Yearly Archives: 2020

News: Equity Monday: Billion-dollar deals, JetBrain’s epic profitability, and our favorite new VC rounds

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines. This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds, and mulls over a larger theme or narrative from the private markets. You

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines.

This is Equity Monday, our weekly kickoff that tracks the latest private market news, talks about the coming week, digs into some recent funding rounds, and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here and myself here — and don’t forget to check out our latest main episode, which spent a good bit of time talking about OnlyFans.

The weekend was busy, as always, so there was a lot of chew over this morning. Here’s a partial list:

Closing, here’s the Owen Thomas piece that I mentioned at the very end of the show.

Equity drops every Monday at 7:00 a.m. PST and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

News: NextMind’s Dev Kit for mind controlled-computing offers a rare ‘wow’ factor in tech

NextMind debuted its Dev Kit hardware at CES last year, but the hardware is now actually shipping out, and the startup shared with me the production version to take a test drive. The NextMind controller is a sensor that reads electrical signals from your brain’s visual cortex, and translates those into input signals for a

NextMind debuted its Dev Kit hardware at CES last year, but the hardware is now actually shipping out, and the startup shared with me the production version to take a test drive. The NextMind controller is a sensor that reads electrical signals from your brain’s visual cortex, and translates those into input signals for a connected PC. A lot of companies have developed novel input solutions that use either eye-tracking or electrical impulse input from the body, but NextMind’s is the first I’ve tried that worked instantly and wonderfully, providing a truly amazing experience of a kind that’s hard to find in the current world of relatively mature computing paradigms.

The basics

NextMind’s developer kit is just that – a product aimed at developers that’s meant to give them everything they need to get building software that works with NextMind’s hardware and APIs. It includes the NextMind sensor which works with a range of headgear including simple straps, Oculus VR headsets, and even baseball hats, along with the software and SDK required to make it work on your PC.

Image Credits: NextMind

The package that NextMind provided me included the sensor, a fabric headband, a Surface PC with the engine pre-installed, and a USB gamepad for use with one of the company’s pre-build software demos.

The sensor itself is lightweight, and can operate for up to eight hours continuously on a single charge. It can charge via USB-C, and its software is compatible with both Mac and PC, along with Oculus, HTC Vive and also Microsoft’s HoloLens.

Design and features

The NextMind sensor itself is surprisingly small and light – it fits in the palm of your hand, with two arms that extend slightly beyond that. It features an integrated clip mount that can be used to attach it to just about anything to secure it to your head. In terms of fit, you just need to ensure that the 9 sets of two-pronged electrode sensors make contact with your skin, which NextMind provides instructions on doing by essentially making sure it straps snugly to your head, and then ‘combing’ the device slightly (moving it up and down to get your hair out of the way).

It wears comfortably, though you will notice the electrodes pressing into your skin, especially over longer use periods. The ability to use a standard baseball cap with the clip makes it super convenient to install and wear, and it worked with the Oculus Rift and Oculus Quest headstraps easily and instantly, too.

Image Credits: NextMind

Setup was a breeze. I was guided by NextMind’s co-creators, but the app provides clear instructions as well. There’s a calibration process during which you look at an animation being displayed on the host PC, which helps the sensor identify the specific signals that your occipital lobe is emitting when performing the target behaviour that you’ll later use to actually interact with NextMind-optimized software.

Here’s where it’s worth pausing to explain how NextMind is actually ‘reading your thoughts’: The sensor basically learns what it looks like when your brain is engaged in what the company calls “active, visual focus.” It does this using a common signal that it overlays on controllable elements of a software’s graphical user interface. That way, when you focus on a specific item, it can translate that into a ‘press’ action, or a ‘hold and move,’ or any other number of potential output results.

NextMind’s system is elegantly simple in conception, which is probably why it feels so powerful and rich in use. After the calibration process, I immediately jumped into the demos and was performing a range of actions effectively with my brain. First was media playback and window management on a desktop, and from there I moved on to composing music, entering a pin on a number pad, and playing multiple games, including a platformer where my mind control was supplementing my physical input on a USB gamepad to create a whole new level of fun and complex gameplay that wouldn’t be possible otherwise.

This is a Dev Kit, so the included software is just a small sampling of what could be possible with NextMind eventually, now that developers are able to build their own. What’s amazing is that the included samples are breathtaking on their own, providing an overall experience that is mind-bending in all the best possible ways. Imagining a future where NextMind hardware is even smaller and a seamless part of an overall computing experience that also includes traditional input is tantalizing, indeed.

