Browsing Tag: Startups

    Startups

    Marketing company Zeta Global hires Ben Hayes as its first chief privacy officer

    February 11, 2019

    Zeta Global, the well-funded marketing technology company founded by CEO David A. Steinberg and former Apple CEO John Sculley, has hired its first chief privacy officer — Ben Hayes, who was previously chief privacy officer at Nielsen.

    Steinberg said the company already has a “global privacy team” and has been taking the issue “very seriously.” However, he said that by hiring Hayes, he’s hoping to make Zeta a “global thought leader.”

    “We want to send a message to the world that the end users that hit our platform are important to us, your privacy is important to us,” he said. And he noted, “When we sit down with our customers — and these are very, very large customers — the first two things they always want to talk about are data security and data privacy.”

    For his part, Hayes said Zeta is “poised to deliver a unique value to the marketplace and, in my estimation, disrupt multiple industries in so doing.” He also said he was impressed by Zeta’s approach to protecting user data, specifically the fact that “it’s not a data broker.” In other words, even though it helps marketers target customers based on user data, it’s not selling that data to others.

    I wondered whether that distinction might get lost in the broader backlash against the way online companies vacuum up personal data, but Hayes said, “I believe that paranoia grows in the shadows and the privacy backlash is largely about people feeling a loss of control over their data.”

    “Explaining the value proposition to users is crucially important,” he added. “People are rational. If they understand it to be a net benefit to themselves they will like that thing.”


    Source: Tech Crunch Startups | Marketing company Zeta Global hires Ben Hayes as its first chief privacy officer

    Startups

    Reddit confirms $300M Series D led by China’s Tencent at $3B value

    February 11, 2019

    Last week TechCrunch reported that Reddit was raising $150 million from Chinese tech giant Tencent and up to $150 million more in a Series D that would value the company at $2.7 billion pre-money or $3 billion post-money. After no-commenting on our scoop, today Reddit confirmed it has raised $300 million at $3 billion post-money, with $150 million from Tencent.

    The deal makes for an odd pairing between one of the architects of China’s Great Firewall of censorship and one of America’s most lawless free-speech forums. Some Redditors are already protesting the funding by trying to post content that would rile Chinese’s internet watchdogs, like imagery from Tiananmen Square and Winnie the Pooh memes mocking Chinese President Xi Jinping’s appearance.

    The round brings the Conde Nast-majority owned Reddit to $550 million in total funding. Beyond Tencent, the rest of the round came from previous investors potentially including Andreessen Horowitz, Sequoia and Fidelity. Apparently frustrated that we had disrupted its PR plan, Reddit today handed confirmation of the round to CNBC, which re-reported our scoop without citation. While CNBC reported in June 2018 that Reddit would top $100 million in revenue, a reliable source tells us Reddit only brought in $85 million in 2018 revenue.

    Reddit’s CEO Steve Huffman has had his own problems with attribution after the exec was caught editing users’ comments to mislead viewers into thinking they were insulting their Subreddit’s moderators. Huffman managed to get off with just an apology and vow not to do it again, though he seemed to laugh off and excuse the abuse of power by saying “I spent my formative years as a young troll on the Internet.”

    Reddit will have to compete for ad dollars with the Google-Facebook duopoly despite having less information about its users, who are often anonymous. Reddit sees 330 million users per month across its Subreddit forums for discussing everything from news and entertainment to niche types of pornography, conspiracy theories and other highly brand-unsafe content. Meanwhile, users may be concerned that Reddit’s policy views could be tightened as it cosies up to Tencent.

    Reddit has struggled with staff departures and user revolts over the years as it tries to balance freedom of expression with civility. The hope is the cash could help it pay for experienced leaders and more moderation staff to maintain that balance. But without proper oversight, the cash could simply scale up Reddit and its problems along with it.


    Source: Tech Crunch Startups | Reddit confirms 0M Series D led by China’s Tencent at B value

    Startups

    C2A raises $6.5M for its in-car cybersecurity platform

    February 11, 2019

    Cars are now essentially computers on wheels — and like every computer, they are susceptible to attacks. It’s no surprise then that there’s a growing number of startups that are working to protect a car’s internal systems from these hacks, especially given that the market for automotive cybersecurity could be worth mor $900 billion by 2026.

