Monthly Archives: May 2021

News: Startup studio eFounders reaches portfolio valuation of $2 billion

European startup studio eFounders has now been around for 10 years. And because a birthday sounds like a good opportunity to share some metrics, the portfolio companies have reached a valuation of $2 billion together — only 18 months after reaching $1 billion. eFounders says it is focused on building the future of work. In practical

European startup studio eFounders has now been around for 10 years. And because a birthday sounds like a good opportunity to share some metrics, the portfolio companies have reached a valuation of $2 billion together — only 18 months after reaching $1 billion.

eFounders says it is focused on building the future of work. In practical terms, it means the company is building B2B SaaS startups with a focus on productivity and workflows. For instance, Front, Aircall and Spendesk all started with eFounders.

There have been a few exits, such as TextMaster, Mention, Mailjet, Hivy and Briq. Those exits are included in the total valuation of eFounders companies —  exit values are freezed as of date of exit. But Front, Aircall and Spendesk could represent even more massive successes down the road.

“When we started in 2011, there was an existing model that was Rocket Internet. We liked the entrepreneurship spirit but we didn’t like the philosophy,” co-founder and CEO Thibaud Elzière told me.

Instead of copying Rocket Internet altogether, they altered the business model quite drastically on three different aspects:

  • They try to come up with original startup ideas, not copycats;
  • They want to work with entrepreneurs, not consultants-turned-entrepreneurs;
  • Their portfolio companies should be able to operate on their own after 12 to 18 months.

When eFounders come up with a new project, they act as a sort of third co-founder. The startup studio tries to find a CEO and a CTO. In exchange for a third of equity, the eFounders core team helps take the project off the ground. When the startup raises a seed round, eFounders moves on from day-to-day activities and focuses on new projects.

And it’s been working well. With 30 portfolio companies, there are now 1,500 people working for an eFounders-backed company. Combined, they generate $131 million in annual recurring revenue.

As for the next 10 years, Elzière doesn’t think eFounders can simply increase the cadence and launch more and more projects. “It’s a model that isn’t scalable — it’s hand crafted,” he said.

There are two ways to expand. First, eFounders is going to focus on more verticals. That’s why the startup studio partnered with Camille Tyan so that he would be in charge of fintech projects. You can imagine another studio for blockchain startups, another one for AI startups, etc.

“We want to remain focused on software with a B2B angle — not enterprise but long-tail B2B. We don’t pretend to be a general-purpose studio, but we can acquire specific skills and knowledge on specific topics,” Elzière said.

If there are some liquidity events with some of the most successful eFounders companies, the startup studio is also going to use part of its cash to invest in other companies. This eFounders fund would focus on seed investments in SaaS companies with a hands-on approach.

But having more money isn’t necessarily a bad thing as SaaS products today don’t look like SaaS products from ten years ago.

“Creating a SaaS company today is a lot more complicated and more expensive,” Elzière said. “People who use Notion tell you that Notion is slow because it takes more than 100 milliseconds to load a page. People expect the same thing in consumer apps and in SaaS when it comes to performance, design and experience.”

“Companies raise more and more money because there’s a lot of money available, but also because it takes more and more time and skills in order to build a product,” he added.

News: Proton, the privacy startup behind e2e encrypted ProtonMail, confirms passing 50M users

End-to-end encrypted email provider ProtonMail has officially confirmed it’s passed 50 million users globally as it turns seven years old. It’s a notable milestone for a services provider that intentionally does not have a data business — opting instead for a privacy pledge based on zero access architecture that means it has no way to

End-to-end encrypted email provider ProtonMail has officially confirmed it’s passed 50 million users globally as it turns seven years old.

It’s a notable milestone for a services provider that intentionally does not have a data business — opting instead for a privacy pledge based on zero access architecture that means it has no way to decrypt the contents of ProtonMail users’ emails.

Although, to be clear, the 50M+ figure applies to total users of all its products (which includes a VPN offering), not just users of its e2e encrypted email. (It declined to break out email users vs other products when we asked.)

