"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."
In a major upset, the Democratic candidate prevailed in the deeply conservative state.
In a major upset, Democrat Doug Jones won the Alabama Senate special election on Tuesday to fill the seat previously held by Attorney General Jeff Sessions. The last time Alabama sent a Democrat to the Senate was in 1992.
The Associated Press called the race for Jones just before 10:30 p.m. eastern.
Alabama is a deeply conservative state. But the race unexpectedly became competitive after Republican Roy Moore became embroiled in allegations of past sexual misconduct involving teenage girls. The result is a stunning victory for the Democratic Party, which found itself locked out of power in Washington after the 2016 presidential election.
Flipping a Senate seat narrows the already razor-thin Republican majority in the chamber, and will make it harder for Republicans to pass any significant legislation. It might even jeopardize the Republican tax overhaul effort currently underway in Congress. Democrats face an uphill battle to win back the Senate in 2018, but winning a seat in the Alabama race will make their fight that much easier. Jones will hold the seat until 2020.
There’s a fiction at the heart of the debate over entitlements: The carefully cultivated impression that beneficiaries are simply receiving back their “own” money.
One day in 1984, Kurt Vonnegut called.
I was ditching my law school classes to work on the presidential campaign of Walter Mondale, the Democratic candidate against Ronald Reagan, when one of those formerly-ubiquitous pink telephone messages was delivered to me saying that Vonnegut had called, asking to speak to one of Mondale’s speechwriters.
All sorts of people called to talk to the speechwriters with all sorts of whacky suggestions; this certainly had to be the most interesting. I stared at the 212 phone number on the pink slip, picked up a phone, and dialed.
A voice, so gravelly and deep that it seemed to lie at the outer edge of the human auditory range, rasped, “Hello.” I introduced myself. There was a short pause, as if Vonnegut were fixing his gaze on me from the other end of the line, then he spoke.
Russia's strongman president has many Americans convinced of his manipulative genius. He's really just a gambler who won big.
I. The Hack
The large, sunny room at Volgograd State University smelled like its contents: 45 college students, all but one of them male, hunched over keyboards, whispering and quietly clacking away among empty cans of Juicy energy drink. “It looks like they’re just picking at their screens, but the battle is intense,” Victor Minin said as we sat watching them.
Clustered in seven teams from universities across Russia, they were almost halfway into an eight-hour hacking competition, trying to solve forensic problems that ranged from identifying a computer virus’s origins to finding secret messages embedded in images. Minin was there to oversee the competition, called Capture the Flag, which had been put on by his organization, the Association of Chief Information Security Officers, or ARSIB in Russian. ARSIB runs Capture the Flag competitions at schools all over Russia, as well as massive, multiday hackathons in which one team defends its server as another team attacks it. In April, hundreds of young hackers participated in one of them.
The president attacked a senator who has emerged as a crusader against all manner of sexual misbehavior by political leaders.
Just after 8:00 on Tuesday morning, President Trump whipped out his phone and fired off this incendiary, insinuating tweet:
Lightweight Senator Kirsten Gillibrand, a total flunky for Chuck Schumer and someone who would come to my office ‘begging’ for campaign donations not so long ago (and would do anything for them), is now in the ring fighting against Trump. Very disloyal to Bill & Crooked-USED!
It’s hardly surprising that Trump is miffed at Gillibrand. On Monday, the gentlewoman from New York publicly called on the president to step down in light of the multiple accusations of harassment and assault swirling around him. Having long pressed for the military to address its sexual-assault problem, Gillibrand has emerged more recently as a crusader against all manner of sexual misbehavior by political leaders: She was the first Senate Democrat to call on her Minnesota colleague Al Franken to step down, and she contends that elected officials absolutely should be held to higher standards than regular folks.
A good marriage is no guarantee against infidelity.
“Most descriptions of troubled marriages don’t seem to fit my situation,” Priya insists. “Colin and I have a wonderful relationship. Great kids, no financial stresses, careers we love, great friends. He is a phenom at work, fucking handsome, attentive lover, fit, and generous to everyone, including my parents. My life is good.” Yet Priya is having an affair. “Not someone I would ever date—ever, ever, ever. He drives a truck and has tattoos. It’s so clichéd, it pains me to say it out loud. It could ruin everything I’ve built.”
