Yeah, but what if you combine and overlay all these datasets? [xkcd]
I en anden version af den her stribe tager manden med laptoppen et helt *andet* problem, løser det i stedet og erklærer sejr! (selv om han ikke løste problemet. Og ja, det er ræddi tit en mand)
Det er altså noget vås at det simpelthen kun tæller at lave. Ingenting, der blev lavet, var noget som helst værd uden et meget større publikum end skaberkreds.
Eric Schmidt publicly defends Jared Kushner. Next day, Trump shutting DoL division investigating Google
Remember back in February, when we were coming off the high of the women’s march and the travel ban had just been proposed and all of Silicon Valley’s rage was concentrated?
Protesting was the new brunch, and employees forced-- forced-- Silicon Valley leaders to grow a spine. So much so that CEOs of multi-billion dollar companies were actually saying in despair, “WHAT DO YOU WANT US TO DO?”
Sure, there’s still a lot of Trump outrage, but it seems Silicon Valley workers have mostly just gotten back to doing their jobs. (Save that one dude who’s spent all the money on those Elon Musk billboards.)
Well, here’s a strange coincidence someone close to Google alerted me to earlier this week. One that all those protesting, woke Google employees from back in February may want to ask their company to explain...
Excellent trolling - og endelig kan man tro på at linkarkivet fra del.icio.us ikke bare sårn går væk.
“Do not attempt to compete with Pinboard.”
Når man glemmer at sitet her laves af flygtningehadere
"De vil hellere være fængslede i Bulgarien end sendes hjem" - er enten europæisk ønsketænkning om hvor meget federe der er her i Europa, og derfor utiltalende, eller så hjerteskærende at man ikke kan sætte sig ind i at bulgarerne snakker om det som *deres* problem
Mike Upchurch was a writer for Mr. Show and MADtv but now he's making these clever little videos with additional actors spliced into the narratives of Cocktail (the Tom Cruise movie) and the Dragnet TV series.
Both feature actor/comedian Chris Fairbanks in the lead role and are noted as "proof-of-concepts" for a series called Electric Television that Upchurch is presumably developing. Someone should greenlight it. (via @dunstan)Tags: Chris Fairbanks Cocktail Dragnet Mike Upchurch movies remix TV
link to er sejt
Game Theory, Face Recognition, Android Augmentation, and Closed Health Data
- Game Theory is Really Counterintuitive -- a fun collection of brain-bending research findings in game theory/economics.
- Modern Face Recognition -- the different steps and what they recognize. Readable!
- Andromium -- turn your Android phone into your laptop.
- Stop the Privatization of Health Data (Nature) -- We believe that closed-data and closed-algorithm business models in health—at scale—will hamper scientific progress by blocking the discovery of diverse ways to examine and interpret health data.
Continue reading Four short links: 25 July 2016.
Bemærk .in - vesten har mistet mange af jobsene allerede, men nu bliver de 'hjemtaget' til serverparker...
huffingtonpost.in - Automation, artificial intelligence, or other forms of “digital labour” that can perform low to high skill jobs could eliminate up to 1.4 million jobs, or nine per cent of the global IT services an...
Tweeted by @WiseTribe https://twitter.com/WiseTribe/status/754631523458887681
The world of conversational interfaces is very young. Here are some early questions that it’s working out.
Bots have become hot, fast. Their rise—fueled by advances in artificial intelligence, consumer comfort with chat interfaces, and a stagnating mobile app ecosystem—has been a bright spot in an otherwise darkening venture-capital environment.
I’ve been speaking with a lot of bot creators—most recently at a conference called Botness that took place in San Francisco at the beginning of June—and have noticed that a handful of questions appear frequently. On closer inspection, bots seem a little less radical and a lot more feasible.
Text isn’t the final form
The first generation of bots has been text most of the way down. That’s led to some skepticism: you mean I’ll have to choose between 10 hotels by reading down a list in Facebook Messenger?! But bot thinkers are already moving toward a more nuanced model in which different parts of a transaction are handled in text and in graphical interfaces.
Conversational interfaces can be good for discovering intent: a bot that can offer any coherent response to “find a cool hotel near Google’s HQ” will be valuable, saving its users one search to find the location of Google’s headquarters, another search for hotels nearby, and some amount of filtering to find hotels that are “cool.”
But, conversational interfaces are bad at presenting dense information in ways that are easy for human users to sort through. Suppose that hotel bot turns up a list of finalists and asks you to choose: that’s handled much more effectively in a more traditional-looking web interface, where information can be conveyed richly.
Conversational interfaces are also bad at replacing most kinds of web forms, like the pizza-ordering bot that has ironically become an icon of the field. Better to discern intent (“I want a pizza fast”) and then kick the user to a traditional web form, perhaps one that’s already pre-filled with some information gleaned from the conversational process.
A few people have pointed out that one of WeChat’s killer features is that every business has its phone number listed on its profile; once a transaction becomes too complex for messaging, the customer falls back on a phone call. In the U.S., that fallback is likely to be a GUI, to which you’ll be bounced if your transaction gets to a point where messaging isn’t the best medium.
Discovery hasn’t been solved yet
Part of the reason we’re excited about bots is that the app economy has stagnated: “the 20 most successful developers grab nearly half of all revenues on Apple’s app store,” notes The Economist. It’s hard for users to discover new apps from among the millions that already exist, and the app-installation process involves considerable friction. So, the reasoning goes, bots will be great because they offer a way to skip the stagnant app stores and offer a smoother “installation” process that’s as simple as messaging a new contact.
Of course, now we’ve got new app stores like Slack’s App Directory. Users are still likely to discover new bots the way they discover apps: by word of mouth, or by searching for a bot associated with a big brand.
The next step, then, would be to promote bots in response to expressions of intention: in its most intrusive implementation, you’d ask your coworkers on Slack if they want to get lunch, and Slack would suggest that you install the GrubHub bot. Welcome back Clippy, now able to draw from the entire Internet in order to annoy you.
That particular example is universally condemned, and anything that annoying would drive away its users immediately, but the community is looking for ways to listen for clear statements of intent and integrate bot discovery somehow, in a way that’s valuable for users and not too intrusive.
Platforms, services, commercial incentives, and transparency
Conversational platforms will have insight into what users might want at a particular moment, and they’ll be tempted to monetize these very valuable intent hooks. Monetization here will take place in a very different environment from the web-advertising environment we’re used to.
Compared to a chat bot’s output, a Google results page is an explosion of information—10 organic search results with titles and descriptions, a bunch of ads flagged as such, and prompts to modify the search by looking for images, news articles, and so on.
A search conducted through a bot is likely to return a “black box” experience: far fewer results, with less information about each. That’s especially true of voice bots—and especially, especially true of voice bots without visual interfaces, like Amazon’s Alexa.
In this much slower and more constrained search environment, users are more likely to accept the bot’s top recommendation rather than to dig through extended results (indeed, this is a feature of many bots), and there’s less room to disclose an advertising relationship.
Amazon is also an interesting example in that it’s both a bot platform and a service provider. And it has reserved the best namespace for itself; if Amazon decides to offer a ridesharing service (doubtless after noticing that ridesharing is a popular application through Alexa), it will be summoned up by saying “Alexa, call a car.” Uber will be stuck with “Alexa, tell Uber to call a car.”
Compared to other areas, like web search, the messaging-platform ecosystem is remarkably fragmented and competitive. That probably won’t last long, though, as messaging becomes a bigger part of communication and personal networks tend to pull users onto consolidated platforms.
How important is flawless natural language processing?
Discovery of functionality within bots is the other big discovery challenge, and one that’s also being addressed by interfaces that blend conversational and graphical approaches.
Completely natural language was a dead end in search engines—just ask Jeeves. It turned out that, presented with a service that provided enough value, ordinary users were willing to adapt their language. We switch between different grammars and styles all the time, whether we’re communicating with a computer or with other people. “Would you like to grab lunch?” in speech flows seamlessly into “best burrito downtown sf cheap” in a search bar to “getting lunch w pete, brb” in an IM exchange.
