Monthly Archives: October 2020

News: App management startup AppFollow raises $5M Series A round led by Nauta Capital

AppFollow, an app management startup, has raised a $5 million Series A round led by Barcelona’s Nauta Capital, alongside existing investors Vendep Capital and RTP Global participating. The Helsinki-headquartered company says benefitted during the pandemic and even in April 2020 as the desire for automation and apps exploded. It says it now has 70,000 clients

AppFollow, an app management startup, has raised a $5 million Series A round led by Barcelona’s Nauta Capital, alongside existing investors Vendep Capital and RTP Global participating.

The Helsinki-headquartered company says benefitted during the pandemic and even in April 2020 as the desire for automation and apps exploded. It says it now has 70,000 clients on its platform globally including McDonald’s, Disney, Expedia, PicsArt, Flo, Jam City and Discord.

CEO Anatoly Sharifulin said in a statement: “AppFollow helps teams understand sentiment, both for your users and competitor’s, figure out how your potential customers search for apps and use this knowledge to make your app more visible and, of course, follow on your KPIs like downloads and revenues to be sure that all is under control.”

Eugene Kruglov of Nauta Capital said: “We are extremely delighted to partner with Nauta Capital on this round. And having both of current investors and as well some of our customers to participate in the round proves that we are on the right direction to become the market standard for effective app management.”

The company, which employs 65 people across 9 countries, all working remotely, will use the investment to strengthen its presence in the US and Europe, hire VP-level executives in sales, marketing and diversify their platform.

News: Outrider raises $65 million to bring its autonomous tech to distribution yards

Outrider, a startup aiming to bring its autonomous technology to the nerve center of the supply chain, has raised $65 million in funding just eight months after coming out of stealth. The Series B round was led by Koch Disruptive Technologies and brings its total funding raised to $118 million. Other existing investors increased their

Outrider, a startup aiming to bring its autonomous technology to the nerve center of the supply chain, has raised $65 million in funding just eight months after coming out of stealth. The Series B round was led by Koch Disruptive Technologies and brings its total funding raised to $118 million.

Other existing investors increased their investments, including NEA, 8VC, and Prologis Ventures, according to the company. New investors included Henry Crown and Company and Evolv Ventures.

The company’s aim to automate distribution yards doesn’t get the same kind of attention as the more public-facing robotaxis that other companies are pursuing. But it could be as impactful and potentially lucrative to the company that pulls it off. Distribution yards are where goods make the transition from long-haul trucks to warehouses, and eventually the consumer. These hubs of economic activity rely on humans to make repetitive, manual tasks using diesel-powered yard trucks. There are some 400,000 distribution yards located in the United States, a number that provides an idea of the potential size of the opportunity.

Outrider electric autonomous yard truck

Image Credits: Outrider

The Golden, Colo. startup previously known as Azevtec developed a three-part system that includes an autonomous electric yard truck, software to manage the operations and site infrastructure. The total system automates the manual aspect of yard operations, including moving trailers around the yard as well as to and from loading docks. The system can also hitch and unhitch trailers, connect and disconnect trailer brake lines, and monitor trailer locations.

Outrider touts the dual benefits of its electric and autonomous system. The company notes that its electric yard trucks are ideal for autonomy due to their reduced maintenance, lower operating costs and reliable clean power. Andrew Smith, the company’s founder and CEO, says disruptions caused by COVID-19 has highlighted the need for this kind of automated distribution yard technology.

Outrider, which now employs 110 employees, has completed “multiple” pilot programs, including one with Georgia-Pacific and expanded its customer base since coming out of stealth in February.

News: Qualtrics CEO Ryan Smith is buying majority stake in the Utah Jazz for $1.6B

The Utah Jazz, an NBA basketball team based in Salt Lake City, announced today that Qualitrics CEO and co-founder Ryan Smith was buying a majority stake in the team along other properties. ESPN is reporting the deal is worth $1.6 billion. Smith can afford it. He sold Qualtrics, which is based in Provo, Utah, in

The Utah Jazz, an NBA basketball team based in Salt Lake City, announced today that Qualitrics CEO and co-founder Ryan Smith was buying a majority stake in the team along other properties. ESPN is reporting the deal is worth $1.6 billion.

