Year: 2018

Google, more recently by way of parent company Alphabet, has been a prolific investor in startups across the globe by way of entities like GV and CapitalG. Today, it announced its newest effort in this area, specifically outside of the US. The search and Android giant is partnering with Orange Digital Ventures, the corporate venture fund of the French carrier Orange, on a new effort to find, fund, and potentially acquire startups in the EMEA region, and specifically in the areas of the internet of things, cybersecurity, cloud services, AI, fintech and connectivity solutions.

The two are not disclosing a specific fund size, nor are they talking about any financial terms in this deal at this point, except to note that the investments could potentially be made at any stage, from seed to growth, depending on the startup in question.

The two expect the first investments to be announced later this year.

“Our goal is to join forces in financing the most promising digital startups,” said Marc Rennard, the CEO of Orange Digital Ventures (ODV), said in an interview. “We will then work together to qualify them, and when a common interest is there, we will join forces to invest in them.”

To be clear, Google has confirmed to me that this is not an extension of GV or CapitalG but activity out of its corporate development arm, which also makes investments into companies when they are viewed as strategic to Google and a potential route to an acquisition. (One, slightly outsized, example of one these investments in a third party would be Google’s $1.1 billion deal to buy a part of HTC.)

“We are delighted to support Orange’s ecosystem of start-ups and innovation and to explore alongside them opportunities for co-investment in Europe, Africa and the Middle East (EMEA),” said Carlo d’Asaro Biondo, EMEA President of Google Partnerships, in a statement. “Orange’s ecosystem is consistent with Google’s know-how and our ability to accelerate the growth of start-ups. This partnership is a way to enhance our collective contribution to innovation in this region.”

Indeed, in a sense, the deal is mutually beneficial for both sides.

On the part of Google, the company has strong dealflow and outreach particularly among US startups, in keeping with it being based there, and when it comes to GV or CapitalG either in the US, Europe, or elsewhere, the efforts are not intended primarily to be strategic to Google’s own interests. But when it comes to connecting with startups in EMEA that might be useful companies for Google to work with and potentially acquire to expand its business, it may not be seeing as many of those as it wants to.

Rennard said that Orange, on the other hand, gets on average around 1,200 startups pitching it for investment each year, and that’s before you consider startups that might get introduced through other VCs it works with already like Partech.

The thinking here is that working with Google will help ODV better filter some of those opportunities to make sure that the most interesting startups with the most potential get spotted and backed, and also to help Orange and Google both get in on the best deals in what appears to be a competitive investing environment at the moment.

“Have we missed opportunities? Yes. Can we improve? Yes. Could we have invested in an Amazon or Google before they became what they are now? Yes, and maybe we should have,” said Rennard. He also admitted that Orange has found it a challenge to get in on some of the more obvious and interesting startups in EMEA.

“From time to time, it’s difficult to have a place at the table. When a startup decides to call for investors, they might cover all their needs from others, without any possibility of us entering too,” he said. “But with Google plus Orange, I think the company will think twice before rejecting us, so it may help us.”

Orange and Google have been working together for some 10 years already in other aspects of their businesses including developing and building out connectivity solutions in Africa, which has also extended into developing cheap handsets together, and this investment plan is an extension of that as well.

Orange is no stranger to trying to work closer with tech companies to bring some of their ethos, culture, and rapid customer growth to their business — which, like many large carriers, continues to bring in huge amounts of cash and strong margins, but is often based on legacy services and therefore runs the risk of shrinking, being curtailed by regulators, or simply becoming less appealing to consumers. Previously, the company also partnered with Facebook to develop an infrastructure accelerator, also focused on emerging markets.

