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The direct to consumer department store Neighborhood Goods has raised $11 million

Published September 11, 2019

Neighborhood Goods, the direct to consumer department store hawking brands like Rothy’s, Dollar Shave Club, Buck Mason, Draper James and Stadium Goods, has new cash to expand its storefront for e-commerce juggernauts.

The company has raised $11 million in a new round of financing led by Global Founders Capital, with participation from previous investors Forerunner Ventures, Serena Ventures, NextGen Venture Partners, Allen Exploration, Capital Factory and others.

The Dallas-based startup has raised $25.5 million to date and is expanding into a new location in Austin to complement its stores in Plano, Texas and a location in New York, opening soon, according to the company’s chief executive and co-founder Matt Alexander.

The Neighborhood Goods concept, providing a brick and mortar outlet for online brands, is one that dovetails nicely with backers like Global Founders Capital and Forerunner Ventures, which are both longtime investors in direct to consumer startups.

“As we expand our network of brands, we’re so thrilled to have Neighborhood Goods as a core element of our portfolio for them to test, assess, explore and learn about the impact of physical retail as they grow,” said Global Founders Capital investor Don Stalter.

As the company expands its geographic footprint, it’s also experimenting with different online features, like online browsing of in-store collections and the option for physical, in-store pickup of digital orders. Neighborhood Goods also said it will begin offering an analytics back-end for brand partners to provide data on activations and branded events at the company’s stores.

Neighborhood Goods raises $5.75M to reinvent the department store

Tech startups want to destigmatize sex

Published September 11, 2019

Sex, despite being one of the most fundamental human experiences, is still one of those businesses that some advertisers reject, banks are hesitant to financially support and some investors don’t want to fund.

Given how sex is such a huge part of our lives, it’s no surprise founders are looking to capitalize on the space. But the idea of pleasure versus function, plus the stigma still associated with all-things sex, is at the root of the barriers some startup founders face.

Just last month, Samsung was forced to apologize to sextech startup Lioness after it wrongfully asked the company to take down its booth at an event it was co-hosting. Lioness is a smart vibrator that aims to improve orgasms through biofeedback data.

Sextech companies that relate to the ability to reproduce or, the ability to not reproduce, don’t always face the same problems when it comes to everything from social acceptance to advertising to raising venture funding. It seems to come down to the distinction between pleasure and function, stigma and the patriarchy.

This is where the trajectories for sextech startups can diverge. Some startups have raised hundreds of millions from traditional investors in Silicon Valley while others have struggled to raise any funding at all. As one startup founder tells me, “Sand Hill Road was a big no.”

A market worth billions or trillions?

Daily Crunch: Apple unveils new iPhones

Published September 11, 2019

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.

1. Here’s everything Apple announced today at the iPhone 11 event

The biggest announcement was a new lineup of iPhones, including the iPhone 11, with a new dual-camera system, as well as two iPhone Pro models with three cameras each. Cameras galore!

In addition, the company announced new iPads and Apple Watches, as well as pricing and launch dates for Apple Arcade (launching September 19) and Apple TV+ (November 1).

2. California passes landmark bill that requires Uber and Lyft to treat their drivers as employees

The bill says that if a contractor’s work is part of a company’s regular business, then they must be designated as employees. And thus, these workers will get access to more protections such as minimum wage, the right to unionize and overtime.

3. Peloton plots $1.2B Nasdaq IPO

In an amended S-1 filing released Tuesday afternoon, the developer of internet-connected stationary bikes and treadmills announced a proposed price range of $26 to $29 per share, allowing the company to raise as much as $1.2 billion in its public offering.

4. Uber lays off 435 people across engineering and product teams

Speaking of Uber, the company laid off about 8% of the workforce, with 170 people leaving the product team and 265 people leaving the engineering team.

5. Mozilla launches a VPN, brings back the Firefox Test Pilot program

The Test Pilot program allows users to try out new features before they are ready for mainstream usage.

6. Aerospace Corp CEO Steve Isakowitz to talk how to raise non-dilutive capital at Disrupt SF

Aerospace Corp is not that widely known outside space circles, but its 59-year-old R&D legacy is remarkable. The nonprofit works with the U.S. Air Force and other government space programs to identify emerging technologies from the commercial sector that could apply to future space programs.

