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Flowhub raises $23 million for its retail management software for cannabis dispensaries
As cannabis dispensaries flourish across the country alongside the push to legalize medicinal and recreational marijuana use, demand for tools to manage the specificities of the weed retail business continues to increase.
Looking to address that need, Flowhub, a cannabis retail management software vendor, has raised $23 million from a consortium of investors including e.ventures, Evolv Ventures (the Kraft Heinz-backed venture capital fund) and Poseidon.
The legal cannabis market is expected to top $66 billion over the next five years, according to estimates from Grand View Research, and entrepreneurs looking to get into the highly regulated industry are flocking to Flowhub’s suite of dispensary management services.
Not only does the company’s software address compliance concerns, according to chief executive officer Kyle Sherman, but it also integrates with companies like Dutchie for online ordering to facilitate in-store purchases and adds integrations with LeafBuyer and Leafly to provide more information to potential retailers.
The company also updated its software to include the “Stash” app, a mobile inventory management system, and a cashier app that integrates with iPads or other tablets to improve point-of-sale capabilities.
“What we are experiencing right now is an end to cannabis prohibition and Flowhub is on the front lines of this movement,” said Sherman, in a statement. “Every legal transaction completed with the Flowhub retail platform is a positive step forward, and we are committed to helping our customers build thriving cannabis businesses. With this investment, we will continue to automate the cannabis supply chain, retail and reporting processes and bring to market technology solutions that are not only shaping the cannabis retail business, but also driving forward the future of legalization and de-stigmatization.”
For investors like Emily Paxhia, a managing director at Poseidon, the opportunity to back a company helping to automate compliance in the regulated marijuana industry was too tempting to pass up.
“The compliance and regulation aspects make this a unique industry and Flowhub is one of the leading cannabis tech companies that is taking a meticulous and strategic approach,” Paxhia said in a statement. “We saw the potential for Flowhub’s technology and mission early on and we’re thrilled to continue to support them in delivering the cannabis retail experience of the future.”
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Headless CMS company Strapi raises $4 million
French startup Strapi has raised a $4 million seed round led by Accel and Stride.vc. The company has been working on an open-source Node.js headless content management system.
That’s a lot of technical words in a row, but it’s not that hard to understand what Strapi is. Content management systems, or CMS, are web applications that let you publish and manage content on a website. It can be a blog, a corporate website with multiple pages, a portfolio, etc. The most popular CMS in the world is WordPress.
Over the past few years, many companies and developers have started to separate the CMS back end (the administration pages where you write and upload content) and the front end (the public website accessible to anyone).
This way, you can run a CMS in the back end, and develop your own custom front end that queries the back end using API calls — this is what’s called a headless CMS. It provides a ton of flexibility and should make your website faster. This is how TechCrunch.com works for instance, with WordPress running as a headless CMS.
Strapi has become quite popular in the headless CMS space, with 500,000 downloads and 250 contributors to the open-source project. The first version was released on GitHub in 2015.
Anybody can download Strapi and run it on their own server. You can then develop your front end, fetch content in your mobile app using the Strapi API and more. Strapi lets you customize the admin panel so that you only see the fields you need when you add content. It works with SQLite, MongoDB, MySQL and Postgres databases.
The company plans to build an ecosystem of plugins to expand the features of your CMS installation. Eventually, the startup could launch a hosted version of Strapi so you don’t have to manage the server infrastructure yourself.
Solomon Hykes, Guillermo Rauch and Eli Collins are also participating in today’s round. Existing investors include Bpifrance, SGPA, François-Charles Debeunne, Jean-Philippe Bellaiche, Kima Ventures, Nicolas Debock, Patrick Dalsace and Nicolas Rosset.
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Interior design startup Havenly raises $32 million
Interior design platform Havenly is raising $32 million in new funding to create its first private label brand as the startup aims to integrate its own products into its design recommendation engine.
The Denver-based startup is an online interior design consultancy of sorts that pairs with expert designers users looking to redesign their homes or apartments.
For Havenly, there have been two sides of the business, commercial partnerships with vendors and the paid design services for users. It’s a model we’ve also seen from the folks at Modsy. Havenly puts a bit more of an emphasis on pairing users with an individual designer with whom they can chat on the phone and share their hopes for the space, something CEO Lee Mayer says can help make the space feel more customized to them.
