Monthly Archives: February 2021

News: Metalenz reimagines the camera in 2D and raises $10M to ship it

As impressive as the cameras in our smartphones are, they’re fundamentally limited by the physical necessities of lenses and sensors. Metalenz skips over that part with a camera made of a single “metasurface” that could save precious space and battery life in phones and other devices… and they’re about to ship it. The concept is

As impressive as the cameras in our smartphones are, they’re fundamentally limited by the physical necessities of lenses and sensors. Metalenz skips over that part with a camera made of a single “metasurface” that could save precious space and battery life in phones and other devices… and they’re about to ship it.

The concept is similar to, but not descended from, the “metamaterials” that gave rise to flat beam-forming radar and lidar of Lumotive and Echodyne. The idea is to take a complex 3D structure and accomplish what it does using a precisely engineered “2D” surface — not actually two-dimensional, of course, but usually a plane with features measured in microns.

In the case of a camera, the main components are of course a lens (these days it’s usually several stacked), which corrals the light, and an image sensor, which senses and measures that light. The problem faced by cameras now, particularly in smartphones, is that the lenses can’t be made much smaller without seriously affecting the clarity of the image. Likewise sensors are nearly at the limit of how much light they can work with. Consequently most of the photography advancements of the last few years have been done on the computational side.

Using an engineered surface that does away with the need for complex optics and other camera systems has been a goal for years. Back in 2016 I wrote about a NASA project that took inspiration from moth eyes to create a 2D camera of sorts. It’s harder than it sounds, though — usable imagery has been generated in labs, but it’s not the kind of thing that you take to Apple or Samsung.

Metalenz aims to change that. The company’s tech is built on the work of Harvard’s Frederico Capasso, who has been publishing on the science behind metasurfaces for years. He and Rob Devlin, who did his doctorate work in Capasso’s lab, co-founded the company to commercialize their efforts.

“Early demos were extremely inefficient,” said Devlin of the field’s first entrants. “You had light scattering all over the place, the materials and processes were non-standard, the designs weren’t able to handle the demands that a real world throws at you. Making one that works and publishing a paper on it is one thing, making 10 million and making sure they all do the same thing is another.”

Their breakthrough — if years of hard work and research can be called that — is the ability not just to make a metasurface camera that produces decent images, but to do it without exotic components or manufacturing processes.

“We’re really using all standard semiconductor processes and materials here, the exact same equipment — but with lenses instead of electronics,” said Devlin. “We can already make a million lenses a day with our foundry partners.”

Diagram comparing the multi-lens barrel of a conventional phone camera, and their simpler "meta-optic"

The thing at the bottom is the chip where the image processor and logic would be, but the meta-optic could also integrate with that. the top is a pinhole.

The first challenge is more or less contained in the fact that incoming light, without lenses to bend and direct it, hits the metasurface in a much more chaotic way. Devlin’s own PhD work was concerned with taming this chaos.

“Light on a macro [i.e. conventional scale, not close-focusing] lens is controlled on the macro scale, you’re relying on the curvature to bend the light. There’s only so much you can do with it,” he explained. “But here you have features a thousand times smaller than a human hair, which gives us very fine control over the light that hits the lens.”

Those features, as you can see in this extreme close-up of the metasurface, are precisely tuned cylinders, “almost like little nano-scale Coke cans,” Devlin suggested. Like other metamaterials, these structures, far smaller than a visible or near-infrared light ray’s wavelength, manipulate the radiation by means that take a few years of study to understand.

Diagram showing chips being manufactured, then an extreme close up showing nano-scale features.The result is a camera with extremely small proportions and vastly less complexity than the compact camera stacks found in consumer and industrial devices. To be clear, Metalenz isn’t looking to replace the main camera on your iPhone — for conventional photography purposes the conventional lens and sensor are still the way to go. But there are other applications that play to the chip-style lens’s strengths.

Something like the FaceID assembly, for instance, presents an opportunity. “That module is a very complex one for the cell phone world — it’s almost like a Rube Goldberg machine,” said Devlin. Likewise the miniature lidar sensor.

At this scale, the priorities are different, and by subtracting the lens from the equation the amount of light that reaches the sensor is significantly increased. That means it can potentially be smaller in every dimension while performing better and drawing less power.

Image (of a very small test board) from a traditional camera, left, and metasurface camera, right. Beyond the vignetting it’s not really easy to tell what’s different, which is kind of the point.

Lest you think this is still a lab-bound “wouldn’t it be nice if” type device, Metalenz is well on its way to commercial availability. The $10M round A they just raised was led by 3M Ventures, Applied Ventures LLC, Intel Capital, M Ventures and TDK Ventures, along with Tsingyuan Ventures and Braemar Energy Ventures — a lot of suppliers in there.

Unlike many other hardware startups, Metalenz isn’t starting with a short run of boutique demo devices but going big out of the gate.

“Because we’re using traditional fabrication techniques, it allows us to scale really quickly. We’re not building factories or foundries, we don’t have to raise hundreds of mils; we can use whats already there,” said Devlin. “But it means we have to look at applications that are high volume. We need the units to be in that tens of millions range for our foundry partners to see it making sense.”

