Yearly Archives: 2020

News: Snapdocs raises $60M to manage the mortgage process in the cloud

The US economy may be in a precarious state right now with a presidential election looming on the horizon and the country still in the grips of the coronavirus pandemic. But partly thanks to lower interest rates, the housing market continues to rise, and today a startup that has built technology to help it run

The US economy may be in a precarious state right now with a presidential election looming on the horizon and the country still in the grips of the coronavirus pandemic. But partly thanks to lower interest rates, the housing market continues to rise, and today a startup that has built technology to help it run more efficiently is announcing a major growth round of funding. 

Snapdocs, which is used by some 130,000 real estate professionals to digitally manage the mortgage process and other paperwork and stages related to buying a home, has raised $60 million in new equity funding on the heels of a few bullish months of business.

In August 2020 — a peak in home sales in the US, reaching their highest level in 14 years — the startup saw 170,000 home sales, totaling some $50 million in transactions, closed on its platform. This accounted for almost 15% of all deals done that month in the US. Snapdocs is now on track to close 1.5 million deals this year, double its 2019 volume.

On top of this, the startup’s platform is being used by more than 70% of settlement agents nationally, with customers including Bell Bank, LeaderOne Financial Corporation, Googain, Georgia United Credit Union among its customers.

The Series C is being led by YC Continuity (Snapdocs was part of Y Combinator’s Winter 2014 cohort), with existing investors Sequoia Capital, F-Prime Capital and Founders Fund, and new backers Lachy Groom (formerly of Stripe and now a prolific investor) and DocuSign, a strategic backer, also participating.

“Like us they are on a mission to defragment an ecosystem,” King said, referring to it as a “perfect complement” to Snapdocs’ own efforts.

Snapdocs is not talking about its valuation. Aaron King, the founder and CEO, said in an interview that he believes disclosing it is nothing more than “grandstanding” — which is interesting considering that the industry he focuses on, real estate, is all about public disclosures of valuation — but he noted that most of the $103 million that the startup has raised to date is still in the bank, which says something about the company’s overall financial health.

And for some further context, according to PitchBook data estimates, Snapdocs was valued at $200 million in its last round, in October 2019.

Snapdocs’ central premise is that buying a house requires not just a lot of paperwork but also a lot of different parties to be on the same page, so to speak, to set the wheels in motion and get a deal done. There is not just the mortgage (with its multiple parties) to settle; you also have real estate brokers and agents, the home sellers, inspectors and appraisers, the insurance company, the title company, and more — some 15 parties in all.

The complexity of all of them working together in a quick and efficient way often means the process of buying and selling a house can be long and costly. And that’s before the pandemic — with the problems associated with social distancing and remote working — hit us.

Snapdocs’ solution has been to build one platform in the cloud that helps to manage the documents needed by all of these different parties, providing access to data and the ability to flag or approve things remotely, to speed the process along. It also has built a number of features, using AI technology and analytics, to also help identify what might be potential issues early on and get them fixed.

King is not your typical tech startup entrepreneur. He began working in mortgages as a notary when he was still in high school — he’s effectively been in the industry for 23 years, he said — and his earliest startup efforts were focused on one aspect of the complexities that he knew first-hand: he saw an opportunity to lean on technology to get notarized signatures sorted out in a legal, orderly, and quicker way.

He then got deeper into identifying the possibilities of how tech could be used to improve the larger process, and that is how Snapdocs came into existence.

Given how big the real estate market is — it’s the largest asset class in the world, by many estimates — and how many other industries tech has “disrupted” over the years, it’s interesting that there have been so few attempting to solve it. One of the reasons, it seems, is that there hasn’t been enough of a crossover between tech experts and mortgage experts, and Snapdocs is a testament to the virtues of building a startup specifically around a hard problem that you happen to know really well.

“Most people have identified this as a tech problem, and a lot of the tech — such as e-signatures — has existed for 20 years, but the fragmentation of real estate is the issue,” he said. “We’re talking about a mass constellation of companies and workflow. But we’re obsessed about the workflow of all of these constituents.”

That’s a position that has both helped Snapdocs build its standing with the industry, as well as with investors.

“I’ve known the Snapdocs team for many years and have always been amazed by their focus and execution toward bringing each stakeholder in the mortgage process online,” said Anu Hariharan, partner at YC Continuity, in a statement. “In 2013, Snapdocs began as a notary marketplace before expanding horizontally to service title companies and, more recently, lenders. By connecting the numerous parties involved in a mortgage on a single platform, Snapdocs is quickly becoming the “operating system” for mortgage closings. Mortgages, much like commerce, will shift online, bringing improved efficiency and a far better customer experience to the outdated home-closing process.” Hariharan has real estate experience herself and is joining the board with this round.

There have been a number of companies taking new, tech-based approaches to the market to find new and faster ways of doing things, and to open up new kinds of value in the market.

Opendoor for example has rethought the whole process of selling and buying houses, taking on a role as a middleman in the process both to take on a lot of the harder work of fixing up a home, and handling all of the difficult stages in the sales process: it’s a role that has recently seen the company catapult to a valuation of $4.8 billion by way of a SPAC-based public listing. An interesting idea, King said, but still only accounting for a small sliver of house sales.

Others like Orchard, Reonomy, and Zumper have all also raised large rounds on the back of a lot of promise of the market continuing to grow and the opportunity to take part in that process through new approaches. It’s a sign that “safe as houses” still has a place in the market, even with all the other unknowns in play.

