Startups
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The rapid rise of Slack has ushered in a new wave of apps, all aiming to solve one challenge: creating a user-friendly platform where coworkers can have productive conversations. Many of these are based around real-time notifications and “instant” messaging, but today a new startup called Threads coming out of stealth to address the other side of the coin: a platform for asynchronous communication that is less time-sensitive, and creating coherent narratives out of those conversations.
Armed with $10.5 million in funding led by Sequoia, the company is launching a beta of its service today.
Rousseau Kazi, the startup’s CEO who co-founded threads with Jon McCord, Mark Rich and Suman Venkataswamy, cut his social teeth working for six years at Facebook (with a resulting number of patents to his name around the mechanics of social networking), says that the mission of Threads is to become more inclusive when it comes to online conversations.
“After a certain number of people get involved in an online discussion, conversations just break and messaging becomes chaotic,” he said. (McCord and Rich are also Facebook engineering alums, while Venkataswamy is a Bright Roll alum.)
And if you have ever used Twitter, or even been in a popular channel in Slack, you will understand what he is talking about. When too many people begin to talk, the conversation gets very noisy and it can mean losing the “thread” of what is being discussed, and seeing conversation lurch from one topic to another, often losing track of important information in the process.
There is an argument to be made for whether a platform that was built for real-time information is capable of handling a difference kind of cadence. Twitter, as it happens, is trying to figure that out right now. Slack, meanwhile, has itself introduced threaded comments to try to address this too — although the practical application of its own threading feature is not actually very user friendly.
Threads’ answer is to view its purpose as addressing the benefit of “asynchronous” conversation.
To start, those who want to start threads first register as organizations on the platform. Then, those who are working on a project or in a specific team creates a “space” for themselves within that org. You can then start threads within those spaces. And when a problem has been solved or the conversation has come to a conclusion, the last comment gets marked as the conclusion.
The idea is that topics and conversations that can stretch out over hours, days or even longer, around specific topics. Threads doeesn’t want to be the place you go for red alerts or urgent requests, but where you go when you have thoughts about a work-related subject and how to tackle it.
These resulting threads, when completed or when in progress, can in turn be looked at as straight conversations, or as annotated narratives.
For now, it’s up to users themselves to annotate what might be important to highlight for readers, although when I asked him, Kazi told me he would like to incorporate over time more features that might use natural language processing to summarize and pull out what might be worth following up or looking at if you only want to skim read a longer conversation. Ditto the ability to search threads. Right now it’s all based around keywords but you can imagine a time when more sophisticated and nuanced searches to surface conversations relevant to what you might be looking for.
Indeed, in this initial launch, the focus is all about what you want to say on Threads itself — not lots of bells and whistles, and not trying to compete against the likes of Slack, or Workplace (Facebook’s effort in this space), or Yammer or Teams from Microsoft, or any of the others in the messaging mix.
There are no integrations of other programs to bring data into Threads from other places, but there is a Slack integration in the other direction: you can create an alert there so that you know when someone has updated a Thread.
“We don’t view ourselves as a competitor to Slack,” Kazi said. “Slack is great for transactional conversation but for asynchronous chats, we thought there was a need for this in the market. We wanted something to address that.”
It may not be a stated competitor, but Threads actually has something in common with Slack: the latter launched with the purpose of enabling a certain kind of conversation between co-workers in a way that was easier to consume and engage with than email.
You could argue that Threads has the same intention: email chains, especially those with multiple parties, can also be hard to follow and are in any case often very messy to look at: something that the conversations in Threads also attempt to clear up.
But email is not the only kind of conversation medium that Threads thinks it can replace.
“With in-person meetings there is a constant tension between keeping the room small for efficiency and including more people for transparency,” said Sequoia partner Mike Vernal in a statement. “When we first started chatting with the team about what is now Threads, we saw an opportunity to get rid of this false dichotomy by making decision-making both more efficient and more inclusive. We’re thrilled to be partnering with Threads to make work more inclusive.” Others in the round include Eventbrite CEO Julia Hartz, GV’s Jessica Verrilli, Minted CEO Mariam Naficy, and TaskRabbit CEO Stacy Brown-Philpot.
The startup was actually formed in 2017, and for months now it has been running a closed, private version of the service to test it out with a small amount of users. So far, the company sizes have ranged between 5 and 60 employees, Kazi tells me.