Although Devlin declined to get specific, he did say that their first partner is “active in 3D sensing” and that a consumer device, though not a phone, would be shipping with Metalenz cameras in early 2022 — and later in 2022 will see a phone-based solution shipping as well.

In other words, while Metalenz is indeed a startup just coming out of stealth and raising its A round… it already has shipments planned on the order of tens of millions. The $10M isn’t a bridge to commercial viability but short term cash to hire and cover up-front costs associated with such a serious endeavor. It’s doubtful anyone on that list of investors harbors any serious doubts on ROI.

The 3D sensing thing is Metalenz’s first major application, but the company is already working on others. The potential to reduce complex lab equipment to handheld electronics that can be fielded easily is one, and improving the benchtop versions of tools with more light-gathering ability or quicker operation is another.

Though a device you use may in a few years have a Metalenz component in it, it’s likely you won’t know — the phone manufacturer will probably take all the credit for the improved performance or slimmer form factor. Nevertheless, it may show up in teardowns and bills of material, at which point you’ll know this particular university spin-out has made it to the big leagues.

News: Andreessen Horowitz could make the carbon offset API Patch its latest climate bet

The early-stage carbon offset API developer, Patch, could be another one of Andreessen Horowitz’s early bets on climate tech. According to several people with knowledge of the investment round, former OpenTable chief executive and current Andreessen Horowitz partner Jeff Jordan is looking at leading the young company’s latest financing. Such an investment would be a

The early-stage carbon offset API developer, Patch, could be another one of Andreessen Horowitz’s early bets on climate tech.

According to several people with knowledge of the investment round, former OpenTable chief executive and current Andreessen Horowitz partner Jeff Jordan is looking at leading the young company’s latest financing.

Such an investment would be a win for Patch, which could benefit from Andreessen Horowitz’s marketing muscle in a space that’s becoming increasingly crowded. And, if the deal goes through, it could be an indicator of more to come from one of the venture industry’s most (socially) active investors.

Companies like Pachama, Cloverly, Carbon Interface, and Cooler.dev all have similar API offerings, but the market for these types of services will likely expand as more companies try to do the least amount of work possible to become carbon neutral through offsetting. A growing market could generate space for more than one venture-backed winner.

Neither Patch’s co-founders nor Andreessen Horowitz responded to a request for comment about the funding.

One concern with services like Patch is that its customers will look at offsetting as their final destination instead of a step on the road to removing carbon emissions from business operations. To fix our climate crisis will take more work.

Founded by Brennan Spellacy and Aaron Grunfeld, two former employees at the apartment rental service Sonder, Patch raised its initial financing from VersionOne Ventures back in September.

Around 15 to twenty companies that are using the service now, according to people familiar with the company’s operations.

The company has an API that can calculate a company’s emissions footprint based on an integration with their ERP system and then invests money into offset projects that are designed to remove an equivalent amount of carbon dioxide.

While services like Pachama privilege lower-cost sequestration solutions like reforestation and forest management, Patch offers an array of potential investment opportunities for offsets. And the company tries to nudge its customers to some of the more expensive, high technology options in an effort to bring down costs for emerging technologies, said one person familiar with the company’s plans.

Like other services automating offsetting, Patch evaluates projects based on their additionality (how much additional carbon they’re removing over an already established baseline), permanence (how long the carbon emissions will be sequestered) and verifiability.

And, as the company’s founders note in their own statement about the company’s service, it’s not intended to be the only solution that customers deploy.

“The majority of climate models indicate that we need to reduce our emissions globally, while also removing carbon dioxide from the atmosphere,” the founders wrote in a Medium post. “We take care of a company’s carbon removal goals, while they focus their efforts on reducing emissions, a more proprietary task that requires intimate operational knowledge. Patch complements this behavioral shift and gives us a real chance to mitigate climate change.”

VersionOne’s Angela Tran addressed any concerns about the defensibility of Patch’s technology in her own September announcement.

“We also believe that defensibility comes with the aggregation and “digitization” of quality supply. When we view Patch as a marketplace, we believe that businesses (demand) care about the type of projects (supply) they purchase to neutralize their emissions,” Tran wrote. “For example, a company might choose their sustainability legacy to be linked with forestry or mineralization projects. Patch is partnering with the best carbon removal developers and the latest negative emission technologies to build a network of low-cost, impactful projects.”

While Patch is explicitly focused on climate change, Andreessen has made a few early investments in a broad sustainability thesis. The firm led a $9 million investment into Silo last year and backed KoBold Metals back in 2019.

Silo has developed an enterprise resource planning tool for perishable food supply chains. Currently focused on wholesale produce, Silo said in a statement last year that it would be extending its services to meat, dairy and pantry items over the next year.

“The market potential for an innovator like Silo to reduce waste and improve margins is enormous and we’re excited to support its efforts as the system of record for food distribution in the United States,” said Anish Acharya, General Partner at Andreessen Horowitz, in a statement at the time. “Silo is well-positioned to scale beyond the west coast to help more customers modernize and transition their operations from pen and paper to software.”

Meanwhile, KoBold is a software developer that uses machine learning and big data processing technologies to find new prospects for the precious metals that companies need to make new batteries and renewable energy generation technologies.