Bottom line

NextMind’s Dev Kit is definitely just that – a Dev Kit. It’s intended for developers who are going to use it to write their own software that will take advantage of this unique, safe and convenient form of brain-computer interface (BCI). The kit retails for 399.00 € (around $487 USD), and is now shipping. NextMind has plans to eventually consumerise the product, and to work with other OEMs as well on implementations, but for now, even in this state, it’s an awe-inspiring glimpse into what could well be the next major shift in our daily computing paradigm.

News: Holiday Sale: Save $10 on Extra Crunch membership

From now until January 3, TechCrunch readers can save $10 on annual Extra Crunch membership. Users outside the US will see a similar discount for the holiday sale, but it will be in a local currency.  You can claim the deal here. Extra Crunch helps you spot technology trends and opportunities, build better startups, get

From now until January 3, TechCrunch readers can save $10 on annual Extra Crunch membership. Users outside the US will see a similar discount for the holiday sale, but it will be in a local currency. 

You can claim the deal here.

Extra Crunch helps you spot technology trends and opportunities, build better startups, get ahead at your job and stay connected to a growing community of founders, investors and startup teams. It features thousands of articles, including weekly investor surveys, daily market analysis, deeply researched company profiles, and expert interviews on fundraising, growth, monetization and other work topics. 

You also can find answers to your burning questions about startups and investing through Extra Crunch Live, and stay informed with our members-only Extra Crunch newsletters. Other benefits include an improved TechCrunch.com experience, 20% off future TechCrunch events and savings on software services from AWS, Crunchbase and more.

Join our growing community of founders, investors and startup teams at a discounted rate here.

If you have questions about the sale or Extra Crunch membership, please contact our customer support team at extracrunch@techcrunch.com

News: After lockdowns boost gaming marketplace Eneba, it raises $8M from Practica and InReach

Eneba, a marketplace for gamers that sells games and other products, has raised a $8M round of funding from Practica Capital and InReach Ventures. The funding is described as a ‘combination’ of a Seed and Series A round. Also participating in the funding for the Lithuanian startup was FJ Labs and a group of Angel

Eneba, a marketplace for gamers that sells games and other products, has raised a $8M round of funding from Practica Capital and InReach Ventures. The funding is described as a ‘combination’ of a Seed and Series A round. Also participating in the funding for the Lithuanian startup was FJ Labs and a group of Angel investors including Mantas Mikuckas, COO of Vinted. The investment highlights once again the strength of the Baltics region as tech ecosystem, after Lithuania produced its first Unicorn in the shape of Vinted, and Estonia’s added Pipedrive to its unicorns list.

With the increased shift to digital entertainment during the pandemic, the startup has managed to garner much more US traffic. Launched in 2018 by two Lithuanian school friends, Vytis Uogintas and Žygimantas Mikšta, Eneba says it has attracted 26 million unique users because of its security features, ‘one-click to buy’ gamer experience and fingerprinting technology. The site also optimizes its localized gaming experiences to show locally trending gaming products. Eneba’s platform is designed to reduce risky transactions, simplifies the refunding process, and deals with fraud threats.

Co-founder and CMO, Žygimantas Mikšta said: “We had a lot of new users coming to Eneba during these uncertain times. While it was extremely satisfying to see our numbers increasing tenfold, there was a challenge to meet the demand. To better reflect our user numbers, we had to quickly expand our team to 130.”

Security has risen up the agenda in online gaming as virtual goods and services connected to games can be highly susceptible to fraud or theft. Although it competes with outlets like Amazon, eBay, and retailers like Gamestop, Game.co.uk, Eneba think they’ve found a better, tailored online pre/post-buying experience for gamers, while addressing the risk problems for sellers and buyers in the gaming world.

Donatas Keras, partner at Practica Capital said: “We are thrilled to be backing Vytis and Žygimantas. We’ve been impressed by their ability to execute at such speed as their company quickly scales, and to drive an incredible product with a unique value proposition for gamers.”

Co-founder of InReach Ventures, Roberto Bonanzinga, said: “In Europe we have a tradition of building successful companies in the gaming space. We are very excited to have discovered Eneba thanks to our AI platform when the company was unknown and under the radar. We have been extremely impressed by what the founders have been able to build in such a short amount of time.”

