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Ordway lands $10M Series A to bridge gap between sales and finance

Ordway, a Washington, DC startup, is building a platform to deal with all of the stuff that happens after you make sale. It starts with the order and goes all the way to revenue as a one-time payment or recurring subscription. Today the company announced a $10 million Series A.

CRV led the round with participation from Clocktower Ventures and existing investors Lerer Hippeau and Revolution Rise of the Rest fund. The company has now raised a total of $12.5 million, according to Crunchbase data.

Sameer Gulati, founder and CEO at Ordway, says the company wanted to build a flexible tool to sit between the CRM and financial systems of a company. “So in that sense, we do everything for post-sales from billing automation, payment collection, revenue recognition, analytics, all the way to cash. We have a streamlined workflow for managing order to revenue,” Gulati told TechCrunch.

It sounds a lot like the Quote-to-Cash space where companies like Apttus (acquired by Thoma Bravo in 2018) or SteelBrick (acquired by Salesforce in 2015) tried to stake a claim, but Gulati says while his company’s solution handles the quote-to-cash workflow, it can do much more than that.

“We absolutely can handle the workflow from quote to billing to payments to revenue, for sure. But the reason Ordway has a niche is because we are a lot more configurable and a lot more flexible to accommodate any workflow out there,” he said.

He says his company’s solution connects to the CRM system on one side and the financial systems on the other. They are compatible with all the major CRM tools including Salesforce and Dynamics 365. And they support a range of financial tools like NetSuite or QuickBooks.

“In fact, we can work with any back-end small system to a large scale ERP system, but our value add is automating the movement of data into the ERP. So we are the operational framework between sales and traditional ERP. We will handle everything in between,” he said.

As for the funding, Gulati has the kind of plans you would expect with a Series A investment. “The core goal is definitely to accelerate all aspects of our business from sales and marketing to product and engineering, and most importantly, customer success. Basically, in a sense we are doubling down on making sure our customers are successful in solving their core sales to finance business challenges,” he said.

The company launched in 2018 and has 25 employees today. Gulati says his company’s goal is to grow 4x in the next 12 months and grow employees at a similar rate.

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Cloud spending said to top $30B in Q4 as Amazon, Microsoft battle for market share

We all know the cloud infrastructure market is extremely lucrative; analyst firm Canalys reports that the sector reached $30.2 billion in revenue for Q4 2019.

Cloud numbers are hard to parse because companies often lump cloud revenue into a single bucket regardless of whether it’s generated by infrastructure or software. What’s interesting about Canalys’s numbers is that it attempts to measure the pure infrastructure results themselves without other cloud incomes mixed in:

As an example, Microsoft reported $12.5 billion in total combined cloud revenue for the quarter, but Canalys estimates that just $5.3 billion comes from infrastructure (Azure). Amazon has the purest number with $9.8 billion of a reported $9.95 billion attributed to its infrastructure business. This helps you understand why in spite of the fact that Microsoft reported bigger overall cloud earnings numbers and a higher growth rate, Amazon still has just less than double Microsoft’s market share in terms of IaaS spend.

That’s not to say Microsoft didn’t still have a good quarter — it garnered 17.6% of revenue for the period. That’s up from 14.5% in the same quarter a year ago. What’s more, Amazon lost a bit of ground, according to Canalys, dropping from 33.4% in Q4 2018 to 32.4% in the most recent quarter.

Part of the reason for that is because Microsoft is growing at close to twice the rate as Amazon — 62.3% versus Amazon’s 33.2%.

Meanwhile, number-three vendor Google came in at $1.8 billion for pure infrastructure revenue, good for 6% of the market, up from 4.9% a year ago on growth rate 67.6%. Google reported $2.61 billion in overall cloud revenue, but that included software. Despite the smaller results, it was a good quarter for the Mountain View-based company.

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Twitter acquires Stories template maker Chroma Labs

Is “Twitter Stories” on the way? Or will we just get tools to send prettier tweets? Well now Twitter has the talent for both as it’s just acquired Chroma Labs. Co-founded by Instagram Boomerang inventor John Barnett, Chroma Labs’ Chroma Stories app let you fill in stylish layout templates and frames for posting collages and more to Instagram Stories, Snapchat, and more.

