Aug
01

Pico nabs $24.7M to create VR hardware that challenges Facebook, Google

Over the last few years, Facebook has been busy building out AI capabilities in areas like computer vision, natural language processing (NLP) and ‘deep learning,’ in part by acquiring promising startups in the space.

Understandably, this has seen the U.S. social networking giant look to the U.K. for AI talent, including an acqui-hire of NLP startup Bloosbury AI in 2018, and most recently, acquiring Scape Technologies, a British company using computer vision to offer more accurate location positioning for augmented reality.

Now TechCrunch has learned that a third U.K. acquisition quietly took place this December, seeing Facebook acquire Deeptide Ltd., the company behind Atlas ML, which is also the custodian of “Papers With Code,” the free and open resource for machine learning papers and code.

A regulatory filing for Deeptide reveals that Facebook became a majority owner on 13th December 2019. The same day, Atlas ML co-founder Robert Stojnic published a Medium post titled “Papers with Code is joining Facebook AI,” which went largely unnoticed outside of the machine learning research community.

Terms of the deal — or even that the acquisition took place — weren’t announced by Facebook at the time, beyond Stojnic’s sanctioned post. However, according to my sources within London’s tech community, the ballpark price is thought to have been around $40 million or thereabouts.

Founded in 2018 by Stojnic and Ross Taylor, Atlas ML wanted to “make it easier to discover and apply deep learning research”. The young startup was an alumni of Entrepreneur First (EF) — along with Bloomsbury and Scape — and raised subsequent seed funding from Episode1 and Kindred Capital.

I’ve contacted Facebook for comment and will update this post if and when I hear back.

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Feb
10

Localytics founders announce Demand Sage, a startup bringing marketing intelligence to small and mid-sized businesses

Just a couple days after mobile analytics and marketing company Localytics was acquired by Upland Software, two of its founders are announcing their new startup, Demand Sage.

CEO Raj Aggarwal and CTO Henry Cipolla previously co-founded and served in the same roles at Localytics, and they founded Demand Sage with Chief Product Officer Randy Dailey — whom Aggarwal described as the “perpetual all star” of the Localytics product team.

Aggarwal explained that the idea for Demand Sage emerged from their time at Localytics, where the team worked with large enterprises and used customer data to “refine their customer experience.” But he discovered that “even for a mid-sized company like ourselves, it was impossible, infeasible to take advantage of those same capabilities.”

At least, it was impossible in the past, but Aggarwal said the landscape has changed in ways that allow Demand Sage to now bring “the best of a large enterprise’s marketing intelligence capabilities to small and medium-sized companies,” (as he put it in a blog post introducing the company).

First, there’s cost. Aggarwal told me that while a smaller business can’t afford the “massive cost to cleanse and manipulate data,” many are now using online software that collects and structures the data for them, so Demand Sage can take advantage of that work.

“The problem is that the enterprise solutions are built in a way that requires customization or data manipulation as the first step to really understand what that data is,” he said. “That’s what makes it cost tens of thousands of dollars, often. That’s the first piece that we think we can eliminate immediately.”

Second, there’s the fact that marketers are increasingly creating their reports in Google Sheets, because of its flexibility. And third, Aggarwal said that while “the raw cost of computation has gone down,” the data remains “pretty difficult to access and challenging for a non-data scientist to use it.”

So Demand Sage was built to take advantage of and address these shifts. It initially plugs into HubSpot (with plans to integrate with other marketing platforms) and Google Sheets, automatically generating what Aggarwal said are “spreadsheets that are well-formatted and well structured” to highlight trends and anomalies that are relevant to marketers, which can then be used for “communicating those insights back into organizations.”

To be clear, we’re not talking about basic analytics data, but rather more nuanced analysis, the kind of thing that Dailey said smaller businesses struggled with in the past.

“We might ask them what factors influenced customer converting down the funnel, and they would say we don’t do that analysis,” Dailey said. “They often just left it on the cutting room floor.”

As for whether Demand Sage can perform this kind of analysis across different industries, Cipolla added, “Because the data is coming from a really opinionated API, typical data science tasks like anomaly detection and basic predictions should work for any industry.”