    One of these companies is Israel’s C2A Security, which offers an end-to-end security platform for vehicles, which today announced that it has raised a $6.5 million Series A funding round.

    The round was led by Maniv Mobility, which previously invested in companies like Hailo, drive.ai and Turo, and ICV, which has invested in companies like Freightos and Vayyar. OurCrowd’s Labs/02 also participated in this round.

    Like most companies at the Series A stage, C2A plans to use the new funding to grow its team, especially on the R&D side, and help support its customer base. Sadly, C2A does not currently talk about who its customers are.

    The promise of C2A is that it offers a full suite of solutions to detect and mitigate attacks. The team behind the company has an impressive security pedigree, with the company’s CMO Nat Meron being an alumn of Israel’s Unit 8200 intelligence unit, for example. C2A founder and CEO Michael Dick previously co-founded NDS, a content security solution, which Cisco acquired for around $5 billion in 2012 (and then recently sold on to Permira, also for $5 billion).

    “We are extremely proud to receive the support of such outstanding investors, who will bring tremendous value to the company,” said Dick. “Maniv’s expertise in autotech and strong network across the industry coupled with ICV’s rich experience in cybersecurity brings the perfect combination of skills to the table.”


    Source: Tech Crunch Startups | C2A raises .5M for its in-car cybersecurity platform

    Startups

    Nordic banking app Lunar Way raises €13M

    February 11, 2019

    Lunar Way, the Nordic banking app that’s riding new EU regulation to help inject more competition into the region, has raised €13 million in new funding. The round is led by SEED Capital, with participation from Greyhound Capital, Socii Capital and a number of individual investors from the financial services industry.

    It also comes shortly after Lunar Way announced it had attained a PISP payments license, meaning that the fintech can offer a more comprehensive banking feature-set, including making payments out of third-party bank accounts on a user’s behalf.

    This, says Lunar Way founder Ken Villum Klausen, also paves the way for the startup to crack open the “Nordic clearing system monopoly,” which has traditionally made it difficult for new banking entrants.

    “The new payment license grants us the option to instruct underlying banks to do payments, pay bills or even pay in a retail environment from their accounts,” explains Klausen. “So when you sign up, you’re able to connect to an existing bank-account in the sign up flow. And after that control all your finances through our platform.”

    In addition, Lunar Way has a PSD2 AISP license, so that it is regulated to “co-own the transaction data,” which Klausen says Lunar Way can use in the company’s PFM features and for new products.

    “The [Lunar Way] product offers all the fundamentals from a banking app. You can pay bills, transfer money, set a budget, do saving-goals, manage your card etc. We also have a few subscription-based credit lines, where you pay a monthly fee [for credit],” he says.

    In Denmark, Lunar Way also acts as a “NemKonto” — or national Danish account — a type of bank account that the Danish government stipulates by law that all citizens and businesses must have.

    Adds Klausen: “It has taken a few years to build our app to suit the different demands of the Nordic countries, but now we are a serious competitor to traditional banks. Our aim is — and have always been — to fundamentally change the status quo of banking. We’re now welcoming more than 10,000 new users a month and counting, which is substantial considering the fact that the Nordics’ total addressable market is 27 million people.”

    Meanwhile, Lunar Way says it will use the funding to help accelerate the banking app’s growth, in a bid to reach further scale across the Nordics. I also understand the fintech is already gearing up for a new funding round pegged for later this summer.


    Source: Tech Crunch Startups | Nordic banking app Lunar Way raises €13M

    Startups

    Melonport dissolves in favor of its protocol, setting a new bar for the blockchain world

    February 11, 2019

    In the world of blockchain, it is the sector of fintech where most think Satoshi’s invention will have the greatest impact. And in finance, there are few more elite worlds than those of asset management. So it’s of some significance that a two-year project to disrupt and open up this world using blockchain has now come to fruition.

