Tag Archives: Blog

News: Enable bags $45M for B2B rebate management platform

Its technology automates how distributors and manufacturers create, execute and track rebates.

Enable, a startup developing a cloud-based software tool for business-to-business rebate management, announced Wednesday a $45 million Series B funding round.

The round is led by Norwest Venture Partners with participation from existing investors Menlo Ventures and Sierra Ventures, and a group of angel investors. Including the new round, the company has raised a total of $62 million, which includes a $13 million Series A raised in 2020.

The company, which started in the U.K. and moved to San Francisco in 2020, was co-founded by Andrew Butt and Denys Shortt in 2015 but launched fully in 2016. Its technology automates how distributors and manufacturers create, execute and track rebates. These types of trading programs are a common industry practice and are relied on by distributors as a way to turn a profit.

Since raising its Series A last year, Butt, chief executive officer, moved to the Bay Area, grew its North American operations to 60 people, tripled revenue and more than tripled its customer base, he told TechCrunch. The new funding will be used for product innovation and building sales and go-to-market teams.

“The Series A was proving traction in the U.S. and Canada and gave us the ability to hire a U.S. leadership team,” he added. “When we saw that momentum, the market size was large and the opportunity was now getting bigger and bigger, we started scaling up the business.”

As customer needs changed and incentives were growing in terms of revenue and profitability, Enable saw that they were more critical to manage; the incentives needed to be more dynamic and easy to make targeted and personalized. In a sense, incentives have “gone from being blunt instruments to very sharp in size and volume,” Butt said.

Reaching the year over year revenue doubling was a milestone for the company, and his immediate next steps are to get a fully ramped team so Enable can continue on that growth trajectory. The market for incentives is big, but “there is no credible competition,” so the company is also working to build that distribution and sales team now, he added.

It was also over the past year that Butt met Sean Jacobsohn, partner at Norwest Venture Partners, who, as part of the investment, joined Enable’s board of directors.

Jacobsohn had noticed Enable and asked for an introduction to the company when it hired Jerry Brooner as its president of global field operations. Jacobsohn was tracking Brooner’s next moves after leaving Scout, a Workday company, and the hire got his attention.

Enable checks all of the boxes Jacobsohn said he looks for in a company: strong CEO, a good team and good customer feedback — many of them were dissatisfied with the legacy software, he said.

“I also love companies going after a big market where there is no credible competition,” Jacobsohn added. “There is a lot of greenfield space here. What’s great about a player like that is they can come in, create a category and be the new generation cloud player. This isn’t something someone can wake up and start. You need deep domain expertise.”

 

News: Rapid Robotics raises another $36.7M

Rapid Robotics announced a $12 million Series A all the way back in April 2021. Four months later, the Bay Area-based robotic manufacturing firm is back with a $36.7 million Series B, led by Kleiner Perkins and Tiger Global. The round, which also features existing investors NEA, Greycroft, Bee Partners and 468 Capital, brings the

Rapid Robotics announced a $12 million Series A all the way back in April 2021. Four months later, the Bay Area-based robotic manufacturing firm is back with a $36.7 million Series B, led by Kleiner Perkins and Tiger Global. The round, which also features existing investors NEA, Greycroft, Bee Partners and 468 Capital, brings the company’s total funding up to $54.2 million.

The funding values the startup at $192.5 million — an impressive figure for a firm that was raising its seed in 2020. The Series B is Rapid’s third (!) in less than a year, no doubt spurred on by the immense interest in robotics and automation being fueled by a seemingly endless global pandemic.

As companies look for alternatives to “non-essential” workers, investments in these technologies have only accelerated. Manufacturing bottlenecks throughout the pandemic have also brought into sharp focus the need for flexible and global production.

Rapid’s value prop is a Rapid Machine Operator (RMO) robot that can be deployed in a manufacturing setting in a matter of hours, without the need for programming and other robotics knowledge. The system is available under the RaaS (robotics as a service) model for $25,000 a year. The system is flexible and can be assigned various tasks — a nice feature for companies that can’t afford devoted systems.

“We hear a lot about the semiconductor shortage, but that’s just the tip of the iceberg. Contract manufacturers can’t produce gaskets, vials, labels — you name it,” CEO Jordan Kretchmer said in a release tied to the news. “I’ve seen cases where the inability to produce a single piece of U-shaped black plastic brought an entire auto line to a halt.”

Automotive is a target for Rapid, though the company notes that Bay Area-based health company TruePill is now employing its systems to fill and label prescription bottles.