Rather than keeping Chroma Stories around, Twitter will be splitting the Chroma Labs squad up to work on its product, design and engineering teams. The Chroma Stories iPhone app won’t be shut down, but it won’t get more updates and will only work until there’s some breaking change to iOS.

Thrilled to welcome the amazing @Chroma_Labs team including @picturejohn, @alexli, @joshuacharris to @Twitter.

They’ll join our product, design, and eng teams working to give people more creative ways to express themselves on Twitter 🎨💬

— Kayvon Beykpour (@kayvz) February 18, 2020

“When we founded Chroma Labs in 2018, we set out to build a company to inspire creativity and help people tell their visual stories. During the past year, we’ve enabled creators and businesses around the world to create millions of stories with the Chroma Stories app” the Chroma Labs team writes on its site. “We’re proud of this work, and look forward to continuing our mission at a larger scale – with one of the most important services in the world.”

We’ve reached out to Twitter for more details on the deal and any price paid. [Update: Twitter confirms this is an acquisition, not just and acquihire of the team as it first appeared, though Chroma Stories is shutting down. It refused to disclose the terms of the acquisition, but said all seven employees of Chroma Labs are coming aboard. The team will be working on the Conversations division at Twitter, and the deal is meant to boost its talent, leadership, and expertise for serving public discussions. A Twitter spokesperson also confirms that Chroma will shut down its .business and future versions of the app will not be available.]

Founded in late 2018, Chroma Labs had raised a seed round in early 2019 and counted Sweet Capital, Index Ventures, and Combine VC as investors. Barnett’s fellow co-founders include CTO Alex Li, who was an engineering manager on Facebook Photos and Instagram Stories; and Joshua Harris was a product design manager on the Oculus Rift and Facebook’s augmented reality filters.

With Chroma Stories, you could choose between retro filters, holiday themed frames, and snazzy collage templates to make your Storie look special amidst the millions posted each day. Sensor Tower estimates Chroma Stories had 37,000 downloads to date. That tepid reception despite the app’s quality might explain why the team is joining Twitter.

By snatching up some of the smartest talent in visual storytelling, Twitter could give its text-focused app some spice. It’s one of the few social apps without a Stories product already, and its creative tools are quite limited. Better ways to lay out photos in tweets could make Twitter more beautiful and less exhausting to sift through. That might make it more appealing to teens and help it boost its user count, which now lags behind Snapchat.

Twitter has become the world’s public record for words. The Chroma Labs talent might make it the real-time gallery for art and design as well.

[Update 3:05pm Pacific: Twitter confirms that this is a full acquisition of the Chroma Labs company, not just an acquisition as we originally printed.]

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Do trade shows still matter in the age of online business?

The death of Mobile World Congress 2020 started as a trickle.

First, it was an understandably nervous ZTE. As a Chinese company, it was undoubtedly going to receive extra scrutiny — never mind that ZTE’s Shenzhen headquarters are a two-hour flight from Wuhan. Soon enough, South Korea’s LG backed out, followed by Nvidia and Ericsson.

By the weekend, as deaths from the coronavirus rose to more than 800 (surpassing SARS in the process), event organizers GSMA put strict guidelines in place for approximately 100,000 expected attendees:

  • No travelers from the Hubei province would be permitted access.
  • Attendees were required to prove that they were outside China for 14 days prior to the event (passport stamp, health certificate).
  • Temperature screening was to be implemented.
  • Attendees needed to self-certify they had not been in contact with anyone infected.

Ultimately, it was too late. Soon enough, Amazon was out and the list ballooned to dozens of companies, including AT&T, Intel, Nokia, Sony and Vodafone. Each offered a similar boilerplate response, noting the cost-benefit analysis for sending staff to a large international show amid concerns of a global epidemic.

PCMag’s Sascha Segan wrote a piece worth reading on “snowballing hysteria” around a trade show killed in a country that only had two reported cases at the time of cancellation. It’s a valid point, though speaking purely pragmatically, I can understand why companies felt obligated to back out.

