Daily Archives: March 18, 2021

News: Atlassian peps up Confluence with new graphical design features

Confluence, Atlassian’s wiki-like collaborative workspace, has been around for over 15 years and is often a core knowledge-sharing tool for the companies that implement it. But for the most part, Confluence is a business tool and looks like it, with walls of text and the occasional graph, table or image. But user expectations have changed

Confluence, Atlassian’s wiki-like collaborative workspace, has been around for over 15 years and is often a core knowledge-sharing tool for the companies that implement it. But for the most part, Confluence is a business tool and looks like it, with walls of text and the occasional graph, table or image. But user expectations have changed and so it’s maybe no major surprise that Atlassian is now bringing a stronger emphasis on design to the service.

Today’s update, for example, brings features like cover images, title emojis and customizable space avatars (that is, “icons that denote a ‘space’ or section of Confluence”) to the service. The team also recently introduced smart links, which allow you to paste links from services like YouTube and Trello and have the service immediately recognize them and display them in their native format. Other new features include the ability to schedule when a new page is published and the ability to convert pages to blog posts (because, as it turns out, Atlassian has seen a bit of a resurgence in corporate blogging — mostly for internal audiences — during the pandemic).

Image Credits: Atlassian

“We ended up doing something that we called ‘love sprint,’ where we prioritize about 30 features for the enhancements, which are all — if you think about the themes — about how you design information in this world where you have to read more, where you have to write more,” Natalia Baryshnikova, the Head Of Product Management for Atlassian’s Confluence Experience Group, told me. “And there’s the attention span that’s kind of pushing its limits. So how do you design for that situation? How do you discover our content?”

Baryshnikova tells me that the team took a close look at how content production, management and delivery works in the social media world. But some of the new features are also purely a reaction to a changing work environment. Take the ability to schedule when pages are published, for example. Employees who work from home may work especially late or early right now, for example, in order to prioritize childcare. But they still want the content they produce to be seen inside the company and that can be hard when you would otherwise publish it at 11pm, for example.

Image Credits: Atlassian

And having your content get noticed is getting harder because Confluence usage has dramatically increased in the last twelve months. As Atlassian noted today, over 60,000 companies are now using the service. And inside those companies, those users are also far more active than ever before. The number of Confluence pages created from March 2020 to March 2021 increased by more than 33 percent. The average user now creates 11 percent more pages, but the product’s superusers have often doubled or tripled their output.

The use of Confluence has also helped many companies reduce their number of meetings, but as Baryshnikova noted, “not only are pages competing with meetings — but pages are competing with pages.” So using good graphics, for example, is a way for a user’s content to stand out in the noise of corporate content production. Which, I have to admit, strikes me as a somewhat strange dynamic. But I guess that just like on the web, in order to stand out in a corporate environment, you have to make the documents you produce stand out in order to get noticed. Maybe that — as well as the lack of watercooler conversations — is also the reason why corporate blogging is seeing an uptick right now.

News: Real estate tech startup Offerpad to go public via SPAC merger in $3B deal

Offerpad is the latest proptech company to go public via a SPAC merger. The Phoenix, Ariz.-based company announced Thursday its plans to go public by merging with Supernova Partners Acquisition Company in a deal valued at $3 billion. The transaction is expected to close in the second, or early third, quarter of 2021. The combined

Offerpad is the latest proptech company to go public via a SPAC merger.

The Phoenix, Ariz.-based company announced Thursday its plans to go public by merging with Supernova Partners Acquisition Company in a deal valued at $3 billion.

The transaction is expected to close in the second, or early third, quarter of 2021. The combined company will be named Offerpad Solutions and trade on the New York Stock Exchange under the ticker “OPAD.”

Founded in 2015, Offerpad started out as primarily an iBuyer (meaning it bought homes from sellers who signed up online) and has since evolved its platform in an effort to be a one-stop shop for people looking to buy or sell a home. For example, it now also offers home improvement advances, as well as title and mortgage services. The company has raised $155 million in equity funding from investors such as LL Funds, in addition to hundreds of millions more in debt over the years.

