September 15, 2021 – Page 4

News: Sustainable e-commerce startup Olive now ships beauty products, in addition to apparel

September 15, 2021
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Earlier this year, a startup called Olive launched its new shopping site and app with the goal of making e-commerce more efficient, convenient, and sustainable by offering a way for consumers to aggregate their orders from across retailers into single shipments that arrive in reusable packaging, not cardboard. If items need to be returned, those same packages are reused. Otherwise, Olive will return to pick them up. Since its February 2021 debut, the company has grown to include over 100 retailers, predominately in the fashion space. Today, it’s expanding again by adding support for another 25 beauty retailers.

Launch partners on the new effort include brands like Supergoop!, Kora Organics, Pai Skincare, Erno Laszlo, Jecca Blac, Sahajan, Clark’s Botanicals, NuFace, Purlisse, Cover FX, LYS Beauty, SiO Beauty, Peace Out Skincare, Koh Gen Do, Julep Beauty, In Common Beauty, Indie Lee, Glow Recipe, Ursa Major, RMS Beauty, Ceremonia, Sweet Chef, Follain, and BalmLabs.

They join Olive’s numerous apparel and accessory retailers like Adidas, Superga, Rag & Bone, Birdies, Vince, Goop, Khaite, and Veronica Beard, among others.

To support the expansion, Olive also developed a new set of reusable packaging that has protective elements for more damageable items. While before, the company had offered a variety of packages like soft-sided garment bags and various sizes of more rigid containers (see below), it’s now introducing its own alternative to the air bubble strips you’ll find in most Amazon boxes these days. Olive’s version is integrated into its reusable packaging and can be easily deflated by the customer when it’s time to return the package at pickup.

Image Credits: Olive, founder Nate Faust

The idea for Olive is a timely one. Due to the Covid-19 pandemic, e-commerce adoption has soared. But so has consumers’ guilt. Multiple packages land on doorsteps every week, with cardboard and plastic to recycle — if that’s even available in your area. Delivery trucks — Amazon, UPS, FedEx, and others — are now a daily spectacle on every city street. Meanwhile, market leaders like Amazon and Walmart seem largely interested in increasing the speed of delivery, not necessarily the efficiency and sustainability. (Amazon allows shoppers to pick an Amazon Day delivery, for consolidated shipments, but it’s opt-in.)

Olive founder Nate Faust says he was inspired to build the company after realizing how little interest there was from larger e-commerce players in addressing some of the inconveniences and inefficiencies in the market. Faust had previously served as a vice president at Quidsi (which ran Diapers.com and Soap.com and sold to Amazon), then co-founder and COO at Jet, which was acquired by Walmart for $3.3 billion. Before Olive, he was a senior vice president at Walmart.

After some soul searching, he realized he wanted to build something in the e-commerce space that was focused more on the social and environmental impact, not just on driving growth and consumption.

Image Credits: Olive

“I had an epiphany one evening when taking out the trash and recycling,” Faust explains. “It’s pretty crazy that we’re this far into e-commerce and this is the status quo delivery experience — all this waste, which is both an environmental issue and a hassle for consumers,” he says. “And the bigger issue than the packaging is actually the fact that the majority of those packages are delivered one at a time, and those last-mile emissions are actually the biggest contributor of carbon emissions in the post-purchase e-commerce supply chain.”

Consumers may not think about all the issues, because many of them are hidden, but they do struggle in other ways beyond dealing with the waste. Returns are still a hassle — so much so, that Amazon now allows customers to go to Kohl’s where it’s partnered on in-store return kiosks that also help the brick-and-mortar retailer increase their own foot traffic.

Plus, consumers who shop from different sites have to set up online accounts over and over, entering in addresses and payment information many times, which is an annoyance. Olive offers the convenience of an Amazon-like one-stop-shop experience on that front.

Meanwhile, Olive addresses the return issue by allowing consumers to simply place their unwanted items back in Olive’s packaging then leave them on their doorstep or with the building’s doorman for return. It works with both the USPS and a network of local carriers to serve the customers in its current footprint, which is about 100 million U.S. consumers on both coasts.

While customers don’t have to deal with packaging, it hasn’t been entirely eliminated from the equation at this point. Olive today partners with retailers who ship packages to its own west coast and east coast warehouses, where they repackage them into the reusable containers to deliver to customers. Right now, that means Olive is responsible for the recycling issues. But it’s working with its brand partners to have them pack orders directly into the reusable packaging from the start — before shipping to Olive’s consolidation warehouses for delivery. Today, it has a few retailers on board with this effort, but it hopes that will eventually expand to include all partners.

The company generates revenue on an affiliate commission model, which works for now. But over time, it may need to evolve that business model over time, as its customer base and partnerships grow. At present, around 10,000 consumers have used Olive, ahead of any large-scale marketing and customer acquisition efforts on the startup’s part.

For now, New York-based Olive is growing its business by way of a fundraise of around $15 million from investors including Invus, Primary Venture Partners, and SignalFire.

News: SmarterTravel sheds HopJump name, begins a new journey with $9.5M round

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SmarterTravel provides personalized travel recommendations and targeted travel content.

Travel startups continue to rake in venture capital dollars as more people become comfortable traveling amid the global pandemic. The latest is SmarterTravel, which brought in $9.5 million in Series B funding co-led by Link Ventures and Second Alpha, with existing investors also participating.

