May
13

Substack acquires team from community consulting startup People & Company

New media poster child Substack announced today that they’ve added a small community-building consultancy team to its ranks, acquiring the Brooklyn-based startup People & Company.

The small firm has been working with clients to build up their community efforts, and its team will now be tasked with building up some of the newsletter company’s upstart efforts for writers in its network.

In a blog post, Substack co-founder Hamish McKenzie said that the company had previously used the People & Co. team to consult on their fellowship and mentorship programs and that members of the team would now be working on a variety of new efforts, from scaling programs to help writers with legal support and health insurance to community-guided projects like workshops and meetups to help crowdsource insights.

“These people are the best in the world at what they do, and now they’re not only working for Substack, but they’re also working for you,” McKenzie wrote.

Beyond Substack, previous partners with People & Company include Porsche AG, Nike and Surfrider.

Substack has been blazing ahead in recent months, adding new partners and raising cash as it aims to bring on more and more subscribers to its network. The firm shared back in late March that it had raised a $65 million round at a reported valuation around $650 million, according to earlier reporting by Axios.

 

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May
13

Even startups on tight budgets can maximize their marketing impact

Dominik Angerer Contributor
Dominik Angerer is CEO and co-founder of headless CMS Storyblok, which provides best practice guidance for startups on how to build a sustainable approach to marketing their content.

Search engine optimization, PR, paid marketing, emails, social — marketing and communications is crowded with techniques, channels, solutions and acronyms. It’s little wonder that many startups strapped for time and money find defining and executing a sustainable marketing campaign a daunting prospect.

The sheer number of options makes it difficult to determine an effective approach, and my view is that this complexity often obscures the obvious answer: A startup’s best marketing asset is its story. The knowledge and expertise of its team, together with the why and the how of its offering provides the most compelling content.

Leveraging this material with best practice techniques enables any startup, no matter how limited its budget, to run an effective marketing campaign.

Many startups make the mistake of choosing systems and employing procedures to solve the immediate needs of the department that requires them.

I know this approach works, because this is exactly what I did with my co-founder Alex Feiglstorfer when we set up Storyblok. To be clear, we are developers not marketers. However, our previous experience building CMS systems taught us that the main driver of organic engagement for most businesses was customer conversations around content.

Specifically, sharing experiences, expertise and what we learned. We had committed nearly all of our available cash to developing our product, so we knew that the only way to market Storyblok was to do it all ourselves.

As a result, we focused solely on problem-solving content. This took the form of tutorials on web development and opinion pieces on headless CMS and other topics within our areas of expertise. The trick was that what we published wasn’t made just for marketing, it was based on our own internal documentation of problems we encountered as we developed our product. In essence, we were “learning in public.” Through this approach we were able to acquire thousands of customers in our first year.

Retelling this story isn’t to blow my own trumpet, it’s to make clear that you don’t have to be a marketer by training or commit a huge amount of time and resources to successfully market your startup. So, how do you get started?

Getting your structure and technology right

Although there’s no one-size-fits-all approach to how you organize your startup’s marketing function, there are some basic principles that apply in nearly every situation. A recent survey of 400+ executives from CMS Wire helpfully identified the following factors as the “top digital customer experience challenges” for businesses:

Limited budget/resources.Siloed systems and fragmented customer data.Limited cross-department alignment/collaboration.Outdated/limited technology, operations or processes.Lack of in-house expertise/skills.

Challenges two to four are the pitfalls that we can focus on avoiding. They are directly related to how a startup produces, organizes and distributes its content.

With regard to the siloing of systems and fragmentation of customer data, the overriding goal is to ensure all your systems are integrated and speak to one another. In practice, this means that the data gathered in different departments — whether its feedback from sales, engagement on your website, customer service responses or product development information — is collected in a uniform and methodical manner and is readily accessible across the business.

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May
13

Alba Orbital’s mission to image the Earth every 15 minutes brings in $3.4M seed round

Orbital imagery is in demand, and if you think having daily images of everywhere on Earth is going to be enough in a few years, you need a lesson in ambition. Alba Orbital is here to provide it with its intention to provide Earth observation at intervals of 15 minutes rather than hours or days — and it just raised $3.4 million to get its next set of satellites into orbit.

