Monthly Archives: May 2021

News: Sennheiser sells off its consumer brand

Long-running German audio company Sennheiser today announced that it has found a buyer for its consumer brand. Swiss holding company Sonova — a giant in the hearing aid business — will be acquiring the brand in a deal expected to close by end of year. The deal will bring headphones and sound bars to Sonova’s

Long-running German audio company Sennheiser today announced that it has found a buyer for its consumer brand. Swiss holding company Sonova — a giant in the hearing aid business — will be acquiring the brand in a deal expected to close by end of year.

The deal will bring headphones and sound bars to Sonova’s existing portfolio, which is largely centered around healthcare products. Among other things, however, the deal could have interesting implications for the so-called hearables category, which can walk the line between headphones and healthcare products. Sennheiser, meanwhile, will shift the entirety of its focus to its pro products.

The company has been fairly open about its intentions. In February, it publicly announced that it was seeking a buyer for the division. “To be best able to exploit the potential in each of these markets, we are concentrating our own resources on the three business areas in the Professional division and are looking for a strong partner to invest in our Consumer business,” Co-CEO Daniel Sennheiser noted at the time.

Sennheiser describes the deal as a “permanent cooperation” between the two, including licensing the company’s name. The existing consumer wing, including many of its employees, will transfer to Sonovo. A press release announcing the news says there are currently 600 people employed by the brand, but no word on how many are expected the make that move.

“The combination of our strengths provides a very good starting point for future growth,” the company’s other co-CEO says in the release. “We are convinced that Sonova will strengthen the Sennheiser Consumer Business in the long term and capture the major growth opportunities.”

News: Longevity startup Gero AI has a mobile API for quantifying health changes

Sensor data from smartphones and wearables can meaningfully predict an individual’s ‘biological age’ and resilience to stress, according to Gero AI. The ‘longevity’ startup — which condenses its mission to the pithy goal of “hacking complex diseases and aging with Gero AI” — has developed an AI model to predict morbidity risk using ‘digital biomarkers’

Sensor data from smartphones and wearables can meaningfully predict an individual’s ‘biological age’ and resilience to stress, according to Gero AI.

The ‘longevity’ startup — which condenses its mission to the pithy goal of “hacking complex diseases and aging with Gero AI” — has developed an AI model to predict morbidity risk using ‘digital biomarkers’ that are based on identifying patterns in step-counter sensor data which tracks mobile users’ physical activity.

A simple measure of ‘steps’ isn’t nuanced enough on its own to predict individual health, is the contention. Gero’s AI has been trained on large amounts of biological data to spots patterns that can be linked to morbidity risk. It also measures how quickly a personal recovers from a biological stress — another biomarker that’s been linked to lifespan; i.e. the faster the body recovers from stress, the better the individual’s overall health prognosis.

A research paper Gero has had published in the peer-reviewed biomedical journal Aging explains how it trained deep neural networks to predict morbidity risk from mobile device sensor data — and was able to demonstrate that its biological age acceleration model was comparable to models based on blood test results.

Another paper, due to be published in the journal Nature Communications later this month, will go into detail on its device-derived measurement of biological resilience.

The Singapore-based startup, which has research roots in Russia — founded back in 2015 by a Russian scientist with a background in theoretical physics — has raised a total of $5 million in seed funding to date (in two tranches).

Backers come from both the biotech and the AI fields, per co-founder Peter Fedichev. Its investors include Belarus-based AI-focused early stage fund, Bulba Ventures (Yury Melnichek). On the pharma side, it has backing from some (unnamed) private individuals with links to Russian drug development firm, Valenta. (The pharma company itself is not an investor).

Fedichev is a theoretical physicist by training who, after his PhD and some ten years in academia, moved into biotech to work on molecular modelling and machine learning for drug discovery — where he got interested in the problem of ageing and decided to start the company.

As well as conducting its own biological research into longevity (studying mice and nematodes), it’s focused on developing an AI model for predicting the biological age and resilience to stress of humans — via sensor data captured by mobile devices.