“By building a digital prospecting engine — full stack, from scratch — using computer vision, machine learning, and sophisticated data analysis not currently available to the industry, KoBold’s software combines previously unavailable, dark data with conventional geochemical, geophysical, and geological data to identify prospects in models that can only get better over time, as with other data network effects,” wrote Connie Chan in a blog post at the time.

Taken together, these investments coalesce into a picture of how Andreessen Horowitz and its pool of $16.5 billion in assets under management may approach the renewables industry.

News: Google Cloud launches Apigee X, the next generation of its API management platform

Google today announced the launch of Apigee X, the next major release of the Apgiee API management platform it acquired back in 2016. “If you look at what’s happening — especially after the pandemic started in March last year — the volume of digital activities has gone up in every kind of industry, all kinds

Google today announced the launch of Apigee X, the next major release of the Apgiee API management platform it acquired back in 2016.

“If you look at what’s happening — especially after the pandemic started in March last year — the volume of digital activities has gone up in every kind of industry, all kinds of use cases are coming up. And one of the things we see is the need for a really high-performance, reliable, global digital transformation platform,” Amit Zavery, Google Cloud’s head of platform, told me.

He noted that the number of API calls has gone up 47 percent from last year and that the platform now handles about 2.2 trillion API calls per year.

At the core of the updates are deeper integrations with Google Cloud’s AI, security and networking tools. In practice, this means Apigee users can now deploy their APIs across 24 Google Cloud regions, for example, and use Google’s caching services in more than 100 edge locations.

Image Credits: Google

In addition, Apigee X now integrates with Google’s Cloud Armor firewall and its Cloud Identity Access Management platform. This also means that Apigee users won’t have to use third-party tools for their firewall and identity management needs.

“We do a lot of AI/ML-based anomaly detection and operations management,” Zavery explained. “We can predict any kind of malicious intent or any other things which might happen to those API calls or your traffic by embedding a lot of those insights into our API platform. I think [that] is a big improvement, as well as new features, especially in operations management, security management, vulnerability management and making those a core capability so that as a business, you don’t have to worry about all these things. It comes with the core capabilities and that is really where the front doors of digital front-ends can shine and customers can focus on that.”

The platform now also makes better use of Google’s AI capabilities to help users identify anomalies or predict traffic for peak seasons. The idea here is to help customers automate a lot of the standards automation tasks and, of course, improve security at the same time.

As Zavery stressed, API management is now about more than just managing traffic between applications. But more than just helping customers manage their digital transformation projects, the Apigee team is now thinking about what it calls ‘digital excellence.’ “That’s how we’re thinking of the journey for customers moving from not just ‘hey, I can have a front end,’ but what about all the excellent things you want to do and how we can do that,” Zavery said.

“During these uncertain times, organizations worldwide are doubling-down on their API strategies to operate anywhere, automate processes, and deliver new digital experiences quickly and securely,” said James Fairweather, Chief Innovation Officer at Pitney Bowes. “By powering APIs with new capabilities like reCAPTCHA Enterprise, Cloud Armor (WAF), and Cloud CDN, Apigee X makes it easy for enterprises like us to scale digital initiatives, and deliver innovative experiences to our customers, employees and partners.”

News: Tovala, the smart oven and meal kit service, heats up with $30M more in funding

With more of us spending significant amounts of time at home because of Covid-19, our attention has turned increasingly to how and what we eat. Today, one of the startups that has seen a lift in its business as a result of that is announcing a round of funding to expand its operations. Tovala, the

With more of us spending significant amounts of time at home because of Covid-19, our attention has turned increasingly to how and what we eat. Today, one of the startups that has seen a lift in its business as a result of that is announcing a round of funding to expand its operations.

Tovala, the smart oven and meal kit service — has closed a Series C of $30 million. David Rabie, the Chicago startup’s co-founder and CEO, told TechCrunch that it plans to use the funding in large part to open a second facility, most likely in Utah, to help with fresh food distribution to the western half of the U.S. Other investments will include improving customer service and bringing in more talent.

It will also slowly start to bring in more options for pre-made meals and recipes: Rabie said it is working on ways of working with leading restaurants and chefs to create meals to sell and cook in the Tovala oven.

“We think we can come closer to the restaurant experience because of the oven,” said Rabie. “By pre-making food rather than just reheating, we think we can open up reach for a local restaurant.”

The funding is being led by Left Lane Capital, with Finistere Ventures, Comcast Ventures, OurCrowd, Origin Ventures, Pritzker Group Venture Capital, and Joe Mansueto — all previous backers — also participating.

Originally incubated a Y Combinator, Tovala has attracted other interesting investors in the company, including poultry giant Tyson. Notably, this is the second round of funding for the startup in the space of six months, after it picked up $20 million in a Series B last June.

As with that round, the valuation is not being disclosed, but the company has hit some significant numbers, evidenced by this funding, which points to how its value may well be on the rise. Annualized revenue grew tenfold in the last 18 months (that is, including growth before Covid-19); employee numbers were up 40%; the company has passed 3 million meals shipped; and the company says that their ovens are being used 32 times on average each month by their owners (stats it can rack up because those devices are connected).

It is still not disclosing total user numbers, Rabie said.

