Month: July 2018

19 Jul 2018

India’s BookMyShow pulls in $100M to grow its online ticketing business

BookMyShow, an online ticketing service for cinemas, theatres and sports in India, has pulled in $100 million in new capital for growth.

The Series D round was led by private investment firm TPG Growth and it included participation from undisclosed existing investors. BookMyShow, which is headquartered in Mumbai, has now raised a total of $225 million from a range of backers that include Accel, SAIF and New York’s Stripes Group.

When reached by TechCrunch via investors, the company declined to discuss details of the funding or the plans to utilize it.

“[TPG Growth] brings with them extensive wealth of experience across the global media and entertainment sector which would be instrumental as we look to accelerate our growth plans in this space. The strategic value that all our investors continue to provide us will also be of immense importance as we begin a new chapter of our standout story,” said BookMyShow CEO and founder Ashish Hemrajani in a prepared statement.

On that experience, TPG’s investments in the entertainment industry include Cirque du Soleil, Spotify, STX Entertainment, Vice Media and MoreTickets so you can imagine that the startup will find value from both that network and the experience that the firm has accrued working with its portfolio.

BookMyShow was in expansion mode in 2017 when it made four acquisitions, which included rival ticketing startups Townscript and MastiTickets. The case of Townscript, which is a self-serve platform, post-acquisition the business is said to have tripled the number of events on its platform and doubled revenue, too.

The firm has already ventured overseas with operations launched in Indonesia and Sri Lanka, so the capital may go towards more verticals expansions and other international market launches.

19 Jul 2018

Alibaba boosts its offline reach with $2B+ investment in outdoor digital marketing firm

Alibaba is investing big bucks into offline distribution. The Chinese e-commerce giant has forked out $2.23 billion in exchange for a sizeable piece of Focus Media, a Shanghai-based company that operates outdoor digital advertising screens across China, Singapore and Hong Kong, according to a U.S. filing.

The deal itself is broken up into a few pieces. Alibaba itself is paying $1.43 billion for a 6.62 percent share of Focus Media, which is listed in Shanghai, It is also spending $504.7 million to buy 10 percent of an entity (managed by Focus Media founder and chairman Jason Nanchun Jiang) which controls 23.34 percent of Focus Media.

In addition, an Alibaba-aligned fund called ‘New Retail Strategic Opportunities’ is buying 1.37 percent of Focus Media, while Alibaba itself is planning to exercise an option to buy five percent more of the business over the next twelve months. That additional transaction will add another $1 billion or so to the total investment, dependent, of course, on Focus Media’s stock price.

That’s quite a mouthful but the objective of the deal is simpler to grok: Alibaba already has a formidable online channel to interact with consumers and now it is expanding what it can do offline.

Focus Media currently claims to reach 200 million middle-class consumers across 300 Chinese cities via its outdoor advertising platform, which includes digital screens in streets, in subways and in elevators. The company plans to grow that to 500 million people across 500 cities, and that ties into Alibaba’s online-to-offline strategy, which it also calls ‘New Retail.’

That has seen the company buy up expensive stakes in offline retail businesses with the goal of marrying the benefits of online shopping — such as quick delivery, easy to find products and easy payment — with the customer experience of brick and mortar stores, like in-person customer service and try-before-you-buy.

It isn’t hard to imagine a scenario in which a consumer sees a product advertised via Focus Media with the option to buy it, or arrange to see it in a store, simply by scanning a QR code. (Lest you forgot, QR codes are huge in China and a very key component in online/offline shopping.)

Beyond the New Retail push, the distribution provided by Focus Media offers sellers on Alibaba’s e-commerce platform an alternative avenue through which to reach potential customers, particularly within China’s growing middle class.

Will people reject being bombarded with ads on their commute or downtime, especially when they could just open an app on their phone? Alibaba likely isn’t keen to take the risk, and given the vast amount of cash it is sitting on this deal isn’t going to be a huge risk.

