Monthly Archives: August 2021

News: Apax to combine three social impact software companies in deal valued at $2B

Who says there is no big money in software aimed at helping people? Private equity firm Apax Funds announced this morning that it is combining three social impact firms to create a platform of sorts in a deal valued at $2 billion. To build this social good juggernaut, Apax went out and purchased EveryAction from

Who says there is no big money in software aimed at helping people? Private equity firm Apax Funds announced this morning that it is combining three social impact firms to create a platform of sorts in a deal valued at $2 billion.

To build this social good juggernaut, Apax went out and purchased EveryAction from Insight Partners and Social Solutions from Vista Equity Partners, two firms we often see involved in SaaS deals.

The plan is to combine the two firms with CyberGrants, a company that Apax acquired in June. With EveryAction, companies get a customer engagement platform focused on the needs of nonprofits. Instead of trying to get people to buy more stuff, the goal would be to increase engagement with donors. Social Solutions is a tool for gathering data on an organization’s activities and taking advantage of that data to coordinate service delivery and measure how well you are doing with your service goals.

Finally, CyberGrants is a corporate responsibility platform designed to help companies create programs for employees to volunteer in the community and “maximize the impact of corporate philanthropy.”

Erin Mulligan Nelson, CEO of Social Solutions sees combining the three companies as a way to accelerate their individual efforts as companies. “Joining forces will empower human services agencies in both the non-profit and public sectors to fully capitalize on the opportunities for digital transformation. Our expanded offerings and opportunities for product innovation will create real value for our clients, improve outcomes for the people they serve, and help them accelerate lasting social change,” she said in a statement.

While the three companies have a common theme of using software to help customers operate more efficiently in a social impact context, putting together three disparate companies into a single platform could prove challenging, even if the new company will surely have numbers in its favor.

Apax reports the combined companies will generate $200 million in revenue, involving 650,000 non-profits and half the Fortune 500, while coordinating an impressive 38 million donors and volunteers. That is certainly scale.

PE firms tend to be looking for deals in undervalued companies that they can build up and find missing value, and if that involves software aimed at helping charitable efforts, so be it. The fact that Apax bought these companies from other PE firms suggests that this is an area that these companies are watching.

Of the three companies involved only Social Solutions raised venture capital, according to Crunchbase data, raising $70 million including a $59 million investment from former Microsoft CEO Steve Ballmer in 2018. As is often the case with PE deals, these three companies are a bit older, with EveryAction founded in 1997, CyberGrants in 1999, and Social Solutions in 2006. Perhaps they could use modernizing or could benefit from additional investment from a company like Apax, which hopes by combining these three companies, it can be a force in this space.

Sometimes bigger is better. Sometimes it’s not. Time will tell if Apax can pull this off. The deal will be subject to normal closing conditions and is expected to close some time this quarter.

News: Baleon Capital closes first fund to provide capital infusion to healthcare startups

Baleon Capital will invest in pre-Series A and Series A companies focused on health and medical care in the United States.

Baleon Capital, a one-year-old venture capital firm started by investment veteran Jon Kaiden, closed its first fund to invest in pre-Series A and Series A companies focused on health and medical care in the United States.

Before starting the Miami-based firm, Kaiden was a founding member and principal of Sopris Capital, where he told TechCrunch his track record of internal return on revenue landed him in the top 95th percentile of all early-stage funds. Baleon is a mash-up of the names of Kaiden’s four children: Brooke, Allie, Leo and Nicole.

Though he did not disclose the fund amount, Kaiden did say he was targeting $100 million for the fund. He expects to initially be able to invest in between eight and 12 companies with $5 million to $10 million in check sizes. If he is able to get the $100 million, Kaiden plans for nearly three-fourths to go into initial investments and the rest for follow-on or new opportunities that come in.

Despite the pandemic, the past year was a “great environment to raise a fund,” he said. After running Sopris for 18 years, he thought it was time to raise a fund especially targeting the healthcare industry, which saw a boom.

“The pandemic tweaked a lot of the industry, especially virtual healthcare, and sped up a lot of things to be more efficient,” Kaiden said. “However, doctors are still among the slowest group to adopt technology.”

As a result, Baleon Capital will invest in companies building the new digital infrastructure for healthcare, aimed at reducing costs, improving access and solving inefficiencies that are hindering patient care. In addition to healthcare, the firm has identified opportunities in vertical SaaS, like finance and real estate.

Baleon’s first fund invested in three companies: Mantra Health, a digital mental health clinic on a mission to improve access to evidence-based mental healthcare for young adults; LifeLink, which is building infrastructure for modern patient engagement; and ClearStep, a care navigation platform leveraging artificial intelligence to match patients to the right provider based on their symptoms, insurance and location.