ODV was first established back in 2015 as a $23 million fund for early stage investments, a way for Orange to gain a better foothold in Silicon Valley. The carrier has also partnered with a number of other third parties, such as ad giant Publicis, to invest in companies that could potentially serve them to bring more cutting-edge technology into their businesses.

imToken, which claims to be the world’s largest Ethereum wallet, will focus on expanding in Asia and the United States after raising a $10 million Series A from IDG Capital, it announced today. The capital will also be used to add new features, including support for Bitcoin, EOS and other blockchains.

imToken is the latest addition to IDG Capital’s cryptocurrency investments, which include Coinbase and Circle. In a press statement, IDG Capital partner Young Guo said “imToken has developed its product into one of the top crypto asset wallets in the world with such a sound reputation. We believe it will become a significant infrastructure for the tokenization manifesto, benefitting both the crypto economy and blockchain technology. We’re excited to back imToken.”

Founded in 2016 by chief executive officer Ben He and based in Hangzhou, imToken’s core market is currently China. The company supports 30,000 tokens, claims more than 4 million monthly active users and says it handled $35 million in pass-through transactions last year.

He tells TechCrunch that the company will use its new capital to study local regulations and launch imToken 2.0 international in new markets. It will focus first on Southeast Asia before looking toward other Asian countries, like Korea, Japan and India, where “regulations are maturing quickly and as a result we’re doing our due diligence amid increasing scrutiny from local governments,” He says.

Then imToken will concentrate on countries in Africa, including Nigeria, where they already have a user base. Its expansion into the U.S. will happen at the same time as the rest of its international roll out.

In addition to the imToken wallet, the company’s services also include Tokenlon, an in-app decentralized exchange in partnership with Kyber Network and 0x, and DApp store, a marketplace for decentralized mobile apps.

In its new markets, especially the U.S., imToken will face several established competitors, including digital services MyEtherWallet, Coinbase and Ledger Nano and a host of hardware wallets. He is sanguine about the competition, saying that the goal of all blockchain companies is to move the technology forward and that imToken has built positive relationships with its rivals.

He adds that imToken’s advantage, however, is “taking a step further than our competitors, as we’re focused on building an ecosystem within imToken for all our users.” The company wants to “move toward a blockchain-agnostic stage,” which means users will be able to store different assets in one imToken wallets. Then it wants to lower the barrier for entry into blockchain tech by making it easier to manage assets across different platforms, including peer-to-peer transactions and merchant payments, with imToken 2.0 International.

Fresh from agreeing its largest acquisition to date with a deal to buy European payment firm iZettle for $2.2 billion, PayPal is on the investment hunt once again after it backed India’s Pine Labs with a $125 million round.

The financing jointly comes from PayPal and Temasek, the sovereign investment fund from the Singaporean government with over $200 billion in assets. Both will take undisclosed “minority shares” in Pine Labs. Sequoia made a seed investment in 2009 and it remains the startup’s largest-single investor, the VC firm said.

The new deal takes New Delhi-based Pine Labs to $208 million raised from investors to date. It previously closed an $82 million investment from PE funds Actis and Altimeter Capital in March of this year at a reported valuation of $900 million. Recent reports speculated on the Temasek investment (but not PayPal) which would give Pine Labs a valuation of over $1 billion, thus vaulting it into the global ‘unicorn’ club. A spokesperson declined to give a confirmed valuation for the latest deal.

Like iZettle, Pine Labs offers a point-of-sale device that covers debit and credit cards, as well as new and increasingly popular digital payment methods that include mobile wallets, and services that support Indian government project UPI. Rather than other traditional POS devices that are common across India, Pine Labs’ is smart and cloud-based.

While that product gives it distribution, the company offers a suite of services for retailers and SMEs which include customer analytics, a transaction dashboard, and loan services. The company’s notable public-facing clients include retailer Croma, Nike, McDonald’s, Apple, KFC, Sony and Samsung.

Since that last investment in March, there’s been a change at the top. Pine Labs appointed board member Vicky Bindra, a former executive with Visa, MasterCard and GE Capital, as its CEO in April to go after international expansion and new services for consumers and banks. That’s also how this new capital will be spent, the company confirmed in an announcement.

In a statement, Bindra said Pine Lab’s annualized transaction volume is $15 billion through a base of around 300,000 payment points. He added that the business is “on track to originate over $1 billion USD of instant loans at point-of-sale terminals for card issuers and partner NBFCs this fiscal year.”

