Year: 2021

JumpCloud, the late-stage startup that is modernizing the notion of corporate directories in a cloud context, announced a $159 million Series F investment on a healthy $2.56 billion valuation today.

Sapphire Ventures led the round with new investors participating including Owl Rock, Whale Rock Capital, Sands Capital and Endeavor Catalyst along with existing investors General Atlantic, BlackRock and H.I.G. Growth Partners. The company has now raised almost $356 million with $259 million coming over the most recent two rounds.

JumpCloud CEO Rajat Bhargava says that investor interest in the company is driven by his belief that the directory structure is the center of an IT organization, especially as it relates to identity, and that includes mobile device management, single sign-on, multi-factor authentication, privileged access management and identity governance. He sees all these approaches coming together in the directory structure.

“We believe that those are all part of one core directory platform. So when you think of a directory very holistically and broadly, it is really about securely and frictionlessly connecting users and their identities to whatever they may need to access,” Bhargava told me.

They do this by going after SMBs and mid-market companies with a cloud product that simplifies the management of these complex systems. Jai Das, who is managing director at lead investor Sapphire Ventures, believes that this part of the market was being mostly left out of directory services because of that complexity before JumpCloud and others attempted to fill the void.

“Large enterprises have put in place various directory and security solutions to solve these problems, but with large investments in tech outlays and IT support teams. SMBs and mid-sized enterprises don’t have the big budgets or large staff to replicate the large enterprise model,” Das said. He adds that developing for this market is a huge challenge because it requires “building a product with all of the features large enterprises require, plus it has to be easy to use, easy to deploy and not [be] terribly expensive.”

While the company is not revealing any revenue metrics, Bhargava did say that they have added 2000 customers since we last spoke in November for a total of 5000, and he said that the company should double head count by the end of the year from the 300 last November.

He also said that he has been making progress at building a diverse company, and one way he does that is just asking every hiring manager if they interviewed historically underrepresented candidates.

“The simple act of just asking that question makes such a massive difference inside of an organization. We’ve encouraged all of our hiring managers to interview diverse candidates but we also when there’s an offer about to be made, or when they’re in the [interview] process, we are asking them did you talk to [diverse] candidates. And then if you didn’t, we’re going to ask you to go, search for those folks [before making a hiring decision],” he said.

Bhargava didn’t want to talk about and IPO when we spoke last year, and not much changed this time around. “We’ll see. It’s just not part of what we’re worried about or focused on,” he said.

He did indicate however, that with such a substantial amount of money on the balance sheet, he would consider some strategic acquisitions. “We will focus on M&A and where it makes sense will integrate different components and teams into our business,” he said. With a tight labor market, that could be about adding engineering, as well as adding functionality to the platform, he said.

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

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here. I also tweet.

Vacation was good, and a big thanks to Mary Ann and Natasha — not to mention Grace and Chris! — for keeping things flowing while I mostly sat around reading books and playing video games. But enough being maudlin! To the news!

• Investors are kinda thinking that the run-up in stocks needs to take a breather. And that the reset could land between 5% and 10%, with another 10% of respondents expecting a correction of more than 10%. Yowza.
• China may break up Ant, keeping the pace of its regulatory deluge going as this week starts. And the Chinese government thinks that its country has too many EV companies. If the market or central planning will wind up taking point on solving the “problem” is not clear.
• The Apple v. Epic decision is still driving conversation. Here’s TechCrunch’s coverage, and here’s the MG piece I mentioned.
• Toast and Freshworks have new filings up. Which is good news if you want to dig into new S-1/A reports. Forge is going public via a SPAC.
• And Babyscripts and Commercetools raised rounds, while Jungle Ventures raised a fund.

Got all that? Ok good. Chat you Wednesday!

Uber has lost another legal challenge in Europe over the employment status of drivers: The Court of Amsterdam, in the Netherlands, has ruled that drivers for Uber are employed, rather than self employed contractors.

The court also found drivers are covered by an existing collective labor agreement in the country — which pertains to taxi drivers — meaning Uber faces increased costs to comply with the agreement which sets pay requirements and covers benefits like sick pay. (And it may be liable for paying driver back pay in some cases.)

The court also ordered Uber to pay €50,000 in costs.

The ride hailing giant has some 4,000 drivers working on its platform in the Dutch capital.

The Amsterdam court rejected Uber’s customary defence that it’s just a technology platform that connects passengers with taxi service providers — finding instead that drivers are only self employed ‘on paper’.

