Year: 2020

Thriva emerged in 2016 as an at-home blood-testing startup allowing people to check, for instance, cholesterol levels. In the era of a pandemic, however, at-home blood testing is about to become quite a big deal, alongside the general trend towards people pro-actively taking control of their health. 

It’s now has secured a £4 million extension to its Series A funding round from Berlin-based VC Target Global. The investment takes Thriva’s total funding to £11m. The investment comes from Target Global’s new Early Stage Fund II and will top up the £6m Series A raised in 2019. Existing investors include Guinness Asset Management and Pembroke VCT.

Thriva have processed over 115,000 test at-home blood tests since 2016. Interestingly, these customers actually use the information to improve their health, with 76 percent of Thriva users achieving an improvement in at least one of their biomarkers between tests. 

The startup has also launched personalized health plans and high-quality supplements, scaling up it’s partnerships with hospitals and other healthcare providers.

Founded by Hamish Grierson, Eliot Brooks and Tom Livesey, it claims to be growing 100% year-on-year and has expanded its team to 50 team members in the company’s London Headquarters.

In a statement Grierson said: “As the world faces unprecedented challenges posed by the coronavirus crisis, we have all been forced to view our health, and our mortality, in a new light.”

Speaking to TechCrunch he added: “While there are other at-home testing companies, we don’t see them as directly competitive. Thriva isn’t a testing company. Our at-home blood tests are an important data point but they’re just the beginning of the long-term relationships we’re creating with our customers. To deliver on our mission of putting better health in your hands, we not only help people to keep track of what’s really happening inside their bodies, we actually help them to make positive changes that they can see the effects of over time.”

Dr Ricardo Schäfer – Partner at Target Global said: “When we first met the team behind Thriva, we were immediately hooked by their mission to allow people to take health into their own hands.”

Facebook takes more steps to support and expand a remote workforce, IBM announces layoffs and TechCrunch’s big annual conference is going virtual. (I know, I know — I have mixed feelings about it, too.)

Here’s your Daily Crunch for May 22, 2020.

1. Facebook makes big remote work moves with plan for new hubs in Dallas, Denver and Atlanta

Facebook CEO Mark Zuckerberg estimated that over the course of the next decade, half of the company could be working fully remotely. As the next step toward that goal, Facebook will be setting up new company hubs in Denver, Dallas and Atlanta.

For Menlo Park employees looking for greener pastures, there’s one sizable catch. Starting on January 1 of next year, the company will localize all salaries, which means scaling compensation to the local cost of living.

2. IBM confirms layoffs are happening, but won’t provide details

IBM isn’t sharing details, but analyst Patrick Moorhead said. “I’m hearing it’s a balancing act between business units. IBM is moving as many resources as it can to the cloud.”

3. TechCrunch Disrupt 2020 is going virtual

As you can imagine, this is largely due to the impact that the coronavirus has had on the world. But it also gives us a chance to make our event even more accessible to more people than ever before, and Disrupt will now stretch over five days — September 14-18.

4. Netflix to start cancelling inactive customers’ subscriptions

Netflix said it will ask customers who have not watched anything in a year or more if they want to maintain their subscription. If it doesn’t hear back, it will cancel their membership.

5. API startups are so hot right now

Alex Wilhelm looks at FalconX, Treasury Prime, Spruce, Daily.co, Skyflow and Evervault — all API-focused startups that are experiencing some early success. (Extra Crunch membership required.)

6. Magic Leap has apparently raised another $350 million, in spite of itself

Magic Leap has reportedly received a $350 million lifeline, a month after slashing 1,000 jobs and dropping its consumer business. Noted by Business Insider and confirmed by The Information, CEO Rony Abovitz sent a note to staff announcing the funding, courtesy of unnamed current and new investors.

7. Cake brings a Swedish take on e-motorcycle design to the US

The Stockholm-based mobility startup’s debut, the Kalk OR, is a 150-pound, battery-powered two-wheeler engineered for agile off-road riding and available in a street-legal version.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

A generation of companies now needs to forget what it has learned. The world has changed for everyone, and nowhere is this more true than in fundraising.

I’ve been investing in technology companies for over twenty years, and I’ve seen how venture capitalists respond in bull and bear markets. I’ve supported companies through the downturns that followed the dot-com bubble and the global financial crisis, and witnessed how founders adapt to the new environment. This current pandemic is no different.

A growth company that only a few months ago was shopping for a $20 million, $30 million, or even $40 million Series B, with a choice of potential investors, must now acknowledge that the shelves may well have emptied.

VCs who were assessing potential new deals at the beginning of the year have had to abruptly adjust their focus: Q1 venture activity in Europe was under its 2019 average, and the figures for the coming months are likely to be much worse as the pipeline empties of deals that were already in progress.