News: Stacker raises $20M Series A to help business units build software without coding

No code platforms have developed into a hot market, and Stacker, a London-based no-code platform is attempting to bring the concept to a new level. Not only can you create a web application from a spreadsheet, you can pull data from a variety of sources to create a sophisticated business application automatically (although some tweaking

No code platforms have developed into a hot market, and Stacker, a London-based no-code platform is attempting to bring the concept to a new level. Not only can you create a web application from a spreadsheet, you can pull data from a variety of sources to create a sophisticated business application automatically (although some tweaking may be required).

Today the company announced a $20 million Series A led by Andreessen Horowitz with participation from existing investors Initialized Capital, Y Combinator and Pentech. Today’s investment brings the total raised to $23 million, according to Crunchbase data.

Michael Skelly, CEO and co-founder at Stacker, says that the idea is to take key business data and turn it into a useful app to help someone do their job more efficiently. “[We enable] people in business to create apps to help them in their working life — so things like customer portals, internal tools and things that take the data they’re already using, often to run a process, and turn that into an app,” Skelly explained.

“We really think that in order to actually be useful for business, you need to be hooked into the data that a business cares about. And so we let people bring their spreadsheets, SQL databases, Salesforce data, bring all the data that they use to run their business, and automatically turn it into an app,” he said.

Once the company pulls that data in and creates an app, the user can begin to tweak how things look, but Stacker gives them a big head start toward creating something usable from the get-go, Skelly said.

Jennifer Li,  a partner at lead investor Andreessen Horowitz likes the startup’s approach to no code. “We’ve been watching the no-code space for a while, and Stacker stands apart from the rest because of its thoughtful product approach, allowing business operators to instantly generate a functional app that perfectly fits existing business processes,” she said in a blog post announcing the funding round.

The company currently has 19 employees with plans to put the new capital to work to reach 30-40 by the end of the year. Skelly sees building a diverse company as a key goal and is proactive and thoughtful about finding ways to achieve that. In fact, he has identified three ways to approach diversity.

“Firstly is just making sure that we get a diverse pipeline of people. I really think that the ratio of the people you talk to is probably going to be the biggest indicator of the people you hire. Secondly we try to find ways we can hire people who are maybe further down their career profile, but [looking] to grow,” he said.

Thirdly, and I think this is something that is not talked about enough, there are plenty of people who would like to get into programming roles, and who are under represented, and so we have members of our team who are converting from various non-technical roles to DevOps — and I think it’s just like a really great route to add to the overall pool [of diverse candidates],” he said.

The company is remote first with Skelly in London and his co-founder based in Geneva and they intend to stay that way. They founded the company in 2017 and originally created a different product that was much more complex and required a lot of hand holding before eventually concluding that making it simple was the way to go, They released the first version of the current product at the end of 2019.

The company has a big vision to be the software development tool for business units. “We really think that in the future just like everyone’s got email, a chat tool, a spreadsheet and a video conferencing tool nowadays, they will also have a software tool, where they write and run the custom software that they run their business on,” he said.

News: T-Mobile says at least 47M current and former customers affected by data breach

T-Mobile has confirmed that millions of current and former customers had their information stolen in a data breach, following reports of a hack over the weekend. In a statement, T-Mobile, which has more than 100 million customers, said its preliminary analysis shows 7.8 million current postpaid T-Mobile customers had information taken in the data breach.

T-Mobile has confirmed that millions of current and former customers had their information stolen in a data breach, following reports of a hack over the weekend.

In a statement, T-Mobile, which has more than 100 million customers, said its preliminary analysis shows 7.8 million current postpaid T-Mobile customers had information taken in the data breach. The carrier said that some personal data on current and former postpaid was also taken, including customer names, dates of birth, Social Security numbers, and driver’s license information for a “subset” of current and former postpay customers and prospective T-Mobile customers.

The company also said that 40 million records of former and prospective customers was taken, but that “no phone numbers, account numbers, PINs, passwords, or financial information were compromised.”

But the company warned that approximately 850,000 active T-Mobile customer names, phone numbers, and account PINs were in fact compromised, and that customer names, phone numbers and account PINs were exposed. T-Mobile said it’s reset those customer PINs. T-Mobile said it was “recommending all postpaid customers” to proactively change their account PIN, which protects their accounts from SIM-swapping attacks.

Vice reported this weekend that T-Mobile was investigating a possible hack after a seller on a known criminal forum claimed to be in possession of millions of records. The seller told Vice that they had 100 million records on T-Mobile customers, which included customer account names, phone numbers, and the IMEI numbers of phones on the account.

T-Mobile warned that there could be more fallout to come, noting that it confirmed there was “some additional information from inactive prepaid accounts accessed through prepaid billing files,” but did not say what, only that it was not financial information.

