Monthly Archives: July 2021

News: Craft Aerospace’s novel take on VTOL aircraft could upend local air travel

Air taxis may still be pie in the sky, but there’s more than one way to move the air travel industry forward. Craft Aerospace aims to do so with a totally new vertical-takeoff and landing aircraft that it believes could make city-to-city hops simpler, faster, cheaper, and greener. The aircraft — which to be clear

Air taxis may still be pie in the sky, but there’s more than one way to move the air travel industry forward. Craft Aerospace aims to do so with a totally new vertical-takeoff and landing aircraft that it believes could make city-to-city hops simpler, faster, cheaper, and greener.

The aircraft — which to be clear is still in small scale prototype form — uses a new VTOL technique that redirects the flow of air from its engines using flaps rather than turning them (like the well-known, infamously unstable Osprey), making for a much more robust and controllable experience.

Co-founder James Dorris believes that this fast, stable VTOL craft is the key that unlocks a new kind of local air travel, eschewing major airports for minor ones or even heliports. Anyone that’s ever had to take a flight that lasts under an hour knows that three times longer is spent in security lines, gate walks, and of course in getting to and from these necessarily distant major airports.

“We’re not talking about flying wealthy people to the mall — there are major inefficiencies in major corridors,” Dorris told TechCrunch. “The key to shortening that delay is picking people up in cities, and dropping them off in cities. So for these short hops we need to combine the advantages of fixed wing aircraft and VTOL.”

The technique they arrived at is what’s called a “blown wing” or “deflected slipstream.” It looks a bit like something you’d see on the cover of a vintage science fiction rag, but the unusual geometry and numerous rotors serve a purpose.

The basic principle of a blown wing has been explored before now but never done on a production aircraft. You simply place a set of (obviously extremely robust) flaps directly behind the thrust, where they can be tilted down and into the exhaust stream, directing the airflow downwards. This causes the craft to rise upwards and forwards, and as it gets enough altitude it can retract the flaps, letting the engines operate normally and driving the craft forwards to produce ordinary lift.

During takeoff, thrust is redirected downwards by extending flaps.

The many rotors are there for redundancy and so that the thrust can be minutely adjusted on each of the four “half-wiings.” The shape, called a box wing, is also something that has been tried in limited fashion (there are drones with it, for example) but ultimately never proved a valid alternative to a traditional swept wing. But Dorris and Craft believe it has powerful advantages in this case, allowing for a much more stable, adjustable takeoff and landing than the two-engine Osprey. (Or indeed many proposed or prototype tilt-rotor aircraft out there.)

During flight, the flaps retract and thrust pushes the plane forward as normal.

“Our tech is a combination of both existing and novel tech,” he said. “The box wing has been built and flown; the high flap aircraft has been built and flown. They’ve never been synthesized like this in a VTOL aircraft.”

Again, to be clear, the company has demonstrated a limited scale model that shows the principle is sound — they’re not claiming there’s a full-scale craft ready to go. That’s years down the line, but willing partners will help them move forward.

The fifth generation prototype (perhaps the size of a coffee table) hovers using to the blown wing principle, and the sixth, due to fly in a few months, will introduce the transitioning flaps. (I was shown a video of the prototype doing tethered indoor hovering but the company is not releasing this test footage publicly.)

The design of the final craft is still in flux — it’s not known exactly how many rotors it will have, for instance — but the basic size, shape, and capabilities are already penned in.

It’ll carry 9 passengers and a pilot, and fly around 35,000 feet or so at approximately 300 knots, or 345 mph. That’s slower than a normal passenger jet, but whatever time you lose in the air ought to be more than regained by skipping the airport. The range of the cleaner hybrid gas-electric engines should be around 1,000 miles, which gives a good amount of flexibility and safety margins. It also covers 45 of the top 50 busiest routes in the world, things like LA to SF, Seoul to Jeju Island, and Tokyo to Osaka.

It probably wouldn’t be flying at this altitude.

Notably, however, Dorris wants to make it clear that the idea is not “LAX to SFO” but “Hollywood to North Beach.” VTOL aircraft aren’t just for show: regulations permitting, they can touch down in a much smaller location, though exactly what kind of landing pad and micro-airport is envisioned is, like the aircraft itself, still being worked out.

The team, which has just worked its way through Y Combinator’s summer 2021 cohort, is experienced in building sophisticated transport: Dorris was a primary on Virgin Hyperloop’s propulsion system, and his co-founder Axel Radermacher helped build Karma Automotive’s drivetrain. It may not have escaped you that neither of those companies makes aircraft, but Dorris thinks of that as a feature, not a bug.

“You’ve seen what’s come out of traditional aerospace over the last 10, 20 years,” he said, letting the obvious implication speak for itself that the likes of Boeing and Airbus aren’t exactly reinventing the wheel. And companies that partnered with automotive giants hit walls because there’s a mismatch between the scales — a couple hundred aircraft is very different from half a million Chevy sedans.

So Craft is relying on partners who have looked to shake things up in aerospace. Among its advisors are Bryan Berthy (once Director of Engineering at Lockheed Martin), Nikhil Goel (one of Uber Elevate’s co-founders), and Brogan BamBrogan (early SpaceX employee and Hyperloop faithful).

The company also just announced a letter of intent from JSX, a small airline serving low-friction flights on local routes, to purchase 200 aircraft and the option for 400 more if wanted. Dorris believes that with their position and growth curve they could make a perfect early partner when the aircraft is ready, probably around 2025 with flights beginning in 2026.

It’s a risky, weird play with a huge potential payoff, and Craft thinks that their approach, as unusual as it seems today, is just plainly a better way to fly a couple hundred miles. Positive noises from the industry, and from investors, seem to back that feeling up. The company has received early stage investment (of an unspecified total) from Giant Ventures, Countdown Capital, Soma Capital, and its advisor Nikhil Goel.