News: Thoma Bravo to acquire RealPage property management platform for $10.2B

The busy year in M&A continued this weekend when private equity firm Thoma Bravo announced it was acquiring RealPage for $10.2B. In RealPage, Thoma Bravo is getting a full-service property management platform with services like renter portals, site management, expense management and financial analysis for building and property owners. Orlando Bravo, Founder and a Managing

The busy year in M&A continued this weekend when private equity firm Thoma Bravo announced it was acquiring RealPage for $10.2B.

In RealPage, Thoma Bravo is getting a full-service property management platform with services like renter portals, site management, expense management and financial analysis for building and property owners. Orlando Bravo, Founder and a Managing Partner of Thoma Bravo sees a company that they can work with and build on its previous track record.

“RealPage’s industry leading platform is critical to the real estate ecosystem and has tremendous potential going forward,” Bravo said in a statement.

As for RealPage, company CEO Steve Winn, who will remain with the company, sees the deal as a big win for stock holders, while giving them the ability to keep investing in the product. “This will enhance our ability to focus on executing our long-term strategy and delivering even better products and services to our clients and partners,”  Winn said in a statement.

RealPage, which was founded in 1998 and went public in 2010, is a typical kind of mature platform that a private equity firm like Thoma Bravo is attracted to. It has a strong customer base with over 12,000 customers and respectable revenue, growing at a modest pace. In its most recent earnings statement, the company announced $298.1 million in revenue, up 17% year over year. That puts it on a run rate of over $1 billion.

Under the terms of the deal, Thoma Bravo will pay RealPage stockholders $88.75 in cash per share. That is a premium of more 30% over the $67.83 closing price on December 18th. The transaction is subject to standard regulatory review, and the RealPage board will have a 45-day “go shop” window to see if it can find a better price. Given the premium pricing on this deal, that isn’t likely, but it will have the opportunity to try.

News: OneTrust nabs $300M Series C on $5.1B valuation to expand privacy platform

OneTrust, the 4-year old privacy platform startup from the folks who brought you AirWatch (which was acquired by VMWare for $1.5B in 2014), announced a $300 million Series C on an impressive $5.1 billion valuation today. The company has attracted considerable attention from investors in a remarkably short time. It came out of the box

OneTrust, the 4-year old privacy platform startup from the folks who brought you AirWatch (which was acquired by VMWare for $1.5B in 2014), announced a $300 million Series C on an impressive $5.1 billion valuation today.

The company has attracted considerable attention from investors in a remarkably short time. It came out of the box with a $200 million Series A on a $1.3 billion valuation in July 2019. Those are not typical A round numbers, but this has never been a typical startup. The Series B was more of the same — $210 million on a $2.7 billion valuation this past February.

That brings us to today’s Series C. Consider that the company has almost doubled its valuation again, and has raised $710 million in a mere 18 months, some of it during a pandemic. TCV led today’s round joining existing investors Insight Partners and Coatue.

So what are they doing to attract all this cash? In a world where privacy laws like GDPR and CCPA are already in play with others are in the works in the U.S. and around the world, companies need to be sure they are compliant with local laws wherever they operate. That’s where OneTrust comes in.

“We help companies ensure that they can be trusted, and that they make sure that they’re compliant to all laws around privacy, trust and risk,” OneTrust Chairman Alan Dabbiere told me.

That involves a suite of products that the company has already built or acquired, moving very quickly to offer a privacy platform to cover all aspects of a customer’s privacy requirements including privacy management, discovery, third-party risk assessment, risk management, ethics and compliance and consent management.

The company has already attracted 7500 customers to the platform — and is adding1000 additional customers per quarter. Dabbiere says that the products are helping them be compliant without adding a lot of friction to the building or buying process. “The goal is that we don’t slow the process down, we speed it up. And there’s a new philosophy called privacy by design,” he said. That means building privacy transparency into products, while making sure they are compliant with all of the legal and regulatory requirements.

The startup hasn’t been shy about using its investments to buy pieces of the platform, having made five acquisitions already in just four years since it was founded. It already has 1500 employees and plans to add around 900 more in 2021.

As they build this workforce, Dabbiere says being based in a highly diverse city like Atlanta has helped in terms of building a diverse group of employees. “By finding the best employees and doing it in an area like Atlanta, we are finding the diversity comes naturally,” he said, adding, “We are thoughtful about it.” CEO Kabir Barday, also launched a diversity, equity and inclusion council internally this past summer in response to the Black Lives Matter movement happening in the Atlanta community and around the country.

