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Electric reopens Series B to make room for Dick Costolo and Adam Bain

Published March 10, 2020

Electric, the platform that delivers IT services to small and medium businesses, has today announced that it has raised an additional $14.5 million on its Series B from 01 Advisors, the fund led by Twitter alums Dick Costolo and Adam Bain.

Though the funding is a part of the company’s Series B financing, founder Ryan Denehy explained that the deal was signed on an uptick in valuation, though wouldn’t elaborate further.

Electric raised a $25 million Series B led by GGV in January of 2019.

The company allows businesses with small IT teams, or no IT team, to get on the platform and either automate or manage with one click the various administrative facets of that role. Most IT tasks are focused on administration, distribution and maintenance of software programs.

Electric customers ensure that the software is installed on every corporate machine, effectively giving the top IT employee or decision-maker an easy way to grant and revoke permissions, assign roles and make sure software is up to date on various machines.

The hope is that this allows IT specialists to focus on the jobs that are best suited to their skills, such as troubleshooting, hardware installation and other more difficult tasks.

Denehy said this new fundraise was all about bringing strategic operators under the tent, not cash. He explained that at the close of last year, VCs started reaching out to get in on the company’s Series C. The team sat down for a board meeting where they weighed their options, one of which being a $40 million Series C.

“We have no immediate use for most of that money,” said Denehy. “Is it going to make our customers happy or is it going to make us a better-run company? It’s kind of a philosophical question. A lot of founders sort of equate success to the fact that they raised two rounds within six months of each other, and I just took the contrarian view. I wondered what we could actually do to make our company run better and the conclusion was to get the best business leaders and operators in tech to get around the table at our company.”

This brings Electric’s total funding to just over $50 million. Denehy says part of the reluctance around fundraising stemmed from the fact that Electric had tripled top-line growth over the past two years. But that doesn’t mean he had all the answers when it comes to hyper growth and scaling the business.

Costolo recalled when Bain first met Ryan Denehy, and came back excited about his willingness to learn.

“Ryan is a really enthusiastic founder/CEO,” said Costolo. “Some founders know they don’t have the answers to everything and that there’s still a lot to learn, and they want to learn. And Ryan is right down the middle for that.”

Costolo also explained that he’s excited about how well Electric fits in to the dogma of “software is eating the world,” automating these low-level tasks to free up resources and energy for higher-order tasks.

Costolo and Bain operate slightly unusually for a growth-stage fund (01 Advisors writes checks for later A rounds and B rounds). The duo don’t want to take board seats, as they’d rather be “sitting next to the founder instead of across the table from the founder.”

This results in a hands-on approach based on their experience as operators. Remember, Costolo grew Twitter to a market cap of $23.4 billion before stepping down, and Bain spent six years at Twitter as president of Global Revenue and Partnerships before stepping into the COO role.

Costolo and Bain have already brought their hands-on approach to Electric, having conversations with the head of HR around how to introduce HR business partners to different departments and how to scale and set goals for the enterprise sales team.

MessageBird launches Inbox.ai to disrupt the customer service market

Published March 10, 2020

MessageBird, the Amsterdam-headquartered cloud communications platform backed by Accel in the U.S. and Europe’s Atomico, is unveiling another new product today, this time taking aim at the $350 billion customer service market.

Dubbed Inbox.ai and positioned as “Slack for external communications,” the new product — which is to be offered largely for free — enables customers to communicate with businesses via practically any channel of their choosing. This includes WhatsApp, SMS, Voice, Messenger, Instagram, WeChat, Apple Business Chat, RCS, Line and Telegram — in a bid to meet customers on their own digital, “messaging-first” turf. In terms of message content, at launch there is already support for text, images, video, geolocation and more.

And perhaps crucially, regardless of channel, incoming messages and customer conversations are presented in a single thread for easy ticketing and collaboration amongst support agents. There’s some built in intelligence, too, with “AI” promising to analyse keywords and anticipate customer needs, including providing a list of suggested replies. Agents can also drag and drop components to create auto-replies, and there’s support for things like automated NPS surveys, or rules for message routing.

