Category: UNCATEGORIZED

14 Oct 2020

Engageli comes out of stealth with $14.5M and a new approach to teaching by video remotely

Zoom, Microsoft Teams and Google Meet have become standard tools for teachers who have had to run lessons remotely since the start of the Covid-19 pandemic. But they’re not apps necessarily designed for classrooms, and that fact has opened a gap in the market for those looking to build something more fit to the purpose.

Today, a startup called Engageli is coming out of stealth with an app that it believes fills that need. A video conferencing tool designed from the ground up as a digital learning platform, with its own unique take on virtual classrooms, Engageli is aiming first at higher education, and it is launching with $14.5 million in seed funding from Benchmark and others.

If that sounds like a large seed round for a startup that is still only in pilot mode (you can contact the company by email to apply to join the pilot), it might be due in part to who is behind Engageli.

The startup is co-founded by Dan Avida, Serge Plotkin, Daphne Koller and Jamie Nacht Farrell. Avida is a general partner at Opus Capital who in the past co-founded (and sold, to NetApp) an enterprise startup called Decru with Plotkin, who himself is a Stanford emeritus professor. Koller is one of the co-founders of Coursera and also an adjunct professor at Stanford. And Farrell is a former executive from another pair of major online learning companies, Trilogy and 2U.

Avida and Koller, as it happens, are also married, and it was observing their kids in the last school year — when they were both in high school (the oldest is now in her first year at UC Berkeley) — that spurred them to start Engageli.

“The idea for this started in March when our two daughters found themselves in ‘Zoom School.’ One of them watched a lot of Netflix, and the other, well, she really improved her high scores in a lot of games,” he said wryly.

The problem, as he and Koller saw it, was that the format didn’t do a good enough job of connecting with individual students, checking in with them to make sure they were paying attention, understanding, and actually interested in what was being taught.

“The reason teachers and schools are using conferencing systems is because that was what was out there,” he said. But, based on the team’s collective experiences across past e-learning efforts at places like Coursera — which built infrastructure to run university courses for mass audiences online — and Trilogy and 2U (which are now one company that covers both online learning for universities and boot camps), “we thought we could build a better system from the ground up.”

Even though the idea was inspired by what the pair saw playing out with their high school-attending children, Engageli made the decision to focus first on higher education because that was where it was getting the most interest from would-be customers to pilot the service. But also, Avida believes that because higher ed not already has a big market for remote learning, it represents a more significant opportunity.

“K-12 schools will eventually go back to normal,” he said, “but we’re of the opinion that higher education will be a blend with more and more online learning,” one of the reasons also for the founding of the likes of Coursera, Trilogy and 2U. “Younger kids need face-to-face contact, but in college, many students are now juggling work, family and studying, and online can be much more convenient.”

Also there is a very practical selling point to providing better tools to university classrooms: “People pay those tuitions to have access to professors and other students, and this is a way to provide that in a remote world,” he said.

[gallery ids="2060568,2060569,2060570"]

As it appears now, Engageli lets teachers build and run both synchronous (live) and asynchronous (recorded) lessons, giving students and teachers the option to catch up or replace a live lesson if necessary.

The startup’s idea is also to make it as easy to integrate into existing workflows as possible: no need to install special desktop or mobile apps, as the platform works in all major browsers, and Avida notes that it’s also designed to integrate with the software systems that many universities are already using to organise their educational content and track students’ progress. (Making the barrier to entry low is not a bad idea also considering that many institutions are already using other products, making them more entrenched and increasing the challenges of getting them to migrate to something else.)

But perhaps Engageli’s most unique feature is how it views the virtual classroom.

The platform lets teachers create “tables” where students sit together in smaller groups, where they can work together. With tables, the idea is that either an instructor — or in the case of large classes as you might get with university seminars, teaching assistants assigned to tables — can engage with students in a more personalised way.

When a class is delivered asynchronously (that is, recorded), it means that students sitting at a table can still partly be involved in a “live” experience where they can talk about the work with others in their groups. The tables are also opened up before a class starts, and students can go from one to the other to chat with others before the class begins.

On top of the tools that Engageli has built to record and consume lessons, it’s also building a set of analytics that lets professors (or their assistants) monitor how well audio and video and working both for themselves as we as for their audience, and also collect other kinds of “engagement” information, which could come in the form of getting people to ask or answer questions or take polls and other interactive media.

Together, these features create better feedback to make sure that everyone is getting as much out of the remote experience as possible.

Education has not always been one of the buzziest areas in the world of startups — it’s been something of a boring cousin to more headline-grabbing segments like social media, or those taking on giants like Amazon and Google.

But the pandemic has thrown a spotlight on the opportunities in the field, both to fill a sudden surge of demand for remote learning tools, and to create more innovative approaches to doing so, as Engageli is doing here.

Just yesterday, Kahoot — a platform for building and using gamified learning apps — raised $215 million from SoftBank; and other recent rounds have included Outschool (which raised $45 million and is now profitable), Homer (raised $50 million from an impressive group of strategic backers), Unacademy (raised $150 million) and the Indian juggernaut Byju’s (most recently picking up $500 million from Silver Lake).

On top of the recent spotlight on education, it’s also been interesting to see the proliferation of startups that are also coming out of the woodwork to provide new takes on videoconferencing.