“We’re teaming up with Temasekand PayPal at a time when the Indian payments market is at an inflexion point. We are a leader in the offline payments space, a position that is critical in enabling the ecosystem of online payment products. The investments will help us move a step closer to our vision for building a world-class merchant-centric payments ecosystem,” Pine Labs founder Lokvir Kapoor added via a statement.

While coding bootcamps may be in the middle of a shakeout, technology companies around the world are still going to be struggling to fill slots with people equipped with the skills to tackle real-world problems right from the get-go — and Dan Sommer hopes the answer is through universities.

That’s the premise behind Trilogy Education, which today said it is raising another $50 million round after raising $30 million last year. This round is led by Highland Capital Partners, with participation from new investorsDan Sommer and Macquarie Group. The company works with around 35 universities to identify skills gaps that they can fill with programs — such as through continuing education — that can get students ready to work at a variety of technology companies right away. Throughout all this, the startup works to collect data and feedback on each course and tune it as workforce needs change over time.

“The mission of these institutions through these programs is to open access to new types of learning,” Sommer said. “The average age of the student that takes one of these programs is approximately 32. We have students in classes that are 19 and some that are 76. If you zoom out and you think about the transformation that’s happening overall in the workforce, and you think about the number of open positions in the areas, that’s where we focused. I believe universities are the place where individuals should go to learn new skills.”

All this is increasingly relevant as tasks that machine learning-driven tools can tackle — such as autonomous driving — may end up displacing millions of jobs and requiring those individuals to learn a new set of skills in order to find some new employment. Companies are internally recognizing that in some ways, such as through tools like Degreed, which look to help employers identify those same skills gaps and find ways to train their own employees to fulfill those more complex knowledge worker roles. Degreed raised $42 million earlier this year, and there are still other programs like MissionU (which raised $8.5 million late last year) looking to rethink education as the tech economy booms.

Still, there has indeed been a shakeout in the coding bootcamp world. Whether a product of just not keeping up with workforce demands or struggling business models, there have been several that have shut down. Galvanize in August last year said it would lay off around 11% of its staff, while Dev Bootcamp and Iron Yard shut down altogether. And for some employers, all it takes is a few bad interviews from one of those bootcamps to lay down a layer of pessimism across the board, depending on who you talk to out here in the Valley.

That may be why Trilogy Education is partnering directly with universities. By doing that and running the programs through those universities, it can piggyback on the substantial brand equity they’ve built up over time. Trilogy Education says it gathers feedback from each class — either through surveys or other data points — and uses that to provide its university partners with robust reports on ways to tune the model and what specific roles to go after for potential programs. Trilogy Education works with programs in UI/UX, data analytics and visualization, cybersecurity and web development. The curriculum itself is developed centrally in Github. The goal here is to ensure that the programs are future-proofed and to “teach students how to learn,” Sommer said.

That software extends to the programs’ connections with students as well. Trilogy Education helps track student performance, helping universities identify which students might be falling behind and need additional tutoring. For students that are outperforming, it helps connect them with the resources to progress even faster and potentially begin teaching some elements themselves as a way to acquire additional soft skills in addition to the core program.

“The sincerest sign of learning is when a student that has learned Angular in class all of the sudden builds a portfolio project in React,” he said. “We’re focused on teaching people how to learn more so than teaching people how to learn any particular technology or skill. We’ve made over 7,000 changes to the curriculum over the last 3 years. It’s truly a piece of software, it changes over time. We bring in a market-driven curriculum fully vetted through the institution.”

New York-based chore wizard Hello Alfred is about expand its mission to make life easier, one to-do list at a time. The company commands a small army of thoroughly trained home helpers who take care of domestic tasks like sorting mail, taking out the trash and picking up groceries. Those helpers pop by on a weekly basis, and subscribers pay a monthly subscription fee to free their lives of little things that tend to add up to more than the sum of their parts.

Now, with a new $40 million Series B round, Hello Alfred is set to scale. The round was led by investors including real estate developers Divco West and Invesco. Spark Capital and New Enterprise Associates (NEA) also participated in the $40 million round after previously investing in the company. The company won our Startup Battlefield at Disrupt in 2014, back when it was just “Alfred .”