Since its inception, Offerpad says it has completed 30,000 transactions and achieved nearly $7 billion in gross transaction volume. The company projects it will generate revenue of $1.4 billion this year.

Supernova Partners, which spun up the SPAC for this deal, is lead by Spencer Rascoff — a serial entrepreneur with plenty of prop tech experience who co-founded Hotwire, Zillow, dot.LA and Pacaso, and who led Zillow as CEO for nearly a decade.

PIPE investors include funds and accounts managed by BlackRock and Zimmer Partners, as well as national homebuilder Taylor Morrison Home Corp.

Offerpad says that by partnering with Supernova to become a public company, it expects it will be able “to accelerate its growth to capture more” of the market. The company currently operates in over 900 cities and towns across the country and plans to expand nationwide. 

Rascoff believes Offerpad “is incredibly well-positioned to grab a huge piece” of the online real estate market.

“iBuying has barely scratched the surface of real estate, one of the biggest addressable markets in the world,” he said in a written statement. “In general, real estate continues to be mostly analog, in contrast to other industries like grocery, autos and pharmaceuticals, but consumers demand online solutions. As they bring more transactions online, we believe online real estate as a whole is poised to grow rapidly in the coming years.”

Offerpad competes with companies such as Opendoor, Redfin and Zillow, among others.

As part of the transaction, existing Offerpad shareholders will roll 100% of their equity into the combined company and are expected to own approximately 75% of the combined entity at closing. Offerpad’s founder and CEO Brian Bair will receive high-vote stock that is expected to represent approximately 35% of the voting power of the combined company.

Earlier this month, real estate tech startup Doma, formerly known as States Title, announced it would go public through a merger with SPAC Capitol Investment Corp. V in a deal valued at $3 billion, including debt.

News: Vega raises $5M to give anyone the ability to launch a derivatives market

Vega, a startup that is building a decentralized protocol for creating and trading on derivatives markets, has raised $5 million in funding. Arrington Capital and Cumberland DRW co-led the round, which also included participation from Coinbase Ventures, ParaFi Capital, Signum Capital, CMT Digital, CMS Holdings, Three Commas and a slew of others. The new investment

Vega, a startup that is building a decentralized protocol for creating and trading on derivatives markets, has raised $5 million in funding.

Arrington Capital and Cumberland DRW co-led the round, which also included participation from Coinbase Ventures, ParaFi Capital, Signum Capital, CMT Digital, CMS Holdings, Three Commas and a slew of others. The new investment brings Vega’s total funding raised to over $10 million, according to Crunchbase data.

Vega Founder Barney Mannerings launched the Vega project in 2018 with the mission of giving anyone the ability to create and launch a derivatives market. The company claims that by eliminating centralized gatekeepers and decentralizing governance, it can allow for instant settlement, remove conflict of interest from markets, reduce fees, and enable the throughput necessary for high-volume derivatives trading. In short, it claims to be realizing the promise of blockchain technology applied to financial business models, which is mostly around eliminating operators sitting in the middle that essentially profit mainly by passing money from one party to another.

“By allowing anyone to create and launch a derivatives market, we aim to give people the tools they need to hedge risks unique to their region, profession, or situation,” Mannerings said. “Derivatives trading has been a pillar of traditional finance for a long time, but DeFi has not been able to achieve the capital efficiency and throughput required to make decentralized derivatives trading viable, until now.”

For now, Vega is still under development. The startup launched its ‘testnet’ (a testing version of its network, as the name implies) in the second quarter of 2020 and has had a number of iterations since.

The company plans to use its new capital on resources “to ship and test high quality code,” among other things. This summer, Vega is gearing up to launch a “mainnet ready” release of its protocol code.

After that, Mannerings said the company expects to see the first validators launch a Vega network that plugs into the Ethereum mainnet for the first time, allowing trading of real crypto assets.

For now, the company’s wallet software that is required to access the testnet is free and open sourced, meaning that anyone can download to create a wallet and use the testnet. Vega has so far given out around 500 IDs for its hosted wallet, which allows people to use testnet without running the wallet themselves. There have been other IDs created, but the company has not been able to track just how many.