7. What the iPhone 11 says about Apple’s present — and future

Let’s wrap this up with some thoughts on what yesterday’s announcements mean for Apple’s strategy — particularly the company’s growing focus on content and services, and its new thinking on how to position the iPhone. (Extra Crunch membership required.)

Despite Brexit, UK startups can compete with Silicon Valley to win tech talent

Published September 11, 2019

Mehul Patel
Contributor

Mehul Patel is the CEO of Hired , the marketplace that matches tech talent with the world’s most innovative companies.

Brexit has taken over discourse in the UK and beyond. In the UK alone, it is mentioned over 500 million times a day, in 92 million conversations — and for good reason. While the UK has yet to leave the EU, the impact of Brexit has already rippled through industries all over the world. The UK’s technology sector is no exception. While innovation endures in the midst of Brexit, data reveals that innovative companies are losing the ability to attract people from all over the world and are suffering from a substantial talent leak.

It is no secret that the UK was already experiencing a talent shortage, even without the added pressure created by today’s political landscape. Technology is developing rapidly and demand for tech workers continues to outpace supply, creating a fiercely competitive hiring landscape.

The shortage of available tech talent has already created a deficit that could cost the UK £141 billion in GDP growth by 2028, stifling innovation. Now, with Brexit threatening the UK’s cosmopolitan tech landscape — and the economy at large — we may soon see international tech talent moving elsewhere; in fact, 60% of London businesses think they’ll lose access to tech talent once the UK leaves the EU.

So, how can UK-based companies proactively attract and retain top tech talent to prevent a Brexit brain drain? UK businesses must ensure that their hiring funnels are a top priority and focus on understanding what matters most to tech talent beyond salary, so that they don’t lose out to US tech hubs.

Brexit aside, why is San Francisco more appealing than the UK?

Theresia Gouw and Ann Miura-Ko are coming to Disrupt

Published September 11, 2019

For a very long time, the venture industry was stubbornly resistant to change. The same people sat back in their chairs on Sand Hill Road while nervous founders made the rounds, hoping one of these firms would champion their cause.

No longer. Since roughly the advent of Y Combinator, the landscape has seemed to shift by the year, with more startups raising capital every year, more people becoming VCs, more Medium posts, more newsletters, more events, more great founders, more bad behavior, more congestion, and more money from all over the world finding its way to Silicon Valley and a growing number of smaller but fast-growing hubs.

How to make sense of it all? At Disrupt, we do our best to answer that question by sitting down each year with top venture capitalists who tell us what they are seeing. In 2015, for example, we talked with VCs about why you can start, but not always scale, a company from anywhere. In 2016, the discussion turned to why VCs were gathering up so much capital when the IPO market was (at the time) all but closed to new tech issuers. In 2017, we examined how then-new U.S. President Donald Trump might impact the venture and startup industry. By last year, we were talking about Softbank, mega rounds, and whether Silicon Valley is losing its gravitational pull.

This year, we’re again going to be taking stock of what trends have so far defined 2019 — and what may be around the corner — and we’re thrilled to announce the VCs who will help us to answer some of these questions: Ann Miura-Ko, a cofounder of the seed- and early-stage venture firm Floodgate, and Theresia Gouw, a cofounder of the early-stage venture firm Aspect Ventures.

Both of these longtime investors bring a lot of deep insights to any venture discussion. Miura-Ko has been in the industry since before the last major tech boom, starting in the late ’90s. Then a McKinsey analyst who was focused on wireless technologies, she went on to become an analyst at the venture firm CRV before cofounding with partner Mike Maples the venture firm Floodgate in 2008. Since joining forces, Floodgate has backed a long list of powerful companies, including Twitch, Sonos, Chegg, AdRoll, BazaarVoice, and Lyft, where Miura-Ko remains on the board of directors. She has seen plenty of ups and downs, within both Floodgate’s portfolio and the broader startup industry.