19 Jul 2018

The Accel team is coming to Disrupt Berlin

Every time Accel invests in a startup, it’s an instant positive sign in the startup community. The venture capital firm has a rich history with decades of investments in successful startups. That’s why we’re excited to have four partners at Accel on stage at Disrupt Berlin.

Philippe Botteri, Sonali De Rycker, Luciana Lixandru and Harry Nelis will all relocate their partner meeting to our stage.

Accel is a different VC firm for many reasons. First, while the firm started in Silicon Valley, the team bet early on the European startup scene, back in 2001. With an office in London, the team keeps an eye on the entire continent for investment opportunities.

The firm has invested in Deliveroo, BlaBlaCar, Supercell, Spotify and so many others. With such a good track record, it’s clear that some recent investments are also going to become massive companies — nobody has realized it just yet.

In November, we will have four Accel partners on stage to discuss the firm’s investment thesis, each partner’s current obsessions and their collective thoughts on the startup scene in Europe.

It’s going to be a great way to hear the granularity of a team with strong beliefs. I’m sure they don’t always agree on everything, but somehow they manage to invest together as a firm.

TechCrunch is coming back to Berlin to talk with the best and brightest people in tech from Europe and the rest of the world. In addition to fireside chats and panels, new startups will participate in the Startup Battlefield Europe to win the coveted cup.

Grab your ticket to Disrupt Berlin before August 1st as prices will increase after that. The conference will take place on November 29-30.


Philippe Botteri, Partner, Accel

Philippe Botteri focuses on SaaS, enterprise and marketplace businesses.

Philippe led Accel’s investments in DocuSign (IPO), PeopleDoc, Qubit, Algolia, BlaBlaCar, Doctolib and Zenaton. He also works closely with the team at Fiverr and CrowdStrike. Prior to joining Accel, Philippe was with Bessemer, where he worked with the firm’s SaaS and Ad Tech investments including Cornerstone OnDemand (public), Eloqua (public) and Criteo (public).

Philippe is from Paris and graduated from Ecole Polytechnique, where he is a member of the Entrepreneurship Advisory Board, and Ecole des Mines.

Sonali De Rycker, Partner, Accel

Sonali De Rycker focuses on consumer, software and financial services businesses.

She led Accel’s investments in Avito (acquired by Naspers), Lyst, Spotify, Wallapop, KupiVIP, Calastone, Catawiki, JobToday, Wonga, Shift Technology and SilverRail. She is also an independent director of Match Group (public). Prior to Accel, Sonali was with Atlas Ventures.

Sonali grew up in Mumbai and graduated from Bryn Mawr College and Harvard Business School.

Luciana Lixandru, Partner, Accel

Luciana Lixandru focuses on consumer internet, software and marketplace businesses.

She helped lead Accel’s investments and ongoing work in UiPath, Deliveroo, Framer, Avito, Catawiki, Vinted and others. She is also an independent director of Showroomprive (public). Prior to Accel, Luciana was with Summit Partners.

Luciana is from Romania and graduated from Georgetown University.

Harry Nelis, Partner, Accel

Harry Nelis focuses on consumer internet, financial services and software companies.

He led Accel’s investments in CHECK24, Funding Circle, KAYAK (IPO; acquired by Priceline), Showroomprive (IPO), WorldRemit, Celonis, Callsign, Instana and others.

Harry started his career as an engineer at Hewlett-Packard before founding the venture-backed software company E-motion.

Harry is from the Netherlands and graduated from Delft University of Technology and Harvard Business School.

19 Jul 2018

With eyes on Europe, Open Banking API provider TrueLayer raises $7.5M

TrueLayer, the London startup that’s built a developer platform to make it easy for fintech and other adjacent companies, such as retailers, to access bank APIs — and ride the Open Banking and PSD2 gravy train — has picked up further $7.5 million in funding.

Leading the round is venture capital fund Northzone. It follows a $3 million Series A in June last year, and will be used for European expansion, starting with Germany and France.