Tovala’s oven sells for $299, but the company usually knocks off $100 if you also commit to six of its $11.99 meals over the next six months. Right now — possibly to tap into the wave of people who are rethinking how they eat in the wake of restaurant closures and simply spending more time at home — it seems Tovala is offering discounts of up to $130 to those buying the oven without the meal obligation, dropping the oven price down to about $170.

In addition to the company’s own pre-made meals, Tovala’s oven can cook hundreds of pre-made dishes and meals sold in stores by way of scanning package barcodes; and recipes that it devises and you can make yourself and program the oven to cook by way of the Tovala app. You can also use it in the same way that you might use any countertop oven, to toast, steam, bake and broil whatever you choose to independent of all that.

A profusion of meal kit and food delivery businesses have changed how a lot of people think about food at home, and Tovala has been building out a business in the hopes that it can cover a specific niche: people who want to eat fresh food they cook at home, but who don’t have time or interest in putting those meals together — not even when they come with items precut and measured by meal kit companies.

However, that is just one side of the business: Tovala’s ovens, Rabie said, are a central part of the vertical integration that the company has built, and they are here to stay as part of the proposition.

“We are in the business of getting high quality meals to people, and the oven is our vehicle for doing that,” he said. “We are both a tech and food company, and at no point do I see us getting out of oven business.”

Having said that, the company is also expanding with partnerships with others that produce ovens, too. Specifically, Tovala has a deal with LG to embed its software in LG ovens, to enable them to cook Tovala’s meals and the other dishes that can be programmed with its app an barcode scanning system. Rabie said the deal made sense since the kinds of full-sized ovens that will run Tovala’s software are “not the kind of product line that we will get into.”

It appears that LG is not an investor, and it’s not clear when these new devices will be rolled out: the deal between the two was announced back in 2019.

That partnership is a mark of how the hardware companies that are building connected appliances, and services around them, are knitting together more closely with incumbents to take their next scaling steps. In at lest two instances that has led to those startups getting acquired: BBQ giant Weber acquired June (which it had also invested in) earlier this year; and previously Electrolux acquired pressure cooker company Anova for $250 million.

An exit of that kind may or may not be on the menu for Tovala, but it’s a signal of the options that the startup has for moving from appetiser to main course in the future.

Rabie had told me that Left Lane’s interest was based on how it saw Tovala as a “Peloton”-like category definer for smart food preparation at home, in part because of how it could become part of a person’s daily habits and routines.

“The pairing of a meal subscription with a connected device has enabled Tovala to achieve a customer retention rate that is a step-function better than anything else we’ve seen in food delivery — in many ways similar to what Peloton achieved in a traditionally low-retention fitness industry,” said Jason Fiedler, co-founder and managing partner at Left Lane Capital, in a statement. “Our team brings a proven track record of investing in category-defining consumer subscription businesses, and we’re excited about Tovala’s potential to be the next major food tech company.” Fiedler is joining the board.

News: A growing number of startups are creating APIs to assess and offset corporate carbon emissions

It was only a matter of time before application programming interfaces came for the carbon credit offsets — the voluntary programs that allow companies to cancel out their greenhouse gas emissions (on paper) by financing renewable energy projects or carbon sequestration projects globally. Massive e-commerce and payments companies Shopify and Stripe are already providing emissions

It was only a matter of time before application programming interfaces came for the carbon credit offsets — the voluntary programs that allow companies to cancel out their greenhouse gas emissions (on paper) by financing renewable energy projects or carbon sequestration projects globally.

Massive e-commerce and payments companies Shopify and Stripe are already providing emissions offsets as a service for their customers, but now a clutch of startups are looking to automate the process through software.

Among them are Cloverly, a startup launched internally by the massive southeastern utility, Southern Company; Patch, which was launched by two alums from the apartment management and short-term rental service, Sonder; Cooler.dev and now Pachama, which operates its own international offset marketplace focusing on reforestation and forest management.

It’s part of a new movement among early stage companies to launch services for businesses and consumers that offer ways to examine and reduce their environmental footprint.

For Pachama, the idea of incorporating an API into the business model was baked into the business plan from the beginning, according to the company’s co-founder and chief executive, Diego Saez Gil.

“Things got accelerated when we closed Shopify as a customer,” Gil said. “Shopify wanted to offer carbon neutral services. And they do. And we are already selling carbon credits to them, but we we were processing orders in a manual way… If you want to do this at scale, you need to automate the purchase of credits.”

Things accelerated for Pachama after the company inked another deal with the massive logistics company, Shipbob, which is offering their customers carbon neutral fulfillment services, Gil said.

In contrast with companies like Patch and Cloverly, Gil feels Pachama has an advantage thanks to its ability to tap its own offset marketplace to provide credits.

“We have the marketplavce and verification and monitoring service for everything that we bring through our platform,” Gil said.

Having this kind of background could provide greater transparency into the quality of the offsets on offer.

Carbon offsets have proven to be a useful, if fraught, mechanism for combating climate change. While most projects provide real benefits to communities in the form of renewable energy or reclaimed forestland or the preservation of existing forests and land, there can be problems with double counting or simply fraudulent projects whose value as a carbon offset is overstated.

A series of articles from Ben Elgin at Bloomberg News underscore the breadth of the problem, which even managed to include projects from well respected organizations like The Nature Conservancy.