“By using Threads as our primary communications platform, we’ve seen incredible progress streamlining our operations,” said one of the testers, Perfect Keto & Equip Foods Founder and CEO, Anthony Gustin. “Internal meetings have reduced by at least 80 percent, we’ve seen an increase in participation in discussion and speed of decision making, and noticed an adherence and reinforcement of company culture that we thought was impossible before. Our employees are feeling more ownership and autonomy, with less work and time that needs to be spent — something we didn’t even know was possible before Threads.”
Kazi said that the intention is ultimately to target companies of any size, although it will be worth watching what features it will have to introduce to help handle the noise, and continue to provide coherent discussions, when and if they do start to tackle that end of the market.
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Zone7, the company using data and analytics to identify the potential for injuries with athletes, has raised $2.5 million in seed funding.
The company monitors athletes’ performance to determine when they need to be rested to avoid the potential for career-threatening injuries.
The company’s technology has managed to attract investors including Resolute Ventures, UpWest, Amicus Capital, Dave Pell, PLG Ventures, along with athletes like National Basketball Association star Kristaps Porzingis.
Teams in the MLB, La Liga, Champions League, MLS, collegiate athletic departments and Olympic teams are all using the company’s technology, according to a statement.
“Getting injured is one of the worst experiences for any athlete,” said Porzingis, in a statement. “The technology behind Zone7 is extremely impressive and has the potential to change the landscape of sports forever.”
Zone7 uses pattern recognition based on an athlete’s past performance and medical history to determine what course of action is best for the player to ensure that they don’t get hurt. So far, the company says it has achieved a 95 percent accuracy rate when it comes to predicting injuries and reduced the potential for injuries by 75 percent, according to a statement.
“Injuries in professional sports cost billions annually, but in the era of big data it doesn’t have to be that way,” said Tal Brown, co-founder and CEO of Zone7. “Professional sports franchises have massive amounts of untapped health and performance data that, when unlocked by AI, can become one of a team’s most valuable assets. By better understanding every athlete’s breaking points and implementing personalized intervention plans to prevent injuries before they occur, teams no longer have to accept injuries as an inevitability.”
Founded by Tal Brown and Eyal Eliakim, two Israelis who served in the military’s elite technology division called the 8200, Zone7’s executive team has years of experience working with Salesforce on the development of its Einstein product and with professional soccer franchises in Israel.
“Professional sports is, for the most part, slow to embrace medical and performance data, and as such, this has historically been a difficult target market to break into. Tal and Eyal have built a compelling product that is making teams stand up and take notice. It’s literally a game changer,” said Raanan Bar-Cohen, general partner at Resolute Ventures, in a statement. “The fact that Zone7 is the first company to show injuries can be avoided by using artificial intelligence, makes us extremely excited to partner with the Zone7 team.”
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Polis founder Kendall Tucker began her professional life as a campaign organizer in local Democratic politics, but — seeing an opportunity in her one-on-one conversations with everyday folks — has built a business taking that shoe leather approach to political campaigns to the business world.
Now the company she founded to test her thesis that Americans would welcome back the return of the door-to-door salesperson three years ago is $2.5 million richer thanks to a new round of financing from Initialized Capital (the fund founded by Garry Tan and Reddit co-founder Alexis Ohanian) and Semil Shah’s Haystack.vc.
The Boston-based company currently straddles the line between political organizing tool and new marketing platform — a situation that even its founder admits is tenuous at the moment.
That tension is only exacerbated by the fact that the company is coming off one of its biggest political campaign seasons. Helping to power the get-out-the-vote initiative for Senatorial candidate Beto O’Rourke in Texas, Polis’ software managed the campaign’s outreach effort to 3 million voters across the state.
However, politically focused software and services businesses are risky. Earlier this year the Sean Parker-backed Brigade shut down and there are rumblings that other startups targeting political action may follow suit.
“Essentially, we got really excited about going into the corporate space because online has gotten so nasty,” says Tucker. “And, at the end of the day, digital advertising isn’t as effective as it once was.”
Customer acquisition costs in the digital ad space are rising. For companies like NRG Energy and Inspire Energy (both Polis clients), the cost of acquisitions online can be as much as $300 per person.
Polis helps identify which doors for salespeople to target and works with companies to identify the scripts that are most persuasive for consumers, according to Tucker. The company also monitors for sales success and helps manage the process so customers aren’t getting too many house calls from persistent sales people.