If you want to give them the benefit of the doubt, there are some valid concerns about sending employees into the petri dish of colds and flus that is basically every trade show, coupled with the novelty of a new and still not completely understood virus. It can be difficult to balance concerns for employee safety with the need to resist panicking over media reports that tend to overemphasize threats.

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Dell sells RSA to consortium led by Symphony Technology Group for over $2B

Dell Technologies announced today that it was selling legacy security firm RSA for $2.075 billion to a consortium of investors led by Symphony Technology Group. Other investors include Ontario Teachers’ Pension Plan Board and AlpInvest Partners.

RSA came to Dell when it bought EMC for $67 billion in 2015. EMC bought the company in 2006 for a similar price it was sold for today, $2.1 billion. The deal includes several pieces, including the RSA security conference held each year in San Francisco.

As for products, the consortium gets RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence — in addition to the conference. At the time of the EMC acquisition, in a letter to customers, Michael Dell actually called out RSA as one of the companies he looked forward to welcoming to the Dell family after the deal was completed:

I am excited to work with the EMC, VMware, Pivotal, VCE, Virtustream and RSA teams, and I am personally committed to the success of our new company, our partners and above all, to you, our customers.

Times change however, and perhaps Dell decided it was simply time to get some cash and jettison the veteran security company to go a bit more modern, as RSA’s approach no longer aligned with Dell’s company-wide security strategy.

“The strategies of RSA and Dell Technologies have evolved to address different business needs with different go-to-market models. The sale of RSA gives us greater flexibility to focus on integrated innovation across Dell Technologies, while allowing RSA to focus on its strategy of providing risk, security and fraud teams with the ability to holistically manage digital risk,” Dell Technology’s chief operating officer and vice chairman Jeff Clarke, wrote in a blog post announcing the deal.

Meanwhile, RSA president Rohit Ghai tried to put a happy spin on the outcome, framing it as the next step in the company’s long and storied history. “The one constant in every episode of our existence has been our focus on the success of our customers and our ability to endure through market disruption by innovating on behalf of our customers,” he wrote in a blog post on the RSA company website.

The deal is subject to the normal kinds of regulatory approval before it is finalized.

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Secret’s founder returns with anti-loneliness app Ikaria

“I don’t feel good about that. That sucks,” Chrys Bader-Wechseler reflects when asked about the bullying that went down on the anonymous app Secret he co-founded in 2013. After $35 million raised, 15 million users and a spectacular flame out two years later, the startup was dead. “Since I left Secret I feel alive and aligned with my values and my purpose again.” 

But there was one bright side to Secret letting you post without a name or consequences. People opened up, got vulnerable and felt less alone when comments revealed they weren’t the only person dealing with a certain struggle. What Bader learned from watching Secret’s users “do this in the dark” was the realization that “actually, we need to learn to do this in the light, to have that same kind of dialogue, but do it openly with each other.”

So began the journey to Bader’s new startup Ikaria that’s exclusively revealing itself to the world today on TechCrunch. It’s a different kind of chat app, named after the Greek island where a close-knit community helps extend people’s lifespans. The six-person Santa Monica team is funded by a $1.5 million seed round led by Initialized Capital and Fuel Capital. People can sign up for early beta access here.

During a long interview about the startup, Bader and his co-founder Sean Dadashi were cagey about exactly how Ikaria works, as it’s still in development. Amidst all the philosophical context about the app’s intention, I was able to pull out a few details about what the product will actually look like.

“Basically, since 2004, technology has created this monumental shift in the human social experience. We’re more connected than ever technically but all the studies show we’re lonelier than ever,” Bader explains. “It’s like eating McDonald’s to get healthy. It’s not the right source of nutrition for our social well-being because true connection requires a level of vulnerability, presence, self-disclosure and reciprocity that you don’t really get on these platforms.”

Ikaria isn’t another feed. It’s a safe space where you can chat with close friends and family, or people going through similar life challenges. Members of these group chats will optionally go through guided experiences that help them reflect on and discuss what’s going on in their hearts and minds. This could become a whole new media format where outside creators or mental health professionals could produce and contribute their own guided experiences.

