Category: UNCATEGORIZED

Even though this might seem to be the absolute worst time to try to round up funding for a restaurant-related startup, Allset is announcing that it’s raised an $8.25 million Series B.

It was not, to be clear, an easy process. CEO Stas Matviyenko (who founded the company with COO Anna Polishchuk) admitted that when he set out to fundraise, the goal was actually $12 million. And at one point, it looked like he might even raise more than that — but as he finalized the round in the week before widespread social distancing measures started to take effect around the United States (effectively ending dine-in options in some cities), he said, “A few investors just disappeared.”

Still, Matviyenko said he feels “lucky” to have closed out the round at all. And he pointed to signs that consumers and restaurants are still turning to Allset during the COVID-19 pandemic.

The company started out with a focus on delivering a quick dining experience in restaurants, allowing diners to make a reservation, order ahead and then pay directly through the Allset app. Over time, Matviyenko said, the app also began to offer personalized, healthy recommendations at each restaurant.

At the same time, Allset has added takeout options — and most recently, a feature that allows restaurants to offer contactless takeout, akin to the contactless option offered by many restaurant delivery apps. In fact, Allset is waiving its 12 percent commission fee for restaurants offering this option. (It’s also been promoting usage by offering a daily $4 discount for takeout orders.)

Image Credits: Allset

And while Matviyenko said that orders dropped by around 60 percent as social distancing measures went into place, they’ve apparently they’ve bounced back (by 10 percent as Allset signed up new partners — usually in more residential neighborhoods, away from the office-heavy areas where the companies had previously focused. Matviyenko said the startup has added more than 200 new restaurants in the past couple weeks.

He also emphasized the distinction between AllSet and the various delivery apps. He didn’t rule out adding a delivery option to Allset in the future, but since delivery requires such an investment in logistics, he’d likely to do it by partnering with a company already working in this area. Conversely, he suggested that for most delivery apps, takeout is usually an afterthought (assuming they support it at all), while Allset is trying to offer “the best [takeout] experience” possible.

The new round brings Allset’s total funding to $16.6 million. It was led by led by EBRD (the European Bank for Reconstruction and Development), with participation from Andreessen Horowitz, Greycroft, SMRK VC Fund and Inovo Venture Partners.

“The Allset team is building a great product and their effective execution yields strong unit economics with sustainable growth,” said EBRD’s Maria Barsuk in a statement. “We’re excited to partner with them in their next phase, as well as proud to support their efforts in serving local businesses and customers during this unprecedented time for the restaurant industry.”

GM today announced manufacturing details around building much-needed medical face masks. According to the company’s press release, it took the company less than seven days to go from nothing to producing the first production-made mask. The automotive giant said today in a released statement it expects to deliver 20,000 masks on April 8 and soon after, able to produce 50,000 masks a day once the production line is at full capacity.

These face masks are a vital piece of personal protective equipment (PPE) used by front-line healthcare staff to protect themselves against the virus-causing droplets that are spread by patients through coughing and sneezing in clinical settings.

GM turned to global partners to create this manufacturing line within a week. The company sourced material from GM’s existing supply chain and acquired manufacturing equipment from JR Automation in Holland, Michigan, and Esys Automation in Auburn Hills, Michigan. As the company’s press release says, GM even created an ISO Class 8-equivalent cleanroom in GM’s Warren manufacturing plant. GM and the UAW will seek two dozen volunteers to staff this new assembly line.

“The first people we called were those who work with fabric vehicle components,” said Karsten Garbe, GM plant director, Global Pre-Production Operations. “In a few days, the company’s seat belt and interior trim experts became experts in manufacturing face masks.”

While this team was creating a face mask assembly line, others within GM were working towards creating ventilators. Last Friday, March 27, President Donald Trump signed a presidential directive ordering GM to produce ventilators and to prioritize federal contracts. This came hours after the automaker announced plans to manufacture the critical medical equipment needed for patients suffering from COVID-19, the disease caused by the coronavirus.

Other automakers joined the fight, as well. Ford and GE Healthcare licensed a ventilator design from Airon Corp and plan to produce as many as 50,000 of them at a Michigan factory by July as part of a broader effort to provide a critical medical device used to treat people with COVID-19. Under this partnership, Ford said it expects to produce 1,500 Airon ventilators by the end of April, 12,00 by the end of May, and 50,000 by July.