“This comes to the question of net additionality,” said Gil. “What is the actual additional carbon sequestration or carbon avoidance of everything that’s around the project… We need to have a science based approach and very conservative assumptions when assessing the value of offsets.”

Transparency and accountability are critical to the development, monitoring and management of these kinds of offsets, especially as these offsets assume a more central role for companies looking to dramatically reduce the greenhouse gas emissions associated with their operations.

And these offsets are only a stop-gap measure. Ultimately businesses need to remove carbon emissions from their own operations as quickly as possible to reduce the risk of climate change having an even greater impact on society.

“It’s super exciting to me that there are a lot of companies that want to offer carbon neutral services. That’s going to become the norm, and they’re going to do it because customers want that,” said Gil.

 

News: Joompay launches its bill-splitting payment app across Europe to take on Transferwise and others

Joompay, a startup with an iOS and Android app similar to Venmo and TransferWise, has now launched in Europe after obtaining a Luxembourg Electronic Money Institution (EMI) license. The app allows people to send and receive money with anyone, instantly and for free. However, it enters a crowded market, competing with peer to peer payment

Joompay, a startup with an iOS and Android app similar to Venmo and TransferWise, has now launched in Europe after obtaining a Luxembourg Electronic Money Institution (EMI) license. The app allows people to send and receive money with anyone, instantly and for free. However, it enters a crowded market, competing with peer to peer payment features from the likes of Revolut, N26, Monese and Monzo. Joompay was started by the founders of Joom, an ecommerce marketplace.

Users just need to know an email or a phone number to send money to someone — or a custom paytag that does not reveal any personal details. They can jointly pay a bill, make purchases online and send money to someone in another country. It also allows users to create customizable payment pages, share their personal Joompay URL, collect money from customers, and receive donations, not unlike Paypal.

“The app has been engineered to deliver a best-in-class and the first pan-European experience of peer-to-peer payment solutions,” Yuri Alekseev, CEO and co-founder of Joompay said in a statement. “The increasing popularity of non-cash payments during the pandemic ensured us that now is an excellent opportunity for further development.”

In December, Joompay became a Principal Member of the Visa card scheme, allowing it to issue its new Joompay cards across Europe.

News: 23andMe set to go public via a Virgin Group SPAC merger

Genetics testing and genome research company 23andMe is set to go public via a merger with special purpose acquisition corp (SPAC) VG Acquisition Corp, a vehicle set up by Richard Branson and his company Virgin Group. The transaction is expected to result in 23andMe having around $984 million in cash available at close to spend

Genetics testing and genome research company 23andMe is set to go public via a merger with special purpose acquisition corp (SPAC) VG Acquisition Corp, a vehicle set up by Richard Branson and his company Virgin Group. The transaction is expected to result in 23andMe having around $984 million in cash available at close to spend on product development, hires and other growth strategies, and will value the company at around $3.5 billion, close to the total cited by an earlier report detailing the talks leading up to this deal.

23andMe, founded in 2006 and led by co-founder Anne Wojcicki, has raised a total of just under $900 million to date, including an $85 million Series F round announced last December. The company was one of the first to debut at-home genetic testing for individual consumers, providing kits that people can use to find out more about their own DNA, and what it says about their potential health issue, ancestry and more.

More recently, the company has turned its massive genomic data store into an opt-in genetic research resource that is used for discovery of future therapies and treatments. It also monetizes through aggregated, anonymized sharing of the data it collects with third-parties, for research and business purposes.

The deal will include $25 million each invested into the private investment in public equity (PIPE) transaction that accompanies the merger from Wojcicki and from Richard Bransons. It’s expected to close in the second quarter of this year, and the resulting company will be listed on the NYSE under the ticker “ME.”

The current SPAC craze has proved a path to an exit for a number of startups, and long-private companies like 23andMe that technically still fit our definition because of the lack of an exit event, but that have also seemed content to rely on private investors to supply their cash reserves for a long time.

News: Brazil’s Monkey nabs $6M Series A for financial marketplace

Monkey, a financial marketplace for receivables in Latin America, has raised $6 million in Series A funding. Quona Capital and Kinea Ventures co-led the round. The São Paulo-based startup was founded in 2016 by a trio that includes former Citi investment banker Gustavo Müller, Bruno Oliveira (who worked in strategic planning for Telefonica) and Felipe

Monkey, a financial marketplace for receivables in Latin America, has raised $6 million in Series A funding.

Quona Capital and Kinea Ventures co-led the round.

The São Paulo-based startup was founded in 2016 by a trio that includes former Citi investment banker Gustavo Müller, Bruno Oliveira (who worked in strategic planning for Telefonica) and Felipe Adorno, an ex-senior developer for Netshoes and Infracommerce.

Monkey has developed what it describes as Supply Chain Finance (SCF) programs for small and medium enterprises. So what does that mean exactly? It pairs up SMEs with large enterprises such as Brazilian petrochemical giant Petrobras and Fiat Chrysler, and banks. Through its network, the company claims that buyers can “find the best receivables in the market, suppliers get the best sales conditions, and sponsors strengthen their businesses and production chains.”

Monkey was founded on the premise that the Brazilian financial system is highly concentrated among just a few players, with little competition — a common refrain in Latin America.