    Last Friday in Zug — a small provincial Swiss town which has embraced crypto startups — the Melonport startup consciously chose to dissolve itself and release its Melon protocol on the world of asset management. It will now build its company on a blockchain protocol it doesn’t control. The precedence for this kind of move in the tech world are many. It’s not unheard for a startup to release an Open API and let other potential competitors build on it, while hoping they will be good enough to beat others. And Red Hat, long ago, built a huge company on top of the open-source Linux software.

    What is different here is that Melonport built the Melon Protocol on the Ethereum blockchain, but it will no longer have the majority say on how that protocol develops. No one will technically “own” the Melon Protocol, but the founders of Melonport have entrusted its development to an independent Melon Council, which will provide governance and direction as it develops. What was Melonport will now morph into a new company called Madeeba to build tools on top of its creation. Madeeba will hold one seat on the Melon Council.

    Fans of Stars Wars will have to forgive me, but it’s not unlike Obi-Wan Kenobi becoming stronger in “The Force” by allowing Darth Vader to kill him off. Augur is the only major crypto platform to do the same as Melonport: letting the community run the software. Augur has grown steadily too, showing this methodology can work.

    Melon will now be an open-source protocol on the Ethereum blockchain for on-chain asset management. This pioneering blockchain software system is designed to allow literally anyone to set up, and manage, an asset management fund.

    Melonport founder and now Madeeba founder Mona El Isa told me: “We always promised we would step back and hand over the protocol to a decentralized governance process. This is designed to consider all the stakeholders, the token holders, the developers, and the users (the managers and investors).”

    Blockchain technology has the potential to radically transform business and allow community owned networks. However, getting the governance right is key in this space. That’s why creating a system that prevents co-option and capture by vested interests is so important. Other blockchains, such as EOS, have been criticized for being in thrall to a limited number of nodes, for instance.

    The Melon Council is composed of the Melon Technical Council (MTC) and representatives of Melon Exposed Businesses (MEB). The first seats of the MTC have been assigned by the outgoing Melonport team to:

    • Will Harborne (Director of Operations at Ethfinex)
    • Nick Munoz-McDonald (former Head of Audit at Solidified)
    • KR1 (represented by Janos Berghorn)
    • Matthew Di Ferrante (founder, ZK Labs)
    • Woorton (represented by Zahreddine Touag)
    • Martin Lundfall (Formal Verification Researcher at Dapphub/MakerDAO)
    • Fabian Gompf (VP Technology Partnerships at Parity)
    • Former Melonport team / Madeeba (represented by Jenna Zenk)

    Each Melon Council member will be issued a token that represents their membership into the Melon Council. They will then be able to use that token to make proposals and vote on key issues.

    The Melon Council will also be powered by aragonOS, a Solidity framework on the Ethereum blockchain, which allows anyone to create, manage and participate in complex decentralized organizations.

    The Melon Council DAO says this will allow decision making within the Melon Council to remain secure and transparent to the community. The members of the Melon Council will be able to vote on-chain on matters such as inviting new members into the Council, adjusting the amgu price, updating the Melon protocol.eth ENS subdomains and updating protocol parameters. The Melon Council will also be able to use Aragon tools to make their decisions about inflation spending transparent.

    “We’re doing this to show that we were serious about building a decentralized system. If we stuck around everyone would be relying on us to be the sole maintainer of the protocol, or they might suspect we have some kind of bigger influence,” El Isa continued.

    In the race toward decentralized asset management, there have been other attempts to create new vehicles, such as Iconomy and CoinBlock, but it’s fair to say none has been as successful or as long-lived as the Melonport project.

    Madeeba will now aim to build a user-friendly product, “so anyone could set up a fund and not even feel you’ve entered into the blockchain space,” says El Isa. A sea of hands (belonging to both traditional and non-traditional asset managers) went up in the room when people were asked if they would pilot both Madeeba and the protocol.

    Travis Jacobs — the lead Melon protocol developer and who’s worked on blockchain since 2011 — told me he said he decided to work on Melon to have an effect in an industry that is “sort of shuttered and only accessible to an elite few. It was a great opportunity to spread a democratic effect so anyone could set up an investment fund.”