The new capital will also be invested in growing the TrueLayer team and to develop new products to help companies and consumers make the most of Open Banking and PSD2, where co-founder Francesco Simoneschi tells me the opportunities are huge, even if they remain largely untapped, thus far.

“I think the first quarters of 2018 have been about working and educating companies on Open Banking and how to build propositions on top of it,” he says. “This has seen a silent yet massive stream of inbound demand for us. To put things in context, we grew 500 percent in terms of the developer community averaging hundreds of companies a month asking how to start using TrueLayer and the services that we enable — from two people in a garage to the largest enterprise”.

Since Open Banking was tentatively launched in the U.K. January, TrueLayer has secured partnerships and integrations with a number of fintech companies including challenger banks Monzo and Starling Bank, along with the likes of Zopa, ClearScore, Canopy, Plum, BitBond, Emma, Anorak, and CreditLadder.

This has happened in despite of a press narrative around a “failed Big Bang kind of uptake” and incumbent banks not cooperating or meeting their minimum statutory requirements in time (which is undeniably true, in some instances). The reality on the ground, however, is quite different, argues Simoneschi.

“Remember that exponential growth often looks sub-linear at the very beginnings,” he says. “Based on the view of the market that we have, contracts signed, POCs and advanced conversations, I can assure you that you will see a wealth of high street banks and retailers, financial institutions, global platforms, marketplaces, loyalty and rewards propositions, crypto exchanges, wallets and fintech applications experimenting and launching Open Banking-based propositions in the next 12 months”.

To that end, TrueLayer offers a single platform/API to connect to 16 major and not so major banks and credit cards in the U.K., using a mixture of official Open Banking APIs, access to private APIs, and, at a push, screen scraping — depending on a developer’s data needs and stomach for the different kinds of official and unofficial access available. As well as account verification, the platform supports KYC processes, and transactional data for things like account aggregation, credit scoring, and risk assessment.

In addition to its developer-friendly ‘universal’ API, TrueLayer is also developing a number of other value-add services that do even more heavy-lifting and negate the need for other fintechs to keep re-inventing the wheel. These include features such as data cleansing, enhanced security and transaction categorisation.

However, Simoneschi says there is a lot more Open Banking goodness to come yet, especially in the payments space.

“We got FCA authorization for both access to data (AISP) and access to payments (PISP). The demand for the latter has been going through the roof in the last few months and we are taking steps to release a Payment API to the general public later this fall,” he tells me.

This means that companies, such as online retailers, will be able to use TrueLayer to connect directly to customers’ bank accounts as a means of taking payment, therefore bypassing traditional debit and credit card charges, which legislators hope will help to break the duopoly of Visa and MasterCard.

On that note, Jeppe Zink, Partner at Northzone, says that the “walled gardens” of financial institutions, such as banks, are being knocked down, and that banking transactions will increasingly take place away from a bank’s main interface. “To enable this to function, you need thousands of banks to deliver transaction data in a single, secure and compliant way,” he says. “This is a massive undertaking which TrueLayer intends to be the centrepiece of”.

19 Jul 2018

China’s Didi Chuxing is close to launching a taxi-booking service in Japan

Days after raising $500 million via a strategic investment from travel giant Booking Holdings, Chinese ride-hailing giant Didi Chuxing has continued its international push with the launch of a local business in Japan.

Its new Japan-based unit is a joint venture with SoftBank, a longtime Didi investor, which has been in the works since an announcement back in February. Today’s news isn’t that the service is live yet — it isn’t — but rather than the JV has been formally launched.

Didi did say, however, that it plans to launch services for passengers, drivers and taxi operators in Osaka, Kyoto, Fukuoka, Tokyo and other major cities from autumn this year. Didi said that its users in China and Hong Kong will be able to use the soon-to-launch Japan service through their regular Didi app — that’s interesting since a ‘roaming’ strategy involving Lyft and others arranged years ago never came to fruition.