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Aug
01

DoorDash CEO Tony Xu to deliver startup lessons at Disrupt SF

“It’s an open secret that every company is on fire,” says Kintaba co-founder John Egan. “At any given moment something is going horribly wrong in a way that it has never gone wrong before.” Code failure downtimes, server outages and hack attacks plague engineering teams. Yet the tools for waking up the right employees, assembling a team to fix the problem and doing a post-mortem to assess how to prevent it from happening again can be as chaotic as the crisis itself.

Text messages, Slack channels, task managers and Google Docs aren’t sufficient for actually learning from mistakes. Alerting systems like PagerDuty focus on the rapid response, but not the educational process in the aftermath. Finally, there’s a more holistic solution to incident response with today’s launch of Kintaba.

The Kintaba team experienced these pains firsthand while working at Facebook after Egan and Zac Morris’ Y Combinator-backed data transfer startup Caffeinated Mind was acqui-hired in 2012. Years later, when they tried to build a blockchain startup and the whole stack was constantly in flames, they longed for a better incident alert tool. So they built one themselves and named it after the Japanese art of Kintsugi, where gold is used to fill in cracked pottery, “which teaches us to embrace the imperfect and to value the repaired,” Egan says.

With today’s launch, Kintaba offers a clear dashboard where everyone in the company can see what major problems have cropped up, plus who’s responding and how. Kintaba’s live activity log and collaboration space for responders let them debate and analyze their mitigation moves. It integrates with Slack, and lets team members subscribe to different levels of alerts or search through issues with categorized hashtags.

“The ability to turn catastrophes into opportunities is one of the biggest differentiating factors between successful and unsuccessful teams and companies,” says Egan. That’s why Kintaba doesn’t stop when your outage does.

Kintaba Founders (from left): John Egan, Zac Morris and Cole Potrocky

As the fire gets contained, Kintaba provides a rich text editor connected to its dashboard for quickly constructing a post-mortem of what went wrong, why, what fixes were tried, what worked and how to safeguard systems for the future. Its automated scheduling assistant helps teams plan meetings to internalize the post-mortem.

Kintaba’s well-pedigreed team and their approach to an unsexy but critical software-as-a-service attracted $2.25 million in funding led by New York’s FirstMark Capital.

“All these features add up to Kintaba taking away all the annoying administrative overhead and organization that comes with running a successful modern incident management practice,” says Egan, “so you can focus on fixing the big issues and learning from the experience.”

Egan, Morris and Cole Potrocky met while working at Facebook, which is known for spawning other enterprise productivity startups based on its top-notch internal tools. Facebook co-founder Dustin Moskovitz built a task management system to reduce how many meetings he had to hold, then left to turn that into Asana, which filed to go public this week.

The trio had been working on internal communication and engineering tools as well as the procedures for employing them. “We saw firsthand working at companies like Facebook how powerful those practices can be and wanted to make them easier for anyone to implement without having to stitch a bunch of tools together,” Egan tells me. He stuck around to co-found Facebook’s enterprise collaboration suite Workplace while Potrocky built engineering architecture there and Morris became a mobile security lead at Uber.

Like many blockchain projects, Kintaba’s predecessor, crypto collectibles wallet Vault, proved an engineering nightmare without clear product market fit. So the team ditched it and pivoted to build out the internal alerting tool they’d been tinkering with. That origin story sounds a lot like Slack’s, which began as a gaming company that pivoted to turn its internal chat tool into a business.

So what’s the difference between Kintaba and just using Slack and email or a monitoring tool like PagerDuty, Splunk’s VictorOps or Atlassian’s OpsGenie? Here’s how Egan breaks a site downtime situation handled with Kintaba:

You’re on call and your pager is blowing up because all your servers have stopped serving data. You’re overwhelmed and the root cause could be any of the multitude of systems sending you alerts. With Kintaba, you aren’t left to fend for yourself. You declare an incident with high severity and the system creates a collaborative space that automatically adds an experienced IMOC (incident manager on call) along with other relevant on calls. Kintaba also posts in a company-wide incident Slack channel. Now you can work together to solve the problem right inside the incident’s collaborative space or in Slack while simultaneously keeping stakeholders updated by directing them to the Kintaba incident page instead of sending out update emails. Interested parties can get quick info from the stickied comments and #tags. Once the incident is resolved, Kintaba helps you write a postmortem of what went wrong, how it was fixed, and what will be done to prevent it from happening. Kintaba then automatically distributes the postmortem and sets up an incident review on your calendar.