    In dissolving itself in favor of anon source protocol on which it plans to build its own products, the example set by Melonport could have wider ramifications in the nascent blockchain world.

    The next time anyone sees a startup announce that it’s working on a “blockchain protocol to rule them all,” the next question to be asked should be: how will that protocol operate for others, and how will it be governed? Because governance has become one question, if not the key question, the brave new world of blockchain must answer.


    Source: Tech Crunch Startups | Melonport dissolves in favor of its protocol, setting a new bar for the blockchain world

    Startups

    PerimeterX secures $43M to protect web apps from bot attacks

    February 11, 2019

    We know by now that modern website attacks are typically automated, as armies of bots knock on doors until they inevitably find vulnerabilities and take advantage. PerimeterX, a San Francisco, startup wants to protect sites from these automated assaults. Today, it announced a $43 million Series C.

    The round was led by Scale Venture Partners . New investor Adams Street Partners joined existing investors Canaan Partners, Vertex Ventures (which also invested via its new growth fund) and Data Collective in the round. Ariel Tseitlin, a partner at Scale, will be joining the company’s board under the terms of the deal. Today’s investment brings the total raised to more than $77 million, according to Crunchbase data.

    Omri Iluz, co-founder and CEO at PerimeterX, says bots have become the preferred way of hackers to attack websites and mobile apps, and his company has developed a way to defend against that kind of approach. It uses an approach called behavioral fingerprinting to blunt these automated attacks.

    “Once we gain visibility into the behavior of the user, we are able to discern between normal behavior and an anomalous behavior that looks like it’s coming from an automated tool,” he said. The solution looks at attributes like mouse movements and swipes. It also analyzes the hardware to understand the graphics driver and audio driver of whatever device the bot is purporting to be.

    To achieve this kind of identification requires massive amounts of data, and PerimeterX uses machine learning to help understand normal behavior and shut down anomalous behavior in an automated fashion.

    The company was founded in 2014 and currently has 140 employees. Ariel Tseitlin from Scale Venture Partners, whose firm is leading the round, says as companies reach this level of maturity, the Series C money tends to go into sales and marketing to push the revenue pedal and scale the company.

    “While there is a lot of opportunity in R&D, generally at this stage most of the dollars are going for sales and marketing, so hiring more salespeople, hiring more marketers more sales ops. That’s where a big part of the expansion comes from, and that tends to be pretty closely correlated to revenue growth, and pretty closely correlated to just greater growth in general,” Tseitlin explained

    We wrote about Signal Sciences’ funding last week, a company that also works to protect web apps using a firewall approach. Iluz says the two companies often work together with the same customers, rather than competing, because they attack the problem differently.

    Note: The original version of this article has been updated to reflect that Vertex Ventures invested via its new growth fund.


    Source: Tech Crunch Startups | PerimeterX secures M to protect web apps from bot attacks

    Startups

    Sean Parker’s govtech Brigade breaks up, Pinterest acqhires engineers

    February 11, 2019

    Facebook co-founder Sean Parker bankrolled Brigade to get out the vote and stimulate civic debate, but after five years and little progress the startup is splitting up, multiple sources confirm to TechCrunch. We’ve learned that Pinterest has acqhired roughly 20 members of the Brigade engineering team. The rest of Brigade is looking for a potential buyer or partner in the political space to take on the rest of the team plus its tech and product. Brigade CEO Matt Mahan confirmed the fate of the startup to TechCrunch.

    While Brigade only formally raised $9.3 million in one round back in 2014, the company had quietly expanded that Series A round with more funding. A former employee said it had burned tens of millions of additional dollars over the years. Brigade had also acquired Causes, Sean Parker’s previous community action and charity organization tool.

    After Brigade launched as an app for debating positions on heated political issues but failed to gain traction, it pivoted into what Causes had tried to be — a place for showing support for social movements. More recently, it’s focused on a Rep Tracker for following the stances and votes of elected officials. Yet the 2016 campaign and 2018 midterms seem to fly over Brigade’s head. It never managed to become a hub of activism, significantly impact voter turnout, or really even be part of the conversation.

