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Startups Weekly: Squad’s screen-shares and Slack’s swastika

We’re three weeks into January. We’ve recovered from our CES hangover and, hopefully, from the CES flu. We’ve started writing the correct year, 2019, not 2018.

Venture capitalists have gone full steam ahead with fundraising efforts, several startups have closed multi-hundred million dollar rounds, a virtual influencer raised equity funding and yet, all anyone wants to talk about is Slack’s new logo… As part of its public listing prep, Slack announced some changes to its branding this week, including a vaguely different looking logo. Considering the flack the $7 billion startup received instantaneously and accusations that the negative space in the logo resembled a swastika — Slack would’ve been better off leaving its original logo alone; alas…

On to more important matters.

Rubrik more than doubled its valuation

The data management startup raised a $261 million Series E funding at a $3.3 billion valuation, an increase from the $1.3 billion valuation it garnered with a previous round. In true unicorn form, Rubrik’s CEO told TechCrunch’s Ingrid Lunden it’s intentionally unprofitable: “Our goal is to build a long-term, iconic company, and so we want to become profitable but not at the cost of growth,” he said. “We are leading this market transformation while it continues to grow.”

Deal of the week: Knock gets $400M to take on Opendoor

Will 2019 be a banner year for real estate tech investment? As $4.65 billion was funneled into the space in 2018 across more than 350 deals and with high-flying startups attracting investors (Compass, Opendoor, Knock), the excitement is poised to continue. This week, Knock brought in $400 million at an undisclosed valuation to accelerate its national expansion. “We are trying to make it as easy to trade in your house as it is to trade in your car,” Knock CEO Sean Black told me.

Cybersecurity stays hot

While we’re on the subject of VCs’ favorite industries, TechCrunch cybersecurity reporter Zack Whittaker highlights some new data on venture investment in the industry. Strategic Cyber Ventures says more than $5.3 billion was funneled into companies focused on protecting networks, systems and data across the world, despite fewer deals done during the year. We can thank Tanium, CrowdStrike and Anchorfree’s massive deals for a good chunk of that activity.

Send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

Fundraising efforts continue

I would be remiss not to highlight a slew of venture firms that made public their intent to raise new funds this week. Peter Thiel’s Valar Ventures filed to raise $350 million across two new funds and Redpoint Ventures set a $400 million target for two new China-focused funds. Meanwhile, Resolute Ventures closed on $75 million for its fourth early-stage fund, BlueRun Ventures nabbed $130 million for its sixth effort, Maverick Ventures announced a $382 million evergreen fund, First Round Capital introduced a new pre-seed fund that will target recent graduates, Techstars decided to double down on its corporate connections with the launch of a new venture studio and, last but not least, Lance Armstrong wrote his very first check as a VC out of his new fund, Next Ventures.

More money goes toward scooters

In case you were concerned there wasn’t enough VC investment in electric scooter startups, worry no more! Flash, a Berlin-based micro-mobility company, emerged from stealth this week with a whopping €55 million in Series A funding. Flash is already operating in Switzerland and Portugal, with plans to launch into France, Italy and Spain in 2019. Bird and Lime are in the process of raising $700 million between them, too, indicating the scooter funding extravaganza of 2018 will extend into 2019 — oh boy!

Startups secure cash

  • Niantic finally closed its Series C with $245 million in capital commitments and a lofty $4 billion valuation.
  • Outdoorsy, which connects customers with underused RVs, raised $50 million in Series C funding led by Greenspring Associates, with participation from Aviva Ventures, Altos Ventures, AutoTech Ventures and Tandem Capital.
  • Ciitizen, a developer of tools to help cancer patients organize and share their medical records, has raised $17 million in new funding in a round led by Andreessen Horowitz.
  • Footwear startup Birdies — no, I don’t mean Allbirds or Rothy’s — brought in an $8 million Series A led by Norwest Venture Partners, with participation from Slow Ventures and earlier investor Forerunner Ventures.
  • And Brud, the company behind the virtual celebrity Lil Miquela, is now worth $125 million with new funding.

Feature of the week

TechCrunch’s Josh Constine introduced readers to Squad this week, a screensharing app for social phone addicts.

Listen to me talk

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase editor-in-chief Alex Wilhelm and I marveled at the dollars going into scooter startups, discussed Slack’s upcoming direct listing and debated how the government shutdown might impact the IPO market.

