Monthly Archives: July 2021

News: Summit invests $215M into Odoo, an open source business management software developer, at a $2.3B+ valuation

Open source has become a major force in the world of IT, and today a startup that has built a profitable operation by developing business management software on the priniciple is announcing a sizable secondary investment on the back of that growth. Odoo — a Belgium-based provider of open-source-based business software that ranges from inventory

Open source has become a major force in the world of IT, and today a startup that has built a profitable operation by developing business management software on the priniciple is announcing a sizable secondary investment on the back of that growth.

Odoo — a Belgium-based provider of open-source-based business software that ranges from inventory management and ERP through to human resources and CRM software, marketing tools and more, some 30,000 in all — has received $215 million from Summit Partners.

This is a secondary investment, meaning Summit is buying shares from existing investors (specifically Sofinnova Partners & XAnge): Odoo is profitable and has been so for years, CEO and founder Fabien Pinckaers explained in an interview earlier, and so it didn’t need to raise more cash by giving away more equity. He added that this investment values the startup at over €2 billion (or over $2.3 billion at current rates), making Odoo the first “unicorn” out of Wallonia, the region in Belgium where it is based.

(That in itself is notable: it’s a sign of the evolving decentralization of the tech world beyond “The Valley”.)

This is the second time Summit, which was one of Odoo’s earliest (equity) backers, has snapped up secondary shares: the firm made a similar investment of $90 million in 2019.

With 7 million users on its platform, Odoo is a prime example of the strong payoffs to be had from economies of scale in the most successful open source projects, but it’s also doing so with a twist.

On the open source front, Odoo provides a version of its services that is “open source” and free, which Pinckaers said contains about 80% of all of its features. It then offers a paid, proprietary version of the product with the remaining 20% of features (full details on pricing here).

About 90% of all of Odoo’s customer base takes the free tier, he said, with only 10% taking the paid, proprietary tier. But with 7 million users  that is enough to run the business at a profit big enough that it can continue investing in growth without giving away more equity.

On top of this, what is also notable is how Odoo pitches itself. While a lot of open source has been seen as the domain of developers and others in the technical community, what has set Odoo apart from them is the fact that it designs software on its platform that is actually aimed at others in the workplace, not engineers.

“We are one of the only exceptions of open source built for non-technical users,” Pinckaers said.

It targets users both directly via its SaaS platform, and via a very extensive channel partner operation where channel partners will host the services themselves. Its traction with these partners is strong, he added, because of the free nature of Odoo (which is not only a contrast to the SAPs, Microsofts and Oracles of the world, but at times a much easier sell around which a channel partner can provide other paid services). There are nearly 4,000 partners now, he added, with another 90,000 individual community members contributing software on the Odoo platform.

The company has been growing revenues and customers at a rate of 50% over the last 10 years (and 63% over the past 15: it’s been around since 2005), and it now has 1,700 employees with plans to add another 1,000 this year. Billings are expected to be €160 million in 2021. Pinckaers said that Odoo’s next steps will be to continue growing out the software that it provides to users on its platform. Specifically, the two areas it is focusing on are e-commerce and website development, he said, two areas that he feels could benefit from more non-technical, user-friendly open source tools.

“We are thrilled to support the Odoo team for this next phase of growth,” said Han Sikkens, MD and head of Europe at Summit Partners, in a statement. “We believe the future is bright, and Odoo clearly has the potential to disrupt the market led by software giants like SAP, MS Dynamics and Oracle.” Sikkens is joining the board with this round.

News: GGV Capital gave this real estate startup founder a term sheet 48 hours after meeting

Realm, which aims to help homeowners maximize the value of their property with its data platform, has raised $12 million in Series A funding led by GGV Capital. Existing backers Primary Venture Partners, Lerer Hippeau and Liberty Mutual Strategic Ventures also participated in the round, bringing the New York-based startup’s total raised to $15 million.

Realm, which aims to help homeowners maximize the value of their property with its data platform, has raised $12 million in Series A funding led by GGV Capital.

Existing backers Primary Venture Partners, Lerer Hippeau and Liberty Mutual Strategic Ventures also participated in the round, bringing the New York-based startup’s total raised to $15 million.

Liz Young founded Realm, launching the platform earlier this year with the goal of providing “a one-stop-shop for accessible, actionable home advice.”

So far, Realm says it has helped over 20,000 homeowners “uncover” an average of $175,000 in property value. Its user base is growing 20% month over month.

What makes the company different from other valuation offerings out there, according to Young, is that rather than telling owners what their homes are worth today, Realm can tell them what their home could be worth after renovations in months and years to come.

“There are a ton of tools and services that make it easier to buy or sell your home, but once you move, it’s a total black box,” she said. “You’re left trying to cobble together advice from fragmented, often biased resources to navigate big, expensive decisions. There’s nowhere else consumers spend so much money, with such little actionable information.”

For example, using data extracted from a variety of sources such as tax assessors and its own users, Realm can do things like tell a homeowner in real time how their property value will change if they do things like make over a bathroom or add a new deck. Its algorithms can assess a property and offer advice on what projects are most likely to add value.