As companies get to grips with a wider (and, lately, more enforced) model of remote working, a startup that provides a platform to help track and manage all the devices that are accessing networked services — an essential component of cybersecurity policy — has raised a large round of growth funding. Axonius, a New York-based company that provides a way for organizations to manage and track the range of computing-based assets that are connecting to their networks — and then plug in that data to 100 different cybersecurity tools to analyse it — has picked up a Series C of $58 million, money it will use to continue investing in its technology (its R&D offices are in Tel Aviv, Israel) and expanding its business overall.

The round is being led by prolific enterprise investor Lightspeed Venture Partners, with previous backers OpenView, Bessemer Venture Partners, YL Ventures, Vertex, and WTI also participating in the round.

Dean Sysman, CEO and Co-Founder at Axonius, said in an interview that the company is not disclosing its valuation, but for some context, the company has now raised $95 million, and PitchBook noted that in its last round, $20 million in August 2019, it had a post-money valuation of $110 million.

The company has had a huge boost in business in the last year, however — not a surprise for a company that helps enable secure remote working, at a time when many businesses have gone remote in an effort to follow government policies encouraging social distancing to slow the spread of the coronavirus pandemic. As of this month, Axonius has seen customer growth increase 910% compared to a year ago.

Sysman said that this round had been in progress for some time ahead of the announcement being made, but the final stages of closing it were all done remotely last week, which has become something of a new normal in venture deals at the moment.

“We’ve all been staying at home for the last few weeks,” he said in an interview. “The crisis is not helping with deals. It’s making everything more complex for sure. But specifically for us there wasn’t a major difference in the process.”

Sysman said that he first thought of the idea for Axonius when at a previous organization — his experience includes several years with the Israeli Defense Force, as well as time at a startup called Integrity Project, acquired by Mellanox — where he realised the business itself, and all of its customers, never actually knew how many devices accessed their network, which is a crucial first step in being able to secure that network.

“Every CIO I met I would ask, do you know how many devices you have on your network? And the answer was either ‘I don’t know,’ or big range, which is just another way of saying, ‘I don’t know,'” Sysman said. “It’s not because they’re not doing their jobs but because it’s just a tough problem.” Part of the reason is because IP addresses are not precise enough, and de-duplicating and correlating numbers is gargantuan especially in the current climate of people using not just a multitude of work-provided devices, but a number of their own.

That was what prompted Sysman and his cofounders Ofri Shur and Avidor Bartov to build the algorithms that formed the basis of what Axonius is today. It’s not based on behavioural data as some cybersecurity systems are, but something that Sysman describes as “a deterministic algorithm that knows builds a unique set of identifiers that can be based on anything, including timestamp, or cloud information. We try to use every piece of data we can.”

The resulting information becomes a very valuable asset in itself that can then be used across a number of other pieces of security software to search for inconsistencies in use (the behavioural aspect) or other indicators of malicious activity — specifically following the company’s motto, “Know Your Assets, Identify Gaps, and Automate Security Policy Enforcement” — even as data itself may seem a little pedestrian on its own.

“We like to call ourselves the Toyota Camry of cybersecurity,” Sysman said. “It’s nothing exotic in a world of cutting-edge AI and advanced tech. However it’s a fundamental thing that people are struggling with, and it is what everyone needs. Just like the Camry.”

It’s a formula that has definitely seen a lot of traction with customers — which include companies like Schneider Electric, the New York Times, and Landmark Medical, among others — as well as investors.

“Any enterprise CISO’s top priority, with unwavering consistency, is asset discovery and management. You can’t protect a device if you don’t know it exists.” said Arsham Menarzadeh, general partner at Lightspeed Venture Partners, in a statement. “Axonius integrates into any security and management product to show customers their full asset landscape and automate policy enforcement. Their integrated approach and remediation capabilities position them to become the operating system and single source of truth for security and IT teams. We’re excited to play a part in helping them scale.”

In December 2019, Extra Crunch spoke to a group of investors leading the charge in health tech to discuss where they saw the most opportunity in the space leading into 2020.