“Health of course is much more than one number,” emphasizes Fedichev. “We should not have illusions about that. But if you are going to condense human health to one number then, for a lot of people, the biological age is the best number. It tells you — essentially — how toxic is your lifestyle… The more biological age you have relative to your chronological age years — that’s called biological acceleration — the more are your chances to get chronic disease, to get seasonal infectious diseases or also develop complications from those seasonal diseases.”

Gero has recently launched a (paid, for now) API, called GeroSense, that’s aimed at health and fitness apps so they can tap up its AI modelling to offer their users an individual assessment of biological age and resilience (aka recovery rate from stress back to that individual’s baseline).

Early partners are other longevity-focused companies, AgelessRx and Humanity Inc. But the idea is to get the model widely embedded into fitness apps where it will be able to send a steady stream of longitudinal activity data back to Gero, to further feed its AI’s predictive capabilities and support the wider research mission — where it hopes to progress anti-ageing drug discovery, working in partnerships with pharmaceutical companies.

The carrot for the fitness providers to embed the API is to offer their users a fun and potentially valuable feature: A personalized health measurement so they can track positive (or negative) biological changes — helping them quantify the value of whatever fitness service they’re using.

“Every health and wellness provider — maybe even a gym — can put into their app for example… and this thing can rank all their classes in the gym, all their systems in the gym, for their value for different kinds of users,” explains Fedichev.

“We developed these capabilities because we need to understand how ageing works in humans, not in mice. Once we developed it we’re using it in our sophisticated genetic research in order to find genes — we are testing them in the laboratory — but, this technology, the measurement of ageing from continuous signals like wearable devices, is a good trick on its own. So that’s why we announced this GeroSense project,” he goes on.

“Ageing is this gradual decline of your functional abilities which is bad but you can go to the gym and potentially improve them. But the problem is you’re losing this resilience. Which means that when you’re [biologically] stressed you cannot get back to the norm as quickly as possible. So we report this resilience. So when people start losing this resilience it means that they’re not robust anymore and the same level of stress as in their 20s would get them [knocked off] the rails.

“We believe this loss of resilience is one of the key ageing phenotypes because it tells you that you’re vulnerable for future diseases even before those diseases set in.”

“In-house everything is ageing. We are totally committed to ageing: Measurement and intervention,” adds Fedichev. “We want to building something like an operating system for longevity and wellness.”

Gero is also generating some revenue from two pilots with “top range” insurance companies — which Fedichev says it’s essentially running as a proof of business model at this stage. He also mentions an early pilot with Pepsi Co.

He sketches a link between how it hopes to work with insurance companies in the area of health outcomes with how Elon Musk is offering insurance products to owners of its sensor-laden Teslas, based on what it knows about how they drive — because both are putting sensor data in the driving seat, if you’ll pardon the pun. (“Essentially we are trying to do to humans what Elon Musk is trying to do to cars,” is how he puts it.)

But the nearer term plan is to raise more funding — and potentially switch to offering the API for free to really scale up the data capture potential.

Zooming out for a little context, it’s been almost a decade since Google-backed Calico launched with the moonshot mission of ‘fixing death’. Since then a small but growing field of ‘longevity’ startups has sprung up, conducting research into extending (in the first instance) human lifespan. (Ending death is, clearly, the moonshot atop the moonshot.) 

Death is still with us, of course, but the business of identifying possible drugs and therapeutics to stave off the grim reaper’s knock continues picking up pace — attracting a growing volume of investor dollars.

The trend is being fuelled by health and biological data becoming ever more plentiful and accessible, thanks to open research data initiatives and the proliferation of digital devices and services for tracking health, set alongside promising developments in the fast-evolving field of machine learning in areas like predictive healthcare and drug discovery.

Longevity has also seen a bit of an upsurge in interest in recent times as the coronavirus pandemic has concentrated minds on health and wellness, generally — and, well, mortality specifically.

Nonetheless, it remains a complex, multi-disciplinary business. Some of these biotech moonshots are focused on bioengineering and gene-editing — pushing for disease diagnosis and/or drug discovery.

Plenty are also — like Gero —  trying to use AI and big data analysis to better understand and counteract biological ageing, bringing together experts in physics, maths and biological science to hunt for biomarkers to further research aimed at combating age-related disease and deterioration.

