Yearly Archives: 2021

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

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

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.

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.

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

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

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 stationary energy storage.

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

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.

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

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

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 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

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.

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.”

 

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

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

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

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 alleviate bottlenecks in the system.

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.”

News: Ireland probes TikTok’s handling of kids’ data and transfers to China

Ireland’s Data Protection Commission (DPC) has yet another ‘Big Tech’ GDPR probe to add to its pile: The regulator said yesterday it has opened two investigations into video sharing platform TikTok. The first covers how TikTok handles children’s data, and whether it complies with Europe’s General Data Protection Regulation. The DPC also said it will examine

Ireland’s Data Protection Commission (DPC) has yet another ‘Big Tech’ GDPR probe to add to its pile: The regulator said yesterday it has opened two investigations into video sharing platform TikTok.

The first covers how TikTok handles children’s data, and whether it complies with Europe’s General Data Protection Regulation.

The DPC also said it will examine TikTok’s transfers of personal data to China, where its parent entity is based — looking to see if the company meets requirements set out in the regulation covering personal data transfers to third countries.

TikTok was contacted for comment on the DPC’s investigation.

A spokesperson told us:

“The privacy and safety of the TikTok community, particularly our youngest members, is a top priority. We’ve implemented extensive policies and controls to safeguard user data and rely on approved methods for data being transferred from Europe, such as standard contractual clauses. We intend to fully cooperate with the DPC.”

The Irish regulator’s announcement of two “own volition” enquiries follows pressure from other EU data protection authorities and consumers protection groups which have raised concerns about how TikTok handles’ user data generally and children’s information specifically.

In Italy this January, TikTok was ordered to recheck the age of every user in the country after the data protection watchdog instigated an emergency procedure, using GDPR powers, following child safety concerns.

TikTok went on to comply with the order — removing more than half a million accounts where it could not verify the users were not children.

This year European consumer protection groups have also raised a number of child safety and privacy concerns about the platform. And, in May, EU lawmakers said they would review the company’s terms of service.

On children’s data, the GDPR sets limits on how kids’ information can be processed, putting an age cap on the ability of children to consent to their data being used. The age limit varies per EU Member State but there’s a hard cap for kids’ ability to consent at 13 years old (some EU countries set the age limit at 16).

In response to the announcement of the DPC’s enquiry, TikTok pointed to its use of age gating technology and other strategies it said it uses to detect and remove underage users from its platform.

It also flagged a number of recent changes it’s made around children’s accounts and data — such as flipping the default settings to make their accounts privacy by default and limiting their exposure to certain features that intentionally encourage interaction with other TikTok users if those users are over 16.

While on international data transfers it claims to use “approved methods”. However the picture is rather more complicated than TikTok’s statement implies. Transfers of Europeans’ data to China are complicated by there being no EU data adequacy agreement in place with China.

In TikTok’s case, that means, for any personal data transfers to China to be lawful, it needs to have additional “appropriate safeguards” in place to protect the information to the required EU standard.

When there is no adequacy arrangement in place, data controllers can, potentially, rely on mechanisms like Standard Contractual Clauses (SCCs) or binding corporate rules (BCRs) — and TikTok’s statement notes it uses SCCs.

But — crucially — personal data transfers out of the EU to third countries have faced significant legal uncertainty and added scrutiny since a landmark ruling by the CJEU last year which invalidated a flagship data transfer arrangement between the US and the EU and made it clear that DPAs (such as Ireland’s DPC) have a duty to step in and suspend transfers if they suspect people’s data is flowing to a third country where it might be at risk.

So while the CJEU did not invalidate mechanisms like SCCs entirely they essentially said all international transfers to third countries must be assessed on a case-by-case basis and, where a DPA has concerns, it must step in and suspend those non-secure data flows.

The CJEU ruling means just the fact of using a mechanism like SCCs doesn’t mean anything on its own re: the legality of a particular data transfer. It also amps up the pressure on EU agencies like Ireland’s DPC to be pro-active about assessing risky data flows.

Final guidance put out by the European Data Protection Board, earlier this year, provides details on the so-called ‘special measures’ that a data controller may be able to apply in order to increase the level of protection around their specific transfer so the information can be legally taken to a third country.