As you’d expect from a company that has primarily targeted developers, Inbox.ai leverages webhooks for integration with various third-party tools used by enterprises and also comes pre-loaded with support for Shopify, Slack, Salesforce, Jira, and more. This includes the ability to have content created within Inbox.ai synced with other software used by a company for its various communication, sales and other business processes — even if over time, and for some companies, Inbox.ai may become all they need.

In a video call with MessageBird founder and CEO Robert Vis, he gave me a personal demo of Inbox.ai, including showing how quick the on-boarding process can be for a new business but also for a new customer. He had me WhatsApp a company’s support number and I could instantly see my message show up within the software and was able to send a photo to help with my request and receive other rich media in return.

Vis explained that the impetus for the new offering was his own frustration with customer support from companies in general, who, he says, haven’t adapted to the new world where customers expect to have their issues solved digitally and where it is no longer acceptable to queue for hours on hold or wait 24 hours or more for an email reply.

He says that a quick back of a napkin calculation suggests that, at the age of 35, he has already spent 2 weeks of his life on hold. He also said Inbox.ai wants to solve the continuity of support problem that typically sees customers having to re-explain their issue each time they are handed off to a different support agent or department.

“From a MessageBird perspective, we built these APIs and people [already] have the possibility to build these experiences, so why am I not living in this world?” Vis says rhetorically, after recalling a recent bad experience with his mobile telephone service provider. “I want to live in a world where I can text and have my problems easily solved… What I don’t want is for them to drop me a note into my email and then have to call them”.

So, rather than simply providing developer hooks and carrying out the infrastructure heavy-lifting, MessageBird is betting on its first user-facing product, which, I’m told, raised a few eyebrows amongst the board.

To that end, Vis told me that Inbox.ai was developed by the MessageBird team in 12 months and followed extensive research with customers, support agents and managers. Prior to launch, the software has been tested and is currently used by, HelloFresh and Deliveroo in Europe, Zilingo in Asia, and Join Buggy and Tix Telecom in Latin America.

Challenged on why nobody has really cracked this problem so far, despite a number of attempts to create a single source of customer support “truth,” Vis told me “everybody is talking about it but nobody is doing it”. That’s because you need to understand and then solve three related and difficult problems.

The first is ingesting data from all the various communication channels, for which MessageBird has previous form. The second is “experience generation”: the ability for support agents to easily communicate via rich experiences, such as images, videos, geolocation, tracking codes, discounts etc. That’s something most companies don’t have the developer resources to create, argues Vis. And thirdly is the UI, which has to allow agents to communicate and track tickets seamlessly across channels in a way that is agnostic to where those messages originate from.

“I think this is a new category, I think this is where things converge together,” adds the MessageBird CEO. “We compete with a lot of tools but we’re not any of them. We’re how we think in five years every tool is going to be”.

BackboneAI scores $4.7M seed to bring order to intercompany data sharing

Published March 10, 2020

BackboneAI, an early-stage startup that wants to help companies dealing with lots of data, particularly coming from a variety of external sources, announced a $4.7 million seed investment today.

The round was led by Fika Ventures with participation from Boldstart Ventures, Dynamo Ventures, GGV Capital, MetaProp, Spider VC and several other unnamed investors.

Company founder Rob Bailey says he has spent a lot of time in his career watching how data flows in organizations. There are still a myriad of challenges related to moving data between organizations, and that’s what his company is trying to solve. “BackboneAI is an AI platform specifically built for automating data flows within and between companies,” he said.

This could involve any number of scenarios from keeping large, complex data catalogues up-to-date to coordinating the intricate flow of construction materials between companies or content rights management across an entertainment industry.

Bailey says that he spent 18 months talking to companies before he built the product. “What we found is that every company we talked to was, in some way or another, concerned about an absolute flood of data from all these different applications and from all the companies that they’re working with externally,” he explained.

The BackboneAI platform aims to solve a number of problems related to this. For starters, it automates the acquisition of this data, usually from third parties like suppliers, customers, regulatory agencies and so forth. Then it handles ingestion of the data, and finally it takes care of a lot of actual processing from external sources, while mapping it to internal systems like the company ERP system.

As an example, he uses an industrial supply company that may deal with a million SKUs across a couple of dozen divisions. Trying to track that with manual or even legacy systems is difficult. “They take all this product data in [from external suppliers], and then process the information in their own [internal] product catalog, and then finally present that data about those products to hundreds of thousands of customers. It’s an incredibly large and challenging data problem as you’re processing millions and millions of SKUs and orders, and you have to keep that data current on a regular basis,” he explained.