Alba attracted our attention at Y Combinator’s latest demo day; I was impressed with the startup’s accomplishment of already having six satellites in orbit, which is more than most companies with space ambition ever get. But it’s only the start for the company, which will need hundreds more to begin to offer its planned high-frequency imagery.

The Scottish company has spent the last few years in prep and R&D, pursuing the goal, which some must have thought laughable, of creating a solar-powered Earth observation satellite that weighs in at less than one kilogram. The joke’s on the skeptics, however — Alba has launched a proof of concept and is ready to send the real thing up as well.

Little more than a flying camera with a minimum of storage, communication, power and movement, the sub-kilogram Unicorn-2 is about the size of a soda can, with paperback-size solar panel wings, and costs in the neighborhood of $10,000. It should be able to capture up to 10-meter resolution, good enough to see things like buildings, ships, crops, even planes.

Image Credits: Alba Orbital

“People thought we were idiots. Now they’re taking it seriously,” said Tom Walkinshaw, founder and CEO of Alba. “They can see it for what it is: a unique platform for capturing data sets.”

Indeed, although the idea of daily orbital imagery like Planet’s once seemed excessive, in some situations it’s quite clearly not enough.

“The California case is probably wildfires,” said Walkinshaw (and it always helps to have a California case). “Having an image once a day of a wildfire is a bit like having a chocolate teapot… not very useful. And natural disasters like hurricanes, flooding is a big one, transportation as well.”

Walkinshaw noted that they company was bootstrapped and profitable before taking on the task of launching dozens more satellites, something the seed round will enable.

“It gets these birds in the air, gets them finished and shipped out,” he said. “Then we just need to crank up the production rate.”

Image Credits: Alba Orbital

When I talked to Walkinshaw via video call, 10 or so completed satellites in their launch shells were sitting on a rack behind him in the clean room, and more are in the process of assembly. Aiding in the scaling effort is new investor James Park, founder and CEO of Fitbit — definitely someone who knows a little bit about bringing hardware to market.

Interestingly, the next batch to go to orbit (perhaps as soon as in a month or two, depending on the machinations of the launch provider) will be focusing on nighttime imagery, an area Walkinshaw suggested was undervalued. But as orbital thermal imaging startup Satellite Vu has shown, there’s immense appetite for things like energy and activity monitoring, and nighttime observation is a big part of that.

The seed round will get the next few rounds of satellites into space, and after that Alba will be working on scaling manufacturing to produce hundreds more. Once those start going up it can demonstrate the high-cadence imaging it is aiming to produce — for now it’s impossible to do so, though Alba already has customers lined up to buy the imagery it does get.

The round was led by Metaplanet Holdings, with participation by Y Combinator, Liquid2, Soma, Uncommon Denominator, Zillionize and numerous angels.

As for competition, Walkinshaw welcomes it, but feels secure that he and his company have more time and work invested in this class of satellite than anyone in the world — a major obstacle for anyone who wants to do battle. It’s more likely companies will, as Alba has done, pursue a distinct product complementary to those already or in the process of being offered.

“Space is a good place to be right now,” he concluded.

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May
13

Advanced tax strategies for startup founders

Peyton Carr Contributor
Peyton Carr is a financial advisor to founders, entrepreneurs and their families, helping them with planning and investing. He is a managing director of Keystone Global Partners.

As an entrepreneur, you started your business to create value, both in what you deliver to your customers and what you build for yourself. You have a lot going on, but if building personal wealth matters to you, the assets you’re creating deserve your attention.

You can implement numerous advanced planning strategies to minimize capital gains tax, reduce future estate tax and increase asset protection from creditors and lawsuits. Capital gains tax can reduce your gains by up to 35%, and estate taxes can cost up to 50% on assets you leave to your heirs. Careful planning can minimize your exposure and actually save you millions.

Smart founders and early employees should closely examine their equity ownership, even in the early stages of their company’s life cycle. Different strategies should be used at different times and for different reasons. The following are a few key considerations when determining what, if any, advanced strategies you might consider:

Your company’s life cycle — early, mid or late stage.The value of your shares — what they are worth now, what you expect them to be worth in the future and when.Your own circumstances and goals — what you need now, and what you may need in the future.