The first killer bot may not need sophisticated NLP in order to take off, but it still faces the challenge of educating its users about its input affordances. A blank input box and blinking cursor are hard to overcome in an era of short attention spans.
Siri used a little bit of humor, combined with a massive community of obsessed Apple fans bent on discovering all of its quirks, to publicize its abilities. Most bots don’t have the latter, and the former is difficult to execute without Apple’s resources. Even with the advantages of size and visibility, Apple still hasn’t managed to get the bulk of its users to move beyond Siri’s simplest tasks, like setting alarms.
(Developers should give a great deal of thought to why alarm-setting is such a compelling use case for Siri: saying “set an alarm for 7:30” slices through several layers of menus and dialogues, and it’s a natural phrase that’s easily parsed into input data for the alarm app. Contrast that with the pizza-ordering use case, where you’re prompted for the type of pizza you want, prompted again for your address, prompted again for your phone number, etc.,—far more separate prompts than you’d encounter in an ordinary pizza-ordering web form.)
Another challenge: overcoming early features that didn’t work well. We’ve all gotten used to web software that starts out buggy and improves over time. But we tend not to notice constant improvement in the same way on bots’ sparse interfaces, and we’re unwilling to return to tasks that have failed before—especially if, as bots tend to do, they failed after a long and frustrating exchange.
What should we call them?
There’s not much confusion: people working on bots generally call them bots. The field is young, though, and I wonder if the name will stick. Bots usually have negative connotations: spambots, Twitter bots, “are you a bot?”, and botnets, to name a few.
“Agent” might be a better option: an agent represents you, whereas we tend to think of a bot as representing some sinister other. Plus, secret agents and Hollywood agents are cool.
Continue reading Bot thots.
George Dvorsky at Gizmodo highlights 10 Predictions About the Future That Should Scare the Hell Out of You. My, uh, favorites are:
1. Virtually anyone will be able to create their own pandemic
5. Robots will find it easy to manipulate us
7. The antibiotic era will end
8. Getting robots to kill humans will be disturbingly routine -- and dangerous
From the manipulating robots section:
"Human empathy is both one of our paramount gifts and among our biggest weaknesses," Brin told Gizmodo. "For at least a million years, we've developed skills at lie-detection...[but] no liars ever had the training that these new [Human-Interaction Empathetic Robots] will get, learning via feedback from hundreds, then thousands, then millions of human exchanges around the world, adjusting their simulated voices and facial expressions and specific wordings, till the only folks able to resist will be sociopaths -- and they have plenty of chinks in their armor, as well."
Many of the things on the list seem to have a similar potential for mischief as the discovery of nuclear fission chain reactions in the 1930s. On the other hand, humans have at least temporarily turned that possible civilization-ending technology into a major source of clean energy and 75+ years of world peace (relatively speaking) so maybe there's some room for optimism here? Maybe? Hello?Tags: George Dvorsky lists
If you go to department stores in Japan you’ll sometimes be greeted by a friendly robot. Maybe one that looks like this:
Øv, Harmonise Celæstis er rigtig god
Cybernetics History, Cybersecurity Report, Ranch Robots, and Planned Obsolescence
- Digging into the Archaeology of the Future -- review of Rise of the Machines, a history of cybernetics. See also The Future as a Way of Life.
- Royal Society's Cybersecurity Research Report (PDF) -- RECOMMENDATION 1: Governments must commit to preserving the robustness of encryption, including end-to-end encryption, and promoting its widespread use.
- Swagbot to Herd Cattle on Australian Ranches (IEEE) -- researchers from the Australian Centre for Field Robotics at the University of Sydney, led by Dr. Salah Sukkarieh, have designed and tested an all-terrain robot called SwagBot that’s designed to be able to drive over almost anything while helping humans manage their ranchland.
- The LED Quandry: Why There's No Such Thing as Built to Last (New Yorker) -- building bulbs to last turns out to pose a vexing problem: no one seems to have a sound business model for such a product.
Continue reading Four short links: 15 July 2016.
Stacey Baker, who is a photo editor at the NY Times, spends some of her leisure time photographing the legs of women on the streets of NYC. Her Instagram account has 78K+ followers and now she's turned the project into a book: New York Legs.
Great cover.Tags: books New York Legs NYC photography Stacey Baker
Revealed in court: 100% cast iron evidence of how Uber lies to secretly investigate and smear its critics
I've been meaning to write about this all week, but the weirdness of Brogan BamBrogan got in the way.
A week or so ago, a judge ordered the release of documents that show beyond all reasonable doubt that Uber hired a CIA-linked private investigation firm to investigate the personal and professional life of Portland attorney Andrew Schmidt and his client, Spencer Meyer. Meyer had recently filed a lawsuit against Uber and Kalanick...
We have the technology. We have the capability to play live sets on mainstages. And for a brilliant example of that, look no further than the frenetic, exquisitely hyperactive acid performances of Skinnerbox. Their set at Fusion Festival from this weekend demonstrates that you can command massive mobs of dance lovers outdoors with live sets, too. And maybe you thought such things were confined to chin-scratching handfuls of nerds.
Skinnerbox is the Berlin-based duo of Iftah Gabbai and Olaf Hilgenfeld, who join together to make sample-laden live performances mixing acid techno spiced up with grooves. Last week, they dazzled the outdoor throngs at Fusion’s legendary Turmbühne, the Mad Max-styled open air megaplex.
Fusion Festival’s organizers actually explicitly discourage documentation. The event, a kind of extended afterhours open air sprawling over a Soviet airfield, is best remembered like a dream anyway. But I think it is important to share the musical artists from that event. They span seemingly endless stages, from enormous openair arenas with set pieces and special effects to intimate tents and club-like indoor spaces.
And it’s important in particular to appreciate what happens when live sets do hit the bigger stages, which even at Fusion are awash with mostly CDJ sets. Live performance of dance tracks continues to be a comparative minority. And on big stages, the throngs may not know that what is producing what they’re hearing (being occupied instead with dancing and partying, natch). So spreading that information separately is a reasonable solution.
Indeed, the possibilities of live music are so poorly unknown that Skinnerbox have sprawled a notice on their SoundCloud banner explaining there are no track IDs, because they’re not playing tracks. (I actually hear this confusion a lot with live tracks.)
Here’s what the whole set sounds like:
I talked to Iftah a bit about playing. The rig:
Olaf on Minimoog model D
Ableton Live with effects for the Minimoog
Iftah on his homemade setup – Arduino-based controlled, two monomes, custom Max for Live patches for sequencing and sample slicing (quite a lot of live sample manipulation going on).
Iftah notes the inspiration of Brian Crabtree’s monome patches, namely mlr and mythologic.
Skinnerbox aren’t just championing live performance in their shows; they’re also sharing tools for such. Their 2009 sbx 2049 drum machine was one of the first collaborations between Ableton and artists. In 2014 they released the Time & Timbre drum machine, which i think remains one of the best examples of how a computer drum machine can aid live performance and generate ideas. Even with so many Max for Live creations out there, this is one you should definitely try.
Speaking of Time & Timbre, they recently showed how it can be combined with analog modular via the CV LFO now included in 2.0 (have to cover all of this in more detail later):
For more background on their live sets, here’s a session recorded at the pool, with monome meeting Minimoog:
And from 2015, Skinnerbox (they’ve been Fusion regulars):
And last summer’s Plötzlich am Meer:
They’re even crazy enough to play live … for twelve hours.
And yes, I love the monologue in the 2016 Fusion Festival set, which seemed to have a welcome message for attendees (cue to about 45:00): “Happiness the brand is not happiness … Smile at a stranger and mean it; lose your s***”
Finally, if you want to vicariously live Fusion more (or relive it), the fine folks of German-language blog Berlin ist Techno have put together a playlist with all the sets they’ve found uploaded so far:
Now… back to plotting my next live set. And… sleeping after Fusion.
The post Hear the epic live set Skinnerbox played at Fusion Festival appeared first on CDM Create Digital Music.