The company is just getting started. It spent 2019 incubating inside of Boldstart Ventures . Today the company has close to 20 employees in New York City, and it has signed its first Fortune 500 customer. Bailey says they have 15 additional Fortune 500 companies in the pipeline. With the seed money, he hopes to build on this initial success.

Edtech startups prepare to become ‘not just a teaching tool but a necessity’

Published March 9, 2020

As Stanford, Princeton, Columbia and others shutter classrooms to limit the coronavirus outbreak, college educators around the country are clambering to move their classes online.

At the same time, tech companies that enable remote learning are finding a surge in usage and signups. Zoom Video Communications, a videoconferencing company, has been crushing it in the stock market, and Duolingo, a language teaching app, has had 100% user growth in the past month in China, citing school closures as one factor.

But Kristin Lynn Sainani, an associate professor of epidemiology and population health at Stanford, has a fair warning to those making the shift: scrappiness has its setbacks.

“[The transition to online] is not going to be well planned when you’re doing it to get your class done tomorrow,” said Sainani, who has been teaching online classes since 2013. “At this point, professors are going to scramble to do the best they can.”

As the outbreak spreads and universities respond, can edtech startups help legacy institutions rapidly adopt online teaching services? And perhaps more tellingly, can they do so in a seamless way?

Immutouch wristband buzzes to stop you touching your face

Published March 9, 2020

In the age of coronavirus, we all have to resist the urge to touch our faces. It’s how the virus can travel from doorknobs or other objects to your mucus membranes and get you sick. Luckily, a startup called Slightly Robot had already developed a wristband to stop another type of harmful touching — trichotillomania, a disorder that compels people to pull out their hair.

So over the last week, Slightly Robot redesigned their wearable as the Immutouch, a wristband that vibrates if you touch your face. Its accelerometer senses your hand movement 10 times per second. Based on calibrations the Immutouch takes when you set it up, it then buzzes when you touch or come close to touching your eyes, nose, or mouth. A companion app helps you track your progress as you try to keep your dirty mitts down.

The goal is to develop a Pavlovian response whereby when you get the urge to touch your face, you don’t in order to avoid the buzzing sensation. Your brain internalizes the negative feedback of the vibration, training you with aversive conditioning to ignore the desire to scratch yourself.

“A problem the size of COVID-19 requires everyone to do their part, large or small,” says Slightly Robot co-founder Matthew Toles. “The three of us happened to be uniquely well equipped to tackle this one task and felt it was our duty to at least try.”

The Immutouch wristbands go on sale today for $50 each and they’re ready for immediate shipping. You can wear it on your dominant hand that you’re more likely to touch your face with, or get one for each arm to maximize the deterrent.

“We’re not looking to make money on this. We are selling each unit nearly at cost, accounting for cost of materials, fabrication, assembly, and handling” co-founder Justin Ith insists. Unlike a venture-backed startup beholden to generating returns for investors, Slightly Robot was funded through a small grant from the University of Washington in 2016 and bootstrapped since.

Slightly Robot and Immutouch co-founders (from left): Joseph Toles, Justin Ith, and Matthew Toles

“We built Immutouch because we knew we could do it quickly, therefore we had the obligation to. We all live in Seattle and we see our communities reacting to this outbreak with deep concern and fear” Slightly Robot co-founder Justin Ith tells me. “My father has an autoimmune disease that requires him to take immunosuppressant medication. Being in his late 60’s with a compromised immune system, I’m trying my best to keep the communities around him and my family clean and safe.”

How to calibrate the Immutouch wristband

Based on a study using wearable warning devices to deter sufferers of trichotillomania from ripping out their hair, Immutouch could potentially be effective. University Of Michigan researchers found the vibrations reduced long and short-term hair pulling. Ith admits you have to actually heed the warnings and not itch to instill the right habit, and it doesn’t work while you’re lying down. The Immutouch stops short of electrically shocking you like the older gadget called Pavlok that’s designed to help people quit smoking or opening Facebook.