“We’ve demonstrated it, and we’re getting an enormous amount of traction from aerospace people who have seen hundreds of concepts,” said Dorris. “We’re a team of only 7, about to be 9 people… Frankly, we’re extremely pleased with the level of interest we’re getting.”

News: PayPal’s new ‘super app’ is ready to launch, will also include messaging

PayPal’s plan to morph itself into a “super app” have been given a go for launch. According to PayPal CEO Dan Schulman, speaking to investors during this week’s second-quarter earnings, the initial version of PayPal’s new consumer digital wallet app is now “code complete” and the company is preparing to slowly ramp up. Over the

PayPal’s plan to morph itself into a “super app” have been given a go for launch. According to PayPal CEO Dan Schulman, speaking to investors during this week’s second-quarter earnings, the initial version of PayPal’s new consumer digital wallet app is now “code complete” and the company is preparing to slowly ramp up. Over the next several months, PayPal expects to be fully ramped in the U.S., with new payment services, financial services, commerce and shopping tools arriving every quarter.

The company has spoken for some time about its “super app” ambitions — a shift in product direction that would make PayPal a U.S.-based version of something like China’s WeChat or Alipay or India’s Paytm. Similar to these apps, PayPal aims to offer a host of consumer services under one roof, beyond just mobile payments.

In previous quarters, PayPal said these new features may include things like enhanced direct deposit, check cashing, budgeting tools, bill pay, crypto support, subscription management, and buy now/pay later functionality. It also said it would integrate commerce, thanks to the mobile shopping tools acquired by way of its $4 billion Honey acquisition from 2019.

So far, PayPal has continued to run Honey as a standalone application, website and browser extension, but the super app could incorporate more of its deal-finding functions, price tracking features, and other benefits.

On Wednesday’s earnings call, Schulman revealed the super app would include a few other features as well, including high-yield savings, early access to direct deposit funds, and messaging functionality outside of peer-to-peer payments — meaning you could chat with family and friends directly through the app’s user interface.

PayPal hadn’t yet announced its plans to include a messaging component until now, but the feature makes sense in terms of how people often combine chat and peer-to-peer payments today. For example, someone may want to make a personal request for the funds instead of just sending an automated request through an app. Or, after receiving payment, a user may want to respond with a “thank you,” or other acknowledgement. Currently, these conversations take place outside of the payment app itself on platforms like iMessage. Now, that could change.

“We think that’s going to drive a lot of engagement on the platform,” said Schulman. “You don’t have to leave the platform to message back and forth.”

With the increased user engagement, the company expects to see a related bump in average revenue per active account.

Schulman also hinted at “additional crypto capabilities,” which were not detailed. However, PayPal earlier this month increased the crypto purchase limit from $20,000 to $100,000 for eligible PayPal customers in the U.S., with no annual purchase limit. The company also this year made it possible for consumers to check out at millions of online businesses using their cryptocurrencies, by first converting the crypto to cash then settling with the merchant in U.S. dollars.

Though the app’s code is now complete, Schulman said the plan is to continue to iterate on the product experience, noting that the initial version will not be “the be-all and end-all.” Instead, the app will see steady releases and new functionality on a quarterly basis.

However, he did say that early on, the new features would include the high-yield savings, improved bill pay with a better user experience and more billers and aggregators, as well as early access to direct deposit, budgeting tools, and the new two-way messaging feature.

To integrate all the new features into the super app, PayPal will undergo a major overhaul of its user interface.

“Obviously, the [user experience] is being redesigned,” Schulman noted. “We’ve got rewards and shopping. We’ve got a whole giving hub around crowdsourcing, giving to charities. And then, obviously, Buy Now, Pay Later will be fully integrated into it…The last time I counted, it was like 25 new capabilities that we’re going to put into the super app,” he said.

The digital wallet app will also be personalized to the end user, so no two apps are the same. This will be done using both A.I. and machine learning capabilities to  “enhance each customer’s experiences and opportunities,” said Schulman.

PayPal delivered an earnings beat in the second quarter with $6.24 billion in revenue, versus the $6.27 billion Wall St. expected, and earnings per share of $1.15 versus the $1.12 expected. Total payment volume from merchant customers also jumped 40% to $311 billion, while analysts had projected $295.2 billion. But the company’s stock slipped due to a lowered outlook for Q3, impacted by eBay’s transition to its own managed payments service.

In addition, PayPal gained 11.4 million net new active accounts in the quarter, to reach 403 million total active accounts.

News: Nikola founder Trevor Milton indicted on three counts of fraud

Trevor Milton, the fast-talking showman founder of Nikola and the electric truck startup’s former CEO and executive chairman, has been charged with three counts of fraud. Milton “engaged in a fraudulent scheme to deceive retail investors” for his own personal benefit, according to the federal indictment unsealed by U.S. Attorney’s Office in Manhattan on Thursday.

Trevor Milton, the fast-talking showman founder of Nikola and the electric truck startup’s former CEO and executive chairman, has been charged with three counts of fraud.

Milton “engaged in a fraudulent scheme to deceive retail investors” for his own personal benefit, according to the federal indictment unsealed by U.S. Attorney’s Office in Manhattan on Thursday. Milton was charged with two counts of securities fraud and wire fraud.

Specifically, prosecutors detailed in the complaint how Milton used social media and frequent appearances on television in a PR blitz that flooded “the market with false and misleading information about Nikola” before the company even produced a product.

The charges reflect a fast and furious run for Nikola and Milton, who founded the company in 2015. Milton resigned in September 2020 after Hindenburg Research, a short-seller, published a report alleging Nikola is mislead investors.

Nikola issued a statement that distances itself from Milton, who is still its largest shareholder.

Trevor Milton resigned from Nikola on September 20, 2020 and has not been involved in the company’s operations or communications since that time. Today’s government actions are against Mr. Milton individually, and not against the company.  Nikola has cooperated with the government throughout the course of its inquiry. We remain committed to our previously announced milestones and timelines and are focused on delivering Nikola Tre battery-electric trucks later this year from the company’s manufacturing facilities.