Some additional items to consider include issues related to qualified small business stock (QSBS), gift and estate taxes, state and local income taxes, liquidity, asset protection, and whether you and your family will retain control and manage the assets over time.

Smart founders and early employees should closely examine their equity ownership, even in the early stages of their company’s life cycle.

Here are some advanced equity planning strategies that you can implement at different stages of your company life cycle to reduce tax and optimize wealth for you and your family.

Irrevocable nongrantor trust

QSBS allows you to exclude tax on $10 million of capital gains (tax of up to 35%) upon an exit/sale. This is a benefit every individual and some trusts have. There is significant opportunity to multiply the QSBS tax exclusion well beyond $10 million.

The founder can gift QSBS eligible stock to an irrevocable nongrantor trust, let’s say for the benefit of a child, so that the trust will qualify for its own $10 million exclusion. The founder owning the shares would be the grantor in this case. Typically, these trusts are set up for children or unborn children. It is important to note that the founder/grantor will have to gift the shares to accomplish this, because gifted shares will retain the QSBS eligibility. If the shares are sold into the trust, the shares lose QSBS status.

Image Credits: Peyton Carr

In addition to the savings on federal taxes, founders may also save on state taxes. State tax can be avoided if the trust is structured properly and set up in a tax-exempt state like Delaware or Nevada. Otherwise, even if the trust is subject to state tax, some states, like New York, conform and follow the federal tax treatment of the QSBS rules, while others, like California, do not. For example, if you are a New York state resident, you will also avoid the 8.82% state tax, which amounts to another $2.6 million in tax savings if applied to the example above.

This brings the total tax savings to almost $10 million, which is material in the context of a $40 million gain. Notably, California does not conform, but California residents can still capture the state tax savings if their trust is structured properly and in a state like Delaware or Nevada.

Currently, each person has a limited lifetime gift tax exemption, and any gifted amount beyond this will generate up to a 40% gift tax that has to be paid. Because of this, there is a trade-off between gifting the shares early while the company valuation is low and using less of your gift tax exemption versus gifting the shares later and using more of the lifetime gift exemption.

The reason to wait is that it takes time, energy and money to set up these trusts, so ideally, you are using your lifetime gift exemption and trust creation costs to capture a benefit that will be realized. However, not every company has a successful exit, so it is sometimes better to wait until there is a certain degree of confidence that the benefit will be realized.

Parent-seeded trust

One way for the founder to plan for future generations while minimizing estate taxes and high state taxes is through a parent-seeded trust. This trust is created by the founder’s parents, with the founder as the beneficiary. Then the founder can sell the shares to this trust — it doesn’t involve the use of any lifetime gift exemption and eliminates any gift tax, but it also disqualifies the ability to claim QSBS.

The benefit is that all the future appreciation of the asset is transferred out of the founder’s and the parent’s estate and is not subject to potential estate taxes in the future. The trust can be located in a tax-exempt state such as Delaware or Nevada to also eliminate home state-level taxes. This can translate up to 10% in state-level tax savings. The trustee, an individual selected by the founder, can make distributions to the founder as a beneficiary if desired.

Further, this trust can be used for the benefit of multiple generations. Distributions can be made at the discretion of the trustee, and this skips the estate tax liability as assets are passed from generation to generation.

Grantor retained annuity trust (GRAT)

This strategy enables the founder to minimize their estate tax exposure by transferring wealth outside of their estate, specifically without using any lifetime gift exemption or being subject to gift tax. It’s particularly helpful when an individual has used up all their lifetime gift tax exemption. This is a powerful strategy for very large “unicorn” positions to reduce a founder’s future gift/estate tax exposure.

For the GRAT, the founder (grantor) transfers assets into the GRAT and gets back a stream of annuity payments. The IRS 7520 rate, currently very low, is a factor in calculating these annuity payments. If the assets transferred into the trust grow faster than the IRS 7520 rate, there will be an excess remainder amount in GRAT after all the annuity payments are paid back to the founder (grantor).

This remainder amount will be excluded from the founder’s estate and can transfer to beneficiaries or remain in the trust estate tax-free. Over time, this remainder amount can be multiples of the initial contributed value. If you have company stock that you expect will pop in value, it can be very beneficial to transfer those shares into a GRAT and have the pop occur inside the trust.