Anjan Vinod, investment analyst at investor ParaFi Capital, said his firm is both a DeFi investor and user and as such, has been monitoring the evolution of new blockchain-based financial primitives. 

“The multi-trillion dollar derivatives market has been a missing piece in the core DeFi stack,” he wrote via email. “Leveraging a proof of stake protocol, integrated liquidity incentives, and permissionless market creation, Vega is bringing a novel and first-principles approach to decentralized derivatives. Vega disrupts the intermediaries traditionally controlling market creation, settlement, collateral management, and pricing in the derivatives market.”

News: What eToro’s investor presentation and $10B valuation tells us about Robinhood

Trading platforms are being valued more like high-margin video games than software stocks.

Amid all the news of the last few days, you might have missed that eToro, an Israeli consumer stock-trading service, is going public in the United States via a SPAC.

Don’t worry about the SPAC bit: If you want a rundown of the deal itself, Mary Ann has you covered. What matters for our purposes is that eToro competes with Robinhood in the United States, though it retains a strong European user base. And, thanks to the fact that it is SPACing itself onto the public markets, we now have lots of its financial data to play with.


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


You can see where we’re going with this. With Robinhood somewhere between a sheaf of lawsuits and an IPO, the eToro data could provide an interesting insight into the world in which its zero-cost trading competitor operates. If we want to better understand Robinhood, perhaps eToro can provide some clarity.

We’re going into the eToro investor deck, first asking ourselves what we think of its numbers and financial health and valuation. Then we’ll compare what we learned against what we know about Robinhood’s own business. Let’s go!

eToro is going public

The eToro-SPAC deal is a big one, weighing in at over $10 billion in calculated value. Whether the markets will support the valuation isn’t clear, but the debut matters for the Israeli startup market and the returns of a goodly number of venture capitalists and other capital pools.

What do its SPAC-backers see in eToro that could be worth so much? Let’s get into the deck, which you can open up here.

To illustrate both its recent growth and also how relaxed the rules are on what companies can share in their SPAC presentations, eToro has included its full-year 2020 results and its January 2021 results. Why? Because, like Robinhood and others, it had a big start to the year. So, eToro wants to show off how well.

For example, this chart shows that eToro had a good 2020, and an incredible start to 2021:

Impressive, right? eToro later breaks the 2020/2021 split into numbers, noting that it recorded an average of 192,000 registrations per month in 2019, 440,000 per month in 2020, and 1.223 million in January 2021. The implication the company is trying to impart on investors is obvious: If you like our past growth, just look at what this teaser 2021 data point could mean!

News: Amazon begins testing its Rivian electric delivery vans in San Francisco

Amazon is expanding customer deliveries via electric cargo vehicle to San Francisco, making the Bay Area the second of 16 total cities the company expects to bring its Rivian-sourced EVs to in 2021.  San Francisco’s unique terrain and climate were a couple of the reasons Amazon said it chose the city for its second round

Amazon is expanding customer deliveries via electric cargo vehicle to San Francisco, making the Bay Area the second of 16 total cities the company expects to bring its Rivian-sourced EVs to in 2021. 

San Francisco’s unique terrain and climate were a couple of the reasons Amazon said it chose the city for its second round of testing. Its EVs, which were designed and built in partnership with Rivian, can last up to 150 miles on a single charge. 

Amazon began testing its electric delivery van in Los Angeles in early February as part of its Climate Pledge, which involves the purchase of 100,000 custom electric delivery vehicles. The company first unveiled the vans last October, and has said it aims to have 10,000 of the vehicles operational by next year. 

Bay Area deliveries will initially come out of Amazon’s station in Richmond, California, just one of the many delivery stations the e-commerce giant is redesigning to service its new fleet of EVs. A recent $200 million investment into a new delivery station in the heart of San Francisco signals Amazon’s push to significantly increase deliveries in the city. 

