Monthly Archives: May 2021

News: Ankorstore raises another $102 million for its wholesale marketplace

French startup Ankorstore has raised a $102 million Series B funding round (€84 million). Tiger Global and Bain Capital Ventures are leading today’s funding round with existing investors Index Ventures, GFC, Alven and Aglaé also participating. This is a significant funding round as it comes just a few months after the company raised €25 million.

French startup Ankorstore has raised a $102 million Series B funding round (€84 million). Tiger Global and Bain Capital Ventures are leading today’s funding round with existing investors Index Ventures, GFC, Alven and Aglaé also participating. This is a significant funding round as it comes just a few months after the company raised €25 million.

If you’re not familiar with Ankorstore, the company is building a wholesale marketplace for independent shop owners. You may have noticed some highly Instagrammable shops with a selection of random items, such as household supplies, maple syrup, candles, headbands, bath salts and stationery items.

Essentially, Ankorstore helps you source those items for shop owners. It lets you buy a ton of cutesy stuff and act as a curator for your customers. Even if you’re already working with brands directly, the startup offers some advantageous terms. In addition to buying from several brands at once, Ankorstore withdraws the money from your bank account 60 days after placing an order.

On the other side of the marketplace, brands get paid upon delivery. Even if you’re just getting started, the minimum first order is €100 per brand.

And metrics have been going up and to the right. There are now 5,000 brands on Ankorstore. 50,000 shops are buying stuff through the platform. And the best is likely ahead as stores begin to re-open across Europe and tourism picks up again.

Ankorstore is now live across 14 different markets. The majority of the company’s revenue comes from international markets — not its home market France. The company’s co-founder Nicolas Cohen mentions the U.K., Germany, the Netherlands and Sweden as growth markets.

The total addressable market is huge as the company has identified 800,000 independent shops across Europe that could potentially work with Ankorstore. And the success of other wholesale marketplaces, such as Faire, proves that this relatively new market is still largely untapped.

News: Rocket Lab recovered the first stage from its failed May 15 launch, a silver lining for its reusability program

Rocket Lab may have experienced mission failure and total payload loss during the company’s 20th planned mission on May 15, but it wasn’t all bad news, the company said in an update Monday. Importantly, the Electron rocket’s first stage – which contain nine Rutherford engines – performed as designed and did not contribute to the

Rocket Lab may have experienced mission failure and total payload loss during the company’s 20th planned mission on May 15, but it wasn’t all bad news, the company said in an update Monday.

Importantly, the Electron rocket’s first stage – which contain nine Rutherford engines – performed as designed and did not contribute to the flight failure. Rocket Lab further said the first stage completed a successful ocean splashdown using a parachute and that the company was able to retrieve it, and bring it back to its production complex.

Rocket Lab was also testing a redesigned heat shield on this mission made out of stainless steel, rather than aluminum, and that also seemed to function well. Testing these reusability system elements was a secondary objective here, since the primary goal is always to deliver the payloads of paying customers, but ultimately reusability could be absolutely crucial to the company’s long-term business.

“The new heat shield debuted in this flight protected the stage from the intense heat and forces experienced while re-entering Earth’s atmosphere and the program took yet another major advancement towards reusability of the rocket,” the company said Monday.

This is great news for Rocket Lab’s reusability program, as the first stage and engines can be examined and evaluated for further reflight trials on future missions. The company still intends on conducting its third recovery mission later this year. Rocket Lab said it was leading flight review of the May 15 mission failure with the support of the Federal Aviation Administration and anticipates the full review to be complete in the coming weeks.

News: With $21M in funding, Code Ocean aims to help researchers replicate data-heavy science

Every branch of science is increasingly reliant on big data sets and analysis, which means a growing confusion of formats and platforms — more than inconvenient, this can hinder the process of peer review and replication of research. Code Ocean hopes to make it easier for scientists to collaborate by making a flexible, shareable format

Every branch of science is increasingly reliant on big data sets and analysis, which means a growing confusion of formats and platforms — more than inconvenient, this can hinder the process of peer review and replication of research. Code Ocean hopes to make it easier for scientists to collaborate by making a flexible, shareable format and platform for any and all datasets and methods, and it has raised a total of $21M to build it out.

