Author: azeeadmin

13 Sep 2018

The benefits of exhibiting in Startup Alley at Disrupt Berlin 2018

This reminder goes out to all the early-stage startup founders across Europe and beyond. It won’t be long until thousands of us descend on Germany to attend Disrupt Berlin 2018, which takes place on November 29-30. If you want to make the most of your time there (and why the heck wouldn’t you?), then buy a Startup Alley Exhibitor Package and set up shop in Startup Alley.

Startup Alley lies at the heart of the Disrupt Alley Expo floor, and it’s home to hundreds of early-stage startups showcasing the latest technology products, platforms and services to thousands of attendees, including influential investors and tech titans. Not to mention hundreds of accredited reporters, bloggers and correspondents from around the world — from the likes of Bloomberg, CNBC, Financial Times and Mashable.

Luke Heron, the CEO of TestCard.com, benefitted from that kind of media exposure when his company exhibited in Startup Alley at Disrupt Berlin 2017.

“We got fantastic coverage in Engadget, which was really valuable. Coverage is the life blood of a startup. Cash at the beginning of the start-up journey is difficult to come by, and an article from a credible organization can help push things in the right direction.”

Exhibiting in Startup Alley is also a phenomenal networking opportunity. It offers unfettered access to potential customers, collaborators and future partners, and it generates the kind of inspiration that comes from connecting with creative, like-minded individuals. Here’s how Vlad Larin, co-founder of Zeroqode, described his experience exhibiting in Startup Alley.

“Startup Alley at TechCrunch Disrupt was a massively positive experience. It gave us the chance to show our technology to the world and have meaningful conversations with investors, accelerators, incubators, solo founders and developers.”

A Startup Alley Exhibitor Package sells for €895 + VAT. And for those hard-earned euros, you get a one-day exhibit table, three Disrupt Berlin Founder Passes (if you buy before October 25), access to CrunchMatch (our free investor-to-startup matching platform), access to all Disrupt stages, full use of the Startup Alley Exhibitor lounge and access to the Disrupt press list.

And here’s another really cool possibility. If your startup earns enough combined attendee and TechCrunch editorial votes, you might win a Wild Card slot and compete in Startup Battlefield — our pitch competition with a $50,000 cash prize. Don’t think it could happen? Guess again. At Disrupt NY 2017, RecordGram exhibited in Startup Alley, earned the Wild Card and won the Startup Battlefield competition — sweet!

Disrupt Berlin 2018 goes down on November 29-30. Are you ready to network your startup to the next level? Secure your spot and book your Startup Alley Exhibitor Package today.

13 Sep 2018

Kano’s latest computer kit for kids doubles down on touch

Learn-to-code startup Kano, whose products aim to turn kids into digital makers, has taken the wraps off the latest incarnation of its build-it-yourself computer kit.

With the new flagship Kano is doubling down on touch interactions — urging kids to “make your own tablet”. The Computer Kit Touch packs a 10.1″ HD touchscreen, along with Kano’s now familiar bright orange wireless keyboard which comes with a built in trackpad.

While touch is becoming increasingly central to its products, Kano says the keyboard remains an important component of the product — supporting text-based coding apps which its platform also provides access to, as well as the more approachable drag-and-drop block-based coding systems that do really benefit from having a touchscreen to hand.

The kit, which Kano says is generally (but not exclusively) aimed at the 6-13 age range, is on sale from today, priced at $279.99 — via its website (Kano.me), as well as from selected retailers and e-tailers.

The Raspberry Pi powered computer is also getting increased storage capacity in this upgrade — of 16GB. But the main refresh is around updating Kano OS, Kano’s kid-friendly Pi topper, with expanded support for touch controls, according to founder Alex Klein .

Last year Kano combined touch and keyboard based interaction into a single product, the Computer Kit Complete — calling that a DIY laptop.

The 2018 refreshed version looks much the same, with enhancements generally behind the scenes and/or under the hood.

“The big moves this year are advancing the software and content ecosystem,” says Klein. “How it’s all integrated together.”

He points to another coding kit the team has up for pre-order, slated to ship next month — a co-branded Harry Potter gizmo in which kids get to build a motion-sensitive “coding wand” and use it to cook up their own digital spells, helped along by Kano’s software — adding: “With the Potter kit we’re bringing Kano code — to create a system, the ability to blend and change physics engines and sounds and particle systems — to tablets. So we’ve now got a touch-based interaction model for that e-product, as well as mouse and keyboard, and so we’ve brought that software system now to the Computer Kit Touch.