Priya is right. Few events in the life of a couple, except illness and death, carry such devastating force. For years, I have worked as a therapist with hundreds of couples who have been shattered by infidelity. And my conversations about affairs have not been confined within the cloistered walls of my therapy practice; they’ve happened on airplanes, at dinner parties, at conferences, at the nail salon, with colleagues, with the cable guy, and of course, on social media. From Pittsburgh to Buenos Aires, Delhi to Paris, I have been conducting an open-ended survey about infidelity.
Winning images and honorable mentions from the four categories: Wildlife, Landscapes, Aerials, and Underwater.
National Geographic has announced the winners of its annual photo competition, with the Grand Prize Winner Jayaprakash Joghee Bojan receiving a prize of $7,500 for his image of an orangutan in Borneo. National Geographic was once again kind enough to let us display the winning images and honorable mentions here from the four categories: Wildlife, Landscapes, Aerials, and Underwater.
Russian billionaire Yuri Milner says if the space rock 'Oumuamua is giving off radio signals, his team will be able to detect them—and they may get the results within days.
The email about “a most peculiar object” in the solar system arrived in Yuri Milner’s inbox last week.
Milner, the Russian billionaire behind Breakthrough Listen, a $100 million search for intelligent extraterrestrial life, had already heard about the peculiar object. ‘Oumuamua barreled into view in October, the first interstellar object seen in our solar system.
Astronomers around the world chased after the mysterious space rock with their telescopes, collecting as much data as they could as it sped away. Their observations revealed a truly unusual object with puzzling properties. Scientists have long predicted an interstellar visitor would someday coast into our corner of the universe, but not something like this.
Top picks from a year of personal stories, protest songs, and escapism
In a year when world events seemed to push pop culture aside—or else become pop culture itself—the albums that hit most deeply for me were about individuals, not issues. Many of the picks below are autobiographies of sorts, and even the more “political” records blend their songs of social crackups with ones of personal breakups. The other albums here offer much-needed escape, whether with guitar solos, rave immersion, or, in one case, a new word game: “raindrop / drop top.”
1. Kendrick Lamar, Damn
The title of Damn refers in part to a divine curse, which in turn ties in with the Black Hebrew Israelite theology the Compton rapper flirts with throughout his latest masterpiece. But Lamar raps about damnation as not only a spiritual state, but also an inheritance of history, of society, and of one’s own past. The dizzying “DNA”establishes the controlling metaphor: Each person is a double helix of information and attributes, containing War and Peace and war and peace. The album then makes clear he’s not interested in drawing cute contradictions, but in drawing out truth—or rather, truths next to truths next to truths.
H.R. McMaster previewed the administration’s new plan on Tuesday, which offers a striking contrast to the visions of other recent presidents.
The Trump administration unveils a National Security Strategy next week, but National-Security Adviser H.R. McMaster provided an advance glimpse of the plan on Tuesday.
A helpful way to understand where this still-new administration is leading is to compare McMaster’s bullet-pointed speech to the final Strategy documents released by two previous administrations, in 2015 and 2006, and note what is changing. McMaster spoke at a Washington conference hosted by Policy Exchange, a U.K. think tank that I chaired from 2014 until earlier this year. Granted, his short speech inevitably abridged the long-form document. Yet even allowing for that, the differences can be seen.
The Obama administration’s 2015 document addressed in some detail epidemics and climate change. The Bush administration committed the United States to supporting human dignity, opening societies, and supporting the building of democracy. The main lines of the Trump approach jettison these concerns. If McMaster fairly summarized the new approach, the United States will soon formally commit itself to a lonelier and less generous course.
Students don't seem to be getting much out of higher education.
I have been in school for more than 40 years. First preschool, kindergarten, elementary school, junior high, and high school. Then a bachelor’s degree at UC Berkeley, followed by a doctoral program at Princeton. The next step was what you could call my first “real” job—as an economics professor at George Mason University.
Thanks to tenure, I have a dream job for life. Personally, I have no reason to lash out at our system of higher education. Yet a lifetime of experience, plus a quarter century of reading and reflection, has convinced me that it is a big waste of time and money. When politicians vow to send more Americans to college, I can’t help gasping, “Why? You want us to waste even more?”