Category: UNCATEGORIZED

Uber today announced the official completion of its Postmates acquisition deal, which it announced originally back in July. The all-stock deal, valued at around $2.65 billion at the time of its disclosure, sees Postmates join Uber, while continuing to operate as a separate service with its own branding and front-end – while some backend operations, including a shared pool of drivers, will merge.

Uber detailed some of its further thinking around the newly combined companies and what that will mean for the businesses they work with in a new blog post. The company posited the move as of benefit to the merchant population they work with, and alongside the official closure announced a new initiative to encourage and gather customer feedback on the merchant side.

They’re calling it a “regional listening exercise” to be run beginning next year, wherein they’ll work with local restaurant associations and chambers of commerce to hear concerns from local business owners in their own communities. This sounds similar in design to Uber’s prior efforts to focus on driver feedback from a couple of years ago in order to improve the way it works with that side of its double-sided marketplace.

Focusing on the needs of its merchant population is doubly important given the current global pandemic, which has seen Uber Eats emerge as even more of a key infrastructure component in the food service and grocery industries as people seek more delivery options in order to better comply with stay-at-home orders and other public safety recommendations.

As we’ve moved to work from home during the pandemic, it’s been challenging for remote workers to feel connected. Loop Team, a new entrant into the enterprise communications space, thinks the way we are communicating needs improvement. That’s why the startup is releasing Loop Team today, a tool that is trying to use software to reproduce the in-office experience.

Company founder and CEO Raj Singh says that he learned about the problems of feeling disconnected first-hand at a previous remote-first company, but in spite of his best attempts to use technology to produce that in-office feel, he said he continued to feel out of the loop (so to speak). That’s when he decided to build the solution he wanted.

“We’ve looked at a lot of the interactions that happen when you’re physically in an office — the visual communication, the background conversations, the hallway chatter, the serendipitous bumping, things like that. And we built an experience that effectively is a virtual office. And so it tries to represent the best parts of what a physical office experience might be like, but in a virtual form,” Singh explained to me.

While he created this company prior to COVID, the pandemic has highlighted the need for a tool like this. Before he created the software, he interviewed hundreds of people who worked from home to understand their issues working outside of the office and he heard a lot of common complaints.

“There was an office and they didn’t necessarily know what was going on. They didn’t know who was available. They didn’t know who was around. It was difficult to connect. Everything was scheduled through calendar. They were missing some of that presence — and they were feeling lonely or out of touch or out of the loop,” he said.

His company’s solution tries to reproduce the office experience using AI, good, old-fashioned presence awareness and other tech to let team members know what you’re doing and if you’re available to chat. So just as you would wander down the hall and see your colleague on the phone or deeply involved with work on the laptop, and know to leave them be, you could get that same feel with Loop.

Image Credits: Loop Team

It gives the current status of the person, and you can know from looking at the list of people on your team, who’s available to talk and who’s busy. As you go into virtual discussions, the team can see who’s having meetings and individuals can pop in too, just as you might do in the office.

What’s more, you can set up rooms (like in Slack), but these are designed to give you a more personal connection using video and audio for actual discussion. You can work on projects via screen share and people who miss these meetings because of other obligations or time zone differences, can always review what they missed.

While you can do all of these things in Slack and Zoom, or in some combination of similar tools, Loop’s layout and presentation is designed to help you see the conversations in a clear way and expose what you want to see, while hiding parts of the day that don’t interest you.

The product is available for free starting today, but Singh wants to introduce a pricing model sometime next year based on team size. He expects there will always be a freemium version for teams under 10 people.

The company was founded in 2018 and nurtured at the Stanford SRI Institute. It has raised $4.75 million so far. Today it starts on its journey as a startup with its first product, and it’s one that comes with good timing as more teams find themselves working remotely than every before.

On the heels of Facebook taking a big step into customer service with the acquisition of Kustomer for $1 billion, another big move is afoot in the world of CRM. Sinch, a Swedish company that provides cloud-based “omnichannel” voice, video and messaging services to help enterprises communicate with customers, has announced that SoftBank is taking a $690 million stake in the company. Sinch said that it plans to use the proceeds of the share sale for M&A of its own.