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Free to play games rule the entertainment world with $88 billion in revenue

They may be free, but they sure pay. Games with no upfront cost but a plethora of other ways to make money generated a mind-blowing $88 billion in 2018 according to SuperData’s year-end report — leaving traditional games (and indeed movies and TV) in the dust.

While it may not come as a surprise that F2P (as free to play is often abbreviated) is big business at the end of 2018, the Year of Fortnite, the sheer size of it can hardly fail to impress.

The total gaming market, as this report measures it, amounts to a staggering $110 billion, of which more than half (about $61 billion) came from mobile, which is of course the natural home of the F2P platform.

Credit: SuperData

The $88 billion in F2P revenue across all platforms is large enough to produce a dynamite top 10 and an enormously long tail. Fortnite, with its huge following and multi-platform chops, was far and away the top earner with $2.4 billion in revenue; after that is a jumble of PC, mobile, Asian and Western games of a variety of styles. The top 10 together brought in a total of $14.6 billion — leaving a king’s ransom for thousands of other titles to divide.

The vast majority of F2P revenue comes from Asia. Powerhouse companies like Tencent have been pushing their many microtransaction-based games

“Traditional” gaming, a term that is rapidly losing meaning and relevance, but which we can take to mean a game that you can pay perhaps $60 for and then play without significant further investment, amounted to about $16 billion across PCs and consoles worldwide.

An exception is the immensely popular PlayerUnknown’s Battlegrounds, one of the hits that touched off the “battle royale” craze, which took in a billion on its own — though how much of that is sales versus microtransactions isn’t clear. Amazingly, Grand Theft Auto V, a game that came out five years ago, generated some $628 million last year (mostly from its online portion, no doubt).

The top titles there are nearly all parts of a series, and all lean heavily toward the Western and console-based, with only pennies (comparatively) going to Asian markets. China is a whole different world when it comes to gaming and distribution, so this isn’t too surprising.

Lastly, it would be neglectful not to mention the explosion of viewership on YouTube and Twitch, which together formed half of all gaming video revenue, with Twitch ahead by a considerable margin. But the real winner is Ninja, by far the most-watched streamer on Twitch with an astonishing 218 million hours watched by fans. Congratulations to him and the others making a living in this strange and fabulous new market.

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FanDuel co-founder Tom Griffiths just closed a seed round for his decidedly noncontroversial new startup, Hone

Tom Griffiths has founded four companies, two of which “weren’t much to write home about,” he jokes. The third captured the world’s attention: FanDuel, the fantasy sports company that was routinely in the press — not always for desirable reasons — from nearly the day it launched, to its near merger with rival DraftKings, to its ultimate sale last May to the European betting giant Paddy Power Betfair in a deal that reportedly saw FanDuel’s founders, along with its employees, walk away with almost nothing at the end of their roller coaster ride.

Little wonder that Griffith’s new, fourth company, Hone, is targeting the comparatively undramatic world of workforce training. Specifically, Hone and his small team have built a platform for modern and distributed teams, inspired largely by FanDuel’s experience of becoming a unicorn at one point in just six years’ time, and growing its team from 5 to 500 people in the process. Looking back, says Griffiths, “We really didn’t have the manager training we wanted or needed.”

In fact, Griffiths had already left the company by the time it was acquired, around his 10th anniversary last year, to “go back to the start.” It was time, he says. FanDuel had grown like a weed. He was exhausted by the many regulators wrestling with whether FanDuel provided a legally acceptable form of gambling. He knew he wanted to work in education, too. “My mom was a teacher,” he offers simply.

Enter Griffith’s newest act, which is just 10 months old at this point. The goal of the San Francisco-based company is to improve people’s skills around leadership management and people management, specifically at companies that already have hundreds of employees and that are dealing with increasingly distributed and diverse teams.

Hone is obviously not the first company tackling the remote management training or team building. The market already attracts tens of billions of dollars each year. But he insists it will be one of the best, including because it’s unlike a lot of what’s available currently. For one thing, Hone is very anti-traditional workshop. Hone also eschews pre-recorded video, working instead with qualified professional coaches who have to audition for Hone and who are already teaching a growing number of customers 12 different modules, typically in online class sizes of eight to a dozen people.

A company simply signs up, chooses from the programs (these include an intensive manager bootcamp, for example, as well as a manager 101 program), then embarks on what are 60- to 90-minute sessions each week for seven weeks.

The idea, in part, is for the learnings to stick. According to Griffiths, trainees forget 70 percent of what they are taught within 24 hours of a training experience. Instilling new lessons and reiterating old ones produces a greater return on investment for Hone’s customers, he suggests.