And yes, you did read correctly that taxi operators are part of the target audience. That’s because Japan doesn’t allow unlicensed private cars to operate as taxis.

That’s made the country a real challenge for Uber, which has held talks with taxi operators, and it also explains why one of the leading ride-hailing service in Japan — JapanTaxi — is backed by the taxi industry. JapanTaxi is even owned by an insider, Ichiro Kawanabe, who runs Japan’s largest taxi operator Nihon Kotsu and heads up the country’s taxi federation.

Working with taxi operators means Didi has a fleet management platform, as above, as part of its Japan-based service.

That concession on working with taxis doesn’t necessarily mean that Didi isn’t focused on widening the market by enabling “ride-sharing” with non-taxi drivers in the future.

Reuters reports that SoftBank supremo Masayoshi Son — one half of the Didi Japan joint venture — made some family scathing comments at an annual event.

“Ride-sharing is prohibited by law in Japan. I can’t believe there is still such a stupid country,” Son is said to have remarked.

Didi, of course, is playing things more cautious as it rides into Japan.

The company said that the country, which is the world’s third-largest market based on taxi ride revenue, “holds great potential as a market for online taxi-hailing.”

“There is earnest demand for more convenient urban and regional transportation services, especially in light of the growing population of senior citizens,” Didi added via a statement.

The Japanese expansion is another example of Didi’s push to internationalize its service beyond China in 2018. Last year, it raised $4 billion to double down on technology, AI and move into new markets, and this year it has come good on that promise by entering Mexico, Australia and Taiwan. While over in Brazil, it leaped into the market through the acquisition of local player and Uber rival 99.

The 99 deal was a particularly interesting one since Didi had previously backed the company via an investment. Didi didn’t say much about the mechanics of that strategy, but it has investments in ride-sharing companies worldwide, including Lyft, Grab, Ola, Careem and Taxify, which you’d imagine, like 99, could be converted into full-on acquisitions at some point in moves that would speed up that international expansion.

19 Jul 2018

And now, here’s a ‘Trumpy Cat’ augmented reality app from George Takei

Anyone who follows George Takei on Twitter can tell you that Star Trek‘s original Sulu is not a fan of President Donald Trump. But he’s found a new way to express that criticism — not just in tweets, interviews and op-eds, but also in an augmented reality app called House of Cats.

The app was built in partnership with Montreal-based development company BMAD, and it allows users to interact animated animal characters like Trumpy Cat, Meowlania, Vladdy Putin and Lil’ Rocket Pug. They can add their own voice recordings, superimpose the animals on real environments and take photos with them — Takei suggested including Trumpy Cat in photos of real-world protests.

When I asked where the idea came from, Takei had a simple explanation : “The Internet loves the combination of politics and cats.”

While the app looks pretty silly, Takei made the by-now-commonplace observation that satire is having a hard time keeping up with the daily news.

We spoke shortly after Trump had his press conference with Vladimir Putin — setting off this week’s cycle of criticism, denial and missing double negatives — and Takei told me, “No augmented reality could have created the true reality of what we saw this morning: Donald Trump standing shoulder-to-shoulder with Vladimir Putin … his denial of the attack on the core activity of our democratic system.”

Takei added that humor is a key ingredient in getting a serious message out into the world. He’s pointed to his embrace of memes (particularly Grumpy Cat) as one of the main drivers of his popularity on social media, which in turn gives him a bigger platform for his political views.

“I’m a political activist — I have been since I was a teenager, largely because of my childhood incarceration behind American barbed wire fences,” Takei said. He said his social media presence is meant to be an extension of that activism, but, “I notice that if I’m documenting the truth, people are nodding off. [So] I try to kind of inject a little humor into it.”

The app costs 99 cents, and there are plans for subscription content as well. It might seem strange to pay money for a satirical cat app, but keep in mind that some of the profits will go to Refugees International.