“We do everything through the conversation at the door,” says Tucker. “We do targeting and we do script curation (everything from what script do you use and when do you branch out of scripts) and we have an open API so they can push that out and they run with it through the rest of their marketing.”
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In today’s noisy, fast-paced world, finding a way to let clients and potential customers know that they are top of mind can be a major challenge for companies.
Enter Sendoso, a 2.5-year-old, San Francisco-based online-to-offline startup that promises to source, store and ship anything a business ever needs to send — and track its return on investment, to boot.
How does it work? According to CEO and co-founder Kris Rudeegraap, Sendoso, founded in 2016, already has 110 full-time employees, hundreds of vendor relationships and six warehouses, including its biggest, an 80,000-square-foot space in Las Vegas.
It also has relationships with dozens of workers on whom it can call to help it as it needs them and, as crucially, it integrates with Salesforce, Marketo and Engagio, among other platforms where companies largely live.
Collectively, these various pieces enable an employee to log into Sendoso and — according to a budget that has been preset — click on a contact, type out a customer message and choose a gift if desired, and that directive will show up as a campaign on the company’s end and as an order over at Sendoso, which then gets to work.
Want to send cupcakes to a client in New York? Done. A handwritten note to a prospect in Washington? No problem. See something on Amazon? Sendoso will have it sent to one of its warehouses, then repackage it so that it looks like you did it yourself. Then out the door it goes with a major carrier like FedEx or UPS.
Sendoso — which charges a monthly subscription fee for its services based on a company’s number of users and its sending volume — caters to both tech startups as well as Fortune 1,000 companies, with a client list that includes the marketing data company LiveRamp, the construction management software company ProCore and the call center platform TalkDesk, where Rudeegraap was most recently a senior account executive — and where he says the idea for Sendoso was born.
“Having worked in sales for 10 years, it was clear that customer success was shifting away from this dependence on email because of the digital noise being created.” He sensed that a channel with offline gifts like wine and handcrafted notes (penned by Sendoso warehouse workers) might be the solution.
The idea of business-to-business gifting is far from new, of course, and even though Sendoso is customizing the experience, it also isn’t alone, with other upstarts like Knack in Seattle and Alyce in Boston among many others focused on power gifting.
Still, investors like Sendoso’s packaging, so to speak. Indeed, Rudeegraap tells us the company just closed on $10.7 million in Series A funding to bolster its ranks and accelerate its reach beyond the 15 countries where the service is already available. The round was led by David Sack’s Craft Ventures, with participation from Signia Partners, Storm Ventures, Struck Capital and Hack VC.
Sendoso has now raised $13.2 million to date.
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Sapling, a three-year-old, San Francisco-based company whose employee management and onboarding software is being adopted by a small but growing number of mid-size companies with far-flung workforces, is announcing today that it has raised $4 million in funding from Gradient Ventures, which is Google’s AI fund, and Tuesday Capital, formerly known as CrunchFund.
It quietly secured the funding several months ago and has been using it to ramp up to the 50 people it currently employs.
The company’s founding team is the kind that investors like to see, meaning that in many ways, their previous work experiences led them to start Sapling .
Co-founder and CEO Bart Macdonald has spent his entire career in HR, working most recently in Melbourne, Australia, as a regional director for the global coding school General Assembly, where he hired and managed a 10-person marketing, sales and operations team.
Meanwhile, co-founder Andy Crebar (born in the same Sydney hospital as Macdonald, a day later) also knows the plight of individuals trying to seamlessly onboard new hires, having worked most recently on business development initiatives at a fintech startup called Credible Labs, where adding headcount was, as at many companies, a point of frustration.
“I liked that Bart and Andy had lived through their own experiences dealing with crappy HR software in previous positions and thus really understood how customers view the problem,” says Tuesday Capital co-founder Pat Gallagher. “The fact that neither are technical would have been an issue if we were investing pre product, but by the time we invested, they had proven they could build software that their customers loved.”
In fact, says Gallagher, his team was drawn to Sapling specifically because a handful of the firm’s portfolio companies has been using its onboarding software and “really raving about it. It’s hard to find HR software that people really like, so that was a big positive for us and helped cut through the noise of the space that they operate in.”
So what’s so special about Sapling? Mostly, it seems, its approach brings together the tools and software that HR execs are already using, including ADP for payroll, or G Suite for productivity, and Lever for recruiting, integrations that also employ a heavy dose of AI to anticipate the behaviors of employees, making it easier for managers to recruit, aid, manage and support current and future staffers.
