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Y Combinator has kept an eye on cannabis startups over the years, but it’s their latest investment that’s sure to attract the attention of both marijuana users and law enforcement.
SannTek Labs, which is launching with new funding out of Y Combinator’s latest jumbo class of startups, is building a new kind of breathalyzer that can detect blood-alcohol levels but can also determine how much cannabis a person has smoked or otherwise consumed in the past 3-4 hours.
CEO Noah Debrincat say that he wants the startup’s SannTek 315 breath testing device to help officers make stronger “evidence-based decisions” rather than only relying on unsophisticated roadside sobriety tests or blood tests, which can potentially take months to get results for and can lead to false positives by detecting cannabis use that took place several days prior to the test.
The SannTek breathalyzer detects the cannabis molecules in your breath, and gives a police officer a readout that lets them know if you have the drug in your system.
“We are specifically detecting Delta-9 THC, which is the predominant psychoactive component of cannabis,” Debrincat tells TechCrunch. “We understand how that gets into your breath. We understand what it does to you and the impairing side effects. And we know that if people are driving with high concentrations of that in their system, their psycho-motor skills are seriously decreased.”
A young startup building a device that could lead to people being arrested is obviously a pretty high-stakes situation, but Debrincat says they are confident in the tech and there are certifications that they’ll need in order to get the device into law enforcement hands. “The only way that a police officer will buy this is if NHTSA, the National Highway Transportation Safety Association, puts its stamp of approval on it,” Debrincat says, noting that SannTek is already in talks with the agency.
If it’s adopted, the startup’s device will be able to be used pre-arrest to give the officer a number indication of a driver’s impairment, or as SannTek further hones their device, the breathalyzer could be used for post-arrest evidentiary testing back at the precinct in a more controlled environment.
A Canadian startup building a device for U.S. law enforcement isn’t the most popular position, given many of the conversations around systemic discriminatory practices that result in higher police presence in communities of color. But Debrincat hopes that the company’s device can be part of a positive shift due to the greater objectivity it promotes and its tighter window of detection.
“The state of affairs currently is that there’s a bunch of misdemeanor charges for small weed crimes that are happening across America and one way to address that is by federally decriminalizing the drug, sure,” Debrincat says. “But what gives police officers power now is the ability to make a call because there is no [breathalyzer] device.”
There are reasons to be concerned for law enforcement getting a tool that could be used discriminately, but Debrincat says there is also plenty of reason to be concerned for the other drivers that are on the road while cannabis users might be driving impaired. The CEO tells me that drivers are 2x as likely to get into an accident while operating vehicles under the influence of cannabis. Other studies reinforce the risks of driving while high.
The company wants to keep the price of their device low enough that precincts across the U.S. can easily afford them; right now Debrincat says the startup is shooting for the $800-$1,000 range to stay competitive with other options out there.
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Advice on content marketing always talks about getting people to your blog.
But, what about once they’re there — how do you get them to then buy from you?
That’s the conversion half of content marketing, and that’s what I’ll cover: converting your readers into paying customers.
When visitors arrive on your blog, three things should happen:
Demand Curve’s data shows that when readers complete this full chain of events — as opposed to skipping step #2 — they’re more likely to ultimately buy from you.
Why? People trust your brand more after they’ve consumed your content and deemed you to be high quality and authoritative.
We’ve optimized tens of millions of blog impressions, and we have three novel insights to share in this post. Each will hopefully help compel readers to stick around and buy.
Let’s conquer high bounce rates — the bane of content marketers.
First, some obvious advice: Getting visitors to read begins with having a strong intro.
A good intro buys goodwill with readers so they keep reading — and tolerate your boring parts.
There are three components to a good intro:
The web’s biggest blogs include tables of contents at the top of their posts to reassure readers. It not only benefits SEO, it also improves read-through rates.
Once visitors begin reading, you have three tactics to retain them:
This is how we’ll improve our read-through and conversion rates.
Sometimes, when I write a post on Julian.com, I find few people actually finish reading it. They get halfway through then bounce.
I discover this by looking at my scroll-depth maps using Hotjar.com. These show me how far down a page an average reader gets. Then I pair that data with the average time spent on the page, which I get from Google Analytics.
Whenever I notice poor read completion rates, I spend ten minutes optimizing my content:
This routinely achieves 1.5-2x boosts in read-through rates, which can lead to a similar boost in conversion.
You see, I never just publish a blog post then move on.
I treat my posts the same way I treat every other marketing asset: I measure and iterate.
For some reason, even professional content marketers publish their posts then simply move on. That’s crazy. Not spending 10 minutes optimizing can be the difference between people devouring your post or not being able to get halfway through.