As healthcare settles into its new digital transformation, Kaiden sees an industry that will rely more heavily on data interoperability as electronic medical records and gleaning insights from big data will evolve. He expects that to help reduce costs without reducing patient satisfaction and provide better health outcomes.

“It’s always a good time in healthcare, and there will always be companies that are disruptive,” Kaiden said. “Healthcare is 18% of the country’s GDP — that is a huge part of our economy, and it is inefficient. That makes it ripe for entrepreneurs to disrupt it.”

 

News: Financial concierge startup Zeni banks $34M to show SMBs their finances in real time

Zeni’s AI-powered finance concierge platform offers bookkeeping, accounting, tax and CFO services, essentially becoming a back-end controller for startups.

Zeni, a Palo Alto fintech company providing real-time financial services data to venture-backed startups, raised $34 million in Series B funding led by Elevation Capital.

The new investment comes just five months after Zeni announced $13.5 million in a combined seed and Series A round. The company has now raised $47.5 million in total since it was co-founded in 2019 by twin brothers Swapnil Shinde and Snehal Shinde.

Elevation was joined in the new round by new investors Think Investments and Neeraj Arora, as well as existing investors Saama Capital, Amit Singhal, Sierra Ventures, Twin Ventures, Dragon Capital and Liquid 2 Ventures. As part of the investment, Ravi Adusumalli, founder and managing partner at Elevation Capital, will join Zeni’s board.

The Shinde siblings started the company after selling their last company, Mezi, a travel concierge, to American Express in 2018. Zeni’s AI-powered finance concierge platform offers bookkeeping, accounting, tax and CFO services, managing these for a flat monthly fee starting at $299 per month. Founders have real-time access to financial insights via the Zeni Dashboard, including cash in and out, operating expenses, yearly taxes and financial projections. They can also download the financial data in the “slice” that they want.

At the time of its seed/Series A round, the company was managing more than $200 million in funds each month, and that has ballooned to more than $500 million, CEO Swapnil Shinde told TechCrunch. Its customers range from pre-revenue startups to businesses generating more than $100 million in annual revenue.

In addition to the cash in and cash out analysis, the company also created a search function for transactions and spend and income trends on every customer and vendor, Snehal Shinde, chief product officer, said.

Zeni Dashboard. Image Credits: Zeni

Zeni experienced 550% revenue growth year-over-year, while the company’s customer base grew 375%, driven by referrals and organic growth, Swapnil Shinde said.

Despite the growth, the Series B came as a surprise to the siblings. The company was already “very well capitalized,” with a majority of the previous round still around, Swapnil Shinde said.

However, Zeni began receiving so many inbound inquiries that he said it was too exciting to pass on. Especially with the addition of Elevation Capital as an investor. Shinde said that was appealing because the firm was an investor in Paytm, and “knows how to partner and build unicorns.”

The new funding will be used to continue scaling and building the bookkeeping and accounting functions and to accelerate hiring, particularly in the engineering, sales and finance team verticals. Shinde expects to double or triple the finance team in the next year.

“As our customers scale through to their Series B, the more you can use our solution in real time to see what is happening with your finances, especially with startups and businesses having more of a remote workforce,” Swapnil Shinde added. “Zeni fits with that.”

Ash Lilani, managing partner at Saama Capital, one of Zeni’s earliest and largest investors, said he knew how big the total addressable market was — $200 billion — and how much these kinds of financial services were a giant pain point for startup companies.

“To know where you stand financially in real time is hard to do, usually, you get that information at month-end,” Lilani said. “I believe we have the opportunity to build a large company. Though Zeni is going after startups today, the small and medium markets can be leveraged. As they grow, Zeni will become their controller on the back end, while companies can just hire a CFO for the strategic decisions.”

 

News: Buildots raises $30M to put eyes on construction sites

Buildots’ technology automatically validates images captured by hardhat-mounted 360-degree cameras, detecting any gaps between the original design and what’s actually happening on construction sites.

One year after raising $16 million, construction technology company Buildots is back to claim another $30 million, this time in Series B funding.

Lightspeed Venture Partners led the round, with participation from previous investors TLV Partners, Future Energy Ventures and Tidhar Construction Group. This gives the company $46 million in total funding, Roy Danon, co-founder and CEO of Buildots, told TechCrunch.

The three-year-old company, with headquarters in Tel Aviv and London, is leveraging artificial intelligence computer vision technology to address construction inefficiencies. Danon said though construction accounts for 13% of the world’s GDP and employs hundreds of millions of people, construction productivity continues to lag, only growing 1% in the past two decades.

