Monthly Archives: May 2021

News: Dott, Lime and Tier selected for London e-scooter trial

Transport for London and London Councils have announced Dott, Lime and Tier Mobility as the winners of its prized e-scooter pilot, confirming last month’s suspicions based on job postings by the companies.  Last year, the government legalized e-scooter rental trials by local authorities, although private e-scooter riding is still illegal. This legislation spurred the launch of

Transport for London and London Councils have announced Dott, Lime and Tier Mobility as the winners of its prized e-scooter pilot, confirming last month’s suspicions based on job postings by the companies. 

Last year, the government legalized e-scooter rental trials by local authorities, although private e-scooter riding is still illegal. This legislation spurred the launch of TfL and London Council’s open and competitive procurement process for viable operators. The pilot, which will run for up to 12 months, will begin June 7 in some of London’s boroughs, including Canary Wharf and the City of London. More neighborhoods are expected to join as the year progresses, according to TfL. Lambeth and Southwark are also seeking participation. 

Rides can only begin and end in participating neighborhoods, which will designate parking bays for the scooters that are enforced by operators’ geofencing capabilities. However, riders will be able to move freely across these boroughs and “ride-through areas,” which thus far only appears to be Tower Hamlets. Between 60 and 150 e-scooters will be available to rent in each participating borough. TfL will gradually let operators that demonstrate strong compliance add scooters. Those that don’t comply could have their scooter numbers reduced. 

Safety and data sharing are core requirements for the participating scooter companies. TfL hopes to be able to use data shared by the operators to help London and the United Kingdom shape future policy on e-scooters and investigate them as a viable option for London’s sustainable recovery from the pandemic. London’s mayor has set a goal of being a zero-carbon city by 2030, so green forms of mobility that decrease reliance on ICE vehicles is essential. 

“We’re doing all we can to support London’s safe and sustainable recovery from the coronavirus pandemic and it’s clear that e-scooters could act as an innovative, greener alternative to car trips,” said Helen Sharp, TfL’s e-scooter trial lead in a statement. “This new trial will provide the data and insights we need to determine the longer-term role e-scooters could play in our strategy for a greener and healthier future for London.”  

TfL outlined the following safety requirements for scooters: 

  • A lower maximum speed of 12.5 mph; 
  • Lights at the front and rear of the vehicles that are always on throughout any rental;  
  • Audible warning systems that can be used without adjusting the rider’s grip of the handlebar;
  • “First-ride policies” requiring new users to take an e-learning safety course;
  • Rules against riding on sidewalks. 

As with all governing city bodies, street clutter is of particular importance to London. Aside from strict geofencing regulations, there will also be a mandatory response time for operators in cases where vehicles have been improperly parked, are damaged or are causing an obstruction, according to TfL. 

“The safety of those using e-scooters, as well as other road users and pedestrians, is absolutely paramount, so it’s important that they are trialled in this rigorous way to ensure high standards,” said Will Norman, London’s walking and cycling commissioner, in a statement. 

Dott, Lime and Tier will set their own rental pricing, but they’ll need to be mindful of the needs of essential workers and those with lower incomes by offering appropriate discounts. Lime already offers its Lime Access Program in operating cities, which provides 50% off rides to those on public assistance and workers who have been most affected by the pandemic. 

After Lime’s recent win of New York and Paris, the company, which can be found slinging rides for electric scooters, bikes and mopeds in more than 130 cities across Europe, the Middle East, the United States, Korea, Australia and New Zealand, is merely cementing its big-city dominance. With its ongoing e-bike operations in London, the company was a shoe-in. 

Berlin-based Tier Mobility, which also operates in Paris, is the second heaviest hitter. Its recent expansion into Kraków, Poland marked its 100th city, and the company plans to extend coverage in Europe, the Middle East and new markets, as well as add e-bikes to its fleet. 