Certainly there’s an air of “Too many options? Try this one!” to this (and here’s the requisite relevant XKCD). But Code Ocean isn’t creating a competitor to successful tools like Jupyter or Gitlab or Docker — it’s more of a small-scale container platform that lets you wrap up all the necessary components of your data and analysis in an easily shared format, whatever platform they live on natively.

The trouble appears when you need to share what you’re doing with another researcher, whether they’re on the bench next to you or at a university across the country. It’s important for replication purposes that data analysis — just like any other scientific technique — be done exactly the same way. But there’s no guarantee that your colleague will use the same structures, formats, notation, labels, and so on.

That doesn’t mean it’s impossible to share your work, but it does add a lot of extra steps as would-be replicators or iterators check and double check that all the methods are the same, that the same versions of the same tools are being used in the same order, with the same settings, and so on. A tiny inconsistency can have major repercussions down the road.

Turns out this problem is similar in a way to how many cloud services are spun up. Software deployments can be as finicky as scientific experiments, and one solution to this is containers, which like tiny virtual machines include everything needed to accomplish a computing task, in a portable format compatible with many different setups. The idea is a natural one to transfer to the research world, where you can tie up the data, the software used, and the specific techniques and processes used to reach a given result all in one tidy package. That, at least, is the pitch Code Ocean offers for its platform and “Compute Capsules.”

Diagram showing how a "compute capsule" includes code, environment, and data.

Say you’re a microbiologist looking at the effectiveness of a promising compound on certain muscle cells. You’re working in R, writing in RStudio on a Ubuntu machine, and your data are such and such collected during an in vitro observation. While you would naturally declare all this when you publish, there’s no guarantee anyone has an Ubuntu laptop with a working Rstudio setup around, so even if you provide all the code it might be for nothing.

If however you put it on Code Ocean, like this, it makes all the relevant code available, and capable of being inspected and run unmodified with a click, or being fiddled with if a colleague is wondering about a certain piece. It works through a single link and web app, cross platform, and can even be embedded on a webpage like a document or video. (I’m going to try to do that below, but our backend is a little finicky. The capsule itself is here.)

More than that, though, the Compute Capsule can be repurposed by others with new data and modifications. Maybe the technique you put online is a general purpose RNA sequence analysis tool that works as long as you feed it properly formatted data, and that’s something others would have had to code from scratch in order to take advantage of some platforms.

Well, they can just clone your capsule, run it with their own data, and get their own results in addition to verifying your own. This can be done via the Code Ocean website or just by downloading a zip file of the whole thing and getting it running on their own computer, if they happen to have a compatible setup. A few more example capsules can be found here.

Screenshot of the Code Ocean workbench environment.

Image Credits: Code Ocean

This sort of cross-pollination of research techniques is as old as science, but modern data-heavy experimentation often ends up siloed because it can’t easily be shared and verified even though the code is technically available. That means other researchers move on, build their own thing, and further reinforce the silo system.

Right now there are about 2,000 public compute capsules on Code Ocean, most of which are associated with a published paper. Most have also been used by others, either to replicate or try something new, and some, like ultra-specific open source code libraries, have been used by thousands.

Naturally there are security concerns when working with proprietary or medically sensitive data, and the enterprise product allows the whole system to run on a private cloud platform. That way it would be more of an internal tool, and at major research institutions that in itself could be quite useful.

Code Ocean hopes that by being as inclusive as possible in terms of codebases, platforms, compute services and so on will make for a more collaborative environment at the cutting edge.

Clearly that ambition is shared by others, as the the company has raised $21M so far, $6M of which was in previously undisclosed investments and $15M in an A round announced today. The A round was led by Battery Ventures, with Digitalis Ventures, EBSCO, and Vaal Partners participating as well as numerous others.