With its Series B, Hello Alfred will execute its plan to expand from serving 10,000 homes (some in Alfred partnered apartment buildings) to serving 100,000 by the end of the year. The company also intends to invest further in its technology data operations and its own line of home goods, known as Alfred Home Essentials.

Hello Alfred began in New York and currently operates in New York, New Jersey, Connecticut, Boston, Washington D.C., San Francisco, Chicago and Los Angeles with planned launches in Atlanta, Austin, Dallas, Denver, Houston, Miami, Portland, Raleigh and San Jose on the horizon. The company also intends to double the size of its team in 2018 while continuing to expand partnerships with vendors and products and real estate developers that fit its brand.

While many startups work to to automate away the human aspect of their business, Hello Alfred is all about the human touch. Instead of relying on contractors à la TaskRabbit or so many other services in the on-demand economy, Hello Alfred’s “Home Managers” are all full-time W-2 employees. Those workers get to know their clients, developing familiarity that ideally leads to even better hospitality over time.

Another thing that sets Hello Alfred apart: It’s profitable. The company opted to scale slowly, paying employee salary out of the profits it’s been generating since launch. With investors interested and a sustainable business model that could do without them anyway, Hello Alfred seems to be hitting its stride.

Nokia has closed the books on its unlucky foray into digital health devices and services, and with it, a business is marking its return to the world of startups. Today, the Finnish telecoms giant announced that it has closed the sale of its digital health division, along with 200 employees, to Eric Carreel, the former chairman and co-founder of Withings. Now Carreel plans to relaunch the business once again under the Withings brand by the end of this year, with products focused on preventive health.

Withings had formed the core of Nokia’s digital health business after it acquired the company, famous for its smart scales, in 2016 for €170 million. Nokia later rebranded the business as Nokia Digital Health.

“I am delighted to start working again with the brilliant teams that made the brand such a great success” said Carreel in a statement. “We have an exciting challenge ahead of us as we continue to push the boundaries of connected health.”

The deal comes less than a month after Nokia announced that it had entered into exclusive negotiations with Carreel for the sale, part of a larger reorganization at the company to refocus away from unprofitable businesses.

There were no financial terms revealed in the sale, nor any details about how the new Withings will be financed. (We are asking.) In its previous incarnation as a startup before its exit to Nokia, Withings had raised just under $34 million with investors including Bpifrance, Ininvest and and Ventech starting in 2008. The new startup will be based out of Paris with operations also in the U.S. and Asia.

Alongside the news about Withings, there are some executive changes at Nokia, too.

Gregory Lee — who joined the Nokia Technologies division in part to restructure the business by hiving off unprofitable operations like digital health — is now leaving the company altogether. Maria Varsellona, who is the company’s Chief Legal Officer, will now also be the president of Nokia Technologies.

This change makes some (disheartening) sense: Nokia has a huge trove of patents from its long history, which included helping forge and for a long time leading the mobile phone industry. While Nokia’s mobile phone business eventually collapsed, quite dramatically, it has held on to a number of patents, and has added to that in recent years. And this is why it is unsurprising to have Nokia’s legal head also leading its Technologies division: it shows where the company’s priorities are today. 

Back at Withings, in addition to connected scales, the company today makes activity tracking watches, blood pressure monitors, a smart thermometer, and a sleep tracking pad, which work with an app it calls Health Mate. The focus on preventive health sounds like it will keep all of these in place.

The story of hardware startups is one of many optimistic and often exciting ideas, but also a lot of failures, as the realities set in of developing supply chains, trying to find the right economies of scale and of course finding customers for your shiny new gadgets. Withings is some way out of the initially hard part of simply getting products designed, working, made and out into the market, but it will still have to contend with keeping the business operating and growing — challenges that Nokia clearly could not surmount.

