Year: 2018

17 May 2018

House committee accepts amendment to uphold ZTE ban

The bizarre recent tale of ZTE is getting another wrinkle. Earlier today, a bipartisan House Appropriations Committee unanimously voted to accept an amendment to uphold sanctions against the company.

The amendment to the 2019 Commerce, Justice, and Science Appropriations bill is, of course, being viewed as a rebuke of the president, whose tweets over the weekend appeared to suggest a softening on the seven-year ban imposed by the Department of Commerce last month.

In fact, the amendment’s author, Rep. Dutch Ruppersberger of Maryland, called out Trump by name on social media, adding in a press release tied to the news, “This amendment, which passed with the unanimous support of my colleagues on both sides of the aisle, shows that, when the United States enacts sanctions, we stand behind them.”

Perhaps unsurprisingly, the release name checks not just the sanctions violations that led to the export ban, but also claims of spying that have put the company in the crosshairs of U.S. intelligence agencies. It’s a complicated series of events that I went into a bit more detail over here.

Trump, meanwhile, surprised the world by suggesting that he was working with the Chinese president to help ZTE find a way around the seven-year ban that has threatened to wipe the company off the map. The president cited job losses in China as his major motivator. That statement was met with bipartisan disapproval and Trump appeared to walk it back yesterday in another tweet, accusing The Washington Post and CNN of writing “false stories.”

It’s clear, however, that ZTE is being viewed as an important stumbling block as trade tensions increase between the two superpowers. The bill carrying the new amendment will come under consideration by the House of Representatives next month. 

17 May 2018

Meet Alchemist Accelerator’s latest demo day cohort

An IoT-enabled lab for cannabis farmers, a system for catching drones mid-flight and the Internet of Cows are a few of the 17 startups exhibiting today at Alchemist Accelerator’s 18th demo day. The event, which will be streamed live here, focuses on big data and AI startups with an enterprise bent.

The startups are showing their stuff at Juniper’s Aspiration Dome in Sunnyvale, California at 3pm today, but you can catch the whole event online if you want to see just what computers and cows have in common. Here are the startups pitching onstage.

Tarsier – Tarsier has built AI computer vision to detect drones. The founders discovered the need while getting their MBAs at Stanford, after one had completed a PhD in aeronautics. Drones are proliferating. And getting into places they shouldn’t — prisons, R&D centers, public spaces. Securing these spaces today requires antiquated military gear that’s clunky and expensive. Tarsier is all software. And cheap, allowing them to serve markets the others can’t touch.

Lightbox – Retail 3D is sexy — think virtual try-ons, VR immersion, ARKit stores. But creating these experiences means creating 3D models of thousands of products. Today, artists slog through this process, outputting a few models per day. Lightbox wants to eliminate the humans. This duo of recent UPenn and Stanford Computer Science grads claim their approach to 3D scanning is pixel perfect without needing artists. They have booked $40,000 to date and want to digitize all of the world’s products.

Vorga – Cannabis is big business — more than $7 billion in revenue today and growing fast. The crop’s quality — and a farmer’s income — is highly sensitive to a few chemicals in it. Farmers today test the chemical composition of their crops through outsourced labs. Vorga’s bringing the lab in-house to the cannabis farmer via their IoT platform. The CEO has a PhD in chemical physics, and formerly helped the Department of Defense keep weapons of mass destruction out of the hands of terrorists. She’s now helping cannabis farmers get high… revenue.

Neulogic – Neulogic is founded by a duo of Computer Science PhDs that led key parts of Walmart.com product search. They now want to solve two major problems facing the online apparel industry: the need to provide curated inspiration to shoppers and the need to offset rising customer acquisition costs by selling more per order. Their solution combines AI with a fashion knowledge graph to generate outfits on demand.

Intensivate – Life used to be simple. Enterprises would use servers primarily for function-driven applications like billing. Today, servers are all about big data, analytics and insight. Intensivate thinks servers need a new chip upgrade to reflect that change. They are building a new CPU they claim gets 12x the performance for the same cost. Hardware plays like this are hard to pull off, but this might be the team to do it. It includes the former co-founder and CEO of CPU startup QED, which was acquired for $2.3 billion, and a PhD in parallel computation who was on the design team for the Alpha CPU from DEC.