Gouw, meanwhile, also has a perspective on the industry that many newer investors don’t enjoy, having worked as a VP at a Bay Area startup during the dot.com run-up, then joining the venture firm Accel in 1999, just a year before the industry imploded. It could have been a short-lived stint. Instead, she helping the firm sift through the wreckage and right itself before leaving in 2014 to start her own firm — Aspect — with partner and former DFJ partner Jennifer Fonstad. Since then, the firm has backed a wide variety of companies, from The RealReal to Exabeam, HotelTonight to Forescout. Put another way, Gouw also knows what the deal is.

We can’t wait to sit down with both of these top investors to talk about the trends shaping the industry right now, from the growing secondary market to IPO trends, from what excites them the most to what their biggest concerns are for their firms and their portfolio companies as we sail toward 2020.

It’s a conversation you will not want to miss if you want a better understanding of what’s happening on the ground right now. Join us at Disrupt SF, which runs October 2 to 4 at the Moscone Center. Tickets are available here.

iFixit gives Fairphone 3 a perfect 10 for repairability

Published September 11, 2019

Here’s something the hermetically sealed iPhone can’t do: Score a perfect 10 for repairability.

Smartphone startup and social enterprise Fairphone’s latest repairable-by-design smartphone has done just that, getting 10/10 in an iFixit Teardown vs scores of just 6/10 for recent iPhone models.

The Fairphone 3, which was released in Europe last week with an RRP of €450, gets thumbs up across the board in iFixit’s hardware Teardown. It found all the internal modules to be easily accessible and replaceable — with only basic tools required to get at them (Fairphone includes a teeny screwdriver in the box). iFixit also lauds visual cues that help with disassembly and reassembly, and notes that repair guides and spare parts are available on Fairphone’s website.

iFixit’s sole quibble is that while most of the components inside the Fairphone 3’s modules are individually replaceable “some” are soldered on. A tiny blip that doesn’t detract from the 10/10 repairability score

Safe to say, such a score is the smartphone exception. The industry continues to encourage buyers to replace an entire device, via yearly upgrade, instead of enabling them to carry out minor repairs themselves — so they can extend the lifespan of their device and thereby shrink environmental impact.

Dutch startup Fairphone was set up to respond to the abject lack of sustainability in the electronics industry. The tiny company has been pioneering modularity for repairability for several years now, flying in the face of smartphone giants that are still routinely pumping out sealed tablets of metal and glass which often don’t even let buyers get at the battery to replace it themselves.

To wit: An iFixit Teardown of the Google Pixel rates battery replacement as “difficult” with a full 20 steps and between 1-2 hours required. (Whereas the Fairphone 3 battery can be accessed in seconds, by putting a fingernail under the plastic back plate to pop it off and lifting the battery out.)

The Fairphone 3 goes much further than offering a removable backplate for getting at the battery, though. The entire device has been designed so that its components are accessible and repairable.

So it’s not surprising to see it score a perfect 10 (the startup’s first modular device, Fairphone 2, was also scored 10/10 by iFixit). But it is strong, continued external validation for the Fairphone’s designed-for-repairability claim.

It’s an odd situation in many respects. In years past replacement batteries were the norm for smartphones, before the cult of slimming touchscreen slabs arrived to glue phone innards together. Largely a consequence of hardware business models geared towards profiting from pushing for clockwork yearly upgrades cycle — and slimmer hardware is one way to get buyers coveting your next device.

But it’s getting harder and harder to flog the same old hardware horse because smartphones have got so similarly powerful and capable there’s precious little room for substantial annual enhancements.

Hence iPhone maker Apple’s increasing focus on services. A shift that’s sadly not been accompanied by a rethink of Cupertino’s baked in hostility towards hardware repairability. (It still prefers, for example, to encourage iPhone owners to trade in their device for a full upgrade.)

At Apple’s 2019 new product announcement event yesterday — where the company took the wraps off another clutch of user-sealed smartphones (aka: iPhone 11 and iPhone 11 Pro) — there was even a new financing offer to encourage iPhone users to trade in their old models and grab the new ones. ‘Look, we’re making it more affordable to upgrade!’ was the message.

Meanwhile, the only attention paid to sustainability — during some 1.5 hours of keynotes — was a slide which passed briefly behind marketing chief Phil Schiller towards the end of his turn on stage puffing up the iPhone updates, encouraging him to pause for thought.