Perhaps smartwatch makers like Apple could develop cheap or free apps to let users train themselves using hardware they already own. But until then, Ith hopes that Immutouch can gain some initial traction so “we can order larger quantities, reduce the price, and make it more accessible.”

Modern technologies like Twitter for rapidly sharing information could encourage people to take the right cautionary measures like 20-second handwashing to slow the spread of coronavirus. But having phones we constantly touch — before, during, and after we use the restroom — and then press against our faces could create a vector for infection absent from pandemics of past centuries. That’s why everyone needs to do their part to smooth out the spike of sickness so our health systems aren’t overrun.

Ith concludes, “Outbreaks like this remind us how we each individually affect the broader community and have a responsibility to not be carriers.”

Wait, you all haven’t been wiping down your smartphones this whole time?

Published March 9, 2020

A small consolation in the growing COVID-19 crisis is that some of our moderate germophobia has begun to feel like a minor super power. As I got settled for a cross-country flight last week, I took out my hand wipes and did a whole number on the screen, tray table and arm rests, and this time no one looked at me funny.

I go to a lot of conferences and trade shows and have to shake a lot of hands (though I’ve taken to the elbow bash in recent weeks) before handling my phone. Years ago, I switched from Purell bottles to hand wipes for two reasons:

Hand sanitizer feels like lacquering the dirt on. This is probably another weird quirk, so do with that what you will.
I touch my phone — and computer — a lot. I almost never leave the house without a product like Wet Ones in my bag. Hell, I included them in a travel gift guide last year. Merry Christmas, Billy, here’s the packet of antibacterial wipes you wanted but were too afraid to ask.

For those concerned about damage to your devices, fear not. Apple, which has never been prone to recklessness for such things, just gave disinfecting wipes a green light on its “How to clean your Apple products” that covers Mac, iPad, iPhone and iPod, among others.

Using a 70 percent isopropyl alcohol wipe or Clorox Disinfecting Wipes, you may gently wipe the hard, nonporous surfaces of your Apple product, such as the display, keyboard, or other exterior surfaces. Don’t use bleach. Avoid getting moisture in any opening, and don’t submerge your Apple product in any cleaning agents. Don’t use on fabric or leather surfaces.

iPhones these days sport IP67 or IP68 ratings. If it detects moisture in the Lightning port, it will throw up a “Charging not Available” warning. It’s best to avoid getting the port wet if you can, but that’s a nice fall back.

So, wipe, wipe away. Assuming, of course, you can still find them.

Facebook Stories tests cross-posting to its pet, Instagram

Published March 9, 2020

Facebook’s latest colonization of Instagram has begun. Facebook is testing the option to cross-post Stories to Instagram, instead of just vice-versa. Hopefully, that means the two apps will finally sync up the “already viewed” status of cross-posted Stories so we don’t have to watch re-runs any more, as I harped about in January.

If fully launched, the cross-posting feature could save social media managers and average users time while letting them maximize the views on the content they create. It could also give a little boost to the total Stories available on Instagram so its algorithm has more to choose from when ranking what it shows first.

But the change could also been seen as the most invasive injection of parent company Facebook’s identity into Instagram — which has been steadily increasing since Instagram’s co-founders left the company in late 2018 as their autonomy dwindled. Facebook has already pasted an “Instagram – From Facebook” title screen into the photo-sharing app’s boot-up phase, and added an Open Facebook button to its settings menu. Instagram added cross-posting of its Stories to Facebook in October 2017, allowing its parent to piggyback on the popularity of its ephemeral content.

Facebook Stories, Instagram Stories and WhatsApp Status all had 500 million daily users as of a year ago, while Snapchat as a whole has just 218 million users.

The screenshot of the Facebook-to-Instagram cross-posting feature was generated from the Facebook for Android app code by Jane Manchun Wong. She’s the renowned reverse engineering expert who has furnished TechCrunch with tips on dozens of unreleased features that went on to officially launch. When you’ve shot a Facebook Story and are about to post it, you can tap Privacy to review who you’re sharing with. In addition to the Public, Friends, Custom and Hide From options, Facebook is testing a Share To Instagram toggle that appears to turn on continuous cross-posting of that post and future ones.