This is the fifth time that T-Mobile was hacked in recent years, following incidents as recently as January and other incidents dating back to 2018.

News: Evervault’s ‘encryption as a service’ is now open access

Dublin-based Evervault, a developer-focused security startup which sells encryption vis API and is backed by a raft of big name investors including the likes of Sequoia, Kleiner Perkins and Index Ventures, is coming out of closed beta today — announcing open access to its encryption engine. The startup says some 3,000 developers are on its

Dublin-based Evervault, a developer-focused security startup which sells encryption vis API and is backed by a raft of big name investors including the likes of Sequoia, Kleiner Perkins and Index Ventures, is coming out of closed beta today — announcing open access to its encryption engine.

The startup says some 3,000 developers are on its waitlist to kick the tyres of its encryption engine, which it calls E3.

Among “dozens” of companies in its closed preview are drone delivery firm Manna, fintech startup Okra, and healthtech company Vital. Evervault says it’s targeting its tools at developers at companies with a core business need to collect and process four types of data: Identity & contact data; Financial & transaction data; Health & medical data; and Intellectual property.

The first suite of products it offers on E3 are called Relay and Cages; the former providing a new way for developers to encrypt and decrypt data as it passes in and out of apps; the latter offering a secure method — using trusted execution environments running on AWS — to process encrypted data by isolating the code that processes plaintext data from the rest of the developer stack.

Evervault is the first company to get a product deployed on Amazon Web Services’ Nitro Enclaves, per founder Shane Curran.

“Nitro Enclaves are basically environments where you can run code and prove that the code that’s running in the data itself is the code that you’re meant to be running,” he tells TechCrunch. “We were the first production deployment of a product on AWS Nitro Enclaves — so in terms of the people actually taking that approach we’re the only ones.”

It shouldn’t be news to anyone to say that data breaches continue to be a serious problem online. And unfortunately it’s sloppy security practices by app makers — or even a total lack of attention to securing user data — that’s frequently to blame when plaintext data leaks or is improperly accessed.

Evervault’s fix for this unfortunate ‘feature’ of the app ecosystem is to make it super simple for developers to bake in encryption via an API — taking the strain of tasks like managing encryption keys. (“Integrate Evervault in 5 minutes by changing a DNS record and including our SDK,” is the developer-enticing pitch on its website.)

“At the high level what we’re doing… is we’re really focusing on getting companies from [a position of] not approaching security and privacy from any perspective at all — up and running with encryption so that they can actually, at the very least, start to implement the controls,” says Curran.

“One of the biggest problems that companies have these days is they basically collect data and the data sort of gets sprawled across both their implementation and their test sets as well. The benefit of encryption is that  you know exactly when data was accessed and how it was accessed. So it just gives people a platform to see what’s happening with the data and start implementing those controls themselves.”

With C-Suite executives paying increasing mind to the need to properly secure data — thanks to years of horrific data breach scandals (and breach déjà vu), and also because of updated data protection laws like Europe’s General Data Protection Regulation (GDPR) which has beefed up penalties for lax security and data misuse — a growing number of startups are now pitching services that promise to deliver ‘data privacy’, touting tools they claim will protect data while still enabling developers to extract useful intel.

Evervault’s website also deploys the term “data privacy” — which it tells us it defines to mean that “no unauthorized party has access to plaintext user/customer data; users/customers and authorized developers have full control over who has access to data (including when and for what purpose); and, plaintext data breaches are ended”. (So encrypted data could, in theory, still leak — but the point is the information would remain protected as a result of still being robustly encrypted.)

Among a number of techniques being commercialized by startups in this space is homomorphic encryption — a process that allows for analysis of encrypted data without the need to decrypt the data.

Evervault’s first offering doesn’t go that far — although its ‘encryption manifesto‘ notes that it’s keeping a close eye on the technique. And Curran confirms it is likely to incorporate the approach in time. But he says its first focus has been to get E3 up and running with an offering that can help a broad swathe of developers.

“Fully homomorphic [encryption] is great. The biggest challenge if you’re targeting software developers who are building normal services it’s very hard to build general purpose applications on top of it. So we take another approach — which is basically using trusted execution environments. And we worked with the Amazon Web Services team on being their first production deployment of their new product called Nitro Enclaves,” he tells TechCrunch.

“The bigger focus for us is less about the underlying technology itself and it’s more about taking what the best security practices are for companies that are already investing heavily in this and just making them accessible to average developers who don’t even know how encryption works,” Curran continues. “That’s where we get the biggest nuance of Evervault vs some of these others privacy and security companies — we build for developers who don’t normally think about security when they’re building things and try to build a great experience around that… so it’s really just about bridging the gap between ‘the start of art’ and bringing it to average developers.”