“Making a mockery of this particular person is going to be a very effective tool,” Takei said. “We’ll have fun while we also accomplish our mission to make this a better America.”

18 Jul 2018

Worried about a slowdown? It already happened in 2016, says one new venture study

In today’s market, it’s hard to make sense of what’s what. Deals have grown incestuous for the first time, with outfits like GV investing alongside Uber last week — just months after its parent company, Alphabet, was at Uber’s throat. A $10 million-plus round of seed funding is no longer a joke. Venture firms continue to raise record-breaking amounts of money, despite what feels like creeping uncertainty about how much longer this go-go market can continue.

Unsurprisingly, there’s been some talk lately about deal flow and the possibility that some of the most well-regarded early-stage investors in the industry have quietly applied the brakes. But new analysis out of Wing, the 7.5-year-old, Silicon Valley venture firm co-founded by veteran VCs Peter Wagner and Gaurav Garg, draws a conclusion that might surprise nervous industry watchers: After tracking the investment activity of what Wing considers to be the 21 leading venture firms, it discovered that a pullback already happened . . . in 2016. In fact, Wagner, who oversaw the analysis, tells us there’s been so sign of a slowdown since then.

We caught up with Wagner last week to learn more about Wing’s analysis — and what might be causing some confusion in the industry right now.

TC: First, why do this kind of study right now?

PW: There’s been a lot of analysts and reporters and LPs and VCs asking us about our investment pace really, and I think it owes to talk of Benchmark and Union Square Ventures slowing down, so we thought we’d look at some parameters and see what’s going on.

TC: Why not just refer to industry-wide statistics? It seems like there are plenty of these.

PW: They’re kind of swamped with the data of less discriminating investors, though. You really want to focus on the signal, which is why we track what the 21 leading venture firms are doing, and in that analysis, we found no signs of a slowdown. We found instead that there was a peak of activity in 2013 and 2014, a pullback in 2016, and an uptick since.

And we cut it different ways. We removed international deals in China and India, because they have their own rhythm and can get frothy. We moved seed deals, given there’s been some major schizophrenia among venture firms who waded into seed deals, then pulled out. Even still, 2017 saw an increase in deals over 2016, which was the lowest year in terms of deal activity since 2010.

TC: These were first-time investments?

PW: Yes, and the reason is that follow-on rounds are dictated more by the operational needs of companies. Some could be running out of cash, for example, so it’s non-discretionary. If you want to look at sentiment, you have to look at first-time investments in isolation.

TC: Do you have 2018 data?

PW: We have partial data, of course, and we’ve annualized it to “predict” that 2018 numbers will be close to 2017. That is, if you buy the idea of projecting out, which I don’t really. Also, because you’re looking at a smaller batch of numbers, you’re on thin ice statistically. But for now, at least, we’re seeing a level of activity that was higher than 2016.

TC: You can see why things might be ticking along now: the tech IPO market, SoftBank’s massive Vision Fund, big tech companies getting bigger, which keeps the wheels turning. What happened in 2016? Uncertainly about the U.S. presidential election? Bill Gurley’s warnings that a reckoning was coming?

PW: I really don’t know that it was down so much versus that prior years were up. It was a more a reversion to the mean. The 2016 number still represents a pretty decent and sustainable pace for this industry.

TC: Based on your findings, would you guess a downturn is closer than further away? It seems inevitable, but I’ve thought this for the last three years.

PW: It’s a known unknown. We know there will be a change but we don’t know when or how deep it will be.

TC: Could things have possibly changed, given that everything is impacted by tech, that software is, in fact, eating the world? That’s obviously the bull case.

PW: It’s pretty darn mainstream, whether via digital transformation or just the massive disruption of massive industries buy digitally native competitors. I don’t know, is the answer. But it’s true. Tech isn’t a sideshow anymore.

18 Jul 2018

Midwest rising

Emerging venture capital firms in smaller American cities from Indianapolis to Princeton, NJ are attracting increasingly larger funding as investors see opportunities for returns beyond the coastal confines of the nation’s largest cities and the innovation epicenter of Silicon Valley.