“Over the next 5 years the real estate industry will be completely digitized so a lot of companies are trying to figure out what their place are, and how to provide value,” King said.

News: Facebook, in a reversal, will now ban Holocaust denial content under its hate speech policy

Facebook this morning announced a significant change in how it approaches Holocaust denial content on its social network. For years, the company has been criticized for not taking down this extremely offensive form of content in favor of allowing free speech and distancing itself from taking on the responsibilities of a traditional publisher. Today, it’s

Facebook this morning announced a significant change in how it approaches Holocaust denial content on its social network. For years, the company has been criticized for not taking down this extremely offensive form of content in favor of allowing free speech and distancing itself from taking on the responsibilities of a traditional publisher. Today, it’s reversing that position, saying it will now update its hate speech policy to “prohibit any content that denies or distorts the Holocaust.”

The company said it made the decision amid a growing number of online hate speech attacks and is a part of Facebook’s newer efforts to fight the spread of hate speech across its platform.

“We have banned more than 250 white supremacist organizations and updated our policies to address militia groups and QAnon,” explained Facebook in an announcement. “We also routinely ban other individuals and organizations globally, and we took down 22.5 million pieces of hate speech from our platform in the second quarter of this year. Following a year of consultation with external experts, we recently banned anti-Semitic stereotypes about the collective power of Jews that often depicts them running the world or its major institutions,” the company said.

Facebook also shared some disturbing statistics representative of how its inaction on this front has impacted the world. It said that according to a recent survey of U.S. adults, ages 18-39, nearly a quarter said they believed the Holocaust was a myth, that it had been exaggerated or that they weren’t sure.

The company noted, too, that institutions focused on Holocaust research and remembrance, such as Yad Vashem have stressed that Holocaust education is a key component in combating anti-Semitism.

As many may recall, Facebook CEO Mark Zuckerberg once used Holocaust denial as an example of where he thought Facebook shouldn’t intervene with regard to what’s posted to its platform. In a 2018 Recode interview and related follow-up, he suggested that Holocaust denial was a wrong idea that he personally found “deeply offensive,” but said Facebook shouldn’t take that content down because “there are things that different people get wrong.”

The issue and its controversy, however, was not a new one to Facebook. Holocaust denial content has been a longstanding problem for the company — and one where many employees disagreed with Facebook’s stated position on the matter. Even back in 2009, Facebook had favored the protection of free speech, arguing that it outweighed the negative consequences.

In the years since, Facebook was found to not only allow Holocaust denial on its platform, to but to actively promote it. In a 2020 investigation by U.K.-based counter-extremist organisation Institute for Strategic Dialogue (ISD), Facebook search results would bring up suggestions for denial pages on Facebook. These would also recommend links to publishers who sold revisionist and denial literature, among other things.

This summer, ADL and other civil rights organizations, like the NAACP and Color of Change ran a month-long boycott of Facebook advertising in an effort to get Facebook to step up and do something about hate speech on its platform. The effort gained over 1,000 advertisers and put pressure on the company to make changes.

Facebook then moved to ban anti-Semitic conspiracy theories about Jewish people running the world across Facebook and Instagram for the first time, and began to ban QAnon, which has some anti-Semitic elements. But it stopped short of taking action on Holocaust denial.

The company says its new decision on this matter does not mean users see an immediate clearing of this sort of content from the platform.

“Enforcement of these policies cannot happen overnight. There is a range of content that can violate these policies, and it will take some time to train our reviewers and systems on enforcement,” Facebook noted.

 

 

News: Facebook EU-US data transfer complaint: Schrems gets a judicial review of the Irish DPC’s procedure

Another twist in a multi-year complaint saga related to the legality of Facebook’s data transfers: European privacy campaigner, Max Schrems, has today been granted a judicial review of the Irish regulator’s handling of his complaint. He’s expecting the hearing to take place before the end of the year — and is hoping the action will,

Another twist in a multi-year complaint saga related to the legality of Facebook’s data transfers: European privacy campaigner, Max Schrems, has today been granted a judicial review of the Irish regulator’s handling of his complaint.

He’s expecting the hearing to take place before the end of the year — and is hoping the action will, at long last, lead to a suspension of Facebook’s EU-US data transfers.

Schrems says his aim is to “kick start a ‘paused’ complaints procedure’” after Ireland’s Data Protection Commission (DPC) chose to open a new case procedure last month — simultaneously pausing its handling of his original complaint, which dates back some seven years at this point.

The vintage complaint had a major injection of attention following a ruling by Europe’s top court this summer which struck down a flagship EU-US data transfer arrangement (called Privacy Shield) — and cast doubt on the legality of alternative transfer mechanisms for taking EU citizens’ data to the US for processing when processors are subject to US surveillance law, as Facebook is.

Yet there’s still no decision on Schrems’ original complaint. Hence he’s returned to court.

“The DPC has already pledged to the Court in 2015 that it will swiftly decide. It seems like we need a clear judgment to force the DPC to do its job,” said Schrems in a statement today on the judicial review being granted.

#SchremsII: Irish High Court just granted leave to have a Juridical Review against the @DPCIreland — to kick start the “paused” complaints procedure that should stop Facebook’s EU-US data transfer (and clarifly crucial procedural issues)… 😃https://t.co/yMIyhonBaS

— Max Schrems 🇪🇺🇦🇹 (@maxschrems) October 12, 2020

Facebook has already successfully applied for a judicial review of a preliminary order sent by the DPC last month to suspend its data transfers to the US. The tech giant was granted a stay on that preliminary order so its data transfers continue unabated and uninterrupted — even as the regulatory process is mired in yet more legal wrangling.