Danon spent six months on construction sites talking to workers to understand what was happening and learned that control was one of the areas where efficiency was breaking down. While construction processes would seem similar to manufacturing processes, building to the design or specs didn’t happen often due to different rules and reliance on numerous entities to get their jobs done first, he said.

Buildots’ technology is addressing this gap using AI algorithms to automatically validate images captured by hardhat-mounted 360-degree cameras, detecting immediately any gaps between the original design, scheduling and what is actually happening on the construction site. Project managers can then make better decisions to speed up construction.

“It even finds events where contractors are installing out of place and streamline payments so that information is transparent and clear,” Danon said. “Buildots also creates a collaborative environment and trust by having a single source telling everyone what is going on. There is no more blaming or cutting corners because the system validates that and also makes construction a healthier industry to work in.”

Buildots went after new funding once it was able to show product market fit and was expanding into other countries. The platform is being utilized on major building projects in countries like the U.S., U.K., Germany, Switzerland, Scandinavia and China. To meet demand, Buildots will use the new funding to continue that expansion; double the size of its global team with a focus on sales, marketing and R&D; and grow on the business side. Danon’s aim is “to get to the point where we are the standard for every construction site.” The company is also looking at areas outside construction where its technology would be applicable.

Tal Morgenstern, partner at Lightspeed Venture Partners, said he keeps an eye on graduates of the Israel Defense Forces, where the three Buildots founders came from. However, in the case of this company, Lightspeed actually passed on both the seed and Series A.

Morgenstern admits the decision was a mistake, but at the time, he thought the technology Buildots was trying to build “first, impossible and second, I knew construction was difficult to sell into.” He felt that Buildots, with such a premium product, would have a challenge selling to a low-margin industry that was late to adopt technology in general.

By the time the Series B came round, he said Buildots had solved both of those issues, proving that it works, but also that customers were adopting the technology without much sales and marketing. In addition, other solutions in construction tech were still relying on lasers or people to manually input or tap photos.

“Buildots is seamlessly capturing images and providing a level of insights that is so high, and that is why the company is able to command the price structure they have and are receiving interesting commercial results,” Morgenstern said.

Walking around today’s construction site, Danon said the adoption of technology is enabling Buildots to move quickly to build processes for the industry.

As such, the company saw more than 50% growth quarter over quarter over the past year in three of the countries in which it operates. It is now working with four of the top 10 construction companies in Europe and around the world.

“We did a good job selling remotely, but now we need local offices,” Danon added. “We are also sitting on piles of data from construction sites. We learn from one project to another and want to look for the challenges where data will help make a financial impact. It’s a natural next step for the company.”

 

News: FullStory raises $103M at a $1.8B valuation to combat rage clicks on websites and apps

Even with all the years of work that have been put into improving how screen-based interfaces work, our experiences with websites, mobile apps, and any other interactive service you might use still often come up short: we can’t find what we want, we’re bombarded with exactly what we don’t need, or the flow is just

Even with all the years of work that have been put into improving how screen-based interfaces work, our experiences with websites, mobile apps, and any other interactive service you might use still often come up short: we can’t find what we want, we’re bombarded with exactly what we don’t need, or the flow is just buggy in one way or another.

Now, FullStory, one of the startups that’s built a platform to identify when all of the above happens and provide suggestions to publishers for fixing it — it’s obsessed enough with the issue that it went so far as to trademark the phrase “Rage Clicks”, the focus of its mission — is announcing a big round of funding, a sign of its success and ambitions to do more.

The Atlanta-based company has closed a Series D round of $103 million, an oversubscribed round that actually was still growing between me interviewing the company and publishing this story (when we talked last week the figure was $100 million). Permira’s growth fund — which has previously invested in other customer experience startups like Klarna and Nexthink — is leading this round, with previous investors Kleiner Perkins, GV, Stripes, Dell Technologies Capital, Salesforce Ventures, and Glynn Capital also participating.

FullStory, which has raised close to $170 million to date, has confirmed that the investment values the company at $1.8 billion.

Scott Voigt, FullStory’s founder and CEO, tells me that FullStory currently has some 3,100 paying customers on its books across verticals like retail, SaaS, finance, and travel (customers include Peloton, the Financial Times, VMware and JetBlue), which collectively are on course to rack up more than 15 billion user sessions this year — working out to 1 trillion interactions involving clicks, navigations, highlights, scrolls, and frustration signals. It says that annual recurring revenue has to date risen by more than 70% year-on-year.

The plan now will be to continue investing in R&D to bring more real-time intelligence into its products, “and pass those insights on to customers,” and also to “move more aggressively into Europe and Asia Pacific,” he added.

FullStory competes with others like Glassbox and Decibel, although it also claims its tools have more presence on websites than its three biggest competitors combined.