“You can code by dragging and dropping blocks with your fingers, you can paint and draw. You can change the pitch of a loop or a melody by running your fingers up and down and then using a change of a parameter mess with how quickly that melody changes, mess with the number of layers, you can make a beat or a loop using a touch-based digital audio workstation style X-Y plane. You can go into any one of our creative coding apps and pull in touch-based interactions, so instead of just using a mouse, a click and point, you can make an app that responds to swipes and taps, and different speeds, and in different locations.”

“On the touch kit itself there’s also a set of new content that demystifies how touchscreens work and peels back the layer of the screen and shows you what’s behind, and you’re kind of touching the intersection of the different copper wires and seeing what’s happening beneath,” he adds.

“There’s obviously a big hardware upgrade with the new ability to touch it, to take it with you. We’ve refined a lot of the components, we’ve improved the speed, the battery life. But really the core of it is this upgraded software that integrates with all the other kit.”

Talking of other kit, the learn-to-code space is now awash with quasi-educational gizmos, leaving parents in Western markets spoiled for choice of what to buy a budding coder.

Many more of these gizmos will be unboxed as we head into the holiday season. And while Kano was something of a startup pioneer here — a category creator, as Klein tells it — there’s now no shortage of tech for kids promising some kind of STEM-based educational benefit. So it’s facing an ever-growing gaggle of competition.

Kano’s strategy to stand out in an increasingly contested space is to fix on familiar elements, says Stein — flagging for example the popular game Minecraft — which runs on the Kano kit, and for which there’s a whole subsection of the Kano World community given over to hacking Minecraft.

And, well, aside from block-headed Minecraft characters it’s hard to find a character more familiar to children than the fictional wizard Harry Potter. So you can certainly see where Kano’s trying to get with the coding wand.

“We broke our first month pre-order target in one day,” he says of that forthcoming e-product (RRP ~$130). “There was massive coverage, massive traffic on our site, it was picked up all over the place and we’re very happy with the pre-orders so far. As are our retail partners.”

The Potter co-branding play is certainly Kano trying to make its products cast a wider spell by expanding the appeal of coding from nerdy makers to more mainstream child consumers. But how successful that will be remains to be seen. Not least because we’ve seen this sort of tactic elsewhere in this space.

Sphero, for example, is now rolling back the other way — shifting away from Star Wars co-branded bots to a serious education push focused on bringing STEM robotics to schools. (Although Kano would doubtless say a programmable bot that rolls is not the same as a fully fledged kit computer that can run all manner of apps, including familiar and fashionable stuff like Minecraft and YouTube.)

“We’re very pleased to see that this category that we created, with that Kickstarter campaign in 2013 — it’s become more than what some people initially feared it would be which was niche, maker ‘arcanery’; and it’s becoming a major consumer phenomenon,” he says. “This notion that people want to make their own technology, learn how to code and play in that way. And not just kids — people of all ages.”

On the hard sales front, Klein isn’t breaking out numbers for Potter kit pre-sales at this stage. But says the various incarnations of its main computer kit have shipped ~360,000 units since September 2014. So it’s not Lego (which has also moved into programmable kits) — but it’s not bad either.

In recent years Kano has also branched out into offering Internet of Things kits, previewing three code-your-own connected devices in 2016 — and launching Kickstarter campaigns to get the products to market.

It’s since shipped one (the Pixel kit) but the other two (a build-it-yourself camera kit and a DIY speaker) remain delayed — leaving crowdfunder backers waiting for their hardware.

Why the delay? Have Kano’s priorities shifted — perhaps because it’s focusing efforts on cobranded products (like the Potter wand) vs creating more of its own standalone devices?

“We are still committed to shipping the speaker kit, the camera kit,” Klein tells TechCrunch. “A big reason for [the delay] is not only the fact that the company is in a position now where we have mass distribution, we have great partners — perennially testing new product ideas — and we want to make sure that products are going to resonate with, not just a small group of people but many, many people, of many different age groups and interests before we release them.”

He also points out that any backers of the two devices who want refunds can get them in full.

Though he also says some are choosing to wait — adding that Kano remains committed to shipping the devices, and saying for those that do wait there will be a few extra bells and whistles than originally specced out in the crowdfunder campaign.

The delay itself looks like the market (and consumer tastes) moving quicker than Kano predicted — and so it finds itself wishing its products could deliver more than it originally planned (but without a wand to wave to instantly achieve that).

This is also a pitfall with previewing anything months or years ahead of time, of course. But the expense and complexity of building hardware makes crowdfunding platforms attractive — even for a relatively established brand like Kano.

“The delay is really unfortunate,” he adds. “We did say they would ship earlier but what we have done is we’ve offered any backer a full refund on the camera and the speaker if they don’t want to wait. But if they do wait they will receive incredible camera, incredible speaker. Both of them are going to benefit from the advancements made in low cost computing in the last year.

