Startups
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Earlier this year, Rebecca Liebman impressed a panel of high-profile investors, including Ashton Kutcher and Salesforce chief executive Marc Benioff, at a SXSW pitch competition. She won and Benioff wrote her a check for $200,000 on the spot.
Today, she’s announcing that her educational fintech startup LearnLux has closed a $2 million seed round from Kutcher’s investment firm Sound Ventures, Benioff, Underscore VC and former Wealthfront CEO Adam Nash. LearnLux operates under a SaaS model, partnering with businesses to offer access to its digital financial wellness product, which helps employees make important financial decisions.
The Boston-based startup was founded by Liebman, 25, and her brother, Michael Liebman, 22, in 2015.
“He was coding from his dorm room when we were first building the product,” Rebecca said. “We’ve had a really interesting experience from a young age. I was working at a lab at MIT with brilliant Ph.D. students and no one could figure out how to open a retirement account. Michael was working at a bank with people who studied finance who still couldn’t figure out how to open a retirement account.”LearnLux provides interactive learning tools and educational content created in-house to guide workers through their 401k, health savings accounts or stock options, for example. Rebecca says they’ve signed on 10 customers since launching in September.
“There are all these financial decisions you have to make and we allow you to have an interactive experience online where you can play out what those decisions will look like,” she said.
“Finance has been made to confuse people. We had to figure out how to break it down and explain it in a way that makes sense … Whatever kind of learner you are, you will understand more about your financial decisions with [LearnLux.]”
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After eight years of bootstrapping, Deputy sought scale. So the workforce management platform turned to venture capital, quickly raising a $25 million Series A in early 2017. Today, Deputy is announcing a major accomplishment: the close of an $81 million round — the largest Series B in Australian history.
IVP led the investment for the Sydney and Atlanta-headquartered company, with support from OpenView Venture Partners, Square Peg Capital and Equity Venture Partners. Deputy plans to invest the funds in engineering and product, building out those teams in both HQs.
Co-founder and chief executive officer Ashik Ahmed declined to disclose the valuation.
Deputy’s employee management tool makes scheduling, time sheets, tasks and workplace communication easier for hourly and shift workers. Ahmed tells TechCrunch the 10-year-old company has 90,000 customers in 80 countries, including Amazon, Google, McDonald’s, Compass and Uber. It’s scheduled some 200 million shifts, or 1.2 billion hours of work, and facilitated more than $30 billion in payroll payments.
“Right now, the company grows every month as much as we did in [the first] six years,” Ahmed said. “Our growth … has really skyrocketed.”
Ahmed credits that growth to support from VCs.
“It’s not about the money but more about the expertise that we have been able to bring in,” he said. “OpenView, for example, has been really, really instrumental for the next stage of our journey.”
Deputy co-founder and CEO Ashik Ahmed
Around the globe, most workers earn money on an hourly basis. In the U.S., according to the Bureau of Labor Statistics’ data from 2015, roughly 80 million workers were hourly, or about 60 percent of all wage and salary workers in the country.
“The world of work is changing,” he said. “We are becoming more about instant gratification, we want what we want when we want it, and work is no different.”
“If businesses of today do not recognize the change that is happening, if they don’t adapt to it, they will become irrelevant tomorrow. Our goal is to help our customers adapt to this change by offering more flexibility in how they engage their workers. Our vision is to help these businesses thrive in the future world.”
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Second Home, the “creative workspace” company co-founded by Rohan Silva, a former tech and startup policy advisor for then British Prime Minister David Cameron, is closing in on a new funding round, TechCrunch has learned.
According to sources, the London startup, which is also co-founded by Sam Aldenton, has secured £20 million in investment from Boston-based investor Gerald Chan, who owns Hang Lung Group with his brother Ronnie Chan. Both were the first investors in Xiaomi, and Gerald Chan recently gave the biggest-ever philanthropic gift to Harvard University, totaling a hefty $350 million.
