Monthly Archives: July 2021

News: Acelerate raises $14.44M Series A to turn existing restaurants into cloud kitchens

Acelerate, a software company looking to help restaurants make the most out of their infrastructure, is today announcing the close of a $14.44 million Series A financing led by Sequoia Capital. The startup was founded by George Jacobs, who grew up working in his family’s pizzeria. He attended USC with a plan to get a

Acelerate, a software company looking to help restaurants make the most out of their infrastructure, is today announcing the close of a $14.44 million Series A financing led by Sequoia Capital.

The startup was founded by George Jacobs, who grew up working in his family’s pizzeria. He attended USC with a plan to get a business degree and ultimately expand Georgee’s Pizza, but realized that there was an opportunity beyond his own family restaurant to help all kinds of restaurants in the wake of the tech boom.

After a couple of years at Doordash, he came up with the idea for Acelerate, a startup working to give restaurants a way to make the most of their infrastructure.

The first piece of the business is a simple software solution that allows restaurants to manage their entire digital footprint, from order management, pricing, menu updates and changes, to sales and marketing. The idea is that many restaurants are selling through their own brick-and-mortar location, of course, but also selling through a bevy of other platforms like Doordash, Uber Eats, or Seamless. On top of that, their restaurants are listed on Opentable, Yelp, and other marketing platforms.

It can be a lot to manage.

Acelerate’s SaaS product allows restaurants to manage all of these platforms from a single spot.

But where the company really differentiates from rival players is its licensing business. Acelerate has developed seven proprietary restaurant brands, all with their own menus. They license those brands, complete with the recipes, cooking instructions, and a training guide to restaurants who want to offer more through their online sales portals.

For example, an ice cream shop working with Acelerate may have a strong business in the summer, but struggle in the winter. That same ice cream shop may have a full working kitchen that rarely gets used save for what it takes to make ice cream and cones.

Acelerate allows that shop to license the rights to operate a burger shop or a BBQ joint out of that same space, teaching employees how to make a bacon cheeseburger or a rack of ribs, thus creating an additional revenue stream for that restaurant during leaner months for its traditional business.

Moreover, Acelerate not only licenses its own brands, but works with existing restaurant brands to license out their menus to other restaurant partners.

Thus far, Acelerate has signed on three existing restaurants as brand licensing partners.

Big chains, like Applebees, only use the software piece of Acelerate, but smaller restaurants gravitate toward the licensing product as a way to expand their business, it said. As cloud kitchens trend upward, the startup has found a way to turn existing restaurants into cloud kitchens, as well.

The software side of the business operates as expected, on a monthly subscription model. On the licensing side, restaurants can license one of the brands offered through Acelerate, either homegrown or third-party. Acelerate collects a 40 percent fee from restaurant partners, which includes all third-party marketplace, order processing and delivery fees, as well as promotional spend. The startup also negotiates national food distribution deals to help restaurants get up and running with a new ingredient list.

Jacobs told TechCrunch that Acelerate is currently working with thousands of restaurants on the software side, and that hundreds of stores are licensing the Acelerate brands.

The startup’s new capital will be used towards further growth of the team and product. Right now, Acelerate has 11 full time employees, and about half of them are women or underrepresented minorities, according to Jacobs.

Jacobs explained that the unique opportunity for the company is that it’s not purely a software play that sits on top of an already complicated tech stack.

“The big opportunity lies in the combination of two great pieces of operating a restaurant, which is technology and operations,” said Jacobs. “To do that, we believe that proximity is power and we need to be as close to our customers as possible. That’s why we’re really doubling down on building local teams and ensuring that we’re hands on with our operator and restaurant partners.”

News: Former Nutanix execs launch new startup with $50M seed round

Today a new software company from two former Nutanix executives called DevRev emerged from stealth with a $50 million seed round from Mayfield Fund, Khosla Ventures and several industry luminaries. The company, which aims to bring the coding and revenue processes closer together, already has 75 employees working on the new software platform, which they

Today a new software company from two former Nutanix executives called DevRev emerged from stealth with a $50 million seed round from Mayfield Fund, Khosla Ventures and several industry luminaries. The company, which aims to bring the coding and revenue processes closer together, already has 75 employees working on the new software platform, which they hope to have ready to launch later this year.

It’s not every day you see a $50 million seed round, but perhaps the fact that former Nutanix co-founder and CEO Dheeraj Pandey and his former SVP of engineering Manoj Agarwal are involved, could help explain the investor enthusiasm for the new project.

Pandey says that he has seen a gap between developers and the revenue the applications they create are supposed to generate. The idea behind the new company is to break down the silos that exist between the front of the office and the back of the office and give developers a deeper understanding of the customers using their products, or at least that’s the theory.