As Macdonald explains it on the simplest level, Sapling not only provisions software for them but it connects their tools “so they don’t have to open 10 tabs. All they have to do is run their workflow inside of Sapling so that, for example, an employee can ask for time off in Slack,” and that request will automatically be reflected in the employer’s payroll and benefits systems (once approved).
Sapling currently works with companies with anywhere from 100 to 1,500 employees, including InVision, an eight-year-old commercial platform used by design teams to create digital products for mobile and desktop that is currently investing its Series F round. InVision, which has a large distributed workforce, says Sapling has saved the company 1,000 hours by speeding up communications and making employee engagement far more seamless.
What comes next for Sapling remains to be seen. It’s in an awfully crowded category, with no shortage of all-in-one HR solutions attracting venture capital. In the meantime, with low unemployment creating headaches for many outfits looking to keep its talent, Sapling is smartly positioning itself as an important tool in specifically helping companies with geographically distributed teams to retain and engage employees. Customers like InVision, along with Digital Ocean, KPMG and Kayak, say it’s working, too.
Above, left to right: founders Bart Macdonald and Andy Crebar, courtesy of Sapling.
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Botify, a search engine optimization company that works with customers like Expedia and Nike, announced today that it has raised $20 million in Series B funding.
Co-founder and CEO Adrien Menard said that the opportunity in SEO is “even bigger now than in the past,” and that the problem is a much broader problem than many realize.
“Most people think about SEO in terms of keyword optimization, but more than 50 percent of the pages in large websites are not being indexed,” he said. So Botify can identify which pages aren’t being crawled by Google and make recommendations on how to better organize content.
Over time, Botify has also launched a keyword product, as well as tools like a JavaScript crawler and mobile versus desktop analysis. Menard said the company now offers a platform designed for “optimization of every stage of the search process.”
The new funding was led by France’s Idinvest Partners, with participation from Ventech. Botify has now raised a total of $27 million.
The company was founded in France, launching in the United States after taking the stage at TechCrunch’s Disrupt NY conference in 2016. Next, it’s opening what it calls a “second U.S. headquarters” in Seattle (the first is in New York City), which Menard said will mostly provide sales and support for West Coast customers.
In addition to announcing the funding and the new office, Botify has also grown its leadership team, with the hiring of Christophe Frenet as senior vice president of product and Rachel Meranus as chief marketing officer, as well as the addition of Neolane co-founder Stephane Dehoche and former BuzzFeed president Greg Coleman to its board of directors.
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Google’s Gradient Ventures, the search giant’s dedicated AI fund, is casting its eye to Asia after it led a $7 million Series A round for Elsa, a startup that operates an app for English language learners.
The deal is Gradient’s first in Asia, and it includes participation from existing investors Monk’s Hill Ventures and SOSV. Elsa has now raised $12 million to date.
Elsa was founded in 2015 as a way to help non-English speakers improve their accent and general speaking ability. Vu Van, CEO and one half of the founding team, is a Vietnamese national who, despite being fluent in English, struggled to be understood after moving to the U.S. to study and then work. Together with speech recognition researcher Dr. Xavier Anguera — the startup’s CTO who leads its Portugal-based tech team — Van started Elsa to help people in the same predicament.
“I was very good at grammar, reading and writing but I realized people had a hard time understanding me because I had a very strong accent and my pronunciation wasn’t proper,” Van, who is based in San Francisco but travels extensively, told TechCrunch in an interview. “This impacts confidence when you apply for jobs or are even just meeting friends.”
“There are so many English learning solutions but they are mostly focused on expanding vocabulary or grammar, very few deal with pronunciation,” she added.
Elsa uses voice recognition and AI to grade a user’s speaking versus standard American English (and I thought us Brits were the global standard…) giving them a score at the end. That helps track their progress, while it focuses on pronunciation with a detailed review on how a user is speaking.
The service uses a freemium model that grants users full access to 1,000 courses for around $3-6 per month depending on the length of the package they select. That ranges from one month of access to 12 months. New content is added every week, Van said.
With this money in the bag, Elsa is going after growth in a number of its most promising markets.
The service has users in more than 100 countries, but Vietnam is its top market, with two million paying users. Partly because it is Van’s home market, Elsa has doubled down on Vietnam with a local sales team and localized payments, including the likes of bank transfers and local wallets.