“Part of the reason we’re announcing this is that . . . it’s a call to action to involve all these practitioners and people who are doing these types of things and giving them a platform to allow them to facilitate these kind of group bonding experiences through a platform where they can extend their practices into the digital world,” Bader tells me. What Calm and Headspace did for making meditation more mainstream and accessible, Ikaria wants to do for mental health through online togetherness.

Ikaria already has a sizable closed beta going, which the startup plans to continue until it finds product fit, and it hopes to know its official release timeline by the end of the year. “We’re not going to launch this until we know 40% of people would be disappointed if they couldn’t use it.”

Rather than monetizing by exploiting people’s attention, Ikaria plans to develop a “customer relationship” with users, which could mean subscription access or in-app payments for buying content. Perhaps one user could act as the sponsor and purchase an experience for their whole group chat. Until then, it’s got its seed funding from Initialized, Fuel Capital, F7 Ventures, Ryan Hoover’s Weekend Fund, Backend Capital, Day One Ventures, Shrug, Todd Goldberg and Superhuman’s Rahul Vohra.

“The hope is that eventually this would be an app you use instead of iMessage, to increase your sense of presence,” Bader explains, revealing its grand ambitions. Why would we need to replace our core chat apps? Well for one thing, they don’t understand who really matters to you. If an app understood who your mom is, it could give her messages special prevalence or remind you to contact her.

Bader met Dadashi through an offline men’s group for discussing life, love and everything in the wake of Secret’s collapse and a rough romantic breakup. After just a few weeks of these meetups, they say they felt closer to each other than to most of their friends. Only later did Bader, a designer by trade, discover that Dadashi was a coder who’d been CTO of electronics company MHD Enterprises before starting a travel and lifestyle startup for mental wellness, called Somatic Studios. They tried working together on an app for sharing quotes from your friends but scrapped it.

Together, the pair went on to research the rapid rise of other vulnerability-focused meetup organizations like the one where they met, including EvrymanManKind ProjectQuiltAuthentic RelatingCircling, and T-Groups. Though they knew that to have a chance at impact at scale, they’d need to build a mobile app familiar enough to get people over the hurdle of starting a mindfulness practice. They laid out a few principles to build by: a focus on relationships instead of Likes and followers, conscious design that won’t exploit people’s attention or weaknesses, no ads, and keeping all data private and in control of the user.

There are other startups hoping to address the sad state of mental health from different angles. Talkspace offers a mobile connection to licensed therapists, though it can be pricey at $65 to $99 per week. 7 Cups and TalkLife makes peer-to-peer counseling from volunteers free, though these aren’t professionals. There are also plenty of journaling products, gratitude practice apps and wellness podcasts out there. But Ikaria’s approach, combining mental health content with group chats of people you trust, feels unique.

Having known Bader since the Secret days, it’s obvious that working with Dadashi has made him happier and more centered. Ikaria is an app he can wake up feeling good about each day. “You know, I don’t like to speak ill of David [Byttow, Secret’s CEO who sources say was verbally abusive to employees], but that relationship was very, very toxic and taxing for me. And this time around with Sean, as I’m sure you can tell, is the polar opposite.”

If Ikaria can help people develop the open and honest relationships with friends or peers like building it has done for Bader and Dadashi, it could be a beacon amidst a sea of time unwell spent.

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Daily Crunch: Apple blames coronavirus for revenue miss

Apple says the coronavirus outbreak will hurt its manufacturing and sales, Jeff Bezos makes a big commitment to fighting climate change and SpaceX launches more Starlink satellites. Here’s your Daily Crunch for February 18, 2020.

1. Apple will miss revenue forecast as coronavirus impacts its manufacturing and sales

In a letter to investors, Apple said that it “do[es] not expect to meet the revenue guidance we provided for the March quarter” due to impacts stemming from the coronavirus that has shuttered large parts of China, and is reverberating through the global economy.

As China’s return to work has proved halting, and the coronavirus itself more intractable than some anticipated, the company’s change in guidance is almost unsurprising — but that hasn’t stopped Apple’s stock price from falling this morning.

