Monthly Archives: May 2021

News: Amazon is buying MGM Studios for $8.45B

The big media consolidation continues — day after rumors swirled around Amazon’s acquisition of MGM, the online massive retailer confirmed today that it will be acquiring the nearly 100-year-old studio for a cool $8.45 billion. The deal is another big step toward bolster Amazon’s fight in the streaming wars, with some 4,000 films. The list

The big media consolidation continues — day after rumors swirled around Amazon’s acquisition of MGM, the online massive retailer confirmed today that it will be acquiring the nearly 100-year-old studio for a cool $8.45 billion.

The deal is another big step toward bolster Amazon’s fight in the streaming wars, with some 4,000 films. The list includes the James Bond and Rocky series and classics ranging from Fargo to Robocop to Silence of the Lambs. Also included are more than 17,000 TV shows. Once the deal closes, the short term impact will be unfettered access for Amazon’s Prime Video platform, giving the service a leg up against rivals like Netflix, Hulu and HBO Max.

As we’ve seen with the launch of studio streaming platforms like Disney+, the deal will also likely result in that content being pulled from competing services, once existing contracts end. “The real financial value behind this deal is the treasure trove of IP in the deep catalog that we plan to reimagine and develop together with MGM’s talented team,” Amazon Studios/Prime Video SVP Mike Hopkins said in a release. “It’s very exciting and provides so many opportunities for high-quality storytelling.”

Amazon also says it will be making efforts to preserve older films. The press material includes all of the standard language you would expect about marrying the old with the new. Here’s MGM Board Chairman, Kevin Ulrich, “I am very proud that MGM’s Lion, which has long evoked the Golden Age of Hollywood, will continue its storied history, and the idea born from the creation of United Artists lives on in a way the founders originally intended, driven by the talent and their vision. The opportunity to align MGM’s storied history with Amazon is an inspiring combination.”

Amazon has, of course, already been making an aggressive push into original content through its own production studio and distribution. On the film side, it has produced notable titles like Manchester By the Sea, which nabbed a screenwriting Oscar and its list of shows includes Transparent. The company is also embarking on a massive (and massively expensive) series based on Lord of Rings.

While Amazon has thrived with massive coffers, MGM’s had a more difficult 21st century. In 2010, the studio filed for a prepackaged Chapter 11 bankruptcy after switching hands several times. The studio was reorganized and its creditors took control.

The deal is just the latest in a flurry of media consolidation, including Disney/Fox, Viacom/CBS and AT&T/Time Warner. As ever with these massive deals, the acquisition is pending all sorts of regulator scrutiny.

 

 

News: Facebook and Instagram will now allow users to hide ‘Like’ counts on posts

Facebook this week will begin to publicly roll out the option to hide Likes on posts across both Facebook and Instagram, following earlier tests beginning in 2019. The project, which puts the decision about Likes in the hands of the company’s global user base, had been in development for years, but was deprioritized due to

Facebook this week will begin to publicly roll out the option to hide Likes on posts across both Facebook and Instagram, following earlier tests beginning in 2019. The project, which puts the decision about Likes in the hands of the company’s global user base, had been in development for years, but was deprioritized due to the COVID-19 pandemic and the response work required on Facebook’s part, the company says.

Originally, the idea to hide Like counts on Facebook’s social networks was focused on depressurizing the experience for users. Often, users faced anxiety and embarrassment around their posts if they didn’t receive enough Likes to be considered “popular.” This problem was particularly difficult for younger users who highly value what peers think of them — so much so that they would take down posts that didn’t receive enough Likes.

Like-chasing on Instagram, especially, also helped create an environment where people posted to gain clout and notoriety, which can be a less authentic experience. On Facebook, gaining Likes or other forms of engagement could also be associated with posting polarizing content that required a reaction.

As a result of this pressure to perform, some users grew hungry for a “Like-free” safer space, where they could engage with friends or the wider public without trying to earn these popularity points. That, in turn, gave rise to a new crop of social networking and photo-sharing apps such as MinutiaeVeroDayflashOggl and, now, newcomers like Dispo and newly viral Poparazzi.

Though Facebook and Instagram could have chosen to remove Likes entirely and take its social networks in a new direction, the company soon found that the metric was too deeply integrated into the product experience to be fully removed. One key issue was how the influencer community today trades on Likes as a form of currency that allows them to exchange their online popularity for brand deals and job opportunities. Removing Likes, then, is not necessarily an option for these users.