Specifically, here’s the process for rewriting a post’s drop-off points to get readers to continue reading.
First, record a scroll heatmap of your blog post. Any heatmap tool will do. I use Hotjar.com.
Next, whenever you see, say, 80% of readers getting midway into your post but only a fraction then make it to the end, you know you have a problem in the back half of your post: it’s verbose, uninsightful, or off-topic.
Your job is to find these drop-off points then rewrite the offending content using four techniques:
Once you’ve ironed out drop-off points, perhaps 35% of your readers finish the post instead of 15%. This reliably works, and it’s the highest-leverage way to achieve conversion improvements on your posts.
This is so self-evident yet no one does it for some reason.
And we’re only just starting. There’s another, more effective technique for optimizing your content: A/B testing paragraphs. Whereas drop-off optimization irons out the kinks in your article, A/B testing is how you take your read-through rates to a new tier.
As we explore the tactics below, you’re welcome to visit two blogs that incorporate these techniques:
If you need a primer on SEO before continuing, see my other TechCrunch article on the topic here and this orientation here.
A/B testing is the process of creating a variation of existing content to see if it will increase conversion.
You want to A/B test the three highest-leverage components of every post:
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Over the past 15 years, I’ve seen a pernicious disease infect a number of marketplace startups. I call it Marketplace Paralysis. The root cause of the disease is quite innocent and seemingly harmless. Smart people with good intentions fall victim to it all the time. It starts when a platform has sufficient scale — such that there is a good amount of data on things like performance, quality rankings, purchase rates, and fill ratios. What a platform implements as a result of that data, and how it’s received by their user base, is what can lead to marketplace paralysis.
In this post, I will detail what Marketplace Paralysis is and what startups can do to avoid it. Before I get into the nitty-gritty, here’s a snapshot of the lessons you’ll learn by reading this post:
The easiest way to explain Marketplace Paralysis is with a hypothetical example. So allow me to introduce you to Labor Marketplace X (LMX).
Equipped with the aforementioned data, the well-intentioned product managers at LMX will think about policies or features to try and improve a KPI, like fill ratio or job success rate. They might craft a policy that would separate users into two tiers.
Tier 1 gets a shiny gold star next to their name, along with extra pay, bonuses, and preferred job access. Tier 2 gets standard pay and standard job access. They’ve done their homework and feel this will benefit the marketplace.
So, they build the feature. They launch it and make an announcement to their users. And then… a revolt!
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Creating backups for massive enterprise deployments may feel like a solved problem, but for the most part, we’re still talking about complex hardware and software setups. Clumio, which is coming out of stealth today, wants to modernize enterprise data protection by eliminating the on-premise hardware in favor of a flexible, SaaS-style cloud-based backup solution.
For the first time, Clumio also today announced that it has raised a total of $51 million in a Series A and B round since it was founded in 2017. The $11 million Series A round closed in October 2017 and the Series B round in November 2018, Clumio founder and CEO Poojan Kumar told me. Kumar’s previous company, storage startup PernixData, was acquired by Nutanix in 2016. It doesn’t look like the investors made their money back, though.
Clumio is backed by investors like Sutter Hill Ventures, which led the Series A, and Index Ventures, which drove the Series B together with Sutter Hill. Other individual investors include Mark Leslie, founder of Veritas Technologies, and John Thompson, chairman of the board at Microsoft .
“Enterprise workloads are being ‘SaaS-ified’ because IT can no longer afford the time, complexity and expense of building and managing heavy on-prem hardware and software solutions if they are to successfully deliver against their digital transformation initiatives,” said Kumar. “Unlike legacy backup vendors, Clumio SaaS is born in the cloud. We have leveraged the most secure and innovative cloud services available, now and in the future, within our service to ensure that we can meet customer requirements for backup, regardless of where the data is.”
In its current iteration, Clumio can be used to secure data from on-premise, VMware Cloud for AWS and native AWS service workloads. Given this list, it doesn’t come as a surprise that Clumio’s backend, too, makes extensive use of public cloud services.
The company says that it already has several customers, though it didn’t disclose any in today’s announcement.
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The notion of the corporate directory has been around for many years, but in a time of more frequent turnover and shifting responsibilities, the founders of Rimeto, a three-year-old San Francisco startup, wanted to update it to reflect those changes.
Today, the company announced a $10 million Series A investment from USVP, Bow Capital, Floodgate and Ray Dalio, founder of Bridgewater Associates.
Co-founder Ted Zagat says that the founders observed shifting workplace demographics and changes in the way people work. They believed it required a better way to locate people inside large organizations, which typically used homegrown methods or relied on Outlook or other corporate email systems.