I understand that the injection of capital will be used to expand to L.A. in the U.S., and possibly another five locations, as Second Home continues to scale up its operations and the number of physical locations it has under management. The funding could be announced as soon as next week.
Second Home’s existing investors include: Yuri Milner, Index Ventures, Atomico, Talis Capital, Tencent founder Martin Lau and former Goldman Sachs chief economist Jim O’Neill.
The company’s original East London site opened in November 2014. It then opened Second Home Lisbon in 2016, and added another London space in Holland Park this year. A third London Second Home in Clerkenwell Green will open its doors next month.
I’m told that all three are fully occupied, and Silva has previously said that 97 percent of new customers come via referrals and other “organic channels.”
Meanwhile, the companies, charities and teams based at Second Home across various sites include energy upstart Bulb (which employs 280 people located at Spitalfields), Threads Styling, Help Refugees, Kickstarter, TaskRabbit, Vice Media, Spotify, Volkswagen, Taylor Wessing, Ermenegildo Zegna and others.
Silva couldn’t be reached for comment at the time of publication. I’ll update this article if and when I hear back.
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Thirty European tech CEOs of big startups signed a letter about stock options in Europe. Other tech CEOs can join the group and sign the letter before it is sent to policymakers on January 7.
As you can read in the letter below, these CEOs think Silicon Valley isn’t the only region suffering from talent crunch. It could be a “serious bottleneck to growth.”
“Over the next twelve months, Europe’s startups will need to hire more than 100,000 employees,” the letter says. “Without delay, we call on legislators to fix the patchy, inconsistent and often punitive rules that govern employee ownership—the practice of giving staff options to acquire a slice of the company they’re working for.”
Here’s the current list of signatories: Johannes Reck (GetYourGuide), Alice Zagury (The Family), Christian Reber (Pitch), Johannes Schildt (KRY / LIVI), Peter Mühlmann (Trustpilot), Ilkka Paanenen (Supercell), Taavet Hinrikus (TransferWise), Lucas Carne (Privalia), Jean-Charles Samuelian (Alan), Alex Saint (Secret Escapes), Dr. Tamaz Georgadze (Raisin), Patrick Collison (Stripe), Nikolay Storonsky (Revolut), Samir Desai (Funding Circle), Markus Villig (Taxify), Jean-Baptise Rudelle (Criteo), Nicolas Brusson (BlaBlaCar), Jacob de Geer (iZettle), David Okuniev (Typeform), José Neves (Farfetch), Felix Van de Maele (Collibra), Joris Van Der Gucht (Silverfin), Daniel Dines (UiPath), Rohan Silva (Second Home), Niklas Östberg (Delivery Hero), Dominik Richter (Hello Fresh), Dr. Raoul Scherwitzl (NaturalCycles), Alex Depledge (RESI), Juan de Antonio (Cabify).
Here’s the letter:
OPEN LETTER TO EUROPE’S POLICYMAKERS
Not Optional: Europe must attract more talent to startups
This following letter will be sent to Europe’s policymakers on 7 January 2019.
Policymakers, entrepreneurs and investors must work together to bring more talent to Europe’s startups. Here’s why.
The European tech sector has never been stronger. From London to Lisbon, Paris to Prague, Europe is now nurturing some of the world’s most dynamic and creative companies. And not all are fledgling young startups: many are already substantial, high-growth enterprises set to succeed in the global market.
The days of living in Silicon Valley’s shadow are over. We no longer lack ambition and capital. Now, Europe is a shining powerhouse of bold, new business models that drive economic growth, generate jobs and improve people’s lives.
We’d all like to see this fair weather continue, but storm clouds are gathering on the horizon.
Europe could be the world’s most entrepreneurial continent but the limited availability of talent to nurture and fuel its blossoming start-up ecosystem is a serious bottleneck to growth. That’s why we, the founders and executives of Europe’s leading tech businesses, now urge policymakers to put talent at the top of their agenda.