At the time, respondents highlighted startups in digital therapeutics, telehealth and mental health that were improving medical practitioner efficiency or streamlining the distribution of care, amongst a variety of other digital health markets that were garnering the most attention.

In the months since, the COVID-19 crisis has debilitated national healthcare systems and the global economy. Weaknesses in healthcare systems have become clearer than ever, while startups and capital providers have struggled to operate while wide swaths of the market effectively shut down.

Given significant volatility and the rapid changes seen in the worlds of healthcare, venture and startups broadly, we wanted to understand which inefficiencies might have been brought to light, what new opportunities might exist for founders looking to reduce friction in healthcare systems, how digital health startups have been impacted and how health tech investing as a whole has changed.

We asked several of the VCs who participated in our last digital health survey to update us on how COVID-19 is impacting digital health startups and broader healthcare systems around the world:

• Annie Case, Kleiner Perkins
• Kristin Baker Spohn, CRV
• Deena Shakir, Lux Capital
• Jennifer Hartt, Ben Franklin Technology Partners
• John Prendergass, Ben Franklin Technology Partners
• Bill Liao, SOSV

Annie Case, Kleiner Perkins

Our current unprecedented global crisis has put a spotlight on digital health. In the last few weeks alone, we have seen what feels like a decade’s worth of societal and regulatory changes that require digital health companies to step up and embrace new challenges and opportunities.

Let’s be real: Now isn’t the ideal time to launch a health tracker. For a majority of us, expectations have dramatically plummeted for step counts, workout minutes and other gamified metrics. But hardware launches will, for the most part, go on.

Fitbit eschewed its normal press event this time out — for increasingly good reason — instead opting to launch the Charge 4 by way of press release. The line is modest, in a wearable category that’s begun to be dominated by smartwatches, but it’s a cornerstone product that continues to do well for the soon-to-be Google-owned hardware company.

The biggest news here is built-in GPS — a big addition for the category — and Spotify control. The Spotify bit uses “Connect & Control,” requiring a premium account to play back music from playlists.

Better news for those stuck at home are a number of yoga and other workouts directly accessible through a Fitbit Premium account. That’s available as a 90-day trial for new users. Other news: on-board software updates include Active Zone Minutes, which provides more detailed workout requirements informed by the WHO and AMA, along with improved sleep measurements.

Lifestyle photo of Fitbit Charge 4

GPS is a nice addition, but nothing particularly groundbreaking here. At the very least, the update will pump a little fresh blood into what’s become a flagging category, as smartwatches (Fitbit’s included) have begun to increasingly suck the air out of the room for other wearables.

The Charge 4 will hit stores “in markets where they are still open” on April 13. It runs $150, or $170 for a special addition that includes some upgraded bands.

Even as the pandemic forces Niantic to shift the way its outdoor-friendly titles are played, the gaming company is charging ahead with its efforts to build out an augmented reality platform which allows users to interact with the real world.

Today, the studio behind Pokémon Go announced that it has acquired 6D.ai, a promising SF-based augmented reality startup focused on building software that allowed smartphone cameras to rapidly detect the 3D layouts of spaces around them.

The companies didn’t share terms of the deal.

Niantic’s bread-and-butter is mobile games, specifically Pokémon Go, but the company has raised nearly a half-billion dollars to do something more, building out a developer platform for augmented reality meant to rival what has been created by Facebook and Apple. Acquiring 6D.ai is an interesting step further there.

Niantic is a consumer games company and 6D.ai was primarily working with enterprise clients. While Niantic will be shutting down 6D.ai’s existing developer tools over the next month, a spokesperson tells TechCrunch that the tech will soon be integrated with the company’s Niantic Real World Platform to help developers “build AR experiences for all types of consumer and business applications, including enterprise.”

We profiled 6D.ai back in 2018 when they were fresh out of Oxford University’s Active Vision Lab. CEO Matt Miesnieks told us at the time how he hoped his startup could one day crowdsource 3D models of cities.

“One of the big things holding back engaging AR is for content to feel like it’s actually physically part of the world,” Miesnieks told TechCrunch. “To really make that effect possible, you need to have a 3D model of at least your room, if not the whole world.”