“The speaker as well is going to have elements that weren’t even part of the original campaign. On our side it’s critical that we get those products absolutely right and that they feel mass, and that they demystify not only coding and the Internet of Things, which was part of the original purpose, but in the case of the camera and the speaker there are elements that have come to the fore in more recent months like voice interaction and image recognition that we feel if our mandate is to demystify technology and we’re shipping a camera and a speaker… that’s kind of part of it. Make it perfect, make it of the moment. And for any backer who doesn’t want to wait for that, no problem at all — we’ll refund you 100%.”

Beyond reworking its approach with those perhaps overly ambitious connected devices, Kano has additional release plans in its pipeline — with Klein mentioning that additional co-branded products will be coming next year.

He says Kano is also eyeing expanding into more markets. “There’s a significant market for Kano even beyond our traditional leading position amongst 6-13 year olds in the US and the UK. There’s a really strong market for people who are beyond the US and the UK and we’re now at a scale where we can start really investing in these distribution and localization relationships that have come our way since year one,” he says.

And he at least entertains the idea of a future Kano device that does away with a keyboard entirely — and goes all in on touch — when we suggest it.

“Would we move to a place where we have no keyboard in a Kano computer? I think it’s very possible,” he says. “It might be a different form factor, it might be smaller, it might fit in your pocket, it might have connectivity — that kind of stuff.”

Which sort of sounds like Kano’s thinking about making a DIY smartphone. If so, you heard it here first.

The five and a half year old London-based startup is not yet profitable but Klein flags growth he dubs “fast enough” (noting it doubled sales year-over-year last year, a “trend” he says continued in the first half of this year), before adding: “It’s not impossible for us to get to profitability. We have a lot of optionality. But at the moment we are making investments — in software, in team — we have partner products coming out like Harry, we’ll have more coming out next year. So in terms of absolute positive EBITDA not yet but we are profitable on a units basis.”

Kano closed a $28M Series B last year — and has raised some $44.5M in all at this stage, according to Crunchbase. Is it raising more funding now? “I think any entrepreneur who is looking to do something big is always in some sense keeping an eye out for sources of capital,” replies Klein. “As well as sources of talent.”

He points by way of a connected aside to this study of C-suite execs, carried out by Stripe and Harris poll, which found that access to software developers is a bigger constraint than access to capital, saying: “I read that and I thought that that gap — between the 1% of 1% who can develop software or hardware and the rest of us — is exactly the challenge that Kano set out to solve from a consumer and education perspective.”

“In terms of fundraising we do get a lot of inbound, we have great investors at the moment,” he adds. “We do know that the scale of this particular challenge — which is demystify technology, become synonymous with learning to code and making your own computers — that requires significant support and we’ll be continuing to keep our eyes out as we grow.”

 

13 Sep 2018

Discover Sono Motors’ vision of the electric car at Disrupt Berlin

New car makers have been popping up left and right. But instead of creating yet another Tesla-like company, German company Sono Motors is working on something completely new — a solar-powered car. That’s why I’m excited to announce that the company’s co-founder and CEO Laurin Hahn will join us at TechCrunch Disrupt Berlin.

Sono Motors has been working for years on its first car — the Sion. The company now has a handful of prototypes on the road and is refining its manufacturing process to ship those cars to customers who preordered.

The company is focusing on compact cars at first with the Sion. The car looks more like a Volkswagen Golf than a Mercedes E-Class. And it makes a ton of sense given that a solar car isn’t your average car.

People in the automotive industry will tell you that cars remain parked for 90 percent or 95 percent of the time. While it’s hard to find the exact figure, it’s true that you don’t go on a road trip every day.

Many people drive to work. It’s usually a quick ride and you just need your car in the morning and in the evening. The Sion is perfect for this. With a range of 250 kilometers (155 miles), you can usually drive back and forth quite a lot.

And every day, you get an additional 30 kilometers of range using the solar panels. It might be just enough so that you never have to charge your car. But if you’re running low, you can still plug your car just like any other electric car.

Many people already have a big car for weekend trips and longer getaways. In that case, the Sion can be a good second car for your errands and day-to-day drives. It could be useful for medium cities with few public transportation options.

Sono Motors knows from day one that a car manufacturer needs to be a service company as well. You’ll be able to share your car with other users and get paid for it.

There are many other ambitious features that I haven’t listed here. It’s clear that Hahn will have an interesting story to tell on stage at Disrupt Berlin. Building a car manufacturer from scratch sounds like an insane idea as well.

TechCrunch is coming back to Berlin to talk with the best and brightest people in tech from Europe and the rest of the world. In addition to fireside chats and panels, new startups will participate in the Startup Battlefield Europe to win the coveted cup.