The judges highlighted the nature of the service being provided by drivers and the fact Uber exerts controls over how they can work and earn through its app and algorithms.

Europe’s top court already ruled back in 2017 that Uber is a transport provider and must comply with local transport laws — so you’d be forgiven for deja vu.

The Dutch lawsuit was filed by the national trade union center, FNV, last year — with the hearing kicking off at the end of June.

In a statement today, the FNV’s VP, Zakaria Boufangacha, said: “This statement shows what we have been saying for years: Uber is an employer and the drivers are employees, so Uber must adhere to the collective labor agreement for Taxi Transport. It is also a signal to The Hague that these types of constructions are illegal and that the law must therefore be enforced.”

Uber has been contacted for a response to the ruling.

At the time of writing the company had not responded — but, per Reuters, Uber said it intends to appeal and “has no plans to employ drivers in the Netherlands”.

In the UK, Uber lost a string of tribunal rulings over its employment classification over a number of years — going on to lose in front of the UK supreme court this February.

Following that Uber said it would treat drivers in the UK as workers, although disputes remain (such as over its definition of working time). In May, Uber also said it would recognize a UK trade union for the first time.

Elsewhere in Europe, however, the company continues to fight employment lawsuits — and to lobby European Union lawmakers to deregulate platform work…

The EU has said it wants to find a way to improve platform work. However it’s not yet clear what any pan-EU ‘reform’ may look like. 

The Commission has been contacted with questions on its platform work initiative.

“Digital labour platforms are clearly worried, evident through investing heavily on their lobbying power and throwing more resources on the EU level. These companies — including Uber of course — have also recently come together to create a new funding lobby group that specifically targeting to influence policies on platform work,” said Jill Toh, a PhD researcher in data rights at the University of Amsterdam, talking to TechCrunch after the Amsterdam ruling.

“We saw how Uber wielded and amended laws in their Prop 22 campaign in California, and together with other companies in Europe, they’re attempting to do so again. It’s disheartening to see that the Commission in its two consultations on platform worker regulation has only been talking to tech companies and has held no meetings with trade unions or other platform work representatives.”

“All of this is incredibly problematic and concerning especially if the EC consultations result in a directive on platform work. Overall, the wins in the courts are important for workers, but there remains the issue of corporate power and influence in Brussels, as well as the lack of public enforcement to these court decisions,” she added.

The US Defense Department’s ambitions beyond Earth just grew a little clearer. SpaceNews has learned the department recently put out a call for privately-made nuclear propulsion systems that could power small- and mid-sized spacecraft. The DoD wants to launch missions venturing beyond Earth orbit, and existing electric and solar spacecraft are neither suitable for that job nor suitable to smaller vehicles, the department’s Defense Innovation Unit said.

The nuclear propulsion system will ideally offer “high delta-V” (above 33ft/s) while scaling down to less than 2,000kg in dry mass (4,409lbs on Earth). On top of providing electricity for the payload, the technology will hopefully keep the spacecraft warm when in shadow and minimize radiation both on the ground and to other components. Responses are expected by September 23rd, with contracts handed out as quickly as 60 to 90 days afterward.

Officials acknowledged they were making the request as a matter of expediency. NASA and other agencies are already developing or backing nuclear spacecraft, but those won’t be ready for a long while. The DoD is hoping for a prototype within three to five years — this technology would serve as a stopgap that puts nuclear propulsion into service relatively quickly for near-term projects.

While the request didn’t provide clues as to what spacecraft were in the works, the focus on smaller spacecraft suggests it could involve probes, satellites or other vehicles with modest goals. You won’t see this power human trips to Mars. All the same, it’s clear the DoD is frustrated by the limitations of existing spacecraft engines and wants a fast track to more powerful designs.

Editor’s note: This article originally appeared on Engadget.

With supply chains under constant stress because of the pandemic, freight forwarding has become one of the hottest startup sectors in the last two years. Indeed, International freight forwarding is now a $199 billion market. And the evidence is mounting.

In November last year, digital freight forwarder Forto raises another $50M in a round led by Inven Capital. In April this year, Nuvocargo raised $12M to digitize the freight logistics industry. In May, Zencargo, with a freight forwarding platform, raised $42 million. In June, freight forwarder sennder raised $80M at a $1B+ valuation. In July Freightify landed $2.5M to make rate management easier for freight forwarders.

