Year: 2020

08 Apr 2020

No-code automation platform Tonkean raises $24M from Lightspeed

As more companies find their workflows upended by remote work in the pandemic crisis, there are plenty of SaaS startups aiming to sell them a new path to streamlining processes. Tonkean is an SF startup selling a no-code automation platform to do just that, and it’s in the fortunate position of just having closed a hefty Series A.

The company closed a $24 million round led by Lightspeed Venture Partners, Tonkean’s team tells TechCrunch. Lightspeed’s Raviraj Jain is joining Tonkean’s board. The company has raised just over $31 million to date.

Their software is a robotic automation and management platform catered towards ops that integrates with a bunch of data sources and allows customers to set up their own customizations. These customizations can help with routing tasks to the right person, automating follow-ups or moving data between systems. The software is meant to enable nearly endless customizations but a big focus seems to be on stripping repeatable tasks from the workflows of ops teams or taking care of early steps in those processes.

“The future of enterprise software is adaptive and personalized,” CEO Sagi Eliyahu told TechCrunch in an interview.

The company frames its tech as “human-in-the-loop robotic process automation,” essentially using its no-code platform to allow the people completing tasks manually to create the automation processes for letting bots take over. The visual drag-and-drop workflow of creating these processes seems to be a big selling point. New customers can also shop around for functionality via templates added by other customers.

RPA has been a hot area in recent years with players like Automation Anywhere and UIPath achieving sky high private valuations. As the big players in the space focus on courting bigger and bigger clients, Tonkean’s tighter focus on streamlining workflows for operations teams could give them an inroad, even as they look to scale during uncertain times.

08 Apr 2020

LinkedIn promises no COVID-related layoffs until the end of the fiscal year

LinkedIn has pledged to making no COVID-related layoffs until at least June 2020, the professional network has confirmed to TechCrunch. While the promise is only until the end of the fiscal year, it follows the lead of Salesforce CEO Marc Benioff’s claim last month to have no significant layoffs for the next 90 days.

Other business leaders such as Bank of America’s CEO Brian Moynihan and Morgan Stanley’s CEO James Gorman have also agreed to pause any potential layoffs until the end of 2020.

Layoffs are trickling down to all industries, starting in the hospitality and travel industry and moving to recruitment startups and scooter companies. Microsoft-owned LinkedIn, which serves as a social media platform for professionals and recruiters alike, is thus poised to be a critical connector for those laid off.

So as job security remains on everyone’s mind, LinkedIn’s promise to not have any layoffs will quell some of that fear within the organization, at least in the near future. LinkedIn has approximately 16,000 full-time employees across 30 cities in the world.

Regardless of how healthy LinkedIn may appear from this news, it’s not immune from making specific cost-saving measures as the economy struggles. The company, reports The Information, has “paused most of its hiring as it figures out business planning.” It had more the 1 million job applicants last year, according to the piece.

08 Apr 2020

Mom-focused content startup Motherly raises $5.4M as it expands into commerce

Motherly CEO Jill Koziol admits that it was a tough pitch when she and her co-founder Liz Tenety first tried to get investors on-board in 2015.

“We wanted to create a brand first and foremost,” Koziol told me. “We did not want to go and build a media company or a [direct-to-consumer] company or Facebook for moms — because spoiler alert, it’s called Facebook.”

Instead, she described Motherly as a company that sits at the “intersection” of all three approaches. It started out by publishing motherhood-themed content on its website and on social media (and more recently in podcast form), which in turn encouraged the audience of 30 million unique users to start “engaging with us and with each other.”

Now that there’s a big audience and a real community, the company is getting ready to launch the Motherly Store. And it’s announcing that it has raised $5.4 million in Series A funding.

Koziol described her approach as building a trusted brand “that’s woman-centered — not baby-centered — and expert-driven,” then using that brand to sell products. She said Motherly has reversed the strategy of direct-to-consumer startups that sell products, then add content and community to support those commerce goals.

“Everyone says we did all the hard stuff first,” Koziol said. “We’re showing the world that motherhood is not niche, that you can build a brand through content and then create the natural extensions out of that.”

Motherly screenshot

Image Credits: Motherly

The Series A funding was led by 8VC, with participation from Founders Fund, Muse Capital, AET and AmplifyHer Ventures.

“We’re long on millennial moms, and Motherly has demonstrated a unique ability to be at the center of this hyper-engaged market already,” Amplifyher’s Meghan Cross told me via email. “Its content has organically sparked a vibrant conversation, and commerce is the logical extension.”