Integry – SaaS companies put a lot of effort into building out integrations. Integry provides app creators their own integrations marketplace with pre-boarded partners so they can have apps working with theirs from the get go. The vision is to enable app creators to mimic their own Slack app directory without spending the years or the millions. Because these integrations sit inside their app, Integry claims setup rates are significantly better and churn is reduced by as much as 40 percent.

Cattle Care – AI video analytics applied to cows! Cattle Care wants to increase dairy farmers’ revenue by more than $1 million per year and make cows healthier at the same time. The product identifies cows in the barn by their unique black and white patterns. Algorithms collect parameters such as walking distance, interactions with other cows, feeding patterns and other variables to detect diseases early. Then the system sends alerts to farm employees when they need to take action, and confirms the problem has been solved afterwards.

VadR – VR/AR is grappling with a lack of engaging content. VadR thinks the cause is a broken feedback loop of analytics to the creators. This trio of IIT-Delhi engineers has built machine learning algorithms that get smarter over time and deliver actionable insights on how to modify content to increase engagement.

Tika – This duo of ex-Googlers wants to help engineering managers manage their teams better. Managers use Tika as an AI-powered assistant over Slack to facilitate personalized conversations with engineering teams. The goal is to quickly uncover and resolve employee engagement issues, and prevent talent churn.

GridRaster – GridRaster wants to bring AR/VR to mobile devices. The problem? AR/VR is compute-intensive. Latency, bandwidth and poor load balancing kill AR/VR on mobile networks. The solution? For this trio of systems engineers from Broadcom, Qualcomm and Texas Instruments, it’s about starting with enterprise use cases and building edge clouds to offload the work. They have 12 patents.

AitoeLabs – Despite the buzz around AI video analytics for security, AitoeLabs claims solutions today are plagued with hundreds of thousands of false alarms, requiring lots of human involvement. The engineering trio founding team combines a secret sauce of contextual data with their own deep models to solve this problem. They claim a 6x reduction in human monitoring needs with their tech. They’re at $240,000 ARR with $1 million of LOIs.

Ubiquios – Companies building wireless IoT devices waste more than $1.8 billion because of inadequate embedded software options making products late to market and exposing them to security and interoperability issues. The Ubiquios wireless stack wants to simplify the development of wireless IoT devices. The company claims their stack results in up to 90 percent lower cost and up to 50 percent faster time to market. Qualcomm is a partner.

4me, Inc. – 4me helps companies organize and track their IT outsourcing projects. They have 16 employees, 92 customers and generate several million in revenue annually. Storm Ventures led a $1.65 million investment into the company.

TorchFi – You know the pop-up screen you see when you log into a Wi-Fi hotspot? TorchFi thinks it’s a digital gold mine in the waiting. Their goal is to convert that into a sales channel for hotspot owners. Their first product is a digital menu that transforms the login screen into a food ordering screen for hotels and restaurants. Cisco has selected them as one of 20 apps to be distributed on their Meraki hotspots.

Cogitai – This team of 16 PhDs wants to usher in a more powerful type of AI called continual learning. The founders are the fathers of the field — and include professors in computer science from UT Austin and U Michigan. Unlike what we commonly think of as AI, Cogitai’s AI is built to acquire new skills and knowledge from experience, much like a child does. They have closed $2 million in bookings this year, and have $5 million in funding.

LoadTap – On-demand trucking apps are in vogue. LoadTap explicitly calls out that it is not one. This team, which includes an Apple software architect and founder with a family background in trucking, is an enterprise SaaS-only solution for shippers who prefer to work with their pre-vetted trucking companies in a closed loop. LoadTap automates matching between the shippers and trucking companies using AI and predictive analytics. They’re at $90,000 ARR and growing revenue 50 percent month over month.

Ondaka – Ondaka has built a VR-like 3D platform to render industrial information visually, starting with the oil and gas industry. For these industrial customers, the platform provides a better way to understand real-time IoT data, operational and job site safety issues and how reliable their systems are. The product launched two months ago, they have closed three customers already and are projecting ARR in the six figures. They have raised $350,000 in funding.

17 May 2018

Technology innovation on the second half of the chessboard

EarthNow recently announced a $1 billion investment, perhaps the largest-ever Series A financing round, to build a global constellation of satellites. Ant Financial announced plans to raise $9 billion at an expected $150 billion valuation, making it the most highly valued privately held company. Last year, SoftBank embarked on a $100 billion investment fund, 30 times larger than any prior venture fund.