“Dev and Rev are Yin and Yang to each other. In today’s world they are really far apart with tons of bureaucracy between these two parties. Our goal to bring dev and rev to get rid of the bureaucracy,” Pandey told me

The company intends to build an API to help developers pull this information from existing systems for companies already working with a CRM tool like Salesforce, while helping gather that customer information for younger companies who might lack a tool. Regardless, the idea is to bring that info where the developer can see it to help build better products.

The way it works in most companies is customer service or sales hears complaints or suggestions about the product, and tickets get generated, but putting these issues in front of the people building the software isn’t always easy or direct. DevRev hopes to change that.

Navin Chaddha, managing director at Mayfield, whose firm is investing in DevRev, sees a need to bring these different parts of the company together in a more direct way. “The code that developers work on today is used by support as well as marketing and sales. By bringing the world of issues and tickets closer to the world of revenue and growth, DevRev’s unified platform bridges the gap between developer and customer and elevates the developer to a business leader,” Chaddha said.

With 75 employees working on the problem, DevRev is already a substantial startup. As experienced founders Pandey and Agarwal certainly understand the importance of building a diverse and inclusive company. Pandey sees the top of the employment funnel really being focused on engineering, design and business schools and the company is working to bring in a diverse group of young employees.

“[We are looking at ways] to search for talent and to promote talent, to make them into leaders. I think we have an empty canvas by the way, and we have this idea of COVID, and being able to do remote work has really grown the top of the funnel, the mouth of the funnel now can be anything and everything. […] [Colleges and universities] are I would say the real source of all diversity at the end of the day. We have seen how engineering schools, design schools and business schools are actually getting so diverse,” he said.

The company is working to build the product now and reaching out to developer communities on Discord, GitHub and other places that developers gather online to get their input, while testing and improving the product in-house and with design partners.

Nutanix, the founders’ previous company, launched in 2009 and raised over a $1 billion before going public in 2016. Pandey and Agarwal left Nutanix at the end of last year to launch the new company.

News: India bans Mastercard from adding new customers

Reserve Bank of India has indefinitely barred Mastercard from issuing new debit, credit, or prepaid cards to customers in the South Asian market over noncompliance with local data storage rules. The South Asian market’s central bank said the new restrictions will go into effect on July 22. “Notwithstanding lapse of considerable time and adequate opportunities

Reserve Bank of India has indefinitely barred Mastercard from issuing new debit, credit, or prepaid cards to customers in the South Asian market over noncompliance with local data storage rules.

The South Asian market’s central bank said the new restrictions will go into effect on July 22. “Notwithstanding lapse of considerable time and adequate opportunities being given, the entity has been found to be non-compliant with the directions on Storage of Payment System Data,” RBI said in a statement Wednesday.

The new order won’t impact existing customers of Mastercard, which is one of the top three card issuers in India, RBI said. “Mastercard shall advice all card issuing banks and non-banks to conform to these directions,” it said.

This isn’t the first time India’s central bank has penalized any firm for noncompliance with local data-storage rules, which was unveiled in 2018 and mandated compliance within six months. The rules require payments firms to store all Indian transaction data within servers in the country.

In April, RBI restricted American Express and Diners Club from adding new customers, citing violation of the same rules.

Visa, Mastercard and several other firms, as well as the U.S. government, have previously requested New Delhi to reconsider its rules, which they have argued is designed to allow the regulator “unfettered supervisory access.”

Visa, Mastercard and American Express had also lobbied to either significantly change the rules or completely discard it.

News: Ex-Plaid employees raise $30M for Stytch, an API-first passwordless authentication platform

There are far fewer annoying things than managing one’s passwords. There are a bunch of companies out there to help you attempt to do that. And there’s also a number of companies that want to go a step further and eliminate the password completely. One such company, Stytch, just raised $30 million in a Series

There are far fewer annoying things than managing one’s passwords.

There are a bunch of companies out there to help you attempt to do that. And there’s also a number of companies that want to go a step further and eliminate the password completely.

One such company, Stytch, just raised $30 million in a Series A round of funding as it launches out of beta with its API-first passwordless authentication platform.

The round caught our attention for a couple of reasons.

For one, this is the same startup that just months earlier announced it had raised a $6.25 million seed round led by Benchmark with participation from Index Ventures and a number of angels including Plaid co-founder William Hockey. That round was speculated to have valued the new company at a staggering $200 million (although that was never confirmed), and was actually raised last summer around the time of Stytch’s founding, but only announced this year. Other angels that have backed the company include Figma co-founder and CEO Dylan Field, Very Good Security co-founder Mahmoud Abdelkader, startup advisor Elad Gil and early Stripe employee and Cocoon co-founder Amber Feng.