Smith can afford it. He sold Qualtrics, which is based in Provo, Utah, in 2018 to SAP for $8 billion just before the startup was about to go public. Earlier this year, SAP announced plans to spin out Qualtrics as public company.

In addition to The Jazz, he’s also getting Vivint Arena, the National Basketball Association (NBA) G League team Salt Lake City Stars and management of the Triple-A baseball affiliate Salt Lake Bees. Smith is buying the properties from the Miller family, who have run them for over three decades.

Smith was over the moon about being able to buy into a franchise he has supported over the years. “My wife and I are absolutely humbled and excited about the opportunity to take the team forward far into the future – especially with the greatest fans in the NBA. The Utah Jazz, the state of Utah, and its capital city are the beneficiaries of the Millers’ tremendous love, generosity and investment. We look forward to building upon their lifelong work,” he said in a statement.

The deal is pending approval of the NBA Board Governors, but once that happens, Smith will have full decision making authority over the franchise.

Qualtrics, which makes customer survey tools, was founded in 2002 and raised over $400 million from firms like Accel, Insight Partners and Sequoia before selling the company two years ago to SAP.

Smith is not the first tech billionaire to buy a basketball team. He joins Mark Cuban, who bought the Dallas Mavericks in 1999 after selling Broadcast.com to Yahoo for $5.7 billion that same year. Former Microsoft CEO Steve Ballmer bought the Los Angeles Clippers in 2014 for $2 billion.

News: Apple eyes the TikTok generation with an updated version of Clips

Apple is today rolling out an update to its video creation app, Clips, which brings much-needed support for vertical videos, allowing for sharing to TikTok and the “Stories” feature in other social apps. The addition is one of several arriving with the release of Clips 3.0, which also introduces support for horizontal video, as well

Apple is today rolling out an update to its video creation app, Clips, which brings much-needed support for vertical videos, allowing for sharing to TikTok and the “Stories” feature in other social apps. The addition is one of several arriving with the release of Clips 3.0, which also introduces support for horizontal video, as well as HDR for iPhone 12 users, along with other smaller changes, like new stickers, sounds and posters, for example.

Apple’s Clips was first launched in 2017 with an eye on being a first stop for video creation before publishing to Instagram. But the app’s support for only square-formatted video has since become outdated. Casual social videos today are often now published to newer video-centric social media networks, like TikTok and its short-form rivals, including Triller, Dubsmash, Instagram Reels, and others.

Meanwhile, Stories — like those found on Instagram, Facebook, Snapchat, Pinterest and soon, Twitter — have become a key way that today’s users publish content to social media.

Apple, in fact, says that support for vertical video had become its No. 1 request from users since Clips launched.

Clips 3.0 introduces supports both 16:9 and 4:3 aspect ratios, in addition to the square format. When the app is opened on iPad, it will default to the landscape format, which can be particularly useful in educational scenarios where teachers are using the app in the classrooms with students.

On iPad, Clips users can also interact with the app when their iPad is in a case, like Magic Keyboard for iPad and others. It also supports use with a mouse or trackpad, and allowing users to write text in text fields using Apple Pencil.

Image Credits: Apple

The new app will also now support recording HDR video footage with the rear-facing camera on iPhone 12 and iPhone 12 Pro.

Clips’ overall user interface has been refreshed, too. You’ll notice a redesigned record screen that floats on top of the viewer when shooting vertically or horizontally, which could help to address some user complaints of the app feeling “slow.”

Users will also be able to more easily view and access the various Effects options, their Clips Projects and other media.

The tweaks to the user interface also feel a bit like a nod to TikTok. For example, you can now swipe up on the Effects to see a full-height card that shows you the available stickers and text labels to add to your videos. This format of a pop-up card filled with effects is similar to TikTok — though there it’s opened with a button tap and not a gesture.