Apple 2019 event

“iPhone 11 Pro and iPhone 11 are made to be designed free from these harmful materials and of course to reduce their impact on the environment,” he said in front of a list of some toxic materials that are definitely not in the iPhones.

Stuck at the bottom of this list were a couple of detail-free claims that the iPhones are produced via a “low-carbon process” and are “highly recyclable”. (The latter presumably a reference to how Apple handles full device trade-ins. But as anyone who knows about sustainability will tell you, sustained use is far preferable to premature recycling…)

“This is so important to us. That’s why I bring it up every time. I want to keep pushing the boundaries of this,” Schiller added, before pressing the clicker to move on to the next piece of marketing fodder. Blink and you’d have missed it.

If Apple truly wants to push the boundaries on sustainability — and not just pay glossy lip-service to reducing environmental impact for marketing purposes while simultaneously encouraging annual upgrades — it has a very long way to go indeed.

As for repairability, the latest and greatest iPhones clearly won’t hold a candle to the Fairphone.

Kubernetes co-founder Craig McLuckie is as tired of talking about Kubernetes as you are

Published September 11, 2019

“I’m so tired of talking about Kubernetes . I want to talk about something else,” joked Kubernetes co-founder and VP of R&D at VMware Craig McLuckie during a keynote interview at this week’s Cloud Foundry Summit in The Hague. “I feel like that 80s band that had like one hit song — Cherry Pie.”

He doesn’t quite mean it that way, of course (though it makes for a good headline, see above), but the underlying theme of the conversation he had with Cloud Foundry executive director Abby Kearns was that infrastructure should be boring and fade into the background, while enabling developers to do their best work.

“We still have a lot of work to do as an industry to make the infrastructure technology fade into the background and bring forwards the technologies that developers interface with, that enable them to develop the code that drives the business, etc. […] Let’s make that infrastructure technology really, really boring.”

What McLuckie wants to talk about is developer experience and with VMware’s intent to acquire Pivotal, it’s placing a strong bet on Cloud Foundry as one of the premiere development platforms for cloud native applications. For the longest time, the Cloud Foundry and Kubernetes ecosystem, which both share an organizational parent in the Linux Foundation, have been getting closer, but that move has accelerated in recent months as the Cloud Foundry ecosystem has finished work on some of its Kubernetes integrations.

McLuckie argues that the Cloud Native Computing Foundation, the home of Kubernetes and other cloud-native, open-source projects, was always meant to be a kind of open-ended organization that focuses on driving innovation. And that created a large set of technologies that vendors can choose from.

“But when you start to assemble that, I tend to think about you building up this cake which is your development stack, you discover that some of those layers of the cake, like Kubernetes, have a really good bake. They are done to perfection,” said McLuckie, who is clearly a fan of the Great British Baking show. “And other layers, you look at it and you think, wow, that could use a little more bake, it’s not quite ready yet. […] And we haven’t done a great job of pulling it all together and providing a recipe that delivers an entirely consumable experience for everyday developers.”

He argues that Cloud Foundry, on the other hand, has always focused on building that highly opinionated, consistent developer experience. “Bringing those two communities together, I think, is going to have incredibly powerful results for both communities as we start to bring these technologies together,” he said.

With the Pivotal acquisition still in the works, McLuckie didn’t really comment on what exactly this means for the path forward for Cloud Foundry and Kubernetes (which he still talked about with a lot of energy, despite being tired of it). But it’s clear that he’s looking to Cloud Foundry to enable that developer experience on top of Kubernetes that abstracts all of the infrastructure away for developers and makes deploying an application a matter of a single CLI command.

Bonus: Cherry Pie.

Explorium reveals $19.1M in total funding for machine learning data discovery platform

Published September 11, 2019

Explorium, a data discovery platform for machine learning models, received a couple of unannounced funding rounds over the last year — a $3.6 million seed round last September and a $15.5 million Series A round in March. Today, it made both of these rounds public.

The seed round was led by Emerge with participation of F2 Capital. The Series A was led by Zeev Ventures with participation from the seed investors. The total raised is $19.1 million.