In addition to the fundraise, the company, a provider of personalized travel recommendations and targeted travel content, announced its name change from HopJump, which reflects the company’s renewed vision of providing an informative online travel experience, CEO Jordan Staab told TechCrunch.

Jordan Staab, CEO of SmarterTravel. Image Credits: SmarterTravel

SmarterTravel has 7 million email newsletter subscribers and uses proprietary artificial intelligence fixes to give customers travel information and discounts. The company writes articles on every facet of travel to inform customers, especially now with airlines, hotels and countries placing certain restrictions on travel.

“The travel consumer is changing how they absorb information,” Staab said. “The consumer is coming to us instead of visiting 20 websites before they book. Before, you might have combed through reviews, but now you just want an expert to tell you, and that is what we are.”

HopJump was started in 2018 by Staab as a digital marketing agency helping big brands with user acquisition campaigns. As it was building up to an initial public offering, Staab said the company wanted to move into building its own brand and saw an opportunity in travel, which accounts for a big market — 10% of global gross domestic product, he added.

The company went on to provide hotel discount travel prices to consumers but found it to be challenging. There are a lot of nuances and different approaches for offering four-star hotel rooms for two-star prices and bundling tactics, Staab explained.

“We fell in love with uncomplicating the process,” he said. “Consumers just want a good price from a company they trust, and that is what we set out to solve.”

In January 2020, the company launched its first product and had 60 members join in the first few months, but then the global pandemic hit. Suddenly, HopJump went from managing rapid growth to managing how the company might shut down.

Headout raises $12M, plans to hire 150+ people as domestic travel rebounds

Still eager to stay in travel, the company pivoted back to marketing so it could continue examining the travel industry, he said. While the company was figuring out its next move, Staab said folks at SmarterTravel were helpful to them, and when he heard that its parent company, TripAdvisor, was needing to make layoffs, and that division was going to be let go, he decided to purchase that asset along with seven others, including Airfarewatchdog, Family Vacation Critic and Oyster. The deal closed in 2020.

Lisa Dolan, managing director at Link Ventures, said that SmarterTravel’s growth was one of the drivers of her firm’s investment. When no one was traveling due to COVID, the company acquired travel companies and made it through the pandemic while other startups in the space were struggling.

She also cited its strong revenue-generating business on the email side and that it capitalized on the fact that even in the pandemic, people were conducting web searches for car rentals, things to do in certain cities and looking for vacation inspiration.

SmarterTravel is going after a U.S. travel and tourism industry valued at $580.7 billion in 2019. It is also not the only one to gain investor attention recently. For example, just over the past month companies like Thatch raised $3 million for its platform aimed at travel creators, travel tech company Hopper brought in $175 million, Wheel the World grabbed $2 million for its disability-friendly vacation planner and Elude raised $2.1 million to bring spontaneous travel back to a hard-hit industry.

Meanwhile, the funding will drive SmarterTravel’s aim to grow rapidly in terms of getting its name out there, building new travel products and hiring key staff. The company already has 50 people, but needs more, Staab said.

“Travel has had a tough couple of years, but some pockets of it are back, and we are seeing that,” he added. “In a year that should have been a bad year, our growth has been good. We were up eight times in revenue in the past 12 months. We are growing, profitable and have extra funding to lean into the growth. It is not going to be easy growth, but we are well-positioned to understand how to do it.”

Even amid the pandemic, this newly funded travel startup is tackling the stodgy timeshare market

News: Gravity is launching an indoor charging hub in NYC with plans to scale

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Electric vehicle fleet and infrastructure startup Gravity thinks it has cracked the code for urban EV charging infrastructure. The company, which was founded in February this year, announced its construction project to convert an indoor parking garage in the middle of Manhattan into a public EV fast charging hub. When the 29-space garage on 42nd

Electric vehicle fleet and infrastructure startup Gravity thinks it has cracked the code for urban EV charging infrastructure.

The company, which was founded in February this year, announced its construction project to convert an indoor parking garage in the middle of Manhattan into a public EV fast charging hub. When the 29-space garage on 42nd Street, which Gravity is leasing from real estate firm Related Companies, opens in within a few weeks, it will be the island’s first dedicated EV charging space. Based on Gravity’s plans to scale, it won’t be the last.

“We’ll probably see five to ten fast charging sites of different capacity in Manhattan over the next six months or so,” Moshe Cohen, Gravity’s CEO and founder told TechCrunch. “We’ve gone with Con Ed to dozens of sites in the five boroughs. We’ve surveyed the power grid and have plans to scale because it doesn’t work as a one-off. It works with scale, with coverage areas.”

Finding a place to park your car in New York City is a nightmare in and of itself. Finding a park and a charge for your EV is like finding a unicorn, and probably an expensive unicorn at that. Most of NYC’s EV charge points are behind the literal paywalls of parking garages, where you might find one or two Blink or EV Connect chargers nestled into a sea of ICE vehicle parking spaces. With Gravity’s hub, parking is free while cars are being charged. The only cost is that of electricity.