Another recent example is AI startup Deep Longevity, which came out of stealth last summer — as a spinout from AI drug discovery startup Insilico Medicine — touting an AI ‘longevity as a service’ system which it claims can predict an individual’s biological age “significantly more accurately than conventional methods” (and which it also hopes will help scientists to unpick which “biological culprits drive aging-related diseases”, as it put it).

Gero AI is taking a different tack toward the same overarching goal — by honing in on data generated by activity sensors embedded into the everyday mobile devices people carry with them (or wear) as a proxy signal for studying their biology.

The advantage being that it doesn’t require a person to undergo regular (invasive) blood tests to get an ongoing measure of their own health. Instead our personal device can generate proxy signals for biological study passively — at vast scale and low cost. So the promise of Gero’s ‘digital biomarkers’ is they could democratize access to individual health prediction.

And while billionaires like Peter Thiel can afford to shell out for bespoke medical monitoring and interventions to try to stay one step ahead of death, such high end services simply won’t scale to the rest of us.

If its digital biomarkers live up to Gero’s claims, its approach could, at the least, help steer millions towards healthier lifestyles, while also generating rich data for longevity R&D — and to support the development of drugs that could extend human lifespan (albeit what such life-extending pills might cost is a whole other matter).

The insurance industry is naturally interested — with the potential for such tools to be used to nudge individuals towards healthier lifestyles and thereby reduce payout costs.

For individuals who are motivated to improve their health themselves, Fedichev says the issue now is it’s extremely hard for people to know exactly which lifestyle changes or interventions are best suited to their particular biology.

For example fasting has been shown in some studies to help combat biological ageing. But he notes that the approach may not be effective for everyone. The same may be true of other activities that are accepted to be generally beneficial for health (like exercise or eating or avoiding certain foods).

Again those rules of thumb may have a lot of nuance, depending on an individual’s particular biology. And scientific research is, inevitably, limited by access to funding. (Research can thus tend to focus on certain groups to the exclusion of others — e.g. men rather than women; or the young rather than middle aged.)

This is why Fedichev believes there’s a lot of value in creating a measure than can address health-related knowledge gaps at essentially no individual cost.

Gero has used longitudinal data from the UK’s biobank, one of its research partners, to verify its model’s measurements of biological age and resilience. But of course it hopes to go further — as it ingests more data. 

“Technically it’s not properly different what we are doing — it just happens that we can do it now because there are such efforts like UK biobank. Government money and also some industry sponsors money, maybe for the first time in the history of humanity, we have this situation where we have electronic medical records, genetics, wearable devices from hundreds of thousands of people, so it just became possible. It’s the convergence of several developments — technological but also what I would call ‘social technologies’ [like the UK biobank],” he tells TechCrunch.

“Imagine that for every diet, for every training routine, meditation… in order to make sure that we can actually optimize lifestyles — understand which things work, which do not [for each person] or maybe some experimental drugs which are already proved [to] extend lifespan in animals are working, maybe we can do something different.”

“When we will have 1M tracks [half a year’s worth of data on 1M individuals] we will combine that with genetics and solve ageing,” he adds, with entrepreneurial flourish. “The ambitious version of this plan is we’ll get this million tracks by the end of the year.”

Fitness and health apps are an obvious target partner for data-loving longevity researchers — but you can imagine it’ll be a mutual attraction. One side can bring the users, the other a halo of credibility comprised of deep tech and hard science.

“We expect that these [apps] will get lots of people and we will be able to analyze those people for them as a fun feature first, for their users. But in the background we will build the best model of human ageing,” Fedichev continues, predicting that scoring the effect of different fitness and wellness treatments will be “the next frontier” for wellness and health (Or, more pithily: “Wellness and health has to become digital and quantitive.”)

“What we are doing is we are bringing physicists into the analysis of human data. Since recently we have lots of biobanks, we have lots of signals — including from available devices which produce something like a few years’ long windows on the human ageing process. So it’s a dynamical system — like weather prediction or financial market predictions,” he also tells us.

“We cannot own the treatments because we cannot patent them but maybe we can own the personalization — the AI that personalized those treatments for you.”

From a startup perspective, one thing looks crystal clear: Personalization is here for the long haul.