Hone’s underlying platform is also a differentiator, he says. It contains a reporting interface, so companies can not only see who is in attendance, but they can measure learner feedback through students who are asked afterward to provide the company with details about what they’ve learned. Hone’s software can also track how many questions were asked to assess engagement.

The self-learning platform gives Hone an easier way to assess how successful, or not, a particular module proves to be, and it allows Hone to continue sharpening its products. In fact, Griffiths says that by working with early, paying customers that include WeWork, Clear, App Annie, Dashlane, Omada Health, SoulCycle and others, Hone has already learned much that it intends to bake into future products,.

“We were in pilot mode last year to get product-market fit.” Now, the company is ready for its close-up, he suggests.

Some new funding should help. In addition to taking the wraps off Hone and opening more widely for business, the company just raised $3.6 million in seed funding led by Cowboy Ventures and Harrison Metal. Other participants in the round include Slack Fund, Reach Capital, Rethink Education, Day One Ventures, Entangled Ventures and numerous relevant angel investors, like Masterclass CEO David Rogier and Guild Education CEO Rachel Carlson.

What the 10-month-old company isn’t sharing publicly just yet is its pricing, which may remain flexible in any case. Says Griffiths, “We work with customers to diagnose their needs, then we create a package, one that’s far more reasonable than classroom training. There’s no travel. No instructor having to come to you.”

Griffiths is more forthcoming when it comes to lessons learned at FanDuel. Among these is aligning one’s self with investors who share a company’s values. He points to Cowboy Ventures founder Aileen Lee, calling her a “towering pillar of progressive values, equality, inclusion and diversity.” What he saw at FanDuel, he says, is that “investors can influence culture. So from the board down, you want people who share your same values.”

Griffiths also stresses the “importance of establishing a strong culture and a vision from the start, and to live that every day as you grow.

“It’s something we did well at FanDuel at some times,” he says, “and not so well at other times.”

Hone founders, left to right: Savina Perez, who was formerly a VP of marketing at CultureIQ, a platform that aims to helps companies strengthen their culture; Tom Griffiths; and Jeremy Hamel, who was formerly the head of product at CultureIQ.

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Salesforce is building new tower in Dublin and adding hundreds of jobs

Salesforce put the finishing touches on a tower in San Francisco last year. In October, it announced Salesforce Tower in Atlanta. Today, it was Dublin’s turn. Everyone gets a tower.

Salesforce first opened an office in Dublin back in 2001, and has since expanded to 1,400 employees. Today’s announcement represents a significant commitment to expand even further, adding 1,500 new jobs over the next five years.

The new tower in Dublin is actually going to be a campus made up of four interconnecting buildings on the River Liffey. It will eventually encompass 430,000 square feet with the first employees expected to move into the new facility sometime in the middle of 2021.

Artist’s rendering of Salesforce Tower Dublin rooftop garden. Picture: Salesforce

Martin Shanahan, who is CEO at IDA Ireland, the state agency responsible for attracting foreign investment in Ireland, called this one of the largest single jobs announcements in the 70-year history of his organization.

As with all things Salesforce, they will do this up big with an “immersive video lobby” and a hospitality space for Salesforce employees, customers and partners. This space, which will be known as the “Ohana Floor,” will also be available for use by nonprofits.They also plan to build paths along the river that will connect the campus to the city center.

Artist’s rendering of Salesforce Tower Dublin lobby. Picture: Salesforce

The company intends to make the project “one of the most sustainable building projects to-date” in Dublin, according to a statement announcing the project. What does that mean? It will, among other things, be a nearly Net Zero Energy building and it will use 100 percent renewable energy, including onsite solar panels.

Finally, as part of the company’s commitment to the local communities in which it operates, it announced a $1 million grant to Educate Together, an education nonprofit. The grant should help the organization expand its mission running equality-based schools. Salesforce has been supporting the group since 2009 with software grants, as well as a program where Salesforce employees volunteer at some of the organization’s schools.

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Sony venture arm invests in geocoding startup what3words

Sony’s venture capital arm has invested in what3words, the startup that has divided the entire world into 57 trillion 3-by-3 meter squares and assigned a three-word address to each one.

Financial details were not disclosed.

The startup’s novel addressing system isn’t the whole story. The ability to integrate what3words into voice assistants is what has piqued the interest and investment from Sony and others.