“Your home is very personal, if you and I show up to work one day and we have the same shirt, that may not be that weird. It is a little weird if I walk into your living room and it looks exactly like mine,” Mayer tells TechCrunch.
The big evolution with this raise will be that Havenly is going to start putting its own products into the mix with a private label called Cove Goods. The line largely seems to be focused on accent pieces, but they are working on some furniture as well.
Pricing for their services sits between $69 and $99 depending on whether you’re starting from a blank slate or just want some additional pieces recommended to you that you can buy through the platform. The startup can also send you custom floor plans and layout renders to show you what your space will look like.
Havenly has now raised $57.8 million. Series C investors included Foundry Group, Lerer Hippeau, Kickstart Ventures and Gingerbread Capital.
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Brooklyn-based construction robotics startup Toggle gets $3M seed fund
Toggle, a Brooklyn-based robotics startup, announced today that it scored $3 million in seed funding. The early-stage round was led by Point72 Ventures’ AI Group, with participation from Mark Cuban and VC Twenty Seven Ventures. The series follows a 2018 pre-seed round of $570,000 from its Urban-X accelerator, Urban Us, Accelerate NY / Empire State Development and Perl Street Capital.
The 15-person startup creates robotics that fabricate and assemble rebar. It’s designed to work in tandem with existing robotics and steel fabrication technologies, while speeding up the process up to 5 times, by the company’s count.
Toggle has already begun a soft launch “for a wide range of projects in New York City and the surrounding area,” according to the company. It expects to ramp up toward commercial production over the course of the next year and a half. CEO Daniel Blank tells TechCrunch that the seed round will be used toward R&D and growing the Toggle team.
“This funding will be used to further develop our technology — both the hardware and software — around assembly and fabrication automation, as well as grow the engineering team that supports this development,” Blank tells TechCrunch. “The funding also provides us with a strong foundation for our manufacturing operation which is already supplying services and materials to customers in New York City and the surrounding region.”
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Algolia finds $110M from Accel and Salesforce for its search-as-a-service, used by Slack, Twitch and 8K others
Algolia, one of the group of startups that provides search as a service for websites and apps as an alternative to Google and other search engines, is announcing a major round of funding today to fuel its growth. The startup — which already has more than 8,000 customers, including big names like Twitch, Slack, Discovery and LVMH — has closed a Series C of $110 million, money it plans to invest in R&D around its search technology, including doubling down on voice, and further global expansion in Europe, North America and Asia Pacific.
This Series C is being led by Accel, with other investors in this round including Salesforce Ventures (along with others that are not being named).
The funding is coming at a time of strong growth for Algolia, whose basic premise — to offer an easy-to-use, API-based search service for businesses, as a way to buy search tech rather than build from the ground up using search platforms — has seen a lot of traction.
It was already active in the various regions where it plans to grow: Founded originally in France, Algolia is now based out of San Francisco and has been in Asia since 2014, most recently doubling down on business in Japan, and when it last raised money in June 2017, it had only 3,000 customers.
Algolia had raised $74 million prior to this, with previous investors including Accel, Point Nine Capital, Storm Ventures, Y Combinator, 500 Startups and a number of individuals, among others.
While Algolia is not disclosing its valuation, the prospects for building a big, enterprise-focused search business are there. As a point of comparison, consider the enterprise search company Elastic, which went public in 2018 and now has a market cap of some $6.7 billion after being valued at a mere $700 million when it was still private. Even with 8,000 customers now at Algolia, this is just the tip of the iceberg: Algolia cites estimates that there are some 1.8 billion websites and millions of apps on the market today.
Having Salesforce as a strategic backer in this round is notable, as the CRM giant currently does not have a native search product in its wide range of cloud-based services for enterprises, instead opting for endorsed integrations with third parties, such as Algolia competitor Coveo. The plan will be to further integrate with Salesforce, although there are no products to speak of as of yet.
“Algolia has been a great search innovator and delivers unique experiences for customers across Commerce,” said Mike Micucci, CEO, Salesforce Commerce Cloud. “Algolia’s integration into the Commerce Cloud platform will continue to drive momentum and mutual success with our developer, partner and customer community.”