Last week, a startup called Headroom — also started by already-successful entrepreneurs — launched with an AI-driven alternative to Zoom and the rest providing not just automatic transcriptions of conversations, but automatically generated highlights and insights into how engaging your webinars and other video content really was.

Apps like Headroom and Engageli are just the tip of the iceberg, with other innovative approaches also stepping out and raising significant funding. The big question will be whether they will get much attention and time from would-be customers who are already “happy enough” with what they already use.

But in a tech world that thrives on the concept of disruption and companies creating businesses out of simply being better approaches to entrenched markets, it’s a bet worth making.

“Dan, Serge and Daphne have repeatedly built fast-growing, extremely successful companies. I am so fortunate to be working with them again,” said Alex Balkanski, a partner at Benchmark, in a statement. “Investing in a company linked to education is incredibly important to me on a personal level, and Engageli has the potential to enable a truly transformative learning experience.”

14 Oct 2020

Menlo Micro, a startup bringing semiconductor tech to the humble switch, is ready for its closeup

Sixteen years ago a group of material scientists and engineers at General Electric banded together to reinvent the circuit breaker. Now, Menlo Microsystems, the spinoff commercializing that technology, is ready to bring its revolutionary new switches to market, with huge implications for everything from 5G technologies to quantum computing.

Based in Irvine, Calif., Menlo Micro takes its name from the Menlo Park, NJ research lab where Thomas Edison patented the first light switch back in 1893 and the company’s ties to GE run deep.

Researchers at GE spent more than a decade working internally on Menlo Micro’s core technology, a novel process that applies semiconductor manufacturing techniques to the production of micro electro-mechanical systems, before spinning it out into a new business five years ago.

Using a novel alloy, Menlo Micro is able to reduce the size of the switches it makes to 50 microns by 50 microns, or roughly the width of a human hair. This miniaturization can enable hardware manufacturers to come up with completely new designs for a host of products that used to require much larger components.

“The micro electro-mechanical system that we use to make this… that’s not new,” said Russ Garcia, the company’s chief executive. “The problem was — the first level innovation is how do you take a mechanical switch like the light switch or a relay and scale that down to a wafer.”

Many companies have tried to make MEMs contact switches, spending hundreds of millions of dollars, but Garcia said that the reliability and durability of the switches was always an issue. The material science behind Menlo’s switches solves the problem, he said.

Menlo’s switches pack lots and lots of MEMS relays onto a single chip that can function like a massive mechanical relay, reducing something that was the size of a fist to something the size of a microchip.

The company’s founders think the potential uses are pretty limitless, thanks to the massive size reduction and increased durability that its switches offer.

Close up of a Menlo Micro switch. Image Credit: Menlo Micro

Initial markets for commercialization

“One way to look at this is in edge and IOT applications,” said company co-founder Chris Giovanniello, a former vice president of business development at GE Ventures and Menlo Micro’s current senior vice president of worldwide marketing.  “What we tend to think about and what most of the industry thinks about is low energy bluetooth and wifi and low power processing for decision making. Once you’ve sensed it, communicated it, and made a decision, you have to do something about it.”

Initially Menlo Micro spun out from GE with Giovanniello and co-founders including chief technology officer, Chris Keimel, and Jeff Baloun, the senior vice president of operations. Garcia, who saw the company’s initial pitch at a semiconductor conference where GE was touting the technology, was brought on board by one of Menlo Micro’s early investors Paladin Capital Group. 

Paul Conley of Paladin Capital sent me this deck and said ‘Wow there might be something there.’ We met Chris and then met up with the other Chris they wanted me to help out with strategy,” Garcia said. He wound up coming on board as a founding executive. 

Current solid state technologies tasked with making something happen based on the data currently use more power than the rest of the systems that they’re tied to. Menlo Micro’s chips would substantially reduce energy loss and improve the efficiency of entire systems, he said. 

“If you think of the light switch in your house, it’s two metal contacts that come together. If that contact is really good and clean the electricity flows through very efficiently and when you turn it off… no electricity can flow through and [nothing] happens at all,” said Garcia, a longtime executive in the MEMS industry. “In a semiconductor, there’s loss in that contact. When you run a transistor on it allows the energy to flow through but loses some of that energy in heat and when you turn it off it allows some of that energy to flow through. When you take the billions of switches… all of that incremental energy is completely lost.”

The benefits of the technology mean demand from the defense industry, which wants to put the new switches in radar, radio, and satellite networks. Commercial applications include wi-fi connectivity, 5G cell networks, for radio frequency and microwave switching. Consumers could see the switches in cell phones meaning fewer dropped calls, higher speeds and capacity for data, and longer battery life.

Menlo has already sent samples from its production line to 30 lead customers in aerospace and defense, telecommunications and testa and measurement. And the company has raised $44 million in new funding from investors including Nest founder Tony Fadell’s Future Shape Group to boost its production capacity to meet potential demand.

“The concept of an ‘ideal switch’ was theoretical – something companies have been working to  achieve for decades – until Menlo Micro,” said Marianne Wu, the former head of GE Ventures and current Managing Director of 40 North Ventures, which led Menlo Micro’s latest round. “We are incredibly excited to work with such a dynamic, experienced team on a core  technology that is disrupting nearly every industry.” 

