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Raspberry Pi’s trading arm snags £33m investment as flotation rumours sink • The Register

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The trading arm of the Raspberry Pi Foundation has received a £33m investment – putting paid to rumours that the company was looking to float on the stock exchange as a means of funding growth.

The Raspberry Pi project came to the public’s attention back in 2011, and by the time the education-focused single-board computer entered mass production a year later demand was high – so high that its initial production run of 10,000 units sold out in seconds.

In the years since, the project has gone from strength to strength with increasingly powerful successor devices, a recent foray into microcontrollers designed by its in-house integrated circuit team, variants designed for embedding, and even its first consumer product, the Raspberry Pi 400, which packs the company’s single-board computer tech into a keyboard chassis named for Atari’s famous family of eight-bit microcomputers.

Earlier this year, a report claimed that Raspberry Pi was to float on the stock market with a £300m valuation – a suggestion co-founder Eben Upton gently dismissed as being a simple chat with unnamed advisors about “how we might fund the future growth of the business” that had been “over-interpreted” by the media.

Now the meat behind the sizzle has been revealed: a report in The Telegraph confirming the sale of stakes in the company to Lansdowne Partners and the Ezrah Charitable Trust – providing $45m (around £33m) in funding without needing to go public.

The investment puts the company at a valuation of around $500m (around £366m), slightly higher than its previously suggested worth, but a potential bargain given the company’s high profile and sales on track to exceed 40 million units across its product range – boosted by increased demand during pandemic lockdown periods and units which have made their way to the International Space Station.

Lansdowne Partners’ presence in the list of investors is less surprising than Ezrah Charitable Trust. The latter was founded by former Goldman Sachs vice-president and Farallon Capital Management partner David Cohen in 2016 to focus “on the poorest of the poor, especially in Africa” – an indicator that it may be the work of the not-for-profit Raspberry Pi Foundation that was of interest.

According to executive director Kevin L Miller’s LinkedIn profile, Ezrah Charitable Trust remains “dedicated to serving people burdened by poverty by providing catalytic support to our high-impact implementing partners” – among which Raspberry Pi can now be counted.

Which isn’t to say there isn’t cash on the table while the charity works to improve access to computing for all. The foundation’s 2020 financials [PDF] showed a total group income of over £95.8m, nearly double the £49.5m it reported in 2019.

“The commercial and human impact [Raspberry Pi] has achieved in its first decade has been extraordinary,” Peter Davies, Lansdowne partner and head of developed markets strategy, claimed in a statement to press on the investment, “and we look forward to assisting the company to expand this even further in coming years as new capital is deployed.”

Neither Raspberry Pi nor Ezrah Charitable Trust responded to requests for comment in time for publication. ®

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UK competition watchdog unveils advice for antivirus firms • The Register

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The UK’s Competition and Markets Authority (CMA) has unveiled compliance principles to curb locally some of the sharper auto-renewal practices of antivirus software firms.

The move follows the watchdog baring its teeth at McAfee and Norton over the issue of automatically renewing contracts.

The CMA took exception to auto-renewal contracts for antivirus software that customers in the UK signed up for and found difficult to cancel. Refunds and clearer pricing information (including making sure consumers were aware that year two could well end up considerably costlier than the first) were the order of the day.

Today’s principles build on that work, and are aimed at helping antivirus companies toe the line where UK consumer law is concerned. They are a bit more detailed than a simple “stop being horrid.”

The focus remains on auto-renewing contracts, where a customer signs up for a fixed period, then is charged again for subsequent periods. The CMA acknowledges that such arrangements are convenient, but they risk the consumer being locked into an agreement they no longer want or that they get stung with higher fees at renewal time.

While the principles are intended to be helpful, lurking in the background is consumer law and the threat of a potential trip to court for vendors stepping out of line.

First up comes a requirement to make sure customers are informed about auto-renewal, rather than hiding the detail in an End User Licence Agreement (EULA) or burying it in hard-to-read text through which a user must scroll.

Price claims must be “accurate” and “not mislead your customers” – so only show discounts against the normal price. It must also be possible to turn off the auto-renew easily, keep auto-renew turned off once it is off and, if on, make sure customers are reminded in good time that an auto-renew will happen.

Getting a refund must be easier and customers should be able to change their mind when auto-renewal happens. If the customer has stopped using the product, safeguards are needed around auto-renewal.

The last principle could pose a few challenges – how does a vendor become aware that a customer is not using its product? The suggestion from the CMA is to check if software updates are being received rather than simply charging users year after year.

The Register contacted McAfee and Norton for their thoughts on the principles, and will update should the companies respond. ®

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Grocery start-up Gorillas raises nearly $1bn in round led by Delivery Hero

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Just a few months after hitting unicorn status, Gorillas has raised another major round of funding from big-name investors.

German start-up Gorillas has raised nearly $1bn to expand its on-demand grocery delivery business.