But these steps can include technical measures like strong encryption — and it’s not clear how a social media company like TikTok would be able to apply such a fix, given how its platform and algorithms are continuously mining users’ data to customize the content they see and in order to keep them engaged with TikTok’s ad platform.

In another recent development, China has just passed its first data protection law.

But, again, this is unlikely to change much for EU transfers. The Communist Party regime’s ongoing appropriation of personal data, through the application of sweeping digital surveillance laws, means it would be all but impossible for China to meet the EU’s stringent requirements for data adequacy. (And if the US can’t get EU adequacy it would be ‘interesting’ geopolitical optics, to put it politely, were the coveted status to be granted to China…)

One factor TikTok can take heart from is that it does likely have time on its side when it comes to the’s EU enforcement of its data protection rules.

The Irish DPC has a huge backlog of cross-border GDPR investigations into a number of tech giants.

It was only earlier this month that Irish regulator finally issued its first decision against a Facebook-owned company — announcing a $267M fine against WhatsApp for breaching GDPR transparency rules (but only doing so years after the first complaints had been lodged).

The DPC’s first decision in a cross-border GDPR case pertaining to Big Tech came at the end of last year — when it fined Twitter $550k over a data breach dating back to 2018, the year GDPR technically begun applying.

The Irish regulator still has scores of undecided cases on its desk — against tech giants including Apple and Facebook. That means that the new TikTok probes join the back of a much criticized bottleneck. And a decision on these probes isn’t likely for years.

On children’s data, TikTok may face swifter scrutiny elsewhere in Europe: The UK added some ‘gold-plaiting’ to its version of the EU GDPR in the area of children’s data — and, from this month, has said it expects platforms meet its recommended standards.

It has warned that platforms that don’t fully engage with its Age Appropriate Design Code could face penalties under the UK’s GDPR. The UK’s code has been credited with encouraging a number of recent changes by social media platforms over how they handle kids’ data and accounts.

News: Onin is trying to fix event planning by combining calendar and chat

What would happened if your go-to calendar and messaging apps were in fact one and the same thing? That’s the thinking behind Onin — a UK startup that wants to simplify event planning by, well, making a more organized app for organizing stuff. If that sounds a little niche, it pays to remember that calendars

What would happened if your go-to calendar and messaging apps were in fact one and the same thing? That’s the thinking behind Onin — a UK startup that wants to simplify event planning by, well, making a more organized app for organizing stuff.

If that sounds a little niche, it pays to remember that calendars have been having a bit of a moment (ha!) of late (ho!) — what with the pandemic parceling our work lives into endless virtual meeting slots. Aka: How many Zoom calls can one human survive in a single day?

Certainly the limitations of digital calendars, these rather unlovely (yet ever more essential) time-management tools, have had faced closer scrutiny since COVID-19 popped up on the scene. Flaws? Yes they have a few.

And so we’ve seen a burst of startup attention to the space in recent years. Think stuff like Calendly and Reclaim.ai for more efficiently managing meeting scheduling (aka ‘smart calendar assistants’) — or, more recently, Magical — which is trying to push the (invite) envelope a little further by trying to make calendars more collaborative.

Onin is taking a similarly collaborative tack — but with, initially, more of a consumer focus: It wants to be your new go-to app to arrange stuff like drinks or trips with your friends. (If it can take off with twentysomething socialites and worm its way from B2C into work settings via a consumerization backdoor then great, is the founder’s thinking there.)

But why do you need a whole new app for organizing birthday drinks, I hear you cry!?

Because the experience of using a digital tool to arrange multi-person events is frustratingly un-social and friction-filled is Onin’s argument.

With a typical calendar, an event creator owns the event (and therefore the planning process) so only they can make changes that sync to all participants. Hence those endless emails discussion threads that spring up around nascent group events as people try to hash out the details of a plan — who’s free when and which location works for everyone and so on — and then nag the self appointed organizer to update the invite so everyone stays on the same page.

Onin’s alternative approach avoids this planning asymmetry by collapsing and combining chat and calendar into a one-stop scheduling dream: “One place to find time and plan events without leaving the chat.” Or, well, that’s the promise.