In addition to e-scooters, Tier will be bringing its rider-swappable battery business to London, allowing riders to exchange batteries at charging stations hosted in local businesses across London. This would allow riders to earn free trips in the process while bringing increased footfall for businesses trying to recover from the pandemic. Additionally, having this crowdsourced approach has the potential to reduce congestion associated with collection and transporting e-scooters to a warehouse for charging. 

As seems to be the case with these metropolitan scooter deals, there’s always one promising underdog. In the case of London, that’s Amsterdam-based Dott, which recently raised $85 million in a Series B, and operates in about 20 cities in Europe. London will be Dott’s first city in the U.K. 

This article has been updated to include other countries in which Lime operates. 

News: Canoo is being investigated by the SEC

Canoo, the Los Angeles-based electric vehicle startup that debuted on the Nasdaq public exchange earlier this year, is being investigated by the U.S. Securities and Exchange Commission, just months after its merger with special purpose acquisition company Hennessy Capital Acquisition Corp. The investigation is broad, covering the Hennessy’s initial public offering and merger with Canoo,

Canoo, the Los Angeles-based electric vehicle startup that debuted on the Nasdaq public exchange earlier this year, is being investigated by the U.S. Securities and Exchange Commission, just months after its merger with special purpose acquisition company Hennessy Capital Acquisition Corp.

The investigation is broad, covering the Hennessy’s initial public offering and merger with Canoo, the company’s operations, business model, revenues, revenue strategy, customer agreements, earnings and other related topics, along with the recent departures of certain of the company’s officers, according to a quarterly earnings report posted Monday. Canoo learned of the investigation on April 29. Canoo’s share price fell more than 3% in after-hours trading following the release of its first-quarter earnings.

“The SEC has also informed the Company that the investigation does not mean that it has concluded that anyone has violated the law, and does not mean that it has a negative opinion of any person, entity or security. We intend to provide the requested information and cooperate fully with the SEC investigation,” Canoo noted in the regulatory filing. Canoo added that it does not consider the investigation or other lawsuits it is facing to be material to its business.

The SEC investigation follows a string of executive departures, a change to some of the core pieces of its business model, the loss of a key automotive partnership and at least one lawsuit brought by shareholders. And that’s just the activity since the first of the year.

Canoo started as Evelozcity in 2017, founded by former Faraday Future executives Stefan Krause and Ulrich Kranz. The company rebranded as Canoo in spring 2019 and debuted its first vehicle several months later. It was this first vehicle, as well as Canoo’s plan to offer it only as a subscription, that captured the attention of investors, companies and the media. Last year, Hyundai announced a partnership with Canoo to co-develop EVs, but that deal fell apart in early 2021 after the company changed its business model and decided to not offer engineering services to other automakers, according to comments made by the company’s chairman and now CEO Tony Aquila in a March investors’ call.

Canoo has sustained numerous executive departures, including co-founder and CEO Kranz, general counsel Andrew Wolstan, CFO Paul Balciunas and its head of powertrain development. Krause, who was the company’s first CEO, stepped down in August 2019. Last month, Canoo was also named as a defendant in two class-action complaints filed by shareholders.

Amid the executive exits and business pivots, the company has managed to narrow its quarterly losses despite an increase in R&D expenditures and no revenue. The company reported Monday a net loss of $15.2 million, or 7 cents a share, in the first quarter, compared to a loss of $30.9 million, or 37 cents a share, in the same period last year. The company said it ended the quarter with $641.9 million in cash and equivalents.

News: Bosta raises $6.7M to expand e-commerce delivery business across Africa and MENA

Per a recent report by Bain & Co., e-commerce is expected to grow to $28.5 billion in MENA by 2022 from a 2019 value of $8.3 billion. Egypt, one of the most active e-commerce countries in the region, is anticipated to grow 33% annually to reach $3 billion by 2022. But for any e-commerce business

Per a recent report by Bain & Co., e-commerce is expected to grow to $28.5 billion in MENA by 2022 from a 2019 value of $8.3 billion. Egypt, one of the most active e-commerce countries in the region, is anticipated to grow 33% annually to reach $3 billion by 2022.