That’s the blueprint for expansion in its next three target countries: Japan, Indonesia and India. Elsa has opened an office in Tokyo and is planning to introduce more localized content for Japanese users. Similar efforts will happen in Indonesia and India, where Van said the app sees strong engagement and downloads without any paid marketing efforts.
Elsa is also working on expanding its content from English to include other languages. Spanish is currently on the horizon and the company is already preparing the back-end technology to make it possible.
“We have to build the voice recognition technology to recognize those languages accurately. We have the infrastructure but now just need to collect voice data to train the model,” explained Van.
Vu Van started Elsa in 2015 with Dr. Xavier Anguera to help non-English speakers improve their accent and general speaking ability.
Beyond geographic expansion, Elsa is also going after schools and classrooms. Already, in Vietnam, it is working with a handful of schools that have added the app to their classroom work. The company allows schools to upload their specific content or curriculum to Elsa to make it part of a student’s homework or assessment. Teachers can see if a student has completed oral homework, and the app grades their efforts.
“We want to help these teachers help their students,” Van said. “Even with the best intentions, they simply can’t teach speaking.”
The model for the education push sees schools pay a licensing fee per student, which Van said is subsidized, while uploading their content is free.
Snagging investment from Gradient is a notable achievement for Elsa, but it will also allow the startup to tap into the company’s talent, too. That’s because Gradient operates a rotational program that allows Google employees to spend three to six months working at portfolio startups on secondment. That process hasn’t kicked off for Elsa just yet, but Van is hopeful of securing an engineer who might otherwise be prohibitively expensive for her company.
Gradient Ventures was founded in 2017 and this deal is the fund’s 18th, according to Crunchbase. Its previous investments include Canvass Analytics and Test.ai.
The Elsa team
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A new wave of female-led businesses wants to help women get off.
Dipsea, an app-based platform for short-form erotic audio stories, is the latest to grab funding from venture capital investors. The female-founded, San Francisco-headquartered startup, which officially launched in December, has raised $5.5 million in a round led by Bedrock Capital and Thrive Capital. The funding comes amid a notable explosion in interest and investment in audio content consumption and creation, as well as an uptick in AirPod sales, easily removable wireless earbuds that encourage listeners to enjoy snackable audio like Dipsea’s erotica.
In addition to Dipsea’s seed financing, podcasting platform WaitWhat secured a $4.3 million round this month. Days earlier, Himalaya nabbed $100 million to scale its podcast distribution tool and a pair of podcast startups, Gimlet and Anchor, sold to Spotify in a nine-figure deal.
Meanwhile, as the audio content space booms, more attention is being paid to female entrepreneurs eyeing venture capital. Enter Dipsea, whose founders say the business captures the zeitgeist of female empowerment.
Dipsea’s subscription-based app, available for $8.99 per month or $48 per year, offers short audio stories meant to turn women on. The app’s library, which is poised to expand with the new cash, includes narrative sexy stories and non-narrative guided audio pieces. The stories are designed to be listened to at any time, with the company’s examples including solo in bed, while getting ready for a date or to help turn off boss brain on the way home from work. The subscription business model made me wince at first, but auditory erotica doesn’t exactly lend itself to an advertising business model, after all, and once I listened to a few of Dipsea’s short stories, I understood that the service is something many women would pay for.
Since the onset of internet porn, there’s been a gaping hole in content crafted specifically for women. Most women use “mental framing” to get turned on, meaning they imagine scenarios, often with detailed story-lines and characters to stimulate themselves, per a study by OMGYes and The Kinsey Institute. Dipsea’s sensorial audio storytelling sets the mood and sparks the listener’s imagination.
“Audio is amazing because it’s imaginative; it requires you to paint a picture in your brain that’s very stimulating and it’s super intimate and very personal,” Dipsea co-founder and chief executive officer Gina Gutierrez told TechCrunch.
The brand and design strategist started Dipsea alongside chief technical officer Faye Keegan, a former product manager at Neighborly. Gutierrez said she came up with the idea while meditating with Headspace, a wellness app.
The founders have prioritized diversity of perspective, working with freelance writers of different backgrounds on various episodes, as well as consensuality, ensuring a form of verbal consent is worked into storylines. They recently hired their first staff writer.
“To me the future of entertainment is sensory,” Gutierrez said. “This felt like it could be a medium for women that hadn’t been harnessed or attempted before.”