The Series C funding round was led by Delivery Hero, the German food and grocery delivery giant that recently took a stake in Deliveroo.

Gorillas also received backing from existing investors including Coatue Management, DST Global and Tencent, as well as new investors G Squared, Alanda Capital, Macquarie Capital, MSA Capital and Thrive Capital.

The fresh funding comes just a few months after the company’s $290m Series B, which brought its valuation to more than $1bn.

Gorillas was founded in Berlin in 2020 by Kağan Sümer and Jörg Kattner, promising grocery deliveries in as little as 10 minutes.

It now operates more than 180 warehouses and has expanded to more than 55 cities in nine countries, including Amsterdam, London, Paris, Madrid, New York and Munich.

The company plans to use the latest funding for its next phase of development. This includes reinforcing its footprint in existing markets and investing in operations, technology and marketing.

“The size of today’s funding round by an extraordinary investment consortium underscores the tremendous market potential that lies ahead of us,” said Sümer, who is CEO of the start-up.

“With Delivery Hero, we have chosen a strong strategic support that is deeply rooted in the global delivery market, and is renowned for having unique experience in sustainably scaling a German company internationally.”

On-demand grocery delivery is a growing area in Europe that’s attracting investor attention.

Swedish start-up Kavall raised $5.8m in August, Czech player Rohlik hit unicorn status after its €100m Series C round in July, and Spain’s Glovo secured a €450m Series F round in April to expand in the grocery market.

Gorillas differentiates itself from other players in the market, such as Deliveroo, by employing its delivery drivers rather than relying on gig workers.

However, as the start-up has scaled rapidly over the past year, it has seen delivery workers protest over working conditions and pay, and been put under the spotlight for its treatment of employees.

Don’t miss out on the knowledge you need to succeed. Sign up for the Daily Brief, Silicon Republic’s digest of need-to-know sci-tech news.

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ICO to step in after schools use facial recognition to speed up lunch queue | Facial recognition

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The Information Commissioner’s Office is to intervene over concerns about the use of facial recognition technology on pupils queueing for lunch in school canteens in the UK.

Nine schools in North Ayrshire began taking payments for school lunches this week by scanning the faces of their pupils, according to a report in the Financial Times. More schools are expected to follow.

The ICO, an independent body set up to uphold information rights in the UK, said it would be contacting North Ayrshire council about the move and urged a “less intrusive” approach where possible.

An ICO spokesperson said organisations using facial recognition technology must comply with data protection law before, during and after its use, adding: “Data protection law provides additional protections for children, and organisations need to carefully consider the necessity and proportionality of collecting biometric data before they do so.

“Organisations should consider using a different approach if the same goal can be achieved in a less intrusive manner. We are aware of the introduction, and will be making inquiries with North Ayrshire council.”

The company supplying the technology claimed it was more Covid-secure than other systems, as it was cashless and contactless, and sped up the lunch queue, cutting the time spent on each transaction to five seconds.

Other types of biometric systems, principally fingerprint scanners, have been used in schools in the UK for years, but campaigners say the use of facial recognition technology is unnecessary.

Silkie Carlo, the director of Big Brother Watch, told the Guardian the campaign group had written to schools using facial recognition systems, setting out their concerns and urging them to stop immediately.

“No child should have to go through border-style identity checks just to get a school meal,” she said. “We are supposed to live in a democracy, not a security state.

“This is highly sensitive, personal data that children should be taught to protect, not to give away on a whim. This biometrics company has refused to disclose who else children’s personal information could be shared with and there are some red flags here for us.”

The technology is being installed in schools in the UK by a company called CRB Cunninghams. David Swanston, its managing director, told the FT: “It’s the fastest way of recognising someone at the till. In a secondary school you have around about a 25-minute period to serve potentially 1,000 pupils. So we need fast throughput at the point of sale.”

Live facial recognition, technology that scans crowds to identify faces, has been challenged by civil rights campaigners because of concerns about consent. CRB Cunninghams said the system being installed in UK schools was different – parents had to give explicit consent and cameras check against encrypted faceprint templates stored on school servers.

A spokesperson for North Ayrshire council said its catering system contracts were coming to a natural end, allowing the introduction of new IT “which makes our service more efficient and enhances the pupil experience using innovative technology”.

They added: “Given the ongoing risks associated with Covid-19, the council is keen to have contactless identification as this provides a safer environment for both pupils and staff. Facial recognition has been assessed as the optimal solution that will meet all our requirements.”

The council said 97% of children or their parents had given consent for the new system.

A Scottish government spokesperson said that local authorities, as data controllers, had a duty to comply with general data protection regulations and that schools must by law adhere to strict guidelines on how they collect, store, record and share personal data.

Hayley Dunn, a business leadership specialist at the Association of School and College Leaders, said: “There would need to be strict privacy and data protection controls on any companies offering this technology.

“Leaders would also have legitimate concerns about the potential for cyber ransomware attacks and the importance of storing information securely, which they would need reassurances around before implementing any new technology.”

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