The simple reason for this is that VCs are having to rapidly reallocate their two principal assets: time and capital. More time has to be spent stitching together deals for portfolio companies in need of fresh funding, with little support from outside money. As a result, funds will be putting more capital behind their existing companies, reducing the pool for new investments.

Added to those factors is uncertainty about pricing. VCs take their lead on valuation from the public markets, which have plummeted in tech, as elsewhere. The SEG index of listed SaaS stocks was down 26% year-to-date as of late March. With more pain likely ahead, few investors are going to commit to valuations that founders will accept until there is more certainty that the worst is behind us. A gap will open between newly cautious investors and founders unwilling to bear haircuts up to 50%, dramatic increases in dilution and even the prospect of down rounds. It will likely take quarters — not weeks — for that gulf to be bridged and for many deals to become possible again.

IBM confirmed reports from over night that it is conducting layoffs, but wouldn’t provide details related to location, departments or number of employees involved. The company framed it in terms of replacing people with more needed skills as it tries to regroup under new CEO Arvind Krishna.

“IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,” an IBM spokesperson told TechCrunch.

Patrick Moorhead, principal analyst at Moor Insights & Strategy says he’s hearing the layoffs are hitting across the business. “I’m hearing it’s a balancing act between business units. IBM is moving as many resources as it can to the cloud. Essentially, you lay off some of the people without the skills you need and who can’t be re-educated and you bring in people with certain skill sets. So not a net reduction in headcount,” Moorhead said.

It’s worth noting that IBM used a similar argument back in 2015 when it reportedly had layoffs. While there is no official number, Bloomberg is reporting that today’s number is in the thousands.

The news comes against the backdrop of companies large and small laying off large numbers of employees as the pandemic takes its toll on the workforce. IBM was probably due for a workforce reduction, regardless of the current macro situation as Krishna tries to right the financial ship. The company has struggled in recent years, and with the acquisition of Red Hat for $34 billion in 2018, it is hoping to find its way as a more open hybrid cloud option. It apparently wants to focus on skills that can help them get there.

The company indicated that it would continue to subsidize medical expenses for laid off employees through June 2021, so there is that.

IBM confirmed reports from over night that it is conducting layoffs, but wouldn’t provide details related to location, departments or number of employees involved. The company framed it in terms of replacing people with more needed skills as it tries to regroup under new CEO Arvind Krishna.

“IBM’s work in a highly competitive marketplace requires flexibility to constantly remix to high-value skills, and our workforce decisions are made in the long-term interests of our business,” an IBM spokesperson told TechCrunch.

Patrick Moorhead, principal analyst at Moor Insights & Strategy says he’s hearing the layoffs are hitting across the business. “I’m hearing it’s a balancing act between business units. IBM is moving as many resources as it can to the cloud. Essentially, you lay off some of the people without the skills you need and who can’t be re-educated and you bring in people with certain skill sets. So not a net reduction in headcount,” Moorhead said.

It’s worth noting that IBM used a similar argument back in 2015 when it reportedly had layoffs. While there is no official number, Bloomberg is reporting that today’s number is in the thousands.

The news comes against the backdrop of companies large and small laying off large numbers of employees as the pandemic takes its toll on the workforce. IBM was probably due for a workforce reduction, regardless of the current macro situation as Krishna tries to right the financial ship. The company has struggled in recent years, and with the acquisition of Red Hat for $34 billion in 2018, it is hoping to find its way as a more open hybrid cloud option. It apparently wants to focus on skills that can help them get there.

The company indicated that it would continue to subsidize medical expenses for laid off employees through June 2021, so there is that.

Apple is facing fresh questions from its lead data protection regulator in Europe following a public complaint by a former contractor who revealed last year that workers doing quality grading for Siri were routinely overhearing sensitive user data.

Earlier this week the former Apple contractor, Thomas le Bonniec, sent a letter to European regulators laying out his concern at the lack of enforcement on the issue — in which he wrote: “I am extremely concerned that big tech companies are basically wiretapping entire populations despite European citizens being told the EU has one of the strongest data protection laws in the world. Passing a law is not good enough: it needs to be enforced upon privacy offenders.”

The timing of the letter comes as Europe’s updated data protection framework, the GDPR, reaches its two-year anniversary — facing ongoing questions around the lack of enforcement related to a string of cross-border complaints.

Ireland’s Data Protection Commission (DPC) has been taking the brunt of criticism over whether the General Data Protection Regulation is functioning as intended — as a result of how many tech giants locate their regional headquarters on its soil (Apple included).

Responding to the latest Apple complaint from le Bonniec, the DPC’s deputy commissioner, Graham Doyle, told TechCrunch: “The DPC engaged with Apple on this issue when it first arose last summer and Apple has since made some changes. However, we have followed up again with Apple following the release of this public statement and await responses.”