Image Credits: Apple

The update also brings more content options, including 8 new social stickers (like “Sound On” for Instagram Stories), 24 new royalty-free soundtracks (bringing the total library to 100), and 6 new arrows and shapes. From the new Media browser in Clips, you can pull in your own photos and videos or toggle over to a Posters section to pick from 70 customizable, animated full-screen title cards that can be added to your video.

There are also updated filters, Live Titles and Selfie scenes available.

When your project is complete, you can easily share the resulting video to social networks from an updated sharing screen that includes quick access to destinations like Instagram, YouTube, TikTok, Twitter and Snapchat, in addition to standard options like iMessage or saving the file locally.

Though Clips hasn’t had as much attention as some of Apple’s other apps — its last update was 6 months ago, for instance — it has gained a following. Apple says that users create “millions” of Clips projects per day, and it sees higher usage in the U.S., U.K., and China.

This year, Clips usage increased by 30%, Apple noted — a change that could have been brought about by the shift to virtual schooling which saw teachers in need of tools for creating digital content.

Image Credits:

With its expanded focus on vertical video, Clips has the potential to reach a much broader audience.

Today, many users prep videos for Stories or TikTok on third-party apps, like InShot, Prequel, Splice, PicCollage, Canva, VSCO, Funimate, KineMaster, Magisto, CapCut and others topping the App Store charts. But Clips, until now, couldn’t compete because it didn’t include vertical video support at all.

The new version of Clips is rolling out today to users worldwide.

News: Robust.AI raises a $15M Series A to improve problem solving for collaborative robots

Robust.AI today announced that it has raised a $15 million Series A, led by Jazz Venture Partners. Existing partners Playground Global, Liquid2, Fontinalis, Jaan Tallinn and Mark Leslie also participated in the round, which brings the Bay Area-based robotics AI startup’s funding up to $22.5 million. Founded mid-2019, the company counts Rodney Brooks among its

Robust.AI today announced that it has raised a $15 million Series A, led by Jazz Venture Partners. Existing partners Playground Global, Liquid2, Fontinalis, Jaan Tallinn and Mark Leslie also participated in the round, which brings the Bay Area-based robotics AI startup’s funding up to $22.5 million.

Founded mid-2019, the company counts Rodney Brooks among its C-level executives. The iRobot co-founder serves as the startup’s CTO, following the unexpected closure of the promising (but financially untenable) Rethink, which gave the world the Baxter and Sawyer robots. (Fellow iRobot co-founder Helen Greiner also notably landed at a new venture in recent months). CEO Gary Marcus, meanwhile, is also the co-founder of Geometric Intelligence, which was acquired by Uber, back in 2016.

At the core of Robust.AI are plans to build “the world’s first industrial-grade cognitive engine for robots,” essentially providing collaborative robots sufficient problem-solving capacity to effectively work alongside humans.

The company is still quite new, but many robotics and automation investments have seemingly been fast-tracked by a pandemic that has hamstrung much of the human workforce. Robust’s stated mission is to overhaul the software stack that runs many of these machines, in order to to make them function better in often complex environments.

“Finding market fit is as important in robots and AI systems as any other product,” Brooks said in a statement. “We are building something we believe most robotics companies will find irresistible, taking solutions from single-purpose tools that today function in defined environments, to highly useful systems that can work within our world and all its intricacies.”

News: Microsoft announces its first Azure data center region in Taiwan

After announcing its latest data center region in Austria earlier this month and an expansion of its footprint in Brazil, Microsoft today unveiled its plans to open a new region in Taiwan. This new region will augment its existing presence in East Asia, where the company already runs data centers in China (operated by 21Vianet), Hong

After announcing its latest data center region in Austria earlier this month and an expansion of its footprint in Brazil, Microsoft today unveiled its plans to open a new region in Taiwan. This new region will augment its existing presence in East Asia, where the company already runs data centers in China (operated by 21Vianet), Hong Kong, Japan and Korea. This new region will bring Microsoft’s total presence around the world to 66 cloud regions.