“On one hand, we have people being asked to work much more collaboratively and cross-functionally. On the other, is an increasingly fragmented workplace. Employees really need help to be able to understand each other and work together effectively. That’s a real challenge for them,” Zagat explained.
Rimeto has developed a richer directory by sitting between various corporate systems like HR, CRM and other tools that contain additional details about the employee. It of course includes a name, title, email and phone like the basic corporate system, but it goes beyond that to find areas of expertise, projects the person is working on and other details that can help you find the right person when you’re searching the directory.
Rimeto directory on mobile and web (Screenshot: Rimeto)
Zagat says that by connecting to these various corporate systems and layering on a quality search tool with a variety of filters to narrow the search, it can help employees connect to others inside an organization more easily, something that is often difficult to do in large companies.
The tool can be accessed via web or mobile app, or incorporated into a company intranet. It also could be accessed from a tool like Slack or Microsoft Teams.
The three founders — Zagat, Neville Bowers and Maxwell Hayman — all previously worked at Facebook. Unlike a lot of early-stage startups, the company has paying customers (although it won’t share exactly how many) and reports that it’s cash-flow positive. Up to this point, the three founders had bootstrapped the company, but they wanted to go out and raise some capital to begin to expand more rapidly.
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Exchanges like Coinbase have ballooned in size by taking the mechanics of equity markets and fitting them to cryptocurrency markets, but as the space expands in its scope and craftiness, new exchanges trading asset classes native to cryptocurrency are taking off and attracting the attention of top Silicon Valley VCs. Oh, and Coinbase, too.
Blade is a new cryptocurrency derivatives exchange launching in three weeks. Prior to starting the company, CEO Jeff Byun and his co-founder Henry Lee founded OrderAhead, a delivery startup platform that was eventually acquired in-part by Square in 2017. The pair’s newest company shares little in common with their previous venture, but they are bringing aboard some of the same investors to support them.
Blade is announcing that they’ve raised $4.3 million in seed funding from a host of investors, including Coinbase, SV Angel, A.Capital, Slow Ventures, Justin Kan and Adam D’Angelo.
The exchange is tackling perpetual swap contracts.
Perpetuals are a crypto-native trading instrument that Byun says are “arguably the fastest growing segment of cryptocurrency trading.” They allow traders to bet on the future values of cryptocurrencies in relation to another and the instruments have no expiration dates, unlike fixed maturity futures. Traders can bet on how the price of Bitcoin can increase relative to USD, but they can also make bets relative to other altcoins like Monero, DogeCoin, Zcash, Ripple and Binance Coin. Here’s what’s on the Blade menu at the moment.
Blade’s noteworthy spins on perpetuals trading — compared to other exchanges — are that most of the contracts will be set up on simplified vanilla contracts, the perpetuals will also be margined/settled in USD Tether and the company is offering higher leverages (up to 150x on BTC-USD and BTC-KRW) on trades.
Blade is raising funds from Silicon Valley’s VCs, but U.S. investors won’t be legally able to participate in the exchange. U.S. government agencies have been a bit more stringent in regulating cryptocurrencies, so there’s more trading activity taking place on exchanges outside the jurisdiction. Blade itself is an offshore entity with a U.S. subsidiary; its primary market is East Asia.
“It’s kind of a bifurcated market,” Byun tells TechCrunch. “Either you have exchanges like Coinbase or Gemini or Bitrex that cater to the U.S. market that are highly regulated or the exchanges that cater to the non-U.S. market that are much less regulated, but that’s where most of the volume is.”
While the company is still three weeks away from launch, the founders have bold ambitions.
“In the long term, we want to be the CME (Chicago Mercantile Exchange) of crypto,” Byun tells me. “Coinbase and Binance are building this foundational structure for crypto, but I think we are too and in a sense that derivatives are at their core about risk transfer, we want to be building the foundational layer for risk transfer in the crypto markets.”
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London-based edtech startup pi-top has cut a number of staff, TechCrunch has learned.
According to our sources, the company has reduced its headcount in recent weeks, with staff being told cuts are a result of restructuring as it seeks to implement a new strategy.
One source told us pi-top recently lost out on a large education contract.
Another source said sales at pi-top have been much lower than predicted — with all major bids being lost.
Pi-top confirmed to TechCrunch that it has let staff go, saying it has reduced headcount from 72 to 60 people across its offices in London, Austin and Shenzhen.
Our sources suggest the total number of layoffs could be up to a third.
