TIME Tech

Reports Say Snapchat Is Valued at Roughly $10 Billion

FRANCE-US-IT-INTERNET-SECURITY-SNAPCHAT
Lionel Bonaventure—AFP/Getty Images

If reports are true, this represents an enormous valuation for a company that has effectively no revenue source

Multiple news outlets are reporting that Snapchat is raising funds from investors based on a $10 billion valuation for the disappearing-messaging service.

The Wall Street Journal, citing unnamed sources, reports that the venture-capital firm Kleiner Perkins Caufield & Byers agreed to invest in the app maker at a valuation of nearly $10 billion. Bloomberg News, also citing unnamed sources, reports that the startup is in talks for a round of financing at a $10 billion value. TechCrunch is reporting a similar figure.

The valuation could not be confirmed by TIME and does not suggest that any single buyer intends to pay that amount. The company uses the valuation to determine the share of ownership it gives investors.

But if true, $10 billion would represent an enormous valuation for a company that has effectively no revenue source. The Snapchat app, which does not have ads, is the third most popular app among millennials after Facebook and Instagram, according to Bloomberg, and marketers see potential in using the app to reach out to millions of the coveted young-people demographic.

The Los Angeles–based tech firm was valued at $2 billion just one year ago, according to the Journal, and its owners reportedly turned down a $3 billion offer from Facebook last November.

“The valuation of our business and our capital requirements are the least exciting aspects of supporting the Snapchat community. We have no further comment at this time,” an unnamed spokesperson for Snapchat told the Journal. A spokesperson for Kleiner declined to comment to the Journal.

TIME Workplace & Careers

Yes, There Is Diversity in Silicon Valley — if You Know Where to Look

Google Celebrates 15th Anniversary As Company Reaches $290 Billion Market Value
Pedestrians walk past Google Inc. signage displayed in front of the company's headquarters in Mountain View, California, U.S., on Friday, Sept. 27, 2013. David Paul Morris—Bloomberg / Getty Images

Study finds many black and Latino workers toil in the tech scene's "invisible" workforce of cooks, cleaners and guards

A new report on the diversity of Silicon Valley’s workforce has found a preponderance of black and Latino workers relegated to the bottom rungs of the pay ladder.

Working Partnerships USA released a report on Tuesday that drew attention to an “invisible” legion of contracted workers who cook, clean and guard corporate campuses throughout the Valley.

While black and Latino workers comprise less than 5% of the workforce at prominent companies such as Twitter, Facebook, eBay and Google, their representation balloons to 41% among security guards and 75% among groundskeepers, according to employment data released by the companies and Santa Clara county.

Members of this contracted workforce make an average hourly wage of $11 to $14 an hour, or less than a fifth of the average software developer, the study found.

“These ‘invisible’ workers do not share in the success of the industry which they daily labor to keep running,” the study’s authors wrote. “As contracted workers, their employer of record is not Google or Apple, but a middleman, making them ineligible for most of the benefits and amenities offered on the campuses where they work.”

A growing number of tech companies have voluntarily released employment statistics as part of an effort to address gaps in diversity. “As CEO, I’m not satisfied with the numbers on this page,” Apple CEO Tim Cook wrote in a statement accompanying Apple’s release. ‘We’ve been working hard for quite some time to improve them.”

TIME Innovation

Five Best Ideas of the Day: August 5

1. The grinding stress of life in poverty – not the scarcity of healthy options – leads the poor to unhealthy eating.

By James McWilliams in Pacific Standard

2. Cutting out the middlemen: Loan servicers aggravate the college debt crisis.

By Chris Hicks in the Reuters Great Debate

3. We must treat addiction as a learning disorder.

By Maia Szalavitz in Substance

4. Stop trying to be the “next Silicon Valley.”

By Ross Baird and Rob Lalka in Forbes

5. A first step: The Ugandan Constitutional Court strikes down that country’s vicious anti-gay law, but more fight remains.