Gravity is not the first to recognize the problem of charging electric vehicles in an urban core. Electric mobility company Revel, first known for its shared e-mopeds around New York City, opened the city’s first public fast charging hub in an outdoor lot in Brooklyn this past June. Con Edison, New York’s electric utility company, has supported both initiatives with its electric vehicle charging incentives and rewards.

For Gravity’s site at Manhattan Plaza, the company worked with Con Ed to pull spare capacity power from two separate utility rooms on 42nd Street and Ninth Avenue, bringing in around 2,400 amps of power, which Cohen says is extremely rare to have condensed in one place in any city, let alone New York.

Cohen said he spent a long time location-scouting before choosing this as Gravity’s first spot, and proximity to power wasn’t the only game changer here. The site has its own dedicated entrance off 42nd Street and falls right between Ninth and Tenth Avenues, which is not only close to Times Square and the heart of the city, but also to the Lincoln Tunnel which provides access to and from New Jersey.

“Our vision is we are bringing infrastructure to all the places that cars are right now, so if you’re in our coverage area, you should never have to worry about charging your vehicle, because it’ll get charged where it’s parked,” said Cohen. “So if you think about dense urban areas like Manhattan or downtown Chicago, where are cars parked? They’re either on a curb or they’re inside parking garages, and they’re very space constrained. And so you have to design different equipment that deals with the space and power constraints in order to have charging happen in all those places.”

Design is a big part of Gravity’s business model, from the design of the space itself to the charging equipment. The company says it’s collaborating with Jasmit Rangr, an architect who is known for integrating his buildings with the landscape, climate and environment, in order to transform garages into attractive and welcoming spaces that house clean electric vehicles.

“The whole area is for EVs only, so it’s really a chance to showcase an experience around what the world would look like if parking areas for cars had no pollution or oil spills,” said Cohen.

Indeed, the renderings do look pretty flash – not at all the dark, creepy, petrol-smelling caverns that one associates with city parking garages. Gravity says Rangr also integrated interactive touchscreens into the designs of the various spaces the company is building out around NYC. The touchscreens are designed by Gravity to help users adjust and monitor their vehicle’s charging as they wait amongst the light-filled wooden car cubbies and try to decide if the plant decor is real or fake.

Providing standardized and simplified equipment was a big concern for Cohen, as well. He says the current model for public charging equipment in most cases includes an amalgamation of software, hardware and payment processing that are not very well integrated. Gravity has worked with an unnamed manufacturing partner to consolidate those segments and create a more seamless user experience, and that includes what’s happening on the back end of the charge, according to the company.

Gravity’s first site will accommodate about 22 fast chargers, three intermediate chargers and a few slow chargers. All of the fast chargers are up to 180kW, which means that even when two vehicles are plugged into one installation, each plug can do 90 kW of energy. Cohen says anything below 80 kW isn’t truly fast charging, and many of the companies that claim they offer fast charging are really only able to put out around 62.5 kW. Cohen also says by sending that current through 400 amp charging cables, even smaller volt batteries like those in Teslas can receive more than 80 kW.

The intermediate chargers use about 24kW to 30 kW equipment and charge cars within one to three hours. The slow chargers charge overnight or within six to eight hours using 11 kW equipment.

Many of the parking spots will be taken up by Gravity’s fleet of Tesla Model Y yellow cabs, which will charge overnight, says Cohen. Bringing a fleet of electric taxis to NYC was actually the impetus behind building charging infrastructure. Cohen has a soft spot for the yellow cab as an institution and wanted to come up with a way to give it a Renaissance. He got the greenlight from Tesla to lease the vehicles for this use case and worked with the city’s Taxi and Limousine Commission (TLC) to change the rules so a Tesla could be seen as a taxi before setting out on the harder task of how to charge the fleet.

“I talked to all the major charging equipment companies, and I quickly realized that there’s no charging equipment that is set up for charging fleets, and I realized the extent of the problem,” said Cohen. “We started thinking about infrastructure because the model just does not work without infrastructure and a yellow taxi using a model Y requires high levels of utilization and scale.”

In May, the TLC approved Gravity’s pilot program, and Cohen said the agency is going to release an MOU to continue the program within the next few weeks. In the meantime, Gravity wants to ramp up installing equipment at scale so that it can then grow its fleet.

“People think of mobility as this drain of cash and nobody has figured it out,” said Cohen. “I actually think that mobility and infrastructure are going to get solved together, and you’ll be able to make margins off utilization that are generous.”

News: Kapor Capital, Square co-founder Sam Wen back TomoCredit in its $10M Series A funding round

September 15, 2021
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Building credit history can be difficult if you are a consumer that is having trouble getting access to credit in the first place. Enter TomoCredit, which has developed a credit card focused on building credit history for first-time borrowers. The San Francisco-based startup is announcing today that it has raised $10 million in a Series

Building credit history can be difficult if you are a consumer that is having trouble getting access to credit in the first place.

Enter TomoCredit, which has developed a credit card focused on building credit history for first-time borrowers. The San Francisco-based startup is announcing today that it has raised $10 million in a Series A funding round co-led by Kapor Capital and KB Investment Inc. (KBIC), a subsidiary of South Korea’s leading consumer bank. Lewis & Clark Ventures, AME Cloud Ventures, Knollwood Investment Advisory, WTI, Bronze and Square co-founder Sam Wen also participated in the Series A financing.