The money will allow the company to further develop, scale, and promote its platform. With luck they’ll soon find themselves among the rarefied air often breathed by this sort of savvy SaaS — necessary, deeply integrated, and profitable.

 

News: Canoo’s electric microbus will start under $35,000 when it comes to market next year

Los Angeles-based electric vehicle startup Canoo is bringing its first vehicle to market next year. The company said Monday its electric microbus-slash-van will be available to buy in 2022 at a base price of $34,750 before tax incentives or add-ons. It’s now taking preorders in the United States for the “lifestyle” vehicle, as well as

Los Angeles-based electric vehicle startup Canoo is bringing its first vehicle to market next year. The company said Monday its electric microbus-slash-van will be available to buy in 2022 at a base price of $34,750 before tax incentives or add-ons. It’s now taking preorders in the United States for the “lifestyle” vehicle, as well as for its round-top pickup truck and multi-purpose delivery van.

While Canoo did not release pricing for the other two vehicles, it did said that deliveries for the pickup and production for the delivery van are slated to start as early as 2023. Customers can reserve a model by placing a $100 deposit per vehicle with the company.

The lifestyle van will come in four trims, including base, premium, adventure and so-called Lifestyle Vehicle Delivery The adventure variant, which is the top trim and comes with more ground clearance and beefier profile, does not yet have a price. The base, delivery (not to be confused with the bigger multipurpose delivery van) and premium models will be priced up to $49,950, the company said. The company said the lifestyle van is expected to be able to produce 300 hp and 332 pound-feet of torque with 250 miles of battery range.

Canoo is taking a different route than many other electric vehicle manufacturers. The company’s trio of vehicles all have the same proprietary “skateboard” platform architecture that houses the batteries and electric drivetrain in a chassis that sits under the vehicle’s cabin. This contributes to a similar design language between the vehicles, which all have the same wide front windshield and relatively low profile.

The company is especially deviating from competitors with its electric pickup, which is scheduled to go into production in early 2023. As opposed to rivals Ford and Rivian, which are emphasizing size and power in their respective F-150 Lighting and R1T pickup trucks, Canoo’s is smaller and more playful-looking. The Rivian R1T clocks in at 218 inches long, while the Canoo truck will be 184 inches. Canoo is also claiming a battery range of 200+ miles, far less than the 300+ boasted by other EV truck manufacturers. None of these companies have posted what the range will be when towing.

Canoo has undergone many transformations since its founding as Evelozcity in 2017. It was rebranded as Canoo in 2019 and merged with special purpose acquisition company Hennessy Capital Acquisition Corp. last December with a market valuation of $2.4 billion.

This year has been a bit bumpier for the company. The news on Monday comes less than a month after the company announced the resignations of its co-founder and CEO Ulrich Kranz and its general counsel Andrew Wolstan. Earlier this year, the company also lost its chief financial officer Paul Balciunas and its head of powertrain development.

Canoo’s skateboard architecture caught the eye of automaker Hyundai Motor Group, which last February said it would jointly develop an EV with Canoo based on the skateboard design. But during an investor call in March, Tony Aquila, who took over as company CEO following Kranz’s departure, said the deal was all but dead.

News: The battle for voice recognition inside vehicles is heating up

Once a feature only for luxury vehicles, voice recognition has moved into the mainstream as manufacturers promise a seamless connection between vehicles, homes and personal devices.

Once a fringe feature found only in luxury vehicles, voice recognition has moved into the mainstream as more automakers promise a seamless connection between your car, home and all the devices in between. The opportunity to reach consumers in their vehicles — and collect all that data — has automakers, tech giants like Amazon and Google, as well as investors scrambling for a share of the connected cars market.

But this is just the beginning. Voice recognition is expected to be an essential feature in future autonomous vehicles, which will see drivers ultimately surrendering the ability to control the car mechanically. Other applications for voice recognition are also emerging, including automated drones, two-wheelers and even air taxis.

The upshot? A market with significant growth potential and opportunities for investors and companies of all sizes.