Commenting in a statement, Andy Yen, founder and CEO, said: “The conversation about privacy has shifted surprisingly quickly in the past seven years. Privacy has gone from being an afterthought, to the main focus of a lot of discussions about the future of the Internet. In the process, Proton has gone from a crowdfunded idea of a better Internet, to being at the forefront of the global privacy wave. Proton is an alternative to the surveillance capitalism model advanced by Silicon Valley’s tech giants, that allows us to put the needs of users and society first.”

ProtonMail, which was founded in 2014, has diversified into offering a suite of products — including the aforementioned VPN and a calendar offering (Proton Calendar). A cloud storage service, Proton Drive, is also slated for public release later this year.

For all these products it claims take the same ‘zero access’ hands off approach to user data. Albeit, it’s a bit of an apples and oranges comparison to compare e2e encrypted email with an encrypted VPN service — since the issue with VPN services is that they can see activity (i.e. where the encrypted or otherwise packets are going) and that metadata can sum to a log of your Internet activity (even with e2e encryption of the packets themselves).

Proton claims it doesn’t track or record its VPN users’ web browsing. And given its wider privacy-dependent reputation that’s at least a more credible claim vs the average VPN service. Nonetheless, you do still have to trust Proton not to do that (or be forced to do that by, for e.g., law enforcement). It’s not the same technical ‘zero access’ guarantee as it can offer for its e2e encrypted email.

Proton does also offer a free VPN — which, as we’ve said before, can be a red flag for data logging risk — but the company specifies that users of the paid version subsidize free users. So, again, the claim is zero logging but you still need to make a judgement call on whether to trust that.

From Snowden to 50M+

Over ProtonMail’s seven year run privacy has certainly gained cache as a brand promise — which is why you can now see data-mining giants like Facebook making ludicrous claims about ‘pivoting’ their people-profiling surveillance empires to ‘privacy’. So, as ever, PR that’s larded with claims of ‘respect for privacy’ demands very close scrutiny.

And while it’s clearly absurd for an adtech giant like Facebook to try to cloak the fact that its business model relies on stripping away people’s privacy with claims to the contrary, in Proton’s case the privacy claim is very strong indeed — since the company was founded with the goal of being “immune to large scale spying”. Spying such as that carried out by the NSA.

ProtonMail’s founding idea was to build a system “that does not require trusting us”.

While usage of e2e encryption has grown enormously since 2013 — when disclosures by NSA whistleblower, Edward Snowden, revealed the extent of data gathering by government mass surveillance programs, which were shown (il)liberally tapping into Internet cables and mainstream digital services to grab people’s data without their knowledge or consent — growth that’s certainly been helped by consumer friendly services like ProtonMail making robust encryption far more accessible — there are worrying moves by lawmakers in a number of jurisdictions that clash with the core idea and threaten access to e2e encryption.

In the wake of the Snowden disclosures, ‘Five Eyes’ countries steadily amped up international political pressure on e2e encryption. Australia, for example, passed an anti-encryption law in 2018 — which grants police powers to issue ‘technical notices’ to force companies operating on its soil to help the government hack, implant malware, undermine encryption or insert backdoors at the behest of the government.

While, in 2016, the UK reaffirmed its surveillance regime — passing a law that gives the government powers to compel companies to remove or not implement e2e encryption. Under the Investigatory Powers Act, a statutory instrument called a Technical Capability Notice (TCN) can be served on comms services providers to compel decrypted access. (And as the ORG noted in April, there’s no way to track usage as the law gags providers from reporting anything at all about a TCN application, including that it even exists.)

More recently, UK ministers have kept up public pressure on e2e encryption — framing it as an existential threat to child protection. Simultaneously they are legislating — via an Online Safety Bill, out in draft earlier this month — to put a legally binding obligation on service providers to ‘prevent bad things from happening on the Internet’ (as the ORG neatly sums it up). And while still at the draft stage, private messaging services are in scope of that bill — putting the law on a potential collision course with messaging services that use e2e encryption.

The U.S., meanwhile, has declined to reform warrantless surveillance.