Similar to its recent expansion in Brazil, Microsoft also pledged to provide digital skilling for over 200,000 people in Taiwan by 2024 and it is growing its Taiwan Azure Hardware Systems and Infrastructure engineering group, too. That’s in addition to investments in its IoT and AI research efforts in Taiwan and the startup accelerator it runs there.

“Our new investment in Taiwan reflects our faith in its strong heritage of hardware and software integration,” said Jean-Phillippe Courtois, Executive Vice President and President, Microsoft Global Sales, Marketing and Operations. “With Taiwan’s expertise in hardware manufacturing and the new datacenter region, we look forward to greater transformation, advancing what is possible with 5G, AI and IoT capabilities spanning the intelligent cloud and intelligent edge.”

Image Credits: Microsoft

The new region will offer access to the core Microsoft Azure services. Support for Microsoft 365, Dynamics 365 and Power Platform. That’s pretty much Microsoft’s playbook for launching all of its new regions these days. Like virtually all of Microsoft’s new data center region, this one will also offer multiple availability zones.

News: Hebbia wants to make Ctrl-F (or Command-F) actually useful through better AI

Deep learning has made tremendous strides in recent years, with new systems and models like GPT-3 offering higher quality interpretations of human language, empowering developers to use these concepts in more diverse applications. We can see these developments in our text-to-speech voice recorders and dual language translation apps, which have gotten shockingly good these days.

Deep learning has made tremendous strides in recent years, with new systems and models like GPT-3 offering higher quality interpretations of human language, empowering developers to use these concepts in more diverse applications. We can see these developments in our text-to-speech voice recorders and dual language translation apps, which have gotten shockingly good these days.

But what is the next wave of functionality that this AI infrastructure can empower? Hebbia wants to find out.

Hebbia today is a startup but really a product studio, a sort of sketchpad for AI ideas founded by George Sivulka, a PhD student from Stanford (currently on leave) and a mélange of three other Stanford AI researchers and engineers. The group, using the new deep learning techniques and models available today, is trying to push the boundaries of what knowledge graphs, semantic analysis, and AI can ultimately do for human productivity.

Sivulka was inspired to focus on this domain from witnessing his friends’ experiences working in the knowledge economy. “A lot of my peers … everyone goes into these white-collar jobs where they’re sitting down and just reading immense quantities of information all day,” Sivulka said. “People become banking analysts and dig through SEC forms for one or two lines of information, or go to law school or become legal analysts and do the same thing… [They’re] just bogged down by these walls of text, by this like avalanche of information that is impossible to make sense of.”

(Tell me about it).

What he and his team want to do is supercharge human productivity by building search, analysis, and summarization tools that can help you make sense of your own, personal universe of knowledge. “The idea is that Hebbia is building these productivity tools for thought that augment the way that you do work. They’re things that actually control the information input and outputs that you have to deal with every day,” Sivulka said.

It’s an ambitious vision, so they had to start somewhere. Their first product, which is what got me excited about the vision, is a Chrome plugin that’s been in private beta and is being released to the world today. The plugin upgrades the search functionality in Chrome to go beyond mere text pattern matching to begin to comprehend what your query actually is and how it might be answered given the text on a page. Here’s a demo of the plugin on TechCrunch:

Hebbia’s Ctrl-F product on TechCrunch. Photo via Hebbia.

So, for instance, you could Ctrl-F on a Wikipedia page and ask “Where did this person live?” and the plugin can determine that you are asking for locations and begin to highlight text on that page with relevant information. It’s AI, and pretty beta AI at that, so of course, your experience can and will be inconsistent right now. But as Hebbia tunes its models and improves its understanding of text, the hope is that browser search can be completely transformed and become a massive productivity boost.

Sivulka is something of an early wunderkind. He worked at NASA as a teenager, and graduated from his bachelor’s at Stanford in 2.5 years, finishing his master’s a bit more than a year later, and started a PhD before getting waylaid by Hebbia.

Hebbia’s vision has already attracted the notice of VCs in just its early months. Ann Miura-Ko at Floodgate led a $1.1 million pre-seed round that was joined by Naval Ravikant, Peter Thiel, Kevin Hartz Michael Fertik and Cory Levy.