“The public data that we acquire, the data we ingest from users, and the data that we build ourselves has allowed us to build the most robust and unique actionable real estate data set in the U.S.,” Young told TechCrunch.

Realm’s database is free and according to Young, offers insights on over 70 million single family detached homes across the U.S.

Part of that is determined by zoning data, which tells people where they can and cannot build on a property.

“It’s really important because square feet is one of the biggest drivers of home value,” Young said. “So if you’re trying to understand how much a home’s worth or could be worth, you really have to understand the local zoning rules.”

Image Credits: Realm

Realm’s marketplace offering, where an adviser connects owners to contractors, architects and lenders that can carry out the company’s recommendations, is currently only live in California, but will be expanding to new markets over the next 12 months.

“People can digitally consume our free insights but a lot want help interpreting them,” Young said.

The company plans to use its new capital to “improve the quality and sophistication of the platform’s data insights” and toward hiring across its data science, engineering, marketing and operations teams. It will also continue to develop its proprietary data sets and models, which offer homeowners across the country personalized analysis of over 70 million homes.
A lot of Realm’s business is driven by its relationships with agents and word of mouth via its existing user base.

Jeff Richards, GGV managing partner and new Realm board member, said that when his firm backs at the Series A level, its bet is “100% on the founder.”

“I met Liz when she was raising her seed round in July 2020 and was blown away,” he told TechCrunch. “She’s smart, ambitious and has a deep background in the space she’s going after. Although it was early, I could tell she was thinking big.”

Founder and CEO Liz Young. Image Credits: Realm

He points out that GGV Capital, with $2.5 billion in assets under management, is a long-time investor in other proptechs including Opendoor, Divvy Homes, Belong and Airbnb.

“Zillow made it easy for people to find a home to buy. Opendoor made it easy to buy and sell a home,” Richards told TechCrunch. “Airbnb made it easy to rent a home for a short-term vacation. Belong is making it easy to rent a home for the long term.”

Realm, according to Richards, was right in GGV’s “sweet spot.”

“No one has zeroed in on helping the individual homeowner manage their home, and that’s the opportunity area Liz is going after,” he said. “We kept in touch after the seed round, she pinged me to talk about her A, we met up and I gave her a term sheet 48 hours later.”

In general, Richards believes that residential real estate is one of the biggest spend categories in the U.S. and yet is still virtually untouched by technology.

Home sales are over $1.6 trillion annually, home improvement is one of the biggest categories in the U.S. at over $500 billion annually, and the average home renovation project in the U.S. is around $15,000, with many spending over $50,000.

“I’ve owned a home for 17 years and almost everything I do with respect to the home is the same as it was over a decade ago. The only thing that has really changed is I can manage my thermostat and cameras with my phone,” Richards said. “Literally everything else is the same — the way I do renovations, the way I find contractors to do repairs, the way I pay my mortgage, etc. — exactly the same. That’s ridiculous! Liz sees a huge opportunity here, and so do we. The market is enormous. So there will be many, many winners.”

News: Rocket Lab returns to flight after failed May mission with successful launch for U.S. Space Force

Rocket Lab is back in business launching rockets, after an issue during its last launch in May caused a total loss of the payloads on board. The company was quick to investigate the issue, and announced just over a week ago that it had completed that work, identified the problem and implemented corrective action to

Rocket Lab is back in business launching rockets, after an issue during its last launch in May caused a total loss of the payloads on board. The company was quick to investigate the issue, and announced just over a week ago that it had completed that work, identified the problem and implemented corrective action to make sure it doesn’t happen again.

The launch today, which took off from the company’s Launch Complex 1 in New Zealand, was an important one to get right: It delivered a satellite for the U.S. Space Force to low Earth orbit. This is the second Space Force mission that Rocket Lab has provided launch services for.

On board the Electron launch vehicle for this mission was a demonstration satellite called ‘Monolith,’ which is equipped with a new kind of deployable sensor that could, if it works as designed, pave the way for significantly smaller satellite buses in future spacecraft designs for things like weather and observation satellites.

This turnaround after a failed launch and loss of client payload is another benefit of Rocket Lab’s ability to quickly turnaround rockets and missions. It’ll definitely be under increased scrutiny for the next little while, however, considering that this latest mishap was the second ‘anomaly’ to result in mission failure in just under a year.

News: Employee engagement platform Culture Amp raises $100M at a $1.5B valuation

Culture Amp was founded in 2009 to let companies conduct anonymous employee surveys, but since then, its focus has expanded to helping employers turn the data they collect into action. The company announced today it has raised $100 million in Series F funding, led by returning investors Sequoia Capital India and TDM Growth Partners. The

Culture Amp was founded in 2009 to let companies conduct anonymous employee surveys, but since then, its focus has expanded to helping employers turn the data they collect into action. The company announced today it has raised $100 million in Series F funding, led by returning investors Sequoia Capital India and TDM Growth Partners. The round bumps Culture Amp’s valuation to $1.5 billion, more than double what it was after the company’s Series D in 2019.

