Right to repair bill targeting parts pairing passes Oregon House

Samsung Self-repair kit

Image Credits: Samsung

The Oregon House this week passed a right to repair bill by nearly a 3-to-1 margin at 42 votes to 13. If signed into law, the northwestern state wouldn’t be the first in the union to pass a right to repair bill (more like the fourth), but the legislation contains aggressive language that goes beyond those on the books. As a result, manufacturers are split.

Google gave the bill a full-throated endorsement back in January. An executive for the software giant called Oregon’s “a compelling model for other states to follow,” in an open letter.

Apple, which had previously penned an open letter in support of California’s legislation, has been less enthusiastic. It’s a stark contrast, particularly the similarities between the bills. In fact, Oregon based much of their legislation on the one penned by their neighbor to the south. The company insists that — as with the California law — it’s mostly in favor with Oregon’s approach.

“Apple agrees with the vast majority of Senate Bill 1596,” John Perry, Apple senior manager, Secure System Design, said in testimony to state lawmakers last month. “I have met with Senator [Janeen] Sollman several times and appreciate her willingness to engage in an open dialogue. Senate Bill 1596 is a step forward in making sure that the people of Oregon, myself included, can get their devices repaired easily and cost effectively.”

Apple’s big sticking point with the bill comes down to what is known as “parts pairing.” The practice requires the use of proprietary components in order for the repaired device to function as intended. Perry cited biometrics as a particular source of concern, noting:

Under SB 1596’s current parts pairing wording, Apple could be required to allow third-party biometric sensors to work in our devices without any form of authentication, which could lead to unauthorized access to an individual’s personal data. This would be an incredible disservice to consumers not just in Oregon, but worldwide, as we do not have the ability to restrict such provisions regionally.

The practice has, however, long been a cause of concern among repair advocates. PIRG (Public Interest Research Group) has petitioned the FTC for a ban of what it calls “one of the most pernicious obstacles to right to repair.”

OPIRG state director Charlie Fisher adds, “I’m proud that we’re moving forward on an innovation even more critical than a new gadget: the right to fix our electronic devices. By eliminating manufacturer restrictions, the Right to Repair will make it easier for Oregonians to keep their personal electronics running. That will conserve precious natural resources and prevent waste. It’s a refreshing alternative to a ‘throwaway’ system that treats everything as disposable.”

In an interview with TechCrunch last month, Senator Sollman expressed frustration over attempts to communicate with Apple during the bill-crafting process.

“People were coming to me with potential changes, and I felt like I was playing the game of operator, like I was being the one that was having to bring forward the changes, and not Apple themselves,” she told TechCrunch. “That’s very frustrating. We entertained many of the changes that Apple brought forward that are in the California bill. There were two remaining items that were concerning to them. We’ve addressed one of them, because that was providing some ambiguity to the bill. And so I think the one part that . . . they will stand on the hill on is the parts pairing.”

The bill has received bipartisan support in both the state Senate and House. It is currently headed to the governor’s desk, where it may be signed into law.

Frontline Ventures team

Frontline Ventures raises $200M targeting B2B startups straddling the Atlantic

Frontline Ventures team

Image Credits: Frontline Ventures

Startups in Europe, faced with an ongoing economic slowdown in the region, continue to struggle on the fundraising front. Meanwhile, European VCs that are hedging their bets by growing their focus on startups that either have a global/U.S. play in mind — or are in the U.S. already — are seeing a lot of interest from LPs. TechCrunch has learned exclusively that Frontline Ventures has raised $200 million across two funds, named Frontline Growth and Frontline Seed, to keep making bets across the pond.

It’s not the only one: Giant Ventures in January closed two new funds totaling $250 million to invest in startups on both sides of the Atlantic.

Frontline already had a reputation for investing across both Europe and North America; its new funds will continue to follow that strategy, focusing specifically on B2B software companies. Following wider trend lines among other VCs in the region, the new seed fund will favor European ventures, while the growth fund will focus on U.S. startups.

Frontline believes that U.S. scale-ups, generally, have much better odds at succeeding when they expand their operations to the other side of the Atlantic. “Though it is a traditionally undervalued market, Europe accounts for over 30% of global revenues of top-performing B2B software companies at IPO,” Brennan O’Donnell — the co-lead of Frontline Growth with Stephen McIntyre — said in a statement.

“Traditionally undervalued” is well-worn phrase applied to Europe’s venture landscape. And stats detailing how funding has dropped off since 2021 do not help. However, things aren’t quite as bad as the headlines seem to state once you stop comparing recent investment trends to the boom times of 2021 and early 2022. Startups on the continent still raised more capital last year than they did back in 2019, according to a report by law firm Orrick. And Europe was the only major region to see investment levels remain above pre-pandemic norms — Asia and North America both fared poorly by that metric.

O’Donnell and his partners at Frontline have been vocal about Europe’s value as a market for some time and have even corroborated it with some research of their own. Frontline wants to ensure that its U.S. companies don’t leave money on the table by not expanding to Europe when they should.

Expansion roadmap

O’Donnell told TechCrunch that when Frontline helps portfolio companies navigate expansion to another market, it focuses on timing, go-to-market strategy, talent, and organizational design and location.

That’s by order of importance, and a company’s location should be a derivative of the previous three aspects, O’Donnell said. “Ultimately, location comes down to where your customers are and where the talent base that you need to effectively support those customers is.”

Frontline has already put this framework into action over the last few years, supporting portfolio companies like HR software company Lattice and compliance platform Vanta with expanding to Europe.

Lattice raises $175M at a $3B valuation for its people management platform

“Lattice expanded at a time when it wasn’t obvious,” O’Donnell explained. Although the company put its plan into action during the pandemic, when people still weren’t actively getting on planes, there was also a sense that the 2020 dip wouldn’t last, he said, adding that there were some tailwinds for HR tech. Fast-forward a few years, and that decision proved “very successful.”

One of the pitfalls Frontline warns against is “success amnesia”: Just because a company enjoys a certain level of success in the U.S. doesn’t mean it will fare well in Europe, too, without a careful strategy.

“Vanta grew as quickly as it did during our first 18 months in Europe thanks to Frontline’s guidance,” said Christina Cacioppo, co-founder and CEO of Vanta. “We tripled our customer base, quadrupled our team, and cemented Vanta as the market leader globally thanks to Brennan, Stephen and the Frontline team.”

Besides its partners and offices in London, Dublin, Palo Alto and New York City, Frontline has also built a community of executives in the European and Middle Eastern region to form a network that its portfolio companies can tap. “Over the last couple of years, we have pulled together a community for the top 200–250 VPs and GMs of EMEA, and we do regular events.”

Speaking about the firm’s current portfolio, O’Donnell said that he anticipates an IPO for one of its investments, likely one of its mature, growth-stage startups — within the next 18 months, although he didn’t specify which one.

Talking of Frontline Seed, O’Donnell noted the firm has an “especially strong track record when it comes to helping companies raise their Series A.” Considering that pre-seed and seed investments haven’t slowed down as much as later stages, avoiding this bottleneck could be of value to European startups hoping to become transatlantic scale-ups, or perhaps even IPO candidates.

Dublin’s Frontline Ventures raises new $83.8M seed fund for European B2B startups