One thing in its favor is the rise of AI and the general expansion of possibilities that come with all the data that can now be collected. Putting aside clunkers like Theranos, a number of startups — such as Ava, which is focusing on women’s health — have been exploring not just what kind of data they can gather from wearables and other devices, but how to “read” that data and match it up with new understanding about disease pathology and health, to gain more insights about us and how we work.

This seems to be the direction that Withings hopes to go, too.

“We are still only just starting to discover what connected health can really bring to people,” said Carreel in a statement. “From now on we must concentrate our efforts on developing tools capable of advanced measurements and the associated services that can help prevent chronic health conditions. Today’s technologies allow us to imagine solutions that have the potential to benefit the lives of millions of people, and our ambition is to ensure that we, as Withings, lead the way with technological advances and intuitive designs.”

General Motors today announced a large investment into its self-driving unit, Cruise. SoftBank’s Vision Fund will invest $2.25 billion in GM Cruise Holdings LLC and when the deal closes, GM will invest an additional $1.1 billion. The investments are expected to inject enough capital into Cruise for the unit to reach commercialization at scale beginning in 2019.

“Our Cruise and GM teams together have made tremendous progress over the last two years,” said GM Chairman and CEO Mary Barra . “Teaming up with SoftBank adds an additional strong partner as we pursue our vision of zero crashes, zero emissions and zero congestion.”

“GM has made significant progress toward realizing the dream of completely automated driving to dramatically reduce fatalities, emissions and congestion,” said Michael Ronen, managing partner, SoftBank Investment Advisers. “The GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage. We are very impressed by the advances made by the Cruise and GM teams, and are thrilled to help them lead a historic transformation of the automobile industry.”

The investments will be made in stages. When the transaction closes, the Vision Fund will invest $900 million, and when Cruise is ready for commercial deployment, the fund will provide the remaining $1.35 billion. When closed, SoftBank’s Vision Fund will own a 19.6-percent equity stake in GM’s Cruise.

General Motors purchased the San Francisco-based startup in 2016 for $581 million. Since then, General Motors has reportedly let the unit operate largely on its own. At the time, GM President Dan Ammann told TechCrunch the car maker intended to integrate Cruise’s technology within its fleet of vehicle brands as soon as possible.

Since being acquired by GM, Cruise seems to be, well, cruising. The company had 30 self-driving test cars on the road in 2016 and later rolled out a high-definition mapping system. In 2017 the company started running an autonomous ride-hailing service for its employees in San Francisco, later announcing its self-driving cars would hit New York City.

We took a ride in one of Cruise’s self-driving Chevy Bolts in 2017 and found it a good taste of the future. And now that Softbank’s Vision Fund and GM is dumping billions into the company, that tasty future seems closer than ever.

Virtru, the security startup that came out of research at the NSA, announced a $37 million Series B financing round today led by Iconiq Capital.

The company also announced the formation of Virtru Labs, an entity to be led by company co-founder and CTO Will Ackerly. The Lab will act as an innovation engine for the company, while trying to make Virtru’s underlying technology, Trusted Data Format (TDF), an industry standard for exchanging data securely in a similar manner that PDF developed into a standard way of exchanging documents.

CEO and co-founder John Ackerly (and brother of Will) says this has been a goal since the earliest days of the company and starting the lab is one of the reasons they wanted to raise this round. “My brother and I firmly believe you need an open framework in order to achieve the vision of true default security,” he told TechCrunch.

They believe by investing time and dollars to get third parties to adopt the TDF and adopting all tiers of this data format, it could remove the friction we have today when data is being shared across systems, while eliminating vendor lock-in.

The company currently offers tools for end-to-end email encryption in G-Suite and Office 365, but they hope to expand to file sync and share applications and chat. They also want to promote technical partnerships through the SDK they launched earlier this year. Finally, they want to expand globally by growing a channel partner system.

Ackerly says all of that takes money and that’s why they went looking for this round. It didn’t hurt that the company has experienced explosive growth over the last year adding 3000 new customers for a total of over 8000 using their products, while tripling revenue (they did not provide an exact figure).