Also notable about this round is that Stytch was founded by two former Plaid employees, Reed McGinley-Stempel (CEO) and Julianna Lamb (CTO), who built user authentication features that “millions” use to connect their bank accounts to apps like Venmo, Coinbase and Robinhood. The company was founded on the premise that passwords are no longer secure, and make companies easy targets for hackers and expose them to account takeover risk.

Lamb says that as she and McGinley-Stempel worked together at Plaid on user authentication, they realized how frustrating it is to build sign-up and login flows.

“In addition to it being complicated, it’s resource intensive and error-prone to build in house,” she told TechCrunch. “The other thing that really frustrated us was that the core building blocks that all companies use for authentication had really significant security and conversion issues. It struck us that the web has improved in so many ways over the past few decades, but authentication is still stuck in the 1990s.”

Thrive Capital led the Series A, which also included participation from Coatue Management and existing backers Benchmark and Index. The company declined to reveal its new valuation, although sources say only that it is “north of $200 million.”

Stytch claims that it simplifies the authentication process by giving developers and users the “tools and infrastructure to incorporate passwordless authentication methods into modern applications.”

Specifically, the team is creating “simple” APIs and SDKs (software development kits) that the founders say allow “any company to boost user onboarding and retention by removing passwords from their application, while improving security and saving significant engineering time in the process.”

Image Credits: Stytch

In its first year of operation, Stytch released its product in beta to more than 350 developers who have added passwordless features such as email magic links, SMS and WhatsApp passcodes and one-click user invitations into their user onboarding and authentication login flows. As mentioned above, Stytch launched out of beta this week to make all of the features publicly available in conjunction with the funding announcement. 

“What we found is that it makes more sense to be more flexible with developers,” Lamb told TechCrunch. “The thing that even surprised us about the API-first approach is that we now also have a handful of Fortune 500 companies using the product and the primary reasoning from their standpoint was one of the simplicity of getting set up on the platform. It took them an hour rather than the multiple months they sometimes spend with other providers. There is also the direct API piece where it’s just a much more flexible way to think about workflows in onboarding or login.”

Nearly 65% of users reuse passwords across accounts, which can pose major security threats and breach liabilities, according to a study conducted by Google. Also, many people struggle with remembering passwords and the password reset process can be so frustrating that many users just give up on the account.

This can negatively impact businesses that rely on e-commerce sites, who lose customers over that frustration.

Thrive’s Gaurav Ahuja, who is taking a seat on Stytch’s board with the funding round, believes that the startup’s product is specifically designed for improving sign-up conversion and user retention, and its customizable front end tools help companies get started “quickly.”

He said his firm talked to many developers who used it and saw “how impressed they were with the company’s best-in-class API docs and speed to go live.”

Over the past several years we’ve seen that most authentication systems are both outdated and pose a security risk to users,” Ahuja told TechCrunch via email. “Stytch is addressing both of these issues head on.”

The new capital will be used to roll out more authentication options, including biometrics, WebAuthn, OAuth logins, QR codes and push notification login. The company also plans to launch additional user infrastructure features and to build out session management and advanced fraud detection solutions. Stytch also aims to hire 20 people by year’s end.

Stytch is not the only company out to kill the password. Boston-based Transmit Security in June raised a massive $543 million in Series A funding in what was believed to be the largest Series A investment in cybersecurity history and one of the highest valuations for a bootstrapped company. Microsoft has announced plans to make Windows 10 password-free, and Apple recently previewed Passkeys in iCloud Keychain, a method of passwordless authentication powered by WebAuth.

 

News: Unybrands brings in $300M to acquire more e-commerce businesses

Unybrands is the latest e-commerce aggregator to pick up a significant investment, this time closing $300 million in growth capital from Crayhill Capital Management.

Unybrands is the latest e-commerce aggregator to pick up a significant investment, this time closing $300 million in growth capital from Crayhill Capital Management.

The Miami-based company, which created a platform for e-commerce businesses looking to scale their operations on and off Amazon, was founded in 2020. It previously raised a $25 million seed round in February.

Unybrands looks for brands across eight categories, including baby, garden and outdoor, sports and fitness and personal care, and provides capital and resources to grow those brands.

Since the February seed round, Unybrands said it closed on multiple acquisitions in both the United States and Europe, and along with more in the works, will put the company on track to beat its 2021 projections of completing 20 deals.

Ulrich Kratz, co-founder and CEO, told TechCrunch via email that the funding “gives us more firepower to execute and overachieve on our business goals.” It will also enable the company to accelerate acquisitions of Fulfillment By Amazon brands, invest in technology development and further build out its team. Unybrands has more than 25 full-time employees across the U.S., Europe and Asia and plans to more than double its headcount by the end of the year.

The company said it already began building out its technology platform to provide functionalities like finding new targets, automating supply chain management and optimizing e-commerce growth investments.