The opportunity

The share of cars featuring in-car connected services, which voice recognition requires, grew to 45% in 2020 from 30% in 2018, and is expected to reach 60% by 2024, according to IHS Markit. Automakers keen to improve the consumer experience are driving that growth, said Kyle Davis, IHS Markit’s senior analyst for vehicle experience and connected car, noting that “one of the biggest aspects of the user experience is voice.”

Voice recognition is becoming more common, but that doesn’t mean the technology is always received well by consumers. J.D. Power surveys consistently show consumers complaining about voice recognition systems in vehicles, said John Scumniotales, director of products and design for Alexa Auto at Amazon. Scumniotales sees this as an opportunity to improve that experience with Alexa, and help Amazon gain an even larger foothold in the marketplace.

While there are clear giants in the voice recognition field, there won’t ever be one system or type of digital assistant in vehicles, according to Greg Basich, associate director of Strategy Analytics’ global automotive practice. “You’re going to see multiple systems,” Basich said. “So it’s definitely a growing space.”

Startups will have to contend with behemoths like Google and Amazon, Basich said, adding, “It’s a tough market if you’re a startup (…) You need to be doing something very new or very different.”

In his view, automakers prefer to work with larger, more established companies that can provide long-term support for the technology once it’s in the vehicle. Amazon’s Scumniotales agrees, as the big companies are at a huge advantage since it takes a significant amount of investment to build the technology and then to do it at the scale required for the automotive industry.

Yet, a closer look indicates there is not only room for a number of players, but automakers aren’t always placing their bets on the biggest companies.

The players

Partnerships between automakers and Amazon Alexa or Google get much of the buzz. However, Cerence, a publicly traded company spun off from Nuance Communications in October 2019, actually controls 87% of the embedded virtual personal assistant market, according to Davis.

“The space is pretty small and we’re the largest and most entrenched player in it,” Cerence CTO Prateek Kathpal said in a recent interview. He believes that his company is small enough to take risks, innovate and not be hamstrung by funding issues like a traditional startup.

In January, the company unveiled Cerence Drive, its new platform for mobility assistants that integrates cloud and embedded technologies to provide what it describes as a more seamless and accurate AI voice-recognition experience. The system can support more than 70 languages and can understand commands when vehicle occupants are speaking multiple languages at the same time. It also can comprehend complex, multi-step queries and commands like, “Find directions to Starbucks and also call my mom.”

Cerence has landed a number of customers over the years, including BMW, which has been using the company’s technology since 2000. Simon Euringer, head of personal assistants and voice interaction at BMW, is particularly impressed by Cerence’s hybrid system, which operates both via an embedded system and in the cloud, and provides answers through whichever of the two systems is quicker at the time.

News: Discuss the future of connected fitness with Mirror’s Brynn Putnam at Disrupt 2021

The global pandemic made some industries and utterly decimated others. The world of connected fitness falls firmly into the former. Along with top names like Peloton, Mirror had a banner year, including, most notably, sportwear company Lululemon’s acquisition of the brand for $500 million in June. It’s an impressive number for the five-year-old company, which

The global pandemic made some industries and utterly decimated others. The world of connected fitness falls firmly into the former. Along with top names like Peloton, Mirror had a banner year, including, most notably, sportwear company Lululemon’s acquisition of the brand for $500 million in June.

It’s an impressive number for the five-year-old company, which came out of stealth at TechCrunch Disrupt in 2018. Three years later, CEO Brynn Putnam will return to the Disrupt stage on September 21-23 to chart how the company grew from a small-scale startup to one of the leading names in a home fitness industry that saw a massive surge over the past year and a half.

A former ballerina and founder of New York fitness chain Refine Method, Putnam’s career has been a fascinating one — up to and including her time at Mirror. We’ll discuss how the company embraced a boom in connected fitness, why the time was right for acquisition and what the landscape for the industry will look like going forward.