 

News: Talkiatry lands $20M Series A to go all in on in-network psychiatric care

Talkiatry announced today that it has raised a $20 million Series A to scale a strategy simple in theory yet potentially challenging in execution: bring psychiatry services in-network with insurance providers. The round, led by Left Lane Capital with participation from the founder and former CEO of CityMD, Dr. Richard Park, is an extension of

Talkiatry announced today that it has raised a $20 million Series A to scale a strategy simple in theory yet potentially challenging in execution: bring psychiatry services in-network with insurance providers. The round, led by Left Lane Capital with participation from the founder and former CEO of CityMD, Dr. Richard Park, is an extension of Talkiatry’s previously-secured $5 million financing. That check was led by Sikwoo Capital Partners with participation from Relevance Ventures and Dr. Park.

Co-founded by Robert Krayn and Dr. Georgia Gaveras, Talkiatry is a digital health startup that helps consumers access in-network appointments with psychiatrists, for therapy and medicine management. The company employs an on-going care model in which it takes a consumer in through a virtual survey, matches them with a psychiatrist based on their needs, and then follows the consumer through the care process from diagnosing symptoms to actual prescription of medicine.

The startup’s true innovation lies in its plan to make psychiatric services covered by insurance providers for consumers. Many plans today don’t cover mental health services beyond a certain point – and at the same time, many high quality psychiatrists don’t participate in private insurance plans because of minimal reimbursement and paperwork nightmares. As a result, the psychiatrists that are in-network may be consumed with patients, and the ones at private practices could have a price of up to $300 per session.

“There’s many people who have identified the problem that [psychiatrists are not accessible],” said Krayn. “What the issue comes to next is are they really, really solving the problem, or are they working around it?”

Krayn explained how startups have turned to hiring therapists and nurse practitioners as replacements for psychiatrists, which he thinks decreases the clinical quality of care (the difference between a therapist and psychiatrist is that the latter can prescribe medication). He said his competitors have also focused more on lessening the out of pocket costs instead of avoiding them altogether.

“While that does increase access to mental health, we think that that necessarily doesn’t give the most amount of access to solve a real problem, which is that psychiatrists are not accessible,” he said.

Talkiatry has partnered with a number of insurance providers including United Healthcare, Aetna, BlueCross BlueShield, and more. While companies like Cerebral, Headway and Uplit have similarly gone in-network – the co-founder argues that it has the least restrictive relationship with providers, meaning that consumers won’t have to pay out of pocket for anything outside of the typical copay.

“Sure, some platforms are offered as an added benefit in addition to a health insurance plan but may have additional restrictions, I.e. a patient may get access to the platform but still pay a monthly fee to get service, others may only be allowed a certain number of visits and some may only be available if your employer decides to offer it in addition,” he said. “Talkiatry has none of these restrictions and can be used like any other in-network doctor you typically go to.”

Stability among its supply of psychiatrists is key here. Talkiatry has hired psychiatrists as W-2 employees instead of contractors. Now, by not using a traditional contractor model, Talkiatry will have more stability in its services but could struggle with scale. The startup will rapidly and consistently hire psychiatrists with varying backgrounds to serve consumers. Plus, in order to expand into new markets, Talkiatry has to go through the arduous legal process of local licensing requirements, instead of just going to a white-label solution that helps staff similar companies while offloading individual practitioner certification.

While the Ginger, a well-capitalized growth stage company, and Lyra Health, a digital health unicorn last valued at $4.6 billion have recently made waves in the behavioral health space, Talkiatry is obviously confident that it can break into the sector, which continues to attract record amounts of venture capital from investors.

Its competition is paying attention. For example, Ginger has made more efforts to bring in-network mental health solutions to users, recently partnering with AmeriHealth Caritas District of Columbia and Cigna.

“Providing psychiatry in-network is one avenue to ensure people receive care, but it still does not solve the supply-demand imbalance in the mental healthcare space,” said Russell Glass, Ginger CEO and co-founder. He explained how Ginger’s product being on-demand and virtual helps it address the growing shortage of mental health providers, which will be a hurdle that Talkiatry itself will need to address, too.

As of now, Talkiatry has 44 clinicians on its platform, with 33 as psychiatrists and the remaining as nurse practitioners. It has done 30,000 visits since launch.

News: Draft.dev CEO Karl Hughes on the importance of using experts in developer marketing

Developer marketing came up in our conversation with strategic marketing firm MKT1, so we called on content marketing production company Draft.dev’s CEO Karl Hughes to learn more.

Developers can be a tough crowd. They typically hate being marketed to and are often short on time, which sets a particularly high bar for any content marketing aimed at them.

Coming up with relevant content that developers find interesting takes specific know-how, and this is where Draft.dev comes in. Its Chicago-based founder and CEO Karl Hughes describes the firm as “a superniche content marketing production company, producing technical content for companies that want to reach software engineers.”

Hughes and his agency were recommended multiple times in our growth marketer survey, which we launched to surface experts that startups can work with. (If you have your own recommendation, please fill out the survey!) One of the survey respondents noted that developers are underrated as a target audience: It may be niche, but it is a large one. More importantly, they are an audience a growing number of startups need to reach.

“If you are going to have subject matter experts write, you also need to have good editors to work with them.”

Developer marketing came up in our conversation with strategic marketing firm MKT1, so we called on Hughes to learn more. Our discussion covered a lot of ground, from what he has learned and his ambitions to Draft.dev’s process.

Editor’s note: The interview below has been edited for length and clarity:

What kind of clients does Draft.dev work with?

Karl Hughes: Almost all of our clients are developer tools companies. Mostly Series A- and Series B-funded, so they have got some funding and some knowledge that content marketing works for their audience. What they are trying to do with us is scale production and make sure that what they are writing is going to resonate with developers.