A Facebook spokesperson tells me that the company is now formally testing the cross-posting feature to make it easier to share moments with the people who matter to you, as people might have different audiences and followers on Facebook versus Instagram. Facebook will continue to explore options for simplifying and improving how Stories work across its apps. That means it’s out of the internal-only prototyping phase and is now being tested with users in the wild.

Yo Facebook & Instagram, stop showing Stories reruns

With any luck, Facebook and Instagram will eventually sync up data about which Stories you’ve watched on either app, and avoid showing you exact copies of ones you’ve already seen. I made my case for this to Instagram’s leadership at a recent press dinner, noting how reruns waste hundreds of millions of people’s time and lead them to close Stories or the app altogether. I asked Facebook about that specifically; they declined to comment.

Creating two-way interoperability of Stories is a precursor to Facebook’s efforts to unify its Messenger, WhatsApp and Instagram Direct chat features. That could extend end-to-end encryption across the apps, protecting messages from prying eyes. But there’s been government grumbling about how encryption could hide the activity of criminals, and some see intertwining the chat features as a way to make it harder for regulators to break up Facebook.

Why Instagram’s founders are resigning: independence from Facebook weakened

Apple could add mouse cursor support to the iPad

Published March 9, 2020

According to a report from 9to5mac, Apple could be working on full cursor support for the next major version of iOS and iPadOS. The report is based on code of an early version of iOS 14 and iPadOS 14.

If Apple ships that new feature, it means that you’ll be able to use a Bluetooth mouse or trackpad with your iPad to move a cursor around the screen. It would work pretty much like a mouse on a desktop computer.

Apple has already added basic support for an external mouse in the current version of iPadOS. It can be enabled in the Accessibility settings. But it basically mimics a finger on the screen.

With full cursor support, you can expect your cursor to change when you hover over a link, for instance. You could right click on some elements, as well.

According to this early version of iOS 14, the cursor will disappear after a few seconds if you don’t move the mouse. It reappears when you move the mouse again. On a Mac, the cursor disappears when you start typing text.

There are also multiple signs that seem to indicate that Apple is working on a new Smart Keyboard for the iPad and trackpad shortcuts — tap to click, tap with two fingers to right click, etc. It could mean that the next Smart Keyboard will feature a trackpad below the keyboard.

Although iOS and iPadOS share the same code base, I wouldn’t expect cursor support on the iPhone. Cursor support seems to be particularly useful on a bigger screen, such as the iPad. You can also connect the most recent iPad Pro models to an external monitor thanks to its USB-C port.

In 2017, with iOS 11, Apple brought many design metaphors from the Mac to the iPad. The company introduced a Dock at the bottom of the screen as well as a new Files app. iOS still feels like a completely different operating system from macOS. But it is interesting to see that some important desktop features also work quite well on an iPad.

Calmer You fills in the gaps in meditation apps for anxiety sufferers

Published March 9, 2020

Meditation and mindfulness apps are booming. The top 10 apps pulled in $195 million in 2019, up 52% from the year before. Now, top meditation app Headspace’s former head of research, Nick Begley, is launching a new app that goes beyond mindfulness to specifically address the needs of those suffering from anxiety. The app, called Calmer You, offers a combination of activities, including not only guided meditation, but also journaling, cognitive behavioral therapy coursework and other health and wellness material.

The latter includes things like fitness videos, sleep stories and interviews with celebrities and inspirational people on their experiences with anxiety, among other things.

Begley worked for Headspace for two years, where he learned about the power of meditation apps to aid with self-development, he says.

“I realized that it doesn’t have to be limited to just mindfulness,” explains Begley, as to how he got started with Calmer You. “There’s so much good advice out there, but just passively digesting it — watching videos or reading books — which is what most of us do when we want to improve, simply doesn’t deliver the changes that they promise,” Begley says.

The problem isn’t that the advice isn’t good — it typically is. But people struggle with putting the advice into action, Begley says. That’s where Calmer You aims to help.

The app includes a few different components, including a 28-session course that helps guide you step-by-step to better understanding anxiety and helping to learn techniques to manage it. This includes cognitive-behavioral therapy, mindfulness, compassion-focused therapy, analytic techniques and more. In addition, there’s a toolkit with more than 50 quicker practices that are recommended based on how you’re feeling in a given moment or whatever situation you may be in. A journal for tracking how you feel day-by-day is available, as well.