Stay at home orders have had a profound impact on the way we get fit, leading many frequent gym goers to embrace high-tech, at-home methods. Is this the beginning of a sea change for the way the world works out? Or will a return to normal lead buyers to dust off their gym memberships? Find out at TC Disrupt his September and grab your tickets for under $99 for a limited time!

News: SpaceX launched 52 more Starlink satellites to orbit on Saturday

SpaceX successfully launched another 52 Starlink internet broadband satellites into orbit on Saturday, less than one week after it sent up the last batch. A small satellite from startup Capella Space and a Tyvak observation satellite also hitched a ride on the launch, which took off from Kennedy Space Center in Florida on Saturday evening.

SpaceX successfully launched another 52 Starlink internet broadband satellites into orbit on Saturday, less than one week after it sent up the last batch. A small satellite from startup Capella Space and a Tyvak observation satellite also hitched a ride on the launch, which took off from Kennedy Space Center in Florida on Saturday evening.

The launch used a veteran Falcon 9 booster that’s seen seven previous launch and landings, including during three Starlink missions. It departed from its launch pad at 6:56 PM ET (3:56 PM PT) and returned to Earth approximately nine minutes later. The rocket landed vertically on SpaceX’s autonomous drone ship “Of Course I Still Love You” in the Atlantic Ocean.

The launch company has now sent over 530 Starlink satellites to space since March, and all of them on reused rockets. Reusability is a key factor toward making the launches as cost-effective as possible, a factor that is especially important as SpaceX is both the launch provider and customer of the Starlink service. As a consequence, SpaceX has been able to rapidly accelerate its Starlink launch program, with 28 launches under its belt so far. At least one additional launch is likely in the works for later this month.

The company said earlier this month that it had received “over half a million” pre-order reservations for Starlink broadband service so far. Starlink is available in beta to customers in six countries: Australia, New Zealand, the U.S., the United Kingdom, Mexico and Canada. SpaceX CEO Elon Musk has said the company aims to have its low Earth orbit broadband internet network operational across nearly the entire globe as early as the end of 2021.

News: Powerup your networking with CrunchMatch at TC Sessions: Mobility 2021

When thousands of mobility mavens from around the world gather at TC Sessions: Mobility 2021 on June 9, you’re going to need an efficient, organized way to tap all that opportunity. Meeting folks is easy. Meeting the people who align with your goals and can help move your business forward — that’s even better. We’ve

When thousands of mobility mavens from around the world gather at TC Sessions: Mobility 2021 on June 9, you’re going to need an efficient, organized way to tap all that opportunity. Meeting folks is easy. Meeting the people who align with your goals and can help move your business forward — that’s even better. We’ve got just the tool to help you do that.

But first, a not-so-subtle reminder from the home office. Buy your pass to TC Sessions: Mobility 2021.

Now then, about that networking tool. We’re talking about CrunchMatch, our AI-powered networking platform. Simply register for Mobility 2021, answer a few quick questions about your business preferences, and within minutes you’re automatically registered for CrunchMatch. Keep your eyes peeled for an email telling you how and when to access the platform.

CrunchMatch goes to work searching for suitable matches based on the info you provided. The algorithm it uses makes fast, precise recommendations, and it gets smarter the more you use it.

So, who’s on your dream networking list — investors, founders, engineers, R&D teams, manufacturers, supply-chain experts? CrunchMatch helps you connect and schedule private 1:1 video meetings. Pitch those investors, demo products to potential clients, interview prospective employees. It’s a targeted, fast and efficient way to boost your brand and build your business.

“The networking at TC Sessions: Mobility is terrific. Our company’s building momentum in the U.S. market, and the opportunity to meet and talk with all the players is very important. The CrunchMatch platform made it easy to connect and schedule meetings.” — Melika Jahangiri, vice president at Wunder Mobility.

And if you’re wondering whether anything concrete comes out of networking at TC Sessions: Mobility, here’s how Karin Maake, senior director of communications at FlashParking, described her experience.