The venture industry is scrambling to respond. Several established funds, including Sequoia, Khosla, Norwest and Battery, have recently announced by far their largest funds raised to date. Valuations and round sizes have doubled on average in the past five years.

The speed and magnitude with which technology innovation is moving is mind-boggling, even for those of us who have worked at the center of it for decades. Staid industries for which technology seemed irrelevant are transforming themselves or being disrupted by the Connected World, innovation made possible by the confluence of cloud, mobile, sensor and artificial intelligent technologies. McKinsey has noted that the internet-impacted industries represent 15 percent of our economy. The Internet of Things will impact the rest with a potential economic impact of $11 trillion by 2025.

Technology innovation is now a global village. China has moved from a technology laggard to fast follower to leader within the span of two decades. This year, venture investment in China is likely to surpass U.S. venture investment for the first time. Europe is producing cutting edge technology and companies; the Spotify IPO ago is just the latest example. Venture investors in Silicon Valley used to apply the bridge rule: If an investment involved crossing a bridge, then it was out of scope. Now many of us apply the two-flight rule: Any investment is fair game if it can be reached within two flights.

And yet we are left to ponder: Has the market run amok? Otherwise, what fundamentals are driving the longest bull run in venture history? Brynjolfsson and McAfee from MIT offer some perspective in “The Second Machine Age: Work, Progress, and Prosperity in a Time of Brilliant Technologies.”

First, they note that innovation is accelerating as we approach the “second half of the chessboard.” This analogy applies a parable to Moore’s Law. The game of chess originated during the sixth century in present day India during the Gupta Empire. As the story goes, the emperor was so impressed by the difficult, beautiful game that he invited the inventor to name his reward. The inventor said, “All I desire is some rice to feed my family,” and proposed to start with one grain of rice on the first square and double the grains of rice in each succeeding square.

Impressed with the inventor’s apparent modesty, the emperor replied, “make it so.” If the request were fully honored, the inventor would receive 1.8 x 10^19 grains of rice by the 64th square, more rice than has been produced in the history of the world. The midpoint of the board would receive 4 billion grains of rice, about one large field’s worth of rice. It was only as they headed into the second half of the chessboard that at least one of them got into trouble.

The range of possible innovations for aspiring entrepreneurs are broader than they have ever been.

Geoffrey Moore first proposed what has become Moore’s Law — the doubling of compute power every two years — in 1965. Moore initially indicated that he could foresee this pattern persisting at least 10 years.  Moore’s “Law” is merely a guideline, yet it has proven to be reliable over the past 50 years, and experts indicate it is likely to persist for another 10-15 years. If applied from the invention of semiconductors in 1958, then we are currently on the 30th square — rapidly approach the second half of the chessboard.

Until recently, the implications of Moore’s Law have been predictable. I first extrapolated Moore’s Law out 10-15 years starting in the 1990s. One could readily envision the miniaturization of computers, the rise of smart phones and Dick Tracy watches, the proliferation of sensors, higher processing speeds, storage capacity, compute power that would permit robotics, augmented intelligence and edge network computing. As we project forward, implanted devices, self-healing operations and autonomous vehicles seem imminent.

But as compute power far exceeds human capacity, it is increasingly difficult to apprehend the future implications of Moore’s Law. Much as with the emperor and inventor, the acceleration of innovations and magnitude of change puts us in promising but murkier territory as we enter the second half of the chessboard.

The second concept that Brynjolfsson and McAfee highlight is the delayed impact of fundamental innovation adoption. Pervasive utilization of the steam engine, internal combustion engine, electricity and indoor plumbing took decades, often 30-60 years. These innovations were often not adopted until new manufacturing facilities were built decades later.

We observe a similar trend in adoption of computer and internet technology. The publishing industry for books and newspapers was the most obvious application of the internet, yet it took well over a decade for our reading habits and the industry to adjust. Many would say this is still a work in progress. The financial industry is fundamentally a digital business, yet many practices remain entrenched: cash and credit card-based payments are but one example. The auto sector is just beginning to grapple with myriad new technologies. Surely the manufacturing and industrial sector will take longer still.

So two innovation trends are coinciding. Increases in compute power empower artificial intelligence, smart sensors and edge computing for the first time. Meanwhile, many industries are grappling to adopt technology available in the market for decades. The range of possible innovations for aspiring entrepreneurs are broader than they have ever been. The potential to transform industries has never been greater. More capital than ever before is available for good ideas. It is a great time to be an entrepreneur.