In a statement, pi-top told us:
pi-top has become one of the fastest growing ed-tech companies in the market in 4.5 years. We have a unique vision to increase access to coding and technical education through project based learning to inspire a new generation of makers.
As part of this vision we built up our global team with a view to winning a particularly exciting national project in a developing nation, where we had a previous large scale successful implementation. We were disappointed this tender ultimately fell through due to economic factors in the region and have subsequently made the unfortunate but unavoidable decision to reduce our team size from 72 to 60 people across our offices in London, Austin and Shenzhen.
Moving forward we are focusing on our growth within the USA where we continue to enjoy widespread success. We are rolling out our new learning platform pi-top Further which will enable schools everywhere to access a world of content enhanced by practical hands-on project based learning outcomes. We have recently completed a successful Kickstarter campaign and we look forward to releasing our newest product pi-top [4].
We are also proud to have appointed Stanley Buchesky as our new Executive Chairman. Stanley brings a wealth of experience in the ed-tech sector and will be a great asset to our strategy going forward.
Pi-top sells hardware and software designed for educational use in schools. It’s one of a large number of edtech startups that have sought to tap into the popularity of the “learn to code” movement by piggybacking atop the (also British) low-cost Raspberry Pi microprocessor — which provides the computing power for all pi-top’s products.
Pi-top adds its own OS and additional education-focused software to the Pi, as well as proprietary cases — including a bright green laptop housing with a built-in rail for breadboarding electronics.
Its most recent product, the pi-top 4, which was announced back in January, looks intended to move the company away from its first focus on educational desktop computing to more modular and embeddable hardware hacking that could be used by schools to power a wider variety of robotics and electronics projects.
Despite raising $16M in VC funding just over a year ago, pi-top opted to run a crowdfunding campaign for the pi-top 4 — going on to raise almost $200,000 on Kickstarter from 521 backers.
Pi-top 4 backers have been told to expect the device to ship in November.
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Postmates plans to make its IPO paperwork public in September, TechCrunch has learned. Despite previous reports indicating the on-demand delivery company is seeking an M&A exit, sources close to the matter say Postmates is on track to go complete an initial public offering this year.
With the S-1 dropping in September, San Francisco-based Postmates is expected to debut on the stock exchange by the end of the third fiscal quarter of 2019. The company has tapped JP Morgan Chase and Bank of America Corp. as lead underwriters, Bloomberg previously reported, though other details of the float, including the size and price range of the proposed offering, have yet to be announced.
“We can’t comment on the IPO process and we don’t comment on rumor or speculation,” a Postmates spokesperson told TechCrunch.
In February, Postmates confidentially filed with the U.S. Securities and Exchange Commission for an IPO. Shortly after, Postmates held M&A talks with DoorDash, another food delivery unicorn, according to people familiar with the matter, but failed to come to mutually favorable terms. DoorDash declined to comment for this story.
Postmates has raised $681 million to date with its latest round coming in earlier this year at a $1.85 billion valuation. DoorDash, on the other hand, reached a $12.6 billion valuation in May with a $600 million Series G.
As Postmates gears up for its IPO, the food delivery business continues to consolidate. DoorDash last week purchased another food delivery service, Caviar, from Square in a deal worth $410 million. Uber is said to have considered buying Caviar, which had been looking for a buyer at least since 2016, according to Bloomberg.
DoorDash has been under heavy scrutiny as of late for the way it pays its drivers. Back in February, we reported how DoorDash offsets the amount it pays drivers with tips from customers. It wasn’t until after much backlash that DoorDash finally said it would change its policies. DoorDash has yet to implement the new policy.
How Postmates will fare on the public markets is up for debate. The billion-dollar company will go head-to-head with other public businesses in the space, including powerhouses Uber and Grubhub.
Uber last week shared disappointing second-quarter earnings. The company’s food delivery unit, UberEats, however, continues to grow at an impressive rate. UberEats did $3.39 billion in gross bookings last quarter with monthly active platform consumers (MAPCs) growing more than 140% year-over-year. Still, the unit is years away from profitability, Uber chief Dara Khosrowshahi told CNBC on Thursday.
Postmates’ updated IPO plans follow a report from Bloomberg that WeWork expects to make its IPO prospectus available in the next week. Eyes will be on both WeWork, which hopes to raise more than $3.5 billion, and Postmates, as the companies occupy two unproven categories.
Postmates follows Uber, Lyft, Pinterest and many others to the public markets in 2019, a year when many of Silicon Valley’s most notable unicorns finally decided to make the transition from private to public.
Postmates, founded in 2011 by Bastian Lehmann, is backed by Spark Capital, Founders Fund, Uncork Capital, Slow Ventures, Tiger Global, Blackrock and others.