New investor Salesforce Ventures, along with existing backers Felicis Ventures, Blackbird Ventures, Index Ventures, Sapphire Ventures, Skip Capital, Grok Ventures and Global Founders Capital also participated in the round.

Culture Amp is now used by more than 4,000 organizations with a total of 25 million employees. Its clients range in size from about 20 to 30 people to more than 150,000 employees, and include Salesforce, Unilever, PwC, KIND, SoulCycle and BigCommerce.

From its start as a survey platform, Culture Amp has grown to encompass analytics for managers, like turnover prediction and team goal tracking. It also has a sizable online community where users can connect and book workshops, including ones run by diversity, equity and inclusion experts. Culture Amp recently held a virtual version of Culture First, its annual event, with over 20,000 participants.

Founder and chief executive officer Didier Elzinga told TechCrunch that he sees Culture Amp’s Series F as a “validation of the HR space in general.”

“I think for a long time, the HR space and HR tech space have been viewed as not that interesting or important, but what we see now is that people are the most important thing that most companies have, so what can we do to craft their experiences,” he added. “I think it’s a really interesting step for the space as a whole, for an organization like Culture Amp to have made it to this level of revenue, fundraising and valuation.”

The company still has most of its funds from its Series E, but the new round will allow it to “work at a whole other level of scale,” Elzinga said. Culture Amp launched in Australia, and about two-thirds of its revenue comes from the United States. It is also growing in Europe, so some of its new funding will be used on its dual data centers. Elzinga added that the raise also gives Culture Amp a warchest to spend on acquisitions.

Over the past year and a half, employers have dealt with two major issues: a remote workforce coping with the COVID-19 pandemic and growing calls for diversity, equity and inclusion.

Culture Amp saw more employers addressing DEI in surveys; for example, the number of companies who asked employees questions like do they “build teams that are diverse” increased about 30% in 2020. Clients have access to surveys created with behavioral psychologists, including ones designed to see if women, people of color or people who use English as a second language are feeling disengaged and, if so, how to help them.

To understand the pandemic’s impact, the platform introduced well-being templates, asking if employees are feeling overwhelmed, how they feel about messaging from company leaders and gauging their willingness to return to the office.

Surveys are answered anonymously and data is aggregated to protect the privacy of individual employees. To help companies act on the results they get, Culture Amp provides what it calls an “Inspiration Engine,” or practices that have worked for other companies.

Since Culture Amp works with a large group of employers, it is able to create benchmarks by industry, size and region. This allows companies to see how their employee engagement compares to others in the same space.

Another feature, Skills Coach, is based on behavioral science research and helps managers develop “soft skills” through two-minute interactive exercises that are delivered by Slack or email.

“The experience that employees have is the thing we want to up level, but the way we want to do it and what we’re focused on is lifting managers’ capability to delivery that employee experience,” Elzinga said. Skills Coach was designed to fit into busy workdays and its usage has tripled over the past year, he added.

“We think that for all the progress we have made, we’re still at the beginning of actually delivering on that employee experience,” he added. “I think the last two years have shown us how important mental well-being is, how important diversity and inclusion is, and how important it is for leaders to truly listen to their people and then to act on that and follow up.”

Other employee feedback platforms include Lattice, Glint and Qualtrics. Elzinga said the main way Culture Amp differentiates is its team of “People Scientists,” or organizational and behavioral psychologists who design surveys, work in its product team as analysts and serve as consultants for clients.

“We see ourselves at the point now where we have enough data that we can start to do primary research on a lot of these issues and we’re looking at how can the data we are developing help inform the space in general, not just ‘here’s what our customers are doing,’ but research that shows how this correlates to that in a situation,” said Elzinga. “The people science component is a hugely important to us.”

In a statement about its investment in Culture Amp, TDM Growth Partners co-founder Hamish Corlett said, “Organizations are living in a world of unprecedented change, and the last 12 months have only accelerated this. We have seen first hand the power that Culture Amp’s unrivaled data set and unique insights have inside boardrooms globally, and we expect this only to amplify in the coming years.”

News: Exo secures $200M toward commercializing ultrasound device

Exo, pronounced “echo,” is commercializing its handheld ultrasound device and point-of-care workflow platform, Exo Works.

Exo, pronounced “echo,” raised a fresh cash infusion of $220 million in Series C financing aimed at commercializing its handheld ultrasound device and point-of-care workflow platform, Exo Works.

The round was led by RA Capital Management, while BlackRock, Sands Capital, Avidity Partners, Pura Vida Investments and prior investors joined in.

The new funding gives the Redwood City, California-based company over $320 million in total investments since the company was founded in 2015, Exo CEO Sandeep Akkaraju told TechCrunch. This includes a $40 million investment raised in 2020.

Ultrasound machines can cost anywhere from $40,000 to $250,000 for low-end technology and into the millions for high-end machines. Meanwhile, Exo’s device will be around the cost of a laptop.

“It is clear to us that ultrasound is the future — it is nonradiating and has no harmful side effects,” Akkaraju said. “We want to take the technology and put it in the palms of physicians. We also want to bring it down to the patient level. The beauty of having this window into the body is you can immediately see things.”