Koziol, meanwhile, said that Motherly was able to build this audience with “virtually” no audience spend. That sounds particularly difficult given all the other parenting- and motherhood-themed content already online, but Koziol said that she and Tenety (a former Washington Post editor) are both millennial mothers themselves, and they realized that “in media brands across the board, motherhood was treated as cartoonish … everything was very baby-centered.”

She argued Motherly has succeeded so far because it’s aimed at a more educated and more diverse group of women, who are more likely to continue working after they have children.

And as Motherly moves into commerce, she said that will include both company-branded products (Sounds True is publishing the startup’s second book, “The Motherly Guide to Becoming Mama: Redefining the Pregnancy, Birth, and Postpartum Journey”), as well as a Motherly Store, which will offer a curated selection of products for moms, largely from smaller, direct-to-consumer brands.

Koziol suggested that these brands will benefit from access to Motherly’s audience (particularly as advertising costs have grown to unsustainable heights for many D2C brands), while moms will benefit from having a “credible” source who can help to “narrow down those choices.”

Of course, the landscape for media, commerce and parenting have all changed dramatically in the past few weeks thanks to the COVID-19 pandemic. But Koziol noted that as a “100 percent work from home company,” Motherly was better-prepared for this shift.

More broadly, she suggested that moms are going to need more help and support than ever — which Motherly is trying to provide, for example by offering its online birth class for free.

“This woman in our audience has been layering roles on for years,” Koziol said. “And we what we are now seeing, in addition to carrying the mental load of parenthood disproportionately and being a full-time bread winner, you’re layering full-time child-care and homeschooling. These are three different jobs.”

08 Apr 2020

Microsoft starts testing a new news reading experience in Windows 10

Microsoft announced its latest Windows 10 preview build today and while that is a pretty routine affair these days, the company also used today’s announcement to also launch the beta version of a new news consumption experience that anybody on a Windows 10 device can try out today. The Microsoft News Bar aggregates news from the 4,500 publishers in the Microsoft News network and then displays those as a semi-persistent bar on any side of your screen.

Windows 10 has long featured the Microsoft News app, which is more of a fully-features news reading experience (though I admit I always forget it even exists). The idea behind the News Bar is to give you a news ticker that is either always visible or that you can hide away at will. In order to make sure you don’t forget it, you can choose to have it pop back up in either two or eight hours — or never, if you’re seriously tired of the news right now. Nobody would blame you.

Right now, this is a pretty barebones affair, without the ability to really personalize the news you see beyond the country you are in. What you can do is select some stocks you want to monitor and over time, Microsoft will add weather and sports options (hopefully with the ability to turn off sports news, because who cares, right?). It’d be nice to at least get some sense of what’s breaking news in the news bar, but as of now, there are no timestamps attached to the updates.

If you’ve been around long enough, you may remember Windows Active Desktop, PointCast and Wired’s (in)famous Push cover story. Somehow this Microsoft News Bar feels a bit reminiscent of that and it seems a bit old-school to have a moving ticker on your desktop in 2020. But if that’s your style, you can now give this new experience a try by downloading the application from the Microsoft Store.

08 Apr 2020

How one European VC firm is reacting to the economic crisis

Public markets around the world have been tanking for the past few weeks, and many companies simply can’t operate during a lockdown. Sheltering in place has had some terrible economic consequences, with a record number of Americans getting laid off, including many startup employees.

But what is happening in Europe? You might also be wondering whether European tech startups have to lay off a significant chunk of their workforce and whether financial capital has become scarce.

That’s why I interviewed Jean de La Rochebrochard, a partner for Kima Ventures, backed by French telco and media entrepreneur Xavier Niel. They focus on seed and Series A investments and invest in dozens of startups each year. He oversees hundreds of startup investments at any given time, which means he has his finger on the pulse of the tech ecosystem in France and across Europe.

The interview was translated from French and edited for clarity and brevity.


TechCrunch: At Kima Ventures, have you seen any change when it comes to investment pace?

Jean de La Rochebrochard: There has been a big change at the deal-flow level. But we already committed to some deals before the lockdown. We’re currently closing all the deals that we were looking at. Over the past 15 days, we’ve closed 15 deals, I think.

So it might slow down in the next 15 or 30 days…

Yes, it’s going to slow down, that’s for sure. But we’ll only know for sure in a month when we’re done with our backlog.

08 Apr 2020

Airbnb rolls out new features aimed at its next big bet: longer term stays

Airbnb is tweaking its landing page and introducing new features all aimed at longer-term stays, as the online rental marketplace looks to capitalize on a growing segment of its business.