“Unybrands had an incredibly strong first half of the year,” Kratz said. “We’ve been able to accelerate our business plan across all fronts, including acquisitions, technology and team building. Crayhill has significant e-commerce experience in general and a dedicated strategy to finance players in the Amazon ecosystem, and they have been a great partner.”

Unybrands’ major cash infusion follows a strong e-commerce trend of buying and consolidating multiple smaller third-party merchants that sell their goods via Amazon’s marketplace. Leading the pack is Thrasio, which raised nearly $2 billion in both debt and equity over the past three years.

This capital raise is in good company: This week, Elevate Brands brought in $250 million in funding, while a new company, Foundry, debuted after raising $100 million. Others amassing large rounds recently include Heyday’s $70 million from General Catalyst and Berlin’s The Razor Group raise of $400 million.

Kratz feels the real growth and penetration of e-commerce and direct-to-consumer is just starting to accelerate, which is creating an environment for several players to provide better ways to do business.

“And, the space has attracted a lot of capital, which is a big validation of the enormous upside,” he added.

 

News: An Echo Dot designed by Diane von Furstenberg? Yeah, sure, why not

Earlier this year, Amazon launched Build It, a fun little program that lets customers preorder concept devices. Think about it like Indiegogo or Kickstarter, where the company will only actually make the product if enough people buy-in via preorder. Obviously Amazon has a significantly larger ability to absorb a misstep than your average first-time hardware

Earlier this year, Amazon launched Build It, a fun little program that lets customers preorder concept devices. Think about it like Indiegogo or Kickstarter, where the company will only actually make the product if enough people buy-in via preorder. Obviously Amazon has a significantly larger ability to absorb a misstep than your average first-time hardware startup, but I digress.

This latest round isn’t particularly experimental as far as these things go. The company partnered with fashion mogul Diane von Furstenberg to create new coverings for its popular entry-level smart speaker. The Echo Dot x Diane von Furstenberg is being offered up in three varieties: Midnight Kiss, Ikat or Twigs. It’s not exactly thew new product entries we saw the first time out, which included a sticky note printer, smart scale and Alexa cuckoo clock.

Image Credits: Amazon

Each runs $59 — the price of the Echo Dot with clock and $10 more than the standard Dot. The product looks to otherwise be the same as the latest gen Echo Dot. The company says it will be donating to Vital Voices, a charity chosen by the designer — though it wouldn’t specify how much when we asked.

Preorders open now and close August 13. If the designs don’t hit their goal, customers won’t be charged. Once they’re live, “a select number of successful prints may be available at full price after the campaign closes, while supplies last,” according to Amazon.

News: Backed by $5M led by General Catalyst, Evvy launches a vaginal microbiome test to support women’s health research

Another US femtech startup has joined the race to build up data-sets to support research into and understanding of a range of health issues that can affect women. Evvy has today launched an at-home test kit for the vaginal microbiome. The user returns their swab to the startup for analysis — and gets detailed information

Another US femtech startup has joined the race to build up data-sets to support research into and understanding of a range of health issues that can affect women.

Evvy has today launched an at-home test kit for the vaginal microbiome. The user returns their swab to the startup for analysis — and gets detailed information and analysis of the microbes (fungi and bacteria) that are present in their vagina and may be associated with a variety of health concerns.

Users of the test also get personalized suggestions for things they could try (such as diet and lifestyle changes) to improve the balance of microbes — potentially helping with related heath issues they may be suffering from, like yeast infections or BV.

Variances in the microbes present in an individual’s vaginal microbiome are thought to have broad implications for women’s health — playing a role in relatively minor infections (like thrush) but Evvy also flags research linking imbalances in the vaginal microbiome to more serious issues like infertility or pre-term birth, or even linkages to the progression of cervical cancer.

Decoding the vaginal microbiome is thus seen as an opportunity to support a broad range of women’s health goals.

“We give users back a full understanding of everything that’s present. So here are all of the bacteria and fungi and importantly what is the relative amount of each of those bacteria,” explains CEO and co-founder Priyanka Jain, noting that users also get their test data in a downloadable format so they can take the information to their healthcare provider if they wish.

“There are certain bacteria that play really important roles in the vagina, either positive or negative, and understanding if that’s 90% of your vagina vs 5% makes a big difference… For every single microbe that we show to a woman we also fully explain what that microbe is, what the scientific understanding of it is today, how it might contribute to symptoms, how it might be behaving with other microbes that exist in your vagina — as well as if research has shown that it’s related to any health outcomes that you might care about.”

“We also give every woman a full personalized plan — that includes ways to help reduce any type of disruptive bacteria, ways to promote their protective bacteria and ways to overall maintain their vaginal health based on their personal life experiences,” she adds.