Both Apple and Facebook have made considerable investments in their augmented reality platforms, hoping to bring developers aboard and mount an early lead. Even cursory adoption of the technology has been slower than many in the tech industry have expected, and has, if anything, further isolated Apple and Facebook’s early advantages.

Niantic does host AR’s most popular consumer success story with Pokémon Go, a title which Niantic is still reportedly raking in cash from. Analytics firm SensorTower estimated that the 2016 title had its best year ever in 2019, pulling in some $900 million in revenue. The breakout success of “Go” has not been mirrored as dramatically in the early reception of the studio’s major launch of 2019, Harry Potter: Wizards Unite.

The ultimate question for Niantic is whether it’s in their best interest to aggressively compete on the tech platform side with acquisitions like these when the timeline of returns is so uncertain and their competitors can likely afford much longer bouts of uncertainty.

Following the acquisition, 6D.ai co-founder Victor Prisacariu will be joining Niantic’s London office with Miesnieks opting for an advisory role going forward. The startup had not fully disclosed its funding. Its seed round was led by Niko Bonatsos at General Catalyst and the startup also received funding from Oxford. Angel investors in 6D included Amitt Mahajan, Jacob Mullins and Greg Castle, among others.

SpaceX is readying for its first flight with astronauts on board – Demo-2, which is technically the last demonstration mission that is required before the Crew Dragon capsule is officially certified to start flying regular missions. Demo-2’s mission scope has been adjusted somewhat so that astronauts Bob Behnken and Doug Hurley will be actually doing some shift work on the International Space Station, but Crew-1 is the official first operational mission of the SpaceX human-rated spacecraft, and now we know a few more details about who that will carry.

The Japan Aerospace Exploration Agency (JAXA) has announced that JAXA astronaut Noguchi Soichi will be on the first Crew Dragon mission once it officially is declared operational, and the agency said on Tuesday that Noguchi has begun training for his trip to the ISS. Noguchi has been to the ISS twice previously on other missions, including between 2009 and 2010 on via a Russian Soyuz launch, and during 2005 when he actually flew aboard the Space Shuttle Discovery in order to help assemble part of the station.

SpaceX and NASA are currently readying for Demo-1, which as mentioned will be crewed by two NASA astronauts. That should take place sometime in mid to late May if the schedule holds to current timing plans. Once that’s complete, Crew-1, which is intended to have a complement of three people on board, should begin sometime in the later half of 2020.

Today, DataStax, the commercial company behind the open source Apache Cassandra project, announced an open source Kubernetes operator developed by the company to run a cloud native version of the database.

When Sam Ramji, chief strategy officer at DataStax, came over from Google last year, the first thing he did was take the pulse of customers, partners and community members around Kubernetes and Cassandra, and they found there was surprisingly limited support.

While some companies had built Kubernetes support themselves, DataStax lacked one to call its own. Given that Kubernetes was born inside Google, and the company has widely embraced the notion of containerization in general, Ramji wanted there to be an operator specifically designed by the company to give customers a general starting point with Kubernetes.

“What’s special about the Kube operator that we’re offering to the community as an opinion — one of many — is that we have done the work to generalize the operator to Cassandra wherever it might be implemented,” Ramji told TechCrunch.

Ramji says that most companies that have created their own Kubernetes operators tend to specialize for their own particular requirements, which is fine, but as the company built on top of Cassandra, they wanted to come up with a general version that could appeal broader range of use cases.

In Kubernetes, the operator is how the DevOps team packages, manages and deploys an application, giving it the instructions it needs to run correctly. DataStax has created this operator specifically to run Cassandra with a broad set of assumptions.

Cassandra is a powerful database because it stays running when many others fall down. As such it is used by companies as varied as Apple, eBay and Netflix to run their key services. This new Kubernetes implementation will enable anyone who wishes to run Cassandra as a containerized application, helping push it into a modern development realm.

The company also announced a free help service for engineers trying to cope with increased usage on their databases due to COVID-19. They are calling the program, “Keep calm and Cassandra on.” The engineers charged with keeping systems like Cassandra running are called Site Reliability Engineers or SREs.