Building Blocks, Mental Models, Pose Data Set, and Parsing Data Formats
- Digital Reality -- EDGE conversation with Neil Gershenfeld. It's all top-shelf thinking. There are 20 amino acids. With those 20 amino acids, you make the motors in the molecular muscles in my arm, you make the light sensors in my eye, you make my neural synapses. The way that works is the 20 amino acids don't encode light sensors, or motors. They’re very basic properties like hydrophobic or hydrophilic. With those 20 properties you can make you. In the same sense, digitizing fabrication in the deep sense means that with about 20 building blocks—conducting, insulating, semiconducting, magnetic, dielectric—you can assemble them to create modern technology.
- Mental Models I Find Repeatedly Useful -- as Maciej said: Gabriel Weinberg has published a Dictionary of Received Ideas for our time and place. This is modern nerdthink.
- MPII Human Pose Data Set -- around 25K images containing more than 40K people with annotated body joints. The images were systematically collected using an established taxonomy of every day human activities. Overall, the data set covers 410 human activities and each image is provided with an activity label. Each image was extracted from a YouTube video and provided with preceding and following un-annotated frames. In addition, for the test set we obtained richer annotations, including body part occlusions and 3D torso and head orientations.
- NAIL (PDF) -- A practical tool for parsing and generating data formats.
Continue reading Four short links: 7 July 2016.
Crackerjack science writer Ed Yong is coming out with his very first book in a month's time. It's called I Contain Multitudes (good title!) and is about "astonishing partnerships between animals and microbes".
Every animal, whether human, squid, or wasp, is home to millions of bacteria and other microbes. Ed Yong, whose humor is as evident as his erudition, prompts us to look at ourselves and our animal companions in a new light-less as individuals and more as the interconnected, interdependent multitudes we assuredly are.
The microbes in our bodies are part of our immune systems and protect us from disease. In the deep oceans, mysterious creatures without mouths or guts depend on microbes for all their energy. Bacteria provide squid with invisibility cloaks, help beetles to bring down forests, and allow worms to cause diseases that afflict millions of people.
I will read anything described as "like a David Attenborough series shot through a really good microscope".Tags: books Ed Yong I Contain Multitudes science
Farm Data, AI Mortality, Great Visualization, and Doing Social
- The Land Grab for Farm Data -- It’s time we put farmer data rights up front, in clear language that establishes who owns the data.
- Death and Suicide in Artificial Intelligence (PDF) -- A technical subtlety of AIXI is that it is defined using a mixture over semimeasures that need not sum to 1, rather than over proper probability measures. In this work, we argue that the shortfall of a semimeasure can naturally be interpreted as the agent’s estimate of the probability of its death.
- 12 Complex Concepts Made Easier Through Great Data Visualization -- they're wonderful, but I wonder how many will still be alive and working five years from now.
- Things I Learned Working at Serial -- incredible run-down of how the social media manager for Serial approached her job.
Continue reading Four short links: 8 July 2016.
nytimes.com - ACCORDING to some prominent voices in the tech world, artificial intelligence presents a looming existential threat to humanity: Warnings by luminaries like Elon Musk and Nick Bostrom about “the si...
Tweeted by @caseymegan https://twitter.com/caseymegan/status/750805506961408000
brug alle buzzwords
techcitynews.com - Artificial intelligence – fuelled by big data – and blockchain tech, are some of the technologies that could impact our world, according to Sarwant Singh, senior parter at Frost & Sullivan. Speakin...
Tweeted by @DBaker007 https://twitter.com/DBaker007/status/750840548869693440
Earned betyder nu paid.
The Intercept reports on several news media who are selling special services at the national political conventions — meetings, cocktail parties, and more. The services are corrosive. Some are explicitly corrupt, “…they make explicit the inevitable failure of the distinction between “paid” and “earned” content.”making explicit the inevitable failure of the distinction between “paid” and “earned” content.
The less controversial services are corrosive because they let the media take money from the people they cover. Having spent a few decades as a marketing communications guy, I can promise you that in every business considering these offers, the conversation includes someone saying, “It doesn’t matter if no one comes to the cocktail party. It’d still improve our relationship with the publication.” Why? Because it’s a way to pay the journal money. That’s corrosive.
Larry Lessig points out that it’s not much different from news organizations tuning their coverage to their ratings. But such tuning at least caters to perceived piopular interest. These new services let an organization or candidate buy coverage despite a decided lack of public interest. It is worse than buying ads because the news media have traditionally had a “Chinese wall” between the advertising and editorial departments. This has been a fairly effective way of protecting editorial content from the direct influence of the marketing needs of the journal, even though the wall is sometimes breached, and Time Magazine has shamefully torn it down.
Once the media started letting companies pay for phony news coverage, they pretended to honor the breach by distinguishing “earned” and “paid” content. “Earned content” is coverage provided by media of events they think are newsworthy. “Paid content” is, well, paid content. Non-sleazebag companies and their PR reps expect media to mark paid content as paid for. Edelman, the world’s largest independent PR company, created ethical guidelines that not only say that the paid content must be well marked, but that Edelman will have its own Chinese wall between the processes by which earned content is pitched (“Yo, I have a client who’s invented a time travel machine. Wanna an interview? How’s yesterday for you?”) and the negotiations that result in the placement of paid content. (Disclosure: I had a tiny hand — Trump-sized — in drafting those guidelines.)
That’s better than nothing, but paid content still makes me queasy. Companies are willing to pay for content precisely because it looks like real coverage and thus tends to be taken more seriously than obvious ads. This erodes the phenomenological line between news and ads, which is bad for democracy and culture. Indeed, “the point of paid content is to erode the line. ”the point of paid content is to erode the line.
But letting candidates pay for interviews takes this to a whole new level. This is what The Intercept says:
Sponsors who pay $200,000 are promised convention interviews with The Hill’s editorial staff for “up to three named executives or organization representatives of your choice,” according to a brochure obtained by The Intercept. “These interviews are pieces of earned media,” the brochure says, “and will be hosted on a dedicated page on thehill.com and promoted across The Hill’s digital and social media channels.”
The Hill says the resulting interviews will be earned media. Suppose the interview is stupid, boring, self-serving and non-newsworthy? If it weren’t, the client wouldn’t be paying for it. But The Hill is promising it’s going to run anyway because the client paid them $200,000. That is the very definition of paid content. So, by calling it “earned content,” The Hill can only mean that the article will not be marked as paid content, even though that is precisely what it is.
This corrupts the already corrosive practice of accepting paid content. It is disgraceful.
Virkelig fire gode denne gang - økono tingen skal læses
Data for Change, Computational Economy, Programming Language Usability, and Against Dashboards
- Teach Programming to Analyse Data for Change -- What I imagine is a project which explicitly uses all the tools students have learned over their years of high school to advocate for change in their communities. (via Cory Doctorow)
- The Computational Engine of Economic Development -- how can we measure the bits and flops of an economy?
- The Usability of Programming Languages -- lecture notes, slides, and readings.
- Real-Time Dashboards Considered Harmful -- If there’s nothing that can be done in response to a report, does it need to be reported in that manner?
Continue reading Four short links: 21 June 2016.
deathless er godt
It's a throwaway line in a longer talk and we probably shouldn't make too much of it, but I will anyway.
In five years time Facebook "will be definitely mobile, it will be probably all video," said Nicola Mendelsohn, who heads up Facebook's operations in Europe, the Middle East and Africa, at a conference in London this morning. Mark Zuckerberg, Facebook's CEO, has already noted that video will be more and more important for the platform. But Mendelsohn went further, suggesting that stats showed the written word becoming all but obsolete, replaced by moving images and speech.
"The best way to tell stories in this world, where so much information is coming at us, actually is video," Mendelsohn said. "It conveys so much more information in a much quicker period. So actually the trend helps us to digest much more information."