At the time of writing Apple had not responded to a request for comment.

The Irish DPC is currently handling with more than 20 major cross-border cases, as lead data protection agency — probing the data processing activities of companies including Apple, Facebook, Google and Twitter. So le Bonniec’s letter adds to the pile of pressure on commissioner Helen Dixon to begin issuing decisions vis-a-vis cross-border GDPR complaints. (Some of which are now a full two years’ old.)

Last year Dixon said the first decisions for these cross-border cases would be coming “early” in 2020.

At issue is that if Europe’s recently updated flagship data protection regime isn’t seen to be functioning well two years in — and is still saddled with a bottleneck of high profile cases, rather than having a string of major decisions to its name — it will be increasingly difficult for the region’s lawmakers to sell it as a success.

At the same time the existence of a pan-EU data protection regime — and the attention paid to contravention, by both media and regulators — has had a tangible impact on certain practices.

Apple suspended human review of Siri snippets globally last August, after The Guardian had reported that contractors it employed to review audio recordings of users of its voice assistant tech — for quality grading purposes — regularly listened in to sensitive content such as medical information and even recordings of couples having sex.

Later the same month it made changes to the grading program, switching audio review to an explicitly opt-in process. It also brought the work in house — meaning only Apple employees have since been reviewing Siri users’ opt-in audio.

The tech giant also apologized. But did not appear to face any specific regulatory sanction for practices that do look to have been incompatible with Europe’s laws — owing to the lack of transparency and explicit consent around the human review program. Hence le Bonniec’s letter of complaint now.

A number of other tech giants also made changes to their own human grading programs around the same time.

Doyle also pointed out that guidance for EU regulators on voice AI tech is in the works, saying: “It should be noted that the European Data Protection Board is working on the production of guidance in the area of voice assistant technologies.”

We’ve reached out to the European Data Protection Board for comment.

Statespace has today raised a $15 million Series A financing round led by Khosla, with partner Samir Kaul joining the board. Existing investors, such as FirstMark Capital, Lux and Expa, also participated in the round, as well as newcomer June Fund.

Statespace launched out of stealth in 2017 with a product called Aim Lab, which recreates the physics of popular FPS games to help players practice their aim and work on their weaknesses. Statespace was founded by neuroscientists from New York University, and goes beyond the mechanics of aim itself to understand and measure several parts of a player’s game, from visual acuity across the quadrants of the screen to reaction time.

Anyone from an average gamer to a professional can use Aim Lab to improve. But the company has other offerings, too. The company is working on the Academy, which will launch in Q3 of this year, and was built in partnership with Masterclass and a number of top streamers. Users can get advanced tutorials from these streamers, which include KingGeorge (Rainbox Six Siege), SypherPK (Fortnite), Valkia (Overwatch), Drift0r (CoD) and Launders (CS:GO).

Statespace has also partnered with the Pro Football Hall of Fame to develop the ‘Cognitive Combine.’ Just like the NFL Combine measures general skills and abilities, such as speed, strength, agility, etc., the Cognitive Combine is meant to give a general assessment of a player’s skill in a game-agnostic manner.

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The company also works directly with esports teams such as 100 Thieves and the Philly Fusion, building custom data dashboards and products so those teams can get a deeper look at their metrics and build practice regimes around their weaknesses.

Statespace is also sprinting to make its products more available to a broader userbase, including launching a mobile version of Aim Lab and introducing Aim Lab on Xbox, with plans to launch PlayStation support soon. The company also plans on launching support for 400 games next month.

Interestingly, the technology behind Statespace, which lets the company measure well beyond the kill:death ratio and look at cognitive ability, can be used for many other applications. The company has applied for a grant alongside several universities to work on a commercial application for stroke rehabilitation.

Statespace will use the funding to continue growing the team, which has doubled since raising $2.5 million in August of 2019. The company has also brought on a few notable hires from bigger companies, including a new VP of Engineering Scott Raymond (formerly Gowalla, Facebook and Airbnb), Jenna Hannon as VP of Marketing (formerly Uber, Uber Eats) and Phil Charm as VP of Growth (formerly Checkr, Gainsight).

According to founder and CEO Wayne Mackey, Statespace has 2 million registered users and 500K monthly active users, up 400 percent from January.

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

A cluster of related companies recently caught our eye by raising capital in rapid-fire fashion. TechCrunch covered a few of them, and I read coverage of others. Looking back through my notes and the media cycles that they generated, it feels safe to say that API -based startups are hot right now.

What’s fun about this trend is that the startups we’re considering are all relatively early-stage, so they aren’t limping unicorns staring down a closed IPO window. Instead, we’re taking a peek at startups that mostly haven’t raised material external capital — yet. They have lots of room to grow.