17 May 2018

PayPal confirms that it is buying payments startup iZettle for $2.2B in an all-cash deal

PayPal is taking its biggest bet yet on point-of-sale transactions, small businesses, and markets outside of the US, as it looks to raise its game against Square, Stripe and others in the world of payments: the company has confirmed that it is buying iZettle — the Stockholm-based payments provider commonly referred to as the “Square of Europe” — for $2.2 billion in an all-cash deal.

The deal — which is expected to close in Q3 2018 — will see iZettle’s co-founder and CEO Jacob de Geer stay on leading iZettle. He will report to PayPal’s COO Bill Ready. Others in iZettle’s exec team will also stay on to run the business, which will become a “center of excellence” for in-store and offline payments in Europe, PayPal said.

The timing of the deal is notable: it comes on the heels of iZettle filing for an IPO earlier this month (just nine days ago, in fact) in its own bid to scale out its business: iZettle had planned to raise $227 million on the Stockholm Nasdaq exchange, which would have valued the company at around $1.1 billion.

From what I understand from sources, the two had been talking “for years”. I guess the IPO filing suddenly gave those talks a new kind of urgency. And maybe double so: the news was supposed to be announced on Friday but after rumors started to leak out today the company has decided to come out with it officially.

PayPal itself has a market cap of around $94 billion and in its last earnings said it had $7.8 billion in cash, cash equivalents and investments — giving it ample funds for this deal.

iZettle becomes PayPal’s biggest-ever transaction. For some context, in 2015 PayPal acquired money-transfer startup Xoom for $890 million, and when it was still a part of eBay, in 2013, it acquired Braintree and its Venmo business for $800 million.

iZettle has operations in 12 markets, including several in northern Europe and Mexico in Latin America where PayPal doesn’t have an extensive offline presence, such as Brazil, Denmark, Finland, France, Germany, Italy, Mexico, Netherlands, Norway, Spain and Sweden. (Its Latin American expansion was made by way of a strategic investment from the Spanish bank Santander.) iZettle is very strong also in the UK, so will help PayPal strengthen its business in that market at a time when Square has finally emerged as a competitor there.

Like Square, iZettle has made a lot of headway in building out a point of sale business by way of a card-reading dongle that links up with a smartphone or tablet, working with smaller businesses that might have never used a card service in the past because of the prohibitive costs of taking card payments. From that, it has extended into other financial services for those business, from inventory management to loans.

For those who follow PayPal, you’ll know that the company has also been working hard to expand its own point-of-sale payments, both in the US and globally, although some might argue that these have not been as much of a home run for the company as its legacy online payments operations.

iZettle’s deGeer has wanted to expand the company’s horizons in the future to encompass larger businesses and also companies that do not have brick-and-mortar presences of any kind, but it’s the size and reach of iZettle’s operations precisely in existing areas that was what attracted PayPal, as complements to its existing business.

“Small businesses are the engine of the global economy and we are continuing to expand our platform to help them compete and win online, in-store and via mobile,” said PayPal President and CEO Dan Schulman in a statement. “iZettle and PayPal are a strategic fit, with a shared mission, values and culture—and complementary product offerings and geographies. In today’s digital world, consumers want to be able to buy when, where and how they want. With nearly half a million merchants on their platform, Jacob de Geer and his team add best-in-class capabilities and talent that will expand PayPal’s market opportunity to be a global one-stop solution for omnichannel commerce.”

On the side of iZettle, this will give the startup a much bigger opportunity to scale out its business as part of a global payments giant.

“Combining our assets and expertise with a global industry leader like PayPal allows us to deliver even more value to small businesses to help them succeed in a world of giants,” De Geer said in a statement. “The combination of iZettle and PayPal will provide tremendous benefits to our merchants who will have access to an even wider range of tools to help them get paid, sell smarter and grow.”

In its IPO filing, iZettle noted that it’s still operating at a loss, although those losses appeared to be narrowing. In the first three months of 2018, the company reported negative earnings before tax, depreciation and amortization of SEK73 million ($8.3 million), slightly narrower than its negative Ebitda of SEK78 million ($8.8 million). It projects Ebitda profitability by 2020.

iZettle expects to generate gross revenues (its own cut, that is) of around $165 million in 2018, with approximately $6 billion of total payment volume expected to be processed on its platform, PayPal noted. Its revenues have been growing at a compound annual growth rate of 60 percent between 2015 and 2017.