Maybe this is coming from deep within the literacy bubble, but:
Text is surprisingly resilient. It's cheap, it's flexible, it's discreet. Human brains process it absurdly well considering there's nothing really built-in for it. Plenty of people can deal with text better than they can spoken language, whether as a matter of preference or necessity. And it's endlessly computable -- you can search it, code it. You can use text to make it do other things.
In short, all of the same technological advances that enable more and more video, audio, and immersive VR entertainment also enable more and more text. We will see more of all of them as the technological bottlenecks open up.
And text itself will get weirder, its properties less distinct, as it reflects new assumptions and possibilities borrowed from other tech and media. It already has! Text can be real-time, text can be ephemeral -- text has taken on almost all of the attributes we always used to distinguish speech, but it's still remained text. It's still visual characters registered by the eye standing in for (and shaping its own) language.
Because nothing has proved as invincible as writing and literacy. Because text is just so malleable. Because it fits into any container we put it in. Because our world is supersaturated in it, indoors and out. Because we have so much invested in it. Because nothing we have ever made has ever rewarded our universal investment in it more. Unless our civilization fundamentally collapses, we will never give up writing and reading.
We're still not even talking to our computers as often as we're typing on our phones. What logs the most attention-hours -- i.e., how media companies make their money -- is not and has never been the universe of communications.
(And my god -- the very best feature Facebook Video has, what's helping that platform eat the world -- is muted autoplay video with automatic text captions. Forget literature -- even the stupid viral videos people watch waiting for the train are better when they're made with text!)
Nothing is inevitable in history, media, or culture -- but literacy is the only thing that's even close. Bet for better video, bet for better speech, bet for better things we can't imagine -- but if you bet against text, you will lose.Tags: Facebook text writing
Stoffer og svindel - så er den hjemme
“I’ve told people what they need to hear to get their money in and it’s been very difficult.”
“Which is a lie.”
“Yes. I’ve told some things that were not true.”
“It’s a lie. It’s a lie. It’s a material lie.”
THE MARIJUANA START-UP Ebbu LLC held its 2015 Christmas party at a stylish townhouse in downtown Denver.
As guests arrived, they selected from edibles and vape pens fanned out on cocktail tables. Hired lovelies dressed for Burning Man twirled silently through the crowd. At one point, a man ran into the middle of the room and shouted, “Everybody in here get the fuck out!” — before security showed him the door. The most committed stoners colonized a windowless basement decorated with a pirate flag. It still felt like a work party, with significant others making small talk around a messy taco bar.
For more than two years, Ebbu has promised to unveil a revolutionary line of marijuana products called “Feelings” — Energy, Create, Chill, Giggle and Bliss. Marijuana’s flaw, the company believes, is that it’s unpredictable. Customers want to know how a product will make them feel, and they want it to work every time. Ebbu’s goal is to position consistent marijuana products as the pot equivalent of the Intel microchips that power nearly everything that emerges from Silicon Valley. Imagine: “Ebbu inside” stamped on the packaging of edibles and other manufactured pot products across the country.
The company’s co-founders, Michael “Dooma ” Wendschuh, 39 (above, left) and Jon Cooper, 40 (above, right), met over a decade ago in Los Angeles, where Dooma had co-founded a production company, and Cooper worked in movie finance. Neither of them are heavy pot smokers. They formed Ebbu in 2013, and soon emerged as leaders among a wave of new pot entrepreneurs — technocrats drawn to cannabis more for the potential profits and the excitement of pioneering a new industry than personal devotion to the plant. Before Ebbu had a product to sell, the company was featured in outlets like The Economist, Bloomberg, and the Fox Business Channel. Dooma “saw a problem that nobody seemed to be addressing,” The New Yorker website reported last May. During occasional TV spots and on the conference circuit, Dooma, Ebbu’s public face, personified the image that legal marijuana businesses hope to project: smart, sophisticated and law-abiding.
At the party, Dooma stood above the snowy patio, sober, and called the crowd to attention. He is angularly thin, with short, spiky hair and deep-set eyes, so that he sometimes resembles a very well dressed prisoner of war; that night he wore a sport coat, a conservative striped tie and a Quebec flag belt buckle the size of a saucer. “There are a lot of fucking people here, which is awesome!” He cried out. “One year ago this was in my apartment.”
Before Ebbu had a product to sell, the company was featured in outlets like The Economist, Bloomberg, and the Fox Business Channel.
In November, Ebbu had topped $100,000 in monthly sales for the first time. It had about 30 employees and contractors. Dooma had stopped the party to award dog tags to the year’s new hires who had held on to their jobs. “We’re in combat every day at Ebbu,” Dooma said. “What we’re trying to do is the hardest thing you can imagine.” Each dog tag had an employee’s name and the motto, “Lead by example.”
Dooma scanned the crowd. “I know you’re doing it because you believe, ‘cause we don’t pay you guys shit. It’s about the equity. It’s about the brand that we’re building…It’s about creating something that’s going to be bigger than Facebook or Google. We are going to make a product that is going to be in every bar, every restaurant, every hotel and every household around the world!”
Two weeks later, Dooma had left Ebbu and the company he’d devoted years to build had plunged into a crisis.
THE BUDWEISER OF WEED
A year earlier, Dooma and Cooper had invited me to “embed” with Ebbu. At the time, the company had minimal name recognition and no sales, but it stood out as one of the few marijuana companies both determined to advance science and willing to break federal law. Between then and January 2016, I sat in on well over 100 company meetings and calls, including many with investors, partners and other outside parties. I spoke freely with the staff and had a free pass to spend time at the office. The plan was to tell the story of a company working to solve marijuana industry’s most exciting problem, while the rules for how marijuana companies operate are still very much in flux.
After Dooma left, the story became far more complicated. I obtained evidence that he would, on occasion, “stretch the truth” with prospective investors about the company’s finances, exaggerate product development, and that his fundraising efforts may not have been in full compliance with Colorado’s marijuana laws. Dooma and Cooper have had a falling out and neither will discuss what transpired.
In the months following Dooma's departure, I tried to piece together the story of what went wrong for a talented entrepreneur who sought to dominate America’s wildest industry.
“We’re in combat every day at Ebbu... What we’re trying to do is the hardest thing you can imagine.”
Legal marijuana is among the fastest growing industries in the country, but it’s not yet big business. In 2015, industry-wide sales totaled $5.4 billion, the overwhelming majority of it in three states: Washington and Colorado, which have legalized sales to all adults, and California, where doctors’ notes are available online. By comparison, the illegal pot market is worth roughly $40 billion and domestic alcohol sales top $200 billion annually.
In November, five states, including California, are likely to vote on recreational legalization, which could expand the market by tens of millions of potential customers overnight. Ambitious cannabis entrepreneurs like Cooper and Dooma didn’t set out to replace the local dealer. Their goal is to reinvent this stigmatized plant as an essential part of modern life, as ubiquitous, in its way, as our smartphones.
It’s hard to overstate the potential. While smoking it works well enough, marijuana is a chemically fascinating material that has been exiled from academic and corporate research for decades. “Nobody understands this plant,” Dooma said. “In order to build a business, we have to do the very basic scientific research to fundamentally understand what this plant is capable of.”
The state legalization experiments have set off the economic frenzy known as the Green Rush. But like other economic frenzies, from the California Gold Rush to dot-com bubble, a tiny elite is bound to do way better than everyone else. In Colorado alone, hundreds of companies manufacture edibles, vaping oil and other marijuana products that are largely indistinguishable from each other. Many of these companies agree with Ebbu that controlling a product’s effects, medical or recreational, or convincing customers that you can, will be central to determining who becomes Facebook and who becomes Friendster. Some companies approach this question with genetics or refined agricultural techniques. Ebbu aims to pull the plant apart and then reconstitute the relevant chemicals into products.
The legal obstacles companies face might be more daunting than the scientific problem. In Colorado, generally regarded as the world’s most mature marijuana market and an example studied by other states, the industry’s legal framework is just over three years old and individual rules change often, with potential implications far beyond the state’s borders.