Grab your ticket to Disrupt Berlin to listen to Sono Motors’ story. The conference will take place on November 29-30.

13 Sep 2018

Security flaw in ‘nearly all’ modern PCs and Macs exposes encrypted data

Most modern computers, even devices with disk encryption, are vulnerable to a new attack that can steal sensitive data in a matter of minutes, new research says.

In new findings published Wednesday, F-Secure said that none of the existing firmware security measures in every laptop it tested “does a good enough job” of preventing data theft.

F-Secure principal security consultant Olle Segerdahl told TechCrunch that the vulnerabilities put “nearly all” laptops and desktops — both Windows and Mac users — at risk.

The new exploit is built on the foundations of a traditional cold boot attack, which hackers have long used to steal data from a shut-down computer. Modern computers overwrite their memory when a device is powered down to scramble the data from being read. But Segerdahl and his colleague Pasi Saarinen found a way to disable the overwriting process, making a cold boot attack possible again.

“It takes some extra steps,” said Segerdahl, but the flaw is “easy to exploit.” So much so, he said, that it would “very much surprise” him if this technique isn’t already known by some hacker groups.

“We are convinced that anybody tasked with stealing data off laptops would have already come to the same conclusions as us,” he said.

It’s no secret that if you have physical access to a computer, the chances of someone stealing your data is usually greater. That’s why so many use disk encryption — like BitLocker for Windows and FileVault for Macs — to scramble and protect data when a device is turned off.

But the researchers found that in nearly all cases they can still steal data protected by BitLocker and FileVault regardless.

After the researchers figured out how the memory overwriting process works, they said it took just a few hours to build a proof-of-concept tool that prevented the firmware from clearing secrets from memory. From there, the researchers scanned for disk encryption keys, which, when obtained, could be used to mount the protected volume.

It’s not just disk encryption keys at risk, Segerdahl said. A successful attacker can steal “anything that happens to be in memory,” like passwords and corporate network credentials, which can lead to a deeper compromise.

Their findings were shared with Microsoft, Apple, and Intel prior to release. According to the researchers, only a smattering of devices aren’t affected by the attack. Microsoft said in a recently updated article on BitLocker countermeasures that using a startup PIN can mitigate cold boot attacks, but Windows users with “Home” licenses are out of luck. And, any Apple Mac equipped with a T2 chip are not affected, but a firmware password would still improve protection.

Both Microsoft and Apple downplayed the risk.

Acknowledging that an attacker needs physical access to a device, Microsoft said it encourages customers to “practice good security habits, including preventing unauthorized physical access to their device.” Apple said it was looking into measures to protect Macs that don’t come with the T2 chip.

When reached, Intel would not to comment on the record.

In any case, the researchers say, there’s not much hope that affected computer makers can fix their fleet of existing devices.

“Unfortunately, there is nothing Microsoft can do, since we are using flaws in PC hardware vendors’ firmware,” said Segerdahl. “Intel can only do so much, their position in the ecosystem is providing a reference platform for the vendors to extend and build their new models on.”

Companies, and users, are “on their own,” said Segerdahl.

“Planning for these events is a better practice than assuming devices cannot be physically compromised by hackers because that’s obviously not the case,” he said.

13 Sep 2018

Nvidia launches the Tesla T4, its fastest data center inferencing platform yet

Nvidia today announced its new GPU for machine learning and inferencing in the data center. The new Tesla T4 GPUs (where the ‘T’ stands for Nvidia’s new Turing architecture) are the successors to the current batch of P4 GPUs that virtually every major cloud computing provider now offers. Google, Nvidia said, will be among the first to bring the new T4 GPUs to its Cloud Platform.

Nvidia argues that the T4s are significantly faster than the P4s. For language inferencing, for example, the T4 is 34 times faster than using a CPU and more than 3.5 times faster than the P4. Peak performance for the P4 is 260 TOPS for 4-bit integer operations and 65 TOPS for floating point operations. The T4 sits on a standard low-profile 75 watt PCI-e card.

What’s most important, though, is that Nvidia designed these chips specifically for AI inferencing. “What makes Tesla T4 such an efficient GPU for inferencing is the new Turing tensor core,” said Ian Buck, Nvidia’s VP and GM of its Tesla data center business. “[Nvidia CEO] Jensen [Huang] already talked about the Tensor core and what it can do for gaming and rendering and for AI, but for inferencing — that’s what it’s designed for.” In total, the chip features 320 Turing Tensor cores and 2,560 CUDA cores.

In addition to the new chip, Nvidia is also launching a refresh of its TensorRT software for optimizing deep learning models. This new version also includes the TensorRT inference server, a fully containerized microservice for data center inferencing that plugs seamlessly into an existing Kubernetes infrastructure.