Sivulka notes that their Ctrl-F product is the main focus for the company right now, and acts as a sort of gateway into the larger potential that knowledge graphs and personal productivity offer. “This is one of the final frontiers of what computers can do,” Sivulka said, noting that computation has already revolutionized many fields by digitizing data and making it easier to process. With Ctrl-F, “this is a baseline technology, [we’re] just scratching the surface of what we can do with this.”

News: Jackery’s solar generator system helps you collect and store more than enough juice for off-grid essentials

Portable power is a very convenient thing to have on hand, as proven by the popularity of pocket power banks for providing backup energy for smartphones and tablets. Jackery’s lineup of battery backups offer an entirely different, much greater level of portable energy storage, and when combined with the company’s durable and portable solar panels,

Portable power is a very convenient thing to have on hand, as proven by the popularity of pocket power banks for providing backup energy for smartphones and tablets. Jackery’s lineup of battery backups offer an entirely different, much greater level of portable energy storage, and when combined with the company’s durable and portable solar panels, they add up to an impressive mobile solar power generation solution that can offer a little piece of mind at home for when the power goes out, or a lot of flexibility on the road for day trips, camping excursions and more.

The basics

Jackery sells the Explorer 1000 Portable Power Station and SolarSaga 100W Solar Panels I reviewed separately, but it also bundles them together in a pack ($1,599.97) with the power station and two of the panels in a ‘Solar Generator’ combo, which is what I tested. The Portable Power Station retails for $999.99, though it’s the top of the line offering and there are more affordable models with less capacity. The station itself offers a 1002Wh internal lithium battery, and 1000W rated power with 2000W surge power rating. IT has two USB-C outputs, one standard USB, one DC port like you’d find in your car dash, and three standard AC outlets. It has an integrated handle, a tough plastic exterior and a built-in LCD display for information including battery charge status and output info.

The Explorer 1000, on a full charge, can provide up to 100 chargers for your standard iPhone, or up to 8 charges of a MacBook Pro. It can power an electric grill for 50 minutes, or a mini fridge for up to 66 hours. It can be recharged via a wall outlet (fully charges in 7 hours) or a car outlet (14 hours), but it can also be paired up with the 2x SolarSaga panels for a full recharge in around 8 hours of direct sun exposure – almost as fast as you’d charge it plugging git into an outlet at home (it takes double the time, or around 17 hours, when using just one).

As for the solar panels, they each retail for $299.99, and fold in half for greater portability, and feature integrated pockets and stands for cable storage and easy setup anywhere. Each ways less than 10 lbs, and they offer both USB-C and USB-A direct output for charging up devices without any battery or power station required. It’s worth noting that they’re not waterproof, however, so you should exercise some caution when using them in inclement weather.

Image Credits: Jackery

Design and features

The Jackery Portable Power Station is a perfect blend of portability, practicality and durability. Its internal powerhouse will keep you going for days in terms of mobile device power, and it weighs only a relatively portable 22 lbs, despite packing in a massive battery. The range of output options built-in mean you can connect to just about any electronically-powered device you can think of, and three AC outlets mean you can power multiple appliances at once if you want to spend your juice on running a lightweight outdoor kitchen – albeit not for a super long time at that kind of power draw.

Jackery’s Explorer series features durable and attractive (insofar as any utility device is ever that attractive) exterior impact-resistant plastic housings, and they definitely feel like they don’t need to be treated with kid gloves. The display is legible and clear, and provides all the info you need at-glance in terms of reserve power, and power expenditure for connected devices, as well as charging info when plugged in.

The many charging options are also super convenient, and that’s where the SolarSaga 100W panes come in. These fold up to roughly the size of a folding camp side table, and have integrated handles for even easier carrying. They’re also protected outside by a tough polycarbonate shell, and the panels are resistant to high temperatures for max durability. They come with included output converter cables for connecting to USB A and USB C devices, and can be used with the adapter included with the Power Station to charge that either in tandem with one another, or on their own.