“The new service is completely free SRE-to-SRE support calls. So our SREs are taking calls from Apache Cassandra users anywhere in the world, no matter what version they’re using if they’re trying to figure out how to keep it up to stand up to the increased demand,” Ramji explained.

DataStax was founded in 2010 and has raised over $190 million, according to PitchBook data.

An effort I’ve been following in the Bay Area to deliver meals to front-line hospital clinicians dealing with the results of COVID-19 is announcing a big new partnership today that should give it a national stage. Frontline Foods is partnering up with World Central Kitchen to scale up its ad-hoc efforts across the US.

World Central Kitchen is a not-for-profit organization founded by chef José Andrés in 2010 that has made headlines over and over again as it has provided food and disaster relief in countries around the world after disasters like Hurricane Maria in Puerto Rico, the Camp Fires in California and most recently COVID-19-affected cruise passengers in Japan and Oakland.

Frontline Foods is an open-sourced effort to deliver meals to hospital staff from local restaurants impacted by loss of clientele due to coronavirus prevention measures. The equation is a brilliantly simple one. Restaurants have far less customers, hospital staff are moving at incredible speed and unable to score a great meal on the fly.

The #SFhospitalmeals experiment evolved into a full clinician meal program, as launched here by Frank Barbieri and Sydney Gessel, along with Ryan Sarver, who I spoke to via email about the program — one of several similar efforts that collectively became Frontline Foods.

“Frank was texting with a mutual friend of ours, Sydney Gessel, who is a registered nurse in the Emergency Department at UCSF Mission Bay. He asked her, ‘How can I help’ and she essentially replied ‘pizza.’ Nurses are pulling 16-hour shifts, are stressed, tired, no time to cook at home, restaurants are closed and the simple act of feeding themselves was going by the wayside,” Sarver said. “At the same time, restaurants were starting to face the reality of shelter-in-place and the dire results of what it meant for them and their teams. We called up a local pizza spot that night and had a bunch of pizzas delivered to her unit. The restaurant and the clinicians were both ecstatic and we realized there was an opportunity to try to do more of this.”

After a couple of dry runs and a tweet for donors, the project ended up expanding to 7 hospitals and raising an eventual $350k over the past few weeks.

Ryan and Frank and other volunteers like Chris Consentino outlined a spec for the project and reached out to a number of restaurants and started plugging them into spreadsheets that matched restaurants to units in need across a few Bay Area hospitals.

Frontline Foods, as a federation that now has multiple chapters across the US, has 150 volunteers in 12 cities and has raised a combined $700,000. In SF it has delivered 4,375 meals to 6 local hospitals. It currently has the ability to deliver another 12,000 meals in SF. Current hospitals served in the bay include UCSF Mission Bay, UCSF Parnassus, SFGH, Kaiser Geary, CPMC Van Ness and CPMC Davies.

Once they saw that there were more groups in the bay and across the US that had started similar ‘connect restaurants to COVID-19 clinicians’ efforts, they began to see the need to build out a standard.

“We decided ‘open sourcing’ the process and tools we were using would help other people start their own programs and allow us to learn from others groups,” Sarver said. “We eventually launched a Slack to help the other cities coordinate. In less than a week we now have 180 volunteers in the Slack, over a dozen cities launched, have raised $700k, and delivered 7,000+ meals.”

Frontline is looking to leverage WCK’s experience in raising money and preparing food for disasters over the last 10 years. WCK’s help as a fiscal sponsor will also give Frontline Foods the ability to utilize its 501c3 status to accept donations. The side of this that is bolstering local restaurants and creating a pipeline between them and groups of people in need of food — fueled by donations — is what Frontline is hoping to bring to the table.

The group boasts a diverse set of skills from technology and design to community management, food & beverage and non-profits. They’re distributed across the US, Canada and Australia as well. It’s nearly all being run on Slack and Zoom calls as well, and most of the group has never met one another.

“We open sourced the process and tools, which at the time was some Google Docs and Google Sheets,” said Sarver. “In the week since, we have spun up a product and engineering team of volunteers who are designing and building more automated systems. Some of it is custom built and but much of it is going to be built on Coda for the backend tools, documentation and automation.”