 

News: Autonomous vehicle pioneers Karl Iagnemma and Chris Urmson are coming to TC Sessions: Mobility 2021

Long before the multimillion-dollar acquisitions and funding rounds pushed autonomous vehicles to the top of the hype cycle, Karl Iagnemma and Chris Urmson were researching and, later, developing the foundations of the technology. These pioneers — Iagnemma coming from MIT, Urmson from Carnegie Mellon University — would eventually go on to launch their own autonomous

Long before the multimillion-dollar acquisitions and funding rounds pushed autonomous vehicles to the top of the hype cycle, Karl Iagnemma and Chris Urmson were researching and, later, developing the foundations of the technology.

These pioneers — Iagnemma coming from MIT, Urmson from Carnegie Mellon University — would eventually go on to launch their own autonomous vehicle startups in an aim to finally bring years of R&D to the public.

That task isn’t over quite yet. Urmson, who is co-founder and CEO of Aurora, and Iagnemma, who is president and CEO of Motional, are still working on unlocking the technical and business problems that stand in the way of commercialization.

TechCrunch is excited to announce that Urmson and Iagnemma will be joining us on the virtual stage of TC Sessions: Mobility 2021. The one-day event, scheduled for June 9, is bringing together engineers and founders, investors and CEOs who are working on all the present and future ways people and packages will get from Point A to Point B. Iagnemma and Urmson will come to discuss the past, the present challenges and what both aim to do in the future. We’ll tackle questions about the technical problems that remain to be solved, the war over talent, the best business models and applications of autonomous vehicles and maybe even hear a few stories from the early days of testing and launching a startup.

Both guests have a long list of accolades and accomplishments — and too many to cover them all here.

Urmson has been working on AVs for more than 15 years. He earned his BSc in computer engineering from the University of Manitoba in 1998 and his PhD in Robotics from Carnegie Mellon University in 2005. He was a faculty member of the Robotics Institute at Carnegie Mellon University, where he worked with house-sized trucks, drove robots in the desert and was the technical director of the DARPA Urban and Grand Challenge teams. Urmson has authored more than 60 patents and 50 publications.

He left CMU and was one of the founding members of Google’s self-driving program, serving as its CTO. In 2017, Urmson co-founded Aurora with Sterling Anderson and Drew Bagnell.

Iagnemma is also considered an authority on robotics and driverless vehicles. He was the director of the Robotic Mobility Group at the Massachusetts Institute of Technology (MIT), where his research resulted in more than 150 technical publications, 50 issued or filed patents and numerous edited volumes, including books on the DARPA Grand Challenge and Urban Challenge autonomous vehicle competitions. He holds a BS from the University of Michigan, where he graduated first in his class, and MS and PhD degrees from MIT, where he was a National Science Foundation fellow.

In 2013, Iagnemma co-founded autonomous vehicle startup nuTonomy, one of the first to launch ride-hailing pilots. The company was acquired by Aptiv in late 2017. Aptiv and Hyundai formed the joint venture, which he now heads, in 2020. 

Iagnemma and Urmson are two of the many best and brightest minds in transportation who will be joining us on our virtual stage in June. Among the growing list of speakers are GM’s VP of Global Innovation Pam Fletcher, Scale AI CEO Alexandr Wang, Joby Aviation founder and CEO JoeBen Bevirt, investor and LinkedIn founder Reid Hoffman (whose special purpose acquisition company just merged with Joby), investors Clara Brenner of Urban Innovation Fund, Quin Garcia of Autotech Ventures and Rachel Holt of Construct Capital, Starship Technologies co-founder and CEO/CTO Ahti Heinla, Zoox co-founder and CTO Jesse Levinson, community organizer, transportation consultant and lawyer Tamika L. Butler, Remix co-founder and CEO Tiffany Chu and Revel co-founder and CEO Frank Reig.

Stay tuned for more announcements in the weeks leading up to the event. Early Bird sales end tonight, May 7 at 11:59 pm PT. Be sure to book your tickets ASAP and save $100.

