Monthly Archives: February 2021

News: Gridware is building early-detection sensors for power grid failures and wildfires

Like corporate financial accounting, the power grid never draws headlines when things are going well. No journalist writes “The power remains on,” or discusses the extensive work it takes to maintain the grid. Instead, it takes a record-breaking ice wave to knock out power to one of the largest states in America for it to

Like corporate financial accounting, the power grid never draws headlines when things are going well. No journalist writes “The power remains on,” or discusses the extensive work it takes to maintain the grid. Instead, it takes a record-breaking ice wave to knock out power to one of the largest states in America for it to start garnering front-page coverage, or perhaps massive wildfires in America’s most populous state like the Camp Fire in California in 2018.

Power grids are going to be in the news more and more in the coming years as global climate change intensifies storm activity and grids come under increasingly harsh strain. As my colleague Jon Shieber wrote yesterday, “Whether it’s heavily regulated markets like California or a free market like Texas, current policy can’t stop the weather from wreaking havoc and putting people’s lives at risk.” The grid is at the center of one of the toughest challenges facing us this century.

What’s needed are better sensors and tech for identifying the source of outages — and also preventing them in the first place. With millions of power poles and hundreds of thousands of miles of transmission wires scattered across the United States, how can utilities reliably verify the quality of their systems? How can they do that in an efficient way to avoid rate increases on users?

Gridware, which is in the current batch of Y Combinator, is one company taking a shot at this critical need. Its approach is to use a small, sensor-laden box that can be installed to a power pole with just four screws. Gridware’s package contains microphones and other sensors to sense the ambient environment around a power pole, and it uses on-board AI/ML processing to listen for anomalies and report them to the relevant managers as appropriate.

It’s like “a guard standing next to the pole, listening to it, watching over it,” Tim Barat, CEO and co-founder, said, likening the box to a FitBit for a power pole. When a tree branch breaks and cuts through a line, there’s “no way to detect them unless you are right next to the fault.” With Gridware, it’s “not the right place at the right time but the right place all the time,” he said.

What makes the founding team compelling here is the backgrounds of some of the company’s founders. Barat worked as a power pole worker himself in the field, evaluating equipment and searching for problems. “Every time we go up a pole, we hit it with a hammer, which tells us whether there is termite damage, etc. [… and] that is still how inspectors investigate a pole,” he noted.

Barat eventually migrated to University of California, Berkeley, where he was mentored by Prabal Dutta, an electrical engineering professor who also joined the company early on as a co-founder. Dutta’s worked has focused on “industrial cyber-physical systems,” and he continues to research industrial control systems through digital interfaces via the iCyPhy center.

Gridware’s team clockwise from top left: Tim Barat, Abdulrahman Bin Omar, Dr. Prabal Dutta, Addison Chan, Riley Lyman, and Hall Chen. Photo via Gridware.

Barat also met Abdulrahman Bin Omar, who had worked for a number of years in the energy sector, in a class that eventually had a one-week hiatus due to California wildfires. The two began working together in 2019, joining Berkeley’s startup incubator Citrus Foundry in 2020. The trio eventually linked up with co-founders Hall Chen and Riley Lyman as well, and snagged a $150,000 state grant from the California Energy Commission via the CalSEED program.

Today, the startup has seven employees, and it’s currently in talks with utility grids of all sizes about deploying its product. Grids can be very slow to adopt new technology with very long testing and sales cycles, but there might just be an opportunity for the company to accelerate those normal timelines given the extensive and visible power outages we have witnessed the past few years. We need to “transition our grid to face the challenges of the new century,” Barat said.

News: Google to roll out slate of over 50 updates for Classroom, Meet and other online education tools

Google today introduced a suite of updates for its online education tools whose adoption and further development have been accelerated by the pandemic, including Google Classroom, Google Meet and the next generation of G Suite for Education, now rebranded as Google Workspace for Education. In total, Google is promising more than 50 new features across

Google today introduced a suite of updates for its online education tools whose adoption and further development have been accelerated by the pandemic, including Google Classroom, Google Meet and the next generation of G Suite for Education, now rebranded as Google Workspace for Education. In total, Google is promising more than 50 new features across its education products, with a focus on meeting educators’ and admins’ needs, in particular, in addition to those of the students.