“We see clearly how our cloud-based platform helps businesses leverage mobile technology to reinvent their customer experience,” said Oscar Werner, Sinch CEO, to TechCrunch. “Whereas people throughout the world have embraced mobile messaging to interact with friends and family, most businesses have yet to seize this opportunity. We are establishing Sinch as a leader in a global growth market that is still very fragmented, and we’re excited that SoftBank is now helping us realize that vision.”

Specifically, Sinch has issued and sold 3,187,736 shares worth SEK 3.3 billion, and large shareholders have sold a further 5,200,000 shares — with SoftBank the sole buyer.

The move underscores the growing opportunity that those in the world of CRM — which include not just Sinch and Kustomer but Salesforce and many others — are seeing to double down on their services at the moment. With people working and doing everything else remotely, and with the general upheaval we’ve had in the global economy due to Covid-19, there has been an increased demand and strain put on the digital channels that people use to communicate with organizations when they have questions or problems.

The catch is that customer relations has grown to be more than just 1-800 numbers and being on hold for endless hours: it includes social media, email, websites with interactive chats, chatbots, messaging apps, and yes those phone calls.

Organizations like Sinch and Kustomer — which build platforms to help businesses manage all of those fragmented options in what are described as omnichannel offerings, have been capitalising on the demand and are now investing and looking for the next step in their strategies to grow.

For Kustomer that has been leaping into the arms of Facebook, which itself has spotted an opportunity to build out a CRM business to complement its other services for businesses. Recall that it’s also been experimenting and working on its latest Nextdoor competitor to promote local businesses; and it has added a ton of business tools to its messaging apps too.

It will be interesting to see what Salesforce does next. While acquiring Slack gives the company an obvious channel into workplace communications, don’t forget that Slack is also a very popular tool for engaging with people outside of your employee network, too. It will be worth watching how and if Salesforce looks to develop that aspect of the business, too.

For Sinch, its strategy has been around making acquisitions of its own, including paying $250 million to pick up a business unit of SAP, Digital Interconect, which has 1,500 enterprise customers mostly in the US using it to run “omnichannel” CRM. Now the plan will be to do more, since there are still huge swathes of the market that have yet to upgrade and update their CRM approaches.

Sinch, notably, is traded publicly on Sweden’s stock exchange and it currently has a market cap of SEK70 billion ($8.2 billion at current rates). It is profitable and generating cash so has “no need to raise funding for our ongoing business,” Thomas Heath, Sinch’s chief strategy officer and head of investor relations, told TechCrunch.

For SoftBank, the investment marks another step in the company taking sizable stakes in fast-growing public or semi-public tech companies in Europe.

In October, it put $215 million into Kahoot, the online education platform aimed both at students and enterprises, built around the concept of users themselves creating “learning games” that can then be shared with others. Kahoot trades a proportion of its shares publicly on the stock exchange in Norway and like Sinch, the plan is to use a good part of the money for acquisitions.

Not all of SoftBank’s investments in scaled-up European businesses have panned out. Having put around $1 billion into German payments company Wirecard, the company turned out to be one of the biggest scandals in the history of European fintech, facing accounting scandals before collapsing into insolvency earlier this year.

Sinch, as a profitable and a steady business with predictable lines of recurring revenue, looks like a safer bet for now. Even with Salesforce, Facebook and others raising their game, there as Sinch’s CEO says, there is enough of an untapped market that playing well might be enough to do well.

On the heels of Facebook taking a big step into customer service with the acquisition of Kustomer for $1 billion, another big move is afoot in the world of CRM. Sinch, a Swedish company that provides cloud-based “omnichannel” voice, video and messaging services to help enterprises communicate with customers, has announced that SoftBank is taking a $690 million stake in the company. Sinch said that it plans to use the proceeds of the share sale for M&A of its own.

“We see clearly how our cloud-based platform helps businesses leverage mobile technology to reinvent their customer experience,” said Oscar Werner, Sinch CEO, to TechCrunch. “Whereas people throughout the world have embraced mobile messaging to interact with friends and family, most businesses have yet to seize this opportunity. We are establishing Sinch as a leader in a global growth market that is still very fragmented, and we’re excited that SoftBank is now helping us realize that vision.”