News: Walmart’s Flipkart to cover insurance for all sellers in India and waive additional fees

Walmart-owned Flipkart is exempting storage and cancellation fees for sellers on its marketplace and also providing them with insurance coverage as the top e-commerce platform in India looks to maintain cordial relationships with more than 300,000 sellers who are facing severe disruption amid an unprecedented rise in the spread of coronavirus infections in the South

Walmart-owned Flipkart is exempting storage and cancellation fees for sellers on its marketplace and also providing them with insurance coverage as the top e-commerce platform in India looks to maintain cordial relationships with more than 300,000 sellers who are facing severe disruption amid an unprecedented rise in the spread of coronavirus infections in the South Asian nation.

The Bangalore-headquartered firm said Friday evening that it is exempting storage fees to sellers who use the company’s fulfilment centres, and also waiving off the cancellation fees until the end of the month. (Several Indian states, as they did during the first wave of the virus, have imposed restrictions on sale and delivery of non-essential items.)

Flipkart will bear 100% premium of COVID insurance to all sellers that transact on the platform, covering any hospitalization and consultation fees between 50,000 Indian rupees ($685) to 300,000 Indian rupees ($4095).

The news today comes a week after Amazon, Flipkart’s chief rival in India, announced it was waiving 50% of the referral fee sellers are required to pay the e-commerce firm for this month, though not all sellers are qualified to avail this benefit. (The company said earlier this week that it was also postponing Prime Day in India and Canada due to the growing cases of the infection.)

Flipkart said it is also making it easier for sellers to access working capital from the firm without any incremental cost, though it did not specify the steps it had made.

It is also extending the window for the Seller Protection Fund to 30 days (from 14) to make claims on returned products. Flipkart said it will also ease its policies and performance metrics to ensure that they are not impacted by state-led lockdowns.

Flipkart, which as of last year was working to go public this year, said it has partnered with Vriddhi, Walmart’s Supplier Development Program in India, to organize webinars for small businesses to share best practices to ensure safety of workforce and provide insights to stay afloat amid the crisis.

“Through these testing times it is our constant effort to support our seller partners who face immense operational challenges as a result of the pandemic. As a democratic marketplace, we want to ensure that our lakhs [hundreds of thousands] of seller partners are able to continue operations and keep the economic engine running,” said Jagjeet Harode, senior director and head of Marketplace at Flipkart, in a statement.

“With them and their family’s financial and health safety in mind, we have rolled out these initiatives that will bring them the much-needed respite to keep their businesses active.”

India has been reporting over 400,00 daily infections this week, more than any other nation, as the world’s second-most populated nation struggles to contain the second wave of the virus. Scores of firms, startups, investors and people alike are uniting to help the nation fight the virus, which has severely impacted the healthcare facilities.

News: What Square’s smashing earnings tell us about consumer bitcoin demand

Today we’re talking Square earnings and its bitcoin base, especially in how it relates to the results of other entities that offer bitcoin sales.

Shares of Square are up more than 6% today after the American fintech company reported a staggering $5.06 billion in revenue in its Q1 2021 earnings report, far ahead of an expected tally of $3.36 billion.

By posting the huge revenue beat, Square grew 266% compared to its year-ago Q1. Because that’s the sort of growth that we generally expect to see from early-stage startups instead of maturing public companies, some exploration is in order. In short, bitcoin revenues from Square, and how they fit into its accounting, are responsible for much of its outsized growth.

And that’s something we need to talk about.


The Exchange explores startups, markets and money. 

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Square’s performance apart from its bitcoin-driven results were strong. But its bitcoin incomes underscore not only rising consumer sentiment concerning bitcoin, but also an interesting angle on the question of Coinbase and its long-term fee structure.

Mix in the huge growth in bitcoin investment activity that Robinhood has seen and we can easily understand that, at least in the American market, consumers are not beholden to traditional cryptocurrency arguments regarding coin ownership. And the pace at which non-Coinbase entities are accreting trading volume could point to more competition at the now-public crypto exchange than some fans, backers and believers anticipated.

So today, we’re talking Square earnings and its bitcoin base, especially in how it relates to the results of other entities that offer bitcoin sales. Our broader question is whether consumers are going to behave as many expect, or if the less crypto-focused on-ramps to bitcoin and its brethren will prove more popular than many crypto-enthusiasts anticipate.