And if you think the EU is a safe space for e2e encryption, there are reasons to be concerned in continental Europe too.

EU lawmakers have recently made a push for what they describe as “lawful access” to encrypted data — without specifying exactly how that might be achieved, i.e. without breaking and/or backdooring e2e encryption and therefore undoing the digital security they also say is vital.

In a further worrying development, EU lawmakers have proposed automated scanning of encrypted communications services — aka a provision called ‘chatcontrol’ that’s ostensibly targeted at prosecuting those who share child exploitation content — which raises further questions over how such laws might intersect with ‘zero access’ services like ProtonMail.

The European Pirate Party has been sounding the alarm — and dubs the ‘chatcontrol’ proposal “the end of the privacy of digital correspondence” — warning that “securely encrypted communication is at risk”.

A plenary vote on the proposal is expected in the coming months — so where exactly the EU lands on that remains to be seen.

ProtonMail, meanwhile, is based in Switzerland which is not a member of the EU and has one of the stronger reputations for privacy laws globally. However the country also backed beefed-up surveillance powers in 2016 — extending the digital snooping capabilities of its own intelligence agencies.

It does also adopt some EU regulations — so, again, it’s not clear whether or not any pan-EU automated scanning of message content could end up being applied to services based in the country.

The threats to e2e encryption are certainly growing, even as usage of such properly private services keeps scaling.

Asked whether it has concerns, ProtonMail pointed out that the EU’s current temporary chatcontrol proposal is voluntary — meaning it would be up to the company in question to decide its own policy. Although it accepts there is “some support” in the Commission for the chatcontrol proposals to be made mandatory.

“It’s not clear at this time whether these proposals could impact Proton specifically [i.e. if they were to become mandatory],” the spokesman also told us. “The extent to which a Swiss company like Proton might be impacted by such efforts would have to be assessed based on the specific legal proposal. To our knowledge, none has been made for now.”

“We completely agree that steps have to be taken to combat the spread of illegal explicit material. However, our concern is that the forced scanning of communications would be an ineffective approach and would instead have the unintended effect of undermining many of the basic freedoms that the EU was established to protect,” he added. “Any form of automated content scanning is incompatible with end-to-end encryption and by definition undermines the right to privacy.”

So while Proton is rightly celebrating that a steady commitment to zero access infrastructure over the past seven years has helped its business grow to 50M+ users, there are reasons for all privacy-minded folk to be watchful of what the next years of political developments might mean for the privacy and security of all our data.

 

News: IFA Berlin 2021 is canceled, citing ‘uncertainties’ around vaccine rollouts

After IFA became one of an extremely small number of in-person trade shows in 2020, the gfu Consumer & Home Electronics GmbH is pulling the plug on this year’s event. Initially planned for September 3-7 at the Messe in Berlin, the large-scale consumer electronics trade show is going on hiatus. Among other concerns, organizer are

After IFA became one of an extremely small number of in-person trade shows in 2020, the gfu Consumer & Home Electronics GmbH is pulling the plug on this year’s event. Initially planned for September 3-7 at the Messe in Berlin, the large-scale consumer electronics trade show is going on hiatus.

Among other concerns, organizer are citing the emergency of Covid-19 variants and concerns around the speed and consistency with which vaccines have been rolled out globally.

We planned, hoped and tried to make the impossible possible – and yet had to cancel #IFA2021. We’re #heartbroken, but full of confidence for #IFA2022!#seeyouatIFA2022https://t.co/VzBGNTCvFA pic.twitter.com/ZvM2FCnLv1

— IFA Berlin (@IFA_Berlin) May 19, 2021

“Ultimately, several key global health metrics did not move as fast in the right direction as had been hoped for – from the rapid emergence of new COVID-19 variants, for example in South Asia, to continued uncertainties about the speed of the rollout of vaccination programmes around the world,” the organization said in a press release. “This in turn is adding uncertainty for the companies that were committed or interested in coming to Berlin, as well as media and visitors – all of whom have to plan well ahead with regards to budgets, investments and travel – not just for IFA, but all similar events around the world.”