“From what we’ve seen, this is one of the fastest modern commercial electrification programs, and we’re incredibly proud of that,” said Ross Rachey, director of Amazon’s global fleet and products in a statement.

Amazon isn’t the only company to recognize the logic behind electrifying delivery fleets for short trips within cities: DHL says zero-emission vehicles already make up 20% of its fleet, UPS has placed an order for 10,000 EVs and FedEx has pledged to replace 100% of its fleet with electric vehicles by 2040. 

News: Startups, get your bug bounty crash course at Early Stage 2021

In cybersecurity, nothing is “unhackable.” Security bugs are an unavoidable consequence of an online world, but how companies receive and respond to hackers can make or break them. Get it right, and you build bonds with the security and hacker community and improve your security by fixing flaws before malicious actors do. Get it wrong

In cybersecurity, nothing is “unhackable.”

Security bugs are an unavoidable consequence of an online world, but how companies receive and respond to hackers can make or break them. Get it right, and you build bonds with the security and hacker community and improve your security by fixing flaws before malicious actors do. Get it wrong — well, you can imagine the rest.

That’s why we’re thrilled that Katie Moussouris, founder and chief executive at Luta Security, will give a crash course in bug bounty and vulnerability disclosure programs at TC Early Stage 2021.

Moussouris is a pioneer and one of the leading experts in vulnerability disclosure, and has helped some of the largest companies and government departments — from Microsoft to the Pentagon — change how they respond to hackers and security researchers. This cultural shift helped transform the security industry, creating a way for hackers to find, report and get paid for the vulnerabilities they find, while carving out an entire industry dedicated to helping to crowdsource and coordinate security fixes.

In 2016, Moussouris founded Luta Security to advise companies and governments on the benefits of security research and how to build and improve their vulnerability disclosure programs.

In this TC Early Stage session, you will hear the good, the bad and the ugly that startups will face when managing vulnerability disclosures.

Moussouris joins a growing list of speakers at TC Early Stage, an event packed with breakout sessions focused on all the core competencies that a startup needs to be successful. Here’s a preview of some of the sessions going down at TC Early Stage:

  • How to Get An Investor’s Attention (Marlon Nichols, MaC Venture Partners)
  • Four Things to Think About Before Raising a Series A (Bucky Moore, Kleiner Perkins)
  • How Founders Can Think Like a VC (Lisa Wu, Norwest Venture Partners)
  • Finance for Founders (Alexa von Tobel, Inspired Capital)
  • Building and Leading a Sales Team (Ryan Azus, Zoom CRO)
  • Keys to Nailing Product Market Fit (Rahul Vohra, Superhuman)

Plus: The TC Early Stage curriculum is being spread across two events, with fundraising and operations represented on April 1 & 2 and fundraising and marketing deep dives on July 8 & 9. Folks who buy a ticket to just one event will get three months of Extra Crunch for free, and folks who buy a dual-event ticket will get six months of Extra Crunch membership for free.

News: Tech companies should oppose the new wave of anti-LGBTQ legislation

The tech industry should be more vigilant than ever in opposing discriminatory state-level anti-LGBTQ legislation that would target workers and their families.

David Edmonson
Contributor

David Edmonson is vice president of State Policy and Government Relations at TechNet, the national network of technology companies that promotes the growth of the innovation economy through bipartisan advocacy at the federal and state level in all 50 states.

American tech companies are engaged in a worldwide competition for top talent that can pick and choose where they want to live or where they want to launch the next great startup. With the expansion of remote work and tech talent spread across the country, there are larger amounts of venture capital investment and opportunity available to companies. States should enact policies that embrace businesses and are welcoming for entrepreneurs and employees. However, far too many states are doing the opposite and trying to enact anti-equality legislation that will hurt business.

There are a number of states that are currently considering anti-LGBTQ legislation, including Montana, Texas, New Hampshire, Tennessee, Missouri, Georgia, Iowa, Kentucky, North Dakota, Mississippi and Alabama. These bills would cause irrevocable harm to tech employees and their families who may already be marginalized and susceptible to harassment.