“Over time fully homomorphic encryption is probably a no-brainer for us but both in terms of performance and flexibility for your average developer to get up and running it didn’t really make sense for us to build on it in its current form. But it’s something we’re looking into. We’re really looking at what’s coming out of academia — and if we can fit it in there. But in the meantime it’s all this trusted execution environment,” he adds.

Curran suggests Evervault’s main competitor at this point is open source encryption libraries — so basically developers opting to ‘do’ the encryption piece themselves. Hence it’s zeroing in on the service aspect of its offering; taking on encryption management tasks so developers don’t have to, while also reducing their security risk by ensuring they don’t have to touch data in the clear.

“When we’re looking at those sort of developers — who’re already starting to think about doing it themselves — the biggest differentiator with Evervault is, firstly the speed of integration, but more importantly it’s the management of encrypted data itself,” Curran suggests. “With Evervault we manage the keys but we don’t store any data and our customers store encrypted data but they don’t store keys. So it means that even if they want to encrypt something with Evervault they never have all the data themselves in plaintext — whereas with open source encryption they’ll have to have it at some point before they do the encryption. So that’s really the base competitor that we see.”

“Obviously there are some other projects out there — like Tim Berners-Lee’s Solid project and so on. But it’s not clear that there’s anybody else taking the developer-experience focused approach to encryption specifically. Obviously there’s a bunch of API security companies… but encryption through an API is something we haven’t really come across in the past with customers,” he adds.

While Evervault’s current approach sees app makers’ data hosted in dedicated trusted execution environments running on AWS, the information still exists there as plaintext — for now. But as encryption continues to evolves it’s possible to envisage a future where apps aren’t just encrypted by default (Evervault’s stated mission is to “encrypt the web”) but where user data, once ingested and encrypted, never needs to be decrypted — as all processing can be carried out on ciphertext.

Homomorphic encryption has unsurprisingly been called the ‘holy grail’ of security and privacy — and startups like Duality are busy chasing it. But the reality on the ground, online and in app stores, remains a whole lot more rudimentary. So Evervault sees plenty of value in getting on with trying to raise the encryption bar more generally.

Curran also points out that plenty of developers aren’t actually doing much processing of the data they gather — arguing therefore that caging plaintext data inside a trusted execution environment can thus abstract away a large part of the risk related to these sort of data flows anyway. “The reality is most developers who are building software these days aren’t necessarily processing data themselves,” he suggests. “They’re actually just sort of collecting it from their users and then sharing it with third party APIs.

“If you look at a startup building something with Stripe — the credit card flows through their systems but it always ends up being passed on somewhere else. I think that’s generally the direction that most startups are going these days. So you can trust the execution — depending on the security of the silicon in an Amazon data center kind of makes the most sense.”

On the regulatory side, the data protection story is a little more nuanced than the typical security startup spin.

While Europe’s GDPR certainly bakes security requirements into law, the flagship data protection regime also provides citizens with a suite of access rights attached to their personal data — a key element that’s often overlooked in developer-first discussions of ‘data privacy’.

Evervault concedes that data access rights haven’t been front of mind yet, with the team’s initial focus being squarely on encryption. But Curran tells us it plans — “over time” — to roll out products that will “simplify access rights as well”.

“In the future, Evervault will provide the following functionality: Encrypted data tagging (to, for example, time-lock data usage); programmatic role-based access (to, for example, prevent an employee seeing data in plaintext in a UI); and, programmatic compliance (e.g. data localization),” he further notes on that.

 

News: API platform Postman valued at $5.6 billion in $225 million fundraise

San Francisco-based Postman, which operates a collaborative platform for developers to help them build, design, test and iterate their APIs, said on Wednesday it has raised $225 million in a new financing round that values it at $5.6 billion, up from $2 billion a year ago. The startup’s new financing round — a Series D

San Francisco-based Postman, which operates a collaborative platform for developers to help them build, design, test and iterate their APIs, said on Wednesday it has raised $225 million in a new financing round that values it at $5.6 billion, up from $2 billion a year ago.

The startup’s new financing round — a Series D — was led by existing investor New York-headquartered Insight Partners. New investors including Coatue, Battery Ventures, and BOND also participated in the new round, which brings total raise across rounds to over $430 million. Existing investors Nexus Venture Partners and CRV also participated in the new round.

APIs provide a way for developers to connect their applications to other internal and external applications. But it’s a space that until the past decade not many firms have attempted to streamline. (Developers relied on — and many continue to do so — open source CLI tools such as curl and HTTPie. That said, Postman now has a number of competitors including Stoplight, and A16z and Tiger Global-backed Kong.)

