"Groupon was a huge huge success and potentially a huge huge failure. That neither made Chicago nor does it need to break Chicago."
If you're not from Chicago and you think, "Chicago startups," the company that probably comes to mind is Groupon. Groupon had a heralded IPO and, in recent months, an equally heralded decline. So, perhaps the question I was most interested in answering during our time in the city was, "How has Groupon's meteoric rise and fall changed the startup scene?"
For the answer to that question, I went to Terry Howerton, who has been around the Chicago startup scene since the mid-2000s. He founded the Illinois Technology Association seven years ago, and later, the community hub, TechNexus in 2007. He's met thousands of people in the city's tech scene and has watched more than a few trends rise and fall. In other words, if anyone can say how the Chicago startup scene has been changed by Groupon's story, it's him.
"Groupon was a flare that went up and lit up the ground below, and people looked around and said, 'Huh, there's a lot here.'" Howerton said. "The danger is once that flare starts to extinguish as maybe happened with Groupon -- as probably happened with Groupon -- are there any lights remaining?"
Traditionally, the thought has been that once a city has a company with a big IPO -- think PayPal or Microsoft or Google -- that pumps a lot of money into the place's startup ecosystem. You've got a bunch of youngish people walking around with huge bank accounts and substantial risk tolerance. While he acknowledged the venture capital firm, Lightbank, which was formed by Groupon co-founders Eric Lefkofsky and Brad Keywell, Howerton said that Groupon has not been a boon to Chicago's startup scene, at least not yet.
"I don't think there has been a lot of capital that has flooded into Chicago through the Groupon exit," Howerton said. "You think about the success of a company like Microsoft and the early days of Microsoft in Seattle. It was not that 10 guys got wealthy but hundreds and hundreds of people became millionaires. We haven't yet seen that from Groupon. In some ways, it's not a tech company. You just don't have hundreds of engineers who made a million dollars."
Even so, Howerton seems content with that reality. After all, he thinks Chicago shouldn't lionize business-to-consumer startups just because the media (like your loyal correspondent) like them more. In fact, Howerton is excited about a whole different class of companies and types of work.
"A lot of the technology that exists here today isn't B2C, it's B2B, it's industry transformative and it's incredibly important," he said. "It's companies like ArrowStream that do $100 million a year doing supply chain management for paper products for fast food restaurants. If they were doing $100 million a year in any B2C, they'd be written about as if they were the second coming."
It's actually amazing. If you look at ArrowStream's customer list -- IHOP, Wendy's, Cinnabon, Panda Express, KFC, Friendly's, etc. -- they're probably helping a restaurant on every street in America. But he's right: Who has ever heard of ArrowStream?
In fact, Howerton thinks that companies like that could be Chicago's tech scene bread and butter. There are already so many established large corporations in Chicago in logistics, finance, and healthcare that he sees the city as a place that could provide unique collaborations between startups and big business.
Howerton said that there are several macro trends driving corporations to work with new companies. For one, big businesses have unprecedented amounts of cash on their balance sheets. It's not just Apple that's sitting on money. Recent reports peg the amount of dollars on corporate balance sheets at nearly $2 trillion! Those companies, like State Farm Insurance or Walgreens, want to innovate and stay ahead of potential disruptive competitors, but they just don't know how.
"State Farm has 12,000 employees in IT in Bloomington," Howerton said. "I'm sure many of those employees are really smart people, but how innovative can you be with 12,000 IT workers in your bureaucratic corporate environment in an industry as historic as insurance?"
Or take Walgreens. They recently released an API for their "QuickPrint" feature, which allows you to send photos to Walgreen's and pick them up in a store. "They invited us to organize hackathons for them to bring dozens of technology teams to brainstorm business and app ideas that integrate QuickPrints," he said. The teams get access to the people who built the API and the winners of the competitions make some money. Meanwhile, Walgreens gets technologists building apps using their platform in a way that they probably wouldn't themselves.
With the right corporate friends and deep knowledge of the technology scene in Chicago, TechNexus isn't trying to be like it's flashy neighbor, 1871 Chicago. They're not trying to draw the latest web startup. What they want to do is create an environment where all kinds of technology startups -- especially those with hardcore engineering and computer science at their cores -- can find serious investors and partners.