The tech industry should therefore be more vigilant than ever in opposing discriminatory state-level legislation that would target workers and their families, become an economic liability, and negatively impact businesses’ ability to recruit and retain the best and brightest employees.

Anti-LGBTQ bills are not just harmful on the human level, they’re bad economics, as well.

Tech employees want to know that they will be treated fairly as they move through their daily lives and that they, their colleagues and their families are protected from discrimination. And tech companies want to do business in states where they can recruit top talent to promote innovation. Laws that discriminate are a major barrier to that effort.

And states that care about the growth of their innovation economies should not erect institutional barriers to opportunity and make it harder to convince people to call their state home.

Anti-LGBTQ bills are not just harmful on the human level, they’re bad economics, as well.  As states struggle to rebuild their economies post-pandemic, anti-LGBTQ legislation would negatively affect travel, tourism and business investments.

There is precedence. When North Carolina passed a law banning transgender people from using public restrooms in 2016, it cost the state approximately $630 million in less than a year, and 2,000 new jobs were lost due to halted corporate investments. In Indiana, citing a dangerous anti-LGBTQ law, Indianapolis-based Angie’s List froze a $40 million, 1,000-job expansion. Visit Indy found that the state lost at least 12 conventions and $60 million in revenue after the passage of the legislation.

In Arizona, an economic development study estimated potential economic damage of more than $140 million in lost meetings and conventions over three years after passage of a bill that was hostile to LGBTQ people and subsequently vetoed by their governor.

That’s why TechNet, on behalf of our member companies, recently spoke out against proposed anti-LGBTQ legislation in Montana, New Hampshire and elsewhere, making the case that welcoming, inclusive states are now 21st century economic imperatives. We plan to do so in any state that proposes similar discriminatory legislation.

We recognize the work these states have done to help the technology sector grow and be competitive in a national and global economy, but we caution legislators from doing anything that would make it more challenging to compete for the talented and highly educated workers many companies are looking to hire.

Businesses — and states — thrive when they are open to everyone. LGBTQ people are our family members, friends, co-workers, neighbors and community leaders. They deserve the same rights and opportunities.

Lawmakers in Montana, Tennessee and elsewhere are preparing to send unconscionable anti-LGBTQ bills to their governors shortly for signing. We strongly encourage state lawmakers to reject these extreme proposals to ban the LGBTQ community from fully participating in all aspects of society.

The technology industry will continue to take a strong public stance in opposing these bills, as they would be immensely harmful to our families, our employees, and the communities in which we thrive.

News: Nvidia raises GeForce Now subscription plan to $10 per month

Nvidia’s cloud gaming service GeForce Now has announced some changes when it comes to subscription plans. Starting today, paid memberships now cost $9.99 per month, or $99.99 per year — they are now called ‘Priority’ memberships. If you’re an existing ‘Founders’ member, you’ll keep the same subscription price as long as you remain a subscriber.

Nvidia’s cloud gaming service GeForce Now has announced some changes when it comes to subscription plans. Starting today, paid memberships now cost $9.99 per month, or $99.99 per year — they are now called ‘Priority’ memberships.

If you’re an existing ‘Founders’ member, you’ll keep the same subscription price as long as you remain a subscriber. If you stop your subscription at any point, you won’t be able to pay $5 per month again.

Last year, when Nvidia originally introduced paid plans for GeForce Now, the company was pretty transparent with its user base. You could pay $4.99 per month to access the Founders edition, but the company was going to raise the subscription fee at some point. And it sounds like Nvidia has made up its mind and thinks the paid subscription is worth $9.99 per month.

If you’re not familiar with GeForce Now, it lets you start a game on a powerful gaming PC in a data center near you. You get a video stream on your computer, mobile phone, tablet or TV of the game running in a data center — GeForce Now uses a web app on iOS and iPadOS and is available on a limited number of Android TV devices. When you press a button on your controller, the action is relayed to the server so that you can interact with the game. All of this happens in tens of milliseconds, making it one of the smoothest cloud gaming experience available right now.

