jobs from Los Angeles and 9% from Boston. Job postings in Austin, New York, and the Bay Area declined by 58%, 55%, and 49% YoY, respectively. Miami was the sole exception that had a 27% YoY increase in the number of job postings.  Where to see the impact: Vacancies in VC-backed early and late-stage startups declined 53% YoY. On the other hand, hiring remained at 86% level from last March for seed-stage startups. Upal Basu, partner at NGP Capital, said, "While the economic slowdown had a significant impact on the startup jobs market, there are signs of recovery. New developments in AI will likely kick-start venture funding, leading to increased demand for new talent. We are optimistic for the remainder of 2023."

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Prenuvo announced the opening of its first whole-body MRI location in New York City. The company is seeking to use its previously raised $70M Series A to expand six to more than 12 locations by the end of 2023. More: Prenuvo's tech scans for more than 500 conditions, with the ability to detect most solid tumors at stage 1. The MRI can also detect aneurysms and cysts within an hour. The company was founded by Dr. Raj Attariwala and Andrew Lacy, founder of the Disney-acquired video game development company Tapulous. Prenuvo's locations include Boca Raton, Dallas, Redwood City, Los Angeles, and Vancouver, in addition to a partner location in Minneapolis.

The Paradigm surgical imaging tool for the spine developed by medical startup Proprio was the first of its kind to earn the Food and Drug Administration's 510(k) clearance. With the tool, surgeons will be able to see the spine in real time during operations.   More: Proprio's Paradigm product leverages light field computer vision, AI, and preoperative images to create a real-time 3D image of the spine.  The product will eliminate the need for mid-operation X-rays and high-radiation intraoperative scans during the procedure. Proprio claims that their product helps in reducing radiation exposure by tenfold.  The FDA clearance will allow the firm to bring its product to market.  The Seattle, Wash.-based has raised $42M in total venture funding to date, including a $23M Series A round led by DCVC in June 2020.

Levitate, a Raleigh-based SaaS support company, announced a $14M led by Bull City Venture Partners. The startup also launched an AI assistant that helps customers write and edit emails and social media posts.  More: Levitate was founded by Jesse Lipson, who founded ShareFile, which was sold to cloud company Citrix in 2011. The company claims more than 3,500 small business customers and 150 employees. The round included participation from Duke Capital Partners, Tippet Partners, Protagonist, and The Tweener Fund, among others. The company's other products include an HTML email builder, a template library, and customer satisfaction surveys.

New York-based startup Chief laid off 43 employees or 14% of its workforce. The startup cited the "challenging macroeconomic environment" as the reason behind the move. The layoffs will largely affect the U.S.-based offices, as its presence in the U.K. is smaller.  More: Chief is a private membership network that connects 20,000 women executive leaders.  The restructuring move will help the firm to focus on four priorities: in-person meetings, personalization, simplified digital experience, and embedded diversity, equity, and inclusion experiences.  Employees laid off received 12 weeks of severance and an extension to their healthcare insurance.  The firm had cemented its unicorn status with a $1.1B valuation at its last $100M Series B round in 2022.  Crunchbase data shows that the firm has raised $140M in total funding to date from investors such as CapitalG, General Catalyst, and Flybridge.

Quick Hits: This app makes it easy (and fun) to level up fast in math, data, and CS. Try it free for 30 days + get 20% off an annual premium subscription.* Oddity, a beauty and wellness technology developer, acquired AI-powered beauty and wellness application developer Revela for $76M.  Mark Cuban-backed interactive entertainment startup Fireside secured $25M in Series A funding at a $138M post-money valuation.  Corporate credit card startup Teampay reduced its workforce strength by 30%.  British hearing diagnostics tests maker TympaHealth raised $23M in Series A funding led by Octopus Ventures to establish its presence in the U.S. market.  Startup advisory firm Enjoy the Work hired Kristen Hamilton, the founder of predictive hiring startup Koru, as a general partner. Unleash Google Cloud's full potential! Learn with step-by-step recipes in the GCP Cookbook. Download your copy now. Download your copy now.* *This is sponsored content.