But for any e-commerce business to thrive, its last-mile delivery arm has to be well figured out. Bosta is one such company in Egypt helping small businesses with logistics and last-mile delivery. Today, the company is announcing it has closed a Series A investment of $6.7 million. U.S. and Middle East VC firm Silicon Badia led the round, with participation from 4DX Ventures, Plug and Play Ventures, Wealth Well VC, Khwarizmi VC, as well as other regional and global investors

This investment comes a year after the company raised a $2.5 million round, which takes its total investment raised to $9.2 million.

Bosta was launched in 2017 by Mohamed Ezzat and Ahmed Gaber. The company offers next-day delivery to customers and handles exchange shipments, customer returns and cash collection.

The idea for Bosta came during Ezzat’s time at Lynks, his previous consumer goods startup. Lynks, the first YC-backed company from Egypt, allows people in Egypt to buy brands from the U.S., China and the U.K.

As co-founder and COO at Lynks, Ezzat was responsible for logistics, international clearance and last-mile delivery. In 2016, Egypt experienced an economic downturn coupled with the Egyptian pound devaluation and government restriction on imports. For Lynks it meant slow growth, but Ezzat was concerned about fixing the last-mile delivery bit, which, according to him, was a huge pain point.

“My nightmare was always the last mile. And at that time, you know that e-commerce is still very, very small. So it’s only 1% of the whole retail value,” he told TechCrunch. “So I was always thinking, how come if we want the e-commerce to grow, and we don’t have any strong company when it comes to last-mile because, in the end, every transaction on an e-commerce platform is a transaction on a courier platform.”

E-commerce is a fragmented sector where 80% of transactions come from small businesses selling on Facebook, Instagram and social media in general. Most of these businesses lack a strong delivery experience, and Ezzat left Lynks the following year to start Bosta

Being in the parcel delivery industry, Bosta wants to help these companies to grow profitably. It also tries to simplify logistics and allow its customers to have full control over the delivery process.

“You can use Bosta to get anything to your doorstep. You buy in our local currency, and we buy everything, handle the shipping, customs, clearance and bring it to your doorstep,” the CEO added.

The company doesn’t own fleets of vehicles to carry out operations. Instead, it operates an Uber-like model where drivers sign up, are made contractors and make money when a delivery is completed.  

Since 2017, the company has delivered more than 4 million packages to businesses, more than half since the pandemic outbreak last year. Bosta completes more than 300,000 deliveries per month, which is a 3.5x increase from when it raised its previous round, Ezzat stated. He also claims that more than 2,200 businesses use its platform daily and achieve a 95% delivery success rate.

Asides from small businesses, Bosta works with major e-commerce platforms like Souq (an Amazon company) and Jumia. Depending on the volume of goods transported, Bosta charges small businesses about 35-40 Egyptian pounds, while the big players are charged less, at 20-25 Egyptian pounds.

Speaking on the investment, Fawaz H Zu’bi said in a statement: “E-commerce has always had amazing potential in our region but was always being held back by something whether payments, logistics, market fragmentation, or customer adoption. We are excited to finally see companies like Bosta emerge to tackle some of these issues and help e-commerce realize its full promise and potential in a region that has now ‘turned on’ digitally.”

In the next two years, Bosta plans to deliver more than 15 million parcels in Egypt and serve over 20,000 businesses. The funds will be used for those causes, as well as expanding operations across Africa, MENA and the GCC.

“The investment is to dominate Egypt,” said Ezzat. “We want to make sure that we deliver the next day across Egypt, not just in Cairo, where we currently do. And to be a market leader when it comes to e-commerce on the continent and be profitable. This is the main target for us now and also to start operations in Saudi Arabia.”

News: Should startups build or buy telehealth infrastructure?

Turnkey solutions might be tempting to healthcare startups looking to take advantage of the current market tailwinds, but startups still have to decide what to outsource and what to build.