At a time when search continues to be a critical cornerstone for how an organization presents itself online, and the effort to provide a counterbalance against the power of Google in search continues apace, this essentially gives Salesforce a financial foothold in one of the faster-growing companies in the space.
As my colleague Romain has previously noted in his coverage of Algolia, the company’s unique selling point has been the fact that it provides a super-fast and effective search tool that you can integrate into a site or app easily by way of an API.
This in contrast to solutions that either are built in-house from the ground up, or rely on more lengthy and more expensive integrations to get up and running. Alongside that, Algolia has more recently released supplementary tools, such as search analytics and A/B testing to help optimise results and understand better what it is that site/app visitors want to know.
The funding comes at an interesting time in the world of search. Google has effectively dominated the market for years with an open web approach to ordering the world’s information: the primary point of entry is Google.com, and while you can tailor your results based on your search terms, the selling point is that you can search for anything and everything.
But in more recent years we’ve seen a big shift. Awareness of issues such as privacy and data protection have turned some off from the idea of open-ended browsing powered by advertising, and as we and the internet itself has gotten more sophisticated, sometimes the open-ended search feels too wide for our purposes, and web publishers themselves are less inclined to give over that search traffic to Google.
That’s given rise to more focused vertical search services, and — even more specifically — better search within sites and apps themselves. This is the context that has given rise to Algolia and others like it (for example Lucidworks raised $100 million in August).
The landscape is big, but it remains one that Algolia thinks best served by staying focused.
“We have no plans to build a consumer service,” CEO Nicolas Dessaigne said. “There are a lot of companies like Amazon and Google doing a great job. We like to think of them as partners in a way, educating the whole world about search.”
“Behind a world-class team of search experts and a passionate customer base, Algolia has become the market leader in Search-as-a-Service,” said Nate Niparko, partner at Accel. “Algolia is accelerating innovation in personalized and intelligent search, enabling companies to deliver a great user experience that drives improved business results. We are excited to double down on Algolia and support their mission to lead the search and discovery market.”
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Newly rebranded Thimble raises $22M to bring flexible insurance to the gig economy
Thimble, which offers flexible, short-term insurance to small businesses and freelancers, is announcing that it has raised $22 million in a Series A funding round led by IAC.
Until today, the startup was known as Verifly, a name tied to the company’s initial aim of providing insurance to drone pilots. However, founder and CEO Jay Bregman (who previously founded ridesharing company Hailo) said that thanks to customer demand, the team kept adding insurance for different types of businesses — and now it’s rebranding to reflect that broader vision.
While it’s easy to talk about Thimble customers as being part of the “gig economy,” Bregman noted that these aren’t just people driving for Uber or delivering for Postmates — only 4% of the company’s customers identify as gig economy workers.
“There is this larger thing called the gig economy: People working in flexible ways, on their own terms,” he said.
In fact, Thimble now says it provides liability coverage for customers in more than 100 professions, including handymen, landscapers, DJs, musicians, beauticians and dog walkers. Policies can be purchased directly from the Thimble website or app by the hour, day, week, month or year.
The idea, Bregman said, is that as work becomes shorter term and “more transactional,” it doesn’t make sense to buy an annual insurance policy. To illustrate that point, he noted that 75% of customers didn’t have insurance before buying from Thimble, and that 50% of customers are buying policies to cover a single day or less. And the company says it’s on track to sell 100,000 by the end of the year.
Thimble’s policies are underwritten by Markel, an insurance company that Bregman praised for its “infrastructure and talent.”
At the same time, he said, “We have always been the owner of the product itself. Basically, we worked with carrier partners to bring [our products] to market; the way we do that may evolve slightly as we get older and more mature.”
Thimble has received regulatory approval to sell insurance in 48 states so far. Asked whether the broader political debates about whether gig workers are employees could affect the company’s business, Bregman pointed again to the fact that the vast majority of Thimble customers don’t consider themselves gig workers.
“Our only fear here is that in trying to solve a very particular problem with long-term gig employment, that some of these laws may actually unintentionally scare off or capture legitimate freelancers,” he said.
As for the investment, IAC’s chief strategy officer Mark Stein acknowledged that the digital media holding company doesn’t make many early-stage, minority investments. But he said that deals like this are about “planting seeds.”