OneTrust had relied heavily on trade shows before the pandemic hit. In fact, Dabbiere says that they attended as many as 700 a year. When that avenue closed as the pandemic hit, they initially lowered their revenue guidance, but as they moved to digital channels along with their customers, they found that revenue didn’t drop as they expected.

He says that OneTrust has money in the bank from its prior investments, but they had reasons for taking on more cash now anyway. “The number one reason for doing this was the currency of our stock. We needed to revalue it for employees, for acquisitions, and the next steps of our growth,” he said.

News: Lockheed Martin acquires rocket engine maker Aerojet Rocketdyne for $4.4Bn as Space heats up

Lockheed Martin (LM), the US’s largest defence contractor will acquire Aerojet Rocketdyne (AR), a rocket engine and missile manufacturer, for $4.4 billion including debt and net cash, giving the company a larger stake in space and hypersonic technology. The move comes amid the context of increasing competition in the Space and Defence industries. In a

Lockheed Martin (LM), the US’s largest defence contractor will acquire Aerojet Rocketdyne (AR), a rocket engine and missile manufacturer, for $4.4 billion including debt and net cash, giving the company a larger stake in space and hypersonic technology. The move comes amid the context of increasing competition in the Space and Defence industries.

In a news release, the company said the proposed acquisition adds substantial expertise in propulsion to Lockheed Martin’s portfolio and that Aerojet Rocketdyne’s technologies were already ‘key components’ of Lockheed’s supply chain. It already uses Aerojet Rocketdyne’s propulsion systems in its aeronautics, missiles and fire control offerings.

Aerojet Rocketdyne’s 2019 revenues were approximately $2 billion. The company, headquartered in El Segundo, California, has nearly 5,000 employees and was formed in 2013 when GenCorp’s Aerojet and Pratt & Whitney Rocketdyne were merged. The company produces solid rocket motors as well as tactical and strategic missiles for the Defense Department.

AR makes the RL10 rocket engine that powers the upper stage of United Launch Alliance’s Delta 4 and Atlas 5 launch vehicles, and also produces the RS-25 engines for NASA’s Space Launch System.

The company’s move comes as it attempts to increase its propulsion capabilities to compete with new entrants such as SpaceX and Blue Origin for space contracts with the U.S. government. Meanwhile, rival Raytheon Co. is preparing to combine with United Technologies Corp to create an aerospace-and-defense giant.

Lockheed CEO James Taiclet said in a statement: “Acquiring Aerojet Rocketdyne will preserve and strengthen an essential component of the domestic defense industrial base and reduce costs for our customers and the American taxpayer.”

Aerojet’s CEO Eileen Drake said: “As part of Lockheed Martin, we will bring our advanced technologies together with their substantial expertise and resources to accelerate our shared purpose: enabling the defense of our nation and space exploration.”

The acquisition is expected to close in the second half of 2021 but will be subject to the usual requirement for approvals by regulators and Aerojet Rocketdyne’s stockholders.

News: OnePlus’ latest concept phone changes color to ‘breathe’ with the user

Back in January, OnePlus showed off its first concept phone. The aptly (if plainly) named Concept One sported color-shifting glass, giving the effect of an “invisible camera” on the rear of the device. The concept wasn’t particularly useful — if anything it was a fun diversion from boring old phone updates. From that standpoint, the

Back in January, OnePlus showed off its first concept phone. The aptly (if plainly) named Concept One sported color-shifting glass, giving the effect of an “invisible camera” on the rear of the device. The concept wasn’t particularly useful — if anything it was a fun diversion from boring old phone updates.

From that standpoint, the OnePlus 8T Concept is more of the same. It’s not particularly useful as far as smartphone updates go — and more to the point, there’s absolutely zero guarantee this technology will ever make it onto an actual phone. Once again, the headlining technology has more to do with how the phone looks than how it actually functions.

The big thing here is something called ECMF, or Electronic Color, Material and Finish. Basically it’s a color-changing film that coats the phone. It has metal oxide, which activates when voltage is applied, changing the glass from dark blue to light silver.

Image Credits: OnePlus

OnePlus says, “Our designers took inspiration for these colors from the multi-hued flowing water in the hot springs of Pamukkale, Turkey. Nature has perfected many designs, and by drawing inspiration from Pamukkale and other natural elements, we can craft new interaction experiences that are more natural, intuitive, and effortless.”