Series of Menlo Micro switches on a circuit board. Image Credit: Menlo Micro

Thinking beyond 5G, defense and industrial IOT

Over the last 30 months, Menlo Micro said it has completed the transfer and qualification of its manufacturing process, moving from a 4-inch research fab to a new 8-inch high volume manufacturing line.

That means the company is able to increase production for its initial products and boost its capacity. With the qualification in hand, the company expects to bring production up to over 100,000 units per month by the end of 2020 and reach production capacity for millions of switches per month in 2021.

So beyond telecommunications and defense, there are target markets in energy storage, automotive, aerospace because of the miniaturization — while quantum computing companies are interested in the technology because of its durability.

“The relay is a large mechanical devices that you can hold in yourhand and used in many applications for turning on and off the power that goes to an industrial piece of equipment to your car to motors that need to be driven,” said Giovanniello. “They’re very hard to integrate because they’re so big. We can take the electrical characteristics of having a true metal to metal on low loss connection and then, when it’s open there’s an air gap that no current can flow through.. We can integrate [the switches] into completely different architectures.” 

Ultimately, Giovanniello said the go-to-market strategy is to focus on the “rule of 99”.

“We’re able to reduce the size, the weight, and the power fo the box that [the switch] is going into by up to 99%. That’s a huge improvement in infrastructure and cost,” he said.

For companies developing quantum computers, the value proposition is not just about the size of the MEMS, but the durability of the alloy that Menlo Micro has developed. “For quantum, you have to have devices that operate at close to absolute zero… Semiconductors don’t work down to those temperatures so they use old-fashioned mechanical relays [which] can take hours to get back to temperature,” Giovanniello said. “Our materials are so robust they work [at temperatures] down to a few milikelvins.”

It’s this flexibility and the potential redesign of old industrial technologies that haven’t been updated for nearly a century that has enabled the company to bring in $78 million in funding from investors including Piva, Paladin Capital Group, Vertical Venture Partners, Future Shape and strategic investors like Corning and Microsemi.

“For 40+ years, the industry has been searching for a switch that has the perfect combination of  the electromechanical relay and the silicon transistor,” said Tony Fadell, in a statement. “[This technology] is a tiny,  efficient, reliable micro-mechanical switch with unmatched RF-performance and, counterintuitively, high-power handling of 1,000s of Watts. As our world moves to the  electrification and wireless of everything, Menlo Micro’s deep innovation is already triggering  massive cross-industry upheaval.”

14 Oct 2020

Huawei plans to divest budget phone unit Honor: reports

Besieged by U.S. tech sanctions, Huawei may be looking to shake up its smartphone business that has taken a hit after losing core semiconductor parts and software services.

The Chinese giant is in talks with Digital China Group to sell parts of Honor, its low-end, budget phone unit for 15-25 billion yuan ($2.2-3.7 billion), Reuters reported on Wednesday. 

A Hong Kong-listed firm, Digital China is a spinoff from the Legend Group (later Lenovo) and a major distributor and close ally of Huawei.

Smartphone sales and other consumer-facing electronics today make up the bulk of revenue for Huawei, which began by selling telecommunications gear in the late 1980s.

The news came days after a Chinese tech news blogger claimed Huawei is planning to sell Honor. Respected Apple analyst Ming-Chi Kuo also noted in a report that it’s in Huawei’s benefit to divest Honor so the business could be free of trade restrictions and Huawei gets to focus on high-end phones under its namesake brand.

Sources close to Huawei denied the planned sale of Honor, Tencent News reported last week. A Huawei representative contacted by TechCrunch declined to comment.

Huawei rolled out independent brand Honor in 2011 as Xiaomi’s low-budget phones were taking China by storm. Like Xiaomi, Honor started out by focusing on online sales and young consumers. BBK Group’s Oppo, Vivo and Realme have since made significant inroads into the budget phone market.

Honor’s brand, research and development capabilities and related supply chain management business could be for sale, sources told Reuters. The tech news blogger said Honor will operate and procure independently after the sale.

Other bidders include Xiaomi and TCL, according to Reuters, as well as Gree and BYD, according to the tech news blogger.

More to come…

14 Oct 2020

As investors and founders mature, Vienna emerges as a European startup hub

According to Austrian Startup Monitor, entrepreneurs have founded more than 2,200 startups in Austria since 2008, with the number of tech companies growing 12% per year since then, significantly faster than the 3% growth rate for traditional companies.

Home to roughly 50% of Austria’s startups, Vienna has a plethora of VC, corporate and university investors. Top VCs include 3TS Capital Partners, AC & Friends, Cudos Capital, FSP Ventures, Hansmen Group, i4g Investment, i5invest, LilO Ventures, next.march, primeCROWD, Speedinvest and Venionaire Capital, among others.

The local ecosystem benefits from several initiatives, including the Social Impact Awards, Vienna Startup Awards, Design Week, Climate KIC Stage, Innovation Incubation Center and INiTS Accelerator. The well-run Pioneers Festival contributed massively to the ecosystem for several years after a certain TechCrunch editor-at-large gave the organizers an excuse to expand on a simple TechCrunch meetup. But the festival was shuttered last year after its sale to a local accelerator meant that the event itself ran out of steam. Perhaps it was just as well, given this year’s pandemic.

State support for startups is also there. The Austrian government created a comprehensive startup program in 2016 to make the country more attractive to startups setting up there.