This way, you can transfer all the upside gift and estate tax-free out of your estate and to your beneficiaries. Additionally, because this trust is structured as a grantor trust, the founder can pay the taxes incurred by the trust, making the strategy even more powerful.

One thing to note is that the grantor must survive the GRAT’s term for the strategy to work. If the grantor dies before the end of the term, the strategy unravels and some or all the assets remain in his estate as if the strategy never existed.

Intentionally defective grantor trust (IDGT)

This is similar to the GRAT in that it also enables the founder to minimize their estate tax exposure by transferring wealth outside of their estate, but has some key differences. The grantor must “seed” the trust by gifting 10% of the asset value intended to be transferred, so this approach requires the use of some lifetime gift exemption or gift tax.

The remaining 90% of the value to be transferred is sold to the trust in exchange for a promissory note. This sale is not taxable for income tax or QSBS purposes. The main benefits are that instead of receiving annuity payments back, which requires larger payments, the grantor transfers assets into the trust and can receive an interest-only note. The payments received are far lower because it is interest-only (rather than an annuity).

Image Credits: Peyton Carr

Another key distinction is that the IDGT strategy has more flexibility than the GRAT and can be generation-skipping.

If the goal is to avoid generation-skipping transfer tax (GSTT), the IDGT is superior to the GRAT, because assets are measured for GSTT purposes when they are contributed to the trust prior to appreciation rather than being measured at the end of the term for a GRAT after the assets have appreciated.

The bottom line

Depending on a founder’s situation and goals, we may use some combination of the above strategies or others altogether. Many of these strategies are most effective when planning in advance; waiting until after the fact will limit the benefits you can extract.

When considering strategies for protecting wealth and minimizing taxes as it relates to your company stock, there’s a lot to take into account — the above is only a summary. We recommend you seek proper counsel and choose wealth transfer and tax savings strategies based on your unique situation and individual appetite for complexity.

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May
13

Is there a creed in venture capital?

How should venture capitalists and corporate innovators assess Din Djarin, the protagonist of The Mandalorian? He’s introduced as a bounty hunter, a mercenary vocation in the Star Wars mythos that has been reserved primarily for villains.

One of the most interesting aspects of Jon Favreau’s show is how Din Djarin wrestles with the orthodoxy of his Mandalorian beliefs. His insistence on honor makes the character an appealing hero, and his character’s growth is demonstrated by when he chooses to be flexible versus when he holds fast to the rules he believes.

Although “This is the way” emerged as the show’s quotable soundbite, there is another line that’s more relevant to venture capital and corporate innovation: “You’re changing the deal.” Din Djarin uses this phrase to spar with adversaries who try to advance their objectives by disregarding clearly understood agreements.

Enforcement is so unusual in the world of startups that I consider it a mostly dead-end path.

Of course, terms change in venture capital and entrepreneurship all the time, with investors and entrepreneurs finding themselves in Din Djarin’s position.

This challenge is built into the very structure of venture capital fund raising, in which a Series A financing is usually followed by Series B, and then Series C, and each of these transactions frequently adds, subtracts, and modifies terms, changing the deal from the perspective of the startup and existing investors.

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May
13

Software subscriptions are eating the world: Solving billing and cash flow woes simultaneously

Krish Subramanian Contributor
Krish Subramanian is co-founder and CEO of Chargebee, a global leader in subscription billing and revenue management. He began his career as a software engineer at a startup before going on to specialize in indirect purchasing implementations for Fortune 500 customers.

Although recurring revenue businesses have been around for a long time, the trend toward a subscription economy has escalated rapidly in the last few years. IDC expects that by 2022, 53% of all software revenue will be purchased with a subscription model. Even the car subscription market is set to grow by 71% by 2022.

Many types of businesses are looking for ways to earn recurring revenue — and it has gone beyond business-to-consumer companies like Netflix and Dollar Shave Club. Business-to-business companies are also joining in, even those with products that last a long time. For instance, elevator-maker Otis offers Otis ONE, a subscription-connected elevator solution that offers predictive maintenance insights.

Subscription billing options should make it easy to manage all types of subscriptions, including integrating analytics to provide a more complete picture of the subscriptions landscape.