“You have high rates, the spreads are crazy and it’s almost impossible for small and medium companies to access additional capital at a reasonable price,” CEO Müller told TechCrunch. 

Monkey’s goal, he said, is to solve SMEs frustrations by creating “a competitive environment that brings multiple financial institutions onto Monkey’s platform to compete for the purchase of SMEs’ receivables with top tier buyers.”

Today, Monkey has 55 large companies on its platform, many of whom signed on in 2020, leading the startup to see its trading volume surge from about $187 million to $1.5 billion over the course of the year.

Jonathan Whittle, partner and co-founder of Quona Capital, said his firm — which invests in startups focused on fintech for inclusion in emerging markets — was impressed with what he described as Monkey’s “novel approach.”

By combining buyer-sanctioned marketplaces and auction-based pricing through a multi-funder platform, small and medium enterprises in Brazil have access to credit in a way that they never have before, making the cost of capital more affordable, he said.

“What we’re excited about with Monkey is how it is opening up access to Supply Chain Finance for all the suppliers of larger enterprises, not just the large and mid-sized ones that have typically had access to it,” Whittle told TechCrunch.

The startup plans to use its fresh capital to double its team of 40 in 2021, and to grow operations not only in Brazil, but across Latin America by providing the same offerings for its own clients in other countries. It also plans to use the money to improve user experience and roll out new products such as a credit card marketplace.

“We actually think that what they’re doing is fundamentally different to the way that Supply Chain Finance has been done anywhere around the globe,” Whittle said. “Typically these have been relationships between one bank and a buyer. And what Monkey is doing is kind of turning it on its head with a value proposition that we think is super strong for all three participants in the marketplace.”

Quona’s other investments in the region include Creditas, BizCapital, Neon, Contabilizei, Kovi, Konfio, Klar and ADDI.

Kinea Ventures is a venture capital fund focused on investments in the financial services and technology space. The new fund is part of one of the main alternative investment managers in Brazil, Kinea Investimentos, which was founded in 2007 in a partnership with Itaú Unibanco, and currently has US$13 billion in assets under management.

Monkey had previously raised about $1.5 million through two seed rounds.

News: Aflorithmic nabs $1.3M for AI-driven personalized audio-as-a-service

London and Barcelona based audio-as-a-service SaaS startup Aflorithmic has scooped up $1.3 million in seed funding from Crowd Media Holdings, an Australia-based company focused on influencer-based ‘social commerce’ and marketing. It’s taking a 10% stake in Aflorithmic, per a press release, where it says the strategic investment is aimed at enabling it to offer FaceTime

London and Barcelona based audio-as-a-service SaaS startup Aflorithmic has scooped up $1.3 million in seed funding from Crowd Media Holdings, an Australia-based company focused on influencer-based ‘social commerce’ and marketing.

It’s taking a 10% stake in Aflorithmic, per a press release, where it says the strategic investment is aimed at enabling it to offer FaceTime conversations with celebrities through “best-in-class voice cloning technology”.

Two year old Aflorithmic may not have chosen a name that trips off the tongue but it’s all about speech and audio. It’s built a platform that offers fully automated, scalable audio production by using AI-driven synthetic media, (“ethical”) voice cloning, and audio mastering — which can be delivered to people’s ears via websites, mobile apps, smart speakers and so on via its APIs.

“Text in beautiful audio out” is its pithy slogan. Prior to the seed round it says it had taken in more than $887k in external capital, including via an oversubscribed pre-seed/FFF/angel round after bootstrapping for the first 10 months.

Sample clips on its website illustrate the personalization element with synthesized (robot-voiced) voice overs greeting a named customer before plunging into the detail of whatever content it’s been programmed to deliver.

Some of Aflorithmic’s current (proof of concept/pilot) customers are using its tools to create audio books for kids, for personalized narration of wellness/nutrition programs and even a robot butler concierge service for hotel guests. Its business thesis is that demand for audio far outstrips the ability of studio-produced human-spoken voiceovers to deliver.

Hence it reckons synthesized media will be needed to plug the demand gap — serving up infinite permutations of a voice track, each one personalized to a particular customer of the brand or enterprise. For now it’s working on around 10 projects with early beta customers, focused on the edtech, martech and health & fitness sectors.

At the same time, the popularity of podcasts and live-voice streaming shows no sign of abating — speaking to the staying power of audio in a video-heavy era.

Aflorithmic’s new investor, Crowd Media Holdings, has rather more ambitious designs on what its tools can help it do — and talks about ‘completely reshaping the way consumers engage in ecommerce’.

The specific driver for its investment in Aflorithmic (aka ALFR) is a plan to blend synthesized voice with video to let fans engage in “immersive” video chats with simulated versions of their favorite celebrities.

Taking a stake in the audio startup to partner on that project helps it de-risk that plan, it said.

“ALFR brings the audio tech that will replicate a celebrity’s accent, tone and mannerisms as if the celebrity were on the other end of a call,” Crowd Media writes, noting that “the actual content” the (future) cloned celebrity will sweetly whisper to your face will be “driven by” its own AI-driven chatbot technology — based on drawing on a knowledge base of answers built up from responding to more than 180M user-submitted questions (“via text-only mediums”).