Standout exits include fitness app maker Runtastic, acquired by Adidas for $240 million in 2015, as well as listings marketplace Shpock, which was acquired by Norwegian publishing conglomerate Schibsted in 2015. Other notable startups originally from Vienna include mySugr, wikifolio, kompany and Codeship.

There have been jitters on the way, however. The Austrian Private Equity and Venture Capital Organization’s 2019 report found that Austria’s startups saw €237.6 million invested in 2018, but, this number fell 8.2% to €218 million in 2019; the number of deals exceeding €500,000 also dipped by 8.7%. Foreign funding also slowed in 2019 after a few years of a bull run — between 40% and 63% of deals sized €0.25-€1.99 million were significantly funded by foreign investors in 2018.

Despite the decline, local investors have started to pick up the slack, boosting the number of funding rounds over €5 million to 12 deals in 2019 from 11 in 2018. In both years, all but one of those deals drew a substantial part of the funding round from foreign investors.

We expect more to emerge from Vienna’s tech scene in the future. The Pioneers Festival (RIP) proved that Vienna is a fascinating bridge between Western European capital and entrepreneurial culture, and East European entrepreneurs and talent, which it will no doubt continue to benefit from in years to come. But — just as will happen with Lisbon this year and the loss of Web Summit — the loss of a major conference in Vienna to shine a light on the city and ecosystem, combined with the pandemic, may have cooling effects for the next couple of years.


Notable Vienna startups:

  • Newsadoo: Uses artificial intelligence to personalize news.
  • Cashpresso: Links customers, merchants and banks to offer consumer financing options.
  • Jobrocker: An online job search portal that connects applicants’ CVs with job openings.
  • Storyblok: A headless content management system.
  • Byrd: First-mile shipping service that allows customers to ship items hassle-free.
  • Music Traveler: A marketplace that centralizes spaces with musical instruments and equipment.
  • PAYUCA: Provides flexible access to parking spaces in private office and residential buildings.
  • Refurbed: Fast-growing marketplace for refurbished electronics, across the German-speaking world.
  • Presono: A web platform for creating, managing and showing presentations in companies.
  • Blockpit: Develops software for portfolio tracking, tax calculation and compliance reporting of transactions for cryptocurrencies and crypto assets.
  • Robo Wunderkind: A robot for kids to build and program.
  • Medicus: Converts health data with their cryptic numbers and medical language into an easy-to-understand visual experience.
  • Cybershoes: VR accessory that allows you to walk through your favorite VR games.

Here’s who we interviewed:

Eva Arh, principal, Capital 300

What trends are you most excited about investing in, generally?
B2B software, robotics, no/low-code automation, AI-enabled vertical solutions, e-health, companies enabling others to hire and engage talent remotely.

What’s your latest, most exciting investment?
Lokalise.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Companies that enable others to manage and automate billing even further (e.g., per API call), next-gen video conferencing, solutions guiding women through menopause, providing solutions that help companies to offer mental health services to distributed teams, bringing cloud kitchens to the next level (not running central kitchens).

What are you looking for in your next investment, in general?
As always, ambitious, smart, hard-working teams eager to build a category leader in a huge market.

What other types of products/services are you wary or concerned about?
Concerned about solutions that leverage behavioral data to influence people for the sake of optimizing profit, overload of sales and marketing tech, overload of chatbot providers. [It is] hard to compete with players that have benefited from huge network effects such as food delivery.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
We focus on German-speaking areas and Central Eastern Europe. Opportunistically we would also invest outside of the region, still in Europe.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Austria — no specific industry focus within software. However, well-positioned in the biotech space, CEE — given the strong presence of IT outsourcing companies, the region is well-positioned to build solutions in the business-process automation, dev tool space. Storyblok (our portfolio). Others to watch: Anyline, Adverity, Bitpanda, PlanRadar, Refurbed.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Regarding Vienna — we are seeing the first generation of entrepreneurs building global companies. Their and their team experience will be at utmost value creating a new wave of tech companies that compete on a global level.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Yes, we already see this — exciting companies coming out of small cities in Poland, Germany, etc. and companies going remote.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
Telemedicine, online education has been accelerated. We see a shift that otherwise would have taken years, especially in the relatively conservative German-speaking area. As mentioned previously, mental health solutions, hiring and employing remotely are some of the opportunities highlighted by COVID-19. Companies that are heavily exposed are those that have been serving the long tail of companies, small merchants, and local businesses that were closed down or experienced much less traffic in past months and hence are extremely sensitive around their cost base, discontinuing services that are not 110% essential.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
We have always been very selective and focused, partnering up three to four times a year. We continue at the same pace. The companies that perform well despite COVID-19 are still in a strong position for attracting external capital. Of course, we help our portfolio to secure a runway and have a discussion how/whether the situation has impacted their offering/GTM. Some companies have to rethink their value proposition, some rethink their target groups either to make up for slower sales cycles or on the other hand to leverage and benefit from the current situation.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Yes, we see that Lokalise is growing heavily with the current customer base as their customers expand to new markets, likely to make up for slower revenue growth in their existing markets. We see that Nethone (fraud prevention) is able to double down on e-commerce. Online fraud and online transactions are skyrocketing as people spend much more time online. (On the other hand, their airline customers of course show a different trajectory.)