Promising, but there are pitfalls

Subscription business models are attractive, but there are two major pitfalls. At the top of the list is payment. Regardless of company size, there’s an ongoing need to convince customers to sign up long term.

Companies also need to accommodate new payment methods and ensure ongoing compliance with interstate and international tax laws. As a result, the payment process can quickly become painful.

As any company with recurring revenue scales, it becomes increasingly challenging to manage subscriptions, especially with homegrown systems, changing subscription offers and the complexities of converting customers from free trials to paid subscriptions. Subscription billing options should make it easy to manage all types of subscriptions, including integrating analytics to provide a more complete picture of the subscriptions landscape.

Businesses also have to keep in mind that every time they add more product categories or expand into new geographies, they need to tack on extra software code to change their operations and stay sales-tax-compliant. As they expand globally, this can become an obstacle to rapid growth and flexibility.

To keep the company focused and maintain growth without having to expend resources, subscription businesses need a specialized billing system so they can focus on customer acquisition and revenue growth rather than staying on top of billing complexity.

The CAC payback gap constrains growth

The second issue: How do businesses cover the funding gap between when customers sign up and when they pay? In the subscription economy, companies that would previously receive a customer’s payments all at once now earn revenue spread across a monthly or quarterly subscription fee.

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May
13

Chef Robotics raises $7.7M to help automate kitchens

A year and a half’s worth of global pandemic has had a profound impact on virtually every sector of the workforce. When it comes to future automation, food prep isn’t quite at the top of the list (that distinction likely goes to warehouse fulfillment, for the time being), but it’s certainly up there. And it’s easy to see why the events of 2020 and beyond have left many kitchens looking for alternative sources of labor.

San Francisco-based Chef Robotics today announced that it has raised a combined $7.7 million pre-seed and seed round, with the goal of helping automate certain aspects of food preparation. The list of investors is pretty long on this one (with seed and pre-seed rolled up into one), including Kleiner Perkins, Promus Ventures, Construct, Bloomberg Beta, BOLD Capital Partners, Red and Blue Ventures, Gaingels, Schox VC, Stewart Alsop and Tau Ventures, among others.

The product team includes ex-employees of Cruise, Google, Verb Surgical, Zoox and Strateos. Chef’s team isn’t quite ready to show off its robot just yet (hence generic kitchen stock photo #8952 up top) — not entirely unusual for a robotics company still in the early stages. What it has outlined, thus far, is a robotics and vision system destined to increase production volume and enhance consistency, while removing some food waste from the process. Fast casual restaurants appear to be a key focus for this sort of tech.

The company describes it thusly:

Chef is designed to mimic the flexibility of humans, allowing customers to handle thousands of different kinds of food using minimal hardware changes. Chef does this using artificial intelligence that can learn how to handle more and more ingredients over time and that also improves. This allows customers to do things like change their menu often. Additionally, Chef’s modular architecture allows customers to quickly scale up just as they would by hiring more staff (but unlike humans, Chef always shows up on time and doesn’t need breaks).

More details on the underlying tech soon, no doubt.

 

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May
13

Legionfarm, pairing pro gamers with amateurs, raises $6 million Series A

Legionfarm, the gaming platform that lets gamers play with pro players in their favorite games, has today announced the close of a $6 million Series A round. Investors in the round include SVB, Y Combinator, Scrum VC, Kevin Lin, Altair Capital, Ankur Nagpal and more.

Legionfarm launched out of Y Combinator at the beginning of last year with a mission to give pro players a way to generate income and amateur players the chance to get better by playing with a pro coach. It started out with an à la carte business model but has since added a subscription product.

It either costs $12/hour to play on an individual session basis (one hour of play) or you can pay $25 or $50/month. That gives gamers access to discounted prices for pros and unlimited sessions with pros who are brand new to the platform, which Legionfarm calls “rookies.”

The company was founded by Alex Beliankin, who is a former pro gamer and was once in the top .01% of World of Warcraft players. There are many, many pro caliber players out in the world who can’t necessarily make a living off of gaming. They either have to be signed by an org (super limited supply) or play in as many tournaments as possible (unreliable) or stream on Twitch.

Legionfarm gives these pros the opportunity to earn a living playing the games they love.