As with many such femtech startups, Evvy is targeting the women’s health data gap. This refers to how women can have a relatively poor experience of traditional healthcare, perhaps especially when seeking help or support with conditions related to female biology, because of historic under-representation of women in medical research — which means female health conditions tend to be less well researched and understood vs conditions affecting biological men.

Even relatively common conditions which can affect the vagina — such as a simple yeast infection — can be frustratingly difficult to connect to individual triggers. And while over-the-counter treatments do work, some women report recurrent infections — and may benefit from a better understanding of why the infections may be occurring in the first place.

The problem of less research into women’s health issues does also mean that femtech startups can have a lot of ground to cover to live up to enticing pitches of ‘demystifying’ the female body, as Evvy couches it. In its case, a key challenge is clearly analyzing the vaginal microbiome data it gets from users and turning it into useful recommendations for each person — without overpromising, given there may be relatively little research to back up possible links to wider health conditions.

Evvy says it tackles this challenge by signposting the level of research associated with each of the personalized suggestions it offers.

“I always say treat women like they’re smart,” says Jain. “What we actually do on each of our recommendations is we rate them. So they’re either rated as ‘novel’, ’emerging’ or ‘established’. And we show the women this is the research that exists on this type of treatment [and how relevant it might be to them personally — based on] if it was done on people that resemble you enough that you are actually interested in what the results are.

“Our goal is to highlight everything that’s out there. Because women are… looking for answers everywhere — and you see this kind of amazing crowdsourcing of knowledge, of people trying to figure out what might work for them — and our goal is to say, from a scientific perspective, this is everything that has been studied and we are actually just transparent about how well researched each of those things are.”

Jain says wider research-related goals include trying to identify biomarkers with suspected links to a swathe of serious female health issues — such as infertility, preterm birth, STI acquisition and cervical cancer progression.

Although it’s important to note that Evvy’s commercial offering comes with a disclaimer that it’s not providing medical advice — and is only selling a “wellness” test for now. This is because the service is not a regulated medical device. Hence Evvy specifies it’s only providing customers with “information” about their vaginal microbiome (although the co-founders told us they may consider applying for FDA clearance in the future).

The gap in knowledge around female health issues has led to a proliferation of ‘wellness’ claims and products targeted at women — some of which are, unfortunately, peddling what amounts to ‘snake oil’; i.e. selling products that lack rigorous scientific research to underpin a fuzzy range of ‘holistic benefits’ suggested by the associated marketing (crystal-healing yoni eggs, anyone?).

Being in the unregulated ‘wellness’ category therefore has risks for any femtech startup. But Evvy also sees an opportunity to cut through some of the noise and dubious claims by arming women with robust data on what’s going on in their bodies and connecting them with genuine scientific expertise that can help them interpret it.

Education is a key goal for the startup, per CMO Laine Bruzek.

“How can we bring the scientific community, care providers and women together in the same place to get their questions answered quickly and with the best scientific information… Education is just such an important goal for us because there’s not a lot of great information that exists on the Internet,” she says.

“Not just about your vaginal microbiome — which is sort of a new and emerging space — but just vaginal health in general. There’s so much misinformation, there’s so much snake oil that people are selling. So we want to make sure that we have, not just a chance to bring the women together, but that we give them access to people who are pushing the bounds of vaginal health research so that they can get the best information when they need it.”

Evvy’s approach — which includes bringing in OBGYNs and experts in gynecology & reproductive health as advisors (although the founders themselves have data science and product design backgrounds) — has attracted some top-tier investors: Today it’s announcing a $5 million seed round led by General Catalyst which will see the fund’s Margo Georgiadis (formerly the CEO of Ancestry.com) join the board.

Commenting in a statement, Georgiadis said: “Evvy is breaking boundaries to advance women’s health with more affordable and comprehensive testing starting with its vaginal microbiome metagenomics test. The team has bold plans to enable greater early detection, improved treatment, and enhanced therapeutics using new female-specific biomarkers.”

“There is a huge opportunity to build new datasets that will transform our understanding of these conditions in the female body, and I truly believe that Evvy’s unique platform combined with the development of new therapeutics will catalyze a new era in women’s health,” added Dr. Craig Cohen, professor of obstetrics, gynecology & reproductive sciences at UCSF and advisor to Evvy in another supporting statement.

Evvy is not the first startup to sell a home testing kit for the vaginal microbiome, targeting women who may be suffering from conditions related to microbial imbalances, or — well — just women who want to learn more about their own bodies.

Juno Bio, for example, launched an at-home test kit last year.

But Evvy is using a technique — called metagenomic sequencing — which the founders say is able to capture more data than other commercial tests, or the typical tests a woman is able to obtain via a doctor’s office (where scans may only look for a few specific pathogens). So the pitch is the approach provides a higher fidelity view of what’s going on inside a woman’s vagina.