Specifically, Sinch has issued and sold 3,187,736 shares worth SEK 3.3 billion, and large shareholders have sold a further 5,200,000 shares — with SoftBank the sole buyer.

The move underscores the growing opportunity that those in the world of CRM — which include not just Sinch and Kustomer but Salesforce and many others — are seeing to double down on their services at the moment. With people working and doing everything else remotely, and with the general upheaval we’ve had in the global economy due to Covid-19, there has been an increased demand and strain put on the digital channels that people use to communicate with organizations when they have questions or problems.

The catch is that customer relations has grown to be more than just 1-800 numbers and being on hold for endless hours: it includes social media, email, websites with interactive chats, chatbots, messaging apps, and yes those phone calls.

Organizations like Sinch and Kustomer — which build platforms to help businesses manage all of those fragmented options in what are described as omnichannel offerings, have been capitalising on the demand and are now investing and looking for the next step in their strategies to grow.

For Kustomer that has been leaping into the arms of Facebook, which itself has spotted an opportunity to build out a CRM business to complement its other services for businesses. Recall that it’s also been experimenting and working on its latest Nextdoor competitor to promote local businesses; and it has added a ton of business tools to its messaging apps too.

It will be interesting to see what Salesforce does next. While acquiring Slack gives the company an obvious channel into workplace communications, don’t forget that Slack is also a very popular tool for engaging with people outside of your employee network, too. It will be worth watching how and if Salesforce looks to develop that aspect of the business, too.

For Sinch, its strategy has been around making acquisitions of its own, including paying $250 million to pick up a business unit of SAP, Digital Interconect, which has 1,500 enterprise customers mostly in the US using it to run “omnichannel” CRM. Now the plan will be to do more, since there are still huge swathes of the market that have yet to upgrade and update their CRM approaches.

Sinch, notably, is traded publicly on Sweden’s stock exchange and it currently has a market cap of SEK70 billion ($8.2 billion at current rates). It is profitable and generating cash so has “no need to raise funding for our ongoing business,” Thomas Heath, Sinch’s chief strategy officer and head of investor relations, told TechCrunch.

For SoftBank, the investment marks another step in the company taking sizable stakes in fast-growing public or semi-public tech companies in Europe.

In October, it put $215 million into Kahoot, the online education platform aimed both at students and enterprises, built around the concept of users themselves creating “learning games” that can then be shared with others. Kahoot trades a proportion of its shares publicly on the stock exchange in Norway and like Sinch, the plan is to use a good part of the money for acquisitions.

Not all of SoftBank’s investments in scaled-up European businesses have panned out. Having put around $1 billion into German payments company Wirecard, the company turned out to be one of the biggest scandals in the history of European fintech, facing accounting scandals before collapsing into insolvency earlier this year.

Sinch, as a profitable and a steady business with predictable lines of recurring revenue, looks like a safer bet for now. Even with Salesforce, Facebook and others raising their game, there as Sinch’s CEO says, there is enough of an untapped market that playing well might be enough to do well.

India’s Oyo has been one of the worst impacted startups with the coronavirus, but it has enough cash to steer through the pandemic and then look at funding further scale, a top executive says.

In a townhall with employees last week, Oyo founder Ritesh Agarwal said the budget lodging firm “continued to hold on to close to a billion dollars of cash” across its group companies and joint venture firms and has “tracked to runway very closely.”

“At the same time, we’ve been very disciplined in making sure that we can respond to the crisis in a good way to try and ensure that we can come out of it at the right time,” he said in a fireside chat with Rohit Kapoor, chief executive of Oyo India and SA, and Troy Alstead, a board member who previously served as the chief executive officer of Startbucks.

The revelation will reassure employees of Oyo, which eliminated or furloughed over 5,000 jobs earlier this year and reported in April that the pandemic had cut its revenue and demand by more than 50%.

Oyo also reported a loss of $335 million on $951 million revenue globally for the financial year ending March 31, 2019, and earlier this year pledged to cut down on its spending.