Over the next twelve months, Europe’s startups will need to hire more than 100,000 employees. Add to that the number of employees that start-ups yet to be born will need to get their ideas off the ground. Reaching that goal will be hard, but hard things are what we do and we’re ready to rise to the challenge.
Without delay, we call on legislators to fix the patchy, inconsistent and often punitive rules that govern employee ownership—the practice of giving staff options to acquire a slice of the company they’re working for.
This isn’t just a perk on top of a salary: universally, stock options reward employees for taking the risk of joining a young, unproven business, and give them a real stake in their company’s future success. Stock options are one of the main levers that startups use to recruit the talent they need; these companies simply can’t afford to pay the higher wages of more established businesses.
But policies that currently govern employee ownership across Europe are often archaic and highly ineffective. Some are so punishing that they put our startups at a major disadvantage to their peers in Silicon Valley and elsewhere, with whom we’re competing for the best designers, developers, product managers, and more.
If we fail to take action, we could see a brain drain of Europe’s best and brightest, leading to fewer jobs created and slower growth. That’s why we need to create startup-friendly employee share ownership schemes, to help Europe’s tech sector—its greatest engine of growth, innovation and employment—to succeed and thrive in the global labour market.
If we don’t eliminate the talent bottleneck, we risk squandering the incredible momentum that European tech has built up in recent years. The next Google, Amazon or Netflix could well come from Europe, but for that to happen, reforming the rules of employee ownership is definitely not optional.
According to Index Ventures, the company that is coordinating this effort, some countries already have startup-friendly policies, while others lag behind:
The VC firm recommends overhauling policies in some countries and harmonizing policies across Europe. New rules should follow those six principles:
- Create a stock option scheme that is open to as many startups and employees as possible, offering favourable treatment in terms of regulation and taxation. Design a scheme based on existing models in the UK, Estonia or France to avoid further fragmentation and complexity.
- Allow startups to issue stock options with non-voting rights, to avoid the burden of having to consult large numbers of minority shareholders.
- Defer employee taxation to the point of sale of shares, when employees receive cash benefit for the first time.
- Allow startups to issue stock options based on an accepted ‘fair market valuation’, which removes tax uncertainty.
- Apply capital gains (or better) tax rates to employee share sales.
- Reduce or remove corporate taxes associated with the use of stock options.
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A new app called Playlist aims to make music a more social experience than what’s offered today by the major music platforms like Apple Music, Pandora or Spotify, for example. In Playlist, you can find others who share your musical tastes and join group chats where you listen to playlists together in real time. You can collaborate on playlists, too.
The app, backed by investment from Stanford’s StartX fund, was founded by Karen Katz and Steve Petersen, both Stanford engineers and serial entrepreneurs. Katz previously co-founded AdSpace Networks and another social music platform, Jam Music. She also was a founding executive team member at Photobucket, and founded a company called Project Playlist, which was like a Google search for music back in the Myspace era.
Peterson, meanwhile, has 35 patents and more than a decade of experience in digital music. In the early 2000s he created the software architecture and ran the team at PortalPlayer Inc., which powered the iPod’s music player and was later sold to Nvidia for $357 million. Afterwards, he was CTO at Concert Technology, a technology incubator and intellectual property company with a focus on mobile, social and digital music services.
“The world has gone social, but music has been largely left behind. That’s a real gap,” explains Katz, as to why the founders wanted to build Playlist in the first place.
“Ever since we started listening to music from our mobile phones, it’s become an isolated experience. And music is the number one thing we do on our phones,” she says.
The idea they came up with was to unite music and messaging by synchronizing streams, so people could listen to songs together at the same time and chat while they do so.
During last year’s beta testing period, Playlist (which was listed under a different name on the App Store), saw a huge number of engagements as a result of its real-time nature.