Compared to Google Stadia and Amazon Luna, Nvidia isn’t starting its own game store. GeForce Now customers launch games that they already own. The platform supports Steam, Epic Games, GOG.com and Ubisoft’s launcher.

Game publishers have to opt in to GeForce Now, which means that you can’t launch all your games that you own in your Steam library. Right now, GeForce Now supports around 800 games that you can find on this page.

If you want to try GeForce Now, you can start playing for free. Nvidia offers a free membership that should be consdidered like a free trial. First, you have to wait in a queue until a free server is available — it can take five, ten of fifteen minutes.

After that, you’re limited to one-hour sessions. When you’ve played for an hour, you’re kicked out of the server. You can still start the game again, but you’ll have to go through the queue one more time.

If you become a paid member, games start nearly instantly and you can play up to six hours at a time. Similarly, you can start the game instantly after your six hours are up. Paid members also get RTX-enabled graphics.

When it comes to specifications, Nvidia has several configurations with different CPUs, graphic cards and RAM. If you play Fortnite, you might not get the best rig as you can get very high graphics on a medium-range PC. But if you launch Cyberpunk 2077, the service tries to prioritize better rigs.

Nvidia says it has attracted nearly 10 million users for its cloud gaming service. It’s unclear how many of them are paying for a subscription.

The company doubled the number of data centers in the last year. There are now more than 20 data centers operated by Nvidia or local partners. The company plans to expand capacity in existing data centers, add new data centers in Phoenix, Montreal and Australia.

There will be some quality-of-life updates as well, such as the ability to link games with your account to make it easier to launch them and more aggressive preloading of games.

Image Credits: Nvidia

News: Homebrew backs Higo’s effort to become the “Venmo for B2B payments” in LatAm

The B2B payments space has been on fire for a while, and the COVID-19 pandemic has only fueled mass adoption of digitizing finances. In regions like Latin America, the need for innovation in the sector is even more paramount than in the United States with so many people still relying on outdated processes. One Mexico

The B2B payments space has been on fire for a while, and the COVID-19 pandemic has only fueled mass adoption of digitizing finances.

In regions like Latin America, the need for innovation in the sector is even more paramount than in the United States with so many people still relying on outdated processes.

One Mexico City-based startup, Higo.io, is out to transform B2B payments for SMBs (small and medium-sized businesses) in Latin America, starting with its home country.

Rodolfo Corcuera, Juan José Fernández and Daniel Tamayo founded the company in January 2020, recognizing that the process of paying vendors for business owners is largely “manual and cumbersome.”

“In Mexico, small businesses mostly handle payables with nothing more than spreadsheets and email and legacy bank accounts,” CEO Corcuera said.

The trio formed Higo to automate processes and provide visibility into cash flow, particularly for small businesses. “Informal” businesses make up about 23% of Mexico’s GDP, according to data from INEGI, the government’s National Institute of Statistics and Geography. Higo launched its SaaS platform last November.

And now the startup has raised $3.3 million from a group of U.S.-based investors including Homebrew (which led the round), Susa Ventures, Haystack and J Ventures. The financing is the latest in a string of fintech-related fundings in Mexico that TechCrunch has covered as of late.

Higo wants shake up the payments scene in the region by creating an alternative to traditional banking for businesses to pay each other. 

“We want to build the Venmo for B2B payments in Latin America,” Corcuera told TechCrunch. 

Ultimately, the goal is to help SMB owners deal less with tedious tasks and more on generating revenues and profits for their businesses. Customers so far include hundreds of small business owners and the company aims to have “thousands” of customers by year’s end.

“E-invoicing is ubiquitous in the States and in the U.S., receiving a PDF invoice is enough,” Corcuera told TechCrunch. “But in Mexico, it has to be electronic to be [tax] deductible by law. With our platform, invoices are automatically populated so businesses can have visibility into what has to be paid, what vendors they owe and when they owe.”