If Colorado companies follow state laws, they’re unlikely to be raided and shut down by the federal government — during the Obama administration, at least — but they operate in unmapped terrain. For marijuana companies, bedrock business needs like fundraising, intellectual property protection, selling in other legal states and simply opening a bank account involve layers of complexity that companies in other industries don’t have to think about. Colorado “has the most stringent regulations where I’m least likely to go to jail. I don’t want to go to jail,” Dooma said. “That means that I’m also swallowing some of these really ridiculous rules.”
With the legal landscape still fractured and uncertain, Ebbu hopes to get a head start: right now it can simultaneously research the plant and develop new products while corporate America—everyone from Big Pharma to Big Tobacco -- salivates on the sidelines. Green Rush entrepreneurs love to compare the current moment to the Internet’s early days. Dooma, with characteristic hyperbole, considers that modest. “Maybe two billion people in the world use the Internet,” he said. “There has got to be close to seven billion who need some kind of psychoactive. Marijuana can be better than all of them, but it's not right now. It needs to change in order to reach its potential.”
I WANT EVERYTHING, AND I WANT IT NOW
Before he entered the pot business, Dooma’s L.A. production company helped create video games. He and his partner “were young and insanely confident,” Joshua Rubin, a writer who worked for them, said. “They knew how to talk people into things. They knew how to get people excited about ideas.” In the mid-Aughts, a colleague gave Dooma a copy of Alamut, a Slovenian novel based on the life of the 11th century Persian warlord, Hassan-i Sabbah. In the book, Sabbah lives by the credo, “Nothing is true, everything is permitted,” and controls an elite band of soldiers — known to history as the Assassins — by feeding them “little balls” of hashish. The book helped inspire Dooma and his partner to write Assassin’s Creed. Video games in the ensuing Ubisoft franchise have sold more than 78 million copies and grossed over $3 billion. A movie, starring Michael Fassbender, Marion Cotillard and Jeremy Irons opens in December.
A Princeton grad with a film degree from USC, Dooma, then known as Mike, smoked his first joint with some buddies on the roof of a Miami hotel during his Star Trek-themed bar mitzvah. Still “super afraid” of drugs, Dooma tried not to inhale. In more than a year, I remember seeing him consume marijuana only once, during a meeting for work purposes. I never saw him take any other illegal drug, but he met his first wife at Burning Man and has claimed, “When I think back on my life, the most important moments, every single one of them, involved a psychoactive substance.” (He’s including caffeine.)
Dooma, a vegetarian and light drinker, has a far-flung network of interesting and accomplished friends and also knows his way around the national parks. He gets along so well with his parents that he brought them to Burning Man one year. They had a wonderful time.
At work, he presents a different face. In meetings, his default tone is brusque with a withering edge. He said he prefers not to hire people with ski racks on their cars because he thinks they’ll play hooky whenever it snows. He respects a few competitors, but says things like, “If you look at the jokers who are making the real money in this industry it can’t be that hard.” He got in the habit of Googling new contacts with terms like “fraud,” “scam” and “SEC” [Securities and Exchange Commission.] When interviewing a job candidate, he characterized his management style as, “What I want is everything and I want it now.”
He once berated an employee for bringing the wrong pastries to an investor meeting. “I got so mad,” Dooma said later while driving his dinky Honda hybrid. “I yelled at him in front of a lot of people, which I shouldn't have done.” He then brought up a female employee, “I am such an asshole to [her] and she tries so hard. [She] has this incredible ability to, like, bounce back when I say the most condescending and offensive things to her. She doesn't even get perturbed.” For a while, Dooma had a daily note on his calendar reminding him not to be an asshole. (Through a spokesman, Dooma said he doesn’t remember this and suggested that it was posted by an employee.)
By 2010, Dooma had a exciting career while, around him, hundreds of medical marijuana dispensaries had opened in L.A. Dooma saw that discerning users varied their intake to focus, relax or sleep, but the available products didn’t always deliver. “People who really love cannabis are willing to forgive the problems of the plant,” he said years later. “They think that like six times out of ten having a pretty good experience is good enough, whereas the average consumer would be furious with a six out of ten situation.” It wasn’t until later, after Colorado and Washington State voted to legalize in 2012, that Dooma called his old friend Cooper, who had returned to the Denver area where he grew up. “Hey Coop,” Dooma said. “What do you think of marijuana?”
"I know you're doing it because you believe, 'cause we don't pay you guys shit. It's about the equity."
Cooper, who had built a career as a tech executive and entrepreneur, didn’t think much about it, but he invited his friend to visit. Cooper, Ebbu’s CEO, has the beard and stocky build of a young Henry VIII. He’s more approachable than Dooma. He laughs easily, cheers for the Broncos and named his son Che.
As Colorado prepared for recreational sales, Dooma and Cooper searched for investment opportunities, but nothing struck them as a billion dollar idea. Grow operations needed capital, but the pair figured cannabis would soon be a commodity crop, like wheat or soybeans. Retail dispensaries looked like another low-margin slog, as sexy as running liquor stores. Dooma and Cooper decided that the big winners would be trusted brands, the Cokes or Budweisers of weed. Companies with similar ideas already touted their products’ flavor or all-natural ingredients. But no one uses cannabis because it’s baked inside a tasty cookie. “People make purchasing decisions in this industry based on how they think it's going to make them feel,” Dooma said. The existing companies were “all branding the wrong thing.”
Marijuana gets people high, but “high” is an inadequate description of the drug’s effects. Pot can feel euphoric or zonk users into “couch lock” for hours. It can induce laughing fits, paranoia or an urge to cuddle. Some users consider it essential for exercise, sleep, and, yes, work. Underground growers have long sought to engineer highs by crossbreeding familiar plants, but in an illegal market, their skill was worth little more than street cred.
When customers enter a dispensary, the buds displayed in glass jars beneath the counter are advertised as sativa, indica or hybrid. The French naturalist Jean-Baptiste Lamarck first distinguished between the tall cannabis sativa plants found in Europe and the bushier cannabis indica that grew in India in 1783. Today sativa is said to pep users up, while indica induces a mellower “in-da-couch” high. But most experts believe that years of untracked commerce and aggressive crossbreeding have stripped the classification of any real scientific basis, at least at the dispensary counter. “I would strongly encourage the scientific community, the press and the public to abandon the sativa-indica nomenclature,” Dr. Ethan Russo, a neurologist and medical director of a Los Angeles company focused on cannabinoid receptors, said in a recent journal interview.
The thousands of strain names like Alaskan Ice, Heisenberg Kush, Chem’s Sister and Amnesia Haze confuse matters further. The Web site Leafly, which has backing from Peter Thiel’s Founder’s Fund [disclosure: a Pando investor], says the canonical strain Blue Dream, a sativa-dominant hybrid, carries a balance of “full-body relaxation with gentle cerebral invigoration.” Who, after a few hits, would disagree? But savvy buyers know that what one dispensary calls Blue Dream, will be stronger or produce a different nature of experience than the Blue Dream sold next door, because neither is the real Blue Dream, if there even is such a thing.
“Even the word ‘strains’ is not typically applied to plants,” Jonathan Page, CEO of the cannabis testing company Anandia Labs, and an adjunct botany professor at the University of British Columbia told me. “In roses, or petunias, or corn you have cultivars or varieties of plants that are actually registered with a government body.” With cannabis, of course, there’s no registration or documentation.
Cindy Orser, chief scientific officer at testing company, Digipath Labs, said that when it comes to strains “truth in advertising doesn’t exist in this industry.”
During one of Dooma’s visits to Colorado, he and Cooper were talking in the living room — sober, Cooper said. Pot had never been hard to come by in Colorado, especially in Boulder where Cooper went to college, but he had an uneven history with it. “We have all these people who are coming to the state, and they want to try marijuana, and they just want to giggle,” he said to Dooma. “What do they take?” Remembering one of his best times with weed, he then asked, “What if we made a product that was called ‘Giggles?’”