Essentially, instead of having one employee panicking about what to do until the team struggles to coordinate across a bunch of fragmented messaging threads, a smoother incident reporting process and all the discussion happens in Kintaba. And if there’s a security breach that a non-engineer notices, they can launch a Kintaba alert and assemble the legal and PR team to help, too.

Alternatively, Egan describes the downtime fiascoes he’d experience without Kintaba like this:

The on call has to start waking up their management chain to try and figure out who needs to be involved. The team maybe throws a Slack channel together but since there’s no common high severity incident management system and so many teams are affected by the downtime, other teams are also throwing slack channels together, email threads are happening all over the place, and multiple groups of people are trying to solve the problem at once. Engineers begin stepping all over each other and sales teams start emailing managers demanding to know what’s happening. Once the problem is solved, no one thinks to write up a postmortem and even if they do it only gets distributed to a few people and isn’t saved outside that email chain. Managers blame each other and point fingers at people instead of taking a level headed approach to reviewing the process that led to the failure. In short: panic, thrash, and poor communication.

While monitoring-apps like PagerDuty can do a good job of indicating there’s a problem, they’re weaker at the collaborative resolution and post-mortem process, and designed just for engineers rather than everyone, like Kintaba. Egan says, “It’s kind of like comparing the difference between the warning lights on a piece of machinery and the big red emergency button on a factory floor. We’re the big red button . . . That also means you don’t have to rip out PagerDuty to use Kintaba,” since it can be the trigger that starts the Kintaba flow.

Still, Kintaba will have to prove that it’s so much better than a shared Google Doc, an adequate replacement for monitoring solutions or a necessary add-on that companies should pay $12 per user per month. PagerDuty’s deeper technical focus helped it go public a year ago, though it has fallen about 60% since to a market cap of $1.75 billion. Still, customers like Dropbox, Zoom and Vodafone rely on its SMS incident alerts, while Kintaba’s integration with Slack might not be enough to rouse coders from their slumber when something catches fire.

If Kintaba can succeed in incident resolution with today’s launch, the four-person team sees adjacent markets in task prioritization, knowledge sharing, observability and team collaboration, though those would pit it against some massive rivals. If it can’t, perhaps Slack or Microsoft Teams could be suitable soft landings for Kintaba, bringing more structured systems for dealing with major screw-ups to their communication platforms.

When asked why he wanted to build a legacy atop software that might seem a bit boring on the surface, Egan concluded that, “Companies using Kintaba should be learning faster than their competitors . . . Everyone deserves to work within a culture that grows stronger through failure.”

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Mar
19

This 3D-printing startup helps orthodontists straighten your teeth

Are you a student enthralled by robots and the AI that powers them? Do you live within striking distance of UC Berkeley? Ready to learn from the greatest minds and makers in the field? Then we want you at TC Sessions: Robotics + AI 2020 on March 3 at UC Berkeley’s Zellerbach Hall.

We’re investing in the next generation of makers by making our day-long conference super-affordable. Buy your $50 student pass right here.

If you’re not familiar with our Robotics/AI session, listen up. It’s a full day of interviews, panel discussions, Q&As, workshops and demos. And it’s all dedicated to these two world-changing technologies. Last year, we hosted 1,500 attendees. We’re talking the industries’ top leaders, founders, investors, technologists, executives and engineering students.

As a student, you’ll rub elbows with the greats. You’ll have ample time to learn and network. Who knows? You might impress the pants off the right person and land an internship, a prime job — or find the co-founder of your dreams.

If networking feels like a chore, never fear. CrunchMatch, our free business matching platform, removes the pain and adds efficiency. Win-win!

You’ll hear from our great slate of speakers, including VCs Eric Migicovsky (Y Combinator), Kelly Chen (DCVC) and Dror Berman (Innovation Endeavors). You’ll also hear from plenty of founders, including experts focused on agricultural, construction and human assistive robotics. And that’s just for starters.