Working across different divisions like product, customer success and marketing, and engineering, FullStory uses machine learning algorithms to analyze how people navigate websites and other digital interfaces.

If approved as part of the “consent gate” you might encounter because of, say, GDPR regulations, it then tracks things like when they are clicking in areas excessively over a short period of time because of delays (the so-called “rage clicks”); or when a click leads nowhere because of, for example, a blip in a piece of JavaScript; or when a person is just scrolling or moving their mouse or cursor or finger in a frustrated (fast) way — again with little or no subsequent activity (or activity from the customer ceasing altogether) resulting from it. It doesn’t use — nor does it have plans to — use eye tracking, or anything like sentiment analysis around data that customers put into, say, customer response windows.

FullStory then packages up the insights that it does collect into data streams that can be used with various visualization tools (having Salesforce as a strategic backer is interesting in this regard, given that it owns Tableau), or spreadsheets, or whatever a customer chooses to put them into. While it doesn’t offer direct remediation (perhaps an area it could tackle in the future), it does offer suggestions for alternative actions to fix whatever problems are arising.

Part of what has given FullStory a big boost in recent times (this round is by far the biggest fundraise the company has ever done) is the fact that, in today’s world, digital business has become the centerpiece of all business. Because of Covid-19 and the need for social distancing that have taken away some of the traffic of in-person experiences like going to stores, organizations that have natively or built experiences online are seeing unprecedented amounts of traffic; and they are now joined by organizations that have shifted into digital experiences simply to stay in business.

All of that has contributed to a huge amount of content online, and a big shift in mindset to making it better (and in the most urgent of cases, even more basically, simply usable), and that has resulted in the stars aligning for companies like FullStory.

“The category was so nascent to begin with that we had to explain the concept to customers,” Voigt told me of the company’s early days, where selling meant selling would-be customers on to the very idea of digital experience insights. “But digital experience, in the wake of Covid-19, suddenly mattered more than it ever has before, and the continued amount of inbound interest has been afterburner for us.” He noted that demand is increasing among mid-market and enterprise organizations, and something that has also helped FullStory grow is the general movement of talent in the industry.

“Our customers tend to take their tools with them when they change their jobs,” he said. Those tools include FullStory’s analytics.

The evolution of bringing more AI into the world of basically structuring what might otherwise be unstructured data has been a big boost to the world of analytics, and investors are interested in FullStory because of how it’s taken that trend and grown its business on top of it.

“We are very excited to partner with the FullStory team as they continue to expand and build a truly extraordinary technology brand that improves the digital experience for all stakeholders,” said Alex Melamud, who led the transaction on behalf of Permira Growth, in a statement.

“Traditional analytics have been upended by AI- and ML-enabled approaches that can instantly uncover nuanced patterns and anomalies in customer behavior,” said Bruce Chizen, a senior advisor at Permira, in a statement. “Leveraging both structured and unstructured data, FullStory has rapidly established itself as the market and technology leader in DXI and is now the fastest-growing company in the category and the de facto system of record for all digital experience data.” Chizen is joining the FullStory Board with this round.

News: Suma Brands raises $150M to acquire more third-party brands for its Amazon roll-up play

Amazon has become a lynchpin in the e-commerce machine over the years in part because it’s a site we consumers can visit to buy just about anything we want — sold either by Amazon or its 5 million+ third-party merchants — and easily get it delivered to our homes. But the system is not completely

Amazon has become a lynchpin in the e-commerce machine over the years in part because it’s a site we consumers can visit to buy just about anything we want — sold either by Amazon or its 5 million+ third-party merchants — and easily get it delivered to our homes. But the system is not completely efficient, and today, one of the startups looking to build more economies of scale is announcing some funding that it will use to roll up and consolidate some of these third-party merchants.

Suma Brands, which buys up what it sees as some of the more interesting and successful brands selling and fulfilling their orders via Amazon, has picked up $150 million in funding, a round led by Pace Capital and Material alongside a credit facility led by i80 Group.

As with other roll-up plays that have raised huge sums of money, the majority of Suma’s round is coming in the form of debt, which will be used for acquisitions, with a smaller equity tranche to continue building out its tech stack and core business. In this case, equity is $12.5 million and the rest is in debt. Valuation currently is not being disclosed.

Roll-up plays are rolling into town at a very fast pace at the moment — we’ve written about many of them raising money, including Elevate, Thrasio; HeydayThe Razor Group; BrandedHeroesSellerXPerchBerlin Brands Group (X2); Benitago; Latin America’s Valoreo and Rainforest and Una Brands out of Asia.

In all of these, the premise is the same: Amazon has built its business on economies of scale, but that efficiency has not necessarily been played out at the marketplace level, where you still see the vast majority of sellers working as independent companies, facing all of the challenges they might face as they grow — these include the need for more sophisticated tech tools to manage areas like marketing, analytics, and supply chains; more buying power with suppliers; capital to grow; and more strategic talent succession plans.