Corcuera is no stranger to running companies, having launched a housecleaning marketplace at the age of 23 in 2013. He also founded Tandem, an office management platform, in 2018, to help office managers streamline their procurement needs. As is often the case for founders, it was during the process of growing that company that Corcuera realized how painful and time consuming it was for businesses to manage their payables and receivables. That led him to come up with the concept behind Higo.io. 

Gallardo was previously COO at Swap, a Mexican challenger bank, and also was one of the founding members of Uber’s Mexican operations.

Looking ahead, Higo plans to use its new capital in part to boost its six-person staff, particularly beefing up its engineering team so that it can “scale as fast as possible,” according to Corcuera.

For now, the company’s efforts are focused exclusively on the Mexican market, which in of itself is huge.

“Later we will expand in Latin America. We see a very clear opportunity in similar markets across the region,” Corcuera said.

Homebrew Partner Satya Patel said his San Francisco-based VC firm believes there’s a massive opportunity in Latin America given the move to digital payments. The investment in Higo marks Homebrew’s third in the region in the past 18 months.

“This is an exceptional team focused on a problem that is visceral for businesses in Mexico in particular,” Patel told TechCrunch. “They are able to provide businesses with a real-time view of their cash flow and working capital. Without it, they are at risk. So the opportunity is to tackle this acute pain point being felt by a lot of businesses.”

The region’s payments ecosystem, he said, is still very nascent.

“Being the intermediary for B2B tax information gives Higo an opportunity to provide a real alternative to the traditional way Mexicans are used to doing banking and business,” Patel added.

News: OpenReel raises $19M to simplify remote video production

OpenReel, a startup that makes it easier for teams to record videos remotely, has raised $19 million in Series A funding. CEO Lee Firestone told me that he and CTO Joe Mathew first started a video agency together, but when they were given “a pretty significant project” that involved remote production, they weren’t satisfied with

OpenReel, a startup that makes it easier for teams to record videos remotely, has raised $19 million in Series A funding.

CEO Lee Firestone told me that he and CTO Joe Mathew first started a video agency together, but when they were given “a pretty significant project” that involved remote production, they weren’t satisfied with any of the existing solutions and ended up “spending over a year to build this technology.”

Of course, there are plenty of teams that have figured out their own approach to remote video production, particularly in the past year. (Here at TechCrunch, it’s mostly involved shipping cameras and lights to writers, followed by lots of tech troubleshooting conversations.)

But OpenReel’s “remote camera” technology is supposed to make the process much simpler, while also giving production members more control. The software allows a remote team member to control a webcam or mobile device, with up to four people viewing and directing the shoot in real time, with additional features like a teleprompter. The footage (which can be 4K quality) is stored locally, then automatically uploaded after the shoot.

“If you talk to our clients … they would have had to put together multiple different pieces of technology, shipping or not shipping things, and even with all that, they would not have gotten the quality and seamless experience for both sides,” Firestone said.

Not surprisingly, demand grew dramatically in 2020, with Firestone recalling that the platform went from supporting “thousands of video shoots a year” to “10 or 20 times that.”

In fact, the company said that annual recurring revenue has increased 12x over the past year as clients like Dell, HubSpot, ViacomCBS and TechCrunch’s parent company Verizon Media have used it to record things like marketing videos, internal communications, customer testimonials and more. It has more than 200 enterprise clients, as well as “hundreds” of small and medium business customers.

“There’s been a pent up demand for content in these organization that our technology sort of unlocks,” Firestone said. And he doesn’t anticipate that changing as in-person filming becomes safer post-pandemic.

The Series A comes from Five Elms Capital, bringing OpenReel’s total funding — debt and equity — to $23.9 million. Firestone said the money will allow the company to develop new product features (one possibility: support for livestreamed videos, rather than just pre-recorded footage), as well as continued global growth, after an international push last year that saw the platform launching across 125 countries.

“Five Elms loves investing in businesses that challenge the old way of doing things, and OpenReel does just that,” said Five Elms’ Thomas Kershisnik in a statement. “OpenReel has proven itself as an important component of the remote technology stack as well as a vital tool in the broader content creation toolbox empowering enterprises to enhance their content and create more of it.”

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