The stay also bought Facebook more time to lobby EU lawmakers to ‘fix’ the legal uncertainty now firmly attached to EU-US data transfers — with VP Nick Clegg popping up on a livestreamed debate last month to predict economic doom for the region’s small businesses if Facebook gets forced to suspend transfers. (Clegg further claimed Facebook’s business of “personalized advertising” would be vital to Europe’s coronavirus economic recovery, without pointing out other, less invasive/rights-hostile forms of ad-targeting are available… )

It’s not hard to see why Schrems is so unhappy that his 2013 complaint has been turned into an endless game of regulatory whack-a-mole which leaves Facebook’s free to continue its data-mining business as usual.

 

In a press release put out by his privacy-focused not-for-profit, noyb, Schrems writes: “Today’s Judicial Review by noyb is in many ways the counterpart to Facebook’s Judicial Review: While Facebook wants to block the second procedure by the DPC, noyb wants to move the original complaints procedure towards a decision.”

“The DPC has opened a second case, just get rid of the complainant from the first case. Now this second case was stalled by a lawsuit from Facebook within weeks. This was complete procedural mismanagement by the Irish regulator. We are now trying to kick start the original procedure from 2013 to finally get a decision by the DPC after seven years and five court judgements that all confirmed our position,” he adds in the statement.

Schrems/noyb is also making a more pointed allegation against the regulator, saying it saw documents last week that suggest Facebook has been using alternative data transfer mechanisms to take EU users’ data to the US — and accusing the regulator of knowing about this since 2016, yet failing to pass the information on to it.

“The documents we received suggest that seven years of procedures and both references to the European Court of Justice were largely irrelevant for the case before the DPC,” writes Schrems, accusing the regulator of hiding  documents from the Courts and his lawyers “despite our right to be provided with all the files of a case”. “We are therefore asking the High Court to clarify that all documents must be put on the table that all parties are properly heard and a quick decision is then made,” he adds.

We reached out to the DPC with questions but the regulator declined to answer specific points at this stage. “As you can see Mr Schrems’ application to the Court this morning was made ex parte, meaning that any comments/arguments put forward were unchallenged. We will outline our position when we make our own submission to the Court,” deputy commissioner, Graham Doyle, told us.

Ireland’s regulator is no stranger to accusations of dragging its feet on enforcing the bloc’s data protection regime against major tech firms and platforms, many of whom have chosen to site their regional base in the country — meaning their data handling typically comes under the supervision of the DPC. (Which in turn means it has a huge backlog of complex, cross-border cases to investigate and issue decisions on.)

More than two years after the GDPR came into application, the DPC has only submitted one draft decision on cross-border cases (related to a Twitter security breach) — which is still pending agreement from the EU’s other data supervisors.

Scores more cases remain open on its desk.

In June, a Commission two-year review of GDPR flagged a lack of uniformly vigorous enforcement — with lawmakers acknowledging: “The best answer [to criticism of GDPR’s failure to regulate big tech] will be a decision from the Irish data protection authority about important cases.”

Separately, Irish parliamentarian, Malcolm Byrne, raised questions in the senate recently over another long-standing complaint that’s sitting on the DPC’s desk — related to Google and the real-time bidding process that’s involved in programmatic advertising — also still an open investigation.

Today, I raised the issue of Google’s #RealTimeBidding system and again how big tech is using our data. I highlighted the research by ⁦@johnnyryan⁩ for ⁦@ICCLtweet⁩ and again expressed concerns that Justice Minister ⁦@HMcEntee⁩ must prioritise the issue. pic.twitter.com/xzoLhjN9KS

— Malcolm Byrne (@malcolmbyrne) September 30, 2020

News: Quince launches out of beta with new ‘manufacturer-to-customer’ model

The retail landscape is shifting rapidly. While D2C brands have changed the way we shop, Quince is looking to change retail even more dramatically. The brand, which raised $8.5 million in seed funding last year (and only revealed as much today), is looking to rethink the supply chain with its own line of 700 items

The retail landscape is shifting rapidly. While D2C brands have changed the way we shop, Quince is looking to change retail even more dramatically.

The brand, which raised $8.5 million in seed funding last year (and only revealed as much today), is looking to rethink the supply chain with its own line of 700 items including men’s and women’s apparel, accessories, jewelry and home goods.

After beta testing for a year as ‘Last Brand,’ Quince is launching with a new model called ‘M2C,’ or manufacturer to consumer.

The idea is that Quince goes directly to factories with designs for essentials — not overly patterned or branded items — with an order that can dynamically adjust each week based on demand. As orders start coming in, Quince can work alongside manufacturers to ensure they aren’t over or under producing on a specific SKU. The factory then ships directly to the customer, rather than shipping to a distribution center or store and then again to the final destination.

You might think that factories wouldn’t be as amenable to this model, as they have little to lose when a brand overestimates demand for a SKU and doesn’t sell it through to the customer. But cofounder and CEO Sid Gupta says that this new model is being presented at a pivotal time in retail. Bigger brands, the ones that place orders for 100,000 units, are struggling during the pandemic and shrinking their SKU portfolio.

This leaves the factories with two options: turning to D2C brands or selling through a marketplace like Amazon.