This is where the roll-up plays step in: they provide a route for marketplace founders to potentially exit their businesses without giving them up, by giving them a chance to grow under the wing of a company looking to build the brands alongside others they are acquiring.

In the case of Minneapolis-based Suma, the startup is being led by co-founder Andrew Savage, who has a very interesting insight into the world of retail, and specifically online retail, by way of his background.

It includes years with Amazon itself, where he led teams in categories like toys, and also spearheaded the company’s push into targeting university students. Prior to that, he also worked for years at Target — where he was instrumental in building Target.com — and Best Buy.

Sidenote: these are also two Minneapolis companies, and one reason why this is such an interesting city in which to found an e-commerce startup.

He also spent time as an executive at hip, independent e-commerce company Dolls Kill, meaning he understands both the pain points of being a relatively small and indy brand, as well as the big behemoth that works to sell them on their platforms.

His two co-founders equally have interesting track records: Matt Salzberg was the founder and former CEO of Blue Apron; and Jon Dussel was the former CFO of Dolls Kill.

Savage told me he came to found Suma because he could see a clear opening to build a company to bridge the gap between small merchant and big platform better than it is today. While that might well spell economies of scale and economic opportunity — the two big motivators for other roll-up players — it feels a little more like Suma may be approaching that challenge from the operational perspective.

This will include helping manage supply chains and sourcing, running performance marketing, brand building and running multiple channels across Amazon and other properties, and providing working capital, Savage said.

“We vetted a number of potential investments in the space, but hadn’t found the right team until we talked to Suma,” said Jordan Cooper, General Partner at Pace Capital, in a statement.

“Winners are going to be exceptional operators, and the Suma team from the co-founders on down have e-commerce operations in their DNA. They’re a tested team who have proven their ability to rapidly scale e-commerce businesses,” Asher Hochberg, Managing Director at i80 Group, added.

Suma, like others in this space, declines to say how many brands it has acquired so far, nor will it spell out too many specifics on its strategy of what it wants to pick up. Some of the companies in its stable today include a children’s footwear brand Lone Cone, and Turmaquik, a turmeric supplement company.

Savage tells me that the plan is not necessarily to buy up brands and give founders an easy exit, or even to tie every star to Amazon’s rise: some who want to join Suma may stay on, and some brands might find D2C to be a better or supplementary option to Amazon. There is no winner-takes-all, nor is there a one-size-fits-all approach, simply because it’s too big, and so many brands need help.

“This is a $300 billion space, and growing at double digits,” said Savage. “It’s an ocean. And there are at least a couple of hundred thousand brands with more than $500,000 in revenues worldwide. It’s easy to get lost in that.”

Refreshingly, in a market full of a lot of the same stuff — Amazon is overpopulated with sellers who all buy the same wholesale goods, and it’s somewhat depressing when you realize that choice isn’t nearly as big as it looks on first glance — Suma is looking to forge something different simply by focusing on other things.

“What gets out of bed is not creating financial instruments but a stable that makes people feel better,” said Savage. “The thing that differentiates us is that we are very founder-focused and spend a lot of time considering this before buying a business. We are really trying to avoid the me-too businesses.”

I’ve spoken with a number of founders in this field, and one of my biggest takeaways has definitely been that it may not be a winner-take-all-market if the space is a long term winner, because each company is bringing something unique to the table that gives them a new angle for success.

The “if” in that premise is still debatable, however, not least because Amazon could easily also become a consolidator, and might be best one of all in terms of operational expertise and financial muscle.

Savage said he wasn’t sure if Amazon would ever look to repeat the roll-up approach itself, but it’s an area to watch. If the strategy is strong enough for Amazon to try to replicate itself, it’s a pretty strong signal that it is one to continue pursuing (even with that extra competition in the field).

News: ByteDance rival Kuaishou is shutting down controversial app Zynn

Kuaishou Technology, a Chinese firm perceived as a ByteDance rival by many, said on Wednesday it will shut down its controversial short video app Zynn later this month. The app was only available in the U.S. The firm, which last month said it had amassed 1 billion monthly active users, didn’t offer an explanation for

Kuaishou Technology, a Chinese firm perceived as a ByteDance rival by many, said on Wednesday it will shut down its controversial short video app Zynn later this month. The app was only available in the U.S.

The firm, which last month said it had amassed 1 billion monthly active users, didn’t offer an explanation for why it was shutting down the app, which was mired in controversy ever since it launched in May last year.