17 May 2018

Amazon picks up Nazi-hunting series produced by Jordan Peele

Amazon has given a 10-episode, straight-to-series order to The Hunt, a show created by David Weil and executive produced by Get Out writer-director Jordan Peele.

The series follows a group of Nazi hunters living in New York City in 1977, who discover a broader Nazi conspiracy. As with other contemporary stories about fighting Nazis, I’m sure this will have absolutely no resonance with our current politics and culture.

Amazon is already the home of The Man in the High Castle, an adaptation of Philip K. Dick’s alternate history novel in which the Nazis won World War II.

Deadline reports that Sonar Entertainment (which is producing the series with Peele’s Monkeypaw Productions) was in talks with another network before Amazon jumped in.

This is Amazon’s first series pickup since hiring NBC executive Jennifer Salke to take over Amazon Studios in February, following the departure of Roy Price amidst sexual harassment allegations. It also comes after Amazon CEO Jeff Bezos has reportedly pushed the studio to focus on bigger, more mainstream shows.

Peele, meanwhile, who recently won the Best Original Screenplay Oscar for writing Get Out, has a new movie in the works and is also producing Lovecraft Country for HBO.

“When David Weil first shared The Hunt with me, I immediately knew that we had to be involved,” Peele said in a statement. “It’s cathartic. It’s noir. It’s frighteningly relevant. It’s exactly what I want to see on television. I am thrilled to be working with Amazon in bringing this incredible vision to the world.”

17 May 2018

Selected’s recruiting platform matches teachers with schools they’ll love

A “dating app for teachers” is an odd but useful way to describe the startup Selected, which has just closed on $1.2 million in seed funding for its recruiting platform for educators. And, in all fairness, Selected said it first. The startup’s own website describes itself (a bit tongue-in-cheek) as a “dating app for job-seeking teachers and hiring schools.”

Before you roll your eyes at the shorthand being used here, let’s skip ahead to the main point. And that is – like dating apps – Selected takes advantage of profile-matching technology in order to help teachers find good jobs they’ll want to keep.

With Selected, this involves connecting candidates to schools based on mutual fit in terms of personal preferences, school culture, and teaching methods, among other things.

The dating app comparison didn’t just come out of nowhere, though.

The company began as a tutoring app in New York City, during which time it had teachers building out profiles where they would details their certifications and expertise. But the team found that it was schools who had interest in this app, not parents. In fact, the schools asked if they could reach out to the tutors and offer them jobs.

Seeing an opportunity, Selected pivoted to work on a teacher-to-schools matching app instead, instead of one for tutors.

Another reason for the comparison is that early employee, COO Eric Kim, was formerly a senior product manager at the dating app OKCupid.

“We started talking to him early on as we were thinking about how matching should be designed,” explains Selected co-founder and CEO Waine Tam, a Princeton grad whose own background is in software engineering and education.”[Selected is] similar to a dating app-type interface where you answer a couple of questions about what you’re looking for,” he adds.

However, Tam cautions that – also like dating apps – matches often don’t click until teachers and those hiring them meet in real life.

But Selected can at least get the process started by asking teachers to answer questions that help schools determine if they’re a fit – things like “how much do you value progressive education?” or “do you  prefer inquiry-based learning over explicit instruction?,” for example.

This is combined with the collection of more objective data schools need to know, like teachers’ certifications or where they want to work.

The company has only been through one school year cycle since its launch in May 2016, and it placed around 100 teachers through the service that was then live only in New York.

It’s since expanded to reach 10,000 teachers and over 500 pre-K-12 public and private schools. The schools signed up on its platform are largely spread across the Northeast in urban metros like NYC, Boston, Newark/Trenton/Camden, N.J., Bridgeport/New Haven, Connecticut; Philadelphia, and D.C.

The startup’s long-term goal is to help teachers find jobs they like in order to reduce turnover in the U.S. educational system.

Today, there are over 3.8 million teachers in the U.S., the company notes, making teaching one of the largest professions in the U.S. But every year, over 500,000 teachers turn over nationally – something Selected sees as an opportunity to make better matches, in the hopes of keeping teachers long-term.