Ackerly says one of the reasons for this growth is an increasing desire on the part of users to have a trust mechanism for sharing information online. “If you look at our partnership with Google, with Microsoft, with Amazon; these are all platform companies that are coming to grips with this privacy imperative. We are in a crisis of trust as a society and Virtru has always taken the approach of partnering closely because these workflows matter to end users,” he said. He adds that this really wouldn’t work if the company tried to create a new set of tools.

Vitru has around 80 employees today and Ackerly expects that to grow by around 50 percent over the coming year as they move into new markets, grow the lab and expand channel and partner support.

The round was led by Iconiq Capital with participation from returning investors Bessemer Venture Partners, New Enterprise Associates, Samsung, Blue Delta Capital, and Soros Capital. Today’s round brings the total raised to over $76 million since the company was founded in 2011.

Researchers at Newcastle University have been able to 3D-print a biocompatible corneal framework using a new gel formulations that “keeps the stem cells alive whilst producing a material which is stiff enough to hold its shape but soft enough to be squeezed out the nozzle of a 3D printer.”

There is a significant shortage of corneas available to transplant, with 10 million people worldwide requiring surgery to prevent corneal blindness as a result of diseases such as trachoma, an infectious eye disorder,” wrote the researchers. “In addition, almost 5 million people suffer total blindness due to corneal scarring caused by burns, lacerations, abrasion or disease.”

The product uses “human corneal stromal cells” from a donor cornea mixed with alginate and collagen to create bio-ink that can turn into a living cornea. This means that one donor cornea can help multiple patients.

““This builds upon our previous work in which we kept cells alive for weeks at room temperature within a similar hydrogel. Now we have a ready to use bio-ink containing stem cells allowing users to start printing tissues without having to worry about growing the cells separately,” said researcher Che Connon. He built the technology with Dr. Steve Swioklo.

The corneas take ten minutes to print on a cheap 3D printer, a vast improvement on previous efforts. Further, the gel can keep stem cells alive for days, allowing you to print a few corneas over the course of a week.

“This builds upon our previous work in which we kept cells alive for weeks at room temperature within a similar hydrogel. Now we have a ready to use bio-ink containing stem cells allowing users to start printing tissues without having to worry about growing the cells separately,” said Connon.

Pinterest is continuing its push into video as a potential avenue for advertisers by today saying that it will offer advertisers a promoted video tool that takes up the width of the entire screen.

While Pinterest normally offers users a grid that they can flip through — compressing a lot of content into a small space — taking up the full width of the screen with a promoted video would offer advertisers considerable real estate if they’re looking to get the attention of users. Pinterest pitches itself to advertisers as a strong alternative to Facebook or Google, giving marketers a way to reach an audience that behaves a little more differently than when on those other platforms and coming to Pinterest to discover new things.

The company also said it’s hired Tina Pukonen as an entertainment strategist and Mike Chuthakieo as an industry sales lead. Pinterest says more than 42 million people in the U.S. come to Pinterest for entertainment ideas, and that potential tool offers an interesting niche opportunity for advertisers to capture the attention of a user for a product — say, a movie — that needs a lot of awareness marketing. Getting a user’s attention for just a few seconds can be more than enough time to at least plant the seed of potentially buying a product down the line.

It’s that argument that what gives Pinterest potential value for advertisers. The company offers an array of advertising products designed to target users at all phases of a potential buying cycle, whether that’s just clicking around on the platform looking for ideas down to actually saving an idea or buying it — through Pinterest or through a referral. Most of Pinterest’s content consists of images and other content from brands or businesses. That makes sense given that it’s a place where people tend to go to plan life events, whether that’s parties, or weddings, or home improvement — and those events center around products that they may in theory one day buy. All the while Pinterest is accumulating a lot of different plays at advertising products and an experienced level of senior hires, including hiring its first COO Françoise Brougher, who was the former VP of SMB global sales and operations at Google and business lead at Square.

Pinterest, interestingly, seems to have been a little more tolerant of making what might seem like small design changes but may have substantial user implications. The company added a tab for followers at the bottom of the app, shaking up what is often seen as a core navigation bar for any app. But the company continues to grow, crossing 200 million monthly active users in September last year.