The new capital comes just over seven months after TomoCredit raised $7 million in seed funding, and brings its total raised this year to $17 million. The company also announced today it has appointed Ash Gupta, former CRO at American Express, to its board.

All the reasons why you should launch a credit or debit card

TomoCredit co-founder and CEO Kristy Kim came up with the concept for the company after being rejected multiple times for an auto loan while in her early 20s.

Kim, who immigrated to the U.S. from South Korea with her family as a child, was disappointed that her lack of credit history proved to be such an obstacle despite the fact she had a job “and positive cash flow.”

So she teamed up with Dmitry Kashlev, a Russian immigrant, in January of 2019 to create a solution for other foreign-born individuals and young adults facing similar credit challenges. That fall, the startup (short for Tomorrow’s Credit) was accepted into the Barclays Accelerator, powered by Techstars.

The fintech offers a credit card aimed at helping first-time borrowers build credit history, based on their cash flow, rather than on their FICO or credit report ratings. Its biggest differentiator, believes Kim, is that it has no fees, no APR and no credit pull. Traditional credit products rely heavily on fees and APR, she said, while TomoCredit makes money through merchant fees.

Image Credits: TomoCredit

TomoCredit is powered by Finicity (which was acquired by Mastercard last year), and leverages that company’s data network and open banking technology so that it can “securely” access applicants’ bank accounts to obtain financial data for underwriting purposes.

Once approved, applicants receive the TomoCredit Mastercard. The goal is to bring “millions of individuals that lack a credit score into the financial system, allowing a diverse group of consumers the opportunity to better position themselves as qualified candidates for mortgages, auto loans, or other major life purchases,” the company said.

TomoCredit has already pre-approved more than 300,000 customers and expects to issue a total of 500,000 cards by year’s end, according to Kim.

“We’ve grown 10x this year from the beginning of 2021,” Kim said. “Still, this round came together earlier than expected.”

Something that has been surprising to Kim is the interest from a variety of types of consumers.

“In the beginning, we thought international students and immigrants would be most interested in our product,” she told TechCrunch. “But after launching, we’ve realized that so many people can benefit — from gig economy workers to YouTubers to any young person who hasn’t had a chance to build credit yet. The market is way bigger than we even realized.”

In early 2022, the company plans to roll out the Tomo Black card, a product for some of its existing customers that “are showing good performance.” It’s currently testing it with some of its existing user base.

“This is a premium product that can grow with our customers, who we want to retain over the next 10 to 20 years,” Kim said. “We don’t want our product to be a stop-gap solution.”

Image Credits: TomoCredit

The startup plans to use its new capital to do more hiring and enhance features such as weekly autopay and high credit limits in an effort to “boost credit scores faster,” she added. Currently, TomoCredit has about 30 employees, up from 10 at the time of its last raise in February.

“My main focus is recruiting top talent,” Kim said, noting that the company had already hired “some senior people from Wells Fargo.”

“When we recruit and hire, we care about diversity,” she added. “We’re building products for people who have been traditionally underserved by major banks. I think to align with our mission, we should embody that in building our team. More than 50% of our execs are female. The entire risk team is female. We are diverse in terms of gender, age and ethnicity because we want to truly understand our customers and build a product that is inclusive.”

Brian Dixon, partner at Kapor Capital, points out that there are about 45 million people in the U.S. who should have credit scores, but cannot take out a loan, get a credit card, or apply for a mortgage. And that number is only increasing.

“When we learned that Kristy experienced these issues firsthand when she moved to the United States and thoughtfully figured out a way to circumvent the predatory and broken credit card system, it deepened our conviction in her and the product itself,” he wrote via email.

Dixon believes that TomoCredit’s model of not charging the user makes it a “safe and affordable alternative” to what is in the market.

“Their mission aligns with our thesis of closing gaps of access and opportunity in the credit space at large as well,” he added.

TomoCredit raises $7M to help the cash rich and credit poor

News: EnerVenue raises $100M to accelerate clean energy using nickel-hydrogen batteries

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In order to support a buildout of renewable energy, which tends to over-generate electricity at certain times of day and under-generate at others, the grid is going to need a lot of batteries. While lithium-ion works fine for consumer electronics and even electric vehicles, battery startup EnerVenue says it developed a breakthrough technology to revolutionize

The technology itself – nickel-hydrogen batteries – isn’t actually new. In fact, it’s been used for decades in aerospace applications, to power everything from satellites to the International Space Station and the Hubble Telescope. Nickel-hydrogen had been too expensive to scale for terrestrial applications, until Stanford University professor (and now EnerVenue chairman) Yi Cui determined a way to adapt the materials and bring the costs way, way down.

Nickel-hydrogen has a number of key benefits over lithium-ion, according to EnerVenue: it can withstand super-high and super-low temperatures (so no need for air conditioners or thermal management systems); it requires very little to no maintenance; and it has a far longer lifespan.

The technology has caught the eye of two giants in the oil and gas industry, energy infrastructure company Schlumberger and Saudi Aramco’s VC arm, who together with Stanford University have raised $100 million in Series A funding. The investment comes around a year after EnerVenue raised a $12 million seed. The company is planning on using the funds to scale its nickel-hydrogen battery production, including a Gigafactory in the U.S., and has entered a manufacturing and distribution agreement with Schlumberger for international markets.