What inspired you to create Draft.dev?

I’ve been a software developer, and then most recently was a CTO at a startup in Chicago, so I knew that there were lots of companies trying to reach developers [ … ] and that a lot of them were doing a poor job of it. So last year I wanted to combine my tech knowledge with writing knowledge, and that’s where Draft.dev came from — and it’s been awesome!

We get to work both with technical and non-technical marketing and developer relations people to help them get more content out. And even though it’s marketing content, it’s super focused on education, because developer marketing is a bit tricky. Developers can be a bit skeptical of marketing, so you have to be nuanced in your approach. You have to be genuinely helpful, so we really try to focus on helpful content that is also a net positive for the client.

What are some mistakes that you see companies making when creating content for developers?

There are a couple of big challenges that Draft.dev is specifically built to solve: Relying too much on your own team to create content when they are busy and have other priorities, and thinking that you can just get your general copywriting agency to cover developer topics. It usually doesn’t work well.

Many companies start off getting their engineers to write content and make the mistake of thinking this will work forever. Let’s say you’re a continuous integration tool and you want to write content that shows developers how your tool works and that it’s a good option. Marketing teams will go to developers and say: “Hey, could you guys write a blog post?” And they’ll usually get a few blog posts here and there, but it’s really hard to build consistent content when these engineers are building the product and have production deadlines to hit.

When you look at companies that have done developer marketing really successfully, like Okta and DigitalOcean, you see that they have dedicated teams to produce this content. There’s a reason for that: It’s almost impossible to get your engineers to write everything that you need to produce high-quality and consistent content over time.

The other big mistake that I see companies making is thinking that a general marketing writer or SEO copywriter can write great content for developers. That is super rare. I mean, I’ve probably met two or three who can do a decent job of making it look like they know enough to speak with some authority. In general, you either want somebody — either at your company or otherwise — who knows the tool.

So for example, if I ask a general SEO copywriter, “Could you write about how to write a SQL query that does X, Y and Z?”, maybe they can hack some other articles together and come up with something, but it’s certainly not going to have the authority that a real software developer has.

This is true in any area where you have to rely on subject matter experts to help you with marketing content, but because my background is in development, I knew that this was a huge problem for companies.

How does Draft.dev address that?

We are definitely not right for every company. But for companies that are looking to scale-up content production and have technical authority behind those pieces, that’s where we come in. Typically, these are companies that know they want to do developer content, but are stretched too thin on their engineering team or they have tried freelancers and have a really hard time managing them and keeping quality consistent. So they come to us to do that.

We solve that problem with a huge pool of software developers who write for us on the side. Right now we have about 50 or 60 active monthly writers who are all software developers; they work full-time jobs and do this at night and on weekends. We bring people who are actually in the field, doing these things every day. They bring that technical expertise to the articles that we create for clients.

The mutually beneficial aspect here is that while we obviously pay these writers, they also get a byline out on the client’s site. We don’t do a lot of ghostwriting, which is a little unique, but is really good for our style of content because you want to show subject matter expertise. It’s preferable when you don’t have your head of marketing listed as the author of every piece of developer content. It’s nice to have a byline by a real software developer.

All of this goes back to what your content strategy is and who you want to reach. This is not blanket advice for everybody, but for companies trying to reach developers who are writing code every day, I think it’s super helpful to have some technical authority from people actually doing this.

How do you make sure your writers have subject matter expertise?

We have a writer vetting and selection process. Once we have vetted the writers who have applied, we also look for the best match for each article. We are looking through their skills and past experience to see who’d be the best fit.

We also recruit specific writers to write about niche topics. Sometimes that means doing cold outreach; sometimes it means going through our networks and figuring out who we know who’s written about Rust before. Things like that can be really tricky and time-consuming for a marketing team to do, but because we are doing this full time for lots of clients, we can spread that work around. It makes a lot of sense, and our clients like that we do this for them.

How to you balance your writers’ technical expertise versus writing skills?

That is tough! But there are some best practices in this field. If you are going to have subject matter experts write, you also need to have good editors to work with them.

There are two sides to how we get high-quality content from software engineers who may be average writers when they start, and are often ESL speakers. The upfront part is that we plan content pretty thoroughly. We go back and forth with the content to make sure we know what we are producing, and we also have technical content planners who make sure that each article has a story, an outline and lot of structure before we give it to a writer.

The writer fills in the technical details and personal experience, and then every piece will go through three rounds of edits to get it up to our standards: a technical review; a developmental edit for things like structure and flow, and a copy edit.

How do you split these tasks?

We’ve refined this process a lot since starting this [in May 2020]. Initially, it was just me and my managing editor Chris [Wolfgang] — she had a lot of experience in editing, so she could do full-stack editing, and I was focused on writing, picking writers, reviewing, etc. That’s how we divided things in the early days, but as we grew, we realized that we wouldn’t find an army of Chrises and Karls.

We had to figure out how to split these jobs into specialities where people can do their best work, and that’s how we managed to scale and keep quality high while growing at the pace we have. We now have five full-time people and we work with over 35 startups of various sizes, so we are still a small business, but it has been growing very quickly.

How do you get new clients?

Our biggest source of new business has been referrals. Clients who work with us love what we do and refer us to other people. We have also ended up working with companies going through accelerator programs like Y Combinator, so when new YC companies ask who does developer content, they hear about us. Besides us there’s probably just a couple of other companies that specialize in this. It’s a very small field so we get mentioned a lot.


Have you worked with a talented individual or agency who helped you find and keep more users?

Respond to our survey and help other startups find top growth marketers they can work with!


Growth has been so organic at the moment that I haven’t pursued a lot of active outreach strategies, but we are starting to get better at boosting this [organic growth]. One of the first hires I made this year was an account manager who’s helped with maintaining relationships with existing clients and getting things like testimonials, case studies, etc. Another thing is that when people see our content, they ask the company who did it, because companies that are selling developers tools really need a way to produce this kind of content, and there aren’t many providers.