By James K. Arinaitwe and Adebisi Alimi from the Aspen New Voices Fellowship

The Aspen Institute is an educational and policy studies organization based in Washington, D.C.

TIME gender

My Gender-Neutral Childhood: Lessons in Raising Girls Who Succeed in Tech

Kira Makagon as a child Courtesy Kira Makagon

The co-founder of several successful startups talks about her unusual upbringing and how to inspire a love of math and science

Raised as the only child of Ukrainian immigrants, I never thought much about my childhood. It was certainly different from the way most of the other American kids I met grew up, and in a lot of ways, it seemed harder. (Imagine the wardrobe dilemmas of an immigrant teenager in 1980s San Francisco coming from a Soviet-bloc country, for instance.)

Lately though, I’ve been getting a lot of pointed questions about my upbringing: Did you play with Legos? Did you always love math? Were you allowed to study art, history and literature? The reason for the curiosity is clear. As a female tech entrepreneur in a predominantly male industry, people are interested in how my environment encouraged my academic and professional path toward technical learning.

More than ever, parents of young children are concerned about how to enable their children to succeed in a world where traditional occupations and industries have been upended by technology. Parents of girls especially worry that the best jobs will go to graduates who master science, math and technology education (the so-called STEM disciplines), which tend to attract more boys. We’ve all seen the media stories about the unemployed philosophy majors.

Recognizing that every child is different, I do believe that there are certain elements of my unconventional upbringing that prepared me to be comfortable and happy building a career in a technical field. All parents pour their hopes and dreams into their children, but I now know my parents invested in me in the right ways. From early on, they provided me with the right tools to continue developing myself as an older child, teenager and into adulthood. Based on my experience, below are my top five takeaways on how to prepare a child (and especially a girl) to be prepared for a technical career.

1. Choose gender-neutral toys.

My parents did not encourage dolls, and I didn’t gravitate to them. I liked Legos and building things. My father was an engineer who designed toys in Russia. He and I would build miniature models of houses. We built whole cities with railroads and cars. The floor of my room was always crowded with our playthings.

2. Encourage sports, and not just girls-only teams.

I liked all kinds of sports. When I was younger, it was bicycles, badminton and ping-pong. I was always fast — faster than most boys early on. I loved ice skating, and because I was very fast, I could play hockey with boys. For this reason, I always had a lot of friends who were boys. I grew up comfortable around boys, confident in my natural ability and with very little fear.

3. Treat your sons and daughters as individuals, not as gender stereotypes.

As an only child, my parents gave me lots of attention and treated me purely as an individual — not like a stereotypical girl. My dad treated me the same as he would any son. We played hockey together, and he took me to sporting events.

4. Emphasize the importance of leadership at an early age.

My mother, a Russian-literature teacher, encouraged me to be a class leader and participate in class (even if I found the lessons boring). She and I had long talks about leadership. She impressed upon me the need to excel in school. Even a B was unacceptable. I became class president in elementary school and learned to enjoy leading others.

5. Pursue music, chess and logic problems.

I practiced piano for two hours a day, loved the math olympiad and enjoyed solving logic problems in my spare time. These weren’t treated as nerdy or antisocial, but as valid and valuable pursuits to develop my mind and capabilities.

READ MORE: Cracking the Girl Code — Tech Giants Are Betting on Coding Camps for Girls to Close Their Gender Gap

Makagon leads product, engineering and operations teams at RingCentral, the cloud-based business phone company, where she is Executive Vice President of Innovation. She is a Silicon Valley–based serial entrepreneur who has co-founded several technology companies, including Octane (acquired by E.piphany) and RedAril (acquired by Hearst). Follow her @kiramakagon

TIME Tech

eBay’s Surprising Diversity Figures

The eBay headquarters seen in San Jose, Calif., in 2011.
The eBay headquarters seen in San Jose, Calif., in 2011 David Paul Morris—Bloomberg/Getty Images

The online-auction site employs more women than its Silicon Valley peers. But men still dominate in technical and leadership positions

The tech industry is notoriously dominated by white and Asian men. But eBay’s first diversity report shows that it employs more women, blacks and Hispanics than its peers.