“A lot of the work that we’ve done is specifically incorporating what’s called metagenomic sequencing into the analysis of the vaginal microbiome,” explains Jain. “When you go to the doctor’s office the type of test that they can run is what’s called a PCR test — essentially they take a sample and they look for a specific pathogen within that sample. So oftentimes when you go to the doctor you’ll get a PCR test that looks for one to three different individuals pathogens.

“Since then there have been a few iterations of improvements on that done by other companies. Some are not using what’s called 16-S sequencing — which is a form of amplicon sequencing — which is definitely a large step up from PCR but the downside is it’s only able to look at certain variable regions of the genome. And you actually have to pre-define what you’re looking for. So it’s much harder to do discovery and you’re not able to find all bacteria and fungi that are present. Because 16-S actually can’t detect fungi at all so you have to separately test for it — which means you can’t understand their relative relationships.

“So our test is really the first time anyone is using metagenomics at scale to better understand the vaginal microbiome; both for individual woman and the healthcare system as a whole… In the same way that 16-S was an improvement on PCR, metagenomics is just an improvement on 16-S; it allows us to understand everything that’s possibly present across all bacteria and fungi.”

Per Jain, the service is the only commercially available vaginal microbiome test that’s able to use metagenomics.

A key part of Evvy’s work as a startup is then the analysis of this higher dimension data it’s capturing — to map different microbes to potential health outcomes (based on its analysis of existing research) — and understand how to interpret individual findings and offer relevant and actionable information to each user.

“A lot of our work has been on the data analysis part,” confirms Jain. “So when you do metagenomics sequencing you get much, much higher fidelity data back — and we had to build out everything from, we co-developed an amazing bioinformatics pipeline that is able to analyze that type of data and understand which bacteria and fungi they are. And then actually mapped out for each of those bacteria and fungi how are they related to the vaginal microbiome? What type of symptoms might they cause, and also what type of health implications might they be related to.

“Lastly we’ve done a tonne of work with our science advisory board around putting together personalized recommendations that take into account — not only the microbial data that we get from the test — but also someone’s health history and their symptoms, and if what stage of menopause they’re in, or all of this other information so that we can actually make this information actionable for the women.”

Once data from paying users starts to flow the idea is also to support a range of Evvy’s own research initiatives and partnerships (on the latter, specific details are being kept under wraps for now) — all aimed at furthering knowledge of women’s health and supporting what they hope will be more products in future.

“There’s been so much research done showing that the vaginal microbiome is for example related to pre-term birth,” says Jain. “When you look at women who deliver early or pre-term, they tend to have very different vaginal microbiomes than women who don’t. But a lot of the sequencing that’s been done in that space has been using things like 16-S — and our goal is to bring a much higher level of fidelity. And so, more specifically, we can look at the strain level of bacteria — whereas 16-S and other forms of sequencing can only get you to the species level. And when we’re looking at something as complex as pre-term birth, cervical cancer progression and STI acquisition it’s not just what’s there — but it’s getting to the very, very high fidelity information of specifically what strains are there. So that we can actually start to discover what are the biomarkers that might be leading to differences between people who deliver pre-term and people who don’t.”

“The other value of metagenomic sequencing is it gives us functional profiling,” she adds. “Which helps us not only understand who’s there but also what they might be doing — and all of that information together is more likely able to help us better understand these complex conditions that research has shown is related but no-one’s been able to figure out exactly how.”

While the overarching goal is that data from users’ vaginal swab samples will support research into a range of women’s health issues, Evvy’s users are also paying for a commercial service to get their individual analysis — so what can they expect?

The at-home swab test kit is being priced at $129 for one test kit — which delivers them with a personalized analysis after two weeks.

Evvy is also offering a membership rate for users who want to be able to carry out multiple tests — to be able to track changes to their vaginal microbiome — and for those users tests will cost $99 each (with the user able to take a test every three months).

As they launch the service across the US’ 20 states, Evvy’s co-founders say they’re hoping “thousands” of women will sign up to quantify their vaginal microbiome and support the wider goal of backing research into female health.

“Why is it that looking at the bacteria in the vaginal microbiome is 94% accurate in predicting whether or not a cycle of IVF works?” asks Jain. “Why is it that women who give birth pre-term have a differing vaginal microbiome than people who don’t? Or the whole cervical cancer progression, STI acquisition, pelvic inflammatory disease.

“There’s so many conditions that seem to be — either the vaginal microbiome is an interesting diagnostic opportunity [or] there’s even some very early research showing that women who have PCOS [polycystic ovary syndrome] or endometriosis have varying markers in their vaginal microbiome from women who don’t have those conditions — so everything from helping to detect disease to helping diagnose things, to helping predict risk for so many of these conditions that often we don’t catch for too long.