Here are a few more examples of presentations you’ll find in our program agenda:

Fostering the Next Generation of Robotics Startups: Robotics and AI are the future of many or most industries, but the barrier of entry is still difficult to surmount for many startups. Joshua Wilson (co-founder & CEO, Freedom Robotics) and Scott Phoenix (co-founder & CEO, Vicarious) will discuss the challenges of serving robotics startups and companies that require robotics labor, from bootstrapped startups to large-scale enterprises.Live Demo from the Stanford Robotics Club: It just wouldn’t be a robotics conference without the opportunity to see robots in action. We’ve got you covered.Pitch Night Pitch-off Finalists: Early-stage companies, hand-picked by TechCrunch editors, will take the stage and have five minutes to present their wares.Saving Humanity from AI: UC Berkeley’s Stuart Russell argues in his acclaimed new book, “Human Compatible,” that AI will doom humanity unless technologists fundamentally reform how they build AI algorithms.

TC Sessions: Robotics + AI 2020 takes place on March 3. We’re making the event affordable for students, because there’s no future tech without them. Invest $50 in your tomorrow — buy your student ticket today, and join us in Berkeley!

Is your company interested in sponsoring or exhibiting at TC Sessions: Robotics + AI 2020? Contact our sponsorship sales team by filling out this form.

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Feb
10

Thought Leaders in Cyber Security: Brett Williams, COO of IronNet (Part 1) - Sramana Mitra

This discussion focuses on behavior-based network traffic analysis. Sramana Mitra: Let’s start by introducing our audience to yourself as well as to IronNet. Brett Williams: I’m a Co-Founder and the...

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Original author: Sramana Mitra

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Feb
10

Cloud Stocks: Twilio Steps up Investment in 2020 to Preserve Growth Momentum - Sramana Mitra

Twilio (NYSE: TWLO) is a leading player in the Communications PaaS segment that made it to our list of Top 20 Cloud Stocks for 2020. It recently reported a strong quarter that beat estimates but...

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Original author: Sramana_Mitra

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Feb
10

Starling Bank raises another £60M from existing backers

Starling Bank, the U.K.-based challenger bank founded by banking veteran Anne Boden, has raised another £60 million from its existing investors Merian Global Investors and Harry McPike’s JTC.

The investment brings the total raised by Starling to £323 million and follows two funding rounds of £105 million in aggregate led by Merian in 2019.

Boden told the FT that the bank’s two main backers — who own the majority of shares — are committed to further funding later this year. Starling’s new valuation is unknown.

Meanwhile, Starling is disclosing that customers have opened 1.25 million accounts (including consumer and business accounts) since its banking app launched in May 2017. It now holds more than £1.25 billion in deposits, which is an important metric for any lending bank.

Starling says the new funding will support continued expansion, including a European launch; however, its plans were delayed because of Brexit uncertainty.

The bank has 800 employees across offices in London, Southampton, Cardiff and Dublin. As part of this raise, it says it will issue more shares to employees. According to the FT report, Starling staff and management will own 20 percent of the bank following the new funding. Merian and JTC control the rest.

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Feb
10

Thought Leaders in Financial Technology: FundThrough CEO Steven Uster (Part 1) - Sramana Mitra

This interview talks about the FinTech trends in invoice factoring. Sramana Mitra: Let’s start by introducing our audience to yourself as well as FundThrough. Steven Uster: I’m the Co-Founder and CEO...

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Original author: Sramana Mitra

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Feb
10

Catching Up On Readings: Netflix at Oscars 2020 - Sramana Mitra

This feature from TechCrunch covers the journey of Netflix at the Oscars 2020 where it won just two Oscars against 24 nominations. For this week’s posts, click on the paragraph links. Tech...

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Original author: jyotsna popuri

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Feb
09

After $479M round on $12.4B valuation, Snowflake CEO says IPO is next step

Snowflake, the cloud-based data warehouse company, doesn’t tend to do small rounds. On Friday night, word leaked out about its latest mega round. This one was for $479 million on a $12.4 billion valuation. That’s triple the company’s previous $3.9 billion valuation from October 2018, and CEO Frank Slootman suggested that the company’s next finance event is likely an IPO.

Dragoneer Investment Group led the round along with new investor Salesforce Ventures. Existing Snowflake investors Altimeter Capital, ICONIQ Capital, Madrona Venture Group, Redpoint Ventures, Sequoia and Sutter Hill Ventures also participated. The new round brings the total raised to over $1.4 billion, according to PitchBook data.

All of this investment begs the question when this company goes public. As you might expect, Slootman is keeping his cards close to the vest, but he acknowledges that is the next logical step for his organization.

“I think the earliest that we could actually pull that trigger is probably early- to mid-summer timeframe. But whether we do that or not is a totally different question because we’re not in a hurry, and we’re not getting pressure from investors,” he said.