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
It is inspiring to see how founders go through the current situation, act instead of reacting, especially in those countries where there is less government support incentives in place. Personally, I am also happy to see that people use the work from home time to rethink and introduce healthier habits.

Any other thoughts you want to share with TechCrunch readers?
As the world has gone online and the location matters much less, there is an opportunity to distribute the created value and wealth more evenly — be it a company founded in a “non-tech-hub” location or be it talent hired remotely.

14 Oct 2020

As investors and founders mature, Vienna emerges as a European startup hub

According to Austrian Startup Monitor, entrepreneurs have founded more than 2,200 startups in Austria since 2008, with the number of tech companies growing 12% per year since then, significantly faster than the 3% growth rate for traditional companies.

Home to roughly 50% of Austria’s startups, Vienna has a plethora of VC, corporate and university investors. Top VCs include 3TS Capital Partners, AC & Friends, Cudos Capital, FSP Ventures, Hansmen Group, i4g Investment, i5invest, LilO Ventures, next.march, primeCROWD, Speedinvest and Venionaire Capital, among others.

The local ecosystem benefits from several initiatives, including the Social Impact Awards, Vienna Startup Awards, Design Week, Climate KIC Stage, Innovation Incubation Center and INiTS Accelerator. The well-run Pioneers Festival contributed massively to the ecosystem for several years after a certain TechCrunch editor-at-large gave the organizers an excuse to expand on a simple TechCrunch meetup. But the festival was shuttered last year after its sale to a local accelerator meant that the event itself ran out of steam. Perhaps it was just as well, given this year’s pandemic.

State support for startups is also there. The Austrian government created a comprehensive startup program in 2016 to make the country more attractive to startups setting up there.

Standout exits include fitness app maker Runtastic, acquired by Adidas for $240 million in 2015, as well as listings marketplace Shpock, which was acquired by Norwegian publishing conglomerate Schibsted in 2015. Other notable startups originally from Vienna include mySugr, wikifolio, kompany and Codeship.

There have been jitters on the way, however. The Austrian Private Equity and Venture Capital Organization’s 2019 report found that Austria’s startups saw €237.6 million invested in 2018, but, this number fell 8.2% to €218 million in 2019; the number of deals exceeding €500,000 also dipped by 8.7%. Foreign funding also slowed in 2019 after a few years of a bull run — between 40% and 63% of deals sized €0.25-€1.99 million were significantly funded by foreign investors in 2018.

Despite the decline, local investors have started to pick up the slack, boosting the number of funding rounds over €5 million to 12 deals in 2019 from 11 in 2018. In both years, all but one of those deals drew a substantial part of the funding round from foreign investors.

We expect more to emerge from Vienna’s tech scene in the future. The Pioneers Festival (RIP) proved that Vienna is a fascinating bridge between Western European capital and entrepreneurial culture, and East European entrepreneurs and talent, which it will no doubt continue to benefit from in years to come. But — just as will happen with Lisbon this year and the loss of Web Summit — the loss of a major conference in Vienna to shine a light on the city and ecosystem, combined with the pandemic, may have cooling effects for the next couple of years.


Notable Vienna startups:

  • Newsadoo: Uses artificial intelligence to personalize news.
  • Cashpresso: Links customers, merchants and banks to offer consumer financing options.
  • Jobrocker: An online job search portal that connects applicants’ CVs with job openings.
  • Storyblok: A headless content management system.
  • Byrd: First-mile shipping service that allows customers to ship items hassle-free.
  • Music Traveler: A marketplace that centralizes spaces with musical instruments and equipment.
  • PAYUCA: Provides flexible access to parking spaces in private office and residential buildings.
  • Refurbed: Fast-growing marketplace for refurbished electronics, across the German-speaking world.
  • Presono: A web platform for creating, managing and showing presentations in companies.
  • Blockpit: Develops software for portfolio tracking, tax calculation and compliance reporting of transactions for cryptocurrencies and crypto assets.
  • Robo Wunderkind: A robot for kids to build and program.
  • Medicus: Converts health data with their cryptic numbers and medical language into an easy-to-understand visual experience.
  • Cybershoes: VR accessory that allows you to walk through your favorite VR games.

Here’s who we interviewed:

Eva Arh, principal, Capital 300

What trends are you most excited about investing in, generally?
B2B software, robotics, no/low-code automation, AI-enabled vertical solutions, e-health, companies enabling others to hire and engage talent remotely.

What’s your latest, most exciting investment?
Lokalise.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Companies that enable others to manage and automate billing even further (e.g., per API call), next-gen video conferencing, solutions guiding women through menopause, providing solutions that help companies to offer mental health services to distributed teams, bringing cloud kitchens to the next level (not running central kitchens).

What are you looking for in your next investment, in general?
As always, ambitious, smart, hard-working teams eager to build a category leader in a huge market.