“what3words have solved the considerable problem of entering a precise location into a machine by voice. The dramatic rise in voice-activated systems calls for a simple voice geocoder that works across all digital platforms and channels, can be written down and spoken easily,” Sony Corporation’s senior vice president Toshimoto Mitomo said in a statement.

Last year, Daimler took a 10 percent stake in what3words, following an announcement in 2017 to integrate the addressing system into Mercedes’ new infotainment and navigation system — called the Mercedes-Benz User Experience, or MBUX. MBUX is now in the latest Mercedes A-Class and B-Class cars and Sprinter commercial vehicles. Owners of these new Mercedes-Benz vehicles are now able to navigate to an exact destination in the world by just saying or typing three words into the infotainment system.

Other companies are keen to follow Daimler’s lead. TomTom and ride-hailing services like Cabify recently announced plans to enable what3words navigation to precise locations.

And more could follow. The startup says it plans to use the investment from Sony to focus on more initiatives in the automotive space.

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Google starts pulling unvetted Android apps that access call logs and SMS messages

Google is removing apps from Google Play that request permission to access call logs and SMS text message data but haven’t been manually vetted by Google staff.

The search and mobile giant said it is part of a move to cut down on apps that have access to sensitive calling and texting data.

Google said in October that Android apps will no longer be allowed to use the legacy permissions as part of a wider push for developers to use newer, more secure and privacy minded APIs. Many apps request access to call logs and texting data to verify two-factor authentication codes, for social sharing, or to replace the phone dialer. But Google acknowledged that this level of access can and has been abused by developers who misuse the permissions to gather sensitive data — or mishandle it altogether.

“Our new policy is designed to ensure that apps asking for these permissions need full and ongoing access to the sensitive data in order to accomplish the app’s primary use case, and that users will understand why this data would be required for the app to function,” wrote Paul Bankhead, Google’s director of product management for Google Play.

Any developer wanting to retain the ability to ask a user’s permission for calling and texting data has to fill out a permissions declaration.

Google will review the app and why it needs to retain access, and will weigh in several considerations, including why the developer is requesting access, the user benefit of the feature that’s requesting access and the risks associated with having access to call and texting data.

Bankhead conceded that under the new policy, some use cases will “no longer be allowed,” rendering some apps obsolete.

So far, tens of thousands of developers have already submitted new versions of their apps either removing the need to access call and texting permissions, Google said, or have submitted a permissions declaration.

Developers with a submitted declaration have until March 9 to receive approval or remove the permissions. In the meantime, Google has a full list of permitted use cases for the call log and text message permissions, as well as alternatives.

The last two years alone has seen several high-profile cases of Android apps or other services leaking or exposing call and text data. In late 2017, popular Android keyboard ai.type exposed a massive database of 31 million users, including 374 million phone numbers.

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Netflix thinks ‘Fortnite’ is a bigger threat than HBO

Netflix thinks “Fortnite” is a bigger threat to its business than HBO. The company in its latest quarterly earnings report released on Thursday said that while its streaming service now accounts for around 10 percent of TV screen time in the U.S., it no longer views its competition only as those services also providing TV content and streaming video.

“We compete with (and lose to) Fortnite more than HBO,” the company’s shareholder letter stated. “When YouTube went down globally for a few minutes in October, our viewing and signups spiked for that time…There are thousands of competitors in this highly fragmented market vying to entertain consumers and low barriers to entry for those with great experiences.”

In other words, Netflix today sees its competition as anyone in the business of entertaining their customers, and eating up their hours of free time in the process. That includes breakout gaming hits like “Fortnite.”

Netflix’s statement comes at a time when the internet, mobile and gaming have been shifting consumer’s focus and attention away from watching TV.

In fact, all the way back in 2012, mobile industry experts were warning that time spent in mobile apps was beginning to challenge television. And a few years ago, apps finally came out on top. For the first time ever, time spent inside apps exceeded that of TV.

Fortnite, in particular, has capitalized on this change in consumer behavior and has now grown to more than 200 million players. (Netflix just reached 139 million, for comparison’s sake.)

In 2018, Fortnite — along with other multiplayer games like PUBG — pushed forward a trend toward cross-platform gaming that’s capable of reaching consumers wherever they are, similar to streaming apps like Netflix. According to a recent report from App Annie, this is just the tip of the iceberg, too. Cross-platform gaming, including not only Fortnite and PUBG, but also whatever comes next, is poised to grow even further in 2019.