Before Ebbu launched, Cooper put together a survey to learn about their potential customers. The most intriguing responses, he found, came from former users who had given it up. “You hear a whole wide range of excuses, and you can probably name them just as well along with me,” he said. “‘I have kids.’ ‘It doesn’t fit into my lifestyle now.’ ‘I had a bad experience.’” These same people had had bad experiences with alcohol but they continued to drink. Cooper and Dooma suspected that predictable marijuana products could bring those former users back. And these customers, Cooper said, “actually have money.”
Cooper now thinks a lot about marijuana, and how he can establish Ebbu as a trusted American brand. Ebbu, he said in a meeting is not about getting high, it’s about enhancing life experiences, whether that means enjoying a party, taking a nap or painting a picture. “There’s going to be an interesting question to figure out, related to this, or maybe it’s kind of the undertone of the whole thing, which is the experience of life,” he said, sounding a bit enhanced himself. Then he recovered, “We need to have a really good answer about why psychoactives are a good thing in people’s lives.”
THE END OF THE TOUR
Ebbu occupies a chalet-style building in the Rocky Mountain foothills near the town of Evergreen, Colo. Visitors enter a cramped office furnished with all the care and charm of a police station. There’s no ping-pong table, no free snacks, no kegerator. Some employees park their laptops wherever they find space at a large wooden table in the main room. Behind a locked door, where a factory and lab contains more than $1 million worth of equipment, a team of white-coated scientists are manipulating chemicals found in marijuana to create the five “Feelings”: Energy, Create, Chill, Giggle and Bliss.
In April 2015, the facility was still under construction when the co-founders met near Dooma’s standing desk to dissect everything that wasn’t working. Dooma scribbled on a window in red marker that Ebbu had no quality control, couldn’t meet deadlines and a pricey machine — a liquid chromatography mass-spectrometer — didn’t appear to work for their purposes. Cooper, seated in the small cluttered room, added that they had no way to scale up production until the factory opened, still months away. The packaging wasn’t finalized for a product they hoped to launch within weeks. “Do you know we have 20 employees right now?” Dooma asked, with a joyless laugh. “It sure doesn’t feel like it.”
The founders were sorting through their concerns over the loud scraping of an unseen worker — “That’s not annoying at all,” Dooma said — when the bookkeeper, an affable guy named Ben, arrived with a letter. The bank had apparently learned that Ebbu is in the marijuana business. “E-Trade has decided to exercise its discretion to close the above referenced account,” it read. Dooma and Cooper had 30 days to find a new bank for their investor’s money — the company raised $2 million in 2014 — even though none in the state openly worked with marijuana companies.
As Cooper and Ben huddled around a computer to go over expenses, Dooma sat slightly removed, leg bouncing, eyes on his phone. “Dooma we need to catch up,” he suddenly read aloud. “All tours are on hold until you and I speak about my role with Ebbu.” It’s from the landlord who was renting the company lab space in Denver while Ebbu built its own. When prospective investors landed from out of town, Dooma showed them the rented lab; he thought its bubbling beakers and gleaming machines would convince investors to dig deep. The landlord, a powerful figure in the industry, knew this, and hoped that by taking away one of Dooma’s main tools for raising money, he could maximize his stake in the company.
“Why the fuck is [Dooma’s assistant] telling these people that we’re doing tours?” Dooma snapped, and stomped off to find her. She departed the company soon after. (It’s not clear whether she quit or was fired.) “We’re so fucked,” he said as he returned. “We’re so fucking fucked.”
Over the course of 2015, Cooper and Dooma collaborated on strategy and business development. Cooper oversaw operations including the construction of Ebbu’s headquarters and factory and building a sales team. Dooma focused on fundraising. His central task for the year was leading Ebbu's effort to secure $9 million in venture capital.
Raising money is a peculiar challenge for marijuana companies, so anything that threatened to disrupt his efforts was an issue. “Sales is a very delicate dance,” he told me. “It's a lot about creating an illusion about what this company is and what the investment is going to be like and what your experience is going to be like with the investment.”
Almost none of the VC funds that most start-ups hit up will invest in weed. This narrows the pool mainly to rich folks who are willing to risk stigmatization, or, perhaps even prison time, to join the Green Rush. In Colorado, only two-year state residents can own equity in marijuana companies. (The state is phasing out this requirement.) As a result, Ebbu could only offer out-of state investors the relatively boring opportunity of interest-paying “notes.” And note holders have to get fingerprinted and pass a background check for the privilege. Even Dooma, who moved to Colorado for Ebbu, was not eligible to officially own equity in the company until January 2016. He was technically a consultant, though his LinkedIn page lists him as "Co-founder, Co-CEO."
“We’re so fucked,” he said as he returned. “We’re so fucking fucked.”
Even once the company has raised money, it had to wait for the bank it found to quietly accept its business to release it. In the fall, Ebbu was so short on cash that senior executives volunteered to defer their pay, while almost $5 million languished inaccessible.
In January 2015, I sat in as Dooma called some of the company’s investors to ask for more money. Outside, a blizzard had whited-out the roads. “Life is fucking great,” a California tech entrepreneur said through the speakerphone. "Up and to the right, up and to the right."
The conversation stalled after Dooma acknowledged that Ebbu didn’t have any revenue. “I love being invested in you no matter what you’re doing,” the investor said. “I know you’re a beast and you’re going to kill it.” Still, he declined to invest further.
The second investor wasn’t ready to invest more either, and Dooma opened the third call with some small talk. “I can’t imagine what your ex-wife looks like,” he said, “because [your daughter] looks like they cloned you.”
The ex-wife “looks like a Russian hooker,” the investor said. He wanted to invest more in Ebbu once he got through a temporary cash crunch. “Within two weeks I should have full access to what is quote unquote mine.”
Dooma’s professional life was an endless cycle of calls and travel to raise the money, but he sometimes displayed an unsteady grasp of the company’s finances. In early October, for example, he told a prominent investor visiting Ebbu that sales were expected to be $100,000 in September and $240,000 in October. He repeated the latter figure on a panel at an industry conference in Denver several days later. In fact, the company wouldn’t surpass $100,000 in monthly sales until November. (Through his spokesman, Dooma said he was never provided weekly sales numbers and what he offered in these meetings were his best estimates.)
During the same meeting, Dooma alluded to selling purified cannabinoids—chemicals found in marijuana—for $2,000 a gram. Some of the rarer chemicals likely sell for these prices, but Ebbu has yet to sell purified cannabinoids at any price. (Through a spokesman, Dooma said he believed a deal had previously gone through.) To one prospective investor, and at least once in front of me, he talked about companies that sell purified cannabinoids for far higher, more than $100,000 per gram. Dooma likely arrived at this price by taking the $150 that a scientific supply company might charge for one milligram quantities for use as laboratory references and multiplying it by 1,000 — milligrams to grams. Ebbu has never sold these products either and is unlikely to in the future, a company spokesman said. Experts I contacted said the small number of labs which need them typically buy tiny quantities; one company said about 20 milligrams of a given purified cannabinoid per year.
Ebbu sells pre-filled vape pen cartridges under the brand name Fancy, as well as hash, and potent extracts that are vaporized, or “dabbed,” for a fast-acting, intense high. In June 2015, Dooma told a reporter from Fortune Magazine that it cost $2 to produce these products, which were not on the market at the time. (Through his representative, Dooma said he was misquoted). In the October investor meeting, the number changed slightly. “This is a very high margin business,” Dooma said. “It's about $35 a gram wholesale for just the extract. About $4 a gram to produce.” (Through his spokesman, Dooma said his statements were based on financial models that showed what Ebbu's margins would be when the company was producing products at scale.)
At the time, Ebbu was paying more like $11 to produce a gram, Cooper told me later, worried that if the wrong numbers got out his customers would demand lower prices. “If you haven’t noticed, I’m the number guy in the relationship,” he said with rare exasperation. (Cooper said he did not read the Fortune article until January 2016.)
The lab and factory opened over the summer and Ebbu shipped its first vape pens. Cooper had to recall the whole first batch after they leaked. Hiccups like this are standard as companies adapt manufacturing practices to the unfamiliar raw material.