“I spent almost three and a half years prior to EnerVenue looking for a battery storage technology that I thought could compete with lithium-ion,” CEO Jorg Heinemann told TechCrunch in a recent interview. “I had essentially given up.” Then he met with Cui, who had managed through his research to bring the cost down from around $20,000 per kilowatt hour to $100 per kilowatt hour within line of sight – a jaw-dropping decrease that puts it on-par with existing energy storage technology today.

EnerVenue CEO Jorg Heinemann Image Credits: EnerVenue (opens in a new window)

Think of a nickel-hydrogen battery as a kind of battery-fuel cell hybrid. It charges by building up hydrogen inside a pressure vessel, and when it discharges, that hydrogen gets reabsorbed in water, Heinemann explained. One of the key differences between the batteries in space and the one’s EnerVenue is developing on Earth is the materials. The nickel-hydrogen batteries in orbit use a platinum electrode, which Heinemann said accounts for as much as 70% of the cost of the battery. The legacy technology also uses a ceramic separator, another high cost. EnerVenue’s key innovation is finding new, low-cost and Earth-abundant materials (though the exact materials they aren’t sharing).

Heinemann also hinted that an advanced team within the company is working on a separate technology breakthrough that could bring the cost down even further, to the range of around $30 per kilowatt hour or less.

Those aren’t the only benefits. EnerVenue’s batteries can charge and discharge at different speeds depending on a customer’s needs. It can go from a 10-minute charge or discharge to as slow as a 10-20 hour charge-discharge cycle, though the company is optimizing for a roughly 2 hour charge and 4-8 hour discharge. EnerVenue’s batteries are also designed for 30,000 cycles without experiencing a decline in performance.

“As renewables get cheaper and cheaper, there’s lots of time of the day where you’ve got, say, a 1-4-hour window of close to free power that can be used to charge something, and then it has to be dispatched fast or slow depending on when the grid needs it,” he said. “And our battery does that really well.”

It’s notable that this round was funded by two companies that loom large in the oil and gas industry. “I think it’s nearly 100% of the oil and gas industry is now pivoting to renewables in a huge way,” Heinemann added. “They all see the future as, the energy mix is shifting. We’re going to be 75% renewable by mid-century, most think it’s going to happen quicker, and those are based on studies that the oil and gas industry did. They see that and they know they need a new play.”

Image Credits: EnerVenue

Don’t expect nickel-hydrogen to start appearing in your iPhone anytime soon. The technology is big and heavy – even scaled down as much as possible, a nickel-hydrogen battery is still around the size of a two-liter water flask, so lithium-ion will definitely still play a major role in the future.

Stationary energy storage may have a different future. EnerVenue is currently in “late-stage” discussions on the site and partner for a United States factory to produce up to one gigawatt-hour of batteries annually, with the goal of eventually scaling even beyond that. Heinemann estimates that the tooling cap-ex per megawatt hour should be just 20% that of lithium ion. Under the partnership with Schlumberger, the infrastructure company will also be separately manufacturing batteries and selling them in Europe and the Middle East.

“It’s a technology that works today,” Heinemann said. “We’re not waiting on a technology breakthrough, there’s no science project in our future that we have to go achieve in order to prove out something. We know it works.”

News: Europe plans a Chips Act to boost semiconductor sovereignty

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The EU will use legislation to push for greater resilience and sovereignty in regional semiconductor supply chains. The bloc’s president trailed a forthcoming ‘European Chips Act’ in a state of the union speech today. Ursula von der Leyen suggested that gaining greater autonomy in chipmaking is now a key component of the EU’s overarching digital

The EU will use legislation to push for greater resilience and sovereignty in regional semiconductor supply chains.

The bloc’s president trailed a forthcoming ‘European Chips Act’ in a state of the union speech today. Ursula von der Leyen suggested that gaining greater autonomy in chipmaking is now a key component of the EU’s overarching digital strategy.

She flagged the global shortage of semiconductors, which has led to slow downs in production for a range of products that rely on chips to drive data processing — from cars and trains to smartphones and other consumer electronics — as driving EU lawmakers’ concern about European capacity in this area.

“There is no digital without chips,” said von der Leyen. “While we speak, whole production lines are already working at reduced speed — despite growing demand — because of a shortage of semi-conductors.

“But while global demand has exploded, Europe’s share across the entire value chain, from design to manufacturing capacity has shrunk. We depend on state-of-the-art chips manufactured in Asia. So this is not just a matter of our competitiveness. This is also a matter of tech sovereignty. So let’s put all of our focus on it.”

The Chips Act will aim to link together the EU’s semiconductor research, design and testing capacities, she said, calling for “coordination” between EU and national investments in this area to help boost the bloc’s self-sufficiency.

“The aim is to jointly create a state-of-the-art European chip ecosystem, including production. That ensures our security of supply and will develop new markets for ground-breaking European tech,” she added.

The EU president couched the ambition for bolstering European chip capacity as a “daunting task” but likened the mission to what the bloc did with its Galileo satellite navigation system two decades ago.

“Today European satellites provide the navigation system for more than 2 billion smartphones worldwide. We are world leaders. So let’s be bold again, this time with semi-conductors.”