He grants that the pressure is about allowing employees to get their equity out of the company, which can only happen once the company goes public. “The only reason that there’s always a sense of pressure around this is because it’s important for employees, and I’m not minimizing that at all. That’s a legitimate thing. So, you know, it’s certainly a possibility in 2020 but it’s also a possibility the year thereafter. I don’t see it happening any later than that,” he said.

The company’s most recent round prior to this was $450 million in October 2018. Slootman says that he absolutely didn’t need the money, but the capital was there, and the chance to forge a relationship with Salesforce also was key in their thinking in taking this funding.

“At a high level, the relationship is really about allowing Salesforce data to be easily accessed inside Snowflake. Not that it’s impossible to do that today,  because there are lots of tools that will help you do that. But this relationship is about making that seamless and frictionless, which we find is really important,” Slootman said.

Snowflake now has relationships with AWS, Microsoft Azure and Google Cloud Platform, and has a broad content strategy to have as much quality data (like Salesforce) on the platform. Slootman says that this helps induce a network effect, while helping move data easily between major cloud platforms, a big concern as more companies adopt a multiple cloud vendor strategy.

“One of the key distinguishing architectural aspects of Snowflake is that once you’re on our platform, it’s extremely easy to exchange data with other Snowflake users. That’s one of the key architectural underpinnings. So content strategy induces network effect which in turn causes more people, more data to land on the platform, and that serves our business model,” he said.

Slootman says investors want to be part of his company because it’s solving some real data interchange pain points in the cloud market, and the company’s growth shows that in spite of its size, that continues to attract new customers at high rate.

“We just closed off our previous fiscal year which ended last Friday, and our revenue grew at 174%. For the scale that we are, this by far the fastest growing company out there…. So, that’s not your average asset,” he said.

The company has 3,400 active customers, which he defines as customers who were actively using the platform in the last month. He says that they have added 500 new customers alone in the last quarter.

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Feb
09

Colors: Basque Hermitage, San Juan de Gaztelugatxe II - Sramana Mitra

I’m publishing this series on LinkedIn called Colors to explore a topic that I care deeply about: the Renaissance Mind. I am just as passionate about entrepreneurship, technology, and business, as I...

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Original author: Sramana Mitra

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Feb
08

‘A city where you can pilot almost anything and figure out if it’s going to work’

Scott Bade Contributor
Scott Bade is a former speechwriter for Mike Bloomberg and co-author of "More Human: Designing a World Where People Come First."

As founding executive director of Tech:NYC, Julie Samuels is one of the state’s most prominent advocates for the tech sector, both in Albany and at City Hall.

Samuels, a lawyer by training, came to New York after serving as executive director of Engine, a San Francisco organization on which Tech:NYC is modeled. In an interview with TechCrunch, Samuels spoke about several issues, including her rationale for why, despite the controversy over Amazon’s decision not to build its second headquarters in Queens, the area is well-positioned for the next wave of tech innovation.

TechCrunch: What is the need for organizations like Tech:NYC and Engine?

Julie Samuels: As the tech industry matures, it is incredibly important that there are organizations [that] represent these companies politically, civically, making sure they have a seat at the table with so many public policy debates. There is no shortage of public policy debates surrounding technology.

It is also incredibly important that there are organizations who are talking from the viewpoint of smaller companies and startups. There are a lot of organizations that represent the biggest and most well-known companies, including Tech:NYC. But [we] also have hundreds of members who are small and growing startups. We think that diversity of the ecosystem is what really sets the technology sector apart and it is something we want to foster and celebrate.

Who are your members, then?

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Feb
08

Best of Bootstrapping: Bootstrapping A Virtual Company To $25M - Sramana Mitra

I am a huge fan of virtual companies, and here is one that has been built with excellent execution from London by a Russian entrepreneur, Percona CEO Peter Zaitsev. Sramana Mitra: Let’s start at the...

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Original author: Sramana Mitra

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Feb
08

Facebook has acquired Scape Technologies, the London-based computer vision startup

Scape Technologies, the London-based computer vision startup working on location accuracy beyond the capabilities of GPS, has been acquired by Facebook, according to a regulatory filing.

Full terms of the deal remain as yet unknown, although a Companies House update reveals that Facebook Inc. now has majority control of the company (more than 75%). However by looking at other filings, including a recent share issue, I understand the price could be about $40 million.