Using a combination of artificial intelligence, medical imaging and silicon technology, the device enables users to use it in a number of real-world medical environments like evaluating cardiology patients or scanning lungs of a COVID-19 patient. It can also be used by patients at home to provide real-time insight following a surgical procedure or to monitor a certain condition.

Exo then adds in its Exo Works, the workflow platform, that streamlines exam review, documentation and billing in under one minute.

Akkaraju said the immediate focus of the company is commercializing the device, which is where most of the new funding will go. He intends to also build out its informatics platform that is being piloted across the country and to ramp up both production and its sales force.

The global point-of-care ultrasound market is expected to reach $3.1 billion by 2025 and will grow 5% annually over that period. In addition to physicians, Akkaraju is hearing from other hospital workers that they, too, want to use the ultrasound device for some of their daily tasks like finding the right vein for an IV.

Once the company’s device is approved by the U.S. Food and Drug Administration, Exo will move forward with its plan to bring the handheld ultrasound device to market.

Zach Scheiner, principal with RA Capital Management, said he met the Exo team in 2020 and RA made its first investment in the Series B extension later that year.

He was “immediately compelled” by the technology and the opportunity to scale. Scheiner also got to know Akkaraju over the months as well as saw how Exo’s technology was improving.

“We are seeing an expanding opportunity in healthcare technology as it improves and costs go down,” he added. “The vision Sandeep has of democratizing the ultrasound is not a vision that was possible 15 or 20 years ago. We are seeing the market in its early stage, but we also recognize the potential. Every doctor should want one to see what they were not able to see before. As technology and biology improves, we are going to see this sector grow.”

 

News: Homebase raises $70M for a team management platform aimed at SMBs and their hourly workers

Small and medium enterprises have become a big opportunity in the world of B2B technology in the last several years, and today a startup that’s building tools aimed at helping them manage their teams of workers is announcing some funding that underscores the state of that market. Homebase, which provides a platform that helps SMBs

Small and medium enterprises have become a big opportunity in the world of B2B technology in the last several years, and today a startup that’s building tools aimed at helping them manage their teams of workers is announcing some funding that underscores the state of that market. Homebase, which provides a platform that helps SMBs manage various services related to their hourly workforces, has closed $70 million in funding, a Series C that values the company at between $500 million and $600 million, according to sources close to the startup.

The round has a number of big names in it that are as much a sign of how large VCs are valuing the SMB market right now, as it is of the strategic interest of the individuals who are also participating. GGV Capital is leading the round, with past backers Bain Capital Ventures, Baseline Ventures, Bedrock, Cowboy Ventures, and Khosla Ventures also participating. Individuals meanwhile include president of Focus Brands Kat Cole, Jocelyn Mangan (a board member at PapaJohns and Chownow and former COO of Snag), former CFO of payroll and benefits company Gusto Mike Dinsdale, Guild Education founder Rachel Carlson, star athletes Jrue and Lauren Holiday and alright alright alright actor and famous everyman and future political candidate Matthew McConaughey.

Homebase has raised $108 million to date.

The funding is coming on the heels of strong growth for Homebase (which is not to be confused with the UK/Irish home improvement chain of the same name, nor the YC-backed Vietnamese proptech startup).

The company now has some 100,000 small businesses, with 1 million employees in total, on its platform, which use Homebase to manage all manner of activities related to workers that are paid hourly, including (most recently) payroll, as well as shift scheduling, timeclocks and timesheets, hiring and onboarding, communication, and HR compliance.

John Waldmann, Homebase’s founder and CEO, said the funding will go towards both continuing to bring on more customers, as well as expand the list of services offered to them, which could include more features geared to front-line and service workers, as well as features for small businesses who might also have some “desk” workers who might still work hourly.

The common thread, Waldmann said, is not the exact nature of those jobs, but the fact that all of them, partly because of that hourly aspect, have been largely underserved by tech up to now.

“From the beginning, our mission was to help local businesses and their teams,” he said. Part of his inspiration he said came from people he knew: a childhood friend who owned an independent, expanding restaurant chain, and was going through the challenges of managing his teams there, carrying out most of his work on paper; and his sister who worked in hospitality, which didn’t look all that different from his restaurant friend’s challenges. She had to call in to see when she was working, writing her hours in a notebook to make sure she got paid accurately. 

“There are a lot of tech companies focused on making work easier for folks that sit at computers or desks, but are building tools for these others,” Waldmann said. “In the world of work, the experience just looks different with technology.”

Homebase currently is focused on the North American market — there are some 5 million small businesses in the U.S. alone, and so there is a lot of opportunity there. The huge pressure that many them have experienced in the last 18 months of Covid-19 living, leading some to shut down altogether, has also focused the mind on how to manage and carry out work much more efficiently and in a more organized way to ensure you know where your staff is, and that your staff knows what it should be doing at all times.

What will be interesting is to see what kinds of services Homebase adds to its platform over time: in a way it’s a sign of how the hourly wage workers are becoming a more sophisticated and salient aspect of the workforce, with their own unique demands. Payroll, which is now live in 27 states, also comes with pay advances, opening the door to other kinds of financial services for Homebase, for example.