In follow up remarks, the EU’s internal market commissioner, Thierry Breton, put a little more meat on the bones of the legislative plan — saying the Commission wants to integrate Member State efforts into a “coherent” pan-EU semiconductor strategy and also create a framework “to avoid a race to national public subsidies fragmenting the single market”.

The aim will be to “set conditions to protect European interests and place Europe firmly in the global geopolitical landscape”, he added.

Per Breton, the Chip Act will comprise three elements: Firstly, a semiconductor research strategy that will aim to build on work being done by institutions such as IMEC in Belgium, LETI/CEA in France and Fraunhofer in Germany.

“Building on the existing research partnership (the KDT Joint Undertaking), we need to up our game, and design a strategy to push the research ambitions of Europe to the next level while preserving our strategic interests,” he noted.

The second component will consist of a collective plan to boost European chipmaking capacity.

He said the planned legislation will aim to support chip supply chain monitoring and resilience across design, production, packaging, equipment and suppliers (e.g. producers of wafers).

The goal will be to support the development of European “mega fabs” that are able to produce high volumes of the most advanced (towards 2nm and below) and energy-efficient semiconductors.

However the EU isn’t planning for a future when it can make all the chips it needs itself.

The last plank of the European Chip Act will set out a framework for international co-operation and partnership.

“The idea is not to produce everything on our own here in Europe. In addition to making our local production more resilient, we need to design a strategy to diversify our supply chains in order to decrease over-dependence on a single country or region,” Breton went on. “And while the EU aims to remain the top global destination of foreign investment and we welcome foreign investment to help increase our production capacity especially in high-end technology, through the European Chips Act we will also put the right conditions in place to preserve Europe’s security of supply.”

“The US are now discussing a massive investment under the American Chips Act designed to finance the creation of an American research centre and to help open up advanced production factories. The objective is clear: to increase the resilience of US semiconductor supply chains,” he added.

“Taiwan is positioning itself to ensure its primacy on semiconductor manufacturing. China, too, is trying to close the technological gap as it is constrained by export control rules to avoid technological transfers. Europe cannot and will not lag behind.”

In additional documentation released today, the EU said the Chips Act will build on other digital initiatives already presented by the Von der Leyen Commission — such as moves to contain the power of “gatekeeper” Internet giants and increase platforms’ accountability (the Digital Markets Act and Digital Services Act); regulate high risk applications of AI (the Artificial Intelligence Act); tackle online disinformation (via a beefed up code of practice); and boost investment in regional digital infrastructure and skills.

Understanding Europe’s big push to rewrite the digital rulebook

News: Sendcloud nabs $177M led by SoftBank to double down on SaaS — shipping as a service

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E-commerce has undoubtedly seen a huge boost in growth in the last year and a half of Covid-19 living, with people turning to the web and apps to shop for essentials and not-so-essentials to keep their social distance, and using delivery services to receive their goods rather than picking things up in person. Today, a

Today, a Dutch startup called Sendcloud that has built a service to help retailers with the latter of these — providing a cloud-based to easily organize and carry out shipping services by choosing from a wide range of carriers and other options — is announcing $177 million in funding, a major investment that speaks not just to Sendcloud’s recent growth, but of the demand in the market for what it does: provide an efficient and viable alternative to simply turning to Amazon for fulfillment, or going through the manual and costly process of sorting out shipping directly with the companies that provide it.

“We try to provide Amazon-level logistics to all the other merchants out there,” Rob van den Heuvel, Sendcloud’s CEO and co-founder, said in an interview. Pre-lock down, he said the company — which now has 23,000 customers — was seeing on average between 70% and 80% growth each year. During lockdown that went up to 120%, with 133% increases in parcel volumes, “And we have not seen volumes going down since,” he added.

Softbank Vision Fund 2 — a prolific investor in the many parts of the e-commerce ecosystem — is leading this Series C, with L Catterton and HPE Growth also participating. This by far the biggest investment Sendcloud has ever had: the Eindhoven, Netherlands-based startup has been around since 2012 and before now had raised just over $23 million ($23 million, 23,000 customers has a nice ring to it.)

Van den Heuvel confirmed that the startup is not disclosing its valuation with this round although a source very close to the deal tells us it’s around $750 million.

As a point of reference, Shippo — a U.S. company operating in a similar space but with 100,000 customers to Sendcloud’s 23,000 — in June raised money at a $1 billion valuation. Shippo has, however, also raised significantly more money and will have had its valuation ratcheting up as a result of that, too. On Sendcloud’s side, our source pointed out that it’s demonstrated a very strong amount of capital efficiency in its growth.

The gap in the market that Sendcloud (and would-be rivals like Shippo and Stamps.com) is addressing is a very clear one. E-commerce is now a major channel for retailers of all sizes, and as the market continues to mature, customers buying online or in-person but still getting their goods delivered are getting more sophisticated in terms of what they expect in service levels.

The issue is that smaller retailers — realistically, anyone that is not Amazon, but especially those new to the e-commerce arena — typically don’t have systems in place to manage that delivery process in an efficient way. The very smallest, Van den Heuvel said, physically go to post offices to mail packages; and the bigger ones may order pick-up and shipping directly from specific carriers but find it costly to scale up from there, and to do so in a flexible way that ensures that they are getting the best prices and the best levels of service and the most options in terms of timings.