 

 

13 Sep 2018

Apple’s Watch isn’t the first with an EKG reader but it will matter to more consumers

Apple’s COO Jeff Williams exuberantly proclaimed Apple’s Watch was the first to get FDA clearance as an over-the-counter electrocardiogram (EKG) reader during the special event at Apple headquarters on Wednesday. While Apple loves to be first to things, that statement is false.

AliveCor has held the title of first since late last year for its KardiaMobile device, a $100 stick-like metal unit you attach to the back of a smartphone. Ironically, it also received FDA clearance for the Kardiaband, an ECG reader designed to integrate with the Apple Watch and sold at Apple stores and just this week, the FDA gave the go ahead for AliveCor’s technology to screen for blood diseases, sans blood test.

However, the Apple Watch could be the first to matter to a wider range of consumers. For one, Apple holds a firm 17 percent of the world’s wearables market, with an estimated shipment volume of 28 million units in just 2018. While we don’t know how many AliveCor Kardiaband and KardiaMobile units were sold, it’s very unlikely to be anywhere near those numbers.

For another thing, a lot of people, even those who suspect they have a heart condition, might have some hesitations around getting a separate device just to check. Automatic integration makes it easy for those curious to start monitoring without needing to purchase any extra equipment. Also, while heart disease is the number one killer in the U.S. and affects a good majority of the global population, most of us probably aren’t thinking about our heart rhythm on a daily basis. Integrating an EKG reader straight into the Watch makes monitoring seamless and could take away the fear some may have about finding out how their heart is doing.

Then there’s the Apple brand, itself. Many hospitals are now partnering with Apple to use iPads and it’s reasonable to think there could be some collaboration with the Watch.

“Doctors, hospital systems, health insurers, and self-insured employers don’t want to manage separate partnerships with each of Apple, Xiaomi, Fitbit, Huawei, Garmin, Polar, Samsung, Fossil, and every other wearable manufacturers. They need a cross-platform product that works for all of their patients,” Cardiogram founder and EKG researcher Brandon Ballinger told TechCrunch. “So if Apple becomes the Apple of healthcare, then a company like Cardiogram or AliveCor can become the Microsofts of this space.”

How does this announcement from Apple affect AliveCor? CEO Vic Gundotra shrugs it off. He tells TechCrunch the vast majority of AliveCor’s business is from KardiaMobile, not it’s Apple-integrated ECG reader. “Apple has long alluded they were building something like this into the device,” Gundotra said, “so we’ve been anticipating it.”

13 Sep 2018

Apple’s Watch isn’t the first with an EKG reader but it will matter to more consumers

Apple’s COO Jeff Williams exuberantly proclaimed Apple’s Watch was the first to get FDA clearance as an over-the-counter electrocardiogram (EKG) reader during the special event at Apple headquarters on Wednesday. While Apple loves to be first to things, that statement is false.

AliveCor has held the title of first since late last year for its KardiaMobile device, a $100 stick-like metal unit you attach to the back of a smartphone. Ironically, it also received FDA clearance for the Kardiaband, an ECG reader designed to integrate with the Apple Watch and sold at Apple stores and just this week, the FDA gave the go ahead for AliveCor’s technology to screen for blood diseases, sans blood test.

However, the Apple Watch could be the first to matter to a wider range of consumers. For one, Apple holds a firm 17 percent of the world’s wearables market, with an estimated shipment volume of 28 million units in just 2018. While we don’t know how many AliveCor Kardiaband and KardiaMobile units were sold, it’s very unlikely to be anywhere near those numbers.

For another thing, a lot of people, even those who suspect they have a heart condition, might have some hesitations around getting a separate device just to check. Automatic integration makes it easy for those curious to start monitoring without needing to purchase any extra equipment. Also, while heart disease is the number one killer in the U.S. and affects a good majority of the global population, most of us probably aren’t thinking about our heart rhythm on a daily basis. Integrating an EKG reader straight into the Watch makes monitoring seamless and could take away the fear some may have about finding out how their heart is doing.

Then there’s the Apple brand, itself. Many hospitals are now partnering with Apple to use iPads and it’s reasonable to think there could be some collaboration with the Watch.

“Doctors, hospital systems, health insurers, and self-insured employers don’t want to manage separate partnerships with each of Apple, Xiaomi, Fitbit, Huawei, Garmin, Polar, Samsung, Fossil, and every other wearable manufacturers. They need a cross-platform product that works for all of their patients,” Cardiogram founder and EKG researcher Brandon Ballinger told TechCrunch. “So if Apple becomes the Apple of healthcare, then a company like Cardiogram or AliveCor can become the Microsofts of this space.”