Forty-two percent of eBay’s staff of 33,000 workers is female, beating out LinkedIn’s 39%, Yahoo’s 37%, Facebook’s 31%, Twitter’s 30% and Google’s 30%.

eBay also reported that 7% of its U.S. employees are black and 5% are Hispanic.

But even though eBay as a whole may be more diverse than many other tech companies — it also had a female CEO, Meg Whitman, from 1998 through 2008 — there is still a huge gender gap in terms of tech jobs and leadership roles: only 24% of eBay’s tech workers are women.

And even though eBay says it has doubled the number of women promoted to leadership positions in the past three years, just 28% of those in leadership at eBay are women. (For comparison, 17% of Google’s engineers are women, and 21% of leaders are women.)

The same holds true for race. Of those working tech jobs, only 2% are black, 2% are Hispanic and 1% are multiracial. Meanwhile, 40% of those holding tech jobs are white, and 55% are Asian.

Similarly, only 5% of those in leadership positions are black, Hispanic or multiracial. A whopping 72% of the company’s leaders are white, and only 23% are Asian.

TIME Apple

These 5 Facts About Apple Will Blow Your Mind

Berlin Apple Store Opens For Business
Apple Inc. iMac computers are seen on display at the new Apple Inc. store located on Kurfurstendamm Street in Berlin, Germany, on Friday, May 3, 2013. Bloomberg—Bloomberg via Getty Images

Even in a slow quarter the iPhone by itself generates more revenue than all of Amazon

fortunelogo-blue
This post is in partnership with Fortune, which offers the latest business and finance news. Read the article below originally published at Fortune.com.

After Apple reported its quarterly earnings Tuesday, Slate’s Jordan Weissmann offered several eye-opening comparisons. Among them:

  • If the iPhone were a company in its own right, it would be bigger than McDonald’s and Coca Cola combined.
  • The iPad generated more revenue last quarter than Facebook, Twitter, Yahoo, Groupon, and Tesla combined.
  • Apple’s sales from hardware accessories is larger than Chipotle’s revenue.
  • Apple’s iTunes, software, and services businesses are bigger than eBay.
  • While sales of the old iPod line may be shrinking, it’s still 77% larger than Twitter.

LINK: If Apple Products Were Their Own Companies, They’d Be as Big as …

Follow Philip Elmer-DeWitt on Twitter at@philiped. Read his Apple AAPL coverage at fortune.com/ped or subscribe via his RSS feed.

TIME apps

For a Few Hours, Uber Riders Could Learn Their Client Rating

An Uber app is seen on an iPhone in Beverly Hills, Calif., on Dec. 19, 2013.
An Uber app is seen on an iPhone in Beverly Hills, Calif., on Dec. 19, 2013. Lucy Nicholson—Reuters

The app's software team quickly repaired the glitch, and passenger rankings were once again controversially private

Uber, as Valleywag’s Sam Biddle writes, “doesn’t care about being hated.” After all, the taxi service application earned a cool $18.2 billion valuation last month, in spite of a gallery of controversial corporate practices that has prompted critics of Silicon Valley to make a litany of accusations. Uber incommensurately raises prices during peak hours, holidays and weather emergencies. Uber sabotages its competition. Uber ranks its customers.

It ranks its customers, yes. At the end of a ride, the application asks the passenger to give his or her driver a ranking on a five star system; the drivers, as the internet has only recently learned, are asked the same of their clients. The underlying logic is obvious and not really anything new — if your credit score is bad, a bank is going to hesitate before doing business with you — but users were nonetheless kind of perturbed, given the secrecy surrounding the passenger rankings. (“Uber Anxiety,” New York Magazine calls it.)