Ebbu’s extracted marijuana products brought in more than $300,000 in revenue by the end of the year. But Dooma and Cooper didn’t start the company to sell top shelf weed. Dooma described the distinction with a produce analogy: Ebbu’s current offerings are like premium orange juice, which needs to come from premium oranges; but vitamin C companies can extract their product from mediocre fruit. Feelings, he told investors, will be superior products derived from non-premium plants.
That pitch helped Dooma raise $7.9 million in 2015 — short of the initial $9 million goal, but an impressive haul for the industry. Despite his fundraising success, it remains unclear, as someone leaving one of Dooma’s Manhattan pitches put it, whether the creation of the Feelings — Giggle, Bliss and the rest — is “a fairy tale or if it’s real.”
GIGGLE AND BLISS
The weed arrives at Ebbu’s factory in bags, stuffed into boxes and plastic tubs. Companies like Ebbu that make “marijuana-infused products” typically buy “trim,” the excess foliage cut away from the buds or “flower.” Wholesale trim can sell for about $500 a pound; flower, which is better for smoking, can cost four times as much. Before growers ship an order, they must fill out a manifest specifying the amount and name of the product being shipped, the date, the vehicle, the estimated time of departure and arrival and the worker accompanying it. When it arrives, an Ebbu employee weighs it on a digital scale in the garage-like receiving room and then it’s catalogued in a state government database. RFID chips track all legal marijuana in Colorado “from seed to sale,” and every worker who handles it must first pass a state background check. Plenty of Colorado’s 1,000-plus licensed grows don’t have bank accounts, so delivery drivers often leave Ebbu with thousands of dollars in cash.
It’s not well understood why pot produces — or seems to produce — such different experiences. Marijuana’s potency is largely determined by the concentration of delta-9-tetrahydrocannabinol, or THC, often called the plant’s psychoactive ingredient. But THC is only one of scores of compounds known as cannabinoids found in the plant. Cannabis also contains terpenes, the chemicals responsible for its unmistakable smell, and there’s evidence that they modify the high as well. (Fruits, conifers and many other plants also contain terpenes.) Ebbu thinks that specific ratios of cannabinoids and terpenes will produce the promised “Feelings” of Energy, Create, Chill, Giggle and Bliss. These chemicals, Cooper said, are “our flour and our sugar and our butter.”
First, Ebbu extracts the oil. The company uses ethanol (drinking alcohol) to strip away the leaves and flowers, leaving a golden, THC-rich viscous. Marijuana oil, like high-fructose corn syrup, is more versatile and less distinct than the plant it comes from. It can be vaped on its own, or deployed as the active ingredient — “Ebbu inside” — in edibles and pseudo-medical products like transdermal patches, pills and tinctures. A blend of marijuana and coconut oils, a few sellers claim, can heighten female orgasms when spritzed on their genitals a few minutes prior to sex.
As legalization spreads, many believe flower will shrink into a niche market for mavens who care about their pot’s appearance, bouquet and ancestry. Already in Colorado, more than 30 percent of cannabis retail sales go to factory-produced items, according to the data firm BDS Analytics.
Creating the Feelings, Ebbu believes, will require separating marijuana oil into purified cannabinoids. An aficionado might be able to namedrop 10 of the chemicals, but so far there’s only consumer interest in two: THC and cannabidiol (CBD), which is associated with the plant’s medicinal properties. Ebbu’s largest chromatography machine, known in-house as the Novasep, for the French manufacturer, is a custom-made, two-ton metallic puzzle of dials, gauges and piping that promises to separate marijuana oil into more cannabinoids than currently have names. It cost Ebbu more than $750,000. For years, underground growers have had an incentive to maximize the THC content in their plants. The Novasep represents a big bet by Ebbu that there’s unrealized commercial value in the lesser-known cannabinoids. In a private video, Dooma told investors that the Novasep, “could very easily make us a million dollars a day.”
Before Ebbu can manufacture the Feelings, it has to invent the recipes. In his lab at the back of the factory, Brian Reid, Ebbu’s chief science officer, uses a process called high-throughput cell screening to test how cannabinoids and terpenes interact with cells. Reid, a Ph.D. in biochemistry who previously worked at the University of Colorado and in the biotech industry, has a trim beard and a soft-spoken good-humor. With an 8-pronged pipette the shape of a hair pick, he filled the wells on an opaque rectangular plate with tiny drops of a clear fluid containing tens of thousands of cells “engineered to overexpress” the main cannabinoid receptor known to bond with THC. Across the room, a hulking liquid handling robot diluted droplets of three distinct cannabinoid solutions laid out on another plate. One solution contained THC, another CBD and the third equal amounts of THC and CBD.
According to both stoner lore and the scientific literature, CBD is supposed to moderate THC’s effects. But when Reid fed the plates into a $400,000 refrigerator-sized machine called a FLIPR, the solution containing both THC and CBD generated more cell activity than the two single-cannabinoid solutions combined. Reid explained that cannabinoids don’t act on the body like hyper-specific conventional medicines, but rather by way of a phenomenon known as the entourage effect, in which the chemicals in marijuana work in concert to amplify each other. (Dr. Russo, the neurologist, has compared it to a symphony.) This is what makes understanding individual cannabinoids a central challenge for any company seeking to harness the plant’s potential. “Cannabinoids are fairly ‘dirty,’ pharmacologically speaking,” Reid said. “They hit a number of receptors in the cells with varying affinities and effects.”
When Cooper and Dooma thought up Giggle and the other Feelings, they knew far more about what they could sell than what was scientifically feasible. Reid’s job is to perform tens of thousands of assays, varying the ratios, compounds and targets, until he lands on potential formulas for the Feelings. He said he can also test his own ideas, such as combinations that might mitigate side effects like the munchies or red eye. (Similar principles, Ebbu believes, could lead to products with specific medical benefits.) “We're going to really create a baseline of how each one of these components works at the cellular level,” Reid said. “It's really only known for a few of them.”
Reid’s work resembles the drug discovery process at pharmaceutical companies, but unlike drugmakers, Ebbu can conduct cellular research and human testing simultaneously while also generating revenue from selling similar products. For FDA regulated pharmaceutical companies, the process is more linear: Drug discovery, then additional lab research, then clinical trials and the payday only arrives, if it arrives, after years.
Ebbu can’t credibly claim that the Feelings work as promised unless it has data. But the logistics of testing intoxicants are tricky. Marijuana is a federally illegal drug and there are no established procedures or guidelines for testing it on humans. The company has had to think about things like how old the subjects should be and their familiarity with cannabis. Should it provide a way for subjects to get home, or, alternately, should they take samples home and answer questions online?
Throughout 2015, it was never clear to me which of the innumerable vape pens in the factory contained pure strain extracts—products available in every dispensary -- and which, if any, were manufactured prototypes of the Feelings. When a TV crew from Fusion visited Ebbu in March 2015, they taped a segment where three people received vape pens and then tried to guess which Feeling they had sampled. Cooper, who was not involved, believes that the samples were marijuana oil extracted from specific strains — products available in every dispensary — not precise formulas that Ebbu had developed. Dooma’s spokesman did not respond to requests for comment on what was provided for the Fusion shoot.
Through his spokesman, Dooma said the company had prototypes of Feelings by the second quarter of 2015. Through a spokesman, Cooper said it did not have formulated products by then. Either way, by the time Ebbu began formal testing this year, Dooma was gone.* * * *
A LIE, A MATERIAL LIE
On December 29th, Cooper and Dooma told me separately that big changes would come in the New Year. (Neither remembers saying so.) Dooma looked unhappy, while Cooper was his usual amiable self. Two nights later, Dooma threw a New Year’s Eve party that several employees attended. The next day he and his wife drove to Aspen where they had dinner with at least one Ebbu investor who said business didn’t come up. Dooma looked relaxed, the investor said. Perhaps for the first time.