How does this announcement from Apple affect AliveCor? CEO Vic Gundotra shrugs it off. He tells TechCrunch the vast majority of AliveCor’s business is from KardiaMobile, not it’s Apple-integrated ECG reader. “Apple has long alluded they were building something like this into the device,” Gundotra said, “so we’ve been anticipating it.”

13 Sep 2018

Detroit’s StockX raises $44M from GV and Battery to expand marketplace internationally

StockX started as a marketplace for reselling sneakers but has since grown to be much more, bringing its transparent and anonymous marketplace to more verticals. Today the company is announcing a $44 million Series B that will help fuel international and domestic growth while letting the company expand to even more product categories and perhaps opening StockX stores.

The idea driving StockX is simple: Provide a marketplace with fair pricing and ensure the merchandise is authentic. The result scales to nearly day-trading in consumer goods in the same vein as oil futures. In some cases, the seller never touches the product. Sneakers and other in-demand products are priced and sold at rates set by the market rather than the seller. If a particular sneaker is in demand, the price increases.

StockX is among the fastest growing startups in Detroit and Michigan and currently employs 300 in Detroit and 50 in Tempe, Arizona. Founded in 2016 by CEO Josh Luber, COO Greg Schwartz and Dan Gilbert, founder and chairman of Quick Loans, the company has scaled to see more than $2 million in daily transactions and 800,000 users have sold or purchased items on StockX. Today, at an event in Detroit, Luber told the audience that the company is approaching a billion dollar run-rate.

The company has never been capital contrasted and CEO and co-founder Josh Luber told TechCrunch that the company never thought they would have to turn to institutional financing. That’s the comfort of having a billionaire like Gilbert as a co-founder; Luber said Gilbert was always happy to fund StockX.

“We didn’t need money,” Luber told TechCrunch the day before this announcement, adding. “It was really about having external people that that we thought added truly different values than we had around the table.”

Right now the company’s main marketplace centers around sneakers but StockX is built around a platform that works for most ecommerce. It’s a $5 billion market worldwide. Last year the company also launched marketplaces for streetwear, handbags and watches — all verticals with a strong demand in the secondary market.

Scaling the service requires more bodies. Since everything sold on StockX is authenticated — in person — it takes more hands to authenticate more items. With that comes more customer service employees and as the company grows, StockX will need more engineers.

The company is already growing fast but Luber seems ready to double down. In March StockX had 130 people. Today, it’s at 415. He thinks. He confesses it could be a slightly more.

“We have about 50 engineers today and I would quadruple that tomorrow if I could,” he said. “We have about 50 customer service people today. I think it would be safe to double that tomorrow just because the business is growing so fast and we obviously hope it continues to grow as we scale.”

If StockX is going to scale, it needs more employees to ensure the company’s core ethos does not soften. The new round of funding will go far in bringing in the people Luber is seeking including additional members of the C-suite. StockX is running without a CTO, CMO, or CFO — pretty much the entire leadership suite, Luber admits.

It seems this is part of the reasoning behind the funding. The company was not seeking funding but, as Luber tells it, as the company gained attention, investors increasing reached out requesting meetings. Of the meetings they took, there were two firms that meshed with Luber’s vision of growing a marketplace.

The new round of funding comes from GV and Battery Ventures including several high-profile investors including DJ Steve Aoki; model and entrepreneur, Karlie Kloss; streetwear designer Don C; Salesforce founder chairman and co-CEO, Marc Benioff; Bob Mylod, founder and managing partner of Annox Capital; Shana Fisher, managing partner at Third Kind Venture Capital; and Jonathon Triest, managing partner of Ludlow Ventures — only Mylod and Triest are based in the Detroit area.

StockX says it intends to use the funding to expand internationally. Right now StockX only advertises in the US and only supports purchases in U.S. dollars. Going forward it intends to open up local versions of StockX to better support key markets with support for local currency, language and marketing. The company could also open location operations to make shipping and receiving easier and faster.

“In some of these countries, we have, a pretty decent customer base where people are tendered on a VPN,” Luber said. “There are pictures of people that walk around China with a StockX tag hanging off their shoe.”

Fifteen percent of StockX sales currently come from international buyers.

Of the four product categories StockX current sells, sneakers and streetwear make up the bulk of the sales. Before expanding to different verticals, Luber tells me there’s a lot of room for growth in each of the current categories but expanding means more employees.

For instance, each streetwear brand is essentially a sub-vertical, he says, adding that if the company launches a new brand StockX has to assemble a staff around it with brand expertise to build the catalog and product authentication process.

StockX is not ready to announce what other type of products it might sell. Street art seems like one they’re exploring.