Abhinav Asthana, a former intern at Yahoo, faced this frustration first hand and built a Chrome extension for himself and friends.

Little did he know just how many developers and firms needed it, too.

The six-year-old startup’s product, which began its journey in India, is today used by over 17 million developers and over 500,000 organizations including Microsoft, Salesforce, Stripe, Shopify, Cisco, and PayPal.

The list is big: Postman co-founder and chief executive Asthana told TechCrunch that 98% of the Fortune 500 companies are customers of Postman.

“We are solving a fundamental problem for the technology landscape. Big companies tend to be slower as they have many other things on their plate,” he told me two years ago.

Postman API Platform’s offerings

“Every company in every industry in the world today uses APIs and needs an API platform. This trend is only growing with the move to cloud and digital experiences,” he said in an interview with TechCrunch Tuesday.

The startup today leads the market and doesn’t compete with many players. Which would explain the investors’ excitement. The startup, which declined to share its revenue, raised the new round at over 100 multiple of its revenue, according to an investor with knowledge of the matter.

Postman’s platform is crucial for developers, but it was only recently that the startup expanded to create a public marketplace for developers and firms to find ready-made APIs to use.

“The Postman Public API Network connects millions of developers around the world and provides them with a space dedicated to discovering, exploring, and sharing of APIs. This was ultimately driven by our creation of public workspaces, which allows users to connect across different organizations,” Asthana said.

“With the emergence of APIs, we believe that this will usher in the next generation of no-code and ‘citizen developers.’ We encourage a world filled with innovation for everyone with different backgrounds and varying levels of technical experience. More and more, we’re seeing people in sales, marketing, and finance become more comfortable with APIs and become the champions of this technology,” he said.

The startup, which employs over 425 people, plans to deploy the fresh funding to hire more employees across sales, marketing, product, and engineering divisions.

Postman will also “heavily” invest in broadening its product roadmap. “We are expanding the Postman platform across areas that technical users need along with supporting the needs of business users. At a high level, we are investing in supporting workflows for all kinds of APIs — whether they are private APIs, partner APIs, or public APIs,” he said.

Some upcoming items on the roadmap include a new version of the Postman API, support for protocols like gRPC, ProtoBuf, and more extensive capabilities for GraphQL. “We are also focusing heavily on integrations with other vendors in the software development lifecycle like AWS, Git hosting providers like GitHub and GitLab. We are also releasing our Flow Runner tool, a no-code API composition tool to enable anyone to build API driven programs.”

The startup also plans to invest in supporting students through API literacy programs and contribute toward open source projects.

“APIs have quickly become the fundamental building blocks of software used by developers in every industry, in every country across the globe—and Postman has firmly established itself as the preferred platform for developers,” said Insight Partners Managing Director Jeff Horing in a statement.

“Postman has the opportunity to become a key pillar of how enterprises build, deliver products, and seamlessly enable partnerships across the ecosystem. Their continued, rapid expansion and strong management team point to a future for Postman with virtually unlimited possibilities.”

News: MobileCoin closes on $66 million in equity in Series B round

MobileCoin, a cryptocurrency business that counts founder Moxie Marlinspike of the encrypting messaging app Signal as its earliest technical advisor, has raised $66 million in Series B funding from a long list of investors, including Alameda Research, Berggruen Holdings, BlockTower Capital, Coinbase Ventures, Marc Benioff’s TIME Ventures, Vy Capital, and earlier backers General Catalyst and

MobileCoin, a cryptocurrency business that counts founder Moxie Marlinspike of the encrypting messaging app Signal as its earliest technical advisor, has raised $66 million in Series B funding from a long list of investors, including Alameda Research, Berggruen Holdings, BlockTower Capital, Coinbase Ventures, Marc Benioff’s TIME Ventures, Vy Capital, and earlier backers General Catalyst and Future Ventures.

The all-equity round brings the four-year-old, San Francisco-based company’s total funding to $107 million altogether, including a $30 million round led by Binance Labs back in 2018. According to founder and CEO Joshua Goldbard, the newest round values the outfit at $1.066 billion.

As we reported earlier this year, MobileCoin is focused on enabling privacy-protecting payments made through “near instantaneous transactions” over one’s phone. Indeed, a month after we published that piece, Signal rolled out support for MobileCoin as a payment feature that its users (only in the UK for now) can use to pay for a service or product while enjoying greater privacy than might be possible otherwise.

Marlinspike told Wired back in April that because MobileCoin is a so-called privacy coin designed to protect users’ identities and the details of their payments on a blockchain, that it’s an ideal fit for Signal. “There’s a palpable difference in the feeling of what it’s like to communicate over Signal, knowing you’re not being watched or listened to, versus other communication platforms. I would like to get to a world where not only can you feel that when you talk to your therapist over Signal, but also when you pay your therapist for the session over Signal.”