For the last four years, AOL co-founder Steve Case has been criss-crossing the country preaching a gospel of economic renewal for American cities driven by startup investment and technology-based entrepreneurialism. With Case those journeys culminated in the creation of a fund called Rise of the Rest — a $150 million vehicle raised by some of tech’s highest-profile names.

Investors like Amazon founder Jeff Bezos, Eric Schmidt, the chairman of Google’s parent company, Alphabet; Jim Bryer, the former head of the National Venture Capital Association and an early investor in Facebook; Kleiner Perkins Caufield & Byers partner John Doerr; and Facebook’s former President Sean Parker; came together with the family offices of some of America’s wealthiest people to back the fund.

As Schmidt told The Times, “There is a large selection of relatively undervalued businesses in the heartland between the coasts, some of which can scale quickly.”

Steve Case (Revolution LLC) at TechCrunch Disrupt NY 2017

Case and his partner JD Vance (the author of Hillbilly Elegy) are only two of the would-be pioneers that are bringing the venture investment model to the Midwest. In fact, it has been about four years since Mark Kvamme and Chris Olsen left the West Coast and Silicon Valley to launch Drive Capital — the venture capital firm they founded in Columbus, Ohio.

In that time the firm has managed to raise over half a billion dollars to invest in startups based primarily in the Midwest, and has spurred an investment revolution in areas of the country that are more synonymous with tractors than with technological innovation. 

But the Midwestern investment scene isn’t just defined by Valley transplants coming in. Some of the entrepreneurs behind the region’s home-grown success stories, like Indianapolis’ ExactTarget, have launched funds of their own to plant an entirely new crop of tech companies in the Midwest.

Homegrown Heroes

These are funds like High Alpha, which just closed its second $85 million fund, High Alpha Capital II, and raised another $16.5 million for a companion venture studio that ideates and incubates startups.

High Alpha doesn’t exclusively invest in the Midwest, but the bulk of its commitments are definitely falling outside of the typical geographies where most investors spend their time, according to High Alpha managing partner Scott Dorsey, the former chief executive of Salesforce’s Indianapolis-based ExactTarget business.

For its venture studio, the firms was able to bring back Emergence Capital, the San Francisco-based software as a service investor, and woo new investor Foundry Capital, a Boulder, Colo.-based firm co-founded by the legendary investor Brad Feld. Both Feld and Gordon Ritter, the founder of Emergence Capital will take seats on the High Alpha Studios board.

High Alpha investments have been made in Atlanta, Chicago, Des Moines, Minneapolis, Seattle and Toronto, says Dorsey. “You have a big economic advantage where these companies don’t have to raise nearly as much money,” Dorsey says, echoing the sentiment from Schmidt. “The neat thing also is they see that there’s not just one technology company in town and if it doesn’t work out you’re packing up and moving and seeing an actual ecosystem.”

Dorsey and the High Alpha team focus their investments on marketing and automation software — an area that can run the gamut from drone use in agricultural applications to a software service that monitors company spending on business software so that the procurement process can be more efficient.

While the venture arm is one way that the firm is seeding a new generation of technology companies across the Midwest and around the country, the venture studio is focused on building businesses in Indianapolis itself, Dorsey says.

Through the studio, Dorsey and his partners have plans to start eight to 10 new software as a service businesses, and High Alpha is tapping local talent to do it. For instance, Dorsey’s former colleague Scott McCorkle, who ran the marketing cloud business for Salesforce, is now working on a company that High Alpha is incubating. 

“We are always building that stable of entrepreneurs,” Dorsey says. 

Initiatives in states like Indiana are also helping to encourage a more entrepreneurial and tech focused mindset, according to Dorsey. Like other states, Indiana is now mandating computer science classes for every grade from K-12 in public schools. The state also has created a $250 million fund-of-funds to invest in venture funds that will commit capital to companies that will bring jobs to the state. Finally, Indiana has passed a law to forego collecting sales tax on software as a service companies that are developing and selling products and services in the state.