Agarwal said the startup is recovering from the pandemic as nations relax their lockdowns, and with recent progress with vaccine trials, he is hopeful that the travel and hospitality industries will bounce back strongly.

“Together globally, we were able to get to around 85% of the gross margin dollars of our pre COVID levels. This I can tell you was extremely hard. But in my view was probably only possible because of the efforts of our teams in each one of the geographies,” he said, adding that Oyo Vacation has proven critical to the business in recent months delivering “packed” hotels and holiday homes.

During the conversation, a transcript of which was shared with employees and obtained by TechCrunch, Agarwal was heard talking about making Oyo — which was privately valued at $10 billion last year when it was in the process of raising $1.5 billion last year — ready for IPO. He, however, did not share a timeline on when the SoftBank-backed startup plans to go public and hinted that it’s perhaps not in the immediate future.

“And last but not the least, for me, it is very critical. I want the groups to know that I, our board and our broader management are fully committed to making sure that long-term wealth creation for our OYOpreneurs — beyond that of just the compensation, but the wealth creation by means of your stocks can be substantially grown.”

“At the end of the day, what is the right time to go out is frankly a decision of the board to make and from the management side, we’ll be ready to make sure that we build a company that is ready to go public. And we will look at various things like that of the market situation, opportunities outside and so on, that the board will consider and then potentially help advise on the timeline,” he said.

Alstead echoed Agarwal’s optimism, adding, “I think that OYO is made up of a combination of assets, its hotels, its homes, its vacation homes. That’s unique, I think in the industry in the category, I think it makes it probably a little more challenging sometimes for people externally to measure and compare and benchmark a unique portfolio company like this. But I’d also tell you, I think that makes OYO resilient. It makes OYO balanced for the future. It gives OYO several sorts of vertical opportunities to address both customer needs at any time, whether it be a hotel or a small hotel or a vacation home.”

“And it also gives opportunities and expands that interaction in a good healthy way with the property owners, with the partners, who have an opportunity depending on what asset type they have partnered with OYO in different ways, and also to have the access to a technology platform and a continued investment in that innovative platform for customers. So all those things, I think a balanced portfolio, a technology platform, a heavy focus on putting the customer first, putting the business partner first — all those things, in my view, are what positioned OYO for the future.”

There are 12 million small and medium businesses in the US, yet they have continued to be one of most underserved segments of the B2B universe: that volume underscores a lot of fragmentation, and alongside other issues like budget constraints, there are a number of barriers to building for them at scale. Today, however, a startup helping SMBs get online is announcing some significant funding — a sign of how things are changing at a moment when many businesses have realised that being online is no longer an option, but a necessity.

GoSite, a San Diego-based startup that helps small and medium enterprises build websites, and, with a minimum amount of technical know-how, run other functions of their businesses online — like payments, online marketing, appointment booking and accounting — has picked up $40 million in funding.

GoSite offers a one-stop shop for users to build and manage everything online, with the ability to feed in up to 80 different third-party services within that. “We want to help our customers be found everywhere,” said Alex Goode, the founder and CEO of GoSite. “We integrate with Facebook and other consumer platforms like Siri, Apple Maps, and search engines like Google, Yahoo and Bing and more.” It also builds certain features like payments from the ground up.

The Series B comes on the back of a strong year for the company. Driven by Covid-19 circumstances, businesses have increasingly turned to the internet to interact with customers, and GoSite — which has “thousands” of SMB customers — said it doubled its customer base in 2020.

This latest round is being led by Left Lane Capital out of New York, with Longley Capital, Cove Fund, Stage 2, Ankona Capital and Serra Ventures also participating. GoSite is clearly striking while the iron is hot: Longley, also based out of San Diego, led the company’s previous round, which was only in August of this year. It has now raised $60 million to date.

GoSite is, in a sense, a play for more inclusivity in tech: its customers are not companies that it’s “winning” off other providers that provide website building and hosting and other services typically used by SMBs, such as Squarespace and Wix, or GoDaddy, or Shopify.

Rather, they are companies that may have never used any of these: local garages, local landscapers, local hair salons, local accountancy firms, local dentists and so on. Barring the accounting firm, these are not businesses that will ever go fully online, as a retailer might, not least because of the physical aspect of each of those professions. But they will need an online presence and the levers it gives them to communicate, in order to survive, especially in times when their old models are being put under strain.