And today, Vector.ai, which says it helps freight forwarders improve productivity via its AI platform, has raised $15 million in a Series A led by US VC Bessemer Venture Partners. It was joined by existing investors Dynamo Ventures and Episode 1. Bessemer’s investment is yet another sign that US VC continues to make incursions into the UK and European tech scene.

Vector now plans to accelerate its international expansion plans as an automated system for freight forwarders.

The problem it’s tackling is this: Freight forwarders lose time to repetitive administrative tasks as they execute shipments, such as hunting through customer emails etc, rather than concentrating on higher-value activities. Vector.ai says it’s machine learning platform can automate these tasks.

Its customers now include Fracht, EFL, NNR Global Logistics, The Scarbrough Group, Steam Logistics and Navia Freight, as well as other top-10 freight forwarders.

James Coombes, Co-Founder, and CEO of Vector.ai, commented: “Most employees within freight forwarders spend the majority of their time communicating with the 10-25 different entities that might be associated with a given shipment and coordinating freight movement and documentation. Communication usually runs through email and attachments… The volume of freight continues to rise globally – and with the added burden of Brexit and pandemic disruptions such as the recent port closure in China – freight forwarders are facing staffing shortages, steep wage increases, and shipping delays that continue to cost companies money in lost revenue and spoiled goods. They cannot afford to keep wasting time on low-level processing, which is why we created the technology to automate basic tasks.”

Mike Droesch, Partner at Bessemer Venture Partners, said: “Vector.ai is one of the early leaders in an emerging category of freight forwarding workflow automation and digitization tools. It has built an intuitive and industry-focused product – which is already winning over some of the largest freight forwarders.”

Vector competes with Shipamax out of the UK which has raised $9.5M, RPA Labs out of the US which has raised $1.2M and slync.io also in the US which has raised $75.9M.

Security operations teams face a daunting task these days, fending off malicious hackers and their increasingly sophisticated approaches to cracking into networks. That also represents a gap in the market: building tools to help those security teams do their jobs. Today, am Israeli startup called Rezilion that is doing just that — building automation tools for DevSecOps, the area of IT that addresses the needs of security teams and the technical work that they need to do in their jobs — is announcing $30 million in funding.

Guggenheim Investments is leading the round with JPV and Kindred Capital also contributing. Rezilion said that unnamed executives from Google, Microsoft, CrowdStrike, IBM, Cisco, PayPal, JP Morgan Chase, Nasdaq, eBay, Symantec, RedHat, RSA and Tenable are also in the round. Previously, the company had raised $8 million.

Rezilion’s funding is coming on the back of strong initial growth for the startup in its first two years of operations.

Its customer base is made up of some of the world’s biggest companies, including two of the “Fortune 10” (the top 10 of the Fortune 500). CEO Liran Tancman, who co-founded Rezilion with CTO Shlomi Boutnaru, said that one of those two is one of the world’s biggest software companies, and the other is a major connected device vendor, but he declined to say which. (For the record, the top 10 includes Amazon, Apple and Alphabet/Google.)

Tancman and Boutnaru had previously co-founded another security startup, CyActive, which was acquired by PayPal in 2015; the pair worked there together until leaving to start Rezilion.

There are a lot of tools out in the market now to help automate different aspects of developer and security operations. Rezilion focuses on a specific part of DevSecOps: large businesses have over the years put in place a lot of processes that they need to follow to try to triage and make the most thorough efforts possible to detect security threats. Today, that might involve inspecting every single suspicious piece of activity to determine what the implications might be.

The problem is that with the volume of information coming in, taking the time to inspect and understand each piece of suspicious activity can put enormous strain on an organization: it’s time-consuming, and as it turns out, not the best use of that time because of the signal to noise ratio involved. Typically, each vulnerability can take 6-9 hours to properly investigate, Tancman said. “But usually about 70-80% of them are not exploitable.” That represents a very inefficient use of the security team’s time and energy.

“Eight of out ten patches tend to be a waste of time,” Tancman said of the approach that is typically made today. He believes that as its AI continues to grow and its knowledge and solution becomes more sophisticated, “it might soon be 9 out of 10.”

Rezilion has built a taxonony and an AI-based system that essentially does that inspection work as a human would do: it spots any new, or suspicious, code, figures out what it is trying to do, and runs it against a company’s existing code and systems to see how and if it might actually be a threat to it or create further problems down the line. If it’s all good it essentially whitelists the code. If not it flags it to the team.