Digital health in the U.S. got a huge boost from COVID-19 as more people started consulting physicians and urgent care providers remotely in the midst of lockdowns. So much so that McKinsey estimates that up to $250 billion of the current healthcare expenditure in the U.S. has the potential to be spent virtually. The prominence of digital health is undoubtedly here to stay, but how it looks and feels from provider to provider is still a debate among sector startups.

But for providers who want to deliver care virtually across the country, it’s not as simple as adding a Zoom invite to an annual check-up. The process requires intention every step of the way — right from the clinicians delivering remote care to the choice of payment processor.

Providers and healthcare startups can choose white-label solutions such as publicly-listed Teladoc and Truepill, which have been around for a long time, and have powered the operations of unicorns like Hims and Hers, Nurx, and GoodRx as they look to scale in a compliant but efficient manner.

Turnkey solutions might be tempting to companies looking to take advantage of this opportunity, but startups still have to decide what to outsource and what to build. Should you rely on others for staffing your practice? Do you build your own payment processing service in-house? Do you integrate with Zoom or build your own video-conferencing software? These questions are crucial to think about early on to prepare for future scale regardless of whether a startup is B2B or B2C.

More than just Zoom

SteadyMD, which in March raised a $25 million Series B led by Lux Capital, wants to be the infrastructure layer that makes it easier for other companies to offer telehealth services. It is hoping to address a pain point it ran into years earlier: The complexity of launching compliant telehealth services in all 50 states.

The company launched in 2016 with the intent to provide high-quality, virtual primary care for brick-and-mortar shops. Through that process, SteadyMD built a suite of tools to make it work with EMR integrations, doctor-patient communication channels, digital recruiting and forecasting software, and prescription referrals and operations. The burdensome process struck a chord with the co-founders and they pivoted the company to where it is today: an “AWS for healthcare”.

SteadyMD offers a suite of services to its customers, the least of which, says co-founder Guy Friedman, is its video-conferencing platform.

“It’s not about the technology capacities,” Friedman says. “The very large companies that have a lot of resources are using us to help them increase their capacity as workforce.”

News: Daily Crunch: AT&T’s $43B WarnerMedia spinoff will create a new content colossus

Hello friends and welcome to Daily Crunch, bringing you the most important startup, tech and venture capital news in a single package.

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

Welcome to Daily Crunch for Monday, May 17. We have a lot to get to, so we’ll keep our introduction incredibly curt and simply note that early-stage founders can still apply to the upcoming TechCrunch Battlefield event for another week or so. Neesha has the details here. — Alex

TechCrunch Top 3

Today the biggest stories concern the never-ending flow of cash to insurtech, the ability of software companies to post accelerating revenue growth, and the market leverage of major tech platforms:

Jerry raises $28M: Adding another name to the list of startups working on building insurance marketplaces, Jerry has a twist on the model and a huge new infusion of cash. The startup wants to help consumers do more than just find insurance, pursuing the superapp concept, but in a new direction. For more on insurtech marketplaces and their growth, head here. (Insurtech is super hot in aggregate, it’s worth remembering.)

Monday.com is going public: We’ve long known that corporate communications and planning startup Monday.com was north of $100 million in annual recurring revenue. Now, at last, it has filed to go public. So we ripped into the numbers, which show accelerating revenue adds. More importantly than the raw math, however, was the implicit point from the news that the IPO markets remain open, and for more than just the latest SPAC deals. That’s good news for late-stage startups everywhere.

Apple adds lossless for no cost: Spotify wants to charge for higher-quality streaming. Apple has decided not to. And that’s not great news for the smaller company because it needs to boost its revenue per user over time. Apple, which has infinite money, does not. The Spotify-Apple war is a notable one to watch because it pits an incumbent upstart against an upstart incumbent in the music streaming space. Let’s see how Spotify fires back.