The changes are being rolled out just days after Airbnb CEO Brian Chesky said the company had raised $1 billion and laid out plans to direct its attention and new funds toward three core products: hosts, long-term stays and Airbnb experiences. Airbnb raised the $1 billion in debt and equity from private equity firms Silver Lake and Sixth Street Partners.

Chesky acknowledged Monday that while the desire to connect and travel has been reinforced during this time, the “way it manifests will evolve as the world changes.”

Airbnb is betting how and where people work will evolve; in the company’s view, it’s heading towards longer term stays. Recent data shared by Airbnb supports that view. In last two weeks of March, the company saw the number of guests booking longer-term stays within their same cities nearly double. Meanwhile, 80% of Airbnb hosts now accept longer-term stays and about half of the company’s active listings now provide discounts for stays of one month or longer.

On Thursday, Airbnb will change its main landing page to highlight longer-term stays. The company introduced a new notification hosts to educate them on the benefits of longer-term stays as well as a guide to update their listings to accept these types of bookings. Airbnb has decided to make that a permanent feature in the portal that hosts use to manage their listings.

airbnb new landing page

Image Credits: Airbnb

When the new landing page launches Thursday, Airbnb will have more than 1 million listings that offer monthly stays, according to the company. These homes are equipped with the kinds of amenities required for a longer stay such as kitchens, laundry facilities, and wifi.

The COVID-19 pandemic, which has disrupted travel and sparked a need among healthcare and other essential workers to find places to stay in their own cities, has contributed to that growth.

However, it appears this trend was already afoot in 2019. According to Airbnb, one in every seven nights booked in 2019 was for a longer-term stay.

The push into longer term stays will likely butt up against property management companies that handle traditional one-year leases. There’s already some evidence that Airbnb’s longer term stays are looking more like traditional rentals.

The company said it’s seeing more people such as students, doctors and nurses in residency, or others in long term work assignment turning to Airbnb to find housing for six- to nine-month stays. Already in 2020, Airbnb said it has seen bookings for more than 600 days; the longest booking made so far this year was more than 700 days.

08 Apr 2020

Rocket Lab catches an Electron stage in mid-air, demonstrating a key part of its rocket recovery plan

Rocket Lab is in the process of developing a way to recover the rockets it launches, despite their originally being designed as fully expendable launch vehicles. The company had a surprise announcement on Wednesday: It’s actually already managed to successfully catch an Electron in mid-air, during a test meant to prove out the feasibility of that part of the operation.

The whole process involves Rocket Lab employing an onboard guidance system to orient an Electron first stage to re-enter Earth’s atmosphere after it has deployed its kick stage and payload, at such an angle that it won’t burn up. After that, the spent stage will deploy a parachute and float back towards Earth, where this mid-air recovery maneuver will come into play, with a helicopter snagging the gently falling rocket component out of the sky and flying it back to Rocket Lab suspended underneath the aircraft.

During this test, which took place earlier in March before the current guidelines around practicing social isolation were in place, Rocket Lab simulated the actual launch component, instead taking an Electron test article that resembles the first stage in size, design and weight, and then dropping that from a first helicopter over the ocean off the coast of New Zealand. A second helicopter then swooped in to capture the test article, after it had deployed its own parachute, when it reached an altitude of around 5,000 feet.

Rocket Lab has already been testing the re-entry portion of its recovery system, first with a launch last December, and then again this January. In both missions, the Electron used during the launch was equipped with guidance and navigation systems for data collection, and in the later mission, the rocket also had a system for reorienting itself to hit the atmosphere at the proper angle to slow its rate of descent.

Those tests proved that part of the process should work as intended, and the next step now that this part has been validated is to attempt to actually recover a first stage, which Rocket Lab intends to do sometime later this year. That will involve having the Electron first stage on a forthcoming mission reorient itself to slow its descent, and actually deploy a parachute, but it won’t include the catch attempt. Instead, Rocket Lab will look to recover the booster from the ocean after it splashes down, and return it to its own facilities for refurbishment and potential re-use.

08 Apr 2020

Netflix launches weekly Instagram Live series about coping during the COVID-19 pandemic

Netflix is launching a new series on Instagram that will focus on taking care of yourself and your mental health during the COVID-19 global pandemic. The series, which will begin airing on Instagram Live tomorrow at 7 PM PT, features the stars of some of Netflix’s top Young Adult shows and movies, including “To All the Boys I’ve Loved Before,” “The Kissing Booth,” “Stranger Things,” “Cheer,” and “13 Reasons Why.”