As for the utility of such technologies, OnePlus suggests a coat that changes color to notify the user of incoming calls. Weirder still is a future that uses mmWave technology to capture a user’s breathing pattern, “enabling the color to change in sync and effectively making the phone a biofeedback device.”

As far as new phone features, this one is firmly in the “why not” column.

News: Indian court rejects retail giant Future Group’s plea against Amazon

An Indian court rejected Future Group’s plea that sought to prevent its partner Amazon from raising objections and interfering in the Indian retail giant’s $3.4 billion asset sale deal to Mukesh Ambani’s Reliance Industries, delivering a glimmer of hope to the American e-commerce firm that has invested more than $6.5 billion in the world’s second

An Indian court rejected Future Group’s plea that sought to prevent its partner Amazon from raising objections and interfering in the Indian retail giant’s $3.4 billion asset sale deal to Mukesh Ambani’s Reliance Industries, delivering a glimmer of hope to the American e-commerce firm that has invested more than $6.5 billion in the world’s second largest internet market.

Future Group was seeking an ad-interim injunction to restrain its partner Amazon from writing to regulators and other authorities to raise concerns over — and halt — the deal between the two Indian giants. The Delhi High Court ruled on Monday that Amazon cannot be barred from writing to regulators and authorities on account of “potentially irreparable damage.” The regulators will decide whether the deal should be approved in accordance with the law, the court said.

The ruling is the latest episode in the high-stake battle between partners Amazon and Future Group. Amazon bought 49% in one of Future’s unlisted firms last year in a deal that was valued at over $100 million. As part of that deal, Future could not have sold assets to rivals, Amazon said in court filings.

Things changed this year after the coronavirus pandemic starved the Indian firm of cash, Future Group chief executive and founder Kishore Biyani said at a recent virtual conference. In August, Future Group said that it had reached an agreement with Ambani’s Reliance Industries, which runs India’s largest retail chain, to sell its retail, wholesale, logistics, and warehousing businesses for $3.4 billion.

Months later, Amazon protested the deal by reaching an arbitrator in Singapore and asked the court to block the deal between the Indian retail giants. Amazon secured emergency relief from the arbitration court in Singapore in late October that temporarily halted Future Group from going ahead with the sale.

Until Monday, it remained unclear whether that ruling would hold any water in front of Indian courts. So much so that hours after the Singapore arbitration court announced its verdict, Future Group and Reliance said in a statement that will be going ahead with the deal “without any delay.”

Amazon had also reached out to the Competition Commission of India, the Indian watchdog, to block the deal. Competition Commission of India, however, approved the deal between the Indian firms. In earlier hearings, lawyers for Future Group likened Amazon’s effort to block Future Group’s deal to the East India Company, the British trading house whose arrival in India kicked off nearly 200 years of colonial rule.

At stake is India’s retail market that is estimated to balloon to $1.3 trillion by 2025, up from $700 billion last year, according to consultancy firm BCG and local trade group Retailers’ Association India. Online shopping accounts for about 3% of all retail in India.

Future Group and Amazon did not immediately respond to a request for comment.

This is a developing story. More details to follow…

News: SoftBank will reportedly file for a SPAC on Monday

SoftBank Investment Advisers may file as early as Monday to raise between $500 million and $600 million through an initial public offering of its first special purpose acquisition vehicle, reports Axios. SoftBank Investment Advisers manages the two Vision Funds and may continue leaning into SPACs, with two more reportedly in the works. Almost everything you

SoftBank Investment Advisers may file as early as Monday to raise between $500 million and $600 million through an initial public offering of its first special purpose acquisition vehicle, reports Axios.

SoftBank Investment Advisers manages the two Vision Funds and may continue leaning into SPACs, with two more reportedly in the works.

The conglomerate first revealed its SPAC plans in October when SoftBank Investment Advisers chief executive officer Rajeev Misra said he was planning a SPAC while speaking at the Milken Institute Global Conference. An SPAC would give the Vision Fund another way of investing in private companies, and also allow the public to invest in SoftBank’s portfolio picks.

SPACs are blank-check companies created for the purpose of merging or acquiring other companies, and have gained popularity this year as an alternative to traditional stock market debuts.

While this would be SoftBank’s first SPAC, one of its portfolio companies, real-estate platform OpenDoor, recently went public through an SPAC. Another one of its investments, Indonesian e-commerce giant Tokopedia, is also considering going public through a SPAC backed by Richard Li and Peter Thiel, after putting its IPO plans because of the pandemic.

TechCrunch has contacted SoftBank Investment Advisers for comment.

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