A bitcoin boom

If we remove the bitcoin top line from Square’s quarter, the company posted $1.55 billion in revenue, a figure that was up 44% compared to its year-ago period. That’s impressive.

But the company’s bitcoin-related revenue growth was far more so. From $306.1 million in Q1 2020 bitcoin revenue to $3.51 billion in Q1 2021, Square wrote in its report that it saw “significant growth in bitcoin revenue year over year,” up “approximately 11x.”

News: TC Sessions: Mobility 2021 early bird price extended for one more day

“I feel the need — the need for speed.” That could be the official mobility startup founder credo, amirite? Speed and agility are important, but don’t move so quickly that you miss the chance to save $100 on a pass to TC Sessions: Mobility 2021 on June 9. We’ve extended our early-bird price for just

I feel the need — the need for speed.” That could be the official mobility startup founder credo, amirite? Speed and agility are important, but don’t move so quickly that you miss the chance to save $100 on a pass to TC Sessions: Mobility 2021 on June 9.

We’ve extended our early-bird price for just one more day. Slow your EV roll, reroute your autonomous vehicle or dock your scooter just long enough to buy a pass before the extended deadline expires on May 7, at 11:59 pm (PT).

TC Sessions: Mobility is where you’ll learn about the latest trends and tech advancements across the mobility spectrum — autonomous trucks, AI, EVs, the future of flight, regulatory issues, micromobility, robotics and more — from the brightest minds, makers and investors around the world.

Don’t just take our word for it. Here are what past attendees shared with us about their TC Sessions: Mobility experience.

“The virtual dynamic gave the conference a relaxed, conversational vibe. The speakers and TechCrunch editors were more accessible, and that was a welcome surprise.” — Rachael Wilcox, creative producer, Volvo Cars.

“TC Sessions: Mobility exceeded my expectations in terms of useful content. Every panel discussion I attended, every interaction I had was relevant to my work or to my daily life — because we don’t stop living at 5 pm.” — Jens Lehmann, technical lead and product manager, SAP.

“People want to be around what’s interesting and learn what trends and issues they need to pay attention to. Even large companies like GM and Ford were there, because they’re starting to see the trend move toward mobility. They want to learn from the experts, and TC Sessions: Mobility has all the experts.” — Melika Jahangiri, vice president at Wunder Mobility.

Did someone say experts? Here are just a few of the leading voices in the mobility ecosystem who will offer their invaluable insight and advice.

  • Kameale Terry, co-founder and CEO at ChargerHelp! Inc.
  • Ahti Heinla, co-founder, CEO and CTO at Starship Technologies
  • Clara Brenner, co-founder and managing partner at Urban Innovation Fund

Check the event agenda and start planning your schedule now. Your pass includes both live-stream and video-on-demand, so you won’t miss a minute of startup action.

TC Sessions: Mobility 2021 takes place on June 9, and you have just one last shot to save $100 on the price of admission. Buy your pass before the price goes up and the savings disappear on May 7, at 11:59 pm (PT).

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

News: Credit Karma reinvents cash back rewards with instant payback

Credit Karma Money, a new checking and savings account from the company best known for its credit monitoring service, recently launched a significant new feature. Called Instant Karma, the program rewards users by randomly refunding purchases or adding money to cash deposits. So far, since launching the feature, Credit Karma says it has rewarded 100,000

Credit Karma Money, a new checking and savings account from the company best known for its credit monitoring service, recently launched a significant new feature. Called Instant Karma, the program rewards users by randomly refunding purchases or adding money to cash deposits. So far, since launching the feature, Credit Karma says it has rewarded 100,000 transactions, worth $5 million.

I spoke to Poulomi Damany, General Manager at Credit Karma, who said the idea behind Credit Karma Money is to “change people’s relationship with money.” Credit Karma Instant Karma is an extension of that goal.

The process works differently from other cash back offers. For one, this product is linked to a debt card rather than a credit card. Credit Karma Product Manger Kyle Thibaut says that’s by design as their target demographic tends to stay away from credit cards. Second, the refund, though random, happens instantly. Swipe your card at a grocery store, and if selected, the money spent on the transaction is refunded instantly.