All this to say: Howerton's idea of a real technology scene in Chicago doesn't end with a certain daily-deals company that happened to go public last year.
"Groupon was a huge huge success and potentially a huge huge failure," Howeton said. "That neither made Chicago nor does it need to break Chicago."
The technology has been used to create sped-up videos that falsely depict a response to stimulus.
One of the first measures that Republicans in the 115th Congress proposed was the “Heartbeat Protection Act.” On January 11, a group led by Steve King of Iowa introduced a bill that would require doctors nationwide to “check for a fetal heartbeat” before performing an abortion, and prohibit them from completing the procedure if they found one. In December, Republicans in the Ohio state legislature put forth a similar measure. Governor John Kasich vetoed it, observing that such a law would almost certainly be struck down as unconstitutional, but approved a 20-week abortion ban.
Opponents of the heartbeat bills have pointed out that they would eliminate abortion rights almost entirely—making the procedure illegal around four weeks after fertilization, before many women realize that they are pregnant. These measures raise even more elementary questions: What is a fetal heartbeat? And why does it matter?
As the party struggles to agree on a replacement, a group of GOP senators unveil a bill that would give states the option to keep it.
The vast majority of Republicans in Congress haven’t budged from their longstanding vow to completely repeal the Affordable Care Act. But as the party struggles to write a replacement, a few GOP lawmakers are declaring their support for keeping the law on the books in some form indefinitely.
A group of senators on Monday unveiled legislation that would give states the option of preserving Obamacare, securing federal support for a more conservative health-insurance system, or opting out of any assistance from Washington. Offered as a middle ground in the partisan health-care fight, the proposal breaks with years of Republican orthodoxy on the 2010 law, which party leaders have pledged to rip out “root and branch.”
For people sick of high deductibles, Republicans offer high-deductible plans as replacements for Obamacare.
Obamacare’s days are numbered. That was the message of the executive order President Donald Trump signed Friday, instructing government agencies to “minimize the unwarranted economic and regulatory burdens of the [Affordable Care Act].”
When I spoke with a handful of Trump supporters after the inauguration Friday, they said they eagerly awaited Obamacare’s end. Tanya, a woman from Virginia who was rolling a walker down I Street to the inaugural parade, said she was struggling with her $6,750 deductible. “As a business person who is self-employed, it’s killing me,” she said.
Nearby, Marlita Gogan, from Houston, said she just wants Trump to “do what he says”—repeal and replace Obamacare. Her daughter’s insurance premium has risen from $250 to $375, with a $5,000 deductible. “It’s too much,” she said. “You can’t even use it.”
The president repeated his belief that the U.S. should have taken Iraq’s oil, ominously adding that the CIA may “have another chance.”
Every American, regardless of who they voted for in the election, should be furious with President Donald Trump for what he told the CIA during a recent meeting at its headquarters. I do not mean his digressions about the size of the crowd at his inauguration and the number of times he has appeared on the cover of Time magazine, although it does not inspire confidence to see the president waste fleeting time with national-security employees on his vanity rather than our security.
It’s his comments on Iraq that ought to make Americans apoplectic, for in the space of seconds, Trump managed to utter words that are 1) morally repugnant, 2) certain to be exploited as a recruiting tool by America’s terrorist enemies, and 3) likely to help foreign adversaries diminish America’s reputation and power. For the sake of an indisciplined, self-indulgent riff, Trump made Americans less safe.
The president declared his own inauguration a national holiday. But the language he used says something more.
You could be forgiven for forgetting the National Day of Patriotic Devotion—technically, it happened before it was ever declared. Donald Trump established it with a stroke of a pen sometime after his inauguration; the official proclamation appeared Monday in the Federal Register.
That bit isn’t all that unusual. Presidents christen National Days Of Things all the time. President Barack Obama, for example, proclaimed the day of his own inauguration in 2009 a “National Day of Renewal and Reconciliation,” calling “upon all of our citizens to serve one another and the common purpose of remaking this Nation for our new century.” He annually declared September 11 to be “Patriot Day.” But “Patriotic Devotion” strikes a different note—flowery, vaguely compulsory.