Instagram realized that if it made a decision for its users, it would anger one side or the other — even if the move in either direction didn’t really impact other core metrics, like app usage.

Image Credits: Instagram

“How many likes [users] got, or other people got — it turned out that it didn’t actually change nearly as much about the experience, in terms of how people felt or how much they use experience, as we thought it would. But it did end up being pretty polarizing,” admitted Instagram head, Adam Mosseri. “Some people really liked it and some people really didn’t.”

“For those who liked it, it was mostly what we had hoped — which is that it depressurized the experience. And, for those who didn’t, they used Likes to get a sense for what was trending or was relevant on Instagram and on Facebook. And they were just super annoyed that we took it away,” he added. This latter group sometimes included smaller creators still working on establishing a presence across social media, though larger influencers were sometimes in favor of Like removals. (Mosseri name-checked Katy Perry as being pro Like removals, in fact.)

Ultimately, the company decided to split the difference. Instead of making a hard choice about the future of its online communities, it’s rolling out the “no Likes” option as a user-controlled setting on both platforms.

On Instagram, both content consumers and content producers can turn on or off Like and View counts on posts — which means you can choose to not see these metrics when scrolling your own Feed and you can choose whether to allow Likes to be viewed by others when you’re posting. These are configured as two different settings, which provides for more flexibility and control.

Image Credits: Instagram

On Facebook, meanwhile, users access the new setting from the “Settings & Privacy” area under News Feed Settings (or News Feed Preferences on desktop). From here, you’ll find an option to “Hide number of reactions” to turn this setting off for both your own posts and for posts from others in News Feed, groups and Pages.

The feature will be made available to both public and private profiles, Facebook tells us, and will include posts you’ve published previously.

Image Credits: Facebook

Instagram last month restarted its tests on this feature in order to work out any final bugs before making the new settings live for global users, and said a Facebook test would come soon. But it’s now forging ahead with making the feature available publicly. When asked why such a short test, Instagram told TechCrunch it had been testing various iterations on this experience since 2019, so it felt it had enough data to proceed with a global launch.

Mosseri also pushed back at the idea that a decision on Likes would have majorly impacted the network. While removal of Likes on Instagram had some impact on user behavior, he said, it was not enough to be concerning. In some groups, users posted more — signaling that they felt less pressure to perform, perhaps. But others engaged less, Mosseri said.

Image Credits: Facebook

“Often people say, ‘oh, this has a bunch of Likes. I’m gonna go check it out,’ ” the exec explained. “Then they read the comments, or go deeper, or swipe to the carousel. There’s been some small effects — some positive, some negative — but they’ve all been small,” he noted. Instagram also believes users may toggle on and off the feature at various times, based on how they’re feeling.

In addition, Mosseri pointed out, “there’s no rigorous research that suggests Likes are bad for people’s well-being” — a statement that pushes back over the growing concerns that a gamified social media space is bad for users’ mental health. Instead, he argued that Instagram is still a small part of people’s day, so how Likes function doesn’t affect people’s overall well-being.

“As big as we are, we have to be careful not to overestimate our influence,” Mosseri said.

He also dismissed some of the current research pointing to negative impacts of social media use as being overly reliant on methodologies that ask users to self-report their use, rather than measure it directly.

In other words, this is not a company that feels motivated to remove Likes entirely due to the negative mental health outcomes attributed to its popularity metrics.

It’s worth mentioning that another factor that could have come into play here is Instagram’s plan to make a version of its app available to children under the age of 13, as competitor TikTok did following its FTC settlement. In that case, hiding Likes by default — or perhaps adding a parental control option — would necessitate such a setting. Instagram tells TechCrunch that, while it’s too soon to know what it would do with a kids app, it will “definitely explore” a no Likes by default option.

Facebook and Instagram both told TechCrunch the feature will roll out starting on Wednesday but will reach global users over time. On Instagram, that may take a matter of days.

Facebook, meanwhile, says a small percentage of users will have the feature Wednesday — notified through an alert on News Feed — but it will reach Facebook’s global audience “over the next few weeks.”