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There has been a wave of fintech startups emerging that make different kinds of investing more accessible to a wider pool of people, and today one of them has raised a substantial round of money to help fill out its mission.
YieldStreet — which provides a platform for making alternative investments in areas like real estate, marine/shipping, legal finance, commercial loans and other opportunities that in the past were only open to institutional investors — is today announcing that it has raised $62 million in a Series B round of funding.
Co-founder and CEO Milind Mehere said in an interview that the money will be used to build a fundamental expansion of the platform so that any interested party can invest.
With a view to improving everyone’s financial lot in life, the name of the game is capitalism, and more specifically democratising the opportunity to invest, making it possible for more people beyond the often-cloistered and clubby environment of the investment world.
“In order for consumers to move to financial security and financial independence, they should be given access to the same products institutions have,” said Mehere. “This is about creating the most wealth out of people’s money, irrespective of their net worth.”
The round was led by Edison Partners, with participation from Greenspring Associates, Raine Ventures and a large multi-billion-dollar NY family office. YieldStreet’s valuation is not being disclosed with this round. Prior to this, the company raised around $116 million, with $100 million of that in debt, according to PitchBook.
To date, YieldStreet has seen more than $600 million invested on its platform from more than 100,000 members, with an expected 12 percent IRR and more than $300 million in principal and interest payments made to its investors. Up to now a person had to be an accredited investor to benefit from this. That was already a progression on those investments being restricted only to institutions, but it is still a relatively small pool of users. In the U.S., where YieldStreet operates, being an accredited investor has a specific set of criteria that includes individuals having a net worth of at least $1 million and income of $200,000 or more.
The plan is now to use the funding to expand the funnel by creating new vehicles for investing that will not require people to be accredited to get involved. This will build on groundwork the company has already laid with YieldStreet Wallet, a savings account that provides 2.2 percent interest, which is open to everyone.
The idea will be to offer non-accredited investors investment vehicles, created by YieldStreet, where they will be able to access multiple products, Mehere said. “We are working through the legal and regulatory aspects now.” He added that the company is also looking at ways of tapping into retirement and IRA accounts for these users as well.
The Jobs Act in the U.S., and the wider growth of people shifting all of their financial services online, has created a landscape of startups that are liberalising how capital moves. Many of these are specifically freeing up the arcane and rarified world of investment. They include companies like Robinhood, which has built a platform for trading public stocks. In the area of private investment — that is, investing in businesses and opportunities that are not publicly traded — we have seen PeerStreet, which is offers a service similar to YieldStreet but focusing on real estate. In the U.K., you also have startups like LendInvest, which lets property buyers bypass traditional mortgages by letting others put up the funding for those purchases.
“The ability for individual, accredited and non-accredited, investors to access products that previously were only available to institutional investors is a key part of fintech’s promise to leverage technology to create access and reduce fees on these types of investments. In addition, lower fees can be passed on to investors to allow them to achieve a higher return,” said Chris Sugden, managing partner, Edison Partners, in an email. (Sugden will also be joining the startup’s board with this investment.)
What’s interesting is that the sheer number of fintech startups, even if you only focus in on those centered around investing, will inevitably lead to some M&A down the line, and that is an area that YieldStreet will also be exploring ahead.
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Last month I wrote about Ubiquitilink, which promised, through undisclosed means, it was on the verge of providing a sort of global satellite-based roaming service. But how, I asked? (Wait, they told me.) Turns out our phones are capable of a lot more than we think: they can reach satellites acting as cell towers in orbit just fine, and the company just proved it.
Utilizing a constellation of satellites in low Earth orbit, Ubiquitilink claimed during a briefing at Mobile World Congress in Barcelona that pretty much any phone from the last decade should be able to text and do other low-bandwidth tasks from anywhere, even in the middle of the ocean or deep in the Himalayas. Literally (though eventually) anywhere and any time.
Surely not, I hear you saying. My phone, that can barely get a signal on some blocks of my neighborhood, or in that one corner of the living room, can’t possibly send and receive data from space… can it?
“That’s the great thing — everybody’s instinct indicates that’s the case,” said Ubiquitilink founder Charles Miller. “But if you look at the fundamentals of the RF [radio frequency] link, it’s easier than you think.”