The following Monday afternoon, the first workday of 2016, Cooper told the staff that Dooma was on an indefinite leave of absence. Dooma’s workspace had been cleared out. The news surprised almost everyone in the company. According to one Ebbu employee, speaking on the condition of anonymity, Dooma’s “personality was tough, but his expectation levels are the reason why we are where we are.” Dooma’s “the visionary,” the employee continued. “I can't believe that somebody put that much time and energy and effort into this business and they just dismissed him the way they did.”
In the weeks after, both Dooma and Cooper refused to clarify what happened, though Dooma told me, "It's the worst situation I've ever been in in my life." Then, in mid-February, I received a call from someone who identified themself as a “concerned citizen,” who told me that Dooma had misrepresented Ebbu’s revenue and profit margins, along with the amount Dooma personally invested, to make the company more attractive to prospective investors.
Not all of this was news. Dooma had misstated margins and revenues in front of me. A few days after the 2015 Christmas party, a coveted investor visited Ebbu’s headquarters. Afterward, Dooma sent an email to the team to congratulate them on a well-executed tour. A scientist who took part in the discussions with the investor replied to him: “I would like to share one thing that I have told you before: I do not like it if we change our wording as such that we are being dishonest. Tonight this happened a few times” including once, “when you were acting like we had prototypes for Feelings at this moment… I emailed you previously to ask you please not to say this and I was disappointed that you never replied.” When we first met in November 2014 Dooma told me that Ebbu had prototypes of all five Feelings.
I also learned that the co-founders met in late December and discussed Dooma’s status at the company. Without Cooper’s knowledge, Dooma recorded the conversation and then, according to the concerned citizen, inadvertently uploaded the recording to a company shared drive. I was first sent 17 clips totaling about 15 minutes of audio, which Dooma's spokesman characterized as a selectively edited recording of a much longer conversation. I knew who was arranging the leak and later received a copy of the entire recording, which lasted about one hour and 45 minutes. (Ebbu will not confirm the tape's authenticity.)
In the audio, Dooma attempted to convince Cooper that the two of them should “protect” themselves by signing an agreement that would make it difficult to fire them as a result of what Dooma had told prospective investors. He may have recorded the conversation to catch Cooper saying something he could be held to later.
Throughout the recording, Dooma repeatedly appealed to their long friendship. He also accused Cooper of trying to push him out. “Angry employees, missed emails…lies to investors that’s a case. Those are the things you say in court. It’s a case.”
At the time, Dooma was a month away from being a two-year Colorado resident, which would have ultimately allowed him to own a significant stake in Ebbu. Dooma suggests that Cooper wants to force him out, in part to take what would have been Dooma’s. “If you get rid of me then you own a lot more of this company,” Dooma said. “It is not rocket science and now the round is raised, the money is in the bank and you don’t need me.” Cooper dismissed the accusation, and says that Dooma’s false assertions with investors put the company at enormous risk. “You tell people that you’ve put a million dollars into this company,” Cooper says. “That’s material. You never put a million dollars into this company.” Misled investors have a tendency to sue.
Dooma replies, “I’ve told people what they need to hear to get their money in and it’s been very difficult.”
“Which is a lie.”
“Yes. I’ve told some things that were not true.”
“It’s a lie,” Cooper says. “It’s a lie. It’s a material lie.”
Dooma also implicated his co-founder: “You’ve been in enough investor meetings to know that I will occasionally stretch the truth on small things where I can’t get caught. You know. That’s what I do. It’s something that you do. Everyone does it to some extent.”
“I don’t know if that’s true,” Cooper responded.
Elsewhere in the recording, Dooma tells Cooper, “It’s not false that I didn’t invest. I got fucking paperwork saying I invested… I’m on record as a note holder in Ebbu for $240,000.”
It’s not clear how much of the $240,000 was actually Dooma’s. In a “custodian agreement” dated September 13, 2013, Dooma agreed to receive $140,000 “to make certain investments as directed by investor.” As best I could determine without endangering anyone’s livelihood, the signer is the brother of one of Dooma’s college friends who works for a global bank. According to a document, apparently executed September 19, 2013, which I obtained, Dooma then invested $140,000 in Ebbu. If this transaction went through, it could have served as a way for someone who didn’t want their name associated with marijuana to invest in a marijuana company.
In October 2013, Dooma’s future wife signed a similar agreement to receive $100,000. A document dated two days later was prepared to confirm a $100,000 investment in Ebbu, and names both her and Cooper as signatories, though Cooper hasn’t signed it.
Through his spokesman, Dooma said he invested a total of $249,000 in the company, including a $100,000 note executed in September, a month before his future wife accepted custody of the same sum. Dooma’s spokesman did not respond to requests to clarify the source of the $140,000 investment.
In part to prevent illegal marijuana operations from gaining control of the Colorado market, the licensing process requires executives, in this case Cooper, to sign documents under penalty of perjury disclosing everyone who has a current or pledged financial interest in the company. Ebbu received its state license in March 2015. If any of the transferred $240,000 made it into Ebbu’s coffers, the company had an obligation to disclose the names of the original investor or investors. Cooper said neither Dooma’s college friend nor anyone with his last name has ever been an Ebbu note holder. Cooper also said he is not aware of Dooma’s wife ever being a note holder and Dooma’s camp said she never was. Dooma’s spokesman did not respond to specific questions about the contents of the audio.
In the recording, Cooper said that Dooma’s embellishments have imperiled Ebbu, “I don’t think you understand the severity of what’s been going on and what’s happening.”
“It’s more severe for me than it is for you,” Dooma responded.
“It could be severe for everyone who’s associated with the company,” Cooper said. “If stuff got out, if all this stuff was publicized…it could affect every single person in the company.”
“Correct,” Dooma said.
“Everyone out of a job, everything under.”
NOBODY UNDERSTANDS THIS PLANT
Ebbu’s quest to understand the mercurial plant continues. The Ebbu investors I spoke to seemed unconcerned about Dooma’s exaggerations and it appears that in many cases he told prospective investors accurate figures. "In any private deal,” one investor said, “verbal numbers are going to be corrupted and it's up to the individual investor to do their due diligence.” Others who sat for Dooma’s fundraising pitch say he was always candid about the risks Ebbu investors faced. An early Ebbu funder, Darren McCammon, said he remains confident in the company’s direction. “I would be more upset if I had lost Coop,” he said.
Since Dooma’s departure, the company has established an oversight committee. Many Ebbu staffers are probably still unaware of the recording Dooma made. In March, someone claiming to be an Ebbu employee sent me an anonymous note saying there has been a purge of Dooma’s loyalists. “They're wiping any possible memory of the founder,” the employee wrote. “But we all know what they did to him.”
Through his spokesman, Cooper said the company has made inquiries to the company's investors, “so that we can understand what occurred and take any remedial measures." The round is now closed at $7.9 million, the same amount raised before Dooma left; Dooma is no longer invested in the company. Cooper said operations are stronger than ever. The company is working on a product line called Ratio that will contain specific ratios of THC and CBD. Several competitors already sell similar products, but it’s a step toward the Feelings, which the company now says will be out in early 2017. Perhaps the strongest indication that Ebbu can recover and thrive is that in the audio, Cooper said everything a responsible CEO should, without knowing he had to.
For as long as I knew him, Dooma always presented money as a secondary motivation. His orations about providing “safer” alternative to alcohol sometimes rang hollow, but his insistence that Ebbu would change the world never did. Joshua Rubin, who co-wrote Assassin’s Creed 2, told me Dooma “is excited by opportunity, to do things. He wants to go for the ride.”
In a forgiving light, then, his actions were likely what he thought Ebbu’s outsize ambitions required given Colorado’s restrictions on fundraising.
When we last spoke, in mid-February, before his recording and the investment documents surfaced, he sounded upbeat and said he’s starting a new marijuana venture, one that would surpass Ebbu. “I’m on a mission,” he said. Next time, though, it won’t be in Colorado.
Alex Halperin is a freelance reporter in Denver. He writes the newsletter WeedWeek.
Photography by Morgan Rachel Levy