“Small businesses are the lifeblood of the American economy, with more than 60% of Americans employed by one of our 30 million small businesses. In a post-pandemic world, technology has never been more important to businesses of all sizes, including SMBs,” said Jeff Richards, managing aartner at GGV Capital and new Homebase board member. “The team at Homebase has worked tirelessly for years to bring technology to SMBs in a way that helps drive increased profitability, better hiring and growth. We’re thrilled to see Homebase playing such an important role in America’s small business recovery and thrilled to be part of the mission going forward.”

It’s interesting to see McConaughey involved in this round, given that he’s most recently made a turn towards politics, with plans to run for governor of Texas in 2022. “Hard working people who work in and run restaurants and local businesses are important to all of us,” he said. “They play an important role in giving our cities a sense of livelihood, identity, and community. This is why I’ve invested in Homebase. Homebase brings small business operations into the modern age and helps folks across the country not only continue to work harder, but work smarter.”

News: European Investment Fund puts $30M in Fabric Ventures’ new $120M digital assets fund

Despite their rich engineering talent, Blockchain entrepreneurs in the EU often struggle to find backing due to the dearth of large funds and investment expertise in the space. But a big move takes place at an EU level today, as the European Investment Fund makes a significant investment into a blockchain and digital assets venture

Despite their rich engineering talent, Blockchain entrepreneurs in the EU often struggle to find backing due to the dearth of large funds and investment expertise in the space. But a big move takes place at an EU level today, as the European Investment Fund makes a significant investment into a blockchain and digital assets venture fund.

Fabric Ventures, a Luxembourg-based VC billed as backing the “Open Economy” has closed $120 million for its 2021 fund, $30 million of which is coming from the European Investment Fund (EIF). Other backers of the new fund include 33 founders, partners, and executives from Ethereum, (Transfer)Wise, PayPal, Square, Google, PayU, Ledger, Raisin, Ebury, PPRO, NEAR, Felix Capital, LocalGlobe, Earlybird, Accelerator Ventures, Aztec Protocol, Raisin, Aragon, Orchid, MySQL, Verifone, OpenOcean, Claret Capital, and more. 

This makes it the first EIF-backed fund mandated to invest in digital assets and blockchain technology.

EIF Chief Executive Alain Godard said:  “We are very pleased to be partnering with Fabric Ventures to bring to the European market this fund specializing in Blockchain technologies… This partnership seeks to address the need [in Europe] and unlock financing opportunities for entrepreneurs active in the field of blockchain technologies – a field of particular strategic importance for the EU and our competitiveness on the global stage.”

The subtext here is that the EIF wants some exposure to these new, decentralized platforms, potentially as a bulwark against the centralized platforms coming out of the US and China.

And yes, while the price of Bitcoin has yo-yo’d, there is now $100 billion invested in the decentralized finance sector and $1.5 billion market in the NFT market. This technology is going nowhere.

Fabric hasn’t just come from nowhere, either. Various Fabric Ventures team members have been involved in Orchestream, the Honeycomb Project at Sun Microsystems, Tideway, RPX, Automic, Yoyo Wallet, and Orchid.

Richard Muirhead is Managing Partner, and is joined by partners Max Mersch and Anil Hansjee. Hansjee becomes General Partner after leaving PayPal’s Venture Fund, which he led for EMEA. The team has experience in token design, market infrastructure, and community governance.

The same team started the Firestartr fund in 2012, backing Tray.io, Verse, Railsbank, Wagestream, Bitstamp, and others.

Muirhead said: “It is now well acknowledged that there is a need for a web that is user-owned and, consequently, more human-centric. There are astonishing people crafting this digital fabric for the benefit of all. We are excited to support those people with our latest fund.”

On a call with TechCrunch Muirhead added: “The thing to note here is that there’s a recognition at European Commission level, that this area is one of geopolitical significance for the EU bloc. On the one hand, you have the ‘wild west’ approach of North America, and, arguably, on the other is the surveillance state of the Chinese Communist Party.”

He said: “The European Commission, I think, believes that there is a third way for the individual, and to use this new wave of technology for the individual. Also for businesses. So we can have networks and marketplaces of individuals sharing their data for their own benefit, and businesses in supply chains sharing data for their own mutual benefits. So that’s the driving view.”

News: Coralogix logs $55M for its new take on production analytics, now valued at $300-$400M

Data may be the new oil, but it’s only valuable if you make good use of it. Today, a startup that has built a new kind of production analytics platform for developers, security engineers and data scientists to track and better understand how data is moving around their networks is announcing a round of funding

Data may be the new oil, but it’s only valuable if you make good use of it. Today, a startup that has built a new kind of production analytics platform for developers, security engineers and data scientists to track and better understand how data is moving around their networks is announcing a round of funding that underscores the demand for their technology. Coralogix, which provides stateful streaming services to engineering teams, has picked up $55 million in a Series C round of funding.