“Also thinking about treatment as well — something like IVF success or pre-term birth — if we’re able to identify risk earlier can we actually come up with interventions that are personalized to that individual person so that we’re able to avoid that negative outcome in the long term?”

News: Accounting firm Proper banks $9M Series A to automate property management

Proper’s tech-enabled service is designed to execute those specific real estate accounting-related processes and apply automation to those that are repetitive.

Proper, an automated accounting and bookkeeping service for property managers, announced Wednesday it raised $9 million in Series A funding in a round led by QED.

Existing investors MetaProp, Expa and Bling Capital also participated in the round, which gives the San Francisco-based proptech company a total amount raised of $13.8 million. The company brought in $4.8 million of seed funding last August.

CEO Mark Rojas, whose background is in product development, founded Proper in 2017 after spending a year-and-a-half learning the ropes in a property manager’s office. He was looking at the maintenance side of the business when he realized how much the accounting part of the business “was almost a dumpster fire.”

“I knew the space was rife with problems to solve and how much accounting was a bigger part of the operations that needed to be executed each month and tied everything else together,” Rojas told TechCrunch. “Property managers don’t often come from an accounting background — usually they have a real estate license, so that lack of expertise can put them in a position where they can’t scale their portfolio, or if they try to, things break.”

Proper dashboard

Proper’s tech-enabled service is designed to execute those specific real estate accounting-related processes and apply automation to those that are repetitive. The company said property managers with 1,000 doors can see 63% higher profit margins and spend 45% less time per year on accounting.

Rojas says accounting automation in real estate has been neglected with few startups stepping up to solve it like Proper is. He considers proptech still in its infancy with much of the innovation coming from home buying, selling and maintenance rather than accounting. It also doesn’t have a “champion company” yet leading the way.

Rather than sit and wait for a company like that to emerge, Proper pivoted to address accounting in early 2020 and saw “growth explode” over the past year. Rojas said he saw the opportunity to not only scale aggressively on the revenue side, but also build a lasting business that was sustainable.

“Real estate is the most valuable asset class, and what I am looking at is how big this industry could be,” he added. “That idea of there being no competitors enables us to be aggressive, be the go-to brand and scale with that high demand.”

Now armed with the Series A funding, the company intends to focus on operations, product development, build a new customer-facing platform and add to its headcount across business functions. Rojas said it went from zero to $2.3 million in annual recurring revenue in 2020 over 12 months. Proper also grew from 15 to 120 employees in 2021 and expects to end the year with about 200.

Proper paused its sales and marketing in order to scale, and Rojas is ready to hit the “play” button again. He is also happy to work with QED, which is in alignment with the company’s vision.

As part of the investment, QED Partner Matt Risley is joining Proper’s board of directors. Risley’s background is in fintech, and he was previously chief financial officer of e-commerce payment platform Klarna.

Risley told TechCrunch he initially met Rojas during Proper’s seed round and was tracking the company’s growth as its initial ideas came to fruition. He considers Proper among the success stories coming out of the real estate industry that also include RealPage, Yardi and AvidXchange.

He spent time with small business owners using Proper and said its product has a good market fit.

“What we see consistently is they are passionate about the core business of delivering value to clients and have a true expertise,” Risley said. “We also see the relief that Proper gives property owners and managers from doing bookkeeping. Anything that enables small businesses to spend more time on what they like about their businesses, they will seize upon it.”

News: Cardless raises $40M to help more brands launch custom credit cards

Many consumers use their credit cards to rack up rewards to be used toward travel.  But what if you’re a sports fan, and using your credit card could lead to a virtual conversation with a player on your favorite team? Thanks to San Francisco-based Cardless, that opportunity may be less of a stretch than you

Many consumers use their credit cards to rack up rewards to be used toward travel. 

But what if you’re a sports fan, and using your credit card could lead to a virtual conversation with a player on your favorite team? Thanks to San Francisco-based Cardless, that opportunity may be less of a stretch than you think.

The startup, which is out to give brands and tech companies a way to launch custom co-branded credit cards, has raised $40 million in a Series B funding round led by Activant Capital. Other investors include the owners and management of the Phoenix Suns and Boston Celtics and existing backers such as Accomplice and Pear VC. The financing brings the two-year-old company’s total raised since its 2019 inception to $50 million. Accomplice and Greycroft co-led its $7 million Series A last June.

Put simply, Cardless aims to help consumer brands launch credit cards “very quickly and easily” by handling the program creation, card underwriting, lending, issuance and customer service for brands. This quarter, the startup launched three digital programs — with the NBA’s Cleveland Cavaliers, British soccer team Manchester United and the Miami Marlins, a Major League Baseball team based in Florida.