When Google first introduced Google Classroom, it didn’t set out to create a Learning Management System (LMS), the company says. But during the COVID-19 pandemic, Google found that many educators had begun to use Classroom as the “hub” for their online learning activities. Today, the service is used by over 150 million students, teachers and school admins, up from just 40 million last year.

As a result of the pandemic-prompted adoption and user feedback, Google is introducing a range of new features for Classroom this year, some of which will be made available sooner than others.

To better cater to those who are using Classroom as the hub for online learning, a new marketplace of Classroom “add-ons” will allow teachers later this year to select their favorite edtech tools and content and assign them directly to students, without requiring extra log-ins. Admins will also be able to install these add-ons for other teachers in their domains.

Also later this year, admins will be able to populate classes in advance with Student Information System (SIS) roster syncing and, for select SIS customers, students’ grades from Classroom will be able to be exported directly to the SIS. Additional logging, including Classroom audit logs (to see things like student removals or who archived a class), as well as Classroom activity logs (to check on adoption and engagement) will be available soon.

When students attend in-person school, teachers can easily notice when a student is falling behind. A new set of Classroom tools aims to do the same for virtual learning, as well. With the new student engagement tracking feature, teachers will be able to see relevant stats about how students are interacting with Classroom, like which students submitted assignments on a given day or commented on a post, for example.

Image Credits: Google

Other tools will tackle the realities of working from home, where internet connections aren’t always reliable, or — for some low-income students — not available at all. With an updated Classroom Android app, students will be able to start their work offline, review assignments, open Drive attachments and write in Google Docs without an internet connection. The work will sync when a connection is again available. And when students upload assignments by taking a photo, new tools will allow students to combine photos into a single document, crop and rotate images and adjust the lighting.

Classroom will also gain support for rich text formatting — like bold, italics, underline and adding bullets across web, iOS and Android.

Image Credits: Google

Originality reports, which help to detect plagiarism, will be available soon in 15 languages, including English, Spanish, Portuguese, Norwegian, Swedish, French, Italian, Indonesian, Japanese, Finnish, German, Korean, Danish, Malaysian and Hindi.

And Google’s own free, introductory computer science curriculum, CS First, is immediately available in Classroom.

Beyond Classroom itself, Google Meet is also being updated with the needs of educators in mind.

One must-have new feature, rolling out over the next few weeks, is a “mute all” button to give control of the classroom back to teachers. In April, teachers will also be able to control when a student can unmute themselves, as well.

Image Credits: Google

Other moderation controls will roll out this year, too, including controls over who can join meetings, chat or share their screen from their iOS and Android devices. Policies over who can join video calls will be able to be set by admins in April, as well, enabling rules around student-to-student connections across districts, professional development opportunities for teachers, external speakers visiting a class and more. Students will also not be able to join Meets generated from Classroom until their teacher has arrived. Teachers, meanwhile, will be made meeting hosts so multiple teachers can share the load of managing classes.

Google Meet is adding engagement and inclusivity features for students, too. Students will be able to select emoji skin tones to represent them and react in class with emoji, which teachers will be able to control.

Image Credits: Google

Finally, Google’s “G Suite for Education,” which includes Classroom, Meet, Gmail, Calendar, Drive, Docs, Sheets, Slides and more, will be rebranded as Google Workspace for Education. The tools themselves, now used by 170 million students and educators globally, won’t change. But the set will be available in four editions instead of just two to better accommodate a wider variety of needs.

The free version will be rebranded Google Workspace for Education Fundamentals, and will remain largely the same. The paid version, meanwhile, will become available in three tiers: Google Workspace for Education Standard and Google Workspace for Education Plus, as well as the Teaching and Learning Upgrade, which can be added on to Fundamentals or Standard to provide video communication in Google Meet, and other Classroom tools, like originality reports.