Startups and VC

It appears that every startup in the world just raised more money, so here’s a rundown of the latest deals in quick-fire fashion, ordered by size:

Fave raises $2.2M to connect fans and creators: Founder Jacquelle Amankonah Horton wants to close the space between fans and the creators they love. Given the general market focus in recent quarters on creators, the company makes sense.

Merge raises $4.5M for its HR and finance API: Merge offers a single API to connect products to all sorts of finance and HR products. It’s akin to a super API. And with what we presume is a developer-led sales motion and on-demand pricing, it’s right in the middle of the current startup business model zeitgeist.

Telda raises $5M for Egyptian neobanking: The Telda round is cool not only because we don’t cover Egyptian tech enough, but also because there’s Sequoia money in it. American VCs are looking farther and farther afield for their next deal.

Houm raises $8M for LatAm home sales: TechCrunch described Houm as “an all-in-one platform that helps homeowners rent and sell their properties in” Latin America. The recent Y Combinator grad took part in the accelerator’s winter 2021 batch.

Code Ocean raises $21M for collaborative data science: In short, Code Ocean provides data jockeys with a “small-scale container platform that lets you wrap up all the necessary components of your data and analysis in an easily shared format,” Devin Coldewey reports. And now it has a lot more money to chase that vision.

Ankorstore raises $102M to supply indie stores: Hailing from France, Ankorstore provides wholesale items to smaller retailers. And Tiger just poured capital into the company, meaning that the startup has some of the most intriguing financial backing out there today.

One more hardware SPAC: Bright Machines is going public via a SPAC. Our own Ron Miller helped us dig into the company and its accounting results.

The battle for voice recognition inside vehicles is heating up

Until recently, integrating affordable voice-recognition software into an automobile was something from science fiction.

But last year, the percentage of vehicles offering in-car connected services reached 45%. By 2024, analysts predict cars with voice recognition will comprise 60% of the market.

Considering how much time many of us spend behind the wheel, there’s an infinite number of applications for the technology. For our latest Extra Crunch market map, we sized up the general market opportunity before creating a roster of major players and reaching out to investors to see where they’re placing bets.

(Extra Crunch is our membership program, which helps founders and startup teams get ahead. You can sign up here.)

Big Tech Inc.

Akin to the startup market, Big Tech was incredibly busy in the last few days, so here’s your run-through:

JD.com’s logistics subsidiary is going public: Good news from the Chinese startup market has been somewhat rare lately. Here’s some, which not only helps change the narrative a bit about the country’s tech scene, but also underscores how bonkers the global e-commerce market is.

SpaceX sent out 52 more Starlink satellites: Bring on rural, high-speed internet. So we can all move to Montana. (Please.)

GoJek and Tokopedia are GoTo Group: The expected combination of “Indonesia’s two biggest startups” is done, TechCrunch reports. GoJek, of course, is in the ride-hailing business, while Tokopedia is a marketplace. Now it’s a single, massive entity.

Microsoft makes Teams better for your parents: What happens when your Discord deal dies? Well, you make your current chat-video-groups service better for regular folks, it turns out. Aside from gaming, Teams may be Microsoft’s best shot at a consumer play that works out for some time.

Finally, BigTelco companies ditching media assets to de-lever ahead of higher infrastructure spend? Say no more, AT&T, we’re already hip to it. (Or they could just limit some shareholder return programs for a bit. You know?)

News: Want to double your rate of return? Seek counsel from experienced executives

Years of data from hundreds of successful startups show the impact of relevant executive expertise is even greater than anticipated — it doubles the rate of return on a venture investment.

Rob Olson
Contributor

Rob Olson is a partner and head of data strategy at M13, a venture engine focused on investing in the core technologies that are going to drive and change consumer behavior over the next decade.

Does it really take an average of seven to eight years for a successful startup to exit? What can early-stage founders do to accelerate outcomes?

We wanted to know if founding teams can execute faster with a higher degree of success if they’re able to take advantage of relevant executive expertise. After all, that’s the thesis we built our venture model around — we purposefully designed M13 so that early-stage founders get access to experienced executives they wouldn’t otherwise have the money to hire or the time to vet, onboard and manage.