Meanwhile, gamers are always looking to get better but don’t often have the environments in a game to do so, particularly in Battle Royale games. Legionfarm, which supports a couple of the biggest BRs (Call of Duty: Warzone and Apex Legends), allows these players to team up with pros and learn from them.

The startup is also running a hardware support program, which lets pros on the platform effectively rent gear by paying for it over time in installments that come directly out of their earnings each month.

“Recently, we’ve learned that one pro player can acquire seven or more new customers to the platform if we work with the pro properly,” said Beliankin. “That’s the biggest growth point for us and the biggest challenge. We don’t need to demand in the performance channels, but through existing supply. If we manage to build some sustainable processes here, I think we’re going to skyrocket because we see some huge potential here.”

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May
13

Sylvera grabs seed backing from Index to help close the accountability gap around carbon offsetting

U.K.-based startup Sylvera is using satellite, radar and lidar data-fuelled machine learning to bolster transparency around carbon offsetting projects in a bid to boost accountability and credibility — applying independent ratings to carbon offsetting projects.

The ratings are based on proprietary data sets it’s developed in conjunction with scientists from research organisations including UCLA, the NASA Jet Propulsion Laboratory and University College London.

It’s just grabbed $5.8 million in seed funding led by VC firm Index Ventures. All its existing institutional investors also participated — namely: Seedcamp, Speedinvest and Revent. It also has backing from leading angels, including the existing and former CEOs of NYSE, Thomson Reuters, Citibank and IHS Markit. (It confirms it has committed not to receive any investment from traditional carbon-intensive companies.) And it’s just snagged a $2 million research contract from Innovate UK.

The problem it’s targeting is that the carbon offsetting market suffers from a lack of transparency.

This fuels concerns that many offsetting projects aren’t living up to their claims of a net reduction in carbon emissions — and that “creative” carbon accountancy is rather being used to generate a lot of hot air: In the form of positive-sounding PR, which sums to meaningless greenwashing and more pollution as polluters get to keep on pumping out climate changing emissions.

Nonetheless, the carbon offset markets are poised for huge growth — of at least 15x by 2030 — as large corporates accelerate their net zero commitments. And Sylvera’s bet is that that will drive demand for reliable, independent data — to stand up the claimed impact.

How exactly is Sylvera benchmarking carbon offsets? Co-founder Sam Gill says its technology platform draws on multiple layers of satellite data to capture project performance data at scale and at a high frequency.

It applies machine learning to analyze and visualize the data, while also conducting what it bills as “deep analytical work to assess the underlying project quality”. Via that process it creates a standardised rating for a project, so that market participants are able to transact according to their preferences.

It makes its ratings and analysis data available to its customers via a web application and an API (for which it charges a subscription).

“We assess two critical areas of a project — its carbon performance, and its ‘quality’,” Gill tells TechCrunch. “We score a project against these criteria, and give them ratings — much like a Moody’s rating on a bond.”

Carbon performance is assessed by gathering “multi-layered data” from multiple sources to understand what is going on on the ground of these projects — such as via multiple satellite sources such as multispectral image, radar, and lidar data.

“We collate this data over time, ingest it into our proprietary machine learning algorithms, and analyse how the project has performed against its stated aims,” Gill explains.

Quality is assessed by considering the technical aspects of the project. This includes what Gill calls “additionality”; aka “does the project have a strong claim to delivering a better outcome than would have occurred but for the existence of the offset revenue?”.

There is a known problem with some carbon offsets claimed against forests where the landowner had no intention of logging, for example. So if there wasn’t going to be any deforestation the carbon credit is essentially bogus.

He also says it looks at factors like permanence (“how long will the project’s impacts last?”); co-benefits (“how well has the project incorporated the UN’s Sustainability Development Goals?); and risks (“how well is the project mitigating risks, in particular those from humans and those from natural causes?”).

Clearly it’s not an exact science — and Gill acknowledges risks, for example, are often interlinked.

“It is critical to assess these performance and quality in tandem,” he tells TechCrunch. “It’s not enough to simply say a project is achieving the carbon goals set out in its plan.

“If the additionality of a project is low (e.g. it was actually unlikely the project would have been deforested without the project) then the achievement of the carbon goals set out in the project does not generate the anticipated carbon goals, and the underlying offsets are therefore weaker than appreciated.”