Standard has everything in Fundamentals, in addition to enhanced security through Security Center, audit logs and advanced mobile management. Plus has everything in the three other versions, as well as advanced security and analytics, teaching and learning capabilities, and more.

Fundamentals and Plus are available today and the others will go live April 14, 2021. Those who already have G Suite for Enterprise for Education will be upgraded to Education Plus.

Related to these changes, the storage model will be updated to a new, pooled storage option that aims to better allocate storage resources across educational institutions. The new model offers schools and universities a baseline of 100 TB of pooled storage shared by all users, which goes into effect for current customers in July 2022, and will be effective for new customers in 2022. Google says less than 1% of institutions will be impacted by the updated model, whose baseline supports over 100 million documents or 8 million presentations or 400,000 hours of video, to give an idea of size.

The company plans several updates for its Google Workspace for Education product line in the weeks to come, including saved drafts in Google Forms (in Fundamentals) Google Meet meeting transcripts (in the Teaching and Learning Upgrade) and more.

Outside of software product updates, Google is launching over 40 new Chromebooks, including a set of “Always Connected” branded devices that have an LTE connectivity option built in. Chrome’s screen reader, ChromeVox, has also been improved with new tutorials, the ability to search ChromeVox menus and voice switching that automatically changes the screen reader’s voice based on the language of the text.

Parents, who are now participating in their child’s online learning in a number of ways, will be able to add their child’s Google Workspace for Education account to their child’s personal account with Family Link — Google’s parental control software. That means kids can still log into their school apps and accounts, while parents ensure they stay focused on learning by restricting other apps and overall device usage.

News: YC-backed Taste brings multi-course fine dining into your home

Jeff Chen has a pithy pitch for his new startup Taste: “We made the Instagram of nice food.” In other words, just as Instagram made it easy for regular smartphone users to look like talented photographers, Taste makes it easy for customers to prepare impressive meals at home. That’s because the real preparation is being

Jeff Chen has a pithy pitch for his new startup Taste: “We made the Instagram of nice food.”

In other words, just as Instagram made it easy for regular smartphone users to look like talented photographers, Taste makes it easy for customers to prepare impressive meals at home.

That’s because the real preparation is being done by fine-dining restaurants — Chen told me there are 16 Michelin-starred and Michelin-rated restaurants currently on the platform — whose food doesn’t translate easily to a delivery or takeout experience. Taste offers “dinner kits,” which Chen said are neither standard takeout (where everything has been fully prepared but doesn’t necessarily travel well) or a regular meal kit (where “everything is separate and raw”).

Instead, he suggested Taste’s dinner kits are “this in-between thing” where the food is mostly, but not entirely, prepared in advance, allowing customers to “heat and assemble much faster.”

Taste screenshot

Image Credits: Taste

For example, when I tried out Taste last week, my girlfriend and I received three-course meals from Intersect by Lexus and its “restaurant in residence” The Grey. A couple of the (delicious) courses and sides had to be heated in the oven or the microwave for five, 10 or 20 minutes, but there was no real prep or cooking required — the real work was cleaning up afterwards.

Even the packaging was impressive (if a little overwhelming), with a large, fancy box for each kit, and then individual packages for each course, plus a separate package for spices. There are optional wine pairings, and some restaurants will also provide plating instructions and a Spotify playlist for the meal.

Taste — which is part of the winter 2021 batch of startups at Y Combinator — is currently New York City-only, where it works with restaurants including Dirt Candy, Meadowsweet and the Musket Room. As you might expect, these kits cost more than your standard dinner delivery. Many of them are in the $60-to-$100 per person range, although there are also dinners below $40, as well as a la carte options.

Chen (who sold his last startup Joyride to Google) said that he and his co-founder Daryl Sew have been excited to help New York City chefs reinvent their offerings for delivery and weather the pandemic.

Taste founders Daryl Sew, Jeff Chen

Taste founders Daryl Sew and Jeff Chen

“We also do a very key thing, which is pre-ordering and batching for the restaurant,” he added. “When a restaurant works with Taste, all the orders come in two days before to the restaurant, and we pick it up at designated times, which helps tremendously with capacity lift.”