How do you complement your clients’ own content production efforts?

Our two sweet spots are bigger companies that are looking to augment their in-house content team, because they have a hard time keeping developer content going, and really small teams that are building a tool specifically for software developers and need to get going with content production or ramp it up.

A lot of our clients will have something like a community writer program in addition to what we provide. For instance, we work with Strapi, which is an open-source tool that has a big community with community writers writing about how they use Strapi.

But then they use us to augment that content, because they want to be able to set some topics themselves. A lot of times, community contributions are good for whatever your community happens to be working on, but you can’t necessarily ask your community to write about X or Y.

The other challenge here is that with any developer-focused community writing program, you are going to need to spend a lot on editing. A lot of companies underestimate the work it is going to take. That’s where we come in: Instead of hiring all these different people you need and trying to build your own process, you can slot Draft.dev in there for a while. If some day you want to go hire your own team and replace us, that’s great — we’d love you to outgrow us. But ideally, we’d like to stick around and always be part of your developer content efforts.

Do you also do anything related to content distribution, such as writing the tweets that go with the articles?

We just started doing that; it’s our first big add-on service, where for each piece of content we’ll create social media collateral, like a couple of tweets, LinkedIn posts and Reddit submissions with the subreddits they would be most appropriate for. Then the client just has someone on their team copy-paste and schedule it with whatever system they want.

We also send a full promotional checklist they can use to promote the content, because one of the challenges I see with some of the smaller companies we work with is that they sometimes get lost when it comes to getting the content we produce in front of people. If you are not a developer, it’s hard to come up with copy about a technical piece. So by offering that collateral, we’re making it a bit easier. It’s been our first foray into this. We could expand into other things in the future, but that would probably be next year.

News: Swarm debuts $499 Evaluation Kit for consumers and tinkerers

Satellite connectivity company Swarm has come out with a new product that will give anyone the ability to create a messaging or Internet of Things (IoT) device, whether that be a hiker looking to stay connected off-the-grid or a hobbyist wanting to track the weather. The Swarm Evaluation Kit is an all-in-one product that includes

Satellite connectivity company Swarm has come out with a new product that will give anyone the ability to create a messaging or Internet of Things (IoT) device, whether that be a hiker looking to stay connected off-the-grid or a hobbyist wanting to track the weather.

The Swarm Evaluation Kit is an all-in-one product that includes a Swarm Tile, the company’s flagship modem device, a VHF antenna, a small solar panel, a tripod, a Feather S2 development board and an OLED from Adafruit. The entire kit comes in at less than six pounds and costs $499. The package may sound intimidatingly technical, but Swarm CEO Sara Spangelo explained to TechCrunch that it was designed to be user-friendly, from the most novice consumer all the way through to more advanced users.

It “was super intentional to call it an Evaluation kit because it’s not a finished product,” Spangelo explained. “It serves two different kinds of groups. The first group is people that want to be able to do messaging anywhere that they are on the planet for a really low cost […] The second group of people will be the tinkerers and the hobbyists and educational folks.”

Swarm CEO and co-founder Sara Spangelo Image Credits: Swarm

This is the second consumer product that Swarm has on offer, after it went commercially live with its flagship Swarm Tile earlier this year. The Swarm Tile is a key component of the company’s ecosystem, which is comprised of a few different components: the Tile, a kind of modem that can be embedded in different things and what the customer interfaces with; the satellite network; and a ground station network, which is how the company downlinks data. The Tile is designed for maximum compatibility, so Swarm serves customers across sectors including shipping, logistics, and agriculture.

“One of the cool things about Swarm is that we’re infrastructure,” she said. “We’re like cellphone towers, so anyone can use us across any vertical.” Some of the use cases she highlighted included customers using Tile in soil moisture sensors, or in asset tracking in the trucking industry.

A major part of Swarm’s business model is its low cost, with a Swarm Tile costing $119 and the connectivity service available for only $5 per month per connected device. Spangelo credits not only the engineering innovations in the tiny devices and satellites, but the gains in launch economics, especially for small satellite developers like Swarm. The company also sells direct, which further reduces overhead.

Swarm was founded by Spangelo, a pilot and aerospace engineering PhD who spent time at NASA’s Jet Propulsion Lab and at Google on its drone delivery project, Wing. She told TechCrunch that Swarm started as a hobby project between her and co-founder Ben Longmier, who had previously founded a company called Aether Industries that made high-altitude balloon platforms.

“Then [we] realized that we could do communications at speeds that were similar to what the legacy players are doing today,” Sara Spangelo said. “There was a lot of buzz around connectivity,” she added, noting that initiatives like Project Loon were garnering a lot of funding. But instead of trying to match the size and scale of some of these multi-year projects, they decided to go small.

In the four and a half years since the company’s founding, Swarm has put up a network of 120 sandwich-sized satellites into low Earth orbit and grown its workforce to 32 people. They’ve also been busy onboarding customers that use the Tile. One hope is that the Kit will be an additional way to draw customers to Swarm’s service.

Spangelo said the kit is for “everybody in between, that likes to just play with things. And it’s not just playing – the playing leads to innovations and ideas, and then it gets deployed out into the world.”

News: Hello Divorce raises $2M so that couples can say ‘good-bye’ easier

Divorce is messy and stressful, made even messier and stressful when a couple is unable to go through the legal process because of the cost.

Divorce is messy and stressful, made even messier and stressful when a couple is unable to go through the legal process because of the cost. Online divorce startup Hello Divorce is developing a platform to make this process more affordable and quicker.

To do this, the Oakland, California-based company announced Thursday a $2 million seed round led by CEAS, with additional funds coming from Lightbank, Northwestern Mutual Future Ventures, Gaingels and a group of individuals including Clio CEO Jack Newton, WRG’s Lisa Stone and Equity ESQ led by Ed Diab.