“What we think about at IAC is: How can we go about planting seeds of growth for the future? What will become the next ANGI Homeservices? What will become the next Match Group?” Stein said, alluding to two IAC-owned businesses that may get spun off. “We need to find these kinds of large, addressable market opportunities now in the hopes of creating very large, industry-changing companies in the future.”
Previous investors Slow Ventures, AXA Venture Partners and Open Ocean also participated in the round, bringing Thimble’s total funding to $29 million.
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Level Home emerges from stealth with $71M from Walmart and Lennar and a new take on the smart lock
As companies like Google, Amazon and Apple hone their strategies to build the brain that helps you use the smart home of the future, where a new wave of internet-enabled appliances, climate and security systems and other connected objects can be connected and controlled through their hubs, a new smart home startup called Level Home is emerging from stealth today with a big packet of funding, a sales deal, and a hope of bringing something new to the table, by focusing on ways of rethinking old things you own already, starting with the lock on your front door.
The Level Lock, its first patented product, is a system — tested for durability, powered by a basic CR2 battery (average life: one year), equipped with ANSI GRADE 1/A security and encryption — that is fitted into the existing dead bolt on your door to make it “smart”.
Level Home says you can install the Lock yourself using a basic number-two screwdriver — “the most common tool in the American home”, says CEO and co-founder John Martin — or you can engage Level Home’s installation partner, HelloTech, to set it up.
The key thing (heh) with the Level Lock is that you door will not look any different after you install it. But linking it up with HomeKit, you can then use an Apple iPhone or Watch to unlock it (or, you can also still use the physical keys that come with the lock to open the door). Through the app, you can then also provide one-off or repeat access to others and monitor who comes and goes.
“We like to think of this as the first invisible smart lock,” Martin said in an interview. “Why would we take the things away that matter, that are a part of who you are such as the look of your home, just in the name of tech? We have to do a better job of bringing technology into your house, in a way that preserves it as your home.”
Priced at $249 when it goes on direct sale (first in the US), the Lock is available now for preorder on Level Home’s site. But when the Lock does become generally available, you will be able to get it in more places beyond Level Home’s site, and at a lower price.
That’s because, along with the launch of the Level Lock and the company itself, Level Home is also announcing that it has raised $71 million in funding in the years that it has been in stealth.
Investors include a firm called Hut 8 Ventures (not connected to Hut 8 cryptocurrency mining, I’m told), Lennar Homes — the home builder that has worked with the likes of Apple and Amazon to incorporate connected features into new properties, and is a prolific investor in startups focused on the next generation of homes — and Walmart.
The retail giant has been working double time to “level up” to Amazon on the e-commerce front, building a range of services online and increasing the ways in which it can connect with shoppers beyond visits to its large retail locations, and while Level Home is not disclosing any details yet on how it will work with its strategic investors, you could imagine its involvement having more than one touchpoint.
It could be a very strong sales channel for the Level Lock through its many well-visited retail locations.
But it could also be sold potentially as part of a bigger service offering, in competition with something like Amazon Key, where Walmart offers smart locks to its customers as part of a bigger home delivery business.
Walmart started down this road back in 2017, when it first partnered with smart lock maker August to test in-home delivery. Today — Level Home’s launch was timed to coincide with this, it seems — Walmart is taking that out of the test phase with the launch of InHome Delivery.
Going live first in Kansas City, Pittsburgh and Vero Beach, Walmart has chosen Level Lock as its key partner for door locks, installing locks for customers at a price of $49 so that Walmart delivery people can bring items you’ve purchased or pick up those you’re returning even when you are not at home. (The service itself costs $19.99 per month for membership and if you opt for garage delivery you’re sold a different lock, from GoControl.)
“We’re pleased to make an investment in Level Home as they unveil their latest technology, the Level Lock,” said Ashley Hubka, Senior Vice President of Corporate Strategy, Development and Partnerships, Walmart, in a statement. “Smart technology products and home automation provide us with more opportunities to serve customers in new ways today and into the future.”
Partnerships with the likes of Walmart and Lennar sound like a big deal, considering that the company hasn’t tested its product or brand in the market, and the area of smart home hardware is also very crowded already.