And while Taste might seem particularly appealing now, when indoor fine dining options are either illegal, unsafe or transformed by social distancing and mask-wearing, Chen anticipates healthy demand even after the pandemic. After all, he suggested that before COVID-19, there were many people — busy parents, for example, or people who work long hours — who felt like they couldn’t take advantage of these restaurants as often as they wanted, or at all.

“Everything is getting moved into the home,” he said. “Movies are getting moved into the home with Netflix, workouts are getting moved into the home with Peloton and Tonal, and now we’re going to move nice dining experiences into the home.”

News: Facebook restricts users in Australia from sharing or viewing news links

Australian Facebook users will be forced to go elsewhere to read news after the company announced Wednesday that they will be restricting users in the country from sharing or viewing news links on the platform. The drastic move follows debate on proposed legislation from the Australian government that seeks to push internet platforms — with

Australian Facebook users will be forced to go elsewhere to read news after the company announced Wednesday that they will be restricting users in the country from sharing or viewing news links on the platform. The drastic move follows debate on proposed legislation from the Australian government that seeks to push internet platforms — with a particular focus on advertising giants Facebook and Google — to pay news publishers directly for access to share their content.

Pulling back entirely was a nuclear option for Facebook which had previously floated the possibility. In a blog post, the company sought to minimize the material impact of the decision to Facebook’s bottom line, while emphasizing what the move will cost users in Australia and around the globe. The company disclosed that just 4% of the content in Australian users’ feeds was news, though the platform did not break out other engagement metrics tied to news consumption.

In their post, Facebook sought to drive a distinction between how news content was shared on Facebook by users while content is algorithmically curated by Google inside their search product. “Google Search is inextricably intertwined with news and publishers do not voluntarily provide their content,” William Easton, Facebook’s managing director for the region, wrote. “On the other hand, publishers willingly choose to post news on Facebook, as it allows them to sell more subscriptions, grow their audiences and increase advertising revenue.”

Google has already begun working with publishers to drive lump sum payments so that they continue to surface news content in the country, striking a deal Wednesday with Rupert Murdoch’s News Corp, despite their own earlier threats to shut down in Australia. Facebook’s action has ramifications for global users outside Australia who will be unable to share links on the platform to news publications based in the country.

This legislation is an aggressive example of regional legislation having the potential to drive global change for how internet platforms continue to operate. It’s clear that plenty of other countries are watching this saga play out. Facebook taking a hard line approach while Google seeks to strike private deals to stay active showcases different approaches from very different platforms being forced to reckon with how they operate in the future.

News: Jamaica’s immigration website exposed thousands of travelers’ data

A security lapse by a Jamaican government contractor has exposed immigration records and COVID-19 test results for hundreds of thousands of travelers who visited the island over the past year. The Jamaican government contracted Amber Group to build the JamCOVID19 website and app, which the government uses to publish daily coronavirus figures and allows residents

A security lapse by a Jamaican government contractor has exposed immigration records and COVID-19 test results for hundreds of thousands of travelers who visited the island over the past year.

The Jamaican government contracted Amber Group to build the JamCOVID19 website and app, which the government uses to publish daily coronavirus figures and allows residents to self-report their symptoms. The contractor also built the website to pre-approve travel applications to visit the island during the pandemic, a process that requires travelers to upload a negative COVID-19 test result before they board their flight if they come from high-risk countries, including the United States.

But a cloud storage server storing those uploaded documents was left unprotected and without a password, and was publicly spilling out files onto the open web.

Many of the victims whose information was found on the exposed server are Americans.

The data is now secure after TechCrunch contacted Amber Group’s chief executive Dushyant Savadia, who did not comment when reached prior to publication.

The storage server, hosted on Amazon Web Services, was set to public. It’s not known for how long the data was unprotected, but contained more than 70,000 negative COVID-19 lab results, over 425,000 immigration documents authorizing travel to the island — which included the traveler’s name, date of birth and passport numbers — and over 250,000 quarantine orders dating back to June 2020, when Jamaica reopened its borders to visitors after the pandemic’s first wave. The server also contained more than 440,000 images of travelers’ signatures.