On Sunday, however, a software engineer named Aaron Landy posted to Medium step-by-step instructions on how a client can find his or her aggregate score, via some very simple skullduggery on the app’s mobile website. Uber’s programming team naturally caught wind of this and quickly swooped in to patch things up, but not before a number of Uber riders sought revelation.

By early Monday morning, one user’s attempts to learn his worth in the eyes of the benevolent transit god proved futile.

Screen Shot 2014-07-28 at 2.39.06 PM

Uber is, however, exploring ways of sharing passenger ratings in future versions of the app, or so they say. Meanwhile, the company expands — they celebrated the launch of service in Hong Kong and mainland China in the last few weeks — with the habit of incurring the wrath of local taxi drivers in each new territory.

MONEY

What Six Californias Would Really Look Like

Under a tech mogul's proposed breakup plan, some "states" are more equal than others.

Tim Draper, the Silicon Valley venture capitalist behind companies like Tesla and Skype, has a crazy idea. In order to make California more responsive to the needs of local communities, it should be broken up into six separate states: South California; Central California; North California; West California; Silicon Valley; and Jefferson.

This concept might seem more fit for a speculative novel than reality, but Draper’s dream may actually get its moment in the sun. On Tuesday, he informed USA Today that his Six Calfornias campaign had received 1.3 million signatures—far more than the roughly 808,000 required for the initiative to appear on the 2016 ballot.

Draper’s proposal still has virtually zero chance of ever happening. Even if the ballot initiative is approved (a December Field Poll showed only a quarter of residents support it), a California breakup would require the approval of Congress. And it is all but impossible to imagine a GOP-dominated House ever approving a plan that could potentially create 10 new Democratic senators.

That said, the venture capital mogul has apparently captured the imagination of many Californians who yearn for a more representative and responsive government than the one in Sacramento. In that light, it’s worth examining what six new Californias would really look like.

The major flaw in Draper’s plan is that the six new states he has outlined are not economically equal. In fact, they’re so unequal that many have wondered if the whole concept isn’t just a techno-libertarian plot to free Silicon Valley from having to share its wealth.

Under the breakup plan, some new “states” would be getting a pretty good deal. Others, well, not so much. Here’s a breakdown of each region and how it compares on various economic metrics. (All state comparisons are relative to the current United States.)

The common theme: Things look pretty darn good for Silicon Valley and West California (which includes Los Angeles), at the expense of making Jefferson and Central California two of the poorest states in the union.

Major Cities

Silicon Valley: San Francisco, Oakland, San Jose

North California: Sacramento, Santa Rosa

West California: Los Angeles, Santa Barbara

South California: San Diego, Anaheim

Central California: Fresno, Bakersfield

Jefferson: Redding, Chico

Population

West California: 11.5 million (8th in the U.S., similar to Ohio)

South California: 10.8 million (8th in the U.S., similar to Georgia)

Silicon Valley: 6.8 million (14th in the U.S., similar to Massachusetts)

Central California: 4.2 million (27th in the U.S., similar to Kentucky)

North California: 3.8 million (29th in the U.S., similar to Oklahoma)

Jefferson: 949,000 (45th in U.S., similar to Montana)

Personal Income Per Capita

Silicon Valley: $63,288 (1st in U.S., similar to Connecticut)

North California: $48,048 (7th in U.S., similar to Wyoming)

West California: $44,900 (15th in the U.S., similar to Illinois)

South California: $42,980 (21th in the U.S., similar to Vermont)

Jefferson: $36,147 (40th in the U.S., similar to Arizona)

Central California: $33,510 (50th in the US, similar to Idaho)

Percentage Living in Poverty

Silicon Valley: 12.8% (35th highest U.S., similar to Colorado)

North California: 13.7% (28th highest in U.S., similar to Illinois)

West California: 15.2% (21st highest in U.S., similar to California)

South California: 17.8% (7th highest in U.S., similar to West Virginia)

Central California: 19.9% (2nd highest in U.S, similar to New Mexico)