The series will run every Thursday from now through May 14 on the @Netflix Instagram account, and will discuss the sort of challenges that young people are facing during the health crisis.

For example, it will touch on topics like “what helps if you’re having trouble sleeping?,” “how do you stay connected during social distancing?,”  “how do we manage anxiety?,” and “what self-care actually means.”

Participating in the effort are stars including Noah Centineo (To All the Boys I’ve Loved Before), Joey King (The Kissing Booth), Ross Butler (13 Reasons Why), Caleb McLaughlin (Stranger Things), Lana Condor (To All the Boys I’ve Loved Before), Jerry Harris (Cheer), and Alisha Boe (13 Reasons Why).

The stars will be talking with trusted mental health experts from partner organizations including National Alliance on Mental Illness (NAMI), Mental Health America, The Trevor Project, Crisis Text Line and American Foundation for Suicide Prevention.

The debut episode on Thursday, April 9 at 4:00 PM ET/7:00 PM PT will be with Noah Centineo from “To All the Boys I’ve Loved Before,” who will talk with Dr. Ken Duckworth, Chief Medical Officer at the National Alliance on Mental Illness (NAMI) on the topic of self-care.

While Netflix is no stranger to marketing on Instagram, this new live series is less about promoting Netflix’s shows and more about leveraging the existing stars’ power to do some good.

Young people have had their lives upended by the pandemic at a time when their social connections with friends can outweigh those of others, including family members. It has also disrupted major milestones that signify the end of childhood and the stepping into adulthood, like prom and graduation. In other words, the types of struggles young people face when coping with COVID-19 are different from those of adults, who are more concerned about things like job security, getting the bills paid, and their family’s health.

Netflix has released a trailer for the series today that explains the concept and introduces the stars. The company says it will share more details about upcoming episodes on Instagram throughout the month.

08 Apr 2020

Zoom sued by shareholder for ‘overstating’ security claims

Zoom has been served with another class action lawsuit — this time by one of its shareholders, who says he lost money after the company “overstated” its security measures, which led its share price to tank.

The video conferencing giant has seen its daily usage rocket from 10 million users to 200 million since the start of the coronavirus pandemic, which forced vast swathes of the world to stay and work from home. As its popularity rose, the company also faced a growing number of security and privacy problems, including claims that Zoom was not end-to-end encrypted as advertised.

Zoom’s later admission saw the company’s share price fall by almost 20 percent.

Shareholder Michael Drieu, who filed the suit in a California federal court on Tuesday, said he and others have “suffered significant losses and damages” as a result. According to the complaint, Drieu bought 50 shares priced at $149.50 but lost out when he sold the shares a week later at $120.50 per share.

Zoom did not respond to a request for comment.

It’s the latest class action served against Zoom in recent weeks. Zoom was slapped with another suit last month after Zoom’s iOS app was found to have shared data with Facebook — even when users did not have a Facebook account.

Zoom has doubled down on its efforts to improve its image in the past week, including a promise to improve its encryption efforts and by changing its default settings to prevent trolls and intruders from accessing Zoom calls without permission, coined “Zoombombing.” The security problems have led to New York City schools banning Zoom in favor of Microsoft Teams. The Taiwanese government also banned its agencies from using the app.

Just today, former Facebook chief security officer Alex Stamos said he joined Zoom as an advisor. Zoom also said it has enlisted security experts and leaders to advise on the company’s security strategy.

08 Apr 2020

Talking venture, B2B and thesis-driven investment with Work-Bench’s Jon Lehr

Earlier this week, the Equity crew caught up with Work-Bench investor Jon Lehr to get his take on the current market, and how his firm goes about making investment decisions.

The conversation was a treat, so we cut a piece of it off for everyone to listen to. The full audio and a loose transcript are also available after the jump.

What did Danny and Alex learn while talking to Lehr? A few things, including what Seed II-level investments need these days to be attractive (Hint: It’s not a raw ARR threshold), and what’s going on in SaaS today (deals slowing, but not for select founders; relationships are key to doing deals today), and why being a VC is actually work.

But what stood out the most was how Lehr thinks about finding investment opportunities. While some VCs like to cultivate images of being gut-investors, cutting checks based on first meetings and the like, Lehr told TechCrunch about how he researches the market to find pain-points, and then the startups that might solve those issues.

You can listen to that bit of the chat in the clip below:

Extra Crunch subscribers, the rest of the goodies are below. (A big thanks to Danny for cleaning up the written transcript.)

The audio