Two U.S. travelers whose lab results were among the exposed data told TechCrunch that they uploaded their COVID-19 results through the Visit Jamaica website before their travel. Once lab results are processed, travelers receive a travel authorization that they must present before boarding their flight.

Both of these documents, as well as quarantine orders that require visitors to shelter in place and several passports, were on the exposed storage server.

Travelers who are staying outside Jamaica’s so-called “resilient corridor,” a zone that covers a large portion of the island’s population, are told to install the app built by Amber Group that tracks their location and is tracked by the Ministry of Health to ensure visitors stay within the corridor. The app also requires that travelers record short “check-in” videos with a daily code sent by the government, along with their name and any symptoms.

The server exposed more than 1.1 million of those daily updating check-in videos.

An airport information flyer given to travelers arriving in Jamaica. Travelers may be required to install the JamCOVID19 app to allow the government to monitor their location and to require video check-ins. (Image: Jamaican government)

The server also contained dozens of daily timestamped spreadsheets named “PICA,” likely for the Jamaican passport, immigration and citizenship agency, but these were restricted by access permissions. But the permissions on the storage server were set so that anyone had full control of the files inside, such as allowing them to be downloaded or deleted altogether. (TechCrunch did neither, as doing so would be unlawful.)

Stephen Davidson, a spokesperson for the Jamaican Ministry of Health, did not comment when reached, or say if the government planned to inform travelers of the security lapse.

Savadia founded Amber Group in 2015 and soon launched its vehicle-tracking system, Amber Connect.

According to one report, Amber’s Savadia said the company developed JamCOVID19 “within three days” and made it available to the Jamaican government in large part for free. The contractor is billing other countries, including Grenada and the British Virgin Islands, for similar implementations, and is said to be looking for other government customers outside the Caribbean.

Savadia would not say what measures his company put in place to protect the data of paying governments.

Jamaica has recorded at least 19,300 coronavirus cases on the island to date, and more than 370 deaths.


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News: Join Fuel Capital’s Leah Solivan at TC Early Stage and hear how to avoid early founder mistakes

When you’re just starting out building your company, there’s obviously a lot that can go wrong. Especially if you’re a first-time founder (but even if you’re an experienced serial entrepreneur), it can be hard to spot the potential pitfalls that might lead you astray before you even really get rolling. That’s why we’re thrilled to

When you’re just starting out building your company, there’s obviously a lot that can go wrong. Especially if you’re a first-time founder (but even if you’re an experienced serial entrepreneur), it can be hard to spot the potential pitfalls that might lead you astray before you even really get rolling. That’s why we’re thrilled to have Fuel Capital General Partner Leah Solivan joining us at TechCrunch Early Stage – Operations and Fundraising on April 1 & 2 for a discussion about how to avoid making some of the biggest mistakes early in your founding journey.

Solivan brings her keen insight as an early-stage investor who has invested in and helped many early-stage companies spanning consumer tech, marketplaces, hardware and retail — but also her eight years of experience leading TaskRabbit, the startup she founded and led to a successful exit when it was acquired by IKEA in 2017. Between her time as an operator building a successful business and raising more than $50 million in venture funding, and her nearly four years investing and helping other founders build companies with Fuel, Solivan has unparalleled perspective on how to avoid common company-building problems early on.

Fuel CapitalGeneral Partner Leah Solivan. Image Credits: Meg Messina

At TC Early Stage this year, our two-day virtual event focused on entrepreneurs turning their startup dreams into reality, we’re focusing on both operations and fundraising, with a variety of top speakers ranging from investors, to accelerator managers, to subject-matter experts in key roles that startups need to invest in early on. The fully virtual event will include not only virtual panel discussions and interviews like our chat with Solivan, but also plenty of networking and opportunities for audience participation with our world-class speakers and guests.