News: Lightrun raises $23M for its debugging and observability platform

Lightrun, a startup that helps developers debug their live production code, today announced that it has raised a $23 million Series A round led by Insight Partners. Glilot Capital Partners, which led the company’s $4 million seed round, also participated in this round. What makes Lightrun stand out in a sea of monitoring startups is

Lightrun, a startup that helps developers debug their live production code, today announced that it has raised a $23 million Series A round led by Insight Partners. Glilot Capital Partners, which led the company’s $4 million seed round, also participated in this round.

What makes Lightrun stand out in a sea of monitoring startups is its focus on developers (more so than IT teams) and its ability to help developers debug their production code right from their IDEs. With a few keystrokes, they can also instrument the code for monitoring, but the key here is that Lightrun offers what the company calls an “ops-free” process that puts the developers in control. This “shift-left” approach moves the application monitoring process away from ops-centric tools like Splunk and New Relic and instead puts them right into the workspaces with which developers are already familiar.

“The observability market has been very oriented towards IT operators. When an IT operator gets that dreaded page that a service is down, they see health metrics on running instances on servers and have a variety of failover methods and ways to restore service health,” Lightrun co-founder and CEO Ilan Peleg explained. “And they do this all natively on the same interfaces that they use every day for systems management. But when a developer gets that dreaded notification that there is a bug, it’s like the early stages of a crime scene investigation that has no suspects and usually only minor clues.”

Currently, the service only supports Java and the IntelliJ development environment, but the team plans to expand its language and platform coverage by adding support for Python and Node.js, as well as additional IDEs.

“We’ve seen a number of observability solutions joining the market, but found Lightrun’s shift-left approach to be truly unique,” said Teddie Wardi, managing director, Insight Partners, who led the round and will join the board of directors. “The main point of shifting observability to the left in the software development lifecycle is incorporating observability into the day-to-day developer workflow. Lightrun makes observability more ops-free, real-time and ergonomic to the development process than any other platform, and we believe they are in a position to capture a large international market of development teams at enterprises that prioritize rapid feature development and frequent shipping.”

The company recently launched a free community edition of its service and introduced a set of new integrations with services like Datadog, IntelliJ IDEA, Logz.io, Prometheus, Slack and StatsD. Some of Lightrun’s current customers include Taboola, Sisense and Tufin.

The company doubled its employee count over the course of the last year. It will continue to use the new funding to expand its developer community and hire across functions. The company also plans to expand its U.S. presence.

 

News: Tractive raises $35M as it expands GPS pet tracking to the US

Another sizable raise for a pet (cats and dogs) tracking company this morning. Austria-based Tractive has announced a $35 million Series A, led by Guidepost Growth Equity. The round is the company’s first since 2013, when its GPS-based tracker first hit the market. Along with the funding round, the company is also announcing its official

Another sizable raise for a pet (cats and dogs) tracking company this morning. Austria-based Tractive has announced a $35 million Series A, led by Guidepost Growth Equity. The round is the company’s first since 2013, when its GPS-based tracker first hit the market.

Along with the funding round, the company is also announcing its official push into the U.S. market — though Tractive has had some presence here through a “soft launch” of an LTE tracker over the summer. That product apparently made the States its fastest growing market, in spite of a lack of official presence.

The funding will go toward its expansion into the U.S./North American market, along with additional scaling and headcount. For the latter, the company is already naming a new EVP of North America and a VP of marketing.

“Tractive is like a seatbelt for your dog or cat. It provides coverage when and where they need it,” said co-founder and CEO Michael Hurnaus in a release. “We designed Tractive to deliver the best possible experience, with up-to-the-second information, so that all pet parents can care for their dogs and cats the way they want and deserve — whether that means monitoring activity levels to reduce the risk of obesity or tracking a dog or cat that slipped out of the yard.”

Also new is the arrival of an upgraded tracker from the company, primarily focused on improved battery life. The big change is the use of Wi-Fi to reduce battery strain when a pet is in the home. The company says it’s able to bump up battery life up to 5x. The tracker is available for $50 in the U.S., plus a monthly subscription fee.

In February, smart pet collar maker Fi announced a $30 million Series B.

 

News: Skiff, an end-to-end encrypted alternative to Google Docs, raises $3.7M seed

Imagine if Google Docs was end-to-end encrypted so that not even Google could access your documents. That’s Skiff, in a nutshell. Skiff is a document editor with a similar look and feel to Google Docs, allowing you to write, edit and collaborate in real-time with colleagues with privacy baked in. Because the document editor is

Imagine if Google Docs was end-to-end encrypted so that not even Google could access your documents. That’s Skiff, in a nutshell.