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Reference docs and spreadsheets seemingly make the world go ’round, but what if employees could just close those tabs for good without losing that knowledge?
One startup is taking on that complicated challenge. Predictably, the solution is quite complicated, as well, from a tech perspective, involving an AI solution that analyzes everything on your PC screen — all the time — and highlights text onscreen for which you could use a little bit more context. The team at Polarity wants its tech to help teams lower the knowledge barrier to getting stuff done and allow people to focus more on procedure and strategy than memorizing file numbers, IP addresses and jargon.
The Connecticut startup just closed an $8.1 million “AA” round led by TechOperators, with Shasta Ventures, Strategic Cyber Ventures, Gula Tech Adventures and Kaiser Permanente Ventures also participating in the round. The startup closed its $3.5 million Series A in early 2017.
Interestingly, the enterprise-centric startup pitches itself as an AR company, augmenting what’s happening on your laptop screen much like a pair of AR glasses could.
The startup’s computer vision software that uses character recognition to analyze what’s on a user’s screen can be helpful for enterprise teams importing things like a company Rolodex so that bios are always collectively a click away, but the real utility comes from team-wide flagging of things like suspicious IP addresses that will allow entire teams to learn about new threats and issues at the same time without having to constantly check in with their co-workers. The startup’s current product has a big focus on analysts and security teams.
via Polarity
Using character recognition to analyze a screen for specific keywords is useful in itself, but that’s also largely a solved computer vision problem.
Polarity’s big advance has been getting these processes to occur consistently on-device without crushing a device’s CPU. CEO Paul Battista says that for the average customer, Polarity’s software generally eats up about 3-6% of their computer’s processing power, though it can spike much higher if the system is getting fed a ton of new information at once.
“We spent years building the tech to accomplish [efficiency], readjusting how people think of [object character recognition] and then doing it in real time,” Battista tells me. “The more data that you have onscreen, the more power you use. So it does use a significant percentage of the CPU.”
Why bother with all of this AI trickery and CPU efficiency when you could pull this functionality off in certain apps with an API? The whole deliverable here is that it doesn’t matter if you’re working in Chrome, or Excel or pulling up a scanned document, the software is analyzing what’s actually being rendered onscreen, not what the individual app is communicating.
When it comes to a piece of software analyzing everything on your screen at all times, there are certainly some privacy concerns, not only from the employee’s perspective but from a company’s security perspective.
Battista says the intent with this product isn’t to be some piece of corporate spyware, and that it won’t be something running in the background — it’s an app that users will launch. “If [companies] wanted to they could collect all of the data on everybody’s screens, but we don’t have any customers doing that. The software is built to have a user interface for users to interact with so if the user didn’t choose to subscribe or turn on a metric, then [the company] wouldn’t be able to force them to collect it in the current product.”
Battista says that teams at seven Fortune 100 companies are currently paying for Polarity, with many more in pilot programs. The team is currently around 20 people and with this latest fundraise, Battista wants to double the size of the team in the next 18 months as they look to scale to larger rollouts at major companies.
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Attentive, a startup helping retailers personalize their mobile messages, is announcing that it has raised $40 million in Series B funding.
The startup was founded by Brian Long and Andrew Jones, who sold their previous startup TapCommerce to Twitter. When they announced Attentive’s $13 million Series A last year, Long told me the startup is all about helping retailers find better ways to communicate with customers, particularly as it’s harder for their individual apps to stand out.
Attentive’s first product allowed for what it calls “two-tap” sign-up, where users can tap on a promotion link from a brand’s website, creating a pre-populated text that opts them in to for SMS messages from that retailer.
Since then, it’s built a broader suite of messaging tools, with support for cart abandonment reminders, A/B testing, subscriber segmentation and other features that allow retailers to get smarter and more targeted in their messaging strategy.
The startup says mobile messages sent through its platform are seeing click-through rates of more than 30%, and that it now works with more than 400 customers, including Sephora, Urban Outfitters, Coach, CB2 and Jack in the Box.
The Series B was led by Sequoia, with participation from new investors IVP and High Alpha, as well as previous backers Bain Capital Ventures, Eniac Ventures and NextView Ventures. The plan for the new funding is to grow the entire team, especially sales and engineering.
“CRM is changing,” Long said in a statement. “Businesses can’t build a relationship with the modern consumer through email alone. Email performance, as measured by how many subscribers click-through on a message, is down 45% over the last five years. Rather than continuing to shout one-way messages at consumers, smart brands will stay relevant by embracing personalized, real-time, two-way communication channels.”
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