Statistics show there are an average of 750,000 divorces in the U.S. each year, and the average total cost of divorce can cost anywhere between $8,400 to $17,500 depending on what state you live in. Overall, some sources value the divorce industry at $50 billion annually.

Family law attorney Erin Levine founded the company in 2018 so that couples getting a divorce could access “affordable meaningful legal counsel” and resources beyond online forms. Levine told TechCrunch that the billable hours model for lawyers is “an antiquated process” for consumers that want an easier and clearer path to divorce.

“Right now, lawyers are the keeper of information, and clients keep paying until the divorce is done,” she said. “Divorce is more than forms. It is a challenging time, and most people need or want support. I saw a big hole there to use technology and fixed fees to put couples in the driver’s seat and take down that level of conflict.”

With this seed round, the company plans on rapidly scaling legal filing options across the U.S., improving its ground-breaking product, and giving consumers more of the content and services they need to feel informed and in control of their divorce process.

Hello Divorce provides software and accessible legal services starting at $99 for a do-it-yourself option or for up to an average of $2,000 for legal help along the way to finish the divorce process in a third of the time, and completely remote.

Levine said most people spend between two and five years contemplating divorce, and during that time are scared they will not be able to afford it, and if they have children, are afraid of losing them. Of those people, 80% won’t be able to access counsel.

Though the company is already profitable, Levine went after venture capital to be able to build an infrastructure and tap into the guidance that CEAS and other investors, like Lightbank’s Eric Ong bring to the table, saying “it is clear what I do know and what I don’t know.”

Ong said he met Levine through co-investors on the round, who told him Hello Divorce was something he would resonate with. Lightbank invests in category-stage companies, and he was drawn to what Levine and her team were doing.

“They are a combination of industry expertise and thinking outside of the box,” he said. “Eighty percent of people are still not getting meaningful representation, and we looked for technology that would provide a customer value proposition and we didn’t find one until Hello Divorce.”

The company plans to use the seed funding to scale legal filing options across the U.S., on product development and new content and services to educate people coming to Hello Divorce’s website.

The service is already available in four states — California, Colorado, Texas and Utah. Levine said the choice of initial states was strategic: She is familiar with California law, while Colorado has a complex system for divorce. Texas does not have a streamlined way for same-sex couples to get divorces, something Levine said she wanted to tackle, and Utah has a new regulatory scheme. Up next, she is expanding to New York and Florida, where she will launch in a bilingual format.

Since 2018, Hello Divorce has grown 100% year over year, with divorce success rates of 95% after starting the process on the platform. Over the past year, the company received 2,000 inquiries related to how to shelter in place with someone while contemplating divorce and co-parenting during lockdown.

“The inquiries increased about staying or going, and what divorce will look like,” Levine said. “It will be awhile before we see the total effects of what divorce looks like following the pandemic.”

 

News: ConverseNow is targeting restaurant drive-thrus with new $15M round

One year after voice-based AI technology company ConverseNow raised a $3.3 million seed round, the company is back with a cash infusion of $15 million in Series A funding.

One year after voice-based AI technology company ConverseNow raised a $3.3 million seed round, the company is back with a cash infusion of $15 million in Series A funding in a round led by Craft Ventures.

The Austin-based company’s AI voice ordering assistants George and Becky work inside quick-serve restaurants to take orders via phone, chat, drive-thru and self-service kiosks, freeing up staff to concentrate on food preparation and customer service.

Joining Craft in the Series A round were LiveOak Venture Partners, Tensility Venture Partners, Knoll Ventures, Bala Investments, 2048 Ventures, Bridge Investments, Moneta Ventures and angel investors Federico Castellucci and Ashish Gupta. This new investment brings ConverseNow’s total funding to $18.3 million, Vinay Shukla, co-founder and CEO of ConverseNow, told TechCrunch.

As part of the investment, Bryan Rosenblatt, partner at Craft Ventures, is joining the company’s board of directors, and said in a written statement that “post-pandemic, quick-service restaurants are primed for digital transformation, and we see a unique opportunity for ConverseNow to become a driving force in the space.”

At the time when ConverseNow raised its seed funding in 2020, it was piloting its technology in just a handful of stores. Today, it is live in over 750 stores and grew seven times in revenue and five times in headcount.

Restaurants were some of the hardest-hit industries during the pandemic, and as they reopen, Shukla said their two main problems will be labor and supply chain, and “that is where our technology intersects.”

The AI assistants are able to step in during peak times when workers are busy to help take orders so that customers are not waiting to place their orders, or calls get dropped or abandoned, something Shukla said happens often.

It can also drive more business. ConverseNow said it is shown to increase average orders by 23% and revenue by 20%, while adding up to 12 hours of extra deployable labor time per store per week.

Company co-founder Rahul Aggarwal said more people prefer to order remotely, which has led to an increase in volume. However, the more workers have to multitask, the less focus they have on any one job.

“If you step into restaurants with ConverseNow, you see them reimagined,” Aggarwal said. “You find workers focusing on the job they like to do, which is preparing food. It is also driving better work balance, while on the customer side, you don’t have to wait in the queue. Operators have more time to churn orders, and service time comes down.”

ConverseNow is one of the startups within the global restaurant management software market that is forecasted to reach $6.94 billion by 2025, according to Grand View Research. Over the past year, startups in the space attracted both investors and acquirers. For example, point-of-sale software company Lightspeed acquired Upserve in December for $430 million. Earlier this year, Sunday raised $24 million for its checkout technology.

The new funding will enable ConverseNow to continue developing its line-busting technology and invest in marketing, sales and product innovation. It will also be working on building a database from every conversation and onboarding new customers quicker, which involves inputting the initial menu.