Look Homeward (Investment) Angel

State incentives aside, there are structural reasons for the moves in the Midwest. The companies require less capital to scale compared to companies on the coasts, thanks to rising real estate prices and the intense competition for talent. Indigenous venture investors are springing up thanks to earlier bets on technology companies coming from the region.

U.S. land grant colleges, which may well be the most underappreciated heroes of American economic growth, are increasingly becoming startup hubs. With new companies emerging from Ann Arbor, Mich., Columbus, Ohio and Madison, Wis.

At the end of the day. The world is flat and entrepreneurs are everywhere and with technology it’s possible to start a company anywhere,” says Deven Parekh, the managing director of the multi-billion dollar growth equity investment firm Insight Venture Partners. “The West Coast is not necessarily the optimal place to start a company. The cost structure is prohibitive and there’s lots of turnover.”

For some firms, the revelation of abounding opportunities in states where the wind goes sweeping through the plains isn’t all that new. Growth capital firms like Edison Partners, the Princeton, N.J.-based investor which just closed on its tenth fund with $300 million has long been an investor in far-flung geographies. Only a minority of the firm’s investments fall inside the North Atlantic corridor of Boston and New York, according to partner Chris Sugden.

The rapid growth of VC deals in NY Metro, Midwest, and LA compared to stable growth in New England.

“Two-thirds of our investments are outside of New York or Boston [and] we haven’t participated in the Valley,” Sugden says. “My fear of being a tourist is overpriced deals like overpriced restaurants with not good quality food.”

For the 30 years it has been in business, Edison has backed companies outside of the traditional investment lanes for tech investors. “These ecosystems have been in place for a long time. The challenge for them has always been scale,” Sugden says.

“What’s happening right now is an interesting theme,” he added. “People leaving the Valley and leaving New York to go back to the South and go back to the Southeast. There’s a little bit more excitement and energy in these off of coast towns.”

And exits are beginning to follow this exodus. ExactTarget planted a flag in Indianapolis’s tech ecosystem (and the recent public offering for PluralSight was another big win for the city), while Groupon did the same in Chicago. Now a new generation of entrepreneurs is getting its first taste of Valley returns. These are people like Bill Smith, whose Birmingham, Ala.-based grocery delivery business Shipt was acquired by Target for $550 million late last year.

For Sugden, the four critical components an emerging tech ecosystem need to take flight are an educational hub to produce talent, an urban center to capture it, capital to sustain it, and government and traditional industry support to accelerate it.

“I’ve seen first-hand the incredible entrepreneurs trying to build great businesses outside of Silicon Valley,” said Vance, in a statement announcing the Rise of the Rest fund last year. “They often possess all the ingredients for success, but struggle to find enough investment capital to break through and have a positive impact on their region.”

18 Jul 2018

‘Underwater Pokéball’ snatches up soft-bodied deep dwellers

Creatures that live in the depths of the oceans are often extremely fragile, making their collection a difficult affair. A new polyhedral sample collection mechanism acts like an “underwater Pokéball,” allowing scientists to catch ’em all without destroying their soft, squishy bodies in the process.

The ball is technically a dodecahedron that closes softly around the creature in front of it. It’s not exactly revolutionary except in that it is extremely simple mechanically — at depths of thousands of feet, the importance of this can’t be overstated — and non-destructive.

Sampling is often done via a tube with moving caps on both ends into which the creature must be guided and trapped, or a vacuum tube that sucks it in, which as you can imagine is at best unpleasant for the target and at worst, lethal.

The rotary actuated dodecahedron, or RAD, has five 3D-printed “petals” with a complex-looking but mechanically simple framework that allows them to close up simultaneously from force applied at a single point near the rear panel.