Notably, Fortnite, too, has become a place where you don’t just go to play — but rather “hang out.” For kids and young adults, the game has replaced the mall or other parts of the city where kids and teens just go to be around friends and socialize, wrote tech writer Owen Williams on his blog Charged.

“Not only is Fortnite the new hangout spot, replacing the mall, Starbucks or just loitering in the city, it’s become the coveted ‘third place’ for millions of people around the world,” he said.

Roblox, with it over 70 million players, serves a similar purpose.

That means it’s also a real threat to Netflix’s time. If gamers are hanging around a virtual space with friends, they have less time to stream TV. (And perhaps — given that many of the youngest Netflix never got cable to begin with — less desire to watch TV to begin with.)

“I think about it really is as winning time away, entertainment time from other activities,” said Netflix CEO Reed Hastings on Thursday, discussing the threat from those competing for users’ time. “So, instead of doing Xbox or Fortnite or YouTube or HBO or a long list, we want to win and provide a better experience. No advertising on demand. Incredible content,” he said.

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Whyd now helps companies create their custom voice assistant

Y Combinator-backed startup Whyd is pivoting from hardware to software. The startup had been working on a connected speaker with a voice-control interface specifically designed for music. But a couple of years later, it’s clear that subsidized voice assistant devices from Google and Amazon have taken over the market.

Whyd is only keeping its own software platform and partnering with other companies. In other words, if you’re working on an app, a website or a skill for the Amazon Echo or Google Home, you can create your own voice assistant to interact with your content.

This way, your users get the same experience across all platforms and you don’t have to rely on Amazon’s or Google’s services.

“We let you integrate with a database of millions of items, create a custom agent and release it,” Whyd co-founder and CEO Gilles Poupardin told me. You can think about it as a sort of Algolia for voice queries. Instead of limiting yourself to basic queries (“play my favorite playlist”), you can handle complicated queries (“I want to dance to electronic music”).

In particular, Whyd focuses on the cloud infrastructure behind your voice assistant. The company doesn’t try to reinvent the wheel and lets you use any speech-to-text SDK. But Whyd can then interpret your query and give you results in little time.

The startup has already worked with 8tracks on its voice assistant. You can now search for music playlists in the mobile app using a voice assistant. Whyd has developed different models for other verticals. You can imagine a voice assistant for video on demand, e-commerce and other services.

This is what happens between your database and your front end when users interact with their voice:

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SimplyCook dishes up £4.5M Series A for its subscription-based flavourings and recipe service

SimplyCook, the recipe kit service that focuses on flavour ingredients, has closed £4.5 million in Series A funding. The round is led by Octopus Investments.

Unlike other recipe or meal kits, such as HelloFresh, Gousto and Marley Spoon, U.K.-based SimplyCook doesn’t send all of the fresh ingredients required to turn its recipes into food on your table. Instead, the subscription service consists of recipe cards and what SimplyCook calls “ingredients kits,” which are herbs, spices, sauces and other extras needed to cook each meal.

It’s not only a product that potentially has better margins than fresh food recipe kits — by negating the need to manage such perishable goods — SimplyCook founder and CEO Oli Ashness argues that SimplyCook’s flavour kits have broader mass-market appeal, too.

“Flavour products are used by over 50 percent of consumers weekly,” he says. “Whereas fresh food delivery still caters for maybe 0.25-0.5 percent of evening meals in the UK. Flavour already works as a way to get people cooking. Fresh Meal Kits are fairly unproven.”

“I am actually a fan of how some fresh food players are run and their founders; however, I am still not convinced fresh food meal kits will ever be mass market like us due to the level of monthly commitment. Getting people to spend [less than] £10 per month is much easier than asking them to spend £120-£200 per month, in my opinion. It’s going to be much easier for us to build a big base in customer numbers.”

He also makes the valid point that SimplyCook builds on the success of traditional flavour brands, such as Old El Paso, Dolmio, Knorr and Schwartz, “[that] have got millions cooking.”

Related to this, as well as selling subscriptions online, the company has launched SimplyCook recipe kits in physical retail stores. This is seeing it pursue a hybrid online/offline model that Ashness likens to healthy snack company Graze. (Notably, HelloFresh tried selling into grocery stores in the U.K., before cooling on the idea.)

Meanwhile, SimplyCook says its Series A funding will be used to invest in technology and sales & marketing, in order to drive continued growth across the U.K. and beyond.

“We also expect this funding round to fuel international launches,” adds the SimplyCook CEO, “[and to] provide working capital for the retail business and allow us to invest in technology to aid our operations. These investments we’ll make over the next 2 years.”