Even if companies are doing everything right, they still reduce time to exit when they have multiple founders with prior relevant experience as a senior leader or operator.

We looked at years of data from hundreds of successful startups. As it turns out, the impact of relevant executive expertise is even greater than we had anticipated — to the tune of doubling the rate of return on a venture investment.

When it comes to measuring leadership experience, information about an individual executive’s experience — for example, how long they’ve been an exec — is publicly available. Unfortunately, there isn’t readily available structured data around a founding team’s seniority and how early the founders bring on people with more experience as an operator or leader.

To find out if leadership experience significantly impacts startups’ success, we analyzed nearly 800 executives at more than 200 companies that reached a sizable exit (greater than or equal to a $500 million valuation) via an IPO on a U.S. exchange or an exit via M&A from 2004-2019. About 70% of the companies in our dataset exited between 2016-2019, including notable IPOs like Spotify, Zoom, Uber and Peloton. We decided to exclude companies in the biotech/life sciences space because these companies follow a different growth trajectory than consumer tech and B2B tech and traditionally exit via IPO or M&A at a much earlier stage.

Here’s what our analysis of startups with successful exits revealed.

Of successful exits, the average actually is 7-8 years

While there are other intangible variables for startup success, the basic equation is the time and capital required to achieve an exit and the size of that exit.

Our dataset validates the widely accepted statement that successful exits take about seven to eight years:

Image Credits: M13

But could a variable like relevant leadership experience actually accelerate the time to exit? We wondered: Beyond time and capital, are there any factors — like experience as a leader or operator — that can have an exponential impact on the exit outcome? And when is the right time for those human capital resources to be introduced to make that impact?

News: Hardware hacker brings online multiplayer to the original Game Boy

Move over, Xbox and PlayStation. A new foe has appeared in the world of online multiplayer gaming! It’s the… uh, Game Boy. As in that unbreakable, gray, 4.19Mhz tank from 1989. While the Game Boy has had a handful of locally multiplayer games since the beginning, using it meant physically connecting your Game Boy to

Move over, Xbox and PlayStation. A new foe has appeared in the world of online multiplayer gaming! It’s the… uh, Game Boy. As in that unbreakable, gray, 4.19Mhz tank from 1989.

While the Game Boy has had a handful of locally multiplayer games since the beginning, using it meant physically connecting your Game Boy to another Game Boy via an accessory called the link cable. If you wanted to play some Nintendo with someone further than a few feet away… well, you’d just have to wait a few decades.

In a wildly impressive display of skill, hardware hacker stacksmashing has managed to reverse engineer the Game Boy’s link cable protocol and effectively trick it into working across the Internet. The Game Boy connects through the link cable hooked into a Raspberry Pi to a custom desktop client, which in turn pings an online game server that acts as the bridge between you and your opponent(s). The Game Boy thinks it’s talking to any other ol’ Game Boy, unaware of the fact that it’s actually communicating with a server that could be halfway around the world.

The first game they’ve got working? Tetris!

 

Getting any given game to work (imagine trading a Pokémon you caught in 1998 with someone across the Internet!) will require that game’s unique communication protocols to be reverse engineered, so it’s only Tetris for now. Fortunately, stacksmashing has opened up the source code for all the various components that have been built so far, so there’s something of a foundation to build upon. And because the whole thing is no fun without anyone to play with, there’s also a Discord channel just for finding others who’ve gone down this rabbit hole. There’s even a custom PCB in the works ($15, with pre-orders expected to ship by June) that’ll handle the connection between the link cable and the Raspberry Pi, removing the need for you to shred a link cable to expose its wires and make this work.

Stacksmashing also recently made headlines by cracking open and modifying Apple’s AirTags, as well as turning the Game Boy into a (hilariously underpowered) Bitcoin miner.