An investigation last year found that Zynn was paying users to watch videos to superficially improve its ranking on the US iOS App Store. The app, a clone of TikTok, was also pulled from the Play Store after reports found the platform was riddled with videos that were stolen from other apps. It was then pulled from the Apple App Store following similar complaints.

In a statement, a Kuaishou spokesperson said the decision to stop services of Zynn won’t affect users in any other market. Kuaishou also operates similar apps in many other markets including South America (as Kwai) and the South Asian region (as Snack Video).

“Our strategy for the international markets remains unchanged,” said the firm, which raised $5.4 billion in its Hong Kong IPO early this year.

Zynn app failed to attract users in the U.S. The app had just 200,000 monthly active users in June of this year, down from about 3 million in August 2020, according to mobile insight platform App Annie (data of which an industry executive shared with TechCrunch.)

News: Naspers leads $11M investment in South African insurtech Naked

South African insurtech platform Naked has raised $11 million in a Naspers-led round. Existing investors, Yellowwoods and Hollard, also participated in the funding round. This comes barely two weeks after Naspers, via its early-stage tech investment vehicle Naspers Foundry, invested in another South African insurtech platform Ctrl in its $2.3 million Series B round. Naked’s

South African insurtech platform Naked has raised $11 million in a Naspers-led round. Existing investors, Yellowwoods and Hollard, also participated in the funding round.

This comes barely two weeks after Naspers, via its early-stage tech investment vehicle Naspers Foundry, invested in another South African insurtech platform Ctrl in its $2.3 million Series B round.

Naked’s latest investment is a Series A round. According to a statement released by the company, Naspers Foundry invested $8.3 million as the lead investor — the largest the Naspers investment vehicle has made so far.

Founded in 2018 by Alex Thomson, Sumarie Greybe, and Ernest North, Naked is a digital insurance platform covering cars, content, homes, and standalone items. The company says it employs artificial intelligence to create new processes and experiences for its customers.

Africa’s insurance sector is worth over $68 billion in annual gross written premiums. South Africa makes up 70% of this market, with an annual gross written premiums market of over $47 billion. However, only a fraction of personal insurance is sold without human intervention.

But the pandemic has changed the way South African millennials want to consume insurance products these days. While 28% of South African millennials are in the market for insurance, 60% of them would prefer communicating with their insurer via the internet. For insurers, this online automation can reduce the cost of a claims journey by 30%.

This is where Naked comes in. On the platform, customers are presented with lower costs than they would ordinarily see in traditional insurance platforms, and more importantly, they have more control of their insurance experience.

“They can get a final insurance quote for their home, its contents, their standalone items or their car in less than 90 seconds, and switch or pause their cover, all online, without speaking to a contact center agent,” said the company in a statement.

Naked is built so that it does not plug into other insurance products in the market. Instead, the company built the product from the ground up, which allows it to add features that resonate with its customer base. One such feature allows customers to pause their car premiums whenever they’re not driving during the lockdown. It is methods like this that Naked takes into consideration to improve insurance experiences for consumers.

“Our ambition is to build insurance that people love by offering an experience that is affordable, convenient, and transparent. We have come a long way since our launch in 2018 towards meeting these goals…,” said co-founder Alex Thomson. “But this is just the start of our journey to reinvent insurance. We are excited to have an investor of Naspers Foundry’s caliber on board to work with us as we expand our team, continue to invest in the technology that puts customers in control, meet the insurance needs of a growing portion of the SA market and enter into international markets.” 

This investment is Naspers’ seventh since launching its Foundry arm back in 2019. The $100 million fund targets South African early-stage tech companies looking to “address big societal needs.” 

Asides from the aforementioned insurtech platform Ctrl and now Naked, Naspers has also invested in five other South African companies — mobility company WhereIsMyTransport; edtech platform The Student Hub; food tech startup Food Supply Network; agritech company Aerobotics; and home service platform SweepSouth. 

“We’re excited to support Naked in their journey of pioneering a new generation of insurance, giving consumers access to convenience, control, and savings with its end-to-end digital processes. This fits in with our focus of backing purpose-driven technology businesses. Investing in Naked is consistent with the portfolio we’ve built to date, and Naspers Foundry’s healthy pipeline of potential future investments,” head of Naspers Foundry Fabian Whate said in a statement.

News: Humanity launches ‘slow your aging’ app in the UK and raises $2.5M more from health investors

More than one smartphone app startup has tried to convince you that by using their app you will miraculously stave off the ravages of age and flab. All I need to do is flip open my phone and real off a few: Gyroscope, MyFitnessPal, Welltory, ActivityTracker, SleepCycle. The list goes on. You name it, there’s

More than one smartphone app startup has tried to convince you that by using their app you will miraculously stave off the ravages of age and flab. All I need to do is flip open my phone and real off a few: Gyroscope, MyFitnessPal, Welltory, ActivityTracker, SleepCycle. The list goes on. You name it, there’s a health app for it.