Further filings show that Scape’s previous venture capital representatives have resigned from the Scape board and are replaced by two Facebook executives.

Scape’s backers included Entrepreneur First (EF) — the startup is an alumni of the company builder program — along with LocalGlobe, Mosaic Ventures, and Fly Ventures.

Noteworthy is that EF and Fly Ventures have both already had a joint exit to Facebook of sorts, when Bloomsbury AI was acqui-hired by the social networking behemoth (a story that I also broke).

Founded in 2017, Scape Technologies was developing a “Visual Positioning Service” based on computer vision which lets developers build apps that require location accuracy far beyond the capabilities of GPS alone.

The technology initially targeted augmented reality apps, but also had the potential to be used to power applications in mobility, logistics and robotics. More broadly, Scape wanted to enable any machine equipped with a camera to understand its surroundings.

Scape CEO and co-founder Edward Miller previously described Scape’s “Vision Engine” as a large-scale mapping pipeline that creates 3D maps from ordinary images and video. Camera devices can then query the Vision Engine using the startup’s “Visual Positioning Service” API to determine their exact location with far greater precision than GPS can ever provide. The Visual Positioning Service was made available to select developers via Scape’s SDK.

Meanwhile the acquisition by Facebook, no matter what form it takes, looks like a good fit given the U.S. company’s investment in next generation platforms, including VR and AR. It is also another — perhaps, worrying — example of U.S. tech companies hoovering up U.K. machine learning and AI talent early.

Update: A Facebook spokesperson provided the following statement: “We acquire smaller tech companies from time to time. We don’t always discuss our plans.”

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Feb
08

Thought Leaders in Cloud Computing: Actifio CEO Ash Ashutosh (Part 5) - Sramana Mitra

Ash Ashutosh: There’s more on the realty consumer side. This is more around what you do on your financial day-to-day mortgages but still in conjunction with the bank that I talked about. One mission...

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Original author: Sramana Mitra

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Feb
08

ServiceNow’s Growth Mantras: AI, Verticals - Sramana Mitra

Under the leadership of its newest CEO Bill McDermott, ServiceNow (NYSE: NOW) recently reported a stellar quarter. The company outperformed market expectations for the quarter on all fronts, sending...

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Original author: MitraSramana

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Apr
29

Justice for Yuji Naka | GB Decides

Donny Hall, the chief executive and co-founder of the used car certification service SureSale, knows used cars. The serial entrepreneur built and sold a previous business, CarSure, which was an insurance plan for vehicle repairs.

After selling that business in 2017 to Innovative Aftermarket Systems, Hall decided that his next venture would be to take on the used car industry’s dominant source for historical information about a vehicle — Carfax .

His Santa Monica, Calif.-based SureSale has raised $7 million in financing from the LA-based investment firm Upfront Ventures to create a national used car certification service that dealers and car shoppers around the country can turn to for an unbiased assessment of a vehicle and its problems, according to Hall.

“Sixty-six percent of consumers want to buy cars that are certified and only seven percent do,” says Hall. “Independents don’t have any national [certification] program and dealers don’t have national programs.”

The company integrates background checks, insurance and provides a limited warranty and five-day exchange options for vehicles assessed through its program.

To launch the business, Hall partnered with Jeffrey Schwartz, the co-founder of the used car marketplace and review platform Autobytel.

Used car dealerships are hurting in the e-commerce age just like other traditional retailers. SureSale is betting that its value-added services and better reporting standards can give dealers a competitive advantage versus online services like Carmax.

Dealerships pay for the service, but in return their customers get a full inspection, a title and a background check alongside the five-month warranty.

“Even though there have been a number of recent startups that have seen massive exits in this category like Carvana ($13BN market cap) and Carmax ($16BN market cap), given that each company has less than 2% market share, any market this large is always ripe for continued efficiency gains,” wrote Upfront Ventures partner and SureSale director, Kobie Fuller, in a blog post.

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Feb
07

3 unicorn takeaways from the Casper and One Medical IPOs

With Casper’s public offering earlier this week, we’ve closed the book on the first two venture-backed IPOs of note in 2020. Casper, joined by One Medical, carried over $870 million of private capital, venture and otherwise, across the finish line.