“Gen Z do not necessarily like credit cards,” Thibaut said. ” When you talk to them, they like debit cards and debit cards are the way they spend. Debit card usage is higher than credit cards in the US, and it’s actually growing while credit card usage is declining.”

According to Damany and Thibaut, a large portion of Credit Karma’s 110 million members are millennials and this product, along with Credit Karma Money, are targeted at this demographic. They say this model lines up better with the spending habits of this generation, who are generally not optimizing their spending to maximize credit card rewards.

At this time, the company is unwilling to share user numbers for Credit karma Money and the amount of users who received a refund from Instant Karma. The company says it is saving those numbers for an upcoming earnings release — Credit Karma is owned by Turbo Tax maker, Intuit.

News: To buy time for a failing startup, recreate the engineering process

The drastic approach I took to recovering our company is often referred to as a “full reset” — the old company is essentially annihilated and a new company is formed from the remaining pieces.

Jason Meller
Contributor

Jason Meller is the founder and CEO of Kolide, an endpoint security solution for teams that value productivity, transparency and employee happiness.

In non-aerobatic fixed-wing aviation, spins are an emergency. If you don’t have spin recovery training, you can easily make things worse, dramatically increasing your chances of crashing. Despite the life-and-death consequences, licensed amateur pilots in the United States are not required to train for this. Uncontrolled spins don’t happen often enough to warrant the training.

Startups can enter the equivalent of a spin as well. My startup, Kolide, entered a dangerous spin in early 2018, only a year after our Series A fundraise. We had little traction and we were quickly burning through our sizable cash reserves. We were spinning out of control, certain to hit the ground in no time.

Kolide had a lot going for it that enabled me to recover the company, but by far the most important was that we recognized we were in a spin very early, and we had enough cash remaining (and therefore sufficient time) to execute a recovery plan.

All spins start with a stall — a reduction in lift when either the aircraft is flying too slowly or the nose is pointed too high. In Kolide’s case, we were doing both.

First, we raised too much money too fast. In order to justify the post-money valuation that came with the raise, we set unattainable goals. To make matters worse, we lacked the confidence in our product and strategy, so we developed our solution with hesitancy, underspending in critical areas. As a result, we were flying too steep and too slow. We stalled.

If a stall isn’t corrected promptly, a spin can develop. Flat spins are one of the worst. Once the flat spin starts, there are a number of techniques experienced pilots should perform to recover the aircraft. Nearly all of these techniques require a critical resource, altitude — or, put another way, time.

Just like amateur pilots, startup CEOs don’t receive spin recovery training. When Kolide was spinning out of control, the vast majority of the advice I received was to cut our losses and sell the company or return the money to the investors.

At the time, I didn’t find any promising examples of companies with these same problems successfully recovering; I found only smoldering wreckage. By February 2019, my co-founders departed.

Despite this tell-tale sign of imminent demise, I was ultimately able to recover and put us on track for a great fundraise. Here’s how I recreated the engineering process.

Buying time

Kolide had a lot going for it that enabled me to recover the company, but by far the most important was that we recognized we were in a spin very early, and we had enough cash remaining (and therefore sufficient time) to execute a recovery plan. Even waiting just a few more months would have likely changed the outcome.

News: $99 passes to TC Disrupt 2021 disappear next week

TechCrunch Disrupt — it’s the must-attend conference for anyone and everyone connected to the global startup community. Don’t miss your chance to attend TC Disrupt 2021, on September 21-23, for less than $100. That’s a tidy little bottom-line booster, yes? Three opportunity-packed days can be yours at the super early-bird price — just $99 —

TechCrunch Disrupt — it’s the must-attend conference for anyone and everyone connected to the global startup community. Don’t miss your chance to attend TC Disrupt 2021, on September 21-23, for less than $100. That’s a tidy little bottom-line booster, yes?

Three opportunity-packed days can be yours at the super early-bird price — just $99 — but not for long. Prices increase next week. Purchase your pass to TC Disrupt 2021 before May 13, 11:59 pm (PST).