But today you get to download and kick the tires on a new app that is laying claim to be able to literally slow your aging.

We already covered the $2.5m seed funding of Humanity late last year.

But now you can actually download the iPhone app here in the UK. And Android version is on its way. The app will launch in the US/Worldwide on the first week of September. A free version is available, but a premium subscription service of £30 a year will enable users to continuously monitor their biological age and the actions that are affecting it.

More on the app in a moment.

Meanwhile, the UK-based startup is clearly making waves amongst investors. It has now raised yet another seed funding round, this time totalling $2.5 million, from 65 health-tech and consumer-tech investors, taking its total raised to $5m.

Investors include Alex Tew and Michael Acton-Smith (Co-Founders of Calm), Taavet Hinrikus (Co-Founder of Wise, founding team of Skype), Robin Thurston (Co-Founder of MyFitnessPal), One Way Ventures, 7Percent, Seedcamp, Breega, Alexander Ljung (CEO and Co-Founder of Soundcloud) and legendary health tech investor Esther Dyson.

Humanity founders Pete Ward and Michael Geer have also built a ‘Science Advisory Board’, which includes Kristen Fortney, Co-Founder of BioAge, George Church who helped map the Human Genome and a Professor at Harvard Medical School, and Aubrey de Grey, a pioneer of the aging science movement and Chief Science Officer at the SENS Research Foundation, amongst others.

Humanity has also been playing out the invite-only strategy famously employed by startups like Clubhouse to keep the hype building and users bet-testing the app, reaching over 10k users, with, they say, a ‘waiting list of tens of thousands’.

This strategy seems to have paid off. The startup says it’s now reached the maximum number of users on TestFlight (Apple’s app testing facility) and has steadily grown its waiting list.

Ward and Geer teamed up over two years ago with the idea of creating an app that could monitor your biological age and give out hints and tips on how to slow and – they say – possibly even reverse it. This is not beyond normal science.

Humanity app

Humanity app

We are regularly told by doctors say that you can extend your lifespan just by doing simple things like exercising regularly, cutting out fast food, and all that jazz. But what Ward and Geer realized was that you could take standard advice like “walk more” or “drink more water” and actually benchmark this stuff to a real-world population.

So the secret sauce in the Humanity app, isn’t that it will tell you you’ve aged a little slower because you’ve had 8 hours sleep, or similar. It’s because other people of your age and health profile did that, and you’re being compared to that real-world data. Because Humanity isn’t drawing on data of other users of its app, but on a scientific database.

Geer said: “Aging remains the leading cause of disease globally, but few people make the connection between aging and their overall health – and most feel ultimately helpless to tackle it. Being ‘healthy’ is quite a nebulous term as it is completely personal to each individual. Being able to monitor your aging provides a truly holistic indicator of health, which could help reduce your probability of disease and extend the healthy lives of millions.”

Humanity’s appearance is good timing. The Coronavirus pandemic appears to have cut life expectancy in England and Wales by one year, sending it back 10 years with the poor hardest hit.

So how does the app actually work?

Humanity bills its app as being like the Waze traffic app, enabling you to navigate your way to a healthier lifestyle and “add years of fully functional, healthy life”, thus increasing your healthy lifespan, rather than living a reasonably long but unhealthy life.

After registering on the app, it takes you through the basics such as age, weight, and links into Apple Health.

You then get a ‘Humanity Score’ (H Score) in the app under one of four key categories – ‘movement’, ‘mind’ ‘recovery’, and ‘nutrition’. The higher the H Score the more likely you will see a slowing or reversal in the aging process over time, says the startup.

The app also connects with sensors in your smartphone and wearables to track data points such as heart rate, step rate, sleep, and activity. This then feeds into your ‘rate of aging’ and ‘biological age’, analyzing your profile and comparing it to data from the UK Bio bank.

Here’s where Humanity’s ‘special sauce’ lies.

The startup says it’s built algorithms validated against real-world outcomes from longitudinal biobanks (including the UK Biobank). These biobanks take anonymized data about the factors that affect a population’s lifespan. Humanity says it is drawing on in-house research and development alongside collaborations with the teams at Gero and Chronomics, and partnerships with companies like Illumina and Eurofins.

Using all of this data, the app then makes suggestions, such as to go for a run, meditate, get more sleep etc. Admittedly any app could do this, but the fact that it is drawing on actual real-world data about what may really affect your lifespan, does instill a great deal more confidence.

But what about the matter of privacy?