Many of the cities that are now a part of the Frontline Foods project were home to efforts that started in parallel. After reaching out and realizing that they were aligned, there was a drive to create a new umbrella that used a shared mission and shared systems to make them more effective.

Frontline is reaching out to local, independent restaurants in the areas where it operates or having them apply via a form, and word has spread through the restaurant community. Many of them, even without previous take-out or delivery experience, are figuring out how to package and deliver meals through Frontline’s pipeline. In return, they get a pipeline of predictable business at a time when they are not seeing much predictability at all.

The restaurant industry has been hit incredibly hard by COVID-19, and there is a real danger that an entire generation of independent food providers will just be wiped out. Many are adapting at speed to a life of takeout, or marketplaces, or safe delivery — but any additional help is welcome. And the double-ended benefit that results from the Frontline Foods (and WCK) project is a fantastic way to deliver that help.

“World Central Kitchen is a team of food first responders, mobilizing with the urgency of now to get meals to those who need them most. We are proud that this alliance with Frontline Foods will help activate even more restaurants and kitchens to feed our brave medical professionals on the front lines, in order to make a meaningful impact in the fight to keep everyone fed, and to support the distressed restaurant industry,” World Central Kitchen CEO Nate Mook said in a release today.

Frontline Foods and WCK are taking no fees from these transactions. Along with the WCK partnership, Frontline is also launching a national donation-matching program with a $200,000 matching grant from top donors.

“This is an unprecedented crisis (I’ve used that a lot, but it is) — the hospitals and clinicians have never seen anything like this,” said Sarver via email. “And for the 11 million people employed by restaurants in the US, they face a very uncertain future. Every dollar of a donation goes directly into the pockets of these restaurants to make the food that goes to our clinicians. If you can, please consider a donation.”

You can donate on Frontline Foods website here.

Data science platform cnvrg.io today announced the launch of the free community version of its data science platform. Dubbed ‘CORE,’ this version includes most — but not all — of the standard feature in cnvrg’s main commercial offering. It’s an end-to-end solution for building, managing and automating basic ML models with limitations in the free version that mostly center around the production capabilities of the paid premium version and working with larger teams of data scientists.

As the company’s CEO Yochay Ettun told me, CORE users will be able to use the platform either on-premise or in the cloud, using Nvidia-optimized containers that run on a Kubernetes cluster. Because of this, it natively handles hybrid- and multi-cloud deployments that can automatically scale up and down as needed — and adding new AI frameworks is simply a matter of spinning up new containers, all of which are managed from the platform’s web-based dashboard.

Ettun describes CORE as a ‘lightweight version’ of the original platform but still hews closely to the platform’s original mission. “As was our vision from the very start, cnvrg.io wants to help data scientists do what they do best – build high impact AI,” he said. “With the growing technical complexity of the AI field, the data science community has strayed from the core of what makes data science such a captivating profession — the algorithms. Today’s reality is that data scientists are spending 80 percent of their time on non-data science tasks, and 65 percent of models don’t make it to production. Cnvrg.io CORE is an opportunity to open its end-to-end solution to the community to help data scientists and engineers focus less on technical complexity and DevOps, and more on the core of data science — solving complex problems.”

This has very much been the company’s direction from the outset and as Ettun noted in a blog post from a few days ago, many data scientists today try to build their own stack by using open-source tools. They want to remain agile and able to customize their tools to their needs, after all. But he also argues that data scientists are usually hired to build machine learning models, not to build and manage data science platforms.

While other platforms like H2O.ai, for example, are betting on open source and the flexibility that comes with that, cnvrg.io’s focus is squarely on ease of use. Unlike those tools, Jerusalem-based cnvrg.io, which has raised about $8 million so far, doesn’t have the advantage of the free marketing that comes with open source, so it makes sense for the company to now launch this free self-service version

It’s worth noting that while cnvrg.io features plenty of graphical tools for managing date ingestion flows, models and clusters, it’s very much a code-first platform. With that, Ettun tells me that the ideal user is a data scientist, data engineer or a student passionate about machine learning. “As a code-first platform, users with experience and savvy in the data science field will be able to leverage cnvrg CORE features to produce high impact models,” he said. “As our product is built around getting more models to production, users that are deploying their models to real-world applications will see the most value.”