“D2C demand is really fragmented, and most b2c companies are really sub-scale,” said Gupta. “It’s hard to get the efficiency gains out of it. The issue with selling on a marketplace, like Amazon, is you’ve got to compete with hundreds, if not thousands, of other sellers for the same exact good. If you’re a factory that actually makes high quality goods, and you pay your workers fairly, and you don’t damage the environment, your cost might be 3% or 5%, higher.”

He added that it’s difficult for a factory to have those factors shine through to the customer on Amazon, and more difficult still to learn how to play the advertising game.

This environment has made manufacturers slightly more open to a new way of doing things.

By working directly with factories, Quince says it’s able to bring the cost of luxury items down significantly, selling a cashmere sweater for approximately $50 instead of $150+, as you’ll often find with other brands. Quince works with more than 30 different factories across the world.

Cofounder and CEO Sid Gupta says the company has also thought very deeply about sustainability, setting standards around the materials used (are they organic or recycled?), the manufacturing process (is it ecologically sound?), worker pay, and more. The company is also looking into giveback programs to share in the profits with the factories and the workers.

The funding from last fall has allowed Quince to beta test last year and grow the team to 16, including cofounders Becky Mortimer and Sourabh Mahajan. Thirty-five percent of employees are female, and 65 percent of employees are minorities.

The company’s investors include Founders Fund, 8VC and Basis Set Ventures.

News: Nest launches its $129 thermostat with a new design, swipe and touch interface on the side

Google’s Nest unit today launched its newest thermostat. At $129, the Nest Thermostat is the company’s most affordable one yet, but it’s also the first to feature a new swipe and tap interface on its side, as well as Google’s Soli radar technology to sense room occupancy and when you are near the device. Soli,

Google’s Nest unit today launched its newest thermostat. At $129, the Nest Thermostat is the company’s most affordable one yet, but it’s also the first to feature a new swipe and tap interface on its side, as well as Google’s Soli radar technology to sense room occupancy and when you are near the device.

Soli, it is worth noting, is not being used for enabling gesture controls. Instead, because the design team wanted a solid mirror finish on the front, Nest decided to use it purely for motion sensing.

The new thermostat, which is made from 49 percent recycled plastic, will come in four colors, Snow, Charcoal, Sand and Fog. The company is also launching a $14.99 trim kit to help you hide any imperfections in your pain when you install the new thermostat.

Image Credits: Nest

“It has this inviting form with this intuitive swipe up and down control, which lets you interact with this product really naturally, instead of pressing these tiny little buttons that most traditional thermostats have,” Nest product lead Ruchi Desai told me.

It’s worth noting that this new version is mostly meant for users in smaller apartments or condos, as it doesn’t support Nest’s remote sensors. To get support for those, you’ll need a Nest Thermostat E (which can occasionally be found for around $139) or the fully-fledged Nest Learning Thermostat .

Talking about learning, among the feature the team is highlighting with this release is the thermostat’s ability to help you schedule your custom temperature settings for different times of the day — and different days. Nest calls this Quick Schedule.

“Unlike the Nest Learning Thermostat, which has the auto-schedule [feature], this one actually offers the ability to create temperature presets, which gives you the ability to set up a schedule based on your lifestyle, based on your preferences,” Desai said. “It will also give you the flexibility of holding temperatures, which means it’ll override the schedule that you have in times when you need the control and flexibility.”

Image Credits: Nest

That sounds a lot like what you’d find in most of today’s smart thermostats from the likes of Ecobee and other Nest competitors, but it’s a first for Nest.

With its Savings Finder feature, the thermostat can also look for small optimizations and suggest minor tweaks that can result in additional energy savings.

Thanks to the new built-in Soli radar chip, the device can automatically lower the temperature when you’re not home. It’s a shame the team isn’t using the chip for any gesture controls, something Google did with its Pixel 4 phone, but the team tells me that it decided not to do this because it didn’t fit the user profile.

“I think that was a very conscious decision we made while designing this product, because for this product we really have the user in mind and we really wanted to focus on the features that were really important to this user. And these are brand new to smart home, they really wanted app control — it seems so basic to us but it’s a massive upgrade for them, right. And all these energy-saving features that come with the thermostat were something that they valued a lot. So we wanted to focus on the features that these users valued for this product,” Desai explained.

Maybe we’ll see Nest do more with this technology in the next iterations of its more expensive thermostats. For now, it feels like a bit of a missed opportunity, though in all fairness, Soli in the Pixel 4 mostly felt like a gimmick and at least the Nest team is putting it to practical use here.

Image Credits: Nest

Like before, Nest promises that it will only take about half an hour or so to install the new thermostat. The app walks you through the individual steps, which should make the process pretty straightforward, assuming your heating and cooling system follows modern standards.

To control the thermostat remotely, you’ll use the Google Home app, where you’ll also find all of the smart features to help you save more energy.

The new thermostat is now available in the U.S. (for $129.99) and Canada (for $179.99 CAD). In Canada, the trim kit will retail for $19.99 CAD). As the team noted, between various utility rebates and rewards, a lot of users may be able to get theirs for only a few dollars, depending on where they live.

Image Credits: Nest

News: Equity Monday: Twilio buys Segment, and Airkit raises $28M for its low-code platform

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 big news, chats about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can

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 big news, chats 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 last Friday’s episode.