The company is out to modernize the whole concept of co-branded credit card programs. Of the 200 that exist in the U.S. today, only one is from a company that is less than two decades old, according to Cardless’ co-founder and president Michael Spelfogel.

“There are close to 200 brands with traditional cards but they are often old legacy businesses such as Costco and Sam’s,” he told TechCrunch. “We want to connect folks with brands they love most, and elevate fans’ relationships with those brands.”

Cardless’ customized rewards programs are catered to very specific demographics “that actually truly appreciate the value that that brand is providing,” Spelfogel added. 

“Our first programs helped fans get things like players’ autographs and experiences that money can’t buy,” he said.  The company plans to announce “several” more programs this year and says that it’s able to do so “in a matter of weeks” compared to traditional issuers, which can take months or more than a year to issue similar programs.

Those reward programs include digital apps and numberless, virtual cards.

Image Credits: Cardless; left to right: Michael Spelfogel, co-founder and president; Scott Kazmierowicz, co-founder and CEO.

Cardless is attempting to shake up a massive market. Consumer credit cards yielded an estimated $150 billion in revenue for traditional banks in 2019, but startups only captured a small fraction of the value. Cardless aims to help brands and tech companies snag a larger piece of the huge market by working with a bank issuer to provide simple card issuance and bespoke digital credit programs for customers of those brands. 

“This funding round is the result, not the start, of the long-awaited transition to digital-focused card issuing,” said Scott Kazmierowicz, Cardless CEO, in a written statement.

Cardless is not restricted to working with sports brands.

“We’re committed to supporting the super users of today’s influential brands across a variety of verticals,” said Spelfogel.  “Cardless puts the customer first by eliminating fees and providing responsible products with transparent rates.”

Andrew Steele of Activant was impressed with Cardless’ ability to power and execute “unique” credit card programs “for prestigious and innovative brands” just two years after launch.

“Most brands have been restricted from launching innovative credit card programs due to the limitations of incumbent providers,” he added. “It became clear that Cardless can transform and expand one of the largest markets in digital payments, and that we’re only in the early innings of what’s possible.”

News: Castor, a clinical trial process company, raises $45M to create more human-centered research

Castor is on a mission to make every clinical trial faster and patient-focused.

Castor is on a mission to make every clinical trial faster and patient-focused. The clinical trial software company announced Wednesday it raised $45 million in Series B funding to continue modernizing the process as the industry shifts to decentralized clinical trials.

Eight Roads Ventures and F-Prime Capital co-led the round and were joined by existing investors Two Sigma Ventures and Inkef Capital. The Series B brings Castor’s total funding to $65 million since it was founded in 2012.

Clinical trials are “stuck in a rut,” Derk Arts, M.D., co-founder and CEO of Castor told TechCrunch. Currently, they take a long time to set up and don’t involve continuous data monitoring.

They also require patient participants to travel to a research site that could be hours away from their home. As a result, slow enrollment accounts for nearly 40% of terminated trials, and an inconvenient process inhibits researchers from attracting a diverse group of patients, he said.

Castor, which is remote first, but has offices in New York and Amsterdam, is one of several companies bringing technology to a process that is largely still done on paper. Its software provides a self-service version enabling researchers to design studies and integrate in-person and remote patient data from any source in real time. Patients interested in joining trials can enroll and share their data via a mobile app.

The global pandemic pushed innovation forward at an accelerated pace, and Castor responded in turn, making its software free for COVID-19 research.

It then saw an influx of users and new customers like the World Health Organization. WHO used Castor for its “Solidarity Trial,” which was identifying how existing medications might improve outcomes compared to standard of care alone. The study included over 10,000 patients across 553 sites in 30 countries, Arts said.

Michael Treskow, partner at Eight Roads Ventures, called Arts “a straight shooter” who knows the industry’s pain points and is bringing the clinical trials industry into the modern age.

“Technology is making a real impact,” Treskow added. “Castor is so driven to dramatically improve clinical trials, and with its work with WHO has a significant use case of how this is important. As we have seen with the rapid development of COVID vaccines, this is what the industry is able to do.”

The clinical trial market is valued at around $16 billion and is growing rapidly at 16% per year, Arts says. A market that big is also attracting companies that want to innovate it. He cites Science 37 and Medable, which recently pulled in a $78 million extension to its $91 million Series C.

The Series B enables Castor to have teams in place to respond to the fast-growing industry. Last year, the company nearly tripled in revenue growth and is on course to do the same in 2021. Castor has 150 employees currently and expects to hit 200 by the end of the year.

Arts, who has a background in software programming and in medicine, said the new funds will go toward continued product development, interoperability and collecting real-world evidence from decentralized trials. The company is focusing on the United States for now, but sees potential in moving into the Asia region later this year.

“Patients deserve to have an amazing service, and it is up to us to deliver on that,” he said.

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