What other types of products/services are you wary or concerned about?
Concerned about solutions that leverage behavioral data to influence people for the sake of optimizing profit, overload of sales and marketing tech, overload of chatbot providers. [It is] hard to compete with players that have benefited from huge network effects such as food delivery.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
We focus on German-speaking areas and Central Eastern Europe. Opportunistically we would also invest outside of the region, still in Europe.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Austria — no specific industry focus within software. However, well-positioned in the biotech space, CEE — given the strong presence of IT outsourcing companies, the region is well-positioned to build solutions in the business-process automation, dev tool space. Storyblok (our portfolio). Others to watch: Anyline, Adverity, Bitpanda, PlanRadar, Refurbed.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Regarding Vienna — we are seeing the first generation of entrepreneurs building global companies. Their and their team experience will be at utmost value creating a new wave of tech companies that compete on a global level.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Yes, we already see this — exciting companies coming out of small cities in Poland, Germany, etc. and companies going remote.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
Telemedicine, online education has been accelerated. We see a shift that otherwise would have taken years, especially in the relatively conservative German-speaking area. As mentioned previously, mental health solutions, hiring and employing remotely are some of the opportunities highlighted by COVID-19. Companies that are heavily exposed are those that have been serving the long tail of companies, small merchants, and local businesses that were closed down or experienced much less traffic in past months and hence are extremely sensitive around their cost base, discontinuing services that are not 110% essential.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
We have always been very selective and focused, partnering up three to four times a year. We continue at the same pace. The companies that perform well despite COVID-19 are still in a strong position for attracting external capital. Of course, we help our portfolio to secure a runway and have a discussion how/whether the situation has impacted their offering/GTM. Some companies have to rethink their value proposition, some rethink their target groups either to make up for slower sales cycles or on the other hand to leverage and benefit from the current situation.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Yes, we see that Lokalise is growing heavily with the current customer base as their customers expand to new markets, likely to make up for slower revenue growth in their existing markets. We see that Nethone (fraud prevention) is able to double down on e-commerce. Online fraud and online transactions are skyrocketing as people spend much more time online. (On the other hand, their airline customers of course show a different trajectory.)

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
It is inspiring to see how founders go through the current situation, act instead of reacting, especially in those countries where there is less government support incentives in place. Personally, I am also happy to see that people use the work from home time to rethink and introduce healthier habits.

Any other thoughts you want to share with TechCrunch readers?
As the world has gone online and the location matters much less, there is an opportunity to distribute the created value and wealth more evenly — be it a company founded in a “non-tech-hub” location or be it talent hired remotely.

14 Oct 2020

Gillmor Gang: Home Stretch

On this edition of the Gillmor Gang, the live recording session was briefly interrupted by a rolling upgrade from Zoom. We’ve been using Zoom to virtualize what we’ve been doing for years with a combination of video switching hardware (Newtek’s TriCaster), a bunch of Mac Minis hosting Skype, an audio mixing board, and a backchannel pushing the switched Program Out to the members of the group. At first, we partnered with Leo Laporte on his fledgling video network. Subsequently, I copied Leo’s early studio setup to make the transition to streaming.

At that point, streaming was an emergent model. No Netflix, no Facebook Live, certainly no transition from RSS and podcasting to what we see now as Streaming From Home is adopted. Not just by the technocrati but mainstream cable networks, the remnants of broadcast television, and commercial streaming networks like Hulu, Amazon Prime, Disney +, and even Apple TV +. Cable news uses a version of our studio model to bring together roundtables where even the hosts are using Zoom’s background replacement feature or the like to simulate their usual broadcast locations. The 4 or 5 second delay over TCP/IP gives away the tech, but just as with the smaller delay we’ve gotten used to with the translation from landline to satellite and now to cell service, we accommodate this seeming lack of attention being paid.

There are limitations with this new virtualized studio, but with a great deal of tweaking, the relative ease of onboarding Zoom offers, and the ubiquity of use that the pandemic has mandated, a new experience has emerged with recording the show. It’s more relaxed, a subtle hybrid of a “show” and a conversation among friends. As I’ve mentioned before, we use a multi-streaming service called Restream to do just that with the edited Zoom feed to broadcast the live session on Facebook Live, Twitter/Periscope, and via an embedded YouTube window, to our newsletter feed on Telegram. After postproduction, we release an edited, sweetened, titled version on TechCrunch.

From the beginning of the Gang, back in 2004 when it was an audio production only, we leveraged an early social network called FriendFeed, to engage listeners in a realtime chat. FriendFeed was essentially a blend of Facebook and Twitter, so much so that Facebook ultimately acquired the startup and made co-founder Bret Taylor CTO. Those playing along at home might recognize Bret now as President and COO of Salesforce, where he went after his next startup, Quip, was acquired. The FriendFeed backchannel lasted for a few years, opensourced at the time but eventually shut down by Facebook.

To explain the magic of the backchannel, I refer you to a book by an old friend, Harvey Brooks, bass player and right-place-right time musician who recorded with a dazzling set of greats from Miles Davis to the seminal first stop on his journey, Bob Dylan. In an age without liner notes, he’s a living example of the magic of producing the right notes at the moment of creation in the studio. With Dylan, that moment came in the recording of Dylan’s first fully electric record, Highway 61 Revisited. He’d just recorded the single Like A Rolling Stone when Harvey was recommended by his friend Al Kooper, who had famously sat down in front of an organ he’d never played before and survived Dylan’s recording process.

Dylan would run down a song with the musicians a couple of times and then begin recording. The players would glean the structure of the song by watching the artist’s hands; Harvey quickly made notes of the chords in the first couple of run throughs. Then it was off to the races with tape rolling. Often that first take would be the keeper. To break it down further, my analogy would be that this was Dylan’s version of the backchannel, where each player’s intuitive feel would be communicated not just to Dylan but to the other musicians, who often were strangers to each other as well.