Skiff is a document editor with a similar look and feel to Google Docs, allowing you to write, edit and collaborate in real-time with colleagues with privacy baked in. Because the document editor is built on a foundation of end-to-end encryption, Skiff doesn’t have access to anyone’s documents — only users, and those who are invited to collaborate, do.

It’s an idea that has already attracted the attention of investors. Skiff’s co-founders Andrew Milich (CEO) and Jason Ginsberg (CTO) announced today that the startup has raised $3.7 million in seed funding from venture firm Sequoia Capital, just over a year since Skiff was founded in March 2020. Alphabet chairman John Hennessy, former Yahoo chief executive Jerry Yang, and Eventbrite co-founders Julia and Kevin Hartz also participated in the round.

Milich and Ginsberg told TechCrunch that the company will use the seed funding to grow the team and build out the platform.

Skiff isn’t that much different from WhatsApp or Signal, which are also end-to-end encrypted, underneath its document editor. “Instead of using it to send messages to a bunch of people, we’re using it to send little pieces of documents and then piecing those together into a collaborative workspace,” said Milich.

But the co-founders acknowledged that putting your sensitive documents in the cloud requires users to put a lot of trust into the startup, particularly one that hasn’t been around for long. That’s why Skiff published a whitepaper with technical details of how its technology works, and has begun to open source parts of its code, allowing anyone to see how the platform works. Milich said Skiff has also gone through at least one comprehensive security audit, and the company counts advisors from the Signal Foundation to Trail of Bits.

It seems to be working. In the months since Skiff soft-launched through an invite-only program, thousands of users — including journalists, research scientists and human rights lawyers — use Skiff every day, with another 8,000 users on a waitlist.

“The group of users that we’re most excited about are just regular people that care about privacy,” said Ginsberg. “There are just so many privacy communities and people that are advocates for these types of products that really care about how they’re built and have sort of lost trust in big companies.”

“They’re using us because they’re really excited about the vision and the future of end-to-end encryption,” he said.

News: Insurtech startup Obie raises $10.7M Series A led by Battery Ventures

Obie, which has developed an insurtech platform for landlords, has raised $10.7 million in a Series A funding round led by Battery Ventures. Thomvest Ventures, Funders Club, MetaProp and Second Century Ventures also participated in the financing. If this sounds like a niche offering, that’s because it is. Obie’s software specifically targets small-to-medium size apartment

Obie, which has developed an insurtech platform for landlords, has raised $10.7 million in a Series A funding round led by Battery Ventures.

Thomvest Ventures, Funders Club, MetaProp and Second Century Ventures also participated in the financing.

If this sounds like a niche offering, that’s because it is. Obie’s software specifically targets small-to-medium size apartment landlords who own single-family rentals and/or larger apartment buildings.  

Chicago-based Obie — which also went through the Y Combinator program — says its platform stands out because it offers instant quotes (by instant, they mean in about three to five minutes). The company also claims to save policyholders up to 25-30% compared to other insurance premiums. Over the past year, Obie has secured insurance for over $3 billion worth of property.

Obie co-founders (and brothers) Aaron and Ryan Letzeiser have taken their respective backgrounds in insurance and real estate private equity to build out the Obie platform. They are operating under the premise that despite being the largest class of real estate investors in the U.S, this group of landlords “is significantly underserved.”

“Generally SMB landlords have been ignored in the market, and there’s 11 million of them,” Aaron said. “And we beat target premiums, on average, by 31.7%.”

The demand appears to be there. According to the pair, Obie saw its premiums climb to about $1 million in its first 12 months of being in business. Over the last 12 months, that number has climbed to about $10 million.

In conjunction with its funding announcement, Obie also announced today the extension of its property and casualty insurance to all 50 states.

Image Credits: Obie

So, how does it work? Landlords and investors answer a series of questions on Obie’s site. The platform extracts a few data points from client responses, which its technology then combines with public and private data points such as the proximity of the landlord to the property. (This can be an indicator of how quickly a landlord can conduct proactive and preventative maintenance and general attentiveness to tenant issues.) 