According to Goldbard, MobileCoin is also being used to transact by users of Mixin Messenger, is a China-based open-source private messenger based on Signal Protocol that enables individuals to send cryptocurrencies to their phone contacts.

MobileCoin’s actual digital coins have fluctuated wildly in value since they began trading in December of last year on the cryptocurrency exchange, FTX, run by entrepreneur Sam Bankman-Fried, who also founded the quantitative crypto trading firm Alameda Research (which just invested in MobileCoin).

It is also available to buy and sell on the non-U.S. crypto trading platforms Bitfinex, BigOne, and HotBit. Goldbard says there’s no reason that U.S. exchanges couldn’t also list the coin for trade, though that’s not the case currently.

“It’s entirely up to [them] when they list assets, and no one knows ahead of time when your asset will be listed,” Goldbard offers, dismissing questions about U.S. regulators who’ve cracked down on similar efforts and pointing instead to MobileCoin’s relatively newness as its biggest challenge right now. “Most coins take a long time to list, to be honest.”

As for whether Goldbard or his early team members have sold some of company’s coins — they spiked in price this past spring — he says that “management has not sold any coins.” Asked whether the same is true of Marlinspike, Goldbard says that he “can’t speak for Moxie.” (Marlinspike told Wired in April that neither he nor Signal owned any MobileCoins at the time. We’ve since asked the company whether Marlinspike has ever owned any MobileCoins and also whether he owns or previously owned shares in MobileCoin as an early advisor to the company and have yet to hear back.)

Even assuming that MobileCoin is more secure than other options, it is still not foolproof. Among the risks involved in storing cryptocurrency on a phone are potentially losing it if the phone is left unlocked or the radio on the phone is hacked or if, say, iOS itself is hacked. 

It does offer another advantage, though, argues Goldbard. He says MobileCoin is more environmentally friendly than  cryptocurrencies like Bitcoin that rely on ‘proof of work,’ where individuals on a network compete with computing power to solve cryptographic puzzles and consume large amounts of electricity along the way.

MobileCoin instead relies on a mechanism called a “federated byzantine agreement,” wherein different validators —  people who agree to store data, process transactions, and add new blocks to the blockchain to earn more cryptocurrency — decide which other validators they trust, and when enough circles of trusted validators overlap, consensus is reached. The algorithm requires fewer people and less energy while remaining decentralized, says Goldbard.

MobileCoin currently has 40 employees and is “hiring as fast as possible,” says Goldbard. Tragically, the company’s head of engineering, Toby Segaran, who was previously an engineer with both Google and Reddit, passed away unexpectedly last week. Meanwhile, MobileCoin brought aboard is first head of compliance, David Ackerman, last month.

News: Felicis Ventures grows along with its returns, gathering up $900 million across two new funds

Fifteen years ago, Aydin Senkut, a former Google exec, was an outsider in venture circles that didn’t take seriously his ambitions to become a top VC. Now, his firm, Felicis Ventures, is announcing $900 million in capital commitments across two new funds — a $600 million early stage fund and a $300 million opportunities-type fund

Fifteen years ago, Aydin Senkut, a former Google exec, was an outsider in venture circles that didn’t take seriously his ambitions to become a top VC. Now, his firm, Felicis Ventures, is announcing $900 million in capital commitments across two new funds — a $600 million early stage fund and a $300 million opportunities-type fund to back its fastest-growing winners — and its limited partners wanted the firm to invest even more.

Yes, a part of that is the current go-go market. Much more, however, ties to Felicis’s performance, which has been strong from nearly its outset and goes a long way in explaining how a firm that initially launched with $4 million from Senkut’s own pocket has, in recent years, has been roughly doubling how much it invests with every new fund. (Its seventh and last flagship fund closed with $510 million in March of last year. According to Felicis, across all funds, including losses, it has now produced 6x cash-on-cash returns for its investors.)

It’s hard to pinpoint how Felicis has managed to be right about so many of its investments, which include early bets on Shopify in Canada, Canva in Australia, and Ayden in Amsterdam.

Shopify, which went public in 2015, is now a $185 billion company. Canva’s private market valuation hit $15 billion this spring. Ayden, which went public in 2018, currently boasts a market cap of $85 billion.

While the firm has long been willing to invest in far-flung places — a differentiator that more firms have begun to copy — it has also chosen well in the U.S., with bets on Plaid (valued at roughly $14 billion right now); publicly traded Guardant Health; Credit Karma (acquired by Intuit for roughly $7 billion); and newly public Recursion Pharmaceuticals (among others).