So, what was on our minds this morning?
  • Headlines: The Twilio-Segment deal is real, happening, and is priced about where we expected. Big names in the ex-China Internet want to make encryption worse. And, how the United States government would break up Google is becoming clearer by the week.
  • On the Twilio Segment deal, as TechCrunch and Forbes anticipated, the transaction came in around $3.2 billion, forming something of a API monster from their combined form. As we noted on the show, a lot of investors made a mint from the transaction.
  • Airkit has raised $28 million while in stealth since 2017. What does it do? Per Forbes, it’s a “low-code platform” that wants to “improve customer engagement.” That’s notably similar to what Segment does.
  • Flash Express raised $200 million, as the on-demand and delivery spaces stay hot.
  • And Razorpay raised $100 million at a valuation of $1 billion, meaning that we have just witnessed the birth of yet another fintech unicorn.
  • And, finally, warm public markets mean that the startup and VC game will stay afoot, even if we see a pre-election dip in IPOs.

We hope that you are well and warm and fully of good spirits. Back soon!

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

News: Twilio confirms it is buying Segment for $3.2B in an all-stock deal

Twilio today announced its biggest acquisition to date, spearheading a strong move into customer data management alongside its existing API-based tools for building and running customer communications services. Twilio is paying $3.2 billion “in Twilio Class A common stock, on a fully diluted and cash free, debt free basis” to acquire Segment, a marketing technology

Twilio today announced its biggest acquisition to date, spearheading a strong move into customer data management alongside its existing API-based tools for building and running customer communications services. Twilio is paying $3.2 billion “in Twilio Class A common stock, on a fully diluted and cash free, debt free basis” to acquire Segment, a marketing technology startup that lets organizations pull in customer data from one app into another, by way of APIs, and use its platform to better control the movement of that customer data.

The deal is expected to close in Q4 2020, and Segment will become a division of Twilio, the companies said.

The deal was first reported to be in the works on Friday. (FWIW we’d also gotten the same tip and had been investigating it when that story got published. Our sources had said that the deal was going to be between $3 billion and $4 billion, and announced possibly as soon as Monday.)

“Data silos destroy great customer experiences,” said Jeff Lawson, co-founder and CEO of Twilio, in a statement. “Segment lets developers and companies break down those silos and build a complete picture of their customer. Combined with Twilio’s Customer Engagement Platform, we can create more personalized, timely and impactful engagement across customer service, marketing, analytics, product and sales. We are thrilled to welcome Segment to the Twilio team.”

“Together, Twilio and Segment have an incredible opportunity to build the customer engagement platform of the future,” added Peter Reinhardt, Segment’s co-founder and CEO. “We created Segment to help businesses set themselves apart in the digital age and deliver rich, connected customer experiences built on high-quality data. By joining forces and applying our customer data platform to Twilio’s engagement cloud, we’ll be able to make the entire customer experience seamless from end-to-end.”

This is Twilio’s biggest acquisition since it picked up SendGrid for $2 billion to add email to its range of communications tools back in 2018. Segment was last valued at $1.5 billion at its last raise.

Acquiring Segment is a natural progression of how Twilio has evolved over the last decade.

Twilio first made its name as a startup in 2008 by providing an easy way for companies to integrate text and voice services into their apps. Using APIs and few lines of code, companies could tap into the fast-growing world of smartphone and app usage by putting the tools to communicate with their users directly into their apps.

Over time, those basic tools have taken more shape with a wider range of communications sources such as email and chatbots, and with a more focused set of applications aimed at different verticals using them, and more tools to enable and better manage customer relations.

Using acquisitions to build that part of the business is part of the company’s strategy. One source tells us that Twilio actually tried to acquire Intercom, the customer relations messaging service, back in 2014 and 2015. The companies could not agree on a price at the time, our source said. (Watch this space?)

These days, Twilio’s Solutions business is focused on applications in marketing, customer service and customer identity. All of these are big use cases for Segment, which has some 20,000 customers using its platform to “collect, clean and control” customer data.

Acquiring Segment could potentially bring a lot more customers to the Twilio platform, opening the door to upselling those customers with other services Twilio offers. And given Segment’s stated focus on providing better tools to handle customer data more responsibly, in an environment where awareness (and breaches of this area is only growing by the day, it gives Twilio a much stronger product set to speak to that need.

There are also some interesting synergies already. Not only are both built around the architecture of using APIs to integrate other services/port data from one place to another, but there’s an existing integration between the two, which may be getting used a lot already.

And as one source pointed out to us, there are already a lot of what the source referred to as “Xwilions” (ex-Twilio people) working at the smaller company.

They include CFO Sandy Smith, advisor Sandy O’Gorman, and CSO Colleen Coolidge, who has also hired a number of ex-Twilio engineers.

You might argue that customer service (the main idea of what Twilio has been building) and customer experience (Segment’s jam) are different things, but the two are connected: one of the big by-products of communications is data, and companies will be looking for better ways of linking up the creation of it, with the repurposing/use of it. In other words, the two complement each other.

News: China’s digital yuan tests leap forward in Shenzhen

Shenzhen, known for its maker community and manufacturing resources, is taking the lead in trialing China’s digital yuan. Last week, the city issued 10 million yuan worth of digital currency to 50,000 randomly selected residents. The government doled out the money through mobile “red envelopes,” a tool designed to digitize the custom of gifting money

Shenzhen, known for its maker community and manufacturing resources, is taking the lead in trialing China’s digital yuan.

Last week, the city issued 10 million yuan worth of digital currency to 50,000 randomly selected residents. The government doled out the money through mobile “red envelopes,” a tool designed to digitize the custom of gifting money in red packets and first popularized by WeChat’s e-wallet.

The digital yuan is not to be mistaken as a form of cryptocurrency. Rather, it is issued and managed by the central bank, serving as the statutory, digital version of China’s physical currency and giving Beijing a better grasp of its currency circulation. It’s meant to supplement, not replace, third-party payments apps like WeChat Pay and Alipay in a country where cash is dying out.