News: Atlanta area gets a 5G incubator courtesy of T-Mobile and Georgia Tech

The Atlanta area is getting a new incubator for startups working with 5G technology courtesy of T-Mobile and Georgia Tech’s Advanced Technology Development Center, the companies announced today. It’s an expansion of the T-Mobile Accelerator program and part of the big carrier’s efforts to boost 5G innovation. Located in the Atlanta adjacent exurb of Peachtree

The Atlanta area is getting a new incubator for startups working with 5G technology courtesy of T-Mobile and Georgia Tech’s Advanced Technology Development Center, the companies announced today.

It’s an expansion of the T-Mobile Accelerator program and part of the big carrier’s efforts to boost 5G innovation.

Located in the Atlanta adjacent exurb of Peachtree Corners’ technology development park, which is already equipped with T-Mobile’s 5G services, the incubator will help developers build and test 5G use cases including autonomous vehicles, robotics, industrial drone applications, mixed reality training and entertainment, remote medical care and personal health, the company said.

Startups working with the 5G Connected Future program will work directly with folks at T-Mobile’s accelerator, Georgia Tech, and Curiosity Lab, an initiative in the Peachtree Corners campus.

“In addition to the normal startup concerns, entrepreneurs in the 5G space face a unique set of challenges such as regulatory issues at the state and local levels, network security, and integration testing,” said ATDC Director John Avery.

Peachtree Corners’ setup may help folks navigate that roll out. As part of its involvement ATDC will offer programing, recruit and evaluate startups, and hire staff to manage the vertical in Peachtree Corners, the organization said.

“This collaboration is a great opportunity for ATDC and Georgia Tech, the city of Peachtree Corners and Curiosity Lab, and T-Mobile, a Fortune 50 company, to create a unique collection to work with these companies, refine their ideas into scalable companies, and bring these solutions to market more quickly,” Avery said.

 

Such a partnership underscores “Georgia Tech’s commitment to enabling tomorrow’s technology leaders, which remains as strong as when ATDC was founded 41 years ago,” said Chaouki T. Abdallah, Georgia Tech’s executive vice president for research. “Innovation cannot take place in a vacuum, which is why entrepreneurs and startups require the knowledge and resources provided through partnerships such as ours.”

News: Locus Robotics has raised a $150M Series E

Massachusetts-based Locus Robotics today announced a $150 million Series E. The round, led by Tiger Global Management and Bond, brings the firm’s total to around $250 to date, and values the robotics company at $1 billion. Locus is notable for a more modular and flexible solution for automating warehouses than many of its competitors (see:

Massachusetts-based Locus Robotics today announced a $150 million Series E. The round, led by Tiger Global Management and Bond, brings the firm’s total to around $250 to date, and values the robotics company at $1 billion. Locus is notable for a more modular and flexible solution for automating warehouses than many of its competitors (see: Berkshire Grey). The company essentially leases out robotic fleet for organizes looking to automate logistics.

“We can change the wings on the plane while it’s flying,” CEO Rick Faulk tells TechCrunch. Basically no one else can do that. Companies want flexible automation. They don’t want to bolt anything to the floor. If you’re a third-party logistics company and you have a two, three, four-year contract, the last thing you want to do is invest $25-$50 million to buy a massive solution, bolt it to the floor and be locked into all of this upfront expense.”

The company currently has some 4,000 robots deployed across 80 sites. Roughly 80% of its deployments are in the U.S., with the remaining 20% in Europe. Part of this massive funding round will go toward expanding international operations, including a bigger push into the EU, as well as the APAC region, where it presently doesn’t have much of a footprint.

The company will also be investing in R&D, sales and marketing and increasing its current headcount of 165 by 75 in the coming year.

The pandemic is clearly a driver in interest around this brand of automation, with more companies looking toward robotics for help.

“COVID has put a spike in the growth of online ordering, clearly, and that spike is probably a four to five year jump,” says Faulk. “If you look at the trend of e-commerce, it’s been on a steady upward tick. It was about 11% last year and COVID put a spike up to 16/17%. We think that genie’s out of the bottle, and it’s not going back any time soon.”