One of the issues is that teachers have trouble finding jobs despite high demand because they apply to schools that have different requirements than what they bring to the table. Other times, they don’t end up in the right jobs, because the hiring process doesn’t offer a lot of transparency around critical topics, like school culture.

“The number one driver of teacher retention, or on the other side – attrition – is a poor culture match,” Tam points out.

After teachers sign up on Selected, they’re screened for certifications before being approved. Selected then helps applicants with their resumé, and offers coaching.

The teachers then just sit back and wait for schools to reach out with offers. In their first week, they receive around 5 matches, and average around 15 in total. It’s too soon to say if Selected’s hypothesis around improving teacher retention is paying off. That won’t be known for several years still.

Schools are charged a fixed fee when a teacher is hired, which is currently the only source of revenue for the company.

Propel Capital led the seed round, which included participation from Kapor Capital and other investors.

With the seed funding, Selected will continue to develop its business in the NE U.S., and, later, the rest of the country.

New York-based Selected is currently a team of four full-time and four part-time, including co-founder and CTO Luis Pazmiño.

 

17 May 2018

First speaker announcements for The Next Stage at Disrupt SF (Sept. 5-7)

One of the many new features at TechCrunch Disrupt SF (September 5-7) is the addition of another stage, which we’re calling The Next Stage. The goal of The Next Stage is to deliver more insights and wisdom to Disrupt SF attendees, especially founders, to help them navigate the startup odyssey better and faster. The Next Stage is also where much of the programming for the 13 tracks at Disrupt SF will take place.

We’re delighted to announce our first sessions on The Next Stage

Consumer brands take forever to earn consumer confidence, unless you happen to be brands like Casper, AllBirds, Birchbox, Rent-the-Runway and Brandless, which became powerful brand names almost overnight. What those brands have in common is Red Antler, a Brooklyn-based creative agency that has attained “brand whisperer” status according to Fast Company for its success standing up startup consumer brands. As a part of our New Retail track, Red Antler co-founder and chief strategist Emily Heyward will join founders Tina Sharkey (Brandless) and Philip Krim (Casper) to discuss the promise and perils of early branding efforts.

This session is part of the New Retail track at Disrupt, which includes speakers on both stages, as well as early-stage exhibiting startups in the New Retail section of Startup Alley. Founders who would like to be a part of the New Retail exhibit area can apply to the TC Top Picks program to win one of five completely free exhibit spots for New Retail startups. The editors pick the five top startups for each category, which get the exhibition space with special “TC Top Picks” signage, three free Founder Passes plus a three-minute interview on our Showcase Stage.

Click here to fill out the application, which should take about five minutes. (Note we have also launched an updated application app, which allows founders to create a single application and use it across all of TechCrunch’s programs — including Startup Battlefield.

TechCrunch will notify the TC Top Picks winners by July 20, but applications close June 29 — so don’t lose any time, apply today.

The biggest “track” of all at Disrupt SF is How Startups Succeed, and two experts will join us on The Next Stage to connect the dots. Eric Ries is author of the 2011 best seller, The Lean Startup, which has sold more than a million copies and remains a must-read for aspiring founders who hope to keep the burn to a minimum. The Lean Startup helped familiarize the world with “pivots” and other features of early-stage startup life, which in turn also helped investors place investments earlier than ever. Few understand that better than August Capital general partner David Hornik, who has 20 years of venture investing experience, launched the first blog about venture capital, (aptly named Ventureblog) and teaches the Startup Garage class at Stanford Business School (which uses the lean startup methodology). They will discuss what’s changed (and what has not) for founders since The Lean Startup was published in 2011.

All these individuals join a line-up of speakers we’ve already announced, including Dropbox CEO Drew Houston, 23andMe CEO Ann Wojcicki and Roblox CEO David Baszucki, and many more.

This is just the first of many great sessions you’ll get to see at Disrupt SF. Video of all the sessions from The Next Stage will be able available on demand only for Innovator, Insider, Investor and Founder Pass holders. Time to get your pass now and take advantage of early-bird pricing!

17 May 2018

Rackspace acquires Salesforce specialist RelationEdge

Rackspace today announced that it has acquired RelationEdge, a Salesforce implementation partner and digital agency. The companies did not disclose the financial details of the acquisition.