“I was building microrobots by hand in graduate school, which was very painstaking and tedious work,” explained creator Zhi Ern Teoh, of Harvard’s Wyss Institute, “and I wondered if there was a way to fold a flat surface into a three-dimensional shape using a motor instead.”

The answer is yes, obviously, since he made it; the details are published in Science Robotics. Inspired by origami and papercraft, Teoh and his colleagues applied their design knowledge to creating not just a fold-up polyhedron (you can cut one out of any sheet of paper) but a mechanism that would perform that folding process in one smooth movement. The result is the network of hinged arms around the polyhedron tuned to push lightly and evenly and seal it up.

In testing, the RAD successfully captured some moon jellies in a pool, then at around 2,000 feet below the ocean surface was able to snag squid, octopus, and wild jellies and release them again with no harm done. They didn’t capture the octopus on camera, but apparently it was curious about the device.

Because of the RAD’s design, it would work just as well miles below the surface, the researchers said, though they haven’t had a chance to test that yet.

“The RAD sampler design is perfect for the difficult environment of the deep ocean because its controls are very simple, so there are fewer elements that can break,” Teoh said.

There’s also no barrier to building a larger one, or a similar device that would work in space, he pointed out. As for current applications like sampling of ocean creatures, the setup could easily be enhanced with cameras and other tools or sensors.

“In the future, we can capture an animal, collect lots of data about it like its size, material properties, and even its genome, and then let it go,” said co-author David Gruber, from CUNY. “Almost like an underwater alien abduction.”

18 Jul 2018

‘Underwater Pokéball’ snatches up soft-bodied deep dwellers

Creatures that live in the depths of the oceans are often extremely fragile, making their collection a difficult affair. A new polyhedral sample collection mechanism acts like an “underwater Pokéball,” allowing scientists to catch ’em all without destroying their soft, squishy bodies in the process.

The ball is technically a dodecahedron that closes softly around the creature in front of it. It’s not exactly revolutionary except in that it is extremely simple mechanically — at depths of thousands of feet, the importance of this can’t be overstated — and non-destructive.

Sampling is often done via a tube with moving caps on both ends into which the creature must be guided and trapped, or a vacuum tube that sucks it in, which as you can imagine is at best unpleasant for the target and at worst, lethal.

The rotary actuated dodecahedron, or RAD, has five 3D-printed “petals” with a complex-looking but mechanically simple framework that allows them to close up simultaneously from force applied at a single point near the rear panel.

“I was building microrobots by hand in graduate school, which was very painstaking and tedious work,” explained creator Zhi Ern Teoh, of Harvard’s Wyss Institute, “and I wondered if there was a way to fold a flat surface into a three-dimensional shape using a motor instead.”

The answer is yes, obviously, since he made it; the details are published in Science Robotics. Inspired by origami and papercraft, Teoh and his colleagues applied their design knowledge to creating not just a fold-up polyhedron (you can cut one out of any sheet of paper) but a mechanism that would perform that folding process in one smooth movement. The result is the network of hinged arms around the polyhedron tuned to push lightly and evenly and seal it up.

In testing, the RAD successfully captured some moon jellies in a pool, then at around 2,000 feet below the ocean surface was able to snag squid, octopus, and wild jellies and release them again with no harm done. They didn’t capture the octopus on camera, but apparently it was curious about the device.

Because of the RAD’s design, it would work just as well miles below the surface, the researchers said, though they haven’t had a chance to test that yet.

“The RAD sampler design is perfect for the difficult environment of the deep ocean because its controls are very simple, so there are fewer elements that can break,” Teoh said.

There’s also no barrier to building a larger one, or a similar device that would work in space, he pointed out. As for current applications like sampling of ocean creatures, the setup could easily be enhanced with cameras and other tools or sensors.

“In the future, we can capture an animal, collect lots of data about it like its size, material properties, and even its genome, and then let it go,” said co-author David Gruber, from CUNY. “Almost like an underwater alien abduction.”