Around back you’ll find an adjustable kickstands, which allow you to angle the panels towards the sun across a range of positions for maximum energy absorption. Between these and the Explorer power stations, you have everything you need to set up your own fully mobile solar energy power generation station in just a few minutes and with minimal effort.

Image Credits: Jackery

Bottom line

In actual use, the Jackery Explorer 1000 Portable Power Station provides so much backup power that it was hard to expend it all through general testing. You really do have to plug alliances like my Blendtec blender in to make a dent, and even then I got roughly 12 hours of usage or more out of it. This is a great solution for taking some selective on-grid equipment off-grid while on camping trips, like a TV, small fridge or a projector, and it’s an amazing thing to have at home just in case of power outages, where having your own backup options can make the difference between getting through a productive workday or staying in touch with family.

The SolarSaga panels are an amazing complement to the Explorer, and truly turn this into your own mini green energy power generation station. Even if you’re not convinced on the expense and necessity of converting your home to solar power, using something like Tesla’s Powerwall, for instance, this is a nice way to power a cooler in the backyard effectively for ‘free’ when it comes to energy costs, or to extend the useful life of the Explorer on trips when you’re away from the grid over the course of multiple days.

News: How is the Air Force looking to spend its $60 billion R&D budget?

Dr. Will Roper, the man in charge of the purse strings for the Air Force’s $60 billion research and development and acquisition budget, oversees some 550 programs for the Air Force. It’s a huge responsibility that has massive implications for the future of the American military, and as the priorities for the military’s air and

Dr. Will Roper, the man in charge of the purse strings for the Air Force’s $60 billion research and development and acquisition budget, oversees some 550 programs for the Air Force.

It’s a huge responsibility that has massive implications for the future of the American military, and as the priorities for the military’s air and space command shift, Roper says that acquisitions will require an emphasis on working “at a pace that today’s technology, trends and threats require.”

The keys to the future of Air Force acquisitions will be agility and flexibility, Roper told an audience last month at the Air Force Association 2020 Virtual Air, Space and Cyber Conference, according to an Air Force report. “If you look at the world in which we live today, we must be agile,” Roper told the audience. “There are too many possible futures for us to pick one and build a force that’s geared to defeat it.”

That sentiment should give developers of new technologies $60 billion worth of reasons to pay attention when Roper joins us at TechCrunch’s Sessions: Space event this December 16-17.

Roper has placed an emphasis on what he calls digital engineering to create internal manufacturing capabilities within the Department of Defense and develop new defensive capabilities and offensive weaponry for a 21st century battlefield.

As the Assistant Secretary of the Air Force for Acquisition, Technology and Logistics — and principal adviser to the Secretary and Chief of Staff of the Air Force for R&D, test, production and modernization efforts within the Air Force — Roper has a view into where the military is racing ahead to meet the challenges of the battlefield of the next millennium.

In Roper’s view that could encompass the presence of weaponized artificial intelligence, persistent drones, or even genetically edited bioweapons or human augmentation, he told his virtual audience in that September presentation.

For Roper, the first order of business is to find a way to get the military innovating faster than consumer technologies — a task made that much more complicated by the lack of bureaucratic constraints private companies enjoy compared to their military counterparts.

“The last area that we have to have strategic agility is in being able to computerize or virtualize everything about our development and production, assembly, even sustainment of systems, so that we can finally get past the tyranny of the real world and take learning and feedback into the digital one,” Roper said in his September address.

The Air Force is already turning to digital-first design with its eSeries of hardware, which has already notched a huge win with the design, assemblage and testing of its Next Generation Air Dominance aircraft — designed to replace the FA-18 Hornet.

Roper comes to his position in the Air Force after what has already been a long and storied career in the military. He previously served as the founding director in the Pentagon’s Strategic Capabilities Office. First created in 2012, the SCO was designed to imagine new applications for existing government and commercial systems. During his tenure, Roper. grew the budget of the SCO from $50 million to $1.5 billion.

Under the program Roper developed new concepts like hypervelocity artillery, multi-purpose missiles, autonomous fast-boats, smartphone-navigating weapons, big-data-enabled sensing, 3-D printed systems, fighter avatars, and fighter-dispersed swarming micro-drones.