2. Jeff Bezos announced a $10 billion fund to fight climate change

Jeff Bezos announced on Instagram that he’s creating a $10 billion fund to combat climate change. He said the Bezos Earth Fund will finance “scientists, activists, NGOs — any effort that offers a real possibility to help preserve and protect the natural world.”

3. SpaceX successfully launches 60 more Starlink satellites but misses booster landing

SpaceX has launched a batch of 60 Starlink satellites into orbit, marking its fifth overall launch of a group of 60 of the small spacecraft, and its third this year alone. This launch brings the total Starlink constellation to 300 satellites in orbit, extending SpaceX’s lead as the largest commercial satellite operator in the world.

4. Redbox enters the free, ad-supported streaming market

Oddly, Redbox Free Live TV isn’t live at all — at least, not in the way that you’d get with a TV streaming service like YouTube TV or Hulu with Live TV. Instead, it offers a curated set of ad-supported movies and TV shows, similar to The Roku Channel, IMDb TV or TiVo Plus.

5. How TikTok decides who to make famous

The co-founders of video startup Trash take a deep dive into the TikTok ecosystem, particularly its extensive content moderation. (Extra Crunch membership required.)

6. Atomico raises new $820M fund to back ‘mission-driven’ European founders at Series A and beyond

The London-headquartered VC firm’s previous fund closed at $765 million, so this is an increase over three years ago. However, the remit remains largely the same. Atomico says it plans to double down on its strategy of backing “mission-driven” European founders at Series A, but with the ability to invest in what it calls “breakout” companies at the Series B and C stage.

7. Black haircare startup Naza Beauty just raised $1 million from Alexis Ohanian’s Initialized Capital

At its most basic level, it’s like Drybar — with a menu of styles — but for women of color. On the tech side, Naza’s software functions as a booking and payments platform, which also learns the styles of each customer and then makes product recommendations.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

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Spotify mimics Apple’s design with new podcast show page updates

Spotify’s ongoing investments in the podcast-streaming side of its business helped boost podcast listening on its service by 200% last year. But today, only 16% of Spotify’s monthly listeners are engaging with podcasts — a number the company today hopes to nudge higher by redesigning the podcast side of its streaming app. The new layout now makes it easier to view information about podcasts and improves discovery of new shows.

In particular, Spotify has given podcast show trailers a more prominent position in its app.

Show trailers help podcasts find new listeners by offering a concise introduction to the podcast and its creators. A good trailer hooks listeners on the show’s concept by selling its strengths, or even by offering a snippet of content that makes listeners hungry to hear more.

In the updated version of Spotify’s app, these trailers are labeled “trailer” and are highlighted at the top of the episode list, separated from the content as Apple does in its own podcasts app.

The belief here is that listeners need an easier way to check out the different podcasts out there, without having to commit to full episodes. That’s more important than ever as Spotify’s podcast library expands. The app’s catalog now has more than 700,000 podcasts across all sorts of topics — a figure that’s growing quickly. In January, Spotify was at the Consumer Electronics Show touting its “over 500,000” podcasts. By the time of this month’s earnings, it was using the higher number.

Also to aid in discovery, Spotify is adding descriptive show categories underneath the show’s description. These will be simple labels, like “true crime,” “personal stories,” “travel,” “relationships” and more. This change is also focused on catching up with market leader Apple Podcasts, which already categorizes its podcasts in a similar way.

The other major change is to the landing page for podcast shows in Spotify, which are getting a revamp to be more readable at a glance.

The updated layout has moved the descriptions up to the top of the page, so you don’t have to swipe on a show to read about it. Before, Spotify would display the podcast’s thumbnail image at the top, and you’d swipe left to view the description. Now, the layout looks more like — yes, you guessed it — Apple Podcasts.

The combined changes do make Spotify’s app more usable for podcast listening and discovery — especially for people who are used to Apple Podcasts’ design and layout but are now making the jump to Spotify. However, Spotify’s real advantage in podcasts isn’t just how it can mimic Apple’s better design, but how it’s catering to creators, investing in originals and exclusives, personalizing its recommendations and, now, its ads.

Spotify says the redesign is rolling out to its mobile app starting today.