The stickiness of the product has come out of how Tancman and Boutnaru understand large enterprises, especially those heavy with technology stacks, operate these days in what has become a very challenging environment for cybersecurity teams.

“They are using us to accelerate their delivery processes while staying safe,” Tancman said. “They have strict compliance departments and have to adhere to certain standards,” in terms of the protocols they take around security work, he added. “They want to leverage DevOps to release that.” He said Rezilion has generally won over customers in large part for simply understanding that culture and process and helping them work better within that. “Companies become users of our product because we showed them that, at a fraction of the effort, they can be more secure.” This has special resonance in the world of tech, although financial services and others that essentially leverage technology as a significant foundation for how they operate, are also among the startup’s user base.

Down the line, Rezilion plans to add in remediation and mitigation into the mix to further extend what it can do with its automation tools, which is part of where the funding will be going, too, Boutnaru said. But he doesn’t believe it will ever replace the human in the equation.

“It will just focus them on the places where you need more human thinking,” he said. “We’re just removing the need for tedious work.”

In that grand tradition of enterprise automation, then, it will be interesting to watch which other automation-centric platforms might make a move into security alongside the other automation they are building. For now, Rezilion is forging out an interesting enough area for itself to get investors interested.

“Rezilion’s product suite is a game changer for security teams,” said Rusty Parks, senior MD of Guggenheim Investments, in a statement. “It creates a win-win, allowing companies to speed innovative products and features to market while enhancing their security posture. We believe Rezilion has created a truly compelling value proposition for security teams, one that greatly increases return on time while thoroughly protecting one’s core infrastructure.”

MarginEdge announced Monday it raised $18 million in Series B funding to give restaurant operators a real-time view into their costs.

Co-founder and CEO Bo Davis founded the company with Roy Phillips and Brian Mills in 2015. Both Davis and Phillips are veterans of the restaurant industry: Davis was previously the founder of conveyor belt sushi restaurant chain Wasabi, while Phillips was an executive at Bloomin Brands.

What they recognized with independent restaurants was that they struggled with workflow like invoices and tracking food costs and were either building internal tools to help them stay on top of things or were still operating with pen and paper or spreadsheets.

“We focused on building something our friends would like,” Davis told TechCrunch. “We spent three years on the product and worked with 20 restaurants to use the software and focus on getting it right instead of rushing to market.”

MarginEdge’s tool is a restaurant management app that works with a business’ point of sale to streamline inventory, cost-tracking, ordering and recipes to eliminate the paperwork. It also captures all invoices, receipts or bills and converts them to line-item details within 24 hours. It is designed for independent restaurant owners that have under 50 units, Davis said.

Since launching its app in 2018, the Virginia-based company is seeing its platform used in over 2,500 restaurants. It raised a Series A in 2019, then an A2 in 2020 and with the latest round, led by IGC Hospitality, has raised $25 million in total.

IGC Hospitality, which operates restaurant properties, is not only an investor, but is also a customer, said Jeffrey Brosi, founder and managing partner. The company was using some different technology platforms to manage inventory and sales, but was looking for something to manage its whole inventory process.

“Bo came in and did a presentation, and it was amazing,” Brosi added. “The biggest thing for us is [being] user friendly. MarginEdge also has great customer service. We’ve invested in a few companies in the hospitality industry, and know the pain points and what we want to fix. If it makes sense financially, we will invest. This was one pain point that we didn’t have, and Bo filled that void.”

Like all restaurants over the past 18 months, Davis said the global pandemic caused MarginEdge to step back and evaluate. Despite many restaurants going out of business, he credits his business taking off again to restaurants rethinking their processes.

“We were lucky enough to be in a good position with capital that we could keep our team,” he added. “Revenue decreased for the first time, but we grew 45% even with COVID and as of Q1 was seeing 200% annual growth.”

MarginEdge has over 400 employees and its platform processes 45,000 invoices a week. Davis intends to invest the new funding in building out the leadership team, product development, building new features for the back office and on data science, an area he just received an advanced degree in, he said.

The company is using benchmark data around sales, food costs and labor costs and would like to provide more insights to its customers as it relates to inflation, which affects all of those aspects, and as a result, the menu prices.

“A lot of it is using data to understand menu pricing and what other people are doing so you are not pricing yourself out of the market or operating on margins where you can’t survive,” Davis added. “It will be all about predicting rather than reporting. The two things in the kitchen that are hardest are the startup prep list and the inventory late at night, and we make both easier.”