Come and listen to, learn from and engage with some of the leading voices in the startup world today. We’re talking dozens of in-depth, one-on-one interviews, moderated panel discussions and breakout sessions with folks like:

  • Tope Awotona, the founder and CEO of Calendly
  • Mercedes Bent, a partner at Lightspeed Venture Partners
  • Julia Collins, the founder and CEO of Planet FWD and Moonshot
  • Leslie Feinzaig, the founder and CEO of Female Founders Alliance

The all-virtual nature of Disrupt 2021 means that you can connect, network and collaborate with people across the globe — and in Silicon Valley. Still on the fence? Listen to what past attendees have told us about their Disrupt experiences:

“Tech startups go to Disrupt to show off their stuff. It’s the perfect place to scope out the competition, network with potential investors, get a feel for how other companies position themselves and to see what’s trending.” — Jessica McLean, director of marketing and communications, Infinite-Compute.

“I attend TechCrunch Disrupt every year because it’s different every time. It’s inspiring every single time. I’m never bored. Ever. I always learn something, whether it’s a new company, a new topic or a deeper exploration of a familiar technology. It’s great. I love stuff like that.” — Rachael Wilcox, creative producer, Volvo Cars.

“The virtual platform’s chat feature made it easy to connect with participants. People got creative using it to promote their business, like posting a LinkedIn profile or offering 15-minute time slots to review business pitches. I even saw a product-naming competition. You could find lots of opportunity rolling through the chat area.” — Ada Lau, manager of market development, Hong Kong Science and Technology Parks Corporation.

And there are still more opportunities to discover at Disrupt. Don’t miss the Startup Battlefield as roughly 25 stand-out startups vie for $100,000. If you want to vie, you must apply by May 13 at 11:59 pm (PT).

Startup Alley — our expo area and the heart of every Disrupt — is synonymous with opportunity. Discover all the new perks and bennies that come with exhibiting there, including a shot at participating in Startup Alley+.

TechCrunch Disrupt 2021 takes place on September 21-23, and you can grab all the opportunity for less than $100. Sound good? Great — just remember that prices go up next week. Buy your pass before May 13, 11:59 pm (PST).

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

News: If 12% is the new 30%, 4% is the new 12%

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines. The whole team was aboard for this recording, with Grace and Chris behind the scenes, and Danny, Alex, and Natasha on the mics. We had to cut more than we included this week, which should give you a

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

The whole team was aboard for this recording, with Grace and Chris behind the scenes, and Danny, Alex, and Natasha on the mics. We had to cut more than we included this week, which should give you a good idea of how busy the startup and VC worlds are of late.

Make sure that you are following the podcast on Twitter, where we post all sorts of memes and cuts and, perhaps, the occasional video here and there. That aside, here’s the rundown:

  • Investing legend David Swenson passed away.
  • Twitter is buying Scroll (neat, very cool) as part of its subscription push, but also killing Nuzzel in the process (bad, very uncool). Natasha and Danny fill us in on why Nuzzel will be missed. Alex has thoughts on why Twitter-Scroll is good.
  • Epic bought ArtStation and cut its marketplace take rate. This is the future, says Danny, who throws his own estimates in, too.
  • Sony and Discord are tying up after the Microsoft-Discord deal fell apart.
  • Edtech is doing the edtech thing in which it raises money and consolidates, as shown by Kahoot’s latest scoop.
  • A friend of the pod, Jomayra Herrera, is joining Reach Capital as its first ever outside-partner hire.
  • Uber is teaming up with Arrival for ride-hailing designed electric vehicles. We’re pretty bullish on the idea. Also Alex likes to say “microfactories.”
  • IVF startups are raising venture capital, and this time its Alife Health that we’re talking about. 
  • WorkBoard raised again. Alex once again made us talk about OKR-focused startups. He needs to get a life, and so does the rest of the Equity team which fought to do the transition into this segment.
  • To end, we spoke about Leda Health, a new startup focused on at-home rape kits for sexual assault survivors. It’s a controversial company, and we discuss critiques and opportunities,

And that’s our show! No private equity deal can slow the Equity team down, so we’ll see you Monday!

Equity drops every Monday at 7:00 a.m. PST, Wednesday, and Friday at 6:00 AM PST, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts!

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