By leveraging artificial intelligence, the company will be able to course-correct any inconsistencies, like background noise on a call, and better predict what a customer might be saying. It will also correct missing words and translate the order better. In the future, Shukla and Aggarwal also want the platform to be able to tell what is going on around the restaurant — what traffic is like, the weather and any menu promotions to drive upsell.

 

News: Nothing Ear (1) review

It’s always exciting to see a new company enter the consumer hardware space — and deliver a solid first product out of the game.

Carl Pei says he looked around and saw a lot of the same. He’s not alone in that respect. Apple didn’t invent the fully wireless earbud with the first AirPods, but it did provide a kind of inflection point that sent many of its competitors hurtling toward a sort of homogeneity. You’d be hard-pressed to cite another consumer electronics category that matured and coalesced as quickly as Bluetooth earbuds, but finding something unique among the hordes is another question entirely.

These days, a pair of perfectly serviceable wireless earbuds are one click and $50 away. Spend $200, and you can get something truly excellent. But variety? That’s a different question entirely. Beyond choosing between a long-stemmed AirPods-style design and something a bit rounder, there’s really not a lot of diversification. Up until recently, features like active noise canceling and wireless charging bifurcated the category into premium and non-premium tiers, but they’ve both become increasingly ubiquitous.

Image Credits: Brian Heater

So, let’s say you’re launching a new consumer hardware company in 2021. And let’s say you decided your first product is going to be a pair of earbuds. Where does that leave you? How are you going to not only differentiate yourself in a crowded market but compete alongside giants like Samsung, Google and Apple?

Price is certainly a factor, and $99 is aggressive. Pei seemed to regret pricing the Ear (1) at less than $100 in our first conversation. It’s probably safe to say Nothing’s not exactly going to be cleaning up on every unit sold. And much like his prior company — OnePlus — he seems reluctant to position cost as a defining characteristic.

In a conversation prior to the Ear (1) launch, Pei’s take on the state of the industry was a kind of “feature glut.” Certainly, there’s been a never-ending spec race across different categories over the last several years. And it’s true that it’s getting more difficult to differentiate based on features — look at what smartphone makers have been dealing with the last several years. Wireless headphones, meanwhile, jumped from the “exciting early-stage mess” stage to “the actually pretty good” stage in record time.

Image Credits: Brian Heater

I do think there’s still room for feature differentiation. Take the recently launched NuraTrue headphones. That company has taken an opposite approach to arrive at earbuds, beginning with a specialized audio technology that it’s built three different headphone models around.

Pei noted in the Ear (1) launch presser that the company determined its aesthetic ideals prior to deciding what its first product would be. And true to form, its partnership with the design firm Teenage Engineering was announced well before a single image of the product appeared (the best we got in the early days was an early concept inspired by Pei’s grandmother’s tobacco pipe).

There are other ideals, as well — concepts about ecosystems, but those are the sorts of things that can only come after the release of multiple products. In the meantime, we’ve seen the product from all angles. I’m wearing the product in the ears and holding it in my hand (though I’m putting it down now; too hard to type).

Image Credits: Brian Heater

The form factor certainly borrows from the AirPods, from the long stems to the white buds from which they protrude. You can’t say that they’re entirely their own thing in that respect. But perhaps a case can be made that the nature of fully wireless earbuds is, in and of itself, limiting in the manner of form factors it can accommodate. I’m certainly not a product designer, but they need to sit comfortably in your ears, and they can’t be too big or too heavy or protrude too much.

According to Pei, part of the product’s delayed launch was due to the company going back to the drawing board to rethink designs. What they ultimately arrived at was something recognizable as a pair of earbuds, while offering some unique flourishes. Transparency is the primary differentiator from an aesthetic standpoint. It comes into play in a big way with the case, which is unique, as these things go. With the buds themselves, most of the transparency happens on the stems.

Image Credits: Brian Heater

In a vacuum, the buds look a fair bit like an Apple product. The glossy white finish and white silicone tips are a big part of that. The reason the entire buds aren’t transparent, as early renderings showed, is a simple and pragmatic one: the components in the buds are too unsightly. That brings us to another element in the product’s eventual delay: making a gadget clear requires putting thought into how things like components and glue look. It’s the same reason why there’s a big white strip in the middle of an otherwise clear case: charging components are ugly (sorry/not sorry).

It’s a potential recipe for overly busy design, but I think the team landed on something solid — and certainly distinctive. That alone should account for something in the homogeneous world of gadget design. And the company’s partnership with StockX should be a pretty clear indication of precisely the sorts of early adopters/influencers Nothing is going after here.

The Ear (1) buds are a lot more welcoming than any of the style-first experiments Will.i.am made in the category. And while they’re distinct, they don’t really stand out in the wild — which is to say, no one’s going to scream and point or stop you in the street to figure what’s going on with your ears (sorry, Will).

Image Credits: Brian Heater

Ultimately, I dig the look. There are nice touches, as well. A red and white dot indicate the right and left buds, respectively, a nod to RCA and other audio cables. A subtle Nothing logo is etched in dotted text, bringing to mind circuit board printing. The letter extends to most of Nothing’s branding. It’s clear the design was masterminded by people who have spent a lot of time negotiating with supply-chain vendors. Notably, the times I spoke to Pei, he was often in and around Shenzhen rather than the company’s native London, hammering out last-minute supply issues.

The buds feel really great, too. I’ve noted my tendency to suffer from ear pain wearing various earbud designs for extended periods. On Monday, I took a four hour intra-borough walk and didn’t notice a thing. They also stayed in place like champs on visits to the gym. And not for nothing, but there’s an extremely satisfying magnetic snap when you place them back in the charging case (the red and white dots still apply).

Image Credits: Brian Heater

The case is flat and square with rounded edges (a squircle, if you please). If it wasn’t clear, it might closely resemble a tin of mints. It also offers a pretty satisfying snap when shutting. Will be curious to see how well that stands up after several hundred — or thousand — openings and closings.