Once Obie runs its analysis, the platform uses a “proprietary” algorithm to match an application to carriers based on what they describe as “risk-appetite” profiles. For example, some carriers don’t want to cover properties built before a certain year. The platform then provides the landlords and property owners with a quote. If they’re OK with the quote, landlords can be “immediately underwritten,” according to the company. 

At its core, said Ryan, the brothers want to make Obie “the easiest way for landlords to get the insurance that they need.” 

The company plans to use its new capital to expand upon its product and “really try to own the entire vertical.”

“Historically, we’ve been an agency-based business but we are in the process of putting together our own product that is slated to roll out right at the end of the second quarter,” said Aaron. “Very similar to Lemonade and Hippo, and we’re doing it with a large insurer that’s backing us.”

In other words, Obie believes it has validated its brokerage model in the market and is now planning to use the data it’s been able to gather to become its own carrier. The company expects the rollout to take time, so until it gets approval in all 50 states, it will partner with other carriers.

“Our goal at the end of the day is to go from agency to eventually carrier,” said Ryan. “This is a tried and true path. Next has done it. Hippo has done it. Lemonade has done it.” 

The brothers believe their backgrounds allow them “to speak the same language” to their clients. 

“We have lived the pain points of our clients so we can understand how the price of the premium of coverage experience plays into the overall business strategy,” Aaron said.

Battery Ventures’ Michael Brown, who has taken a seat on Obie’s board, agrees the embedded nature of the startup’s offering gives them a competitive advantage.

“Allowing their end customers to buy professional liability or general liability or commercial auto right from the vertical software that is servicing their business is really interesting and a great distribution channel for Obie,” Brown told TechCrunch. “Landlords can go direct or through their channel partners.”

Brown says Battery — as long-term investors in the insurance sector — was also attracted to the fact that Obie is focused on commercial lines rather than personal because the firm believes “they are larger markets, less competitive and can probably drive higher value just given the overall size of the premiums involved.”

News: Uptycs secures $50M Series C as security platform continues to expand

Uptycs, a Boston-area startup that uses data to help understand and prevent security attacks, announced a $50 million Series C today, 11 months after announcing a $30 million Series B. Norwest Venture Partners led the round with participation from Sapphire Ventures and ServiceNow Ventures. Company co-founder and CEO Ganesh Pai says that he was still

Uptycs, a Boston-area startup that uses data to help understand and prevent security attacks, announced a $50 million Series C today, 11 months after announcing a $30 million Series B. Norwest Venture Partners led the round with participation from Sapphire Ventures and ServiceNow Ventures.

Company co-founder and CEO Ganesh Pai says that he was still well capitalized from last year’s investment, and wasn’t actually looking to raise funds, but the investors came looking for him and he saw a way to speed up some aspects of the company’s roadmap.

“It was one of those things where the round came in primarily as a function of execution and success to date, and we decided to capitalize on that because we know the partners and raised the capital so that we could use it meaningfully for a couple of different things, primarily sales and marketing acceleration,” Pai said.

He said that part of the reason for the company’s success over the last year was that the pandemic generated more customer interest as people moved to work from home, the SolarWinds hack happened and companies were moving to the cloud faster. “We provided a solution which was telemetric powered and very insightful when it came to solving their security problems and that’s what led to triple digit growth over the last year,” he said.

But Pai says that the company has not been sitting still in terms of the platform. While last year, he described it primarily as a forensic security data solution, helping customers figure out what happened after a security issue has happened, he says that the company has begun expanding on that vision to include all four main areas of security including being proactive, reactive, predictive and protective.

The company started primarily in being reactive by figuring what happened in the past, but has begun to expand into these other areas over the last year, and the plan is to continue to build out that functionality.

“In the context of SolarWinds, what everyone is trying to figure out is how soon into the supply chain can you figure out what could be potentially wrong by looking at indications of behavior or indications of compromise, and our ability to ingest telemetry from a diverse set of sources, not as a bolt on solution, but something which is built from the ground up, resonated really well,” Pai explained.

The company had 65 employees when we spoke last year for the Series B. Today, Pai says that number is approaching 140 and he is adding new people every week with a goal to get to around 200 people by the end of the year. He says as the company grows, he keeps diversity top of mind.