The breadth of Roper’s vision about the capabilities that the U.S. will need to compete in a 21st century combat scenario will likely be one of the subjects we discuss — as well as the role Roper sees for startups in developing those technologies.

Those contributions could come through participation in programs like AFVentures, which paid out nearly $800 million to companies for programs like the Air Force’s flying car program, as well as the nation’s space launch program.

“This is how we provide our forces the capabilities they’ll need to win on the unpredictable, rapidly evolving innovation battlefield in this century by fundamentally changing how we build and acquire systems and with whom we build them, so that no matter what our adversaries do in the future, we will have the agility to overmatch and win,” Roper told his audience in September. “Then we will innovate faster, we will adapt quicker and ultimately stay ahead to disrupt and win.”

To hear Roper’s thoughts on the future of the Air Force’s technological innovations, you can grab a ticket to get exclusive access to watch this session (along with many others) live (with access to video on demand), network with the innovators changing the space industry, discover the hottest early-stage companies, learn how to score grants for your space company, recruit talent or even find a job.

Get an early-bird ticket for just $125 until November 13. And we have discounts available for groupsstudentsactive military/government employees and for early-stage space startup founders who want to give their startup some extra visibility.

News: As venture capital rebounds, what’s going on with venture debt?

The American venture capital world has staged an impressive comeback from the early months of the COVID-19 pandemic. For a moment, there was worry that startups would struggle to raise for quarters, leading to layoffs, slowed hiring and budget cuts. But as the pandemic accelerated plans to shift operations online, many startups wound up more

The American venture capital world has staged an impressive comeback from the early months of the COVID-19 pandemic. For a moment, there was worry that startups would struggle to raise for quarters, leading to layoffs, slowed hiring and budget cuts.

But as the pandemic accelerated plans to shift operations online, many startups wound up more popular than expected. Those tailwinds helped the venture capital world get back into its own game in a big way, leading to Q3 being an outsized quarter for domestic venture capital activity.


The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.

Today, in a first, we have two editions of The Exchange for you. Get hype.


As The Exchange reported last week, “How much money was raised by U.S.-based startups in Q3 2020? $36.5 billion, according to CBInsights, $37.8 billion according to PitchBook. [The former data provider] calls the number a seven-quarter high, up 22% from the Q3 2019 number and 30% from the Q2 2020 result.”

This lends itself to a question: What’s up with venture debt during all of this?

Venture debt, in various forms, is a type of capital provided to startups that may or may not have raised equity-based funds, like venture capital. One variety comes from institutions like Silicon Valley Bank, which might provide a growing startup with well-known backers an additional fraction of its last raise in debt, allowing the young company to take on more total capital than it otherwise might without greater dilution.

Other forms of venture debt, like revenue-based financing, share startup income streams to repay borrowings. And there are other, more exotic forms of the capital source.

I’ve been curious about the space for a few quarters now. So, when some survey data on the venture debt market from Runway Growth Capital came in, I started collecting my notes into a single entry.

Venture debt has a place in today’s market, but while venture capital is back to setting records, it appears that its less-known sibling won’t manage to match its last few years’ worth of results, according to new PitchBook data. Let’s talk about it.

Venture debt in 2020

Runway Growth is a venture debt player that did $41.5 million in “funded loans” in Q3 2020, it told TechCrunch. That’s for your own reference. Its new survey of 493 entrepreneurs who had raised venture capital, and 50 providers of startup capital from the VC and lending worlds, noted that 60% of founders felt that “venture debt has become more founder-friendly,” which you might think would imply that more venture debt was being used, overall.

That was my read, at least.

From the same survey, two related data points explain why venture debt has a place in the market: 86% of providers felt that “venture debt was key to extend the company’s runway to reach an important milestone,” while just over a quarter of founders agreed. Regardless of who is right on that point, venture debt has seen impressive growth in recent years.

Via PitchBook, here are updated venture debt metrics for the United States through 2019:

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