Though the company says it put the product through all of the standard drop and stress tests, it warns that even the strongest transparent plastic is still prone to scratching, particularly with a set of keys in the same pocket. Pei says that kind of battle scarring will ultimately be part of its charm, but the jury’s still out on that one. After a few days and no keys in close proximity, I have one long scratch across the bottom. I don’t feel any cooler, but you tell me.

A large concave circle on the top helps keep the lid from slamming into the earbuds when closing. It’s also a nice spot to put your thumb when fiddling around with the thing. I suspect it doubles to relieve some of that fidgeting we (I) usually release by absentmindedly flipping a case lid up and down. It’s a small, but thoughtful touch. Round back, you’ll find the USB-C charging port and Bluetooth sync button.

Image Credits: Brian Heater

On iOS, you’ll need to connect the buds both through the app and in the Bluetooth settings the first time. There are disadvantages when you don’t make your own operating system, chips and phones in addition to earbuds. That’s a minor (probably one-time) nuisance, though.

The Ear (1) are a decent sounding pair of $99 headphones. I won’t say I was blown away, but I don’t think anyone is going to be disappointed that they don’t really go head-to-head with, say, the Sony WF-1000xM4 or even the new NuraTrue. These aren’t audiophile headphones, but they’re very much suitable for walking around the city, listening to music and podcasts.

The app offers a built-in equalizer tuned by Teenage Engineering with three settings: balanced, more treble/more bass, and voice (for podcasts, et al.). The differences are detectable, but pretty subtle, as far as these things go. As far as equalizer customizations go, it’s more point-and-shoot than DSLR, as Nothing doesn’t want you straying too far from the intended balance. After experimenting with all of the settings, I mostly stuck with the balanced setting. Feel free to judge me accordingly.

There are three ANC settings, as well: noise cancellation, transparency and off. You can also titrate the noise cancellation between light and heavy. On the whole, the ANC did a fine job erasing a fair bit of street noise on my New York City walks, though even at heavy, it’s not going to, say, block out the sound of a car altogether. For my sake, that’s maybe for the best.

There’s also a built-in “find my earbud” setting that sends out a kind of piercing chirp so you can find the one that is inevitably trapped beneath your couch cushion.

Image Credits: Brian Heater

My big complaint day today is one I encountered with the NuraTrue. I ran into a number of Bluetooth connection dropouts. It’s a bit annoying when you’re really engrossed in a song or podcast. And again, it’s something you’re a lot less likely to encounter for those companies that build their own buds, phone, chips and operating systems. It’s a pretty tough thing to compete with for a brand-new startup.

I have quibbles, and in spite of months of excited teases, the Ear (1) buds aren’t going to turn the overcrowded category upside down. But it’s always exciting to see a new company enter the consumer hardware space — and deliver a solid first product out of the game. It’s an idiosyncratic take on the category at a nice price from a company worth keeping an eye on.

News: Student labor marketplace Pangea closes $2M seed round

The startup runs a marketplace that links college-age talent to companies in need of their services. Social media and web developer work are popular on the Pangea platform.

Pangea, a Providence, Rhode Island-based startup that connects youthful talent and businesses in need of freelance labor, announced this morning that it has closed an oversubscribed $2 million seed round.

Pangea CEO and co-founder Adam Alpert told TechCrunch that his company had set out to secure $1.5 million, but wound up raising more. We’re hearing that somewhat often these days.

IDEA Fund Partners’ Lister Delgado led the round. Other investors in the transaction included Unpopular Ventures, Brown Angel Group, PJC and a number of individuals.

The startup graduated from Y Combinator earlier in the year, raising a check from the accelerator and another $350,000 since it closed a $400,000 pre-seed round last April. All told, Pangea has raised around $3 million.

The startup runs a marketplace that links college-age talent to companies in need of their services. Given the skillset of many college students, social media and web developer work are popular on the Pangea platform.

The model is scaling. Per Alpert and his co-founder John Tambunting, gross merchandise volume (GMV), or the value of sold services on Pangea’s market, rose 400% on a year-over-year basis in Q2 2021. And the CEO disclosed earlier in July that the company’s GMV rose 40% in the preceding four weeks.

For context, TechCrunch reported that Pangea was “facilitating $50,000 in transactions between college freelancers and businesses” in March 2021. That figure should now be heading toward the $100,000 monthly GMV run-rate threshold. We’ll annoy the company for new growth figures when Q3 ends.

The latest Pangea round was a priced event, meaning that the startup has graduated from the comfortable early-stage realm of SAFEs and other related instruments. The seed round values the company into the modest end of the eight-figure range.

What will Pangea use the money for? To scale its human capital. The company, currently four full-time staff, intends to more than double to nine.

And because it is based in Providence, a cheaper market than New York or San Francisco, its new capital will give it more time to grow. Alpert told TechCrunch that its seed capital will give it “20-25 product cycles,” the first time that we’ve heard runway expressed in that particular manner. We like it.

The CEO said that building in Providence, a “smaller city,” allows Pangea to better focus. And he said that because investors are now willing to invest remotely, the location is not particularly remote.

The startup is not the only upstart technology company in town. Alpert told TechCrunch that the Providence startup scene is starting to grow, saying that “a year ago, there was very little happening, but now there are now several other venture-backed, seed-stage startups here all working on the same floor as us.”

TechCrunch recently swung by the company’s office where its staff and collected summer interns were meeting. (Disclosure: Your scribe is not a very good photographer):

Image Credits: Alex Wilhelm. Look! A startup in an office! Doing things!

Adam Alpert, Tae Sam Lee Zamora, Kacie Galligan, John Tambunting. Via the company.

Pangea now has more capital than it has ever had to keep building out its product lineup, scale GMV and start extending its runway with revenue growth. Let’s see how far this seed round can take it, and how long it takes the startup to reach Series A scale.

WordPress Image Lightbox Plugin