Jefferson: 20.8% (2nd highest in U.S., similar to New Mexico)

Median Home Price in Largest City

Silicon Valley (San Jose): $708,500

West California (Los Angeles): $520,500

South California (San Diego): $494,500

North California (Sacramento): $247,400

Jefferson (Redding): $207,600

Central California (Fresno): $165,000

Number of State Universities

West California: 9

Silicon Valley: 7

South California: 7

North California: 4

Central California: 4

Jefferson: 2

Sources: Zillow.com, U.S. Department of Commerce, United States Census Bureau, Huffington Post, California Legislative Analyst’s Office, 2008-2012 American Community Survey 5-Year Estimates.

TIME health

The 10 Healthiest Places to Live in America

From Honolulu to Plano, Texas, here's where to move for fitness, nutrition and aging well

In a new TIME book, Healthiest Places to Live, we name the best cities for your well-being. The book is now available on newsstands everywhere.

MONEY Odd Spending

Finally, a Subscription Service for Laundry Quarters

Putting quarters in laundry machine
iStock

You pay $15 per month and get … $10 worth of quarters. Apparently, it's not a joke.

File this under the category of Solutions to Problems You Didn’t Know You Had, or perhaps Ways for Extremely Lazy and Disorganized People to Drop an Extra $5 Per Month.

On Thursday, a startup called Washboard launched a quarter subscription delivery service, which is just what it sounds like. Customers sign up—OK, in theory, they sign up—for $10 or $20 worth of quarters to be delivered to them on a monthly basis. The service costs $14.99 for a $10 roll of quarters per month, or $26.99 for $20 worth of quarters monthly. The latter is the option that’s “great for high volume folks, couples, or roommates,” according to Washboard’s website.

Understandably, the reaction at large has been one of puzzlement, with people alternately assuming that the service is a joke or pointing out the obvious—that such a subscription doesn’t seem remotely necessary, and certainly doesn’t seem anywhere near worth the money. “Ever hear of a bank?” a typical Twitter comment says of Washboard.

Washboard’s founders, who say they already some customers (“less than 10″), are apparently cool with being a magnet for mockery in social media. “I’ll admit, it’s a little bit of a negative critique for the most part on Twitter, which is good,” cofounder Caleb Brown told Valley Wag. “I think it’s good. I think it’s a polarizing thing.”

He also insists it’s a completely valid, practical, worthwhile service, because many of the young people he encounters would pay a few bucks in order to skip a regular trip to the bank. “Banks close at 5, maybe they’re open Saturday, but they close at noon. I’m rarely out of bed by then,” he said.

The company follows in the footsteps of many other startup subscription services, such as viral hit of 2012, Dollar Shave Club, which sends subscribers razors for as little as $1 per month (plus shipping and handling). But Dollar Shave Club offered more than just convenience; there was a true value proposition. The service saves time and money. By most accounts, it’s been successful, and has even welcomed a sidekick subscription service, One Wipe Charlies, which are butt wipes for guys. (That’s no joke either.)

Washboard must also be discussed in light of Silicon Valley’s ongoing “bubbly race to wash your clothes better, faster, and cooler,” as New York magazine, put it, with startups like Washio offering drycleaning pickup and delivery at your door, sometimes with cookies as a scrumptious bonus.

Such services charge a premium, of course, but they save the customer a substantial amount of time. Anyone using Washboard still must do his or her own laundry, and whatever time is saved on gathering quarters comes at a 50% premium on a $10 roll of quarters. Nonetheless, the founders claim that the service legitimately eliminates one of laundry’s “pain points,” and that therefore it’s not silly. They also have ambitions to move on to detergent and fabric softener subscription services.

And who knows? The idea is probably pretty appealing to those who want to turn off their brains and never have to think about getting quarters for laundry ever again. But even after signing up for Washboard, you can’t turn your brain off entirely. After getting your monthly shipment delivered, you still have to remember to actually bring the roll of quarters to the laundromat.

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