And the group is somewhat easy to understand. Sure, I don’t fully grok their underlying tech — that’s a bit of the point with API startups; they take something complex and offer it in an easy-to-consume fashion — but I do get how they make money. Not only are their business models fairly easy to understand, there are public companies that monetized in similar ways for us to use as a framework as the startups themselves scale.

This morning let’s look at FalconX and Treasury Prime and Spruce and Daily.co and Skyflow and Evervault, all API-focused startups to one degree or another, to see what’s up.

What’s an API-based startup?

Simply: a high-growth company that delivers its main service via an application programming interface, or API.

APIs help services communicate with other apps, allowing them to execute tasks or request information quickly and easily. These services are sometimes highly valuable because they can offer something complex and difficult, easily and simply.

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

First, a big thanks to everyone who took part in the Equity survey, we really appreciated your notes and thoughts. The crew is chewing over what you said now, and we’ll roll up the best feedback into show tweaks in the future.

Today, though, we’ve gone Danny and Natasha and Chris and Alex back again for our regular news dive. This week we had to leave the Vroom IPO filing, Danny’s group project on The Future of Work, and a handwashing startup (?) from Natasha to get to the very biggest stories:

• Brex’s $150 million raise: Natasha covered the latest huge round from corporate charge-card behemoth Brex. The party’s over in Silicon Valley for a little while, so Brex is turning down your favorite startup’s credit limit while it stacks cash for the dowturn.
• Spruce raises a $29 million Series B: Led by Scale Venture Partners, Spruce is taking on the world of real estate transactions with digital tooling and an API. As Danny notes, it’s a huge market and one that could find a boost from the pandemic.
• Masterclass raises $100 million: Somewhere between education and entertainment, Masterclass has found its niche. The startup’s $180 yearly subscription product appears to be performing well, given that the company just stacked nine-figures into its checking account. What’s it worth? The company would only tell Natasha that it was more than $800 million.
• Clubhouse does, well, you know. Clubhouse happened. So we talked about it.
• SoftBank dropped its earnings lately, which gave Danny time to break out his pocket calculator and figure out how much money it spent daily, and Alex time to parse the comedy that its slideshow entailed. Here’s our favorites from the mix. (Source materials are here.)

And at the end, we got Danny to explain what the flying frack is going on over at Luckin. It’s somewhere between tragedy and farce, we reckon. That’s it for today, more Tuesday after the holiday!

There are a number of different technologies both proposed and in development to help smooth the reopening of parts of the economy even as the threat of the global COVID-19 pandemic continues. One such tech solution launching today comes from Brian McClendon, co-founder of Keyhole, the company that Google purchased in 2004 that would form the basis of Google Earth and Google Maps. McClendon’s new CVKey Project is a registered non-profit that is launching with an app for symptom self-assessment that generates a temporary QR code which will work with participating community facilities as a kind of health ‘pass’ on an opt-in basis.

Ultimately, CVKey Project hopes to launch an entire suite of apps dedicated to making it easier to reopen public spaces safely, including apps for things like exposure notification, which is what Apple and Google have partnered to deliver a framework for that works across both of their mobile operating systems. CVKey is also going to be providing information about what types of facilities are open under current government guidelines, as well as what those places are doing in terms of their own policies to prevent the spread of COVID-19 as much as possible.

The core element of CVKey Project’s approach, however, is use of a QR code generated by its app that essentially acts as a verification that you’re ‘safe’ to enter one of these shared spaces. The system is designed with user privacy in mind, according to McClendon – any identify or health data exists only on a user’s individual device, and they’re never uploaded to a cloud server or shared without a user’s consent and information provided about what that sharing entails. All users only voluntarily offer their own health info, and the app never asks for location information. Most of what it does can be done without an internet connection at all, in fact, McClendon explains.

When you generate a QR code for use at places that have opted in to participate in the system, they scan it and receive a simple binary indicator of whether or not you’re cleared to pass, based on the policies they’ve set. They don’t see any specifics about your health information – the code transmits all the particulars of whether you have shown symptoms, which ones and how recently, for instance, and then that is matched against the policy set for the particular public space and they provide a go/no-go response.

McClendon created CVKey Project together with Manik Gupt and Waleed Kadous, who he worked with previously at Google Earth, Google Maps and Uber, as well as Dr. Marci Nielsen, a public health specialist with a long history of leadership at both public and private institutions.

The apps created by CVKey Project will be available soon, and the non-profit is looking for potential partners to participate in its program. Like just about everything else designed to address the COVID-19 crisis, it’s not a simple fix, but it could form part of a larger strategy that provides a path forward for dealing with the pandemic.