“Out of the gate, we saw 10 times the engagement of Pandora. People have, on average, 60 interactions per hour — like chats, likes, follows, joins, adds and creates,” Katz says.
Under the hood, the app uses a lot of technology beyond just its synchronized streaming. It also leverages machine learning for its social recommendations, as well as collaborative playlists, large-scale group chat, and behavior-based music programming, and has “Music Match” algorithms to help you find people who listen to the same sort of things you do.
The social aspects of the app involves a following/follower model, and presents playlists from the people you follow in your home feed, much like a music-focused version of Instagram. A separate Discover section lets you find more people to follow or join in other popular listening and chat sessions.
At launch, the app has a catalog of more than 45 million songs and has a music license for the U.S. It plans to monetize through advertising.
The core idea here — real-time music listening and chat — is interesting. It’s like a Turntable.fm for the Instagram age. But the app sometimes overcomplicates things, it seems. For example, importing a playlist from another music app involves switching over to that app, finding the playlist and copying its sharing URL, then switching back to Playlist to paste it in a pop-up box. It then offers a way for you to add your own custom photo to the playlist, which feels a little unnecessary as the default is album art.
Another odd choice is that it’s difficult to figure out how to leave a group chat once you’ve joined. You can mute the playlist that’s streaming or you can minimize the player, but the option to “leave” is tucked away under another menu, making it harder to find.
The player interface also offers a heart, a plus (+), a share button, a mute button and a skip button all on the bottom row. It’s… well… it’s a lot.
But Katz says that the design choices they’ve made here are based on extensive user testing and feedback. Plus, the app’s younger users — often high schoolers, and not much older than 21 — are the ones demanding all the buttons and options.
It’s hard to argue with the results. The beta app acquired more than 500,000 users during last year’s test period, and those users are being switched over to the now publicly available Playlist app, which has some 80K installs as of last week, according to Sensor Tower data.
The company also plans to leverage the assets it acquired from the old Project Playlist, which includes some 30 million emails, 21 million Facebook IDs and 14 million Twitter IDs. A “Throwback Thursday” marketing campaign will reach out to those users to offer them a way to listen to their old playlists.
The startup has raised $5 million in funding (convertible notes) from Stanford StartX Fund, Garage Technology Ventures, Miramar Ventures, IT-Farm, Dixon Doll (DCM founder), Stanford Farmers & Angels, Zapis Capital and Amino Capital.
The Palo Alto-based company is a team of six full-time.
Playlist is a free download for iOS. An Android version is in the works.
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The mainstream will never adopt blockchain-powered decentralized apps (dApps) if it’s a struggle to log in. They’re either forced to manage complex security keys themselves, or rely on a clunky wallet-equipped browser like MetaMask. What users need is for signing in to blockchain apps to be as easy as Login with Facebook. So that’s what Bitski built. The startup emerges from stealth today with an exclusive on TechCrunch about the release of the developer beta of its single sign-on cryptocurrency wallet platform.
Ten projects, including 7 game developers, are lined up to pay a fee to integrate Bitski’s SDK. Then, whenever they need a user’s identity or to transact a payment, their app pops open a Bitski authorization screen, where users can grant permissions to access their ID, send money or receive items. Users sign up just once with Bitski, and then there’s no more punching in long private keys or other friction. Using blockchain apps becomes simple enough for novices. Given the recent price plunge, the mainstream has been spooked about speculating on cryptocurrencies. But Bitski could unlock the utility of dApps that blockchain developers have been promising but haven’t delivered.
“One of the great challenges for protocol teams and product companies in crypto today is the poor UX in dApps, specifically onboarding, transactions, and sign-in/password recovery,” says co-founder and CEO Donnie Dinch. “We interviewed a ton of dApp developers. The minute they used a wallet, there was a huge drop-off of folks. Bitski’s vision is to solve user onboarding and wallet usability for developers, so that they can in-turn focus on creating unique and useful dapps.”