Customers subscribe to the app for $7.99 per month or $47.99 per year.

“We didn’t specifically aim to fill the gaps of Headspace, but this is what users have mentioned,” Begley says. “A lot of people find it hard to regularly meditate, and so we wanted to provide tools and practices — in addition to mindfulness — to help people with anxiety. We wanted to provide a premium quality app experience that provides a more comprehensive approach to specifically helping manage anxiety and the many ways in which it manifests,” he adds.

Calmer You was developed in collaboration with anxiety expert and author Chloe Brotheridge, whose book “The Anxiety Solution: A Quieter Mind, a Calmer You” contributes to the app’s name. The team was familiar with Brotheridge’s book and reached out to her to see if she would be open to building an app based on her actionable advice.

This is a part of Calmer You’s parent company PSYT’s agenda — turning self-help books into apps.

The Calmer You team, via PSYT, also includes psychologists. But the app itself isn’t yet validated through things like randomized control trials, for example. That’s something they’d like to do further down the road, however.

Calmer You is also more geared toward women, as much of Brotheridge’s own work was particularly focused on anxiety’s impact on young women.

“For as long as I can remember, I’ve struggled with anxiety and I had to work out what worked best for me,” said Brotheridge. “This is why as a therapist, I teach people many different techniques so they can find what works best for them, not just mindfulness. While it took a lot of work to include multiple approaches in the app, I think it’s essential to help empower people to find the practices that work best for them and their situation,” she says.

Since the app’s launch into beta testing in November 2019, the company has been adding tools to respond to what users said they needed help with, including two new “rebalancing” tools (one for calming social anxiety, another to help communicate confidently), a worry journal for evening use and several more guided meditations and sleep stories.

The app shouldn’t be used instead of visiting a doctor for severe cases of anxiety, but could be slotted into a user’s routine if they’re already using a meditation app, like Headspace, to aid with feelings of anxiety on a regular basis.

Calmer You is a free download on iOS with a subscription business model.

Spotify rolls out a more personalized home screen to users worldwide

Published March 9, 2020

Spotify has been slowly rolling out a redesigned mobile app in small sections — first with an update to podcast pages, then to other parts of the experience. Today, the company is revamping the most critical part of the Spotify app: the home screen. Now, when Spotify users launch the app, they’ll notice the new home screen greets them depending on what time of day it is with a “Good Morning,” “Good Afternoon” or “Good Evening,” for example. But the screen’s content and recommendations will also change with the time of day, Spotify says, and the content has also been better organized so you more easily jump back in or browse recommendations from the main page.

Before, Spotify’s home screen emphasized your listening history by putting at the top of the page things like your “Recently Played,” “Your Top Podcasts” and “Your Heavy Rotation.”

Effectively, the update separates the app’s home screen into two main parts: familiar content on top and new or recommended content on the bottom half.

Now, the home screen reserves six spots underneath the daily greeting where you can continue with things like the podcast you stream every morning, your workout playlist or the album you’ve been listening to on heavy rotation this week. This content will update as your day progresses to better match your activities and interests, based on prior behavior.

Beneath these six spots, the home page will display other things like your top podcasts, “made for you” playlists, recommendations for new discoveries based on your listening and more.

The concept for the new home screen is similar to what Pandora recently rolled out with its personalized “For You” tab late last year. Like Spotify, Pandora’s tab also customizes the content displayed based on the time of day, in addition to the day of the week and other predictions it can make about a customer’s mood or potential activity, based on prior listening data.

Pandora’s revamp led to double the number of users engaging with the personalized page, compared with the old Browse experience, it says. Spotify, too, is likely hoping to see a similar bump in usage and engagement, as users won’t have to dart around the app as much to find their favorite content or recommendations. That way, they’ll be able to start streaming more quickly after the app is launched, potentially leading to longer sessions and more discovery of new content.

Spotify to date has defined itself by its advanced personalization and recommendation technology, but its app hasn’t always been the easiest to use and navigate — especially in comparison to its top U.S. rival, Apple Music, which favors a simpler and cleaner look-and-feel. Its recent changes have tried to address this problem by making its various parts and pages easier to use.

Spotify says the updated home screen will roll out starting today to all global users with at least 30 days of listening history.