Another key issue here is the Messe Berlin (convention center) has been – and continues to be – used as both an emergency medical facility and a vaccination center. The planned Berlin Photo Week at ARENA Berlin and SHIFT Mobility events will continue. IFA, meanwhile, is set to return on September 2, 2022.

The news comes as a number of high profile exhibitors have opted not to exhibit in-person at MWC late next month in Barcelona. The list, thus far, includes Qualcomm, Google, IBM, Nokia, Sony, Oracle, Ericsson, Samsung and Lenovo. As with IFA before it, MWC’s organizers are citing a number of safety precautious and likely – given travel restrictions, MIA exhibitors and a general sense of caution even among vaccinated people – a scaled back event.

MWC will be something of a hybrid event, with both online and in-person exhibits. IFA, meanwhile, appears to be canceled outright. The Berlin show is notably different than other consumer trade shows in that it is partially open to the public.

News: Spotify launches a virtual concert series with The Black Keys and more

The past year has been utterly devastating to the music industry generally, and live music in particular. Artists who make a living touring have been forced to find alternative ways to make ends meet, while those among us who once frequented live events have been looking for ways to plug the hole created by wide-scale

The past year has been utterly devastating to the music industry generally, and live music in particular. Artists who make a living touring have been forced to find alternative ways to make ends meet, while those among us who once frequented live events have been looking for ways to plug the hole created by wide-scale shutdowns.

A number of music-related platforms have spent much of the pandemic looking to offer some semblance of the concert-going experience, ranging from live venues to services like Bandcamp. Today, Spotify is announcing the launch of a new feature designed to provide a live-show experience remotely. Venues in many areas are beginning to reopen, but even fans may be cautious to return to packed, indoor events.

The streaming service is announcing a series of shows starting with dates this month and next, including names like The Black Keys, Rag’n’Bone Man, Bleachers’ Jack Antonoff, Leon Bridges and girl in red. Spotify is billing them as “prerecorded livestreams” — a bit of an oxymoron, that. I recognize that livestream has become kind of a catchall, but it loses some meaning when the thing isn’t, you know, live.

Rather than streaming straight from a venue, the service is taking the somewhat novel approach of letting the artist choose the spot for the pre-recorded show. That means live-show venues in the case of The Black Keys and something more creative for Antonoff, who shot his segment on a bus traveling from Brooklyn to Springsteen’s old stomping ground, Asbury Park, New Jersey (greetings).

“We have always been a band that loves to play live in venues of all shapes and sizes,” The Black Keys said in a release tied to the news. “The past year has been tough for musicians and fans alike, so we wanted to find a way to share this live performance of songs from our new project, Delta Kream, from a place we love, the Blue Front Café, the oldest active juke joint in America. We’re excited to be a part of this new initiative with Spotify that will give fans a great way to connect with their favorite artists.”

The shows run 40-75 minutes and run $15 a pop. The price seems a bit high to stream a pre-recorded concert, but fans of the groups will likely appreciate what’s being billed as an “intimate” look at one of their favorite artists — though intimacy is, in part, limited as the company will be selling unlimited tickets to the events. The service isn’t revealing how large of a cut artists will get, simply telling TechCrunch, “All artists will receive a guaranteed fee for their participation in the livestream.”

Streaming the shows requires a Spotify account — either premium or free.

News: Upstream, a Miami-based professional networking platform, raises a $2.75M seed round

If you’re reading this, there’s a pretty good chance you have a LinkedIn profile with your digital resume and hundreds — if not thousands — of professional connections. But how many of those people do you actually know well, and, more importantly, do you ever connect with them and meet others from their networks? “You

If you’re reading this, there’s a pretty good chance you have a LinkedIn profile with your digital resume and hundreds — if not thousands — of professional connections. But how many of those people do you actually know well, and, more importantly, do you ever connect with them and meet others from their networks?

“You don’t go to LinkedIn to meet people. You don’t hang out and spend meaningful time there,” said Alex Taub, co-founder and CEO of Upstream, a new professional networking platform that just closed a $2.75 million seed round, bringing their total raised to $3.25 million. The round was led by Ibex Investors and managing partner Nicole Priel (who joins the board) and includes participation by 8-Bit Capital, Human Ventures, NYVP, Converge Venture Partners and a number of angel investors.