The funding round also points to a company that seemingly has no desire to be acquired by a larger name, akin to Kiva Systems’ transformation into Amazon Robotics.

“We have no interest in being acquired,” the CEO says. “We think we can build the most and greatest value by operating independently. There are investors that want to invest in helping everyone that’s not named ‘Amazon’ compete.”

News: TC Sessions: Justice 2021 kicks off in two weeks

We’re only two weeks away from TC Sessions: Justice 2021, a virtual conference focused on making diversity, equity, inclusion and labor as integral to tech as data, software engineers, startups and venture capital. Join your global community on March 3 for a day packed with presentations, panel discussions and fireside chats with the top social

We’re only two weeks away from TC Sessions: Justice 2021, a virtual conference focused on making diversity, equity, inclusion and labor as integral to tech as data, software engineers, startups and venture capital.

Join your global community on March 3 for a day packed with presentations, panel discussions and fireside chats with the top social justice warriors, leaders and innovators in tech today. Just look at this speaker lineup. As always, we’ll have ample time for networking so you can connect and discover new people and new opportunities to change the world.

We believe accessibility and inclusion starts at home, which is why you can get a TC Sessions: Justice pass for $5. Here are just a few of the outstanding presentations on tap — be sure to read the TC Sessions: Justice 2021 agenda. We have a few surprises and more speakers in store, so check back in the coming weeks to see what’s new.

Meeting of the Minds: Diversity and inclusion as an idea has been on the agenda of tech companies for years now. But the industry still lacks true inclusion, despite best efforts put forth by heads of diversity, equity and inclusion at these companies. We’ll seek to better understand what’s standing in the way of progress and what it’s going to take to achieve real change. Wade Davis (Netflix), Bo Young Lee (Uber).

Identifying and Dismantling Tech’s Deep Systems of Bias: Nearly every popular technology or service has within it systems of bias or exclusion, ignored by the privileged but obvious to the groups affected. How should these systems be exposed and documented, and how can we set about eliminating them and preventing more from appearing in the future? Mutale Nkonde (AI for the People), Haben Girma (disability rights lawyer) and Safiya Umoja Noble (author of “Algorithms of Oppression”).

Demystifying First-Check Fundraising with First-Check Investors: There are so many ways to finance your startup that don’t include Y combinator or a traditional fund. In this stacked panel, founders will hear how to leverage unconventional communities and resources to get the first dollars they need to execute. Brian Brackeen (Lightship Capital), Astrid Scholz (Zebras Unite), Sydney Thomas (Precursor Ventures).

You’ll also get to meet some of the diverse early-stage startup founders participating in the TechCrunch Include program and watch them deliver their best pitch in a live feedback session.

TC Sessions: Justice 2021 takes place on March 3. Buy your pass and spend the day listening to and learning from the people leading the charge for meaningful change in tech.

Is your company interested in sponsoring TC Sessions: Justice 2021? Contact our sponsorship sales team by filling out this form.

News: Gravy raises $4.5M for its service that helps subscription businesses recover failed payments

Gravy, a startup helping subscription-based businesses recover failed payments, has raised $4.5 million in Series A funding for its specialized combination of technology and a human workspace that works to reacquire customers lost to what’s known as “involuntary churn.” That means the customer didn’t choose to end their subscription, but — for any one of

Gravy, a startup helping subscription-based businesses recover failed payments, has raised $4.5 million in Series A funding for its specialized combination of technology and a human workspace that works to reacquire customers lost to what’s known as “involuntary churn.” That means the customer didn’t choose to end their subscription, but — for any one of hundreds of possible reasons — their credit card payment failed.

Typically, subscription-powered businesses attempt to correct this issue with technology — like sending automated emails, for example. Gravy, however, has developed a different solution that pairs its U.S.-based retention specialists with technology that alerts them to the failed payments. It then sells this whole system as a package to clients who use Gravy as an extension of their own workforce.

The new funding round — Gravy’s first institutional money — was led by Birmingham-based Arlington Family Partners, one of the few family offices in the southeast. It’s also one with a personal connection to Gravy co-founders, CEO Casey Graham and Chief of Staff, Renee Weber, as it managed their earnings from a prior acquisition.