Turning all that text into soothing synthesized voice is where Aflorithmic comes in. While the video piece of the cloned celebrity plan entails 3D imaging — with the tech for that being provided by three other synthetic media firms (UK-based Forever Holdings, digital human makers Zoe01 and Uneeq).

More broadly, Crowd Media says it will be integrating Aflorithmic’s technology into other of its social commerce applications, including its AI-driven chatbot (CM8) — which is targeted at customer service use cases across sectors like marketing, education, and health sectors.

For its part, Aflorithmic says it will be using the new funding for R&D for its API audio-production engine, voice cloning, and talent acquisition.

It offers its API-based audio-as-a-service to a range of customers — noting use-cases such as “hyper-personalized newsletters and podcasts” and voice cloning for marketing applications.

It also touts a “vast” voice library for customers to choose a robot speaker. But it also lets them record a snippet of their own voice to create personalized audio content through its voice cloning AI.

“Users can compose professional-quality pieces including music and complex audio engineering, then deliver the final product to any device or platform such as websites, mobile apps, or smart speakers — all without any previous production experience,” it writes.

Commenting on the funding in a statement, Timo Kunz, co-founder, and CEO at Aflorithmic, said: “We are excited to learn from Crowd’s experience in empowering companies to reach mass markets, and are pleased to accompany them as they define the future of social commerce. We believe audio creation as we know it is making way for automated, scalable, dynamic audio experiences — and companies like ours are at the forefront.”

“Synthetic audio production has a seemingly endless range of functions — the potential within marketing applications alone is mindblowing,” he added. “Imagine Kim Kardashian being a personal shopper for each of her 200M followers, or Lewis Hamilton explaining why YOU personally need the new Pirelli P Zero Rosso. All of this is just around the corner with our tech.”

On the business model he also told us: “We use a SaaS model similar to Twilio or Messagebird. There is a baseline monthly subscription based on usage, i.e audio tracks played. On top of that, we charge a fixed sum for cloning a voice. However, we also offer a free tier. For larger collaborations that have a heavy R&D aspect we will negotiate a custom price.”

Alforithmic’s other two co-founders are Peadar Coyle and Björn Ühss.

The startup’s claim of “ethical” voice cloning points to the challenges inherent for all companies working on  commercial tools to power the production of synthesized media.

While a cloned celebrity might just sound like a bit of fun, there is huge potential for misuse and abuse via individual voice cloning — from phishing scams and identity theft to emotional manipulation and blackmail. Copyright is another consideration.

In an ethics section of its website Alforithmic offers a brief nod to the risks in “making personalized audio scalable”. “With great innovation comes great responsibility,” it writes, adding: “We are committed to ethical, fair, transparent AI following the UK´s and European Union’s Ethics Guidelines for Trustworthy Artificial Intelligence. All our work and voice models and algorithms are only trained on and with the full compliance and approval of the individual data owner.”

Responding to questions about how it prevents misuse of its voice cloning tech, Kunz told TechCrunch: “This is a huge point. We thought about the ethics of synthetic audio very early and security is something we take very seriously and plays a key role in our early discussions with potential customers. We treat voice data like sensitive personal information and with the same care. All customer voices we clone need to give us written consent from the original speaker and we have a close look at how they use it — especially in the early stages.

“Also, our API infrastructure is securely designed to only allow access to paying customers, who have been onboarded and vetted by our team.”

“We purposefully don’t ride the Deep Fake wave,” he added. “Not only does it have negative connotations, but it’s also not purposeful use of the technology.”

On the competitive front, the startup points to Descript, which raised a $30M round just last month — and acquired another voice cloning startup, Lyrebird, back in 2019 — although its tools cover both video and audio vs Alforithmic being more fully focused on automating the entire audio production process.

“Descript is positioning itself more as a creator tool, which is great and they are doing fantastic. However, they don’t cover the full production process from text to speech, over music and sound editing to post-production. We think automating this process is a big deal. Taking audio production to the cloud allows for economies of scale and you can create a different audio track for every listener,” said Kunz.

“While Descript focuses on a sort of ‘studio’ as a ‘Photoshop for voice’ to make editing easy, we see ourselves more as a ‘Stripe for Audio’ making it very easy for companies to integrate Audio-As-A-Service into their products through our API instead of ‘just editing’.

“If you use health apps like Peloton as an example, this would allow them to create highly personalized workouts very easily. They could bring a hyper-personalized AI Coach into the workout who would help motivate users to give more and feel like there is a personal trainer next to them that offers motivation based on their previous workout data, personal bests etc.”

“Regarding video, that was a deliberate choice,” he added. “Audio is very personal and getting the nuances right is very complex and hard. We do collaborate with more than one AI video platform though, providing the audio for them because they found out by hard how challenging synthetic audio can be.”

This report was updated with additional comment from Alforithmic

News: Former Paytm execs team up to chase gold in India

Nearly every adult in India has a bank account, but fewer than a quarter of them in the South Asian nation can secure loans from the formal financial institutions. Although much of the population in the country doesn’t have a credit score, an increasingly growing number of people here are looking for credit — and

Nearly every adult in India has a bank account, but fewer than a quarter of them in the South Asian nation can secure loans from the formal financial institutions.

Although much of the population in the country doesn’t have a credit score, an increasingly growing number of people here are looking for credit — and some are going to extreme lengths.