“Your LinkedIn network is not a good representation of who you actually know and how well you know them. We see these places that LinkedIn isn’t particularly focused [on] and believe there are opportunities for multiple big companies to better serve the needs of professionals,” Taub added.

Unlike LinkedIn, Upstream focuses on generating meaningful connections between its members, and one way they go about it is by hosting digital events that start with a speaker, followed by breakout matched sessions that are five minutes each.

To get a sense of the product, Upstream invited me to be the speaker at last Friday’s “Upstream Social,” where I talked about my work as a journalist and then coincidently got matched with two founders — one in Brazil and the other in Boston. The week before, the guest speaker was U.S. Senator Cory Booker of New Jersey.

To me, the experience felt like LinkedIn meets Clubhouse meets Hoppin.

Upstream, which is pre-revenue and is Miami-based, is a company whose founder was attracted to the Sunshine State from NYC during the pandemic. Taub and his family signed a two-year lease here and plan to reevaluate their residence in the summer of 2022; they are one of the movers who are cautiously optimistic about the tech industry’s recent explosion in the Magic City.

The origin story

Taub and his co-founder, Michael Schonfeld, are both serial entrepreneurs, having built and sold Social Rank for an undisclosed amount before launching Upstream in October 2020. The impetus for the company came as a solution to a struggle Taub faced in his daily life.

“Throughout my life, regardless of the job I’ve been in, I spend my time making introductions, connecting people and helping friends hire rock-star talent. Like many people, I get energy from helping others,” Taub said. “When COVID-19 hit and the job market took a dive last March, the number of requests for help I received increased 100X. I noticed quickly that my speed of responding to emails and brain capacity to connect the dots became the limiting factor in getting people help,” he added.

So it’s no surprise that Upstream started as a product where people could ask for help, and others from the community pitched in. The company now has more than 200 communities (similar to LinkedIn groups), and about 75% of the people who attend an initial Upstream event return for a second one.

“I joke that we are building a product that people need because I need it. We feel that we are the right team to solve this problem because we so desperately want it ourselves,” Taub said.

News: API security startup 42Crunch raises $17M Series A led by Energy Impact Partners

With security top of mind in many companies these days, especially given how many staff work at home, there is one area that remains chronically ignored: that of the world of APIs which power all of the platforms we all use every day. Now, a significant player in the cybersecurity of APIs is super-charging its

With security top of mind in many companies these days, especially given how many staff work at home, there is one area that remains chronically ignored: that of the world of APIs which power all of the platforms we all use every day.

Now, a significant player in the cybersecurity of APIs is super-charging its offering. 42Crunch, an API security startup, has raised $17 million in a Series A round led by Energy Impact Partners. Adara Ventures also participated.

42Crunch has a ‘micro firewall’ for APIs which aims to protect against attacks listed in the OWASP Top 10 for API Security. It is used by companies such as Mulesoft, Ford Motors, and Qualys.

CEO and Co-Founder of 42Crunch, Jacques Declas said: “What do the recent data breaches at Tesla, Facebook, and Clubhouse have in common? They all came about due to API vulnerabilities. 83% of internet traffic now comes from APIs but traditional firewall approaches are not adapted to cope with the specific threats that APIs create.”

The three French co-founders came up with the idea after being the number of APIs used by customers proliferate.

The normal approach to firewalls – relying on patterns and signatures to detect potential incursions – does not work when it comes to API traffic. 42Crunch claims its platform can individually protect each API, and prevent common cyber-attacks such as injections but also API-specific attacks.

Isabelle Mauny, Co-founder and CTO of 42Crunch, said: “Protecting APIs from threats at runtime is only part of the story. APIs will only be truly secured when security becomes part of the developer’s flow, rather than an afterthought.”