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Karan Chafekar is a Management Consultant, Business enthusiast, and Licensed Pilot.  Nicolas is a Sr. Analyst at Inside, covering startups and transportation trends. He is an avid map maker and data nerd. Nicolas has worked in the shared-scooter space, as well as advised e-bike and moped start-ups.  Editor Vibha Chapparike is a Freelance Writer & Editor at Inside.com. With her post-graduation in Management and Finance completed, Vibha is expanding her knowledge in venture capital, business, startups, and technology. She has had a career in public relations and communications. An ardent reader and writer currently residing in Singapore, you can follow Vibha on Twitter @VChapparike.

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U.S. citizen sentenced for stealing $21M worth of crypto / Researchers track Minecraft clones with 35M downloads / Hackers breach AT&T, steal $20M

Plus: Google banned 173,000 developers in 2022 for breaking Play Store rules

Inside.com Part of   Network April 28, 2023

Presented by

A U.S. citizen residing in Ohio has been sentenced to four years in jail for stealing and laundering $21M worth of Bitcoin. Gary James Harmon had collaborated with his sibling to commit the crime. More: Harmon conducted a phishing campaign to obtain the login credentials of people who owned Bitcoin and other cryptocurrencies. The phishing campaign targeted a number of major companies as well as individual users of cryptocurrency exchanges. Harmon also sold stolen data on the dark web and used the proceeds to allegedly fund a lavish lifestyle. His sibling, Larry Dean Harmon, was arrested in February 2020 for operating a dark web cryptocurrency mixer known as Helix. The mixer was used by the two brothers to launder the stolen funds. The two brothers laundered around 350,000 stolen Bitcoin, currently worth around $10.3B.

Researchers have tracked a group of Minecraft clones available on the Google Play Store that have been downloaded more than 35 million times. Some apps have over 10 million downloads. Researchers from McAfee have stated that these apps were uploaded to Google Play under various titles and package names. The clones, which imitate the gameplay and graphics of Minecraft, contain malicious code that displays intrusive ads and can steal users' personal data. The findings were reported to Google earlier this year. Google has since removed the offending apps from the Play Store, but it's unclear how long they were available for download. Zoom Out: Due to their popularity, games are a consistent target for hackers who try to steal troves of valuable data from companies. In 2016, Pokémon Go was targeted by hackers who created a malicious version of the game that was distributed to third-party app stores. The fake app contained malware that could steal users' personal data and install additional malicious software on their devices. In 2018, researchers found a serious vulnerability in Fortnite that allowed hackers to take control of players' accounts and make fraudulent purchases using their stored payment information. In 2021, a group of hackers targeted EA Sports, the developer of the popular soccer game FIFA, and stole the source code for the game's engine and related tools. The hackers claimed to have stolen more than 780 GB of data.

A message from UPWAY Upway, the #1 certified e-bike provider, delivers electric mobility at an affordable price.  Upway believes there is an e-bike for everyone. Wherever you need to go, Upway can offer you a sustainable and stylish way to get there. They source from the top bike brands worldwide, giving customers access to top-tier American brands such as Specialized, Cannondale, and Rad Power, and European brands such as Riese & Müller or VanMoof. Whether the bike is brand new or pre-owned, it will always be up to 60% off retail. Upway ships anywhere in the continental US and you can expect your bike fully assembled and delivered to your doorstep in 2-5 business days. At Upway, every e-bike is certified and given a one-year warranty by our team of master mechanics. Explore their huge selection of bikes on their website. Use code INSIDE for $200 off your next purchase of 500+. Find your perfect e-bike

Hackers have reportedly breached AT&T's digital infrastructure, stealing $20M worth of cryptocurrency. The responsible threat actor has yet to be tracked. More: The attackers were reportedly able to gain access to AT&T's systems by exploiting a vulnerability in the company's customer service portal. The hackers targeted high-net-worth cryptocurrency investors, using SIM-swapping attacks to take over their accounts and transfer their funds to their own wallets. AT&T has categorically denied that it has been hacked, but reports claim that the company is aware of the incident. Zoom Out: SIM-swapping attacks have become increasingly common in recent years, with hackers using social engineering tactics to trick telecom companies into transferring control of a victim's phone number to a SIM card under their control. In 2019, a 20-year-old college student was arrested for using SIM-swapping attacks to steal over $5M in cryptocurrency from 40 victims. In 2021, a California man was arrested for allegedly stealing over $100,000 in cryptocurrency using SIM-swapping attacks. He targeted high-profile individuals.