“TC Sessions: Mobility isn’t just an educational opportunity, it’s a real networking opportunity. Everyone was passionate and open to creating pilot programs or other partnerships. That was the most exciting part. And now — thanks to a conference connection — we’re talking with Goodyear’s Innovation Lab.”

Check out our roster of speaker and the event agenda and start strategizing about which mobility experts you want to include on your networking wish-list.

TC Sessions: Mobility 2021 takes place on June 9. This day-long conference will be packed to the gills with attendees from around the globe. Buy your pass today, and power up your networking with CrunchMatch.

Is your company interested in sponsoring or exhibiting at TC Sessions: Mobility 2021? Contact our sponsorship sales team by filling out this form.

News: Merge raises $4.5M to help B2B companies build customer-facing integrations

Merge, a startup that helps its users build customer-facing integrations with third-party tools, today announced that it has raised a $4.5 million seed round led by NEA. Additional angel investors include former MuleSoft CEO Greg Schott, Cloudflare CEO Matthew Prince, Expanse co-founders Tim Junio and Matt Kraning, and Jumpstart CEO Ben Herman. Launched in 2020,

Merge, a startup that helps its users build customer-facing integrations with third-party tools, today announced that it has raised a $4.5 million seed round led by NEA. Additional angel investors include former MuleSoft CEO Greg Schott, Cloudflare CEO Matthew Prince, Expanse co-founders Tim Junio and Matt Kraning, and Jumpstart CEO Ben Herman.

Launched in 2020, the core focus of Merge is to give B2B companies a unified API to access data from what is currently about 40 HR, payroll, recruiting and accounting platforms, with plans for expanding to additional areas soon. But Merge co-founders Shensi Ding and Gil Feig, who have been lifelong friends and previously worked at companies like Expanse and Jumpstart, stress that the service isn’t aiming to replace workflow tools Workato or Zapier.

Image Credits: Merge

“What we built is more similar to Plaid than MuleSoft or other things,” Feig said. “We built a unified API, so we’re fully embedded in a customer’s product and they build one integration with us and can automatically offer all these integrations to their customers. On top of that, we offer what we call integrations management, which is a suite of tools to automatically detect issues where the customer would have to get involved — automatically detect that stuff and handle it without ever having to involve engineering again.”

When Merge’s systems detect issues with an integration, maybe because a data schema in an API response has changed without notice (which happens with some regularity), Merge’s engineers can fix that within minutes, in part because the teams also built an internal no-code tool for building and managing these integrations.

Image Credits: Merge

As Ding also noted, B2B buyers today also simply expect their tools to feature integrations with the service they use. “Companies, when they purchase a vendor, they expect that vendor to have integrations with all the other vendors that they own,” she said. “They don’t want to have to purchase a vendor and then purchase a workflow product and then connect those products.”

And while Merge’s focus right now is squarely on a few verticals, the plan is to expand this to far more areas shortly, likely starting with CRM. “Salesforce has a pretty large market share, so we thought that it wasn’t going to be as interesting of a market,” Ding said. “But it turns out that their API is so complex that customers would still prefer to integrate with us instead if we simplify it for them.”

Ding and Feig tell me the company, which came out of stealth about two months ago, already has about 100 organizations on its platform, varying from seed-stage companies to publicly listed enterprises. The team credits its focus on security and reliability (and its SOC II compliance) with being able to bring on some of these larger companies despite being a seed-stage company itself.

To monetize the service, Merge offers a free tier (up to 10,000 API requests per month) and charges $0.01 per API request for additional usage. Unsurprisingly, the company also offers customized enterprise plans for its larger customers.

“The time and expense associated with building and maintaining myriad API integrations is a pain point we hear about consistently from our portfolio companies across all industries,” said NEA managing general partner Scott Sandell, who will join the company’s board. “Merge is tackling this ubiquitous problem head-on via their easy-to-use, unified API platform. Their platform has broad applicability and is a massive upgrade for any software company that needs to build, manage, and maintain multiple API integrations.”