Part of the reason for the leap may be because of the background of the founders. John Martin (CEO) and Ken Goto (CTO) have worked together for decades across a range of major tech and other consumer companies including Microsoft, Starbucks and Apple. Underneath them, they have assembled a wider team of about 50 of like-minded people to bring that vision into the physical world.
“Much of the current company are people from Google, Microsoft, and Facebook and others,” said Goto. “We have a shared level of talent and capability.”
To be very clear, Martin and Goto are very far from the image of young startup-hopefuls. Martin told me he didn’t even really like the term “startup.” Instead, the two are taking a measured and very confident approach to the bigger task of thinking about how to approach a new generation of hardware.
For them, it isn’t so much as “disrupting” what is already being used, as it is trying to augment it to bring in a wider population of adopters beyond those who embrace the cutting edge of tech.
“We could have made anything for the connected home, so and we thought for weeks about what to invent,” Martin told me about the pair’s decision to focus first on the front door lock three years ago.
“We had a couple of fundamentals: we wanted products for everyday life, and we didn’t want home automation out of the mainline of what normally happens. We didn’t want lightbulbs to change color for the sake of it, and we didn’t want to appeal just to the tech professional. So we thought entry was the right point to start.”
Or, you could say entry was a good point of entry.
Of course, Level Home isn’t the first to cotton onto this progression of logic. Smart doors and smart locks are everywhere now and have been one of the biggest areas of “smart home” hardware — although ironically, they are not being used all that much.
“When we looked at first generation smart locks, we were offended by how aggressively the experience was departing from how people use locks today.” By this, Martin is referring to things like physical keys, or aesthetically pleasing doors and locks without large electronic objects attached to them.
Indeed, the smart home market has not been a home run so far, but it shows some promise. Overall, smart home devices are services are projected to generate revenues of nearly $74 million this year, nearly doubling to $141 billion by 2023. A stream of hardware sales will underpin that growth, with some 140 million smart locks and other home security devices — the second-biggest category after video entertainment — expected to be shipped this year, growing to 352 million by 2023 globally.
But within that, penetration has not been massive. In Europe, only around 11% of homes have smart home devices in them (not counting phones). In the US, the figure is only slightly higher, at 15%. That speaks to a still-nascent market, but also the fact that many people’s imaginations, and crucially wallets, have get to be captured by what is on offer today.
That spells opportunity for the smart home entrepreneurs, and investors willing to take the leap to back them.
Martin and Goto said that they have a pipeline of several other products that they will be working on, although for now, they are keeping quiet on what those might be.
I’ve searched and can only so far find patents for the Lock system, but the two tell me that the basic idea will be to continue presenting alternative versions of the smart home: to quietly make our lives at home easier and more connected, but without any massively perceptible shifts on the outside, or none that wouldn’t feel natural to the average user.
What might that mean? That could be more “smartening” of dumb things in the way that Level Home has done with the dead bolt, or potentially a kind of skeuomorphic approach, but for physical objects (maybe even in a tip of the hat to their early Apple pedigree). Move slow, don’t break things.
In a market with a lot of options for how to bring more modern objects into the mix that genuinely look like the future, this could be a good differentiator.
“Level Home’s unique approach and technology is a game changer for homebuilders,” said Eric Feder, Managing General Partner, Lennar Ventures, in a statement. “As one of the nation’s leading home builders, Lennar is founded on a long tradition of quality craftsmanship and attention to detail. The Level Lock will transform the smart lock category by allowing home builders to offer innovation without having to compromise on their home experience.”
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True Balance raises $23M to bring its payments app to more small cities and towns in India
South Korean startup True Balance, which operates an eponymous financial services app aimed at tens of millions of users in small cities and towns in India, has closed a new financing round as it looks to court more first-time users in the world’s second largest internet market.
True Balance said on Tuesday that it has raised $23 million in its Series C financing round from seven Korean investors — NH Investment & Securities, IBK Capital, D3 Jubilee Partners, SB Partners, Shinhan Capital and existing partners IMM Investment and HB Investment.
TechCrunch reported earlier this year that True Balance — which has raised $65 million to date, including the $38 million that it closed in its previous financing round — was looking to raise as much as $70 million in its Series C round.