Commenting on the seed funding in a statement, Carlos Gonzalez-Cadenas, partner at Index Ventures, said: “This is a phenomenally strong team with the vision to build the first carbon offset rating benchmark, providing comprehensive insights around the quality of offsets, enabling purchase decisions as well as post-purchase monitoring and reporting. Sylvera is putting in place the building blocks that will be required to address climate change.”

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May
12

How Office Depot slashed operational costs with a “cloud first” strategy

Managed service provider BIAS conducted a cross-platform migration for Office Depot to shift all applications to Oracle Cloud Infrastructure.Read More

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May
12

Apply to join Transform’s annual Tech Showcase

VentureBeat’s annual Tech Showcase returns at Transform 2021: Accelerating Enterprise Transformation with AI and Data, hosted July 12-16.Read More

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May
12

Ubisoft was already making fewer blockbuster games

Ubisoft says it didn't make the decision to produce fewer games in 2021 -- that's something it decided to do back in 2018.Read More

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May
12

Former Blizzard and Epic veterans raise $5M for Lightforge Games

Veterans of Blizzard Entertainment and Epic Games have raised $5 million to open a new game studio called Lightforge Games.Read More

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May
12

Amazon’s SaaS Boost tool addresses dev challenges

Amazon's AWS SaaS Boost tool is now available in open source after a preview period that launched last year.Read More

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May
12

Yelp built an AI system to identify spam and inappropriate photos

Yelp's engineers built a multi-part AI system to help identify spam and inappropriate photos across the company's platform.Read More

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May
12

Hidden Leaf Games raises $3.2 million on a MOBA gambit called Fangs

Hidden Leaf Games is making a 3-on-3 multiplayer online battle arena (MOBA) game called Fangs. They have raised $3.2 million.Read More

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May
12

DataRobot’s Zepl acquisition bridges the AI divide

DataRobot acquires Zepl to bridge the divide between end users, business analysts, and data science teams relying on open source toolkits.Read More

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May
12

Phishing attacks exploit cognitive biases, research finds

Cybercriminals are using cognitive bias techniques to craft personalized social engineering attacks, SecurityAdvisor found in a new study.Read More

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May
12

Hiro Capital invests $6.4M in Twin Suns and FRVR game startups

Hiro Capital has led investments totaling $6.4 million in Twin Suns and FRVR. They're both part of Hiro Capital's push to invest in games.Read More

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May
12

Disease-related risk management is now a thing, and this young startup is at the forefront

Charity Dean has been in the national spotlight lately because she was among a group of doctors, scientists and tech entrepreneurs who sounded the pandemic alarm early last year and who are featured in a new book by Michael Lewis about the U.S. response, called The Premonition.

It’s no wonder the press — and, seemingly moviemakers, too — are interested in Dean. Surgery is her first love, but she also studied tropical diseases and not only applied what she knows about outbreaks on the front lines last year, but also came to appreciate an opportunity that only someone in her position could see. Indeed, after the pandemic laid bare just how few tools were available to help the U.S. government to track how the virus was moving and mutating, she helped develop a model that has since been turned into subscription software to (hopefully) prevent, detect, and contain costly disease outbreaks in the future.

It’s tech that companies with global operations might want to understand better. It has also attracted $8 million in seed funding Venrock, Alphabet’s Verily unit, and Sweat Equity Ventures. We talked late last week with Dean about her now 20-person outfit, called The Public Health Company, and why she thinks disease-focused risk management will be as crucial for companies going forward as cybersecurity software. Our chat has been edited for length; you can also listen to our longer conversation here.

TC: You went to medical school but you also have a master’s degree in public health and tropical medicine. Why was the latter an area of interest for you? 

CD: Neither of my parents had college degrees. I grew up in a very modest setting in rural Oregon. We were poor and by the grace of a full ride scholarship to college I got to be premed. When I was a little girl some missionaries came to our church and talked about disease outbreaks in Africa. I was seven years old, and driving home that evening with my parents, I said, ‘I’m going to be a doctor, and I’m going to study disease.’  It was outrageous because I didn’t know a single person with a college degree. But . .  my heart was set on that, and it never deviated from it.

TC: How did you wind up at the Santa Barbara County Public Health Department, instead of in private practice?