At first, this may sound like an odd acquisition. Rackspace is still best known for its hosting and managed cloud and infrastructure services, after all, and RelationEdge is all about helping businesses manage their Salesforce SaaS implementations. The company clearly wants to expand its portfolio, though, and add managed services for SaaS applications to its lineup. It made the first step in this direction with the acquisition of TriCore last year, another company in the enterprise application management space. Today’s acquisition builds upon this theme.

Gerard Brossard, the executive VP and general manager of Rackspace Application Services, told me that the company is still in the early days of its application management practice, but that it’s seeing good momentum as it’s gaining both new customers thanks to these offerings and as existing customers look to Rackspace for managing more than their infrastructure. “This allows us to jump into that SaaS management practice, starting with the leaders in the market,” he told me.

Why sell RelationEdge, a company that has gained some good traction and now has about 125 employees? “At the end of the day, we’ve accomplished a tremendous amount organically with very little funding,” RelationEdge founder and CEO Matt Stoyka told me. “But there is a huge opportunity in the space that we can take advantage of. But to do that, we needed more than was available to us, but we needed to find the right home for our people and our company.” He also noted that the two companies seem to have a similar culture and mission, which focuses more on the business outcomes than the technology itself.

For the time being, the RelationEdge brand will remain and Rackspace plans to run the business “with considerable independence under its current leadership.” Brossard noted that the reason for this is RelationEdge’s existing brand recognition.

17 May 2018

Augmented reality display maker DigiLens nabs $25 million

Though content creators in the augmented reality space are still struggling to find engaging use cases for early mobile augmented reality platforms, there is still a feverish amount of excitement inside the space from big tech companies and makers of key components that are plugging along in developing technologies that will enable consumer AR headsets.

One such startup, augmented reality display manufacturer DigiLens, announced today that they have raised $25 million of a Series C round from automotive parts manufacturing giant Continental.

DigiLens manufactures “waveguide displays,” which have been in use for a while but are pretty much the best technology available for making AR headset displays. While VR headset manufacturers are able to use conventional LCD or OLED displays to render an entirely new world while perhaps relying on passthrough feeds from cameras to simulate “mixed reality” environments, hardware manufacturers interested in making glasses-like AR headsets that aren’t incredibly ugly have had to rely on waveguides, which reflect light that is shined into the edge of a sheet of glass and bounced around inside by reflective elements before being shined directly into a user’s eyes. It’s all a bit more complicated than that, but importantly it allows for a mostly transparent screen that users can gaze through to see what’s going on in the real world.

What distinguishes DigiLens is that their manufacturing process relies on them “printing” these reflective elements directly onto the sheets of glass, a feature the company says helps them keep costs lower than its competitors.

Though Sunnyvale-based DigiLens has perhaps gotten the most press for its work on miniature waveguide displays perfect for the first generation of augmented reality headsets, like many other display makers in that space they’ve found more immediate opportunity in making heads-up displays for cars and motorcycle helmets. This significant investment from Continental now pins the company’s equity stake in DigiLens at 18 percent, the company tells me.

DigiLens has raised $60 million in funding to date from investors, including Sony and Foxconn according to Crunchbase.

17 May 2018

Microsoft’s Xbox Adaptive Controller is an inspiring example of inclusive design

Every gamer with a disability faces a unique challenge for many reasons, one of which is the relative dearth of accessibility-focused peripherals for consoles. Microsoft is taking a big step toward fixing this with its Xbox Adaptive Controller, a device created to address the needs of gamers for whom ordinary gamepads aren’t an option.

The XAC, revealed officially at a recent event but also leaked a few days ago, is essentially a pair of gigantic programmable buttons and an oversized directional pad; 3.5mm ports on the back let a huge variety of assistive devices like blow tubes, pedals and Microsoft-made accessories plug in.

It’s not meant to be an all-in-one solution by any means, more like a hub that allows gamers with disabilities to easily make and adjust their own setups with a minimum of hassle. Whatever you’re capable of, whatever’s comfortable, whatever gear you already have, the XAC is meant to enable it.

I’d go into detail, but it would be impossible to do better than Microsoft’s extremely interesting and in-depth post introducing the XAC, which goes into the origins of the hardware, the personal stories of the testers and creators and much more. Absolutely worth taking the time to read.

I look forward to hearing more about the system and how its users put it to use, and I’m glad to see inclusivity and accessibility being pursued in such a practical and carefully researched manner.