    After several election cycles, I hear the Brigade team felt like there had to be better ways to influence democracy or at least create a sustainable business. One former employee quipped that Brigade could have made a greater impact by just funneling its funding into voter turnout billboards instead of expensive San Francisco office space and talent.

    The company’s mission to spark civic engagement was inadvertently accomplished by Donald Trump’s election polarizing the country and making many on both sides suddenly get involved. It did succeed in predicting Trump’s victory, after its polls of users found many democrats planned to vote against their party. But while Facebook and Twitter weren’t necessarily the most organized or rational places for discourse, it started to seem unnecessary to try to build a new hub for it from scratch.

    Brigade accepted that its best bet was to refocus on govtech infrastructure like its voter identification and elected official accountability tools, rather than a being a consumer destination. Its expensive, high-class engineering team was too big to fit into a potential political technology acquirer or partner. Many of those staffers had joined to build consumer-facing products, not govtech scaffolding.

    Mahan, Brigade’s co-founder and CEO as well as the former Causes CEO, confirms the breakup and Pinterest deal, telling us “We ended up organizing the acqhire with Pinterest first because we wanted to make sure we took care of as many people on the team as possible. We were incredibly happy to find that through the process, 19 members of our engineering team earned offers and ended up going over to Pinterest. That’s about two-thirds of our engineering team. They were really excited about staying in consumer product and saw career opportunities at Pinterest.” We’re still waiting on a comment from Pinterest.

    Brigade had interest from multiple potential acqhirers and allowed the engineering team’s leadership to decide to go with Pinterest. Several of Brigade’s engineers and its former VP of Engineering Trish Gray already list on LinkedIn that they’ve moved to Pinterest in the past few months. “We had a bunch of employees that took a risk on a very ambitious plan to improve our democracy and we didn’t want to leave them out to dry” Mahan stresses. “We spent more time and more money and more effort in taking care of employees over the last few months than most companies do and I think that’s a testament to Sean and his values.”

    Mahan is currently in talks with several potential hosts for the next phase of Brigade, and hopes to have a transition plan in place in the next month. “We’ve in parallel been exploring where we take the technology and the user base next. We want to be sure that it lives on and can further the mission the we set out to achieve even if it doesn’t look like the way it does today.” Though the company’s output is tough to measure, Mahan tells me that “Brigade built a lot of foundational technology such as high quality voter matching algorithms and an entire model for districting people to their elected representatives. My hope for our legacy is that we were able to solve some of these problems that other people can build on.” Given Parker’s previous work with Marijuana legalization campaign Prop 64 in California and his new Opportunity Zones tax break effort, Brigade’s end won’t be Parker’s exit from politics.

    Brigade’s breakup could still cast an ominous shadow over the govtech ecosystem, though. Alongside recent layoffs at grassroots campaign text message tool Hustle, it’s proven difficult for some startups in politics to become sustainable businesses. Exceptions like Palantir succeed by arming governments with data science that can be weaponized against citizens. Yet with the 2020 elections around the corner, fake news and election propaganda still a threat, and technology being applied for new nefarious political purposes, society could benefit from more tools built to amplify social justice and a fair democratic process.


    Source: Tech Crunch Startups | Sean Parker’s govtech Brigade breaks up, Pinterest acqhires engineers

    Startups

    Startup names may have passed peak weirdness

    February 9, 2019

    For years, decades even, startup names have been getting weirder. This isn’t a scientific verdict, but it is how things have seemed to someone who spends a lot of hours perusing this stuff.

    Startups have had a long run of branding themselves with creative misspellings, animal names. human first names, made-up words, adverbs and other odd collections of letters. It’s gone on so long it now seems normal. Names like Google, Airbnb and Hulu, which sounded strange at first, are now part of our everyday vocabulary.

    Over the past few quarters, however, a peculiar thing has been happening: Startup founders are choosing more conventional-sounding names.