Nazo Moosa, Co-Managing Partner, Energy Impact Partners added: “42Crunch’s ‘shift-left approach’ to the creation of secure-by-design APIs fits strongly with EIP’s vision of protecting global critical infrastructure. The company’s six-digit customer wins last year were catalytic to our decision to lead the round.”

News: India tells WhatsApp to withdraw its new policy terms

The Indian government is not pleased with WhatsApp’s new privacy policy. The nation’s Ministry of Electronics and Information Technology (MeitY) has once again directed the Facebook-owned company to withdraw the planned update. In a letter to WhatsApp on Tuesday — which was read to TechCrunch — MeitY has given the popular instant messaging provider seven

The Indian government is not pleased with WhatsApp’s new privacy policy. The nation’s Ministry of Electronics and Information Technology (MeitY) has once again directed the Facebook-owned company to withdraw the planned update.

In a letter to WhatsApp on Tuesday — which was read to TechCrunch — MeitY has given the popular instant messaging provider seven days to offer a “satisfactory” response. Failure to do so, the ministry warned, will prompt lawful measures.

“In fulfilment of its sovereign responsibility to protect the rights and interests of Indian citizens, the government of India will consider various options available to it under laws in India,” the letter reads.

The letter comes at a time when the ministry is also pursuing a legal case on this matter in the Delhi High Court — and  the second largest internet market is also conducting an antitrust probe on the subject.

This is not the first time New Delhi has issued a notice to WhatsApp about the new privacy terms. Earlier this year, in a similar letter,” the Indian government had expressed “grave concerns” about the planned update.

Following backlash from several governments and users, WhatsApp earlier this year delayed enforcement of the privacy update by three months — to May 15. Last week, it somewhat relaxed the deadline, though users need to still need to comply to access some basic features.

A spokesperson at the time told TechCrunch that the vast majority of users who had seen the new privacy terms on the app had accepted it.

With over 450 million users, India is WhatsApp’s biggest market by users.

The ministry in its notice this week has asked WhatsApp why it needs to enforce the new changes to its terms of service — the first major update in years — to users in India when those in the EU have been exempted from it.

The updated privacy terms grant WhatsApp the consent to share some personal information — such as their phone number and location — with parent firm Facebook. WhatsApp has clarified that communication between two individuals remains just as private as before.

“It is not just problematic, but also irresponsible, for WhatsApp to leverage this position to impose unfair terms and conditions on Indian users, particularly those that discriminate against Indian users vis-à-vis users in Europe,” the ministry wrote in the letter.

In response to a petition filed in the Delhi High Court earlier this month, WhatsApp argued that many Indian firms maintain similar policies and share more data. In the petition, WhatsApp had identified food delivery startup Zomato, ride-hailing giant Ola, online grocer BigBasket, as well as Swedish giant Truecaller, which counts India as its largest market by users, as some examples.

News: PhonePe in talks to acquire Indian app store Indus OS

Walmart-backed Indian payments services firm PhonePe is in advanced stages of talks to acquire Samsung-backed Indus OS, a startup that operates an eponymous third-party Android app store, a source familiar with the matter told TechCrunch. The deal values Noida-headquartered Indus OS at $60 million, the source said, requesting anonymity as the matter is private. The

Walmart-backed Indian payments services firm PhonePe is in advanced stages of talks to acquire Samsung-backed Indus OS, a startup that operates an eponymous third-party Android app store, a source familiar with the matter told TechCrunch.

The deal values Noida-headquartered Indus OS at $60 million, the source said, requesting anonymity as the matter is private. The deal has yet to close. PhonePe and Indus OS didn’t immediately respond to a request for comment.

Indian news outlet Entrackr first reported about the development.

Indus OS powers several popular third-party Android stores including Samsung’s Galaxy Store and provides partners with localized content and apps.

Late last year, Indus OS said it offered its partners 400,000 apps in English and 12 Indian languages. The seven-year-old startup, which has raised about $21 million to date and monetizes through ads, has amassed over 100 million users.

The startup plans to launch an app store for individual users once Google begins accepting third-party app stores, another source familiar with the matter said.