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Facebook prototypes tabbed News Feed with Most Recent & Seen

Facebook may make it easier to escape its ranking algorithm and explore the News Feed in different formats. Facebook has internally prototyped a tabbed version of the News Feed for mobile that includes the standard Most Relevant feed, the existing Most Recent feed of reverse chronological posts that was previously buried as a sidebar bookmark and an Already Seen feed of posts you’ve previously viewed that historically was only available on desktop via the largely unknown URL facebook.com/seen.

The tabbed feed is currently unlaunched, but if Facebook officially rolls it out, it could make the social network feel more dynamic and alive as it’d be easier to access Most Recent to view what’s happening in real time. It also could help users track down an important post they lost that they might want to learn from or comment on. The tabbed interface would be the biggest change to News Feed since 2013 when Facebook announced but later scrapped the launch of a multi-feed with side bar options for just exploring Music, Photos, Close Friends and more.

The tabbed News Feed prototype was spotted in the Facebook for Android code by master reverse engineering specialist Jane Manchun Wong, who has provided to TechCrunch tips on core new features. She was able to generate these screenshots that show the tabs for Relevant, Recent and Seen above the News Feed. Tapping these reveals a Sort Your News Feed configuration window where you can choose between the feeds, see descriptions from them or dive into the existing News Feed preferences about who you block or see first.

CEO Mark Zuckerberg reveals the later-scrapped multi-feed

When asked by TechCrunch, a Facebook spokesperson confirmed this is something it’s considering testing externally, but it’s just internally available for now. It’s exploring whether the tabbed interface would make Most Recent and Seen easier to access. “You can already view your Facebook News Feed chronologically. We’re testing ways to make it easier to find, as well as sort by posts you’ve already seen,” the spokesperson tells TechCrunch, and the company also tweeted.

Offering quicker ways to sort the feed could keep users scrolling longer. If they encounter a few boring posts chosen by the algorithm, want to see what friends are doing right now or want to enjoy posts they already interacted with, a tabbed interface would give them an instant alternative beyond closing the app. While likely not the motive for this experiment, increasing time spent across these feeds could boost Facebook’s ad views at a time when it has been hammered by Wall Street for slowing profit growth.

To many, Facebook’s algorithm can feel like an inscrutable black box that decides their content destiny. Feed it the wrong signals with pity Likes or guilty-pleasure video views and it can get confused about what you want. Facebook may finally deem us mature enough to have readily available controls over what we see.

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Egnyte unifies its security and productivity tooling into single platform

Egnyte announced today it was combining its two main products — Egnyte Protect and Egnyte Connect — into a single platform to help customers manage, govern and secure the data from a single set of tools.

Egynte co-founder and CEO Vineet Jain says that this new single platform approach is being driven chiefly by the sheer volume of data they are seeing from customers, especially as they shift from on-prem to the cloud.

“The underlying pervasive theme is that there’s a rapid acceleration of data going to the cloud, and we’ve seen that in our customers,” Jain told TechCrunch. He says that long-time customers have been shifting from terabytes to petabytes of data, while new customers are starting out with a few hundred terabytes instead of five or ten.

As this has happened, he says customers are asking for a way to deal with this data glut with a single platform because the volume of data makes it too much to handle with separate tools. “Instead of looking at this as separate problems, customers are saying they want a solution that helps address the productivity part at the same time as the security part. That’s because there is more data in the cloud, and concerns around data security and privacy, along with increasing compliance requirements, are driving the need to have it in one unified platform,” he explained.

The company is doing this because managing the data needs to be tied to security and governance policies. “They are not ultimately separate ideas,” Jain says.

Jain says, up until recently, the company saw the data management piece as the way into a customer, and after they had that locked down, they would move to layer on security and compliance as a value-add. Today, partly due to the data glut and partly due to compliance regulations, Jain says, these are no longer separate ideas, and his company has evolved its approach to meet the changing requirements of customers.

Egnyte was founded in 2007 and has raised over $138 million on a $460 million post valuation, according to Pitchbook data. Its most recent round was $75 million led by Goldman Sachs in September, 2018. Egnyte passed the $100 million ARR mark in November.

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