Geer told me over a call: “Health data is obviously some of the most personal data you can have. So we try to keep as much of that data actually just locally on your phone. We’re running our algorithms mostly on your phone. Some of that stuff will have to pass back to our servers, but that’s encrypted both at rest and when it’s in movement. The little that we do take to our servers we keep strictly secure.”

But, is Humanity trying to replace other health apps? What’s the long game here?

Ward told me: “We’re not trying to replace Calm or My Fitness Pal etc. They’re actually part of the ecosystem that we will work with. What we want to do is really be a beacon for this way of using data, to actually know if people are getting healthier. Previously, this kind of health data was only available to study participants in universities, but we want everyone to be able to have this ability to compare their lifestyle to this real-world data. And we think this approach is far more powerful than the old-school ‘health app’ model of just telling you to ‘walk 10,000 steps’ or whatever.”

But there is a wider issue here. Are we looking at a new opportunity for startups to leverage this global Bio Bank data, which is generally held by academic institutions in almost every country? Perhaps we shall see more startups emerge, trying to use it in similar ways to the Humanity startup. Times, as is usually the case, will tell. However, at least for now, Humanity has the jump on that potential competition.

News: Autonomous cargo drone startup Elroy Air lands $40M Series A

Elroy Air has raised a $40 million Series A, including financing from Lockheed Martin’s venture capital arm, to ramp up the build, testing and validation of its inaugural autonomous cargo drone. The funding round saw participation from Marlinspike Capital and Prosperity7, as well as existing investors Catapult Ventures, DiamondStream Partners, Side X Side Management, Shield

Elroy Air has raised a $40 million Series A, including financing from Lockheed Martin’s venture capital arm, to ramp up the build, testing and validation of its inaugural autonomous cargo drone.

The funding round saw participation from Marlinspike Capital and Prosperity7, as well as existing investors Catapult Ventures, DiamondStream Partners, Side X Side Management, Shield Capital Partners and Precursor Ventures. This latest round brings Elroy’s total raised to $48 million to date.

The four-and-a-half-year-old company was founded by David Merrill and Clint Cope. “We started the company with this dual insight that the enabling technology was within reach, was here to build larger drones […] and that there would be a lot of useful things that larger systems can support,” Merrill said in a recent interview with TechCrunch.

Elroy is focused on building what Kofi Asante, Elroy’s VP of strategy and business development, called “a dual-use system,” fit for both the defense industry and the commercial market. Elroy’s flagship autonomous cargo aircraft, Chaparral, is designed to fly at a 300-mile range, carry 300-500 pounds of cargo, and have automated flying and cargo handling capabilities. The idea is to minimize the need for humans not only in the pilot seat, but on the ground, manually loading and unloading payload.

Unlike other competitors in the space, Chaparral is hybrid electric, equipped all-electric propulsors, a generator, and a turboshaft jet engine. The generator is used mostly during take-off and landing, both of which are energy-intensive, as a way to boost power to the rotors.

Its propulsion system is a key differentiator between Elroy Air’s product and companies that are building eVTOL air taxis, like Joby Aviation. “What we heard from our customers was that they needed longer routes, longer range missions than what today’s battery technology can actually support,” Elroy Air CEO David Merrill said. “It became pretty clear to us that we needed an alternative supply side power plan on a vehicle.”

Another differentiator from other VTOLs is that Elroy has decoupled the cargo pod from the drone via the automated cargo handling function. Through a combination of GPS and sensing technology, the drone can pick up and drop off cargo automatically. The design is meant to maximize efficiency and free up humans for packing and staging the cargo pods.

This functionality could be especially useful in defense settings, as missions like resupply for soldiers can sometimes pose risks to pilot, crew, and cargo handlers.

“More generally, there’s this interest across the national security community of having logistics be more nimble and automated, and this shift from big expensive aircraft that you don’t have very many of to smaller, lower cost aircraft that you can have more of,” Merrill said.

The company has a handful of next steps it needs to take before it starts flying for either defense or commercial customers. On the defense side, Elroy will begin flight validation with the U.S. Air Force and the Navy next year. The company has a Phase 3 Small Business Innovation Research contract with the Air Force via Agility Prime, part of which is doing flight operations with these next systems.

The company would likely be able to start commercial operations abroad, in places that have different regulatory standards, before going through the full certification process here in the U.S. with the Federal Aviation Administration. It will need to achieve both a Type Certificate and a Part 135 certificate before it can start building out its business domestically. They’re staying flexible about potentially selling Chaparral systems to companies that want to operate the network themselves, and operating Chaparral systems itself as a full-service cargo airline.

“The space of drone delivery has risen up quickly with small last mile drones […] and now this new chapter is opening for middle mile [cargo delivery],” Merrill said. “We’re excited that the technology is ready to support this, customers want it, and we’ve built a team and assembled the funds to go after it.”

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