News: AI-powered Jerry raises $28M to help you save money on car insurance

When Art Agrawal was growing up in India, a car ride was a rare treat, and car ownership was a dream. When he moved to the U.S. and bought his first car, he was shocked by how much it cost and how difficult it was to maintain a car. In 2012, he co-founded a company

When Art Agrawal was growing up in India, a car ride was a rare treat, and car ownership was a dream. When he moved to the U.S. and bought his first car, he was shocked by how much it cost and how difficult it was to maintain a car.

In 2012, he co-founded a company called YourMechanic that provides on-demand automotive mobile maintenance and repair services. Over the years, the challenge of helping consumers more easily find car insurance was in the back of his mind. So in 2017, he teamed up with Lina Zhang and  Musawir Shah to found Jerry, a mobile-first car ownership “super app.” The Palo Alto-based startup launched an AI/ML-powered car insurance comparison service in January 2019. It has quietly since amassed nearly 1 million customers across the United States as a licensed insurance broker.

“Today as a consumer, you have to go to multiple different places to deal with different things,” Argawal said. “Jerry is out to change that.”

And now today, Jerry is announcing that it has raised more than $57 million in funding, including a new $28 million Series B round led by Goodwater Capital. A group of angel investors also participated in the round include Greenlight president Johnson Cook and Greenlight CEO Timothy Sheehan; Tekion CEO Jay Vijayan; Jon McNeill, CEO of DVx Ventures and former president of Tesla and ex-COO of Lyft; Brandon Krieg, CEO of Stash and Ed Robinson, co-founder and president of Stash.

CEO Argawal says Jerry is different from other auto-related marketplaces out there in that it aims to help consumers with various aspects of car ownership (from repair to maintenance to insurance to warranties), rather than just one. Although for now it is mostly focused on insurance, it plans to use its new capital to move into other categories of car ownership.

The company also believes it is set apart from competitors in that it doesn’t refer a consumer to an insurance carrier’s site so that they still have to do the work of signing up with them separately, for example. Rather, Jerry uses automation to give consumers customized quotes from more than 45 insurance carriers “in 45 seconds.” The consumers can then sign on to the new carrier via Jerry, which would even cancel former policies on their behalf.

Image Credits: Jerry

“With Jerry, you can complete the whole transaction in our app,” Argawal said. “We don’t send you to another site. You don’t have to fill out a bunch of forms. You just give us some information, and we’ll instantly provide you with quotes.”

Its customers save on average about $800 a year on car insurance, the company claims. Jerry also offers a similar offering for home insurance but its focus is on car ownership.

The company must be doing something right. In 2020, Jerry saw its revenue surge by “10x.”

For some context, Jerry sold a few million dollars of insurance in 2019, according to Argawal. This year, he said, the company is on track to do “two to four times” more than last year’s numbers.

“There’s no other automated way to compare and buy car insurance, because all the APIs are not easily accessible,” he said. “What we have done is we have automated the end to end journey for the consumer using our infrastructure, which will only scale over time.”

Jerry makes recurring revenue from earning a percentage of the premium when a consumer purchases a policy on its site. So it’s partnered with carriers such as Progressive, Lemonade and Root to make that happen.

“A lot of the marketplaces are lead-gen. A very small percent of their revenue is reoccurring,” Argawal said. “For us, it’s 100% of our revenues.”

Down the line, Jerry wants to become a carrier itself, but is realistic in that it will take time to get licensed in all 50 states, so it expects those relationships to continue for some time.

Goodwater Capital’s Chi-Hua Chien notes that the insurance space has historically been a very challenging category from a customer experience perspective.

“They took something that has historically been painful, intimidating and difficult for the customer and made it effortless,” he told TechCrunch. “That experience will more broadly over time apply to comparison shopping and maintenance, too.”

Chien said he was also drawn to the category itself.

“This is a competitive category because 100% of drivers need to have auto insurance 100% of the time,” he said. “That’s a large market that’s not going to go away. And since Jerry is powered by AI, it will only serve customers better over time, and just grow faster.”

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