“As we grow and as we raise capital diversity has been something which has been a high priority and very critical for us,” he said. In fact, he reports that more than 50% of his employees come from under-represented groups whether it’s Latinx, Black or Asian heritage.

Pai says that one of the reasons he has been able to build a diverse workforce is his commitment to a remote workplace, which means he can hire from anywhere, something he will continue to do even after the pandemic ends.

 

News: India says WhatsApp’s lawsuit over new regulations a clear act of defiance

India said on Wednesday WhatsApp’s lawsuit challenging the new local IT rules is an “unfortunate last moment” attempt to prevent new regulations from going into effect in a clear act of defiance, and said the Facebook-owned firm didn’t raise any specific objection in writing to the traceability requirement after October 2018. Ravi Shankar Prasad, India’s Electronics

India said on Wednesday WhatsApp’s lawsuit challenging the new local IT rules is an “unfortunate last moment” attempt to prevent new regulations from going into effect in a clear act of defiance, and said the Facebook-owned firm didn’t raise any specific objection in writing to the traceability requirement after October 2018.

Ravi Shankar Prasad, India’s Electronics and IT Minister, said WhatsApp’s refusal to comply with the guidelines, the deadline of which expired Wednesday, is a “clear act of defiance of a measure whose intent can certainly not be doubted.”

WhatsApp sued the Indian government earlier on Wednesday in a Delhi High Court, saying the world’s second largest internet market’s new IT rules could allow authorities to make people’s private messages “traceable,” and conduct mass surveillance.

India is the largest market by users for the Facebook-owned popular instant messaging service. According to government estimates, WhatsApp has amassed over 530 million users in India.

Prasad said any company’s operations in India is “subject to the law of the land.”

One one hand, “WhatsApp seeks to mandate a privacy policy wherein it will share the data of all its user with its parent company, Facebook, for marketing and advertising purposes,” he added. “On the other hand, WhatsApp makes every effort to refuse the enactment of the Intermediary Guidelines which are necessary to uphold law and order and curb the menace of fake news.”

The Ministry of Electronics and IT said New Delhi needs to trace the first originator of a message for the “purposes of prevention, investigation, punishment etc. of inter alia an offence relating to sovereignty, integrity and security of India, public order incitement to an offence relating to rape, sexually explicit material or child sexual abuse material punishable with imprisonment for not less than five years.”

“It is in public interest that who started the mischief leading to such crime must be detected and punished. We cannot deny as to how in cases of mob lynching and riots etc. repeated WhatsApp messages are circulated and recirculated whose content are already in public domain. Hence the role of who originated is very important.”

This is a developing story. More to follow…

News: Axle raises $10m Series A to advance its freight financing services

Axle recently announced it raised $10m in Series A financing after a stellar year of growth. The round was led by Crosslink Capital with participation from FJ Labs, Flexport, Tribeca Early Stage Partners, and others including existing investors Anthemis Group, Techstars, and Plug and Play Ventures. In a press release, the company points to the

Axle recently announced it raised $10m in Series A financing after a stellar year of growth. The round was led by Crosslink Capital with participation from FJ Labs, Flexport, Tribeca Early Stage Partners, and others including existing investors Anthemis Group, Techstars, and Plug and Play Ventures.

In a press release, the company points to the past 12 months of operations where it saw volume grow 850% on its payments and financing platform designed specifically for freight brokers and carriers. The company’s services allows incumbent operators to quickly modernize and compete against new startups. Axle says its solutions also automates carrier payments, involving, and collections, which allows operators to connect all aspects of their fright operations.

Axle anticipates using the new capital to expand operations, develop new services, and strength the company’s payment and financing platform.

Co-founders Bharath Krishnamoorthy and Shawn Vo founded the company in 2019. The company raised a $1.4 million pre-seed round from Trucks VC in 2020, followed by a $2.7m seed round from Techstars and Anthemis Group and a $27.7 million debt and equity round later that year.

CEO and co-founder, Bharath Krishnamoorthy, says in a released statement “Axle’s proprietary technology levels the playing field, so our customers can compete in a highly competitive market. With our financial platform, we’re empowering freight intermediaries to rapidly grow and differentiate their businesses in a cutthroat industry. We’re excited to partner with Crosslink to transform the freight and logistics industry.”