Goode started GoSite after graduating from college in Michigan with a degree in computer science, having previously grown up around and working in small businesses — his parents, grandparents and others in his Michigan town all ran their own stores. (He moved to San Diego “for the weather” he joked.)

His belief is that while there are and always will be alternatives like Facebook or Yelp to plant a flag, there is nothing that can replace the value and longer term security and control of building something of your own — a sentiment small business owners would surely grasp.

That is perhaps the most interesting aspect of GoSite as it exists today: it precisely doesn’t see any of what already exists out there as “the competition.” Instead, Goode sees his purpose as building a dashboard that will help business owners manage all that — with up to 80 different services currently available — and more, from a single place, and with minimum need for technical skills and time spent learning the ropes.

“There is definitely huge demand from small businesses for help and something like GoSite can do that,” Goode said. “The space is very fragmented and noisy and they don’t even know where to start.”

This, combined with GoSite’s growth and relevance to the current market, is partly what attracted investors.

“The opportunity we are betting on here is the all-in-one solution,” said Vinny Pujji, partner at Left Lane. “If you are a carpet cleaner or house painter, you don’t have the capacity to understand or work with five or six different pieces of software. We spoke with thousands of SMBs when looking at this, and this was the answer we heard.” He said the other important thing is that GoSite has a customer service team and for SMBs that use it, they like that when they call, “GoSite picks up the phone.”

Latvian fintech startup Nordigen is switching to a freemium model thanks to a free open banking API. Open banking was supposed to democratize access to banking information, but the company believes banking aggregation APIs from Tink or Plaid are too expensive. Instead, Nordigen thinks it can provide a free API to access account information and paid services for analytics and insights services.

Open banking is a broad term and means different things, from account aggregation to verifying account ownership and payment initiation. The most basic layer of open banking is the ability to view data from third-party financial institutions. For instance, some banks let you connect to other bank accounts so that you can view all your bank accounts from a single interface.

There are two ways to connect to a bank. Some banks provide an application programming interface (API), which means that you can send requests to the bank’s servers and receive data in return.

While all financial institutions should have an open API due to the European PSD2 directive, many banks are still dragging their feet. That’s why open banking API companies usually rely on screen scraping. They mimic web browser interactions, which means that it’s slow, it requires a ton of server resources and it can break.

“If you’re wondering how we’d be able to afford it, our free banking data API was designed purely with PSD2 in mind, meaning it’s lightweight in strong contrast to that of incumbents. So it wouldn’t significantly increase our costs to scale free users,” Nordigen co-founder and CEO Rolands Mesters told me.

So you don’t get total coverage with Nordigen’s API. The startup currently supports 300 European banks, which covers 60 to 90% of the population in each country. But it’s hard to complain when it’s a free product anyway.

Some Nordigen customers will probably want more information. Nordigen provides financial data analytics. It can be particularly useful if you’re a lending company trying to calculate a credit score, if you’re a financial company with minimum income requirements and more.

For those additional services, you’ll have to pay. Nordigen currently has 50 clients and expects to attract more customers with its new freemium strategy.

vivenu, a ticketing platform that offers an API for venues and promoters to customize to their needs, has closed a $15 million (€12.6 million) in Series A funding led by Balderton Capital. Previous investor Redalpine also participated.

Historically-speaking, most ticketing platform startups took a direct to consumer approach, or have provided turnkey solutions to big event promoters. But in this day and age, most events require a great deal more flexibility, not least because of the pandemic. So, by offering an API and allowing promoters that flexibility, Vivenu managed to gain traction.

Venues and event owners get a full-featured ticketing, out-of-the-box platform with full real-time dynamic control over all aspects of selling tickets including configuring prices and seating plans, leveraging customer data and insights and mastering a branded look and feel across their sales channels. It has exposed APIs enabling many different custom use cases for large international ticket sellers. Since its Seed funding in March, the company says it has sold over 2 million tickets.