In recording the Gang, the trick if you will is to capture that moment between the first time you hear something to the time where other takes don’t improve on that spark of creation. A later take may be more studied and practiced, but it may lose that magic of the spark. In the case of the conversation, it’s not quite an improvisation, but what takes it somewhere else is the backchannel, where we all live and communicate between sessions. It’s not quite a newsletter, where the goal (or at least my goal) is to provide stepping stones between rocks in the stream and not the pebbles that form the rush of news and attitude that overwhelms us.

These days Trumpstock is everywhere, not to be avoided but necessary to be survived. Then there are the glimmers of tech, like the media story about Disney’s reorganization around streaming. The ripple effects of surviving the pandemic’s direct hit on Disney’s park revenue and the need to shift investment to Disney + content production are a major signal of where winners are going to emerge in the entertainment industry’s move to a direct relationship with consumers. The backchannel is a powerful tool for giving us direct access to the underlying information required to make strategic decisions about where and how we live as we recover.

Sometimes the winging-it approach bears fruit; sometimes it crashes and burns as elements of this loosely-coupled cloud mashup unexpectedly shift. In this case, our carefully constructed production flow broke down just as we went live. It took some time and a restart to regroup, and a post show debugging to figure out what had changed in a Zoom autoupdate. This is the process. It’s not perfect, but it works when it works. When it doesn’t, it gets better. Join us on the backchannel.

__________________

The Gillmor Gang — Frank Radice, Michael Markman, Keith Teare, Denis Pombriant, Brent Leary, and Steve Gillmor. Recorded live Friday, October 9, 2020.

Produced and directed by Tina Chase Gillmor @tinagillmor

@fradice, @mickeleh, @denispombriant, @kteare, @brentleary, @stevegillmor, @gillmorgang

For more, subscribe to the Gillmor Gang Newsletter and join the backchannel here on Telegram.

The Gillmor Gang on Facebook … and here’s our sister show G3 on Facebook.

13 Oct 2020

Daily Crunch: Apple introduces the iPhone 12

Apple embraces 5G, Facebook Messenger gets better integrated with Instagram and Kahoot raises $215 million. This is your Daily Crunch for October 13, 2020.

The big story: Apple introduces the iPhone 12

Apple’s big event today kicked off with the announcement of the HomePod Mini, but the real focus was on the iPhone — specifically, the iPhone 12.

Pricing for the new iPhone starts at $799. New features include 5G, a magnetic adapter for various accessories (including wireless chargers) and a more durable Corning glass display.

There are four models, so if you’re trying to decide which one you want, we’ve even created a handy chart to keep them all straight.

The tech giants

Alphabet’s latest moonshot is a field-roving, plant-inspecting robo-buggy — Announced with little fanfare in a blog post and site, the Mineral project is still very much in the experimental phase.

Messenger’s latest update brings new features, cross-app communication with Instagram – The changes are a part of Facebook’s overhauled messaging platform, announced in late September, which introduced the ability for Instagram users to communicate with people on Facebook.

Startups, funding and venture capital

Kahoot picks up $215M from SoftBank for its user-generated, gamified e-learning platform — After announcing a modest $28 million raise earlier this year, the user-generated gamified e-learning platform revealed a much bigger round today.

Astroscale raises $51M in Series E funding to fuel its orbital sustainability ambitions — The Japan-based company has been focused on delivering new solutions for orbital end-of-life.

Caliber, with $2.2M in seed funding, launches a fitness coaching platform — The company says it brings on about five of every 100 applications for coaches on the platform, accepting only the very best trainers.

Advice and analysis from Extra Crunch

Is the Twilio-Segment deal expensive? — A quick look at the deal’s historical analogs and what we can tell from the numbers.

Should you replace your developer portal with a hybrid integration platform? — Changing your integration approach can reduce time to market and boost revenue.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Walt Disney announces reorganization to focus on streaming — Disney’s media businesses, ads and distribution and Disney+ will now operate under the same business unit.

Original Content podcast: Netflix’s ‘Enola Holmes’ is thoroughly mediocre — I did not enjoy this movie.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

13 Oct 2020

PopSockets is working on MagSafe-compatible iPhone accessories

PopSockets will support Apple’s MagSafe technology, TechCrunch has confirmed — meaning you’ll soon be able to pop on and off these ubiquitous iPhone accessories without worrying about the sticker on the back losing its adhesiveness over time and needing a rinse.

MagSafe, Apple’s charging brand, is now the company’s new system for iPhone wireless charging and easy-to-attach accessories, introduced today at Apple’s iPhone event.

Thanks to the new array of magnets positioned around the wireless charging coil, the iPhone will be better aligned when connected with Apple’s MagSafe Charger and MagSafe Duo Charger — designed for wirelessly charging the iPhone 12 and iPhone 12 plus Apple Watch, respectively.

But the system also enables a range of MagSafe accessories that work with iPhone 12.

Apple is introducing its own accessories, with new silicone, leather and clear cases that easily snap on the back of the iPhone 12 models, as well as an attachable iPhone wallet. The company also said on Tuesday that consumers should expect a range of MagSafe accessories from third-party manufacturers.

I’ll admit, my mind was on PopSockets for some reason before the Apple event. Which is why when MagSafe was introduced, my first thought was oh, PopSockets! 