CD: It’s funny, when I was finishing up my residency — which I started doing general surgery, then I pivoted into internal medicine —  I had a number of different doctors’ private practices come to me and try to recruit me because of the shortage of women physicians.

[At the same time] the medical director from the county public health department came and found me and he said, ‘Hey, I hear you have a master’s in tropical medicine.’ And he said, ‘Would you consider coming to work as the deputy health officer, and communicable disease controller, and tuberculosis controller, and [oversee the] HIV clinic and homeless clinic?’ And . . . it was, for me, a fairly easy choice.

TC: Because there was so little attention being paid to all of these other issues?

CD: What caught my attention is when he said communicable disease controller and tuberculosis controller. I had lived in Africa [for a time] and learned a lot about HIV, AIDS, tuberculosis, vaccine-preventable diseases — things you don’t see in the United States. [And the job] was so in lockstep with who I was because it’s the safety net. [These afflicted individuals] don’t have health insurance. Many are undocumented. Many have nowhere else to go for health care, and the county clinic truly serves the communities that I cared about, and that’s where I wanted to be.

TC: In that role — and later at the California Department of Public Health — you developed expertise in multi-drug-resistant tuberculosis. Was your understanding of how it is transmitted — and how the symptoms present differently — what made you attuned to what was headed for the U.S. early last year?

CD: It was probably the single biggest contributor to my thinking. When we have a novel pathogen as a doctor, or as a communicable disease controller, our minds think in terms of buckets of pathogen: some are airborne, some are spread on surfaces, some are spread through fecal material or through water. In January [of last year],  as I was watching the news reports emerge out of China, it became clear to me that this was potentially a perfect pathogen. What does that mean? It would mean it had some of the attributes of things like tuberculosis or measles or influenza — that it had the ability to spread from person to person, likely through the air, that it made people sick enough that China was standing up hospitals in two weeks, and that it moved fast enough through the population to grow exponentially.

TC: You are credited with helping to convince California Governor Gavin Newsom to issue lock-down orders when he did.

CD: Everything I’ve done is as part of a team. In March, some amazing heroes parachuted in from the private sector, including [former U.S Chief Technology Officer] Todd Park, [famed data scientist] DJ Patil, [and Venrock’s] Bob Kocher, to help the state of California develop a modeling effort that would actually show, through computer-generated models, in what direction the pandemic was headed.

TC: How did those efforts and thinking lead you to form The Public Health Company last August?

CD: What we are doing at The Public Health Company is incorporating the genomic variant analysis — or the fingerprint of the virus of COVID virus as it mutates and as it moves through a population —  with epidemiology investigations and [porting these with] the kind of traditional data you might have from a local public health officer into a platform to make those tools readily available and easy to use to inform decision makers. You don’t have to have a mathematician and a data scientist and an infectious disease doctor standing next to you to make a decision; we make those tools automated and readily available.

TC: Who are your customers? The U.S. government? Foreign governments?

CD: Are the tools that we are developing useful for government? Absolutely. We’re engaged in a number of different partnerships where this is of incredible service to governments. But they are as useful, if not even more useful, to the private sector because they haven’t had these tools. They don’t have a disease control capability at their fingertips and many of them have had to essentially stand up their own internal public health department, and figure it out on the fly, and the feedback that we’re seeing from private sector businesses has been incredible.

TC: I could see hedge funds and insurance companies gravitating quickly to this. What are some customers or types of customers that might surprise readers?

CD: One bucket that might not occur to people is in the risk management space of a large enterprise that has global operations like a warehouse or a factory in different places. The risk management of COVID-19 is going to look very different in each one of those locations based on: how the virus is mutating in that location, the demographics of their employees, the type of activities they’re doing, [and] the ventilation system in their facility. Trying to grapple with all of those different factors . . .is something that we can do for them through a combination of our tech-enabled service, the expertise we have, the modeling, and the genetic analysis.

I don’t know that risk management in terms of disease control has been a big part of private sector conversations, [but] we think of it similar to cyber security in that after a number of high-profile cyber security attacks, it became clear to every insurance agency or private sector business that risk management had to include cyber security they had to stand up. We very much believe that disease control in risk management for continuity of operations is going to be incredibly important moving forward in a way that I couldn’t have explained  before COVID. They see it now and they understand it’s an existential threat.

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