Freshworks disclosed on Monday that it is aiming for a valuation of up to $9 billion in its US initial public offering in which it is hoping to raise over $800 million.

The California-based firm, which started its journey in India and rivals Salesforce, said it plans to sell 28.5 million shares at a price range of $28 to $32. If the firm is able to sell its shares at the top range, it will raise $912 million. Freshworks had originally filed paperworks for its IPO in late August, but hadn’t disclosed several figures.

The 11-year-old firm was last valued at $3.5 billion in a financing round in November 2019. The startup considered raising a pre-IPO round earlier this year at a valuation of over $5 billion but decided against it, a person familiar with the matter told TechCrunch.

Freshworks, which counts Accel, Sequoia Capital India, Tiger Global, and CapitalG among its existing investors, develops and offers a variety of business software tools, from CRM to help-desk software. In recent years, it has built enterprise SaaS platform to give customers a set of integrated business tools and aggressively pursued broadening its products offering.

The startup, which has applied to list its shares on Nasdaq under the symbol FRSH, serves over 50,000 customers and its revenue in the first six months of the year grew to $169 million, up from $11 million during the same period last year. At the same time, its net loss dropped to $9.8 million from $57 million a year ago.

“First, based on industry research from International Data Corporation (IDC), we believe we have a large addressable market of approximately $120 billion,” the firm said in an updated S-1 filing on Monday.

“Second, based on our internal data and analysis, we estimate the annual potential market opportunity for our products to be $77 billion. […] We expect our estimated market opportunity will continue to expand as customers onboard more or expand usage of our products, increasing the weighted average ARR per customer for use of our products.”

TechCrunch recently spoke with Freshworks co-founder and chief executive Girish Mathrubootham about the business. Mathrubootham is one of the most respected entrepreneurs in India. Along with three friends, Mathrubootham launched an $85 million venture fund in late July this year to back early-stage SaaS startups in the world’s second largest internet market.

Cresicor, a consumer packaged goods trade management platform startup, raised $5.6 million in seed funding to further develop its tools for more accurate data and analytics.

The company, based remotely, focuses on small to midsize CPG companies, providing them with an automated way to manage their trade promotion, a process co-founder and CEO Alexander Whatley said is done primarily manually using spreadsheets.

Here’s what happens in a trade promotion: When a company wants to run a discount on one of their slower-selling items, the company has to spend money to do this — to have displays set up in a store or have that item on a certain shelf. If it works, more people will buy the item at the lower price point. Essentially, a trade promotion is the process of spending money to get more money in the future, Whatley told TechCrunch.

Figuring out all of the trade promotions is a complicated process, Whatley explained. Companies receive data feeds on the promotions from several different places, revenue data from retailers, accounting source data to show how many units were shipped and then maybe data directly from retailers. All of that has to be matched against the promotion.

“No API is bringing this data back to brands, so our software helps to automate and track these manual processes so companies can do analytics to see how the promotions are doing,” he added. “It also helps the finance team understand expenses, including which are valid and those that are not.”

What certain companies spend on trade promotions can represent their second-largest cost behind manufacturing, and companies often end up reinvesting between 20% and 30% of their revenue into trade promotions, Whatley said. This is a big market, representing untapped growth, especially with U.S. CPG sales topping $720 billion in 2020.

“You can see how messy the whole industry is, which is why we have a bright future and huge TAM,” he added. “With this new funding, we can target other parts of the P&L like supply chain and salaries. We also provide analytics for their strategy and where they should be spending it — which store, on which supply. By allocating resources the right way, companies typically see a 10% boost in sales as a result.”

Whatley started the company in 2017 with his brother, Daniel, Stuart Kennedy and Nikki McNeil while a Harvard undergrad. Since raising the funding back in February, the company has grown 2.5x in revenue, while employee headcount grew 4x over the past 12 months to 20.

Costanoa Ventures led the investment and was joined by Torch Capital and a group of angel investors including Fivestars CTO Matt Doka and Hu’s Kitchen CEO Mark Ramadan.

John Cowgill, partner at Costanoa, said though Cresicor raised a seed round, the company was already acquiring brands and capital before releasing a product and grew to almost a Series A company without any outside capital, saying it “blew me away.”

Cresicor is the “perfect example” of a company that Costanoa would get excited about — a vertical software company using data or machine learning to augment a pain point, Cowgill added.

“The CPG industry is in the middle of a rapid change where we see all of these emerging, digital native and mission-driven brands rapidly eating share from incumbents,” he added. “For the next generation of brands to compete, they have to win in trade promotion management. Cresicor’s opportunity to go beyond trade is significant. It is just a starting point to build a company that is the core enabler of great brands.”