Asked about its approach, Senkut — who runs the firm with fellow general partners Wesley Chan, Sundeep Peechu, Victoria Treyger, Niki Pezeshki, and an incoming general partner, Viviana Faga — says the firm basically makes both safe and more ambitious bets, writing bigger checks to surer things so it can gamble on new ideas, like a company that makes a sugar substitute.

The partners also stress the importance to the firm of maintaining a high net promoter score. They treat founders well, and founders treat them well, in turn, is the gist, including giving the firm a glowing reference in a competitive situation.

Says Senkut, “We want founders to say, ‘This person has helped me so much, I would almost do anything to take money from this person or to put them on my board,’ versus the traditional method [wherein the VC says], ‘We’re writing a $50 million check and because we invested that money, we’ll dictate who’s on the board and what to do.’”

Not last, says Peechu, who joined Felicis roughly 11 years ago, Felicis often jumps in when the water is still cold. “The fund strategy is not always to make the most amount of money,” he says. “Sometimes, we’re investing to 2% or 3% of a company because that 3% could potentially give us an incredible learning that might help us invest the next $30 million to $50 million in that category.”

Peechu points, for example, to an early bet on video game developer Tapulous that led to a bigger bet on game maker Rovio. “A lot of a lot of people will wait until the first big company is created in a category and they give that company a pool of money,” he notes. “But by that time, 10 years might have passed and you’ve lost a lot of economic opportunity.”

Felicis tends to “risk adjust” instead, he adds. “We say, ‘Hey, I think this interesting category might be emerging,’ Then we go in. Maybe we invest a bit earlier and own a little less, but we pay attention to what’s happening,” he says. “It’s the only way you can understand what’s happening on the field.”

Now, it has far more capital to deploy toward that end. Indeed, its new funds will see Felicis double its investment range from checks that range from $1 million to $25 million to now upwards of $50 million in one slug.

News: Apeel bites into another $250M funding round, at a $2B valuation, to accelerate fresh food supply chains

Apeel developed a plant-based layer for the surface of fruits and vegetables, that is tasteless and odorless, and keeps moisture in, while letting oxygen out.

Apeel Sciences, a food system innovation company, is out to prevent food produced globally from ending up in the landfill, especially as pressures from the global pandemic affect the food supply chain.

The company just added $250 million in Series E funding, giving it a valuation of $2 billion, to speed up the availability of its longer-lasting produce in the U.S. (where approximately 40% of food is wasted), the U.K. and Europe.

Existing investor Temasek led the round and was joined by a group of new and existing investors, including Mirae Asset Global Investments, GIC, Viking Global Investors, Disruptive, Andreessen Horowitz, Tenere Capital, Sweetwater Private Equity, Tao Capital Partners, K3 Ventures, David Barber of Almanac Insights, Michael Ovitz of Creative Artists Agency, Anne Wojcicki of 23andMe, Susan Wojcicki of YouTube and Katy Perry.

With the new funding, Apeel has now raised over $635 million since the company was founded in 2012. Prior to this round, the company brought in $250 million in Series D funding in May 2020.

Santa Barbara-based Apeel developed a plant-based layer for the surface of fruits and vegetables that is tasteless and odorless and that keeps moisture in while letting oxygen out. It is those two factors in particular that lead to grocery produce lasting twice as long, James Rogers, CEO of Apeel, told TechCrunch.

Apeel installs its application at the supplier facilities where the produce is packed into boxes. In addition to that technology, the company acquired ImpactVision earlier this year to add another layer of quality by integrating imaging systems on individual pieces as they move through the supply chain to optimize routing so more produce that is grown is eaten.

“One in nine people are going hungry, and if three in nine pieces of produce are being thrown away, we can be better stewards of the food we are throwing away,” Rogers said. “This is a solvable problem, we just have to get the pieces to the right place at the right time.”

The company is not alone in tackling food waste. For example, Shelf Engine, Imperfect Foods, Mori and Phood Solutions are all working to improve the food supply chain and have attracted venture dollars to go after that mission.

Prior to the pandemic, the amount of food people were eating was growing each year, but that trend is reversed, Rogers explained. Consumers are more aware of the food they eat, they are shopping less frequently, buying more per visit and more online. At the same time, grocery stores are trying to sort through all of that.

“We can’t create these supply networks alone, we do it in concert with supply and retail partners,” he said. “Grocery stores are looking at the way shoppers want to buy things, while we look at how to partner to empower the supply chain. What started with longer-lasting fruits and vegetables, is becoming how we provide information to empower them to do it without adding to food waste.”