The scrappy Bitski team raised $1.5 million in pre-seed capital from Steve Jang’s Kindred Ventures, Signia, Founders Fund, Village Global and Social Capital. They were betting on Dinch, a designer-as-CEO who’d built concert discovery app WillCall that he sold to Ticketfly, which was eventually bought by Pandora. After 18 months of rebranding Ticketfly and overhauling its consumer experience, Dinch left and eventually recruited engineer Julian Tescher to come with him to found Bitski.
Bitski co-founder and CEO Donnie Dinch
After Riff failed to hit scale, the team hung up its social ambitions in late 2017 and “started kicking around ideas for dApps. We mocked up a Venmo one, a remittance app…but found the hurdle to get someone to use one of these products is enormous,” Dinch recalls. “Onboarding was a dealbreaker for anyone building dApps. Even if we made the best crypto Venmo, to get normal people on it would be extremely difficult. It’s already hard enough to get people to install apps from the App Store.” They came up with Bitski to let any developer ski jump over that hurdle.
Looking across the crypto industry, the companies like Coinbase and Binance with their own hosted wallets that permitted smooth UX were the ones winning. Bitski would bring that same experience to any app. “Our hosted wallet SDK lets developers drop the Bitski wallet into their apps and onboard users with standards web 2.0 users have grown to know and love,” Dinch explains.
Imagine an iOS game wants to reward users with a digital sword or token. Users would have to set up a whole new wallet, struggle with their credentials or use another clumsy solution. They’d have to own Ethereum already to pay the Ethereum “gas” price to power the transaction, and the developer would have to manually approve sending the gift. With Bitski, users can approve receiving tokens from a developer from then on, and developers can pay the gas on users’ behalf while triggering transactions programmatically.
Magik is an AR content platform that’s one of Bitski’s first developers. Magik’s founders tell me, “We’re building towards reaching millions of mainstream consumers, and Bitski is the only wallet solution that understands what we need to reach users at that scale. They provide a dead-simple, secure and familiar interface that addresses every pain point along the user-onboarding journey.”
Bitski will offer a free tier, priced tiers based on transaction volume or a monthly fee and an enterprise version. In the future, the company is considering doubling-down on premium developer services to help them build more on top of the blockchain. “We will never, ever monetize user data. We’ve never had any intent at looking at it,” Dinch vows. The startup hopes developers will seize on the network effects of a cross-app wallet, as once someone sets up Bitski to use one product, all future sign-ins just require a few clicks.
In August, Coinbase acquired a startup called Distributed Systems that was building a similar crypto identity platform called the Clear Protocol. A “login with Coinbase” feature could be popular if launched, but the company’s focus is to spread a ton of blockchain projects. “If [login with Coinbase] launched tomorrow, they wouldn’t be able to support games or anything with a unique token. We’re a lockbox, they’re a bank,” Dinch claims.
The spectre of single sign-on’s biggest player, Facebook, looms, as well. In May it announced the formation of a blockchain team we suspect might be working on a crypto login platform or other ways to make the decentralized world more accessible for mom and pop. Dinch suspects that fears about how Facebook uses data would dissuade developers and users from adopting such a product. Still, Bitski’s haste in getting its developer platform into beta just a year after forming shows it’s eager to beat them to market.
Building a centralized wallet in a decentralized ecosystem comes with its own security risks. But Dinch assures me Bitski is using all its own hardware with air-gapped computers that have been stripped of their Wi-Fi cards, and it’s taking other secret precautions to prevent anyone from snatching its wallets. He believes cross-app wallets will also deliver a future where users actually own their virtual goods instead of just relying on the good will of developers not to pull them away or shut them down.” The idea of we’ve never been able to provably own unique digital assets is crazy to me,” Dinch notes. “Whether it’s a skin in Fortnite or a movie on iTunes that you purchase, you don’t have liquidity to resell those things. We think we’ll look back in 5 to