Hundreds of online lending apps have begun attempting to tackle — and in some cases, abuse — this opportunity in recent years, offering Indians short-term, collateral-free and instant loans.

The catch? Several of these apps charge such high fees that the interest rate, when annualized, could go as high as 1,000%.

Many of these apps, several of which are operated by Chinese firms, have also been found to be employing sketchy tactics, such as contacting family members and colleagues of the customer to shame them and recover their money.

Google caught wind of this recently, and last month removed hundreds of such apps from the Play Store in India. But it wasn’t until several people committed suicide in the country in an attempt to save themselves from embarrassment from family, colleagues and society.

Deepak Abbot and Nitin Misra, two former executives of Paytm, India’s most valuable startup, believe that this problem can be solved for many by using an asset that has been sitting idly in nearly 200 million homes in the country: Gold.

Indians stockpile more gold than citizens of any other country. In fact, such is the demand for gold in India that the South Asian nation is the world’s third-largest importer of this precious metal.

But once most Indians have bought gold, they don’t really do much with it other than hoarding and getting it off circulation, thereby dragging down the economy. According to estimates by the World Gold Council, Indians have stashed 25,000 tons of gold, whose value today is over $1.4 trillion.

Monetizing even a third of it can add 2% to the GDP growth rate, analysts say. Banks and other financial institutions love gold as it’s a great secure asset whose value has only grown over the decades.

New Delhi has made several efforts, too, to get stashed gold back in circulation through initiatives such as the gold monetization scheme, but it hasn’t had much success with it so far.

The core challenge with convincing people to part ways with their gold is that it’s an emotional asset, said Misra and Abbot in an interview with TechCrunch. Gold jewellery is a show of strength and pride in India, and families pass on their reserve to future generations.

“Irrespective of your state, religion, community, in India, gold has a certain auspicious sentiment attached to it. You worship it. Even when tax concession and premium price is offered to someone, they can’t fathom the idea of their necklaces and other jewellery being melted and going away,” said Misra.

The other challenge is that even when someone absolutely needs to sell their gold, which is often their last resort, to attend a family emergency or other urgent and unavoidable cause, the process of selling it is an awkward and embarrassing experience for many because of the stigma of pawning their family’s precious property.

In recent years, a handful of firms and startups — in collaboration with banks — have attempted to remove this stigma by visiting the customer at their doorstep to some success.

Abbot and Misra, pictured above, think they have a better approach and broader idea.

Many people in India keep their gold stash and other precious items in a safe locker at a bank that can charge as high as $65 a month for this service. (Banks require customers to pay the fee annually, however.) There are some downsides to using a bank’s locker: Accessing this locker is a long-process and can easily take half of your day, if not more. There’s also no insurance protection on items people keep in the locker. Customers are also required to put up a security deposit of a few hundred dollars to avail this service — and, there is also a long-waiting period before people can even avail this service.

Through their newfound startup indiagold, Abbot and Misra are offering customers a similar locker service for as little as $1.36 a month, which also includes full insurance coverage. The idea, the duo explained, is to make it easier and convenient for people to secure their previous metal reserve.

“You sign up on indiagold app, our agents come to your house, inspect and weigh the gold, and put it in a tamper proof bag. We also attach an RFID sticker to the bag, which once scanned, can detect if there was any attempt to open it. They then put the bag inside a steel box, which is locked by the customer with their fingerprint. And all of this is being captured through a body camera by one of our agents, which is streaming the feed in real-time to the customer as they leave the premise to the designated vault location,” said Misra.

With crime rates going up, very few people bark at the idea of securing their jewelries and especially when they know that their property is being insured, the duo said. Once they have deposited their gold stash with indiagold, the startup displays the real-time value of their property and offers a line of credit that could be accessed within seconds.

“It’s fine if the customer doesn’t want a loan, but should they ever need it, they have a zero-touch option available. They know that their gold is secured in a locker with their fingerprint, so their jewellery is not going to be melted or broken. If they ever need a line of credit, they can avail it in 30 seconds without talking to anyone, or even having someone quietly visit their home,” he said.

“If they have deposited multiple jewellery items, they can avail loan against just some of them. Say if the person knows that they need to use some necklace in an event soon, they can take a loan against other items in that case. And we charge at max 1% interest rate on the loan,” he added.

This is just part of the problem that indiagold, which kickstarted its operation late last year, is trying to address.

It has built a platform that determines the credit worthiness of its customers, and provides APIs to banks and other lenders who are trying to reach this untapped market.

The startup, which is currently operational in Delhi-NCR, recently raised $2 million in a financing round led by Leo Capital, with participation from high-profile investors including Kunal Shah of Cred, Amrish Rau of PineLabs, Kunal Bahl and Rohit Bansal of Snapdeal, Ashneer Grover and Bhavik Koladiya of BharatPe, Miten Sampat of Cred and MX Player, Sameer Mehta of Boat, Ashish Sharma of Innoven Capital, Ankit Agarwal of Alteria Capital, Rahul Soota of MyMoneyMantra, Ramakant Sharma of Livspace, and Blume Founders Fund.

“We think this is the only way this huge market can really be addressed, and now we are beginning to scale our efforts,” said Misra.

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