    “As we reach the edge of strangeness… they’re saying: ‘It’s too weird. I’m uncomfortable,’” said Athol Foden, president of Brighter Naming, a naming consultancy. While quirky startup monikers haven’t gone away, founders are increasingly comfortable with less-unusual-sounding choices.

    Foden’s observations are reflected in our annual Crunchbase News survey of startup naming trends. We’re seeing a proliferation of startups choosing simple words that describe their businesses, including companies like Hitch, an app for long-distance car rides; Duffel, a trip-booking startup named after the popular travel bag; and Coder, a software development platform.

    But fortunately for fans of offbeat names, the trend is only toward less weirdness, not no weirdness. Those who wish to patronage seed-stage startups can still buy tampons from Aunt Flow, get parenting tips from an app called Mush or get insurance from a startup called Marshmallow.

    Below, we look in more detail at some of the more popular startup naming practices and how they are trending.

    Creativv misPelling5

    For a long time, it seemed like a vast number of startups selected names largely by disabling the spell checker.

    Most desirable dictionary words were already in use as domains or too pricey to acquire. So founders took to dropping vowels, subbing a “y” for an “i” or adding an extra consonant to make it work. The strategy worked well for a lot of well-known companies, including Lyft, Tumblr, Digg, Flickr, Grindr and Scribd.

    These days, creative misspellings are still pretty common among early-stage founders. Our name survey unearthed a big number (see partial list) that recently raised funding, including Houwser, an upstart real estate brokerage; Swytch, developer of a kit for converting bikes to e-bikes; and Wurk, a provider of human resources and compliance software for the cannabis industry.

    However, creative misspellings are getting less popular, Foden said. Early-stage founders are turned off by the prospect of having to spell out their names to people unfamiliar with the brand (which for seed-stage companies includes pretty much everyone).

    Puns

    One of the more fun naming styles is the pun. In our perusal of companies that raised seed funding in the past year, we came across a number of startups employing some sort of play-on words.

    We put together a list of seven of the punniest names here. In addition to Aunt Flow, the list includes WeeCare, a network of daycare providers, and Serial Box, a digital content producer. Crunchbase News also created its own fictional startup — drone chicken delivery startup Internet of Wings — in an explainer series on startup funding.

    Perhaps some day business naming will harken back to the industrial age, when corporate titans had exceedingly boring and obvious names.

    Real companies with pun names that have matured to exit were harder to pinpoint. A couple that have gone public are Groupon and MedMen, a cannabis company that went public in Canada and is valued around CA$2 billion.

    For some reason, it appears pun names are more popular in the brick-and-mortar world than the tech startup sphere. Restaurants specializing in the Vietnamese noodle soup Pho have dozens of play-on-word names memorialized in lists like this. Ditto for pet stores.

    Personally, I’d like to see more internet startups rolling out pun-based names. Foden would, too, and he has even volunteered one suggestion for someone who wants to start a business applying artificial intelligence to artificial insemination: Ai.ai.

    Made-up words that sound real

    There are more than 170,000 non-obsolete words in the English language, per the Oxford English Dictionary. Startups, however, are convinced we need more.

    Hence, one of the more enduringly popular business-naming practices is to come up with something that sounds like an actual word, even if it isn’t.

    We put together a list of examples of this naming style among recently seed-funded startups.

    It includes Trustology, which is building a platform to safeguard crypto assets; Invocable, a developer of voice design tools for Alexa apps; and Locomation, which focuses on autonomous trucking technology.

    Naming advisors like to see the made-up word name trend on the rise, Foden said, because it’s the kind of thing companies pay a consultant to figure out. Another advantage is it’s easier to top search results for a made-up word.

    Normal-sounding names

    Lastly, let’s look at those rebel startups choosing familiar dictionary words for their names.

    We put together a list of some here. Besides the aforementioned Duffel, Hitch and Coder, there’s Decent, a healthcare startup; Chief, a women’s networking group; Journal, a note organizing tool; and many more.

    Startups are less concerned than they used to be with snagging a dot-com domain that contains just their name. Commonly, they’ll add a prefix to their domain (joinchief.com, usejournal.com), choose an alternate domain (Hitch.net) or both.