For example, the central government may in the future issue subsidies to local offices by sending digital yuan, which can help tackle issues like corruption.

Shenzhen is one of the four Chinese cities to begin internal testing of the digital yuan, announced a government notice in August without going into the specifics. The latest distribution to consumers is seen as the country’s first large-scale, public test of the centrally issued virtual currency.

Nearly 2 million individuals in Shenzhen signed up for the lottery, according to a post from the local government. Winners could redeem the 200 yuan red envelope within the official digital yuan app and spend the virtual money at over 3,000 retail outlets in the city.

As its next step, Shenzhen will launch a (vaguely defined) “fintech innovation platform” through its official digital currency institute, said a new central government document detailing the city’s five-year development measures, including attracting more foreign investment in cutting-edge technologies. The city will also play a key role in furthering the digital yuan’s research and development, application and international collaboration.

In April, the city’s digital currency vehicle launched a wave of recruiting for technical positions like mobile app architects and Android developers.

Shenzhen was established in 1980 as China’s first special economic zones and is now home to tech behemoths like Tencent, Huawei and DJI and innovation hubs like HAX and Trouble Maker. President Xi Jinping is scheduled to visit the city this week to commemorate the city’s 40th anniversary.

While the central bank provides logic and infrastructure undergirding the digital yuan, there’s much room for commercial banks and private firms to innovate on the application level. Both ride-hailing platform Didi and JD’s fintech arm have recently unveiled steps to help accelerate the digital yuan’s real-life implementation.

News: Thailand’s logistics startup Flash Express raises $200 million

Flash Express, a two-year-old logistics startup that works with e-commerce firms in Thailand, said on Monday it has raised $200 million in a new financing round as it looks to double down on a rapidly growing market spurred by demand due to the coronavirus pandemic. The funding, a Series D, was led by PTT Oil

Flash Express, a two-year-old logistics startup that works with e-commerce firms in Thailand, said on Monday it has raised $200 million in a new financing round as it looks to double down on a rapidly growing market spurred by demand due to the coronavirus pandemic.

The funding, a Series D, was led by PTT Oil and Retail Business Public Company Limited, the marquee oil and retail businesses of Thai conglomerate PTT. Durbell and Krungsri Finnovate, two other top conglomerates in the Southeast Asian country, also participated in the round, which brings Flash Express’ to-date raise to about $400 million.

Flash Express, which operates door-to-door pickup and delivery service, claims to be the second largest private player to operate in this space. The startup, which also counts Alibaba as an investor, entered the market with delivery fees as low as 60 cents per parcel, a move that allowed it to quickly win a significant market share.

The startup has also expanded aggressively in the past year. Flash Express had about 1,100 delivery points during this time last year. Now it has over 5,000, exceeding those of 138-year-old Thailand Post.

Flash Express currently delivers more than 1 million parcels a day, up from about 50,000 during the same time last year. The startup says it has also invested heavily in technology that has enabled it to handle over 100,000 parcels in a minute by fully automated sorting systems.

Komsan Lee, CEO of Flash Express, said the startup plans to deploy the fresh funds to introduce new services and expand to other Southeast Asian markets (names of which he did not identify). “We are also prepared to create and develop new technologies to achieve even greater delivery and logistics efficiency. More importantly we intend to assist SMEs in lowering their investment costs which we believe will provide long-term benefit for the overall Thai economy in the digital era,” he said.

Retail Business Public Company Limited plans to leverage Flash Express’ logistics network as it looks to meet the rising demand from consumers, said Rajsuda Rangsiyakull, Senior Executive Vice President for Corporate Strategy, Innovation and Sustainability at Retail Business Public Company Limited.

Flash Express competes with Best Express — which, like Flash, is also backed by Alibaba — and Kerry Express, which filed for an initial public offering in late August.

Even as online shopping and delivery has accelerated in recent months, some estimates suggest that the overall logistics market in Thailand will see its first contraction in the history this year. Chumpol Saichuer, president of the Thai Transportation and Logistics Association, said last month Thailand’s logistics business has already been hit hard by the slowing global economy.

News: The Otto Wilde Grill delivers the drama of delicious restaurant steak at home

Like many folks this year, I have been cooking a lot. Though I’ve always loved food and have had a deep and abiding interest for the art of cooking, I’ve definitely pushed myself to learn how to do a lot of things from scratch in the kitchen this year. From cooking a decent CTM to

Like many folks this year, I have been cooking a lot. Though I’ve always loved food and have had a deep and abiding interest for the art of cooking, I’ve definitely pushed myself to learn how to do a lot of things from scratch in the kitchen this year. From cooking a decent CTM to a respectable pie, I have hit a lot of my personal milestones over the past few months.

One of the unforeseen consequences of my culinarily driven efforts to stay sane during quarantine this year has been a foray into testing out purpose driven kitchen devices. Though not quite single use (and actually pretty versatile in their own way) devices like the Ooni pizza oven and the Otto Grill have found their way into my ad-hoc outdoor kitchen and I have had a pretty enjoyable time pushing and prodding on them while simultaneously upping my own cooking game.

Which leads me to this review of the Otto Wilde Grill.

What is it?

It’s a 16x17x11” self-contained propane broiler that features two top mounted burners that can reach temperatures of 1,500 degrees F. There is an adjustable grille and a catch pan for grease and a dual use arm that acts as a grille tool and a wrench to adjust the distance between the burners and your food.