Crosslink Capital partner David Silverman says Krishnamoorthy and Vo established themselves as an industry leader in freight factoring and payment processing, and points to the company’s previous 12 month as being impressive. “We look forward to helping them scale operations,” he says.

News: Salt Security lands $70M for tech to protect APIs from malicious abuse

APIs make the world go round in tech, but that also makes them a very key target for bad actors: as doorways into huge data troves and services, malicious hackers spent a lot of time looking for ways to pick their locks or just force them open when they’re closed, in order to access that

APIs make the world go round in tech, but that also makes them a very key target for bad actors: as doorways into huge data troves and services, malicious hackers spent a lot of time looking for ways to pick their locks or just force them open when they’re closed, in order to access that information. And a lot of recent security breaches stemming from API vulnerabilities (see here, here, and here for just a few) show just how real and current the problem is.

Today, a company that’s building a network of services to help those using and producing APIs to identify and eradicate those risks is announcing a round of funding to meet a growing demand for its services. Salt Security, which provides AI-based technology to identify issues and stop attacks across the whole of your API library, has closed $70 million in funding, money that it will be using both to meet current demand but also continue building out its technology for a wider set of services and use cases for API management.

The funding is being led by Advent International, by way of Advent Tech, with Alkeon Capital, DFJ Growth and previous backers Sequoia Capital, Tenaya Capital, S Capital VC, and Y Combinator all also participating.

Salt, founded in Israel and now active globally, is not disclosing valuation but I understand from a reliable source it that it is in the region of $600-700 million.

As with many of the funding rounds that seem to be getting announced these days, this one is coming on the heels of both another recent round, as well as strong growth. Salt has raised $131 million since 2016, but nearly all of that — $120 million, to be exact — has been raised in the last year.

Part of the reason for that is Salt’s performance: in the last 12 months, it’s seen revenue grow 400% — with customers including a range of Fortune 500 and other large businesses in the financial services, retail and SaaS sectors like Equinix, Finastra, TripActions, Armis, and DeinDeal; headcount grow 160%; and, perhaps most importantly, API traffic on its network grow 380%.

That growth in API traffic underscores the issue that Salt is tackling. Companies these days use a variety of APIs — some private, some public — in their tech stack as a way to interface with other businesses and run their services. APIs are a huge part of how the Internet and digital services operate, with Akamai estimating that as much as 83% of all IP traffic is API traffic.

The problem, Roey Eliyahu, CEO and co-founder of Salt Security told me, is that this usage has outpaced how well many manage those APIs.

“How APIs have evolved is very different to how developers used APIs years ago,” he said. “Before, there were very few, and you could say they were more manageable, and they contained less sensitive data, and there were very few changes and updates made to them,” he said. “Today with the pace of development, not only are they always getting updated, but you have thousands of them now touching crown jewels of the company.”

This has made them a prime target for malicious hackers. Eliyahu notes Gartner stats that predict that by 2022, APIs will make up the largest attack vector in cybercrime.

Salt’s approach starts with taking stock of a whole network and doing a kind of spring clean to find all the APIs that might be used or abused.

“Companies don’t know how many APIs they even have,” Eliyahu said, noting that there some 40%-80% of the APIs in existence for a typical company’s data are not even in active operation, lying there as “shadow APIs” for someone to pick up and misuse.

It then looks at what vulnerabilities might inadvertently be contained in this mix and makes suggestions for how to alter them to fix that. After this, it also monitors how they are used in order to stop attacks as they happen. The third of these also involves remediation “insights”, but carrying out the remediation is done by third parties at the moment, Eliyahu said. All of this is done through Salt’s automated, AI-based, flagship Salt Security API Protection Platform.

There are a number of competitors in the same space as Salt, including Ping, and newer players like Imvision and 42Crunch (which raised funding earlier this month), and the list is likely to grow as not just other API management companies get deeper into this huge space, but cyber security companies do, too.

“The rapid proliferation of APIs has dramatically altered the attack surface of applications, creating a major challenge for large enterprises since existing security mechanisms cannot protect against this new threat,” said Bryan Taylor, managing partner and head of Advent’s technology team, in a statement. “We continue to see API security incidents make the news headlines and cause significant reputational risk for companies. As we investigated the API security market, Salt stood out for its multi-year technical lead, significant customer traction and references, and talented team. We look forward to drawing on our deep experience in this sector to partner with Salt in this exciting new chapter.”

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