News: Amount raises $99M at a $1B+ valuation to help banks better compete with fintechs

Amount, a company that provides technology to banks and financial institutions, has raised $99 million in a Series D funding round at a valuation of just over $1 billion. WestCap, a growth equity firm founded by ex-Airbnb and Blackstone CFO Laurence Tosi, led the round. Hanaco Ventures, Goldman Sachs, Invus Opportunities and Barclays Principal Investments

Amount, a company that provides technology to banks and financial institutions, has raised $99 million in a Series D funding round at a valuation of just over $1 billion.

WestCap, a growth equity firm founded by ex-Airbnb and Blackstone CFO Laurence Tosi, led the round. Hanaco Ventures, Goldman Sachs, Invus Opportunities and Barclays Principal Investments also participated.

Notably, the investment comes just over five months after Amount raised $86 million in a Series C round led by Goldman Sachs Growth at a valuation of $686 million. (The original raise was $81 million, but Barclays Principal Investments invested $5 million as part of a second close of the Series C round). And that round came just three months after the Chicago-based startup quietly raised $58 million in a Series B round in March. The latest funding brings Amount’s total capital raised to $243 million since it spun off from Avant — an online lender that has raised over $600 million in equity — in January of 2020.

So, what kind of technology does Amount provide? 

In simple terms, Amount’s mission is to help financial institutions “go digital in months — not years” and thus, better compete with fintech rivals. The company formed just before the pandemic hit. But as we have all seen, demand for the type of technology Amount has developed has only increased exponentially this year and last.

CEO Adam Hughes says Amount was spun out of Avant to provide enterprise software built specifically for the banking industry. It partners with banks and financial institutions to “rapidly digitize their financial infrastructure and compete in the retail lending and buy now, pay later sectors,” Hughes told TechCrunch.

Specifically, the 400-person company has built what it describes as “battle-tested” retail banking and point-of-sale technology that it claims accelerates digital transformation for financial institutions. The goal is to give those institutions a way to offer “a secure and seamless digital customer and merchant experience” that leverages Amount’s verification and analytics capabilities. 

Image Credits: Amount

HSBC, TD Bank, Regions, Banco Popular and Avant (of course) are among the 10 banks that use Amount’s technology in an effort to simplify their transition to digital financial services. Recently, Barclays US Consumer Bank became one of the first major banks to offer installment point-of-sale options, giving merchants the ability to “white label” POS payments under their own brand (using Amount’s technology).

The pandemic dramatically accelerated banks’ interest in further digitizing the retail lending experience and offering additional buy now, pay later financing options with the rise of e-commerce,” Hughes, former president and COO at Avant, told TechCrunch. “Banks are facing significant disruption risk from fintech competitors, so an Amount partnership can deliver a world-class digital experience with significant go-to-market advantages.”

Also, he points out, consumers’ digital expectations have changed as a result of the forced digital adoption during the pandemic, with bank branches and stores closing and more banking done and more goods and services being purchased online.

Amount delivers retail banking experiences via a variety of channels and a point-of-sale financing product suite, as well as features such as fraud prevention, verification, decisioning engines and account management.

Overall, Amount clients include financial institutions collectively managing nearly $2 trillion in U.S. assets and servicing more than 50 million U.S. customers, according to the company.

Hughes declined to provide any details regarding the company’s financials, saying only that Amount “performed well” as a standalone company in 2020 and that the company is expecting “significant” year-over-year revenue growth in 2021.

Amount plans to use its new capital to further accelerate R&D by investing in its technology and products. It also will be eyeing some acquisitions.

“We see a lot of interesting technology we could layer onto our platform to unlock new asset classes, and acquisition opportunities that would allow us to bring additional features to our platform,” Hughes told TechCrunch.

Avant itself made its first acquisition earlier this year when it picked up Zero Financial, news that TechCrunch covered here.

Kevin Marcus, partner at WestCap, said his firm invested in Amount based on the belief that banks and other financial institutions have “a point-in-time opportunity to democratize access to traditional financial products by accelerating modernization efforts.”