Amazon has in many ways set the bar for how shipping and delivery work, and in terms of what customers expect. It makes it easy for customers to expect and get fast and free shipping by way of its Prime membership club. It has a vast network of operations for itself and third parties it works with, and is increasingly directly controlling the different parts of that machine. And, critically, it already provides shipping as a service, plus a wider range of warehousing and other options — wrapped up in the company’s Fulfillment By Amazon (FBA) product.

Sendcloud essentially is an aggregator and integrator that brings together the longer tail of e-commerce technology providers used by retailers — it has over 50 integrations with the likes of Shopify, Magento, WooCommerce, Amazon and so on — with the range of companies that carry out shipping and delivery services — the DHL, UPS, FedEx, DPD and so on, more than 35 in all currently (and growing). It’s a very fragmented market on both ends of that, and so this is about bringing that together in a seamless way so that retailers can just search for and pick services that work for their needs. And this is all automated and integrated into their check-out: picking shippers and organising it ceases to be a manual effort.

It provides its tools in freemium tiers: a no-cost “essentials” for the smallest users, with the next tier at €40 per month, then €89 and €179 per month depending on the size of business.

Sendcloud sits in the same category as startups that have been addressing the physical aspect of e-commerce in other areas like freight forwarding and warehousing, by building cloud-based platforms to knit the many providers of those services together in a way that hadn’t been digitized previously. Doing so in the area of shipping and delivery, an area that is only getting more ubiquitous and expected by consumers, represents a massive opportunity: the delivery market is expected to grow from $475 billion today to $591 billion in 2024, the company estimates. It may be a pain point that that the average consumer never has to deal with on an organizational level as much as retailers do, but as e-commerce continues to grow, so too will the need for this to work correctly, to keep consumers happy.

“Growing parcel volume and demand for flexible delivery have increased the need for smart shipping solutions amongst online merchants,” said Yanni Pipilis, managing partner at SoftBank Investment Advisers, in a statement. “Sendcloud has built a leading all-in-one shipping platform that aims to help merchants easily integrate functionalities such as checkout, shipping, tracking, returns, and analytics. We are pleased to partner with Rob and the Sendcloud team to support their mission of fueling the next wave of e-commerce enablement.”

“Sendcloud’s scalable, intuitive, and highly localized platform is at the forefront of enabling sophisticated shipping for online merchants across Europe,” added Christopher North, managing partner at L Catterton. “We are excited to partner with the exceptional Sendcloud team to leverage our consumer-focused e-commerce experience and deep expertise working with high-growth technology and software businesses to drive continued innovation and position the Company for growth globally.”

Sendcloud said that SoftBank Investment Advisors’ Neil Cunha-Gomes and Monika Wilk, and L Catterton’s Ido Krakowsky, are all joining its board.

News: Zonos banks $69M to develop APIs for democratizing cross-border commerce

September 15, 2021
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Zonos automatically classifies goods and calculates an accurate total landed cost on international transactions.

Cross-border commerce company Zonos raised $69 million in a Series A, led by Silversmith Capital Partners, to continue building its APIs that auto classify goods and calculate an accurate total landed cost on international transactions.

St. George, Utah-based Zonos is classifying the round as a minority investment that also included individual investors Eric Rea, CEO of Podium, and Aaron Skonnard, co-founder and CEO of Pluralsight. The Series A is the first outside capital Zonos has raised since it was founded in 2009, Clint Reid, founder and CEO, told TechCrunch.

As Reid explained it, “total landed cost” refers to the duties, taxes, import and shipping fees someone from another country might pay when purchasing items from the U.S. However, it is often difficult for businesses to figure out the exact cost of those fees.

Checkout is the key to frictionless B2B e-commerce

Global cross-border e-commerce was estimated to be over $400 billion in 2018, but is growing at twice the rate of domestic e-commerce. This is where Zonos comes in: The company’s APIs, apps and plugins simplify cross-border sales by providing an accurate final price a consumer pays for an item on an international purchase. Businesses can choose which one or multiple shipping carriers they want to work with and even enable customers to choose at the time of purchase.

“Businesses can’t know all of a country’s laws,” Reid added. “Our mission is to create trust in global trade. If you are transparent, you bring trust. This was traditionally thought to be a shipping problem, but it is really a technology problem.”

As part of the investment Todd MacLean, managing partner at Silversmith Capital Partners, joined the Zonos board of directors. One of the things that attracted MacLean to the company was that Reid was building a company outside of Silicon Valley and disrupting global trade far from any port.

He says while looking into international commerce, he found people wound up being charged additional fees after they have already purchased the item, leading to bad customer experiences, especially when a merchant is trying to build brand loyalty.

Even if someone chooses not to purchase the item due to the fees being too high, MacLean believes the purchasing experience will be different because the pricing and shipping information was provided up front.

“Our diligence said Zonos is the only player to take the data that exists out there and make sense of it,” MacLean said. “Customers love it — we got the most impressive customer references because this demand is already out there, and they are seeing more revenue and their customers have more loyalty because it just works.”

In fact, it is common for companies to see 25% to 30% year over year increase in sales, Reid added. He went on to say that due to fees associated with shipping, it doesn’t always mean an increase in revenue for companies. There may be a small decrease, but a longer lifetime value with customers.