(And — yes — it will still integrate with your existing calendar software so that events planned in Onin get synced back there.)

Here’s founder Ryan Brodie laying it out: “We want to be the aggregation layer for events, contextualising the process & third party integrations so there’s zero fragmentation between them and the discussion that forms them (right now the event in our diaries is always one step behind the convo and every step is duplicated)

“To do this we want to replace your calendar app/web app and act as a client for whatever calendar provider you use (‘bring your own calendar’).”

“We’re starting from the consumer and consumer meet-up side however we strongly believe (and have already proven) Onin’s usefulness across sectors,” he also argues. “The key thing is we’re chat first not event first; 95% of the planning is happening by chat and not by editing the event’s details, thus our hard work on bringing the event into the conversation itself (you can @mention the group in any of its sub-groups too making referring to an upcoming event delightful).”

Per Brodie, the problem Onin is focused on stems from fragmentation related to the long-standing iCalendar standard —  aka the Internet Calendaring and Scheduling Core Object Specification format (RFC 5545), which allows different scheduling services to understand and process calendaring items (and was first created in 1998) — which is really why, as he tells it, trying to do group scheduling with existing calendar apps is such a frustrating mess.

Onin’s answer to this legacy fragmentation takes the form of a patent-pending “architectural solution” — which means the software always ‘organizes’ the event “from a calendaring perspective, not a specific user”, as Brodie puts it. (Or, more simply: “The organiser is the group email address and we control its sync.”)

The effect of that is to circumvent the fragmentation between an event and its communication channels — thereby removing unnecessary friction from the event planning process by letting groups plan stuff together more spontaneously.

“No one has solved this problem before,” claims Brodie (who’s name may be familiar as he co-founded YC-backed Muslim dating app Muzmatch, before moving on to his next app challenge).

“It’s incredibly hard to as the calendaring standards are decentralised and non-canonical (our tech made our events centralised and canonical). Everything you can do in our native apps you can do with very low friction web experience first (every Onin group is a rapidly shareable link).”

Asked about other software solutions, he suggests Onin is shooting to be “Microsoft Teams, just done right”. So, er, touché. (“An easy to use product and one that’s simple to understand, isn’t locked into the Microsoft ecosystem, and yet is incredibly powerful and versatile, scaling from 1:1 conversations to groups of hundreds of people, all the time seamlessly syncing event information into participant’s diaries,” is the ambition.)

“We send the invites to all users vs using their own calendar like say Calendly does,” Brodie also tells us, going into more detail on how exactly Onin does things differently vs rivals. “Therefore events are fully collaborative and provide a history of changes inside Onin but in your external calendar all you can do is change your attending status as a regular participant. This makes Onin very sticky!”

For now, it’s still super early for the product — which bagged some attention after launching on Product Hunt in August — and is just now launching as an MVP. But Onin has already turned investor heads, raising a $1M pre-seed round (“with just the idea”) last summer — which looks like a notable vote of confidence at such an early stage.

Backers in the pre-seed include Entrepreneur First’s Matt Clifford and Hambro Perks (on angel terms), plus a number of others who aren’t up for going public just yet.

“We’ve had over 400 people join the early access program in 48 hours which involved an 8-step form detailing their calendar woes, I’m very confident there is serious demand simply in combining chat and calendar,” adds Brodie, before segueing into reeling off a list of integrations and features the team is working on adding.

“We already have an official Zoom integration and are working on Typeform & Calendly integrations (Notion, Google Workspace, etc. all targeted). We then want to take over the event based discussions you have in other apps as a result, with you thinking of the event as living in Onin (‘zero switching cost’). For example, when you join the Zoom call a contextual message is sent into the group — “[Ryan] joined Zoom” — no one has done this before!

“We own the event that is synced to everyone’s diaries, it all links back to Onin. We have a unique, patent pending Talk around time chat UI that makes all of this possible. We have a very Notion-y style group/sub-group system, it’s a) extremely easy to create follow up events and b) easy to create sub-plans too (e.g. a holiday with lots of activities or a product launch with TechCrunch interviews…).”

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