The round was led by Greenfield Partners, with Red Dot Capital Partners, StageOne Ventures, Eyal Ofer’s – O.G. Tech, Janvest Capital Partners, Maor ventures, and 2B Angels also participating.

This Series C is coming about 10 months after the company’s Series B of $25 million, and from what we understand Coralogix’s valuation is now in the range of $300 million – $400 million, a big jump for the startup, coming on the back of it growing 250% since this time last year, racking up some 2,000 paying customers, some small teams paying as little as $100/year through to large enterprises paying $1.5 million/year.

Previously, Coralogix — founded in Tel Aviv and with a HQ also in San Francisoc — had also raised a round of $10 million.

Coralogix got its start initially as a platform aimed at quality assurance support for R&D and engineering teams. The focus here is on log analytics and metrics for platform engineers, and this still forms a big part of its business today. Added to that, in recent years, Coralogix’s tools are also being applied to cloud security services, contributing to a company’s threat intelligence by providing a way to observe data for any inconsistencies that typically might point to a breach or another incident. (It integrates with Alien Vault and others for this purpose.)

The third area that is just picking up now and will be developed further — one of the uses of this investment, in fact — will be to develop how Coralogix is used for business intelligence. This is a particularly interesting area because it plays into how Coralogix is built, to provide analytics on data before it is indexed.

“It’s about high volume, but low value data,” Ariel Assaraf, Coralogix’s CEO, said in an interview. “Customers don’t want to store the data [or index it] but want to view it live and visualize it. We are starting to see a use case where business information and our analytics come together for sentiment analysis and other areas.”

There are dozens of strong companies providing tools these days to cover log analytics and data observability, underscoring the general growth and importance of DevOps these days. They include companies like DataDog, Sumo Logic, Splunk and more.

However, Assaraf believes that what sets his company apart from them is its approach: essentially it has devised a way of observing and analyzing data streams before they get indexed, giving engineers a more flexibility to query the data in different ways, and essentially glean more insights, faster. The other issue with indexing, he said, is that it impacts latency, which also has a big impact on overall costs for an organization.

For many of Coralogix’s competitors, turning around the nature of the business to focus not first on indexing would be akin to completely rebuilding the business, hard to do at their scale (although in fact this is what Coralogix did, when it pivoted as a small company several years ago, which is when Assaraf took on the role of CEO). One company he believes might be more of a direct rival is Confluent.

“I think we will see Confluent getting into observability very soon because they have the streaming capabilities,” he said, “but not the tools we have.” Another potential competitor looming on the horizon: Salesforce, and its potential move into that area, underscores the shifting sands of what is powering enterprise IT investment decisions today.

Salesforce already has Heroku, Slack and Tableau, three major tools developers use for tracking and working with data, Assaraf pointed out, and there were strong rumors of it trying to buy DataDog, “so we definitely see where they are going. For sure, they understand the way things are changing. All the budgets when Salesforce first started were in marketing and sales. Now you sell to IT. Salesforce understands that shift to developers, and so that is where they are going.”

It makes for a very interesting landscape and future for companies like Coralogix, one that investors believe the startup will continue to shape as it has up to now.

“The  dramatic shift in digital transformation is generating an explosion of data, which until now has forced enterprises to decide between cost and coverage,” said Shay Grinfeld, managing partner at Greenfield Partners. “Coralogix’s real-time streaming analytics  pipeline employs proprietary algorithms to break this tradeoff and generate significant cost savings. Coralogix has built a customer roster that comprises some of the largest and most innovative companies in the world. We’re thrilled to partner with Ariel and the Coralogix team on their journey to reinvent the future of data observability.”

News: Connected car insurance startup Flock raises $17M Series A led by Chamath Palihapitiya

Cast your mind back to that scene in Minority Report where all those autonomous cars are whizzing through the city. The more practically-minded of you may well have gone: “Yeah, but what about the insurance…?”. Among the startups building the on-demand, connected insurance world for the vehicles of tomorrow right now are UK-based Zego which

Cast your mind back to that scene in Minority Report where all those autonomous cars are whizzing through the city. The more practically-minded of you may well have gone: “Yeah, but what about the insurance…?”.

Among the startups building the on-demand, connected insurance world for the vehicles of tomorrow right now are UK-based Zego which has raised $201.7 million. Another is Flock.

Emerging from an academic project to look at drones, Flock shifted into providing drones insurance then commercial vehicle insurance. The twist is that it hooks into the telematics of cars so that the vehicle only triggers insurance cover when it’s actually moving, not when it’s sitting on the lot, incapable of causing any accidents.

Flock has now raised $17 million in a Series A funding led by Social Capital, the investment vehicle run by Chamath Palihapitiya, best known as a SPAC investor and Chairman of Virgin Galactic. Flock’s existing investors Anthemis and Dig Ventures also participated. This round brings Flock’s total funding to $22 million. Justin Saslaw (Social Capital’s Fintech Partner) joins Flock’s Board of Directors as does Ross Mason (Founder of Dig Ventures & MuleSoft).