It remains unclear why PhonePe is interested in Indus OS’ offering. The Bangalore-based startup has long offered its own mini app store on its app. A handful of firms — including PhonePe rival Paytm — have either launched or explored launching their own mini app stores in recent months.

News: Forecast nabs $19M for its AI-based approach to project management and resource planning

Project management has long been a people-led aspect of the workplace, but that has slowly been changing. Trends in automation, big data, and AI have not only ushered in a new wave of project management applications, but they have led to a stronger culture of people willing to use them. Today, one of the startups

Project management has long been a people-led aspect of the workplace, but that has slowly been changing. Trends in automation, big data, and AI have not only ushered in a new wave of project management applications, but they have led to a stronger culture of people willing to use them. Today, one of the startups building a platform for the next generation of project management is announcing some funding — a sign of the traction it’s getting in the market.

Forecast, a platform and startup of the same name that uses AI to help with project management and resource planning — put simply, it uses artificial intelligence to both “read” and integrate data from different enterprise applications in order to build a bigger picture of the project and potential outcomes — has raised $19 million to continue building out its business.

The company plans to use some of the funding to expand to the U.S., and some to continue building out its platform and business, headquartered in London with a development office also in Copenhagen.

This funding, a Series A, comes less than a year after the startup’s commercial launch, and it was led by Balderton Capital, with previous investors Crane Ventures Partners, SEED Capital and Heartcore also participating.

Forecast closed a seed round in November 2019 and then launched just as the pandemic was kicking off. It was a time when some projects were indeed put on ice, but others that went ahead did so with more caution on all sorts of fronts — financial, organizational, and technical. It turned out to be a “right place, right time” moment for Forecast, a tool that plays directly into providing a technical platform to manage all of that in a better way, and it tripled revenues during the year. Its customers include the likes of the NHS, the Red Cross, Etain and more. It says over 150,000 projects have been created and run through its platform to date.

Project management — the process of planning what you need to do, assigning resources to the task and tracking how well all of that actually goes to plan — has long been stuck between a rock and a hard place in the world of work.

It can be essential to getting things done, especially when there are multiple departments or stakeholders involved; yet it’s forever an inexact science that often does not reflect all the complexities of an actual project, and therefore may not be as useful as it could or should be.

This was a predicament that founder and CEO Dennis Kayser knew all too well, having been an engineer and technical lead on a number of big projects himself. His pedigree is an interesting one: one of his early jobs was as a developer at Varien, where he built the first version of Magento. (The company was eventually rebranded as Magento and then acquired by eBay, then spun out, then acquired again, this time by Adobe for nearly $1.7 billion, and now a huge player in the world of e-commerce tools.) He also spent years as a consultant at IBM, where among other things he helped build and formulate the first versions of ikea.com.

In those and other projects, he saw the pitfalls of project management not done right — not just in terms of having the right people on a project at the right time, but the resource planning needed, better calculations of financial outcomes in the event of a decision going one way or the other, and so on.

(He didn’t say this outright, but I’m sure one of the points of contention was the fact that the first ikea.com site didn’t actually have any e-commerce in it, just a virtual window display of sorts. That would have been because Ikea wanted to keep people shopping in its stores, away from the efficiency of just buying the one thing you actually need and not the 10 you do not. Yes, there are plenty of ways now of recirculating people to buy more when you select one item for a shopping cart — something the likes of Amazon has totally mastered — but this was years ago when there was still even more opportunities for innovation than there are now. All of this is to say that you might very reasonably argue that had there been better project managing and resource planning tools to give forecasts of potential outcomes of one or another route taken, people advocating for a different approach could have made their case better. And maybe Ikea would have jumped on board with digital commerce far sooner than it did.)

“Typically you get a lot of spreadsheets, people scattered across different tools that include accounting, CRM, Gitlab and more,” Kayser said.

That became the impetus for trying to build something that can take all of that into account and make a project management tool that — rather than just being a way of accounting to a higher-up, or reflecting only what someone can be bothered to update in the system — something that can help a team.