Google banned 173,000 developers in 2022 for breaking its Play Store rules. The company claims that it prevented over $2B in fraud damages by doing so. More: The company claims that the developers were banned for policy violations, such as creating malicious software and promoting scams. Google says it used a combination of automated and human review processes to detect these policy violations. In addition to the bad accounts, the company also removed over 3.1 billion bad ads in 2020. Google encouraged users to report any suspicious activity on its platform to help maintain the platform's security. Zoom Out: Google's platforms have consistently been targeted by hackers. In 2009, a group of hackers believed to be associated with the Chinese government targeted Google and several other companies in a series of cyberattacks. The attack, named Operation Aurora, compromised Google's systems and stole intellectual property and sensitive data. In 2016, researchers discovered four vulnerabilities in Android devices that could be exploited by attackers to gain root access to a device. In 2017, a widespread phishing attack targeted Google Docs users, allowing hackers to access users' Gmail accounts and other Google services. The attack affected thousands of users before it was shut down by Google. In 2018, Google announced that a security vulnerability in its Google+ social network had exposed the personal data of up to 500,000 users.

A new malware called Atomic Stealer has been found targeting MacOS users. The malware, sold on Telegram, can steal passwords and credit card data. More: Atomic Stealer is distributed through phishing emails that contain a malicious attachment hidden in a .zip file. Once the attachment is opened, the malware is installed on the victim's computer. The malware is capable of stealing data from a wide range of applications, such as: web browsers, email clients, messaging apps, and cryptocurrency wallets. Atomic Stealer evades detection by encrypting its communication with command-and-control servers and using anti-analysis techniques. Users have been recommended to update their software and avoid clicking on suspicious links. Zoom Out: Apple has been breached several times in the past by numerous threat actors. In 2017, a group of hackers calling tracked as the Turkish Crime Family claimed to have access to 250 million iCloud accounts and threatened to wipe them if Apple did not pay a ransom. In 2018, a teenager in Australia hacked Apple's computer systems and accessed sensitive customer data, including login credentials and authorized keys. In 2021, REvil attacked a supplier of Apple's laptops, Quanta Computer, and stole blueprints for several new MacBook designs.

Researchers have found a high-risk security flaw that enables hackers to breach thousands of Apache Superset servers. The flaw could lead to remote code execution. More: The vulnerability, tracked as CVE-2023-27524, allows an attacker to execute arbitrary code on a vulnerable server by sending a specially crafted HTTP request. Hackers took advantage of the fact that Apache Superset used a default Flask Secret Key to sign authentication session cookies by falsely creating session cookies and convincing the system to provide them with admin access. The vulnerability affects Apache Superset versions 0.38.0 and lower and has been rated as critical by the National Vulnerability Database. The flaw was discovered by researchers on Oct. 11, 2021, and reported to the Apache Security team immediately.

Quick Hits: This app makes it easy (and fun) to level up fast in math, data, and CS. Try it free for 30 days + get 20% off an annual premium subscription.* Bits Technologies, a Sweden-based company that helps companies avoid fraud by providing multiple data sources, has raised $4.3M in a Seed round led by Unusual Ventures with participation from Fin Capital, Cherry Ventures, and Alliance Ventures. Accenture and Google have announced a partnership that will see the two companies collaborate on improving their cybersecurity capabilities. Hackers are reportedly targeting the Facebook account of Israeli PM Benjamin Netanyahu. Unleash Google Cloud's full potential! Learn with step-by-step recipes in the GCP Cookbook. Download your copy now.* *This is sponsored content.

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Arbër is an Inside writer who also has experience in entrepreneurship. He has experience covering Consumer Tech, Venture Capital, NFTs, Crypto, etc. Arbër holds a Bachelor's degree in Business from XAMK University in Finland. When he is not reading(and writing) business news, he chooses to watch sports or anime...and then read news about sports or anime. Editor Aaron Crutchfield is based in the high desert of California. Over the last two decades, he has spent time writing and editing at various local newspapers and defense contractors in California. When he's not working, he can often be found looking at the latest memes with his kids or working on his 1962 and 1972 Fords.

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