The issue, he explained, isn’t really that the phone lacks power. The limits of reception and wireless networks are defined much more by architecture and geology than plain physics. When an RF transmitter, even a small one, has a clear shot straight up, it can travel very far indeed.
It’s not quite as easy as that, however; there are changes that need to be made, just not anything complex or expensive like special satellite antennas or base stations. If you know that modifying the phone is a non-starter, you have to work with the hardware you’ve got. But everything else can be shaped accordingly, Miller said — three things in particular.
Having adjusted for these things, an ordinary phone can contact and trade information with a satellite with its standard wireless chip and power budget. But there’s one more obstacle, one Ubiquitilink spent a great deal of time figuring out.
Although a phone and satellite can reach one another reliably, a delay and Doppler shift in the signal due to the speeds and distances involved are inescapable. Turns out the software that runs towers and wireless chips isn’t suited for this; the timings built into the code assume the distance will be less than 30 km, since the curvature of the Earth generally prevents transmitting farther than that.
So Ubiquitilink modified the standard wireless stacks to account for this, something Miller said no one else had done.
“After my guys came back and told me they’d done this, I said, ‘well let’s go validate it,’ ” he told me. “We went to NASA and JPL and asked what they thought. Everybody’s gut reaction was ‘well, this won’t work,’ but then afterwards they just said ‘well, it works.’ ”
The theory became a reality earlier this year after Ubiquitilink launched their prototype satellites. They successfully made a two-way 2G connection between an ordinary ground device and the satellite, proving that the signal not only gets there and back, but that its Doppler and delay distortions can be rectified on the fly.
“Our first tests demonstrated that we offset the Doppler shift and time delay. Everything else is leveraging commercial software,” Miller said, though he quickly added: “To be clear, there’s plenty more work to be done, but it isn’t anything that’s new technology. It’s good solid hardcore engineering, building nanosats and that sort of thing.”
Since his previous company was Nanoracks and he’s been in the business for decades, he’s qualified to be confident on this part. It’ll be a lot of work and a lot of money, but they should be launching their first real satellites this summer. (And it’s all patented, he noted.)
The way the business will work is remarkably simple given the complexity of the product. Because the satellites operate on modified but mostly ordinary off-the-shelf software and connect to phones with no modifications necessary, Ubiquitilink will essentially work as a worldwide roaming operator that mobile networks will pay to access. (Disclosure: Verizon, obviously a mobile network, owns TechCrunch, and for all I know will use this tech eventually. It’s not involved with any editorial decisions.)
Normally, if you’re a subscriber of network X, and you’re visiting a country where X has no coverage, X will have an agreement with network Y, which connects you for a fee. There are hundreds of these deals in play at any given time, and Ubiquitilink would just be one more — except its coverage will eventually be global. Maybe you can’t reach X or Y; you’ll always be able to reach U.
The speeds and services available will depend on what mobile networks want. Not everyone wants or needs the same thing, of course, and a 3G fallback might be practical where an LTE connection is less so. But the common denominator will be data enough to send and receive text at the least.
It’s worth noting also that this connection will be in some crucial ways indistinguishable from other connections: it won’t affect encryption, for instance.
This will of course necessitate at least a thousand satellites, by Miller’s count. But in the meantime, limited service will also be available in the form of timed passes — you’ll have no signal for 55 minutes, then signal for five, during which you can send and receive what may be a critical text or location. This is envisioned as a specialty service at first, then as more satellites join the constellation, that window expands until it’s 24/7 and across the whole face of the planet, and it becomes a normal consumer good.
While your network provider will probably charge you the usual arm and leg for global roaming on demand (it’s their prerogative), there are some services Ubiquitilink will provide for free; the value of a global communication system is not lost on Miller.
“Nobody should ever die because the phone in their pocket doesn’t have signal,” he said. “If you break down in the middle of Death Valley you should be able to text 911. Our vision is this is a universal service for emergency responders and global E-911 texting. We’re not going to charge for that.”
An emergency broadcast system when networks are down is also being planned — power outages following disasters are times when people are likely to panic or be struck by a follow-up disaster like a tsunami or flooding, and reliable communications at those times could save thousands and vastly improve recovery efforts.
“We don’t want to make money off saving people’s lives, that’s just a benefit of implementing this system, and the way it should be,” Miller said.
It’s a whole lot of promises, but the team and the tech seem capable of backing them up. Initial testing is complete and birds are in the air — now it’s a matter of launching the next thousand or so.
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