“Connecting everything into our engine, we leverage data to understand what they are working on and what is the right thing to be working on, what the finances are looking like,” he continued. “So if you work in product, you can plan out who is where, and what resourcing you need, what kind of people and skills you require.” This is a more dynamic progression of some of the other newer tools that are being used for project management today, targeting, in his words, “people who graduate from Monday and Asana who need something ore robust, either because they have too many people working on a project or because its too complicated, there is just too much stuff to handle.”

More legacy tools he said that are used include Oracle “to some degree” and Mavenlink, which he describes as possibly Forecast’s closest competitor, “but its platform is aging.”

Currently the Forecast platform has some 26 integrations of popular tools used for projects to produce its insights and intelligence, including Salesforce, Gitlab, Google Calendar, and, as it happens, Asana. But given how fragmented the market is, and the signals one might gain from any number of other resources and apps, I suspect that this list will grow as and when its customers need more supported, or Forecast works out what can be gleaned from different places to paint an even more accurate picture.

The result may not ever replace an actual human project manager, but certainly starts to then look like a “digital twin” (a phrase I have been hearing more and more these days) that will definitely help that person, and the rest of the team, work in a smarter way.

“We are really excited to be an early investor in Forecast,” said James Wise,  a partner at Balderton Capital, in a statement. “We share their belief that the next generation of SaaS products will be more than just collaboration tools, but use machine learning to actively solve problems for their users. The feedback we got from Forecast’s customers was quite incredible, both in their praise for the platform and in how much of a difference it had already made to their operations. We look forward to supporting the company to scale this impact going forward.”

News: Payroll automation startup raises $15.6M Series A led by General Catalyst

Payroll automation is not exactly the sexiest of startup areas but it’s a pretty decent business. The larger startup in the space is Payfit which has raised upwards of $208.4M to do something that lots of companies find quite painful. But Payfit does a lot of other things as well, potentially leaving it exposed. Now

Payroll automation is not exactly the sexiest of startup areas but it’s a pretty decent business. The larger startup in the space is Payfit which has raised upwards of $208.4M to do something that lots of companies find quite painful. But Payfit does a lot of other things as well, potentially leaving it exposed. Now a startup aims to come along and hone in on the thorny issue of payroll automation, alone.

Founded by Jonas Bøgh Larsen and Emil Hagbarth Rasmussen, Danish firm Pento has raised $15.6 million in a Series A funding led by General Catalyst. Also participating was Avid Ventures and the UK’s LocalGlobe. Existing investors Point Nine Capital, Moonfire Ventures, Hustle Fund, and Seedcamp also took part, alongside angels (see below). This latest funding takes the total raised by Pento to $18.4 million.

The startup claims 700 companies are using it including tech firms Pleo and Cuvva; large hospitality brands (Honest Burgers); and retail and e-commerce brands (Lacoste, Beauty Pie). Pento replaces spreadsheets etc and gives them cloud-based tools, real-time calculations, transparency, and online and telephone support.

Pento co-founder and CEO, Jonas Bøgh Larsen told me: “The biggest process we’re replacing is payroll outsourcing where companies are outsourcing payroll to an accountant, which the vast majority of companies do in Europe. We automate the entire process from reporting to tax calculations to payments. So, what most other platforms or payable products do is basically just helping you calculate the right taxes and National Insurance, and so on. We also take care of the reporting. We also do payments, and we integrate the product to other HR products.”

Adam Valkin, Managing Director at General Catalyst said: “Despite being so business-critical, payroll is one of the least digitally advanced services across the globe. It’s also one that has garnered a reputation for being too complex, too convoluted and too out of reach for those who aren’t payroll specialists, leading many to consider expensive outsourcing as the only route to go. Pento dispels this myth because it’s built purely with HR and finance teams in mind, by business leaders who truly understand the frustrations involved. It’s easy-to-use, transparent, flexible, secure and affordable. It’s what payroll should be in a modern company and it represents the future of employee compensation.”

Pento’s angel are from Stripe (Thairu and Diede van Lamoen), Monzo (Tom Blomfield), GoCardless (Matt Robinson), Zoom (Eric Yuan), Cuvva (Freddy Macnamara), Intercom (Des Traynor) and others.

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