It’s designed to cook steak that gets you as close to steakhouse taste and texture as possible. It does so by mimicking the kinds of top mounted broilers that you’ll find in many commercial kitchens.

I’m not going to bury the lede, this thing is $1,000. If you don’t have a G to drop on a cooking thing of any sort, then read on for entertainment and edification. If you DO have that much to spend (maybe) and are wondering why the hell you’d want to, and if you should I think I can deliver those things for you here.

But, why

After my Ooni review, Otto Wilde Grills reached out to see if I wanted to try out their over-fired broiler. I love steak, especially steak at the perfect temp with a restaurant-style carmelized crust. I’ve been able to get decent results over the years with my standard grill and a cast iron skillet — and more recently have been very happy with the sous vide bath + skillet method.

But there is just something about the somewhat violent, crispy, high heat broiler style finish that you get at a steakhouse that I have not been able to duplicate at home. 

Very specifically, the reason that a steakhouse steak hits your table with a carmel crust and nicely distributed interior juice is something called the Maillard reaction. Maillard reactions are different than caramelization, which is basically the heat driven decomposition of sugar. Instead, it is the breakdown and combination of sugars and amino acids. It happens during cooking in many foods but is most important in great tasting meat and bread. It begins to occur in most foods above around 280 °F or so but even higher temperatures can emphasize the resulting effects to the point where you get this deliciously beautiful light brown crust that adds a crunch and even slight sweetness to your foods, especially meats. 

The trick of at home Maillard reactions in steak is how to activate and sustain the process long enough to create the desired result while simultaneously not over-cooking your meat. 

A note: I am reviewing the Otto grill several years after it was initially released (though they do have a new ‘Pro’ model with a really handy drawer and a whole grill system hitting the market). But when they offered to send me one I went and checked out the reviews that were out there. Gonna be honest, even the ‘good’ reviews are pretty poorly done. Either they are done on YouTube by clear grillmasters that assume people know a lot about grilling and don’t really explain much beyond running a steak or two through the grill or they are on…ahem…other sites where they quite clearly have no idea what they are doing. Don’t get me started on the results in some of those reviews. I can’t even. I’m not going to blow up anyone’s spot specifically here, but as a bit of meta I can just say that the current state of food appliance reviews is really, really bad. I think a lot of people do pretty decent jobs reviewing, say, phones or game consoles. Not so much in the kitchen.

Anyway, over-fired broilers are extremely common in commercial kitchens, where ‘infrared’ heat (basically high heat gas shot through pinholes in a ceramic sheet) and radiant heat are primary options. The Otto Grill is an infrared style OFB, which means that it can get to high heat extremely quickly (about 3-5 minutes to 1,500 degrees) and that it cooks VERY fast because most of the heat goes right to the meat. 

Fast, high heat cooking means quicker crust, less gas waste and most importantly, juicier steaks that have less time to dry out. 

A quick how-to

One of the things that I found surprising when I started researching the Otto was that there are very few direct examples of how to cook a steak with it. To that end, here is my basic process for most steaks. Prior to beginning any of this I salt my steaks generously with a nice sea salt. I do not use anything else personally and I would say beware of any rubs with pepper or other ingredients because they can burn quickly in an oven as hot as the Otto.

  1. Fill the water tray halfway. This prevents grease fires and makes cleanup better, as well as introducing a bit of moisture to the cooking environment. 
  2. Pre-heat the Otto at full power. This takes as little as 3 minutes and no longer than 5 from zero to 1,500 degrees. 
  3. Remove the grille and place the steak(s) onto it oriented so that they are covered by one or both burners. 
  4. Pop it back in and use the adjustment lever to move them within about a half inch of the bottom edge of the flame at the top. You should see a roiling, sizzling field of flame turbulence just above the top surface of the meat. 
  5. Cook for around 60 seconds to 90 seconds. 
  6. Lower, remove, and flip end over end to sear the other side. 
  7. Raise, and cook for another 60-90 seconds. 
  8. At this point, if your steak is 1” thick or under and you are ok with medium rare, you are likely done. Remove it and check the temp with a meat thermometer to see if it is at your desired temp.
  9. If it is a thicker cut, reduce the heat to ¾ on both burners and drop the grill to the bottom position. Rotate every 2 minutes and periodically check the meat temp (I do it out of the oven because it’s so hot in there) until you hit desired done levels.
  10. Remove the meat to rest, turn off the Otto and let cool somewhat to clean the tray and grille.

This method has enabled me to cook thinner cuts in as little as 3-5 minutes. Larger cuts may require careful rotation and positioning. 

Steak results

I have cooked a lot of steaks on the Otto over the last couple of months. I’ve done ribeye, sirloin, filet mignon, hangar and T-bone

I cooked a wide variety of cuts at a number of different levels of marbling. The fattier cuts obviously benefited much more from the Otto’s high-temp cooking. The way that it absolutely pulverizes fat allows it to crust perfectly across the surface without creating a dry, crumbly texture. Instead it’s crispy and moist at the same time. 

Also, because it’s a top firing burner, the fat seeps downward, through the meat instead of outwards. The resulting exterior is super delicious and produces a nearly perfectly sized rind every time, leaving a to-temp interior. 

It took me a few steaks to get the methodology above down. I burned a few, for sure. This thing is crazy hot and the times involved are hard to wrap your head around at first. But once you have your rhythm, the Otto Grill cooks an insanely tasty steak from nearly any cut or quality of meat. Otto sent me a few frozen steaks to try, but I’ve mostly cooked my own meat purchased locally, which was much better. But even thawed meat was treated pretty well by this grill, the crust makes up for a lot when you’re working with so-so meat. 