Gravy, in fact, actually got its start at that earlier business, The Rocket Company, a coaching and resource provider for churches, which exited to a private equity group, Ministry Brands.

“We spent two years fixing [the problem of failed payments] in the last company and created a tech-enabled solution where we leveraged actual human beings to win back failed payments for subscriptions. And by doing that, we got a 5x offer higher than the initial offer because we fixed the failed payment problem,” Graham notes.

He first assumed other subscription businesses were doing the same, but later discovered that many were not. Instead, they tended to use automated means to address the problem, which would only recoup about 15% to 20% of the failed payments.

These tech-only solutions don’t work as well because customers often dismiss automated emails from companies, Graham says. However, customers do respond to personal outreach — but that’s something many new and fast-growing businesses can’t afford as they’re investing more heavily in growth and scale.

Gravy offers them a middle ground between automation and hiring in-house. Companies contract with Gravy on a subscription basis by paying a flat fee, tiered based upon transaction volume. This fee ranges from $997 on the low end to $8,000 on the high end. Gravy then integrates with the client’s own payment products and processor, their subscription manager and any other solutions they may use for managing subscriptions — like Stripe, Braintree, Recurly, Keap (Infusionsoft) and others. It even sets up a Gravy channel on the company’s Slack in order to better communicate with company staff.

The end result is that Gravy’s team feels like a part of the business itself, not some contract workforce.

Once established, Gravy’s team will use email and text, per the client’s preferences, to personally reach out to customers with failed payments to try to get their card information updated. Because it’s operating closely with the client, the specialists can also offer things like “stay bonuses” and other deals that could help bring back a customer who may not have otherwise bothered to return. During COVID, for example, Gravy also offered additional options, like the ability for the customer to skip several months along with other more personalized options to meet the customer’s specific needs.

“When we’re onboarding [a client], we create an empathetic script of three different responses, or opportunities for us to negotiate with the customer to win that customer back,” Graham explains. This works because of the human component — people know when they’re talking to a real person and not an automated script, he says.

Image Credits: Gravy

Since its founding in 2017, Gravy has scaled to over 300 clients, whose businesses may be as small as $200,000-$250,000 in revenue up to $100 million in annual revenue from subscriptions. These clients either operate in the B2B space — like B2B content subscriptions or tech education and certification, for example — or in the B2C space. In particular, Gravy is leveraged by a number of “box” subscription services (which offer to ship a box of products to a customer’s home) and B2C education and online courses.

To date, Gravy has processed over 6 million failed payments and has won back $175 million in failed payment subscriptions. The company is now on a mission to return $1 billion in failed payments by 2023. Gravy is also expected to pass $1 million in MRR this year, Graham says.

Notably, Gravy’s retention specialists aren’t “gig workers” or contractors — they’re full-time employees with benefits. And they can be employed from anywhere, which Graham says is a competitive advantage.

Though technically an Atlanta-area startup, Graham and Weber live 50 miles north of downtown Atlanta.

“I live on a farm, and we were told we were at a disadvantage because we weren’t in the middle of the Atlanta tech scene,” Graham says. “But the reality is, it became a huge advantage for us because our strategy has been to recruit the best people in small towns across the United States. Besides, he adds, “Slack is our headquarters.”

This strategy has allowed Gravy to also employ several military family members, who often have a hard time finding consistent work because they have to move regularly. That leads them to often take gig work instead of full-time jobs.

Image Credits: Gravy

“The gig economy — those companies are not committed to those people. They don’t care about them, or if they work or not. It’s a gig,” Graham says. “Gravy is committed to them on salaries, benefits … that’s something we’re super proud of.” He says Gravy’s salaries start at $55,000.

With the new funding, Gravy plans to expand its team of 83 to about 150 by year-end, expand its client acquisition efforts and further invest into its product. Longer term, he believes Gravy could also help businesses with other needs, including voluntary churn, for starters, and even customer service and customer success in the future.

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