I’m probably not alone.

The company has sold over 165 million PopSockets Grips since launching in 2014, and has since expanded its grippy-things-on-the-back-of-your-phone product line to include all sorts of variations — like PopSockets with mirrors or lip gloss, tiny versions, PopSockets with wallets, Otter + PopSockets phone cases, and even PopSockets that match your nails. (Oh, and they’ve got face masks to match your PopSockets now, too.)

PopSockets Grips can be removed a number of times, but they can lose their stickiness over time. The company says the solution is to give the little dongle a rinse and let it air dry for about 10 minutes, then stick it back on the iPhone and let it set for a couple of hours.

This can be a bit of a tedious process, which is why the company introduced PopSockets Grips with interchangeable covers, aka PopTops.

However, a line of MagSafe-compatible PopSockets line would mean you wouldn’t have to worry about the product’s stickiness wearing off. As a result, users might be included to buy more of these iPhone dongles — perhaps even accumulating a collection they can swap out at will, to match their outfits or mood.

It also means that users could forgo having to use a case with their iPhone — as iPhone 11 owners currently have to — in order to take advantage of PopSockets Grips.

Conversely, it could open PopSockets up to more competition in the accessories market, as companies won’t have to out-engineer the Grips and their patent-protected technology. Instead, rivals could simply expand their existing product lines with MagSafe-compatible items for an upcharge and increase their revenues.

PopSockets says it has MagSafe products in development, but isn’t announcing details at this time.

Note: Image does not show MagSafe-compatible products. 

13 Oct 2020

Discuss the unbundling of early-stage VC with Unusual Ventures’ Sarah Leary & John Vrionis

This year has been everything but business as usual for the venture and tech community. And we still have a presidential election ahead of us.

So, why not listen to the aptly-named experts over at Unusual Ventures? Partners Sarah Leary (co-founder of Nextdoor) and John Vrionis, formerly of Lightspeed Ventures Partners, will join us on Tuesday, October 20 on the Extra Crunch Live virtual stage.

Thanks to all of you who have joined us for our series of live discussions that has included tech leaders like Sydney Sykes, Alexia von Tobel, Mark Cuban and many others (all recordings are still accessible for Extra Crunch subscribers to watch and learn from).

If you’re new, welcome! You’ll have a chance to participate in the live discussion if you have an Extra Crunch subscription.

Unusual Ventures’ investments span the consumer and enterprise space, including companies like Robinhood, AppDynamics, Mulesoft and Winnie.

For this chat, I plan to spend some time talking to Leary and Vrionis about how early-stage venture capital has changed with the rise of rolling funds, community funds and syndicates. Unusual Ventures claims “there’s an enormous opportunity to raise the bar on what seed-stage investors provide for early-stage founders,” so we’ll get into that opportunity as well.

And if we have time, we’ll discuss remote work, building in public and the U.S. presidential election.

So, what are you waiting for? Add the deets to your calendar (below the jump!) and join me next Tuesday.

Details

13 Oct 2020

Two Screens For Teachers will outfit all educators in Seattle Public Schools with a second monitor

The admirable effort Two Screens For Teachers, which as you may guess is about getting teachers a second screen to use at home, has put together enough funds to get every educator in the Seattle Public School system a new monitor who needs one. They’re hoping it will spur others to pony up for a similar treatment at their local schools.

The idea of running a class with 30 kids while also juggling teaching materials and administrative stuff all on a single laptop screen is anxiety-inducing just to think about, and thousands of teachers have been doing just that for months.

Two Screens For Teachers was announced in September as a way to connect those educators who need a second monitor (which is to say, most of them) with people who want to pay for it — it’s that simple. Thousands of monitors have already been distributed, but the waiting list is more than 20,000 people long, the kind of scale where the needle only gets moved over time — which teachers have little of — or generosity.

Fortunately there are enough generous people with a bit of cash on hand in Seattle that the organization has enough to give a new monitor to all of the 3,000 or so teachers in Seattle public schools..

Walk Score co-founders Matt Lerner and Mike Mathieu put the thing together in the first place, but a bunch of Seattle-based investors and entrepreneurs came together to raise the ~$430K needed to cover the costs of covering the whole district: “a matching grant from the Mark Torrance Foundation, a collection of early Amazon, Microsoft, and Redfin employees, and venture capitalists from the Madrona Venture Group and Pioneer Square Labs,” as the organization put it.

He’s hoping that the success in Seattle will activate similar communities all over the country where there are thousands more teachers in need.

“We’re asking our fellow techies in the Bay Area, Los Angeles, New York, Chicago, Denver, Salt Lake City, Atlanta, Austin, Dallas, Pittsburgh and Raleigh-Durham to show teachers they matter and keep students connected across the country,” said Lerner in a press release. Naturally other cities are welcome to join in as well, but those on the list have been challenged directly.

Lerner confirmed to me that Two Screens For Teachers would happily act as an intermediary, doing discounted bulk purchases of monitors (as opposed to matching individual donors with individual teachers, which was how it got started) and having regional leaders raise cash to cover the distribution to their local educators.

In the spirit of friendly competition, here’s hoping other cities, and the people in them looking for a way to give back tangibly in these hard times, will take up the gauntlet and get their educators this hugely helpful resource. You can learn more (or donate) at twoscreensforteachers.com.