Since 2019, Apeel has prevented 42 million pieces of fruit from going to waste at retail locations; that includes up to 50% reduction in avocado food waste with corresponding sales growth. Those 42 million pieces of saved fruit also helped conserve nearly 4.7 billion liters of water, Rogers said.

Meanwhile, over the past year, Apeel has amassed a presence in eight countries, operating 30 supply networks and  distributing produce to 40 retail partners, which then goes out to tens of thousands of stores around the world.

The new funding will accelerate the rollout of those systems, as well as co-create another 10 supply networks with retail and supply partnerships by the end of the year. Rogers also expects to use the funding to advance Apeel’s data and insights offerings and future acquisitions.

Thomas Park, president and head of alternative investments at Mirae Asset Global Investments, said his firm has been investing in environmental, social and governance-related companies for awhile, targeting companies that “make a huge impact globally and in a way that is easy for us to understand.”

The firm, which is part of Mirae Asset Financial Group, often partners with other investors on venture rounds, and in Apeel’s case with Temasek. It also invested with Temasek in Impossible Foods, leading its Series F round last year.

“When we saw them double-down on their investment, it gave us confidence to invest in Apeel and an opportunity to do so,” Park said. “Food waste is a global problem, and after listening to James, we definitely feel like Apeel is the next wave of how to attack these huge problems in an impactful way.”

 

News: Canada Drives raises $79.4 million to expand online car purchasing and delivery platform

Canada Drives currently operates in British Columbia and Ontario. With the new funds, Canada Drives hopes to expand to Alberta in the next month, according to co-CEO Cody Green.

Canada Drives, an online car shopping and delivery platform, announced $79.4 million ($100 million CAD) in Series B funding that it will use to expand its service across Canada. 

It was founded in 2010 as a car financing company but launched an e-commerce platform for new and used vehicles last year. Canada Drives currently operates in British Columbia and Ontario, two provinces that together comprise about half of Canada’s entire population, according to Canada’s 2016 census. With the new funds, Canada Drives hopes to expand to Alberta in the next month, according to co-CEO Cody Green.

The pandemic boosted online shopping in every industry, and car buying is no exception. And now that companies like Canada Drives are beginning to provide a platform to shop and buy, as well as next-day delivery, this market will only continue to grow.

Nobody likes going to the car dealership anyway, and the data support that: A recent study by consumer intelligence company J.D. Power found people are taking to digital car sales because they want to avoid face-to-face interactions and haggling with salespeople, and they like doing paperwork and financing at home. They’re also more likely to buy add-ons when they can shop at their leisure rather than experiencing the pressure of a commission-hungry dealer breathing down their necks.

While there are many online car shopping platforms in the U.S. that have grown in popularity over the past couple of years, like Carvana and Vroom, Canada hasn’t seen the same sort of growth. But with companies like Canada Drives and Clutch, another online car marketplace that recently raised $20 million CAD in seed funding, Canadian entrepreneurs are wising up to the model that’s already been proven across the border. The global chip shortage is also causing a growing market for used vehicles as it becomes more expensive and difficult to purchase new cars.

In order to meet those needs for Canadian consumers, Canada Drives is going to use its recent funding to keep enhancing the product, grow its inventory in existing and new markets, and hire around 200 people over the next year, particularly in product development, Green told TechCrunch.

The company owns its entire inventory of vehicles. It certifies, inspects and reconditions the used cars that come its way, stores them throughout its operating zones and delivers them to the customer’s door when they purchase. Customers get a seven-day trial with their vehicle, and if it’s not to their standard, they can have it picked up and returned with no questions asked.

Green said he expects to see an increasing amount of hybrid or electric vehicles on the platform, and a spokesperson for the company told TechCrunch that Teslas and Nissan Leafs are already quite popular. Canada has a goal to ban the sales of internal combustion engine vehicles by 2035, so it’s a roll of the dice whether the marketplace will be littered with used ICE or flush with used electric vehicles over the next couple of decades. Currently, around 5% of Canada Drives’ inventory is hybrid or electric, said Green.

“Our mission is to be the easiest place to buy or sell your car in Canada, and as consumer preferences change and as countries adopt forward-thinking policies with electric and hybrid, our platform is going to be able to evolve with that,” Green told TechCrunch. “As there’s more and more new electric vehicles, more will become used vehicles, and I think already that is a market that we’re over-indexed on versus the average dealer in Canada.”

This latest funding round brings Canada Drives’ total funding to about $159 million ($200 million CAD) after a $100 million CAD Series A raised in 2019. The Series B round announced Wednesday was led by Jeffrey Housenbold’s Honor Ventures with participation from KAR Global and other strategic investors. 

WordPress Image Lightbox Plugin