Simon Hennes, CEO and co-founder of vivenu said in a statement: “We created vivenu to address the need of ticket sellers for a user-centric ticketing platform. Event organizers were stuck with solutions that heavily depend on manual processes, causing high costs, dependencies, and frustration on various levels.”

Daniel Waterhouse, Partner at Balderton said: “Vivenu has built a sophisticated product and set of APIs that gives event organisers full control of their ticketing operations.”

vivenu is also the first European investment of Aurum Fund LLC, the fund associated with the San Francisco 49ers. Also investing in the round are Angels including Sascha Konietzke (Founder at Contentful), Chris Schagen (former CMO at Contentful), Sujay Tyle (Founder at Frontier Car Group) and Tiny VC.

In March 2020, vivenu secured €1.4 million in seed funding, bringing its total funding to €14 million. Previous investors include early-stage venture capital investor Redalpine, GE32 Capital and Hansel LLC (associated with the founders of Loft).

Speaking to TechCrunch Hennes said: “You have to send your seat map to Ticketmaster, and then the account manager comes back to you with a sitemap. This goes back and forth and takes ages. With us you have a seating chart designer basically integrated into the software which you can simply change yourself.”

DevOps continues to get a lot of attention as a wave of companies develop more sophisticated tools to help developers manage increasingly complex architectures and workloads. In the latest development, Databand — an AI-based observability platform for data pipelines, specifically to detect when something is going wrong with a datasource when an engineer is using a disparate set of data management tools — has closed a round of $14.5 million.

Josh Benamram, the CEO who co-founded the company with Victor Shafran and Evgeny Shulman, said that Databand plans include more hiring; to continue adding customers for its existing product; to expand the library of tools that its providing to users to cover an ever-increasing landscape of DevOps software, where it is a big supporter of open source resources; as well as to invest in the next steps of its own commercial product. That will include more remediation once problems are identified: that is, in addition to identifying issues, engineers will be able to start automatically fixing them, too.

The Series A is being led by Accel with participation from Blumberg Capital, Lerer Hippeau, Ubiquity Ventures, Differential Ventures, and Bessemer Venture Partners. Blumberg led the company’s seed round in 2018. It has now raised around $18.5 million and is not disclosing valuation.

The problem that Databand is solving is one that is getting more urgent and problematic by the day (as evidenced by this exponential yearly rise in zettabytes of data globally). And as data workloads continue to grow in size and use, they continue to become ever more complex.

On top of that, today there are a wide range of applications and platforms that a typical organization will use to manage source material, storage, usage and so on. That means when there are glitches in any one data source, it can be a challenge to identify where and what the issue can be. Doing so manually can be time-consuming, if not impossible.

“Our users were in a constant battle with ETL (extract transform load) logic,” said Benamram, who spoke to me from New York (the company is based both there and in Tel Aviv, and also has developers and operations in Kiev). “Users didn’t know how to organize their tools and systems to produce reliable data products.”

It is really hard to focus attention on failures, he said, when engineers are balancing analytics dashboards, how machine models are performing, and other demands on their time; and that’s before considering when and if a data supplier might have changed an API at some point, which might also throw the data source completely off.

And if you’ve ever been on the receiving end of that data, you know how frustrating (and perhaps more seriously, disastrous) bad data can be. Benamram said that it’s not uncommon for engineers to completely miss anomalies and for them to only have been brought to their attention by “CEO’s looking at their dashboards and suddenly thinking something is off.” Not a great scenario.

Databand’s approach is to use big data to better handle big data: it crunches various pieces of information, including pipeline metadata like logs, runtime info, and data profiles, along with information from Airflow, Spark, Snowflake, and other sources, and puts the resulting data into a single platform, to give engineers a single view of what’s happening better see where bottlenecks or anomalies are appearing, and why.

There are a number of other companies building data observability tools — Splunk perhaps is one of the most obvious, but also smaller players like Thundra and Rivery. These companies might step further into the area that Databand has identified and is fixing, but for now Databand’s focus specifically on identifying and helping engineers fix anomalies has given it a strong profile and position.

Accel partner Seth Pierrepont said that Databand came to the VC’s attention in perhaps the best way it could: Accel needed a solution like it for its own internal work.