For those of you that know steak, you may be wondering whether it is good at grassfed beef. Yes! It’s actually super killer for grassfed because the high, high heat makes the sear happen super fast, locking in the juice which is at a big premium in leaner grassfed cuts. Grassfed suffers with long cook times, which you won’t find in the Otto. You can cook a very nicely juicy medium rare grassfed cut here.

One major comparison that I think many people who might be in the market to buy this thing will be interested in is how it stacks up against the very popular sous-vide + cast iron sear method also referred to as reverse searing. Cooking your steak in a water bath to achieve precise interior temp and then searing it for crust and flavor has become uber popular for at home cooks in recent years due to the wide availability of consumer grade immersion circulators. 

Sous-vide + sear on left, Otto Grill on right

I’ll say this as simply as possible: I think you can get extremely similar results with sous vide + cast iron, with some pretty straightforward caveats. 

  • Your cast iron has to be super hot. I’m talking 2,000 BTUs and up of gas burner hot. You need that high, hot heat to get that sear to lock in your juices and render your fat quickly. 
  • You’re searing it from the bottom by contact rather than the top by proximity, which means that fat will have a tendency to boil away and you need to continuously circulate your juices using butter or another oil. 
  • Smoke and spatter. You’re going to generate plenty of both on a skillet. 

Sous-vide + sear on left, Otto Grill on right

If you’re really used to reverse searing and you love your results, I still do think there are a couple of areas where the Otto can up your game a bit, but the general taste and satisfaction will be in the ballpark. One thing I did try which worked out well is a tri-tip — a huge cut that is popular in California that would not do well normally here. I did a sous-vide bath + reverse sear in the Otto and those turned out really lovely. 

I liked the Otto’s more delineated rind that creates that nice flavor seal along the interior edge of your cut of meat. I also think that it can be very easy to over cook thin steaks while searing if you can’t get your skillet super hot. 

The biggest overall benefit of course, is time. If you write off the resting time to bring your meat to room temp, which is passive cooking time, then you’re looking at anywhere from 1-3 hours to sous vide a thick cut steak. The Otto heats in 3 minutes and cooks in anywhere from 5-10 minutes. It’s a huge time savings for equal or better results.

One design consideration worth mentioning is that because there are two burners with a dead space in between, you must shift larger cuts to allow them to sear evenly if they span two burners. I wouldn’t call it a flaw as it is definitely pushing it to shove a wall-to-wall steak in there. I would love to see future versions of the oven reduce the space between the burners in order to allow more coverage for bigger steaks. This is a non factor if your steak fits under one burner, and most do in general. 

The catch pan, by the way, is pretty instrumental. Filling it with water reduces the chances that your fat will catch on fire, burning portions of your steak, and it makes cleaning up super easy as you can sluice out the still warm grease water and then brush it clean. I will note, at the risk of some ribbing, that I forgot to put some water in the pan once and may have added some…decorative smoke work to my grill’s face. Cook outdoors.

Pizza

Otto says you can make pizza in this thing too — and they even make a stone and peel. Well, you can, but I’d say how enthusiastic you get about it is going to sort of depend on what your standards for pizza are. 

The pizzas that I made in the Otto with the stone are, uh, they’re fine I guess. It’s absolutely, totally possible to do a little personal-sized pizza in the Otto, especially if you par bake the crust. But anything you do in here is going to pale next to the Ooni. I’d actually much rather just gin a up a little pan pizza that you can do in your regular home oven. There are a lot of reasons to buy the Otto, but pizza should not be a primary one, in my opinion.

I did cook a beautiful batch of naan in it though which was lovely. It’s basically common sense. Anything in the flatbread family is going to do wonderful here, but stuff with toppings needs to be par baked because it’s so damn hot.

Other stuff

Can you cook other stuff in the Otto? Yeah, 100%. Basically anything you can throw in a cast iron pan and sear up will do well in the Otto. Examples I’ve tried include peppers and onions, fruit and veg medleys and crispy potatoes drizzled in oil. Because the cast iron gets nice and evenly hot and you have a top broiler it makes for an ideal searing environment. It is hot as hell even at the lower settings though, so you need to keep an eye on it. 

Should you buy it?

Otto Wilde likely have their own ideas about the target market for their grills but for me it’s: has disposable income, loves steak enough to eat it 3x a week and already owns at least one or two other specialty grilling items. Basically, Big Green Egg owners. While something like a BGE is amazing at low and slow and smoking, it takes a hell of a lot to stoke and maintain the heat you’d need to get a caramelizing sear and in the end your steak would definitely be dryer. 

The Otto Grill is basically the consumerized version of a commercial kitchen staple item. Could you buy something like a Salamander for like $1,300? Sure, but at that point you’re a commercial kitchen and you’re gonna need a natural gas plumb and probably a business license. Just rent a strip mall slot or a food truck. 

Overall I found the design to be thoughtful, straightforward and reliable. Though I did have some ignition issues as described earlier, this is frank German engineering at its most utility-driven. The Otto Grill is expensive, but does precisely perform the task that it claims to make possible. I have cooked steaks by many different methods over the years and as I mentioned above, some of them are absolute stand-bys because they are really close to restaurant methodology. But for steakhouse style crust delivered absolutely consistently with the minimum of time and effort, the Otto Grill stands alone.

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