    Overall, Foden said, startups today are putting less emphasis on securing a dot-com suffix or an exact domain name match. Google parent Alphabet, in particular, made the alternate domain idea more palatable. It helped to see one of the world’s richest corporations forego Alphabet.com in favor of abc.xyz.

    Where is it all going?

    They say history repeats itself. If so, perhaps some day business naming will harken back to the industrial age, when corporate titans had exceedingly boring and obvious names like Standard Oil, U.S. Steel and General Electric.

    For now, however, we live in era in which the most valuable companies have names like Google and Facebook. And to us, they sound perfectly normal.

    Methodology: For the naming data set, we looked primarily at companies in English-speaking countries that raised seed funding after 2018. To broaden the potential list of names, we also included some companies funded in 2017. We also tried to limit the lists, where possible to companies founded in the past three years, although there were occasional exceptions.


    Source: Tech Crunch Startups | Startup names may have passed peak weirdness

    Startups

    Startups Weekly: Spotify gets acquisitive and Instacart screws up

    February 9, 2019

    Did anyone else listen to season one of StartUp, Alex Blumberg’s OG Gimlet podcast? I did, and I felt like a proud mom this week reading stories of the major, first-of-its-kind Spotify acquisition of his podcast production company, Gimlet. Spotify also bought Anchor, a podcast monetization platform, signaling a new era for the podcasting industry.

    On top of that, Himalaya Media, a free podcast app I’d never heard of until this week, raised a whopping $100 million in venture capital funding to “establish itself as a new force in the podcast distribution space,” per Variety.

    The podcasting business definitely took center stage, but Lime and Bird made headlines, as usual, a new unicorn emerged in the mental health space and Instacart, it turns out, has been screwing its independent contractors.

    As mentioned, Spotify, or shall we say Spodify, gobbled up Gimlet and Anchor. More on that here and a full analysis of the deal here. Key takeaway: it’s the dawn of podcasting; expect a whole lot more venture investment and M&A activity in the next few years.

    This week’s biggest “yikes” moment was when reports emerged that Instacart was offsetting its wages with tips from customers. An independent contractor has filed a class-action lawsuit against the food delivery business, claiming it “intentionally and maliciously misappropriated gratuities in order to pay plaintiff’s wages even though Instacart maintained that 100 percent of customer tips went directly to shoppers.” TechCrunch’s Megan Rose Dickey has the full story here, as well as Instacart CEO’s apology here.

    Slack confidentially filed to go public this week, its first public step toward either an IPO or a direct listing. If it chooses the latter, like Spotify did in 2018, it won’t issue any new shares. Instead, it will sell existing shares held by insiders, employees and investors, a move that will allow it to bypass a roadshow and some of Wall Street’s exorbitant IPO fees. Postmates confidentially filed, too. The 8-year-old company has tapped JPMorgan Chase and Bank of America to lead its upcoming float.

    Reddit CEO Steve Huffman delivers remarks on “Redesigning Reddit” during the third day of Web Summit in Altice Arena on November 08, 2017 in Lisbon, Portugal. (Horacio Villalobos-Corbis/Contributor)

    It was particularly tough to decide which deal was the most notable this week… But the winner is Reddit, the online platform for chit-chatting about niche topics — r/ProgMetal if you’re Crunchbase editor Alex Wilhelm . The company is raising up to $300 million at a $3 billion valuation, according to TechCrunch’s Josh Constine. Reddit has been around since 2005 and has raised a total of $250 million in equity funding. The forthcoming Series D round is said to be led by Chinese tech giant Tencent at a $2.7 billion pre-money valuation.

    Runner up for deal of the week is Calm, the app that helps users reduce anxiety, sleep better and feel happier. The startup brought in an $88 million Series B at a $1 billion valuation. With 40 million downloads worldwide and more than one million paying subscribers, the company says it quadrupled revenue in 2018 from $20 million to $80 million and is now profitable — not a word you hear every day in Silicon Valley.

    Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

    I listened to the Bird CEO’s chat with Upfront Ventures’ Mark Suster last week and wrote down some key takeaways, including the challenges of seasonality and safety in the scooter business. I also wrote about an investigation by Consumer Reports that found electric scooters to be the cause of more than 1,500 accidents in the U.S. I’m also required to mention that e-scooter unicorn Lime finally closed its highly anticipated round at a $2.4 billion valuation. The news came just a few days after the company beefed up its executive team with a CTO and CMO hire.

    Databricks raises $250M at a $2.75B valuation for its analytics platform
    Retail technology platform Relex raises $200M from TCV
    Raisin raises $114M for its pan-European marketplace for savings and investment products
    Self-driving truck startup Ike raises $52M
    Signal Sciences secures $35M to protect web apps
    Ritual raises $25M for its subscription-based women’s daily vitamin
    Little Spoon gets $7M for its organic baby food delivery service
    By Humankind picks up $4M to rid your morning routine of single-use plastic

    We don’t spend a ton of time talking about the growing, venture-funded, tech-enabled logistics sector, but one startup in the space garnered significant attention this week. Turvo poached three key Uber Freight employees, including two of the unit’s co-founders. What’s that mean for Uber Freight? Well, probably not a ton… Based on my conversation with Turvo’s newest employees, Uber Freight is a rocket ship waiting to take off.

    Who knew that investing in female-focused brands could turn a profit for investors? Just kidding, I knew that and this week I have even more proof! This is L., a direct-to-consumer, subscription-based retailer of pads, tampons and condoms made with organic materials sold to P&G for $100 million. The company, founded by Talia Frenkel, launched out of Y Combinator in August 2015. According to PitchBook, it was backed by Halogen Ventures, 500 Startups, Fusion Fund and a few others.

    Speaking of ladies getting stuff done, Bessemer Venture Partners promoted Talia Goldberg to partner this week, making the 28-year-old one of the youngest investing partners at the Silicon Valley venture fund. Plus, Palo Alto’s Eclipse Ventures, hot off the heels of a $500 million fundraise, added two general partners: former Flex CEO Mike McNamara and former Global Foundries CEO Sanjay Jha.

    If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm and I chat about the expanding podcast industry, Reddit’s big round and scooter accidents.

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    Source: Tech Crunch Startups | Startups Weekly: Spotify gets acquisitive and Instacart screws up

    Startups

    Facebook picks up retail computer vision outfit GrokStyle

    February 8, 2019

    If you’ve ever seen a lamp or chair that you liked and wished you could just take a picture and find it online, well, GrokStyle let you do that — and now the company has been snatched up by Facebook to augment its own growing computer vision department.

    GrokStyle started as a paper — as AI companies often do these days — at 2015’s SIGGRAPH. A National Science Foundation grant got the ball rolling on the actual company, and in 2017 founders Kavita Bala and Sean Bell raised $2 million to grow it.

    The basic idea is simple: matching a piece of furniture (or a light fixture, or any of a variety of product types) in an image to visually similar ones in stock at stores. Of course, sometimes the simplest ideas are the most difficult to execute. But Bala and Bell made it work, and it was impressive enough in action that Ikea on first sight demanded it be in the next release of its app. I saw it in action and it’s pretty impressive.

    Facebook’s acquisition of the company (no terms disclosed) makes sense on a couple of fronts: First, the company is investing heavily in computer vision and AI, so GrokStyle and its founders are naturally potential targets. Second, Facebook is also trying to invest in its marketplace, and using the camera as an interface for it fits right into the company’s philosophy.

    One can imagine how useful it would be to be able to pull up the Facebook camera app, point it at a lamp you like at a hotel and see who’s selling it or something like it on the site.

    Facebook did not answer my questions regarding how GrokStyle’s tech and team would be used, but offered the following statement: “We are excited to welcome GrokStyle to Facebook. Their team and technology will contribute to our AI capabilities.” Well!

    There’s an “exciting journey” message on GrokStyle’s webpage, so the old site and service is gone for good. But one assumes that it will reappear in some form in the future. I’ve asked the founders for comment and will update the post if I hear back.


    Source: Tech Crunch Startups | Facebook picks up retail computer vision outfit GrokStyle