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Flash, the stealthy e-scooter and ‘micro-mobility’ startup from Delivery Hero founder, raises €55M Series A

Flash, the stealthy mobility startup from Delivery Hero and Team Europe founder Lukasz Gadowski, is de-cloaking today, with news that the Berlin-based company has raised a whopping €55 million in Series A funding.

Despite rumours that multiple VC firms would be involved, the bulk of the new funding comes from Target Global via its mobility fund, which led this round and was already an existing backer of Flash. Others participating in Flash’s Series A include Idinvest Partners, Signals Venture Capital and a number of unnamed angel investors.

Notably, Gadowski is listed as an Entrepreneur in Residence at Target Global, and has been broadly working in the mobility space for the past two years. Rather quietly, he is also an investor in Grin, the Mexico City-based electric scooter company backed by Y Combinator.

In a call with Gadowski, he filled in many of the blanks relating to his new venture, including positioning Flash as a “micro-mobility” company that wants to solve the last-mile transportation problem. The startup is initially entering the e-scooter rental space, but this is just the beginning, he says. More broadly, the way he and his team think about Flash is that it is “unbundling” the car, with new forms of transport.

“In a few years time, micro-mobility will look very different from today,” says Gadowski, revealing that before founding Flash last year, he also took a hard look at new forms of aviation.

Even though it is still very early days for Flash, the startup already boasts a current team of more than 50 full-time employees, recruited from the likes of Uber, Amazon, and Airbnb. Alongside Gadowski, the other Flash co-founders are Carlos Bhola (Corp. Development) and Tim Rucquoi-Berger (Supply & Operations).

“This is not a scooter” – Flash branding in stealth mode

Notably — and definitely quietly — Flash is already operating in Switzerland and Portugal, with plans to launch into France, Italy and Spain in spring 2019, and in the rest of Europe in summer 2019.

The existing launches have been soft-launches, to say the least, with Flash e-scooters not initially carrying the company’s branding, instead sporting the label “This is not a scooter,” part in-house word play, part a statement of intent. Not just another scooter company might be an even more apt label if Gadowski’s longer-term ambitions are realised.

Perhaps more of a product-market-fit trial than anything else, Flash has initially used off-the-shelf e-scooters at launch, whilst simultaneously developing its own hardware and technology. The startup is headquartered in Berlin, but Gadowski tells me the team was first posted in China, establishing a supply chain and other partnerships that he believes can help give Flash the edge.

I put to him a common belief amongst some VCs that the e-scooter space in Europe is heading for a bloodbath that will continue to see a huge amount of venture capital pumped into the space, and subsequently many losers and a lot of money lost.

Recent raises by European e-scooter startups include Wind Mobility ($22 million), VOI ($50 million and Tier (€25 million). Meanwhile, Taxify has also announced its entrance into e-scooter rentals, and Bird and Lime have received substantial investment from three of Europe’s top venture capital firms. Index and Accel have backed Bird, and Atomico has backed Lime.

Gadowski appears for the most part unfazed by the swelling of competition coffers, although he does concede that the current “land grab” is forcing Flash to move slightly faster than it might have done otherwise. In some ways, he would have preferred to continue a more staggered, cautious roll-out, describing the startup as “product-first and multi-vehicle,” and says its customers are not just users of the service but local residents more broadly and the authorities with which it needs to coordinate. “Mistakes can be a lot more serious than at Delivery Hero, safety is involved,” he cautions.

The size of recent funding rounds in the space has also surprised him. However, he doesn’t think this is a “Facebook scenario,” where there will only be a single winner. Several micro-mobility companies can happily co-exist, he says, and the early movers are helping to pave the way for others, including Flash.

I suggest that the e-scooter land grab at its current pace also has a high chance of provoking a backlash amongst consumers and/or authorities, perhaps after a more serious safety accident or other source of reputational damage. Gadowski concedes this is definitely a “short-term” risk, but says there is so much determination by governments and local authorities to solve congestion and the last-mile problem, he doesn’t believe it will be a long-term one.

Finally, I asked Gadowski if he is considering acquiring smaller e-scooter startups in Europe (or perhaps elsewhere), as part of a roll-up strategy that would help the company leapfrog competitors. He declined to rule out acquisitions entirely — Delivery Hero was very effective in this regard — but said it doesn’t make much sense right now as hype in the space has pushed valuations way up. A more likely scenario, he says, is investing in or acquiring startups that can help with other aspects of the business, such as in the supply chain.

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