The new funding will be used mainly to hire more talent in the areas of engineering and customer success so the company can hit its next benchmarks, Alexander Whatley said. He also intends to use the funding to acquire new brands and on software development. Cresicor boasts a list of customers including Perfect Snacks, Oatly and Hint Water.

The retail industry is valued at $5.5 trillion, and one-fifth of it is CPG, Whatley said. As a result, he has his eye on going after other verticals within CPG, like electronics and pet food, and then expanding into other areas.

“We are also going to work with enterprise companies — we see an opportunity to work with companies like P&G and General Mills, and we also want to build an ecosystem around trade promotion and launch into other profit and loss areas,” Whatley said.

Obstetrics virtual care company Babyscripts raised $12 million in the first round of a Series B investment that will enable the company to accelerate the roll out of its virtual maternity care tool platform to providers.

MemorialCare Innovation Fund led the investment and was joined by Philips Ventures and the CU Healthcare Innovation Fund. The new round of funding gives Babyscripts around $26 million raised to date, Babyscripts co-founder and president Juan Pablo Segura told TechCrunch.

We last checked in on Washington, D.C-based Babyscripts two years ago when Phillips led a $6 million investment into the company. A lot has happened since 2019, Segura said.

At the time, the company had one product and was working with hospitals and healthcare providers to distribute a medical device and mobile app to expecting mothers for monitoring blood pressure and providing neonatal care information.

Today, the company has multiple kits that can be targeted to patients, including blood pressure monitoring, weight and captured blood sugars. Babyscripts can automate 40% to 50% of prenatal care and alert doctors as health problems occur so that both mother and baby are healthy. At one physician site, use of Babyscripts helped open up close to 1,000 appointments in a year so obstetricians there could focus on higher-risk patients, Segura said.

It also has larger population health focuses — driven mainly by the pandemic — to help higher-risk expecting mothers with remote patient monitoring and virtual care, as well as work to solve health inequity issues.

More than 70% of patients using Babyscripts are on Medicaid, which may be the only safety net provider in the patient’s geography, Segura said. As a result, the company began forming partnerships with public health departments, managed Medicaid plans and providers, like Priva Health, so that Babyscripts could be paid for at the local level.

“Right now, one of the biggest challenges for a pregnant patient on Medicaid and working an hourly job is asking moms to choose between prenatal care and putting food on the table,” he added. “Fifty percent of maternal complications can be avoided, but a lot of these issues come from the fact that the model of delivery care hasn’t changed in 40 years. About 12% to 15% of deaths come from blood pressure complications. If we could monitor via Babyscripts or more coordinated care to get intervention faster, we could eliminate massive swaths of delivery events in maternity and reduce mortality events in this country.”

Amid the pandemic, Babyscripts saw enrollments grow 10x. Segura decided to go after a new round of funding to meet that need and opportunities that could be addressed. Babyscripts’s program is now being used by 75 health systems in 32 states, and the company is monitoring 250,000 women each year.

The company continues to receive inquiries from markets and payers that are looking to do more for pregnant patients, so Segura wants to be able to grow to meet that demand and invest in a go-to-market strategy to get its kits into as many hands as possible.

The new funding will also enable the company to release new features. It recently launched a mental health product and is developing a substance use disorder experience amid others, he said. Babyscripts is also working on a national level with payers and is building an infrastructure around that as well.

The company has 45 employees currently, and Segura expects to double that in the next 12 to 18 months in the areas of product, payer growth, clinical expertise, implementation and customer success. Babyscripts is also working toward being available in all 50 states and bringing in more public health departments and payers as partners to get more health systems working together, he added.

Meanwhile, Caleb Winder, managing director of MemorialCare Innovation Fund, said he was attracted to both Babyscripts’ outcomes data and addressing the high rates of complications in pregnancies. It also not only eliminates waiting for hours at the doctor’s office just to be seen for five minutes, but also closes some gaps in care, he added.

“One of the problems in this space is that providers, as much as they want to help, are stretched thin,” Winder said. “There are also access problems. Something like 50% of counties in this country lack one OB, so in-person care is difficult. Babyscripts can help patients anywhere be monitored and their health managed virtually. It can also alert a clinician when there is a real problem. We saw their data, for example, that showed preeclampsia was diagnosed 13 days faster than the standard of care.”