True Balance began its life as a tool to help users easily find their mobile balance, or top up pre-pay mobile credit. But in its four-year journey, its ambition has significantly grown beyond that. Today, it serves as a digital wallet app that helps users pay their mobile and electricity bills, and offer credit to customers so that they can pay later for their digital purchases.
The startup says it has amassed more than 60 million registered users in India, most of whom live in small cities and towns — or dubbed India 2 and India 3. Most of these users are coming online for the first time and True Balance says it has an army of local agents — who get certain incentives — to help first-time internet users understand the benefit of online transactions and start using the app.
True Balance says it clocks more than 300,000 digital transactions on its app each day. The startup, which recently introduced e-commerce shopping services on its app to sell products like smartphones, has clocked $100 million in GMV sales in the country to date.
Charlie Lee, founder of True Balance, said the startup will use the fresh capital to bulk up the offerings on the app. Some of the features that True Balance intends to add before the end of this fiscal year include the ability to purchase bus and train tickets, digital gold and book cooking gas cylinders.
True Balance will also expand its lending and e-commerce services, Lee said. Its lending feature was used 1 million times in three months when it was introduced earlier this year. “We aim to strengthen our data and alternative credit scoring strategy to provide better financial services to our target — the next billion Indian users. Our goal is to reach 100 million digital touch points and become one of the top fintech companies in India by 2022,” he added in a statement.
Even as more than 600 million users in India are online today, just about as many remain offline. In recent years, many major companies in India have started to customize their services to appeal to users in India 2 and India 3 — who also have limited financial power.
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South Korea-based Mathpresso, developer of tutoring app Qanda, raises $14.5 million Series B
Seoul-based education technology startup Mathpresso announced today that it has raised $14.5 million in Series B funding. The company’s flagship app is Qanda, which provides students with math and science help and tutoring. Participants in the round include Legend Capital, InterVest, NP Investments and Mirae Asset Venture Investment.
This brings Mathpresso’s total funding so far to $21.2 million. Its previous round of funding was a $5.3 million Series A announced at the end of last year.
Mathpresso says Qanda (the name stands for “Q and A”) is currently used by a third of students in South Korea. The app launched in markets including Japan, Vietnam, Indonesia and Singapore last year and now has users in more than 50 countries. Qanda uses AI-based optical character recognition to scan math problems. Students take a photo of a problem and upload it to get instructions for how to solve it from the app or tutors.
In a statement, Legend Capital managing director Joon Sung Park said, “As an early investor of China’s leading mobile education companies such as Zuoyebang and Onion Math, Legend Capital has witnessed robust growth of China’s mobile education market. We strongly believe that Mathpresso has the technological and operation capabilities to expand overseas and grasp new opportunities emerging from the digitization of education, such as offering personalized learning for each student.”
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Polte raises $12.5 million to track devices using LTE signal
Polte has raised another $12.5 million. The company is building a service that leverages 4G (and potentially 5G) signal to track things for commercial and industrial use cases. The main advantage is that using cellular signal uses a lot less battery than acquiring GPS location and transmitting it over cellular.
Today’s funding round is an extension of the company’s Series A round. In 2017, Polte raised $6 million — and the company is raising another $12.5 million this year. Polte isn’t disclosing the list of investors. The startup participated in TechCrunch’s Startup Battlefield.
There are many potential use cases for Polte, but most of them involve tracking stuff on the move with as little battery as possible. You could use it for your supply chain, if you’re running a logistics or transportation company, in the energy or automotive industry, etc.
If you want to use an IoT device to track a package over multiple weeks, it can be a costly effort as you need to determine the location of the package using GPS and transmit the location of the package over the air. While GPS is insanely accurate, it also requires a ton of battery just to position a device on a map.
That’s why some devices rely on Wi-Fi signal to triangulate a position with a database of Wi-Fi access points. But that’s not as accurate, especially in the countryside.
Polte turns data from the cell modem into location information. It works with existing modems; Polte is a software solution. None of the computing is done on the device itself. Polte-enabled devices transmit 300 bytes of data back to Polte’s servers so the company can determine the location a few seconds later.
This way, you can use cheaper IoT devices to track packages. And if you’re running a company that wants to track thousands or millions of items, that could help you save a ton of money over the long run.
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