Going after venture capital at this time was important to Reid, who saw global trade becoming more complex as countries added new tax laws and stopped using other trade regulations. However, it was not just about getting the funding, but finding the right partner that recognizes that this problem won’t be solved in the next five years, but will need to be in it for the long haul, which Reid said he saw in Silversmith.

The new investment provides fuel for Zonos to grow in product development and go-to-market while also expanding its worldwide team into Europe and Asia Pacific. Eighteen months ago, the company had 30 employees, and now there are over 100. It also has more than 1,500 customers around the world and provides them with millions of landed cost quotes every day.

“Right now, we are the leader for APIs in cross-border e-commerce, but we need to also be the technology leader regardless of the industry,” Reid added. “We can’t just accept that we are good enough, we need to be better at doing this. We are looking at expanding into additional markets because it is more than just servicing U.S. companies, but need to be where our customers are.”

Blockchain startup XREX gets $17M to make cross-border trade faster

News: Walmart to launch autonomous delivery service with Ford and Argo AI

September 15, 2021
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Walmart has tapped Argo AI and Ford to launch an autonomous vehicle delivery service in Austin, Miami and Washington D.C., the companies said Wednesday. The service will allow customers to place online orders for groceries and other items using Walmart’s ordering platform. Argo’s cloud-based infrastructure will be integrated with Walmart’s online platform, routing the orders

Walmart has tapped Argo AI and Ford to launch an autonomous vehicle delivery service in Austin, Miami and Washington D.C., the companies said Wednesday.

The service will allow customers to place online orders for groceries and other items using Walmart’s ordering platform. Argo’s cloud-based infrastructure will be integrated with Walmart’s online platform, routing the orders and scheduling package deliveries to customers homes. Initially, the commercial service will be limited to specific geogrpahic areas in each city and expand over time. The companies will begin testing later this year.

Walmart and Ford have partnered before in a limited test with Postmates in fall 2018. In that pilot program, which focused on Miami-Dade County, they used simulated self-driving vehicles to study the user experience of delivering groceries. Argo was not involved in that study.

This latest collaboration will use Ford vehicles integrated with Argo AI’s self-driving technology. The aim is to show the potential for for autonomous vehicle delivery services at scale, according to Argo AI CEO and co-founder Bryan Salesky.

The announcement illustrates Ford’s two-track system to launch a commercial service that uses autonomous vehicles to shuttle people and possibly packages. The automaker has been testing the business side of of how a dedicated fleet of autonomous vehicles might operate in the real world. It backed Argo AI in 2016 and tapped the company to develop and test the self-driving system.

It also shows how Austin and Miami have become central to their initials commercialization plans.

Earlier this summer, Argo AI and Ford announced plans to launch at least 1,000 self-driving vehicles on Lyft’s ride-hailing network in a number of cities over the next five years, starting with Miami and Austin. The first Ford self-driving vehicles equipped with Argo’s autonomous vehicle technology are expected to become available on Lyft’s app in Miami later this year.

News: Patient monitoring startup Doccla secures $3.3M Seed funding for ‘virtual wards’ platform

September 15, 2021
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Doccla, a healthtech startup with a platform that can monitor patients on hospital wards and in the home, has secured a $3.3 million Seed funding round, led by Giant Ventures and Speedinvest. The company allows hospitals to predict when beds will be freed up by monitoring patients remotely via wearable medical devices, thus helping to

Founded by health entrepreneur, Martin Ratz, and tech entrepreneur, Dag Larrson, Doccla says it has saved “thousands of bed days for the NHS,” achieving a 29% reduction in Emergency Admissions and a 20% reduction in A&E attendance, the company claimed.

Doccla is similar to competitors Current Health, Huma and Cadence. The latter recently raised $41 million in funding from Thrive and General Catalyst. The company offers a remote patient monitoring platform that enables clinicians to monitor patients at home and provide personalized feedback via texts and ‘video visits’. Doccla says it can also measure patients at home.

The cash raised will be used to invest in its technology, and integrate further with the medical wearables and journal record systems. It also plans to expand into European healthcare markets.

Once again, as we have seen with other technologies, Doccla’s development was propelled by the pandemic. It turned out that overwhelmed hospitals needed technologies like this to create ‘virtual wards’ in order to monitor patients’ journey both in the hospital and when they got home.

Dag Larsson, CEO and co-founder of Doccla said. “Our end-to-end virtual ward services are extremely easy for the care provider to take on and extremely hard for them to ignore. The NHS now faces a challenging winter season and we’re evolving our technology to support care providers.”

He added: “We differ a lot from the competition in that we support the entire patient journey (e.g all last-mile activities like logistics, customer service, and even pre-configured mobile phones). This has made us punch substantially over our weight and win contracts with extremely high patient and clinician approval.”

Cameron McLain, Managing Partner & Co-Founder from Giant Ventures added: “Doccla provides a vital solution for a strained healthcare system, delivering a product that improves the patient experience and tackles cost.”

Felix Faltin, Principal and Digital Health Lead at Speedinvest said “Doccla’s platform is more than a product, it’s a full-stack solution that makes care delivery more efficient for providers, cheaper for payors and safer for patients, long past COVID-19.”

Daily Archives: September 15, 2021