Overshadowed by headlines about chaos and infighting, the new administration is notching a string of early victories.
From some angles, the Trump presidency is off to a rocky start. There were the somewhat disappointing crowds at the inauguration, and then the needless lies about them, presented as “alternative facts.” There’s the controversy over Trump’s remarks to the CIA, and precisely who in the crowd cheered his visit. On Monday, the president repeated a dumb and unnecessary lie about illegal ballots having cost him the popular vote during a meeting with members of Congress. The Washington Post reports in detail on White House infighting and an attempted reboot—just four days into the administration. ABC’s The Notefrowns, “He can’t help himself, and he isn’t helping himself.”
But what if the Trump presidency is actually off to a surprisingly effective start? For months, Trump has shown a perverse ability to overshadow his own message with chaos and disorder, and the first five days of his administration fit right into that pattern.
The HBO documentary delves into the disturbing 2014 case of two Wisconsin girls who say they stabbed their friend to appease a bogeyman-like figure.
One late spring day in 2014, three girls entered the woods in Waukesha, Wisconsin. Two walked out unharmed. A 911 call made not long after revealed the hazy outline of a vicious attack—one of the girls had been found by the side of the road covered in blood, having crawled there to get help. In the days and weeks that followed, details emerged that were no less disturbing: The three girls, all 12 years old, were best friends. The victim had been stabbed 19 times with a 5-inch blade and had barely survived. After being taken into police custody, the other two girls told interrogators what had happened: They had lured their friend into the woods to kill her so that they could appease someone called Slenderman.
“What do we want? Data! When do we want it? Forever!”
WASHINGTON, D.C.—Jane Zelikova is not a “protest person.”
“I’m so anti-protest, and so anti-demonstration,” she told me. “Growing up in the U.S.S.R., I always have that sense that protest is theater.”
Even after she moved to the United States, she retained her suspicion of demonstrations large and small. They seemed to rarely achieve their goals, and they reminded her of the government-planned pageantry of her youth. As a graduate student at the University of Colorado Boulder, she attended a protest during the run-up to the Iraq War—only to leave before it ended out of personal unease.
Since then, her research into community ecology has taken her to the tropical rainforests of Costa Rica and the high-elevation deserts of Utah. It let her spend months studying leafcutter ants, a colony-dwelling creature that grows fungus for its food; and it introduced her to Pseudobombax septenatum, a tree sheathed in photosynthetic bark that can store water in its trunk for months at a time.
A No. 1 bestseller by a respected physician argues that gluten and carbohydrates are at the root of Alzheimer's disease, anxiety, depression, and ADHD. What to make of the controversial theory?
“If you could make just three simple changes in your life to prevent, or even reverse, memory loss and other brain disorders, wouldn’t you?”
So asks Dr. David Perlmutter, in promotion of his PBS special Brain Change, coming soon to your regional affiliate. Three changes. Simple ones. Wouldn’t you?
The 90-minute special is a companion to Perlmutter’s blockbuster book on how gluten and carbs are destroying our brains. In November it became a New York Times number one bestseller. Since its September release, as Perlmutter told me, “It’s never not been on the bestseller list, frankly.”
“Is it still number one?” I asked. A pause over the phone as he checked. In modern interview style, we were both also on our computers.
With a pen stroke, President Trump withdrew the U.S. from the Trans-Pacific Partnership, imposed a federal hiring freeze, and reinstated the “Mexico City policy” on defunding international abortion-related services.
President Trump marked his first full business day in office with three major executive orders, each one aimed at fulfilling campaign promises he made last year.
His most significant order immediately withdrew the U.S. from the Trans-Pacific Partnership, a multilateral free-trade agreement between the U.S. and eleven other Pacific Rim countries. The pact, aimed at counterbalancing China’s growing economic clout in east Asia, was among the Obama administration’s signature foreign policy achievements and a cornerstone of the pivot to Asia.
But the agreement also drew its share of domestic criticism on both sides of the campaign aisle. Both Democratic nominee Hillary Clinton, who initially supported it, and her primary rival Bernie Sanders criticized the pact for not doing enough to support American workers. Trump was among its most vociferous critics, at one point calling it “a continuing rape of our country.”