The company founders, who have a data science background, found that it was problematic to find the right data to build a machine learning model. Like most good startup founders confronted with a problem, they decided to solve it themselves by building a data discovery platform for data scientists.

CEO and co-founder, Maor Shlomo says that the company wanted to focus on the quality of the data because not much work has been done there. “A lot of work has been invested on the algorithmic part of machine learning, but the algorithms themselves have very much become commodities. The challenge now is really finding the right data to feed into those algorithms,” Sholmo told TechCrunch.

It’s a hard problem to solve, so they built a kind of search engine that can go out and find the best data wherever it happens to live, whether it’s internally or in an open data set, public data or premium databases. The company has partnered with thousands of data sources, according to Schlomo, to help data scientist customers find the best data for their particular model.

“We developed a new type of search engine that’s capable of looking at the customers data, connecting and enriching it with literally thousands of data sources, while automatically selecting what are the best pieces of data, and what are the best variables or features, which could actually generate the best performing machine learning model,” he explained.

Shlomo sees a big role for partnerships, whether that involves data sources or consulting firms, who can help push Explorium into more companies.

Explorium has 63 employees spread across offices in Tel Aviv, Kiev and San Francisco. It’s still early days, but Sholmo reports “tens of customers.” As more customers try to bring data science to their companies, especially with a shortage of data scientists, having a tool like Explorium could help fill that gap.

ScyllaDB takes on Amazon with new DynamoDB migration tool

Published September 11, 2019

There are a lot of open-source databases out there, and ScyllaDB, a NoSQL variety, is looking to differentiate itself by attracting none other than Amazon users. Today, it announced a DynamoDB migration tool to help Amazon customers move to its product.

It’s a bold move, but Scylla, which has a free open-source product along with paid versions, has always had a penchant for going after bigger players. It has had a tool to help move Cassandra users to ScyllaDB for some time.

CEO Dor Laor says DynamoDB customers can now also migrate existing code with little modification. “If you’re using DynamoDB today, you will still be using the same drivers and the same client code. In fact, you don’t need to modify your client code one bit. You just need to redirect access to a different IP address running Scylla,” Laor told TechCrunch.

He says that the reason customers would want to switch to Scylla is because it offers a faster and cheaper experience by utilizing the hardware more efficiently. That means companies can run the same workloads on fewer machines, and do it faster, which ultimately should translate to lower costs.

The company also announced a $25 million Series C extension led by Eight Roads Ventures. Existing investors Bessemer Venture Partners, Magma Venture Partners, Qualcomm Ventures and TLV Partners also participated. Scylla has raised a total of $60 million, according to the company.

The startup has been around for six years and customers include Comcast, GE, IBM and Samsung. Laor says that Comcast went from running Cassandra on 400 machines to running the same workloads with Scylla on just 60.

Laor is playing the long game in the database market, and it’s not about taking on Cassandra, DynamoDB or any other individual product. “Our main goal is to be the default NoSQL database where if someone has big data, real-time workloads, they’ll think about us first, and we will become the default.”

Razer made a case for cooling iPhones while gaming

Published September 10, 2019

Razer’s efforts to build a game-centric smartphone haven’t exactly caught the world on fire just yet. Still, mobile gaming is a huge business poised to get even bigger, with services from big names like Apple and Google waiting in the wings.

Seeing as how accessories have long been the company’s bread and butter, products like Arctech are probably an easier way for the company to ensure it’s got a horse in that race. The product is a phone case specifically designed to help stop phones from overheating during resource-intensive activities like gaming.

The product uses Razer’s proprietary Thermaphene technology sandwiched between a microfiber lining and an outer casing with perforations to help let the heat out. Per Razer:

Thermaphene is a thermally – conductive material that dissipates heat. In independent testing against similar style cases, the Razer Arctech case maintained temperatures up to 6° Celsius (42.8 Fahrenheit) lower than the comparison case.

There are two versions of the case, Slim and Pro, the latter of which offers added protection for up to a 10-foot drop. As for why the company’s launching today, in addition to the Razer Phone 2, the Arctech will be available for all of Apple’s new iPhones. The Slim runs $30 and the Pro is $40. They’re both available starting today.