“Amount is the market leader in powering that change,” he said. “Through its best-in-class products, Amount enables financial institutions to enhance and elevate the banking experience for their end customers and maintain a key competitive advantage in the marketplace.”

News: Volocopter debuts a bigger eVTOL aimed at the city-suburban commute

Germany electric aviation startup Volocopter revealed Monday a new electric vertical take-off and landing aircraft targeting the suburban-to-city commuter. The four-seater VoloConnect is designed to have a range of 62 miles, making it well-suited for trips between the suburbs and the city, the company said. The aircraft design is a significant departure from the the

Germany electric aviation startup Volocopter revealed Monday a new electric vertical take-off and landing aircraft targeting the suburban-to-city commuter.

The four-seater VoloConnect is designed to have a range of 62 miles, making it well-suited for trips between the suburbs and the city, the company said. The aircraft design is a significant departure from the the VoloCity, the company’s first passenger eVTOL that is designed for shorter urban trips. The two-seat VoloCity, which has to be certified, has a 22-mile range.

VoloConnect’s longer range indicates that the company has its sights set on markets outside of major city centers, and that it is looking to more directly compete with rival eVTOL startups. VoloConnect’s aircraft specs are in line with that of competitors Archer Aviation and Wisk Aero, which each have eVTOL designs with an anticipated range of around 60 miles.

VoloConnect has a hybrid lift-and-push design, combining aspects of what one might typically see in a helicopter with a small aircraft. The vertical lift is facilitated by six propellors which sit parallel to the aircraft body and are connected by two wings. The push comes from two large fans on each side of the craft. Three wheels can retract into and out of the plane’s belly during take-off and landing.

The German-based startup said the new craft can reach a cruising speed of 112 mph (180 km/h) and a top speed of around 155 mph (250 km/h). It aims to achieve certification by 2026.

Electric aviation startups are all competing to be the first company to bring an aircraft to market. Even as Volocopter released this new design, the company is primarily focused on launching its air taxi service, which would use the smaller VoloCity aircraft, in Singapore by 2023. But before Volocopter’s aircraft can take to the skies, it will first need to achieve type certification with the European Union Aviation Safety Administration and in the case of Singapore, the relevant aviation authority there.

News: Industrial automation startup Bright Machines hauls in $435M by going public via SPAC

After the transaction is consummated, the startup will sport an anticipated equity valuation of $1.6 billion.

Bright Machines is going public via a SPAC-led combination, it announced this morning. The transaction will see the 3-year-old company merge with SCVX, raising gross cash proceeds of $435 million in the process.

After the transaction is consummated, the startup will sport an anticipated equity valuation of $1.6 billion.

The Bright Machines news indicates that the great SPAC chill was not a deep freeze. And the transaction itself, in conjunction with the previously announced Desktop Metal blank-check deal, implies that there is space in the market for hardware startup liquidity via SPACs. Perhaps that will unlock more late-stage capital for hardware-focused upstarts.

Today we’re first looking at what Bright Machines does, and then the financial details that it shared as part of its news.

What’s Bright Machines?

Bright Machines is trying to solve a hard problem related to industrial automation by creating microfactories. This involves a complex mix of hardware, software and artificial intelligence. While robotics has been around in one form or another since the 1970s, for the most part, it has lacked real intelligence. Bright Machines wants to change that.

The company emerged in 2018 with a $179 million Series A, a hefty amount of cash for a young startup, but the company has a bold vision and such a vision takes extensive funding. What it’s trying to do is completely transform manufacturing using machine learning.

At the time of that funding, the company brought in former Autodesk co-CEO Amar Hanspal as CEO and former Autodesk founder and CEO Carl Bass to sit on the company board of directors. AutoDesk itself has been trying to transform design and manufacturing in recent years, so it was logical to bring these two experienced leaders into the fold.

The startup’s thesis is that instead of having what are essentially “unintelligent” robots, it wants to add computer vision and a heavy dose of sensors to bring a data-driven automation approach to the factory floor.

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