Despite the growth, Luber remains committed to Detroit. He said the company will always be headquartered in Detroit and was proud to point to the fact that StockX was the second largest tenant in Dan Gilbert’s marquee Detroit building, One Campus Martius. The company also operates a 30,000 square foot facility in Detroit’s Corktown neighborhood.

StockX could come to other cities though, Luber says. The company is talking about what a StockX “in-real-life” experience would look like: It could be retail, a brand experience, accepting products to be sold or additional operation centers. The company is exploring all the obvious candidates including LA, NYC, San Francisco and Portland.

13 Sep 2018

Detroit’s StockX raises $44M from GV and Battery to expand marketplace internationally

StockX started as a marketplace for reselling sneakers but has since grown to be much more, bringing its transparent and anonymous marketplace to more verticals. Today the company is announcing a $44 million Series B that will help fuel international and domestic growth while letting the company expand to even more product categories and perhaps opening StockX stores.

The idea driving StockX is simple: Provide a marketplace with fair pricing and ensure the merchandise is authentic. The result scales to nearly day-trading in consumer goods in the same vein as oil futures. In some cases, the seller never touches the product. Sneakers and other in-demand products are priced and sold at rates set by the market rather than the seller. If a particular sneaker is in demand, the price increases.

StockX is among the fastest growing startups in Detroit and Michigan and currently employs 300 in Detroit and 50 in Tempe, Arizona. Founded in 2016 by CEO Josh Luber, COO Greg Schwartz and Dan Gilbert, founder and chairman of Quick Loans, the company has scaled to see more than $2 million in daily transactions and 800,000 users have sold or purchased items on StockX. Today, at an event in Detroit, Luber told the audience that the company is approaching a billion dollar run-rate.

The company has never been capital contrasted and CEO and co-founder Josh Luber told TechCrunch that the company never thought they would have to turn to institutional financing. That’s the comfort of having a billionaire like Gilbert as a co-founder; Luber said Gilbert was always happy to fund StockX.

“We didn’t need money,” Luber told TechCrunch the day before this announcement, adding. “It was really about having external people that that we thought added truly different values than we had around the table.”

Right now the company’s main marketplace centers around sneakers but StockX is built around a platform that works for most ecommerce. It’s a $5 billion market worldwide. Last year the company also launched marketplaces for streetwear, handbags and watches — all verticals with a strong demand in the secondary market.

Scaling the service requires more bodies. Since everything sold on StockX is authenticated — in person — it takes more hands to authenticate more items. With that comes more customer service employees and as the company grows, StockX will need more engineers.

The company is already growing fast but Luber seems ready to double down. In March StockX had 130 people. Today, it’s at 415. He thinks. He confesses it could be a slightly more.

“We have about 50 engineers today and I would quadruple that tomorrow if I could,” he said. “We have about 50 customer service people today. I think it would be safe to double that tomorrow just because the business is growing so fast and we obviously hope it continues to grow as we scale.”

If StockX is going to scale, it needs more employees to ensure the company’s core ethos does not soften. The new round of funding will go far in bringing in the people Luber is seeking including additional members of the C-suite. StockX is running without a CTO, CMO, or CFO — pretty much the entire leadership suite, Luber admits.

It seems this is part of the reasoning behind the funding. The company was not seeking funding but, as Luber tells it, as the company gained attention, investors increasing reached out requesting meetings. Of the meetings they took, there were two firms that meshed with Luber’s vision of growing a marketplace.

The new round of funding comes from GV and Battery Ventures including several high-profile investors including DJ Steve Aoki; model and entrepreneur, Karlie Kloss; streetwear designer Don C; Salesforce founder chairman and co-CEO, Marc Benioff; Bob Mylod, founder and managing partner of Annox Capital; Shana Fisher, managing partner at Third Kind Venture Capital; and Jonathon Triest, managing partner of Ludlow Ventures — only Mylod and Triest are based in the Detroit area.

StockX says it intends to use the funding to expand internationally. Right now StockX only advertises in the US and only supports purchases in U.S. dollars. Going forward it intends to open up local versions of StockX to better support key markets with support for local currency, language and marketing. The company could also open location operations to make shipping and receiving easier and faster.

“In some of these countries, we have, a pretty decent customer base where people are tendered on a VPN,” Luber said. “There are pictures of people that walk around China with a StockX tag hanging off their shoe.”

Fifteen percent of StockX sales currently come from international buyers.

Of the four product categories StockX current sells, sneakers and streetwear make up the bulk of the sales. Before expanding to different verticals, Luber tells me there’s a lot of room for growth in each of the current categories but expanding means more employees.

For instance, each streetwear brand is essentially a sub-vertical, he says, adding that if the company launches a new brand StockX has to assemble a staff around it with brand expertise to build the catalog and product authentication process.