“Data pipeline observability is a challenge that our internal data team at Accel was struggling with. Even at our relatively small scale, we were having issues with the reliability of our data outputs on a weekly basis, and our team found Databand as a solution,” he said. “As companies in all industries seek to become more data driven, Databand delivers an essential product that ensures the reliable delivery of high quality data for businesses. Josh, Victor and Evgeny have a wealth of experience in this area, and we’ve been impressed with their thoughtful and open approach to helping data engineers better manage their data pipelines with Databand.”

The company is also used by data teams from both large Fortune 500 enterprises to smaller startups.

DevOps continues to get a lot of attention as a wave of companies develop more sophisticated tools to help developers manage increasingly complex architectures and workloads. In the latest development, Databand — an AI-based observability platform for data pipelines, specifically to detect when something is going wrong with a datasource when an engineer is using a disparate set of data management tools — has closed a round of $14.5 million.

Josh Benamram, the CEO who co-founded the company with Victor Shafran and Evgeny Shulman, said that Databand plans include more hiring; to continue adding customers for its existing product; to expand the library of tools that its providing to users to cover an ever-increasing landscape of DevOps software, where it is a big supporter of open source resources; as well as to invest in the next steps of its own commercial product. That will include more remediation once problems are identified: that is, in addition to identifying issues, engineers will be able to start automatically fixing them, too.

The Series A is being led by Accel with participation from Blumberg Capital, Lerer Hippeau, Ubiquity Ventures, Differential Ventures, and Bessemer Venture Partners. Blumberg led the company’s seed round in 2018. It has now raised around $18.5 million and is not disclosing valuation.

The problem that Databand is solving is one that is getting more urgent and problematic by the day (as evidenced by this exponential yearly rise in zettabytes of data globally). And as data workloads continue to grow in size and use, they continue to become ever more complex.

On top of that, today there are a wide range of applications and platforms that a typical organization will use to manage source material, storage, usage and so on. That means when there are glitches in any one data source, it can be a challenge to identify where and what the issue can be. Doing so manually can be time-consuming, if not impossible.

“Our users were in a constant battle with ETL (extract transform load) logic,” said Benamram, who spoke to me from New York (the company is based both there and in Tel Aviv, and also has developers and operations in Kiev). “Users didn’t know how to organize their tools and systems to produce reliable data products.”

It is really hard to focus attention on failures, he said, when engineers are balancing analytics dashboards, how machine models are performing, and other demands on their time; and that’s before considering when and if a data supplier might have changed an API at some point, which might also throw the data source completely off.

And if you’ve ever been on the receiving end of that data, you know how frustrating (and perhaps more seriously, disastrous) bad data can be. Benamram said that it’s not uncommon for engineers to completely miss anomalies and for them to only have been brought to their attention by “CEO’s looking at their dashboards and suddenly thinking something is off.” Not a great scenario.

Databand’s approach is to use big data to better handle big data: it crunches various pieces of information, including pipeline metadata like logs, runtime info, and data profiles, along with information from Airflow, Spark, Snowflake, and other sources, and puts the resulting data into a single platform, to give engineers a single view of what’s happening better see where bottlenecks or anomalies are appearing, and why.

There are a number of other companies building data observability tools — Splunk perhaps is one of the most obvious, but also smaller players like Thundra and Rivery. These companies might step further into the area that Databand has identified and is fixing, but for now Databand’s focus specifically on identifying and helping engineers fix anomalies has given it a strong profile and position.

Accel partner Seth Pierrepont said that Databand came to the VC’s attention in perhaps the best way it could: Accel needed a solution like it for its own internal work.

“Data pipeline observability is a challenge that our internal data team at Accel was struggling with. Even at our relatively small scale, we were having issues with the reliability of our data outputs on a weekly basis, and our team found Databand as a solution,” he said. “As companies in all industries seek to become more data driven, Databand delivers an essential product that ensures the reliable delivery of high quality data for businesses. Josh, Victor and Evgeny have a wealth of experience in this area, and we’ve been impressed with their thoughtful and open approach to helping data engineers better manage their data pipelines with Databand.”

The company is also used by data teams from both large Fortune 500 enterprises to smaller startups.