Ed Leon Klinger, CEO of Flock said: “Transportation is changing faster than ever, but the traditional insurance industry can’t keep up! The proliferation of electric cars, new business models such as ridesharing, and the emergence of autonomous vehicles pose huge challenges that traditional insurers just aren’t equipped for.”

He added: “Modern fleets need an equally modern insurance company that moves as fast as they do. Commercial motor insurance is a $160Bn market, crying out for disruption. The opportunity ahead of us is enormous.”

In a statement Chamath Palihapitiya, CEO of Social Capital said: “Flock is bridging the gap between today’s insurance industry and tomorrow’s transportation realities. By using real-time data to truly understand vehicle risk, Flock is meeting the demands of our rapidly evolving, hyper-connected world. Flock has the potential to help unlock and enable a truly autonomous world, and even save lives. We’re excited to be a part of their journey.”

Speaking to me over a call, Klinger outlined how the company had hit a sweet spot by hooking into Telematics APIs for cars, or by doing special integrations with existing providers and OEMs: “We’ve built our own integrated approach whereby we partner with some and we build bespoke integrations with them. Often they are not as advanced as others. So we’ll either use our integration platform or or we’ll use their approach. We’re highly flexible. The core value proposition at Flock is its flexibility, so we don’t force our own integration approach.”

News: Unmuted founder Max van den Ingh on success beyond the metrics

“You have to understand that working at a startup often feels like you’re standing on the edge of a cliff. And that’s also the moment you’re at your most creative.”

There is no authoritative playbook for marketing these days. Every company must find its own voice, and as it grows and evolves, its marketing needs to evolve as well.

Relying on proven tactics and measurable metrics isn’t enough — today, the most effective marketers constantly study and learn from innovative approaches while exploring new avenues.

This is where Unmuted comes in. A growth marketing agency based in Amsterdam, this company focuses on LinkedIn marketing, content marketing, marketing automation and email marketing. Before starting Unmuted, Max van den Ingh was head of growth and product at MisterGreen, an electric vehicle leasing company, and he also served as head of growth marketing at ShopPop, a chat-based marketing platform.

Van den Ingh, who also serves as a guest lecturer at Nyenrode Business University, was recommended to TechCrunch through the TechCrunch Experts project. We’re currently on the lookout for top-tier growth marketers that you can recommend to other startups. If you know of one, let us know by filling out this quick survey.

Van den Ingh spoke with us about his “modern” approach to marketing, setting realistic goals, how startups had to shift during the pandemic and more.

Editor’s note: This interview has been edited for length and clarity.

You call Unmuted a “modern” growth marketing agency. What do you do that makes your approach to marketing modern?

The way we help our clients is fundamentally different from how most traditional marketing agencies operate. At Unmuted, our clients don’t come to us to have their ideas executed; they come to us for our process. In a way, we’ve productized a growth marketing process that generates ideas for our clients. They find immense value in that process.

Depending on the customer’s team size and resources, we either guide them during execution or execute autonomously and report back. This process-based service model is, in our opinion, the only way to grow a business in a sustainable way.

“The way we help our clients is fundamentally different from how most traditional marketing agencies operate. “

In a practical sense, this is what that process boils down to: We take all that we’ve learned from fast-growing companies and apply these principles to our clients’ businesses. Typically we focus on what we call “innovative companies” — whether that’s because they have a SaaS offering or they’re an innovator within a traditional industry doesn’t really matter. The process we’ve designed works for B2B startups, scaleups and SMBs. That last category can benefit greatly from the way we work.

Our role, then, is threefold: We come up with strategies that we carry out by experimenting with several proven marketing tactics based on our extensive in-house knowledge and experience. This relieves our clients’ marketing teams of potentially stifling tunnel vision.

Our growth program typically unfolds in three stages as well, which we call the Foundation, Acceleration and Transformation stages. In the Foundation stage, we set up the fundamentals based on an extensive audit of the client’s business, and start out with our initial experiments. In the Acceleration stage, we scale the experiments that have shown promising early results. Finally, in the Transformation stage, we teach our clients how to continue growing their business themselves. If necessary, we stick around in a consulting role.

Your work at MisterGreen helped it grow about 10x. How much can a client expect to grow when working with you? How do you help clients set realistic goals?

Setting goals is always a challenge, especially when it comes to marketing. Why should you aim for a certain number? Why not aim higher, or lower, for that matter? At Unmuted, when we start working with a new client, we perform a series of exercises together. This helps us get a clear picture of where the client is now and where they could be when we’ve optimized marketing.

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Next, instead of fixed numbers, like a specific amount of new customers in a given period, we focus on growth levers, like month-over-month growth in certain conversion or activation areas. Focusing on growth levers makes our work more actionable.

We then construct a framework as part of our growth program that also allows room for certain beliefs a company has. I feel this “belief system” is truly essential to any growth marketing strategy. If you don’t allow room for gut feeling activities and only focus on data-driven projects, you will end up only working on things you can measure. We believe that growth marketing will become more effective when you also invest time and effort in channels and spaces you can’t necessarily measure.

When people talk about your solution on WhatsApp or during podcast episodes, that’s amazing and will effectively influence revenue, but sometimes there’s just no way to track these activities.