StockX is not ready to announce what other type of products it might sell. Street art seems like one they’re exploring.

Despite the growth, Luber remains committed to Detroit. He said the company will always be headquartered in Detroit and was proud to point to the fact that StockX was the second largest tenant in Dan Gilbert’s marquee Detroit building, One Campus Martius. The company also operates a 30,000 square foot facility in Detroit’s Corktown neighborhood.

StockX could come to other cities though, Luber says. The company is talking about what a StockX “in-real-life” experience would look like: It could be retail, a brand experience, accepting products to be sold or additional operation centers. The company is exploring all the obvious candidates including LA, NYC, San Francisco and Portland.

13 Sep 2018

Fintech investment powerhouse Ribbit Capital aims for $420 million with its latest fund

Ribbit Capital, the financial technology investment firm whose portfolio includes hits like the no-fee mobile investment platform Robinhood; cryptocurrency wallet and marketplace provider Coinbase; and Root Insurance, the automotive insurance platform that just joined the billion-dollar startup club; is raising $420 million for its latest fund, according to a filing with the Securities and Exchange Commission.

The fund would be Ribbit’s fifth foray out with limited partners and its $420 million target is only a nominal increase from the $300 million it had set out to raise for its fourth fund last year.

That kind of restraint is remarkable in itself. But with the portfolio of hits Ribbit has amassed, the firm would be forgiven for attempting to raise double its current target.

Ribbit founder, Meyer (Micky) Malka, did not respond to a request for comment.

Coinbase alone is now worth at least $8 billion on paper, and no one laughs when chief executive Brian Armstrong says that his company’s goal is to become the New York Stock Exchange of crypto securities.

Robinhood, another one of Ribbit’s portfolio darlings, is flirting with a $6 billion valuation after its latest funding round earlier this year — and has become synonymous with stock trading for a new generation of investors (despite some criticism about its business model).

Then there are other bets the company has made in the financial services space. Along with Andreessen Horowitz and Battery Ventures, Ribbit made an investment in Cross River Bank, a financial services institution that provides a good chunk of the fintech businesses in the U.S. with their sole link into the world of regulated financial institutions. It was the originator for over $2 billion worth of loans for Max Levchin’s lending business, Affirm (another Ribbit portfolio company, now worth $2 billion) and Upstart (a fintech company that, shockingly, did not make its way into Ribbit’s portfolio).

Lest we forget, there’s another multi-billion-dollar portfolio company in the Ribbit portfolio. The company was also an early investor in Credit Karma, now a $4 billion juggernaut that was founded by a former management trainee at a Pizza Hut.

Just to make the math easier, that’s four companies worth more than $20 billion (on paper) that Ribbit can count in its latest portfolio. Not bad for a fund angling for only $420 million.

Ribbit launched its first fund in 2012, targeting a humble $90 million, when the latest financial technology investment boom was just getting started.

The brainchild of Malka, Ribbit has never really been a fund that claims the spotlight, but Malka has been a financial wizard since the age of 19.

That’s when he co-founded a securities and investment broker-dealer, Heptagon Group, which serviced the U.S. and Malka’s home market of Venezuela. In 1998, Malka created the first online brokerage for financial services in Latin America, Patagon.com. After its acquisition in 2000 for more than $700 million, Malka served as an interim chief executive officer for OpenBank, a Spanish and German online bank.

Malka has been steeped in financial services in both North America and South America and his portfolio not only reflects his knowledge, but also his roots. Malka is still active in Latin American investments, and some of the fintech portfolio that he’s amassed includes up-and-comers in South America’s fintech community, too. Look at Guiabolso, a promising startup that combines Mint, LendingClub and Credit Karma into a single service.

The interest in finance dates back to an early age. Malka likes to recount a story from when he was eight years old and wrote a letter to the tooth fairy asking for money for a lost tooth… Except Malka had certain conditions.

“I wrote, ‘Here is my tooth, please, I do not want to receive bolivars, I will only accept dollars,’” Malka told the online magazine, Ozy.

That passion for finance and attention to detail hasn’t changed in the intervening years.

“Banks have proven to be difficult environments for innovation to flourish, resulting in an antiquated financial services industry that remains relatively untouched by the technology-driven evolution transforming other markets ranging from social media sharing to professional enterprise services,” said Malka, in a statement announcing the launch of his first fund. “The technology to unlock this innovation is in place, and there are entrepreneurs around the world with groundbreaking ideas that have the potential to turn this industry on its head. What’s lacking is the investment, will and expertise to develop and make them reality. It is going to require focused investment to ignite this change, and Ribbit is here to answer the call.”