Even though each IPO featured an unprofitable tech-enabled business that had posted sub-30% growth and gross margins under 50% (far more, in the case of One Medical), they wound up miles apart in terms of their market reception and resulting valuation, measured in revenue multiples terms.

So what can we learn from the two IPOs as we look ahead to other unicorn debuts in 2020? A great number of things that help set the stage for the rest of 2020’s IPO class. Let’s discuss three observations that stick out the most.

Tech-enabled businesses can secure high-flying valuations in public offerings

The surprise of the year so far has been the public market’s reaction to One Medical’s IPO. The company, today worth $3.13 billion, is trading at 11.3x times the top end of its 2019 revenue projections (the company has yet to close the books on its Q4 accounting).

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Feb
07

February 13 – 472nd 1Mby1M Mentoring Roundtable for Entrepreneurs - Sramana Mitra

Entrepreneurs are invited to the 472nd FREE online 1Mby1M mentoring roundtable on Thursday, February 13, 2020, at 8 a.m. PST/11 a.m. EST/5 p.m. CET/9:30 p.m. India IST. If you are a serious...

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Original author: Maureen Kelly

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Feb
07

Our.News fights misinformation with a ‘nutrition label’ for news stories

A startup called Our.News is working to make its users smarter consumers of the news.

In other words, it’s confronting some big, seemingly intractable problems. For one thing, there’s a tremendous amount of disinformation online — as Our.News founder and CEO Richard Zack put it, “Unfortunately, you have thousands of people all over the world who intentionally make it hard for people to know what’s true.

At the same time, many people don’t trust the media and don’t trust fact-checkers. (Also, facts don’t actually change people’s minds.)

All of this adds up to an environment where no one is quite sure what to believe, or they simply accept the stories that reinforce their existing beliefs.

“You can’t fight misinformation by telling people what’s true, because they don’t believe it,” Zack said. His solution? Something that he described as a “nutrition label for news.” “It doesn’t tell you it’s good or bad, it doesn’t say buy it or don’t buy it, it leaves the buying decision in the hands of the consumers.”

In some ways, the approach is similar to NewsGuard, which rates online news sources. In fact, Zack said, “We really support NewsGuard and what they’re doing.” Still, he suggested that evaluating publishers isn’t enough, which is why Our.News provides labels for individual articles — he compared it to “trying to choose between Lucky Charms and Cheerios,” where it’s not enough to know that both cereals are manufactured by General Mills.

To put it another way, you don’t want to just accept what a publisher tells you. Even the best publisher can make mistakes, so you also want to understand what claims they’re making, what their sources are and whether those claims have been vetted by independent fact checkers.

An Our.News label is accessible through Firefox and Chrome browser extensions, as well as an iOS app. The label includes publisher descriptions from Freedom Forum, along with bias ratings from AllSides; information about an article’s sources, author and editor; fact-checking information from sources like PolitiFact, Snopes and FactCheck.org; labels like “clickbait” or “satire”; and user ratings and reviews.

Zack said Our.News has created around 600,000 labels to date, generating about 5,000 new ones every day. Of course, there’s still a good chance that the article you’re reading won’t have a label, but if that’s the case, Our.News might still be able to show you publisher information, and users can also click a button to add the article into the system.

“We’ve intentionally combined objective facts [about the article] with subjective views,” Zack added. “We think that’s the solution … If you go purely subjective, then it’s just a popularity contest. If it’s just objective, then who’s the determiner of truth? We’re mixing the two together, condensing it all into the nutrition label, so news consumers can more quickly make their own decision.”

He also acknowledged that different users will treat the labels in different ways. Some, for example, may still not trust the fact-checkers, but even then, Zack argued there’s still value in giving them a way to provide feedback to publishers in a way that’s more structured than a regular comments section.

He also noted that user ratings will be weighted based on their interaction with the label — if you skip the publisher information, skip the sources and skip the fact-checking, then your rating won’t be worth as much as someone else who carefully considered all of that information.

In addition to its current, consumer-focused distribution, Our.News just launched a way for publishers and other businesses to incorporate its labels. Zack said this could be used by “news publishers, content aggregators, social networks, anywhere that’s displaying articles.” (This is also how he plans to make money.)

The hope is that Our.News partners can use these labels to make readers more comfortable trusting their content, and to collect feedback from those readers. There will be some degree of customization available, but Zack emphasized that publishers won’t be able to change the actual content of the labels.

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