Finally, we don’t make any guarantees when it comes to growth results. That’s not how it works. We’ll always aim to maximize results as part of the process. Diligent focus on continuous improvement and optimization comes first. Results will automatically follow afterward.

For instance, we recently helped a B2B SaaS platform increase demo requests by 350%. But this wasn’t the goal at all. The process we were following was focused on optimizing every aspect of the demo request journey, from acquiring visitors to optimizing the demo page and more. Every experiment we ran increased the demo request metric to some extent. After six months, you start seeing these compounded results.

You were also the head of growth at ShopPop. How did that experience shape the way you help your clients?

Working for a fast-growing B2B SaaS company with a self-serve product taught me quite a few things. For starters, the importance of getting a really clear understanding of what sustainable growth looks like. Especially in growth marketing, there are a lot of things you can do to gain short-term results. But this doesn’t necessarily help, because you might be acquiring customers that you lose in the long run.

For example, running aggressive advertising campaigns in the early stages to acquire new users in sectors that you know won’t benefit considerably from your product. This type of superficial growth will come back in the form of churn sooner rather than later, and simply isn’t sustainable.

At Unmuted, when we start working with a new client, we put a lot of time and effort into understanding their best type of customers, what their problems are, and why that’s the case. Only then do we start looking at how to solve those problems with our client’s products or services.

You’re a guest lecturer at Nyenrode Business University and do speaking engagements as well. What do you hope people take away from your talks?

When I stand in front of a crowd during a speaking engagement, I always share stories about times where I took a pragmatic approach and did things differently. Growth can come in different shapes and forms, and although it often seems simple, it’s never easy. People, and especially management, have to understand that growth takes time and that you need failures to learn.

You need to have conversations to be able to learn and iterate. It’s better to have the wrong type of conversations than not having any at all. Without feedback, there’s no way to grow. And while an eagerness to learn comes naturally to most marketers, this isn’t necessarily the case for your average business person. If I can inspire audiences with my approach to growing by learning, I think that’s a great takeaway.

How have you seen startups change during the pandemic?

A lot of startups have been forced to change their approaches during the pandemic. Some have adapted successfully, while others are now stuck. I experienced it personally when I was still working at ShopPop, where we were focused on the music industry when the pandemic hit.

Music industry clients weren’t buying, for obvious reasons, so we had to pivot somehow. We ended up moving into e-commerce, which was, and still is, booming.

As the pandemic continues, what trends are you seeing in growth marketing?

The biggest trend I’m currently seeing is in the role marketing departments play. These have never been as important as they are now. Digital marketers, especially, are often the ones that come up with new ideas as to how a company can grow online. Nobody will know how the COVID-19 pandemic will play out, but in the meantime, every company is trying to adapt and find new ways to connect with their customers in unique, meaningful ways.

Logically, we’re seeing a surge in demand for online events like webinars and virtual summits. But everybody is doing those. So where can you carve out your own thing that becomes recognizable for your brand? Discovering these new channels and approaches — I think that should be the role of marketing.

How have you seen the startup market develop while working in growth?

The development of the startup market has been most noticeable in how new standards are being set. For example, startups have always been characterized as fast movers, but remote working and the rise of highly collaborative tools have further increased the speed at which startups operate. The whole industry transformed from speedboats into rocket ships. Talent became much more accessible, and through that internal cultures became more diverse and more resilient.

You can always depend on startups adopting new ways of working early on. They need to differentiate in order to survive, and a novel approach can be the one thing that makes them stand out from the crowd.

You have to understand that working at a startup often feels like you’re standing on the edge of a cliff. And that’s also the moment you’re at your most creative. I think this is also how growth marketing as a whole came about. In competitive markets, people have to fight for their right to exist. Marketing is often a way to radically differentiate. When people become really good at that, set new standards and raise the bar, the market develops as a whole.

What do startups continue to get wrong?

It’s been said many times before, but even today, most startups don’t learn quickly and deeply enough. Founders often have an amazing idea and vision of how things will play out. But how much field experience does this person really have? Enough to be able to foresee the future?

Usually, for startups, short-term growth goes well — they get some initial traction from their network, but then the next phase kicks in. Especially when there’s an investment involved, putting more pressure on the commercial side of things, this next phase will mean encountering a lot of hurdles.

When a company doesn’t find a strong enough product-market fit and doesn’t apply what its learned early on, things will get extremely tough. In this phase, a lot of research and experimentation is necessary. If the founding team isn’t up for this and they put their heads in the sand, the startup will deteriorate quickly.

On the other side: What are startups doing better now than ever before?

The best thing a startup can do, and I’m seeing it happen more and more, is investing in community early on. When I was leading growth at MisterGreen, we created a community for the first thousand Tesla Model 3 owners in the Netherlands. Everyone wanted to be a part of this founding tribe, learn from each other, get insights and so on.

This group turned out to be our most effective marketing tool. Word-of-mouth went through the roof. We had all of these people talking about our community at birthday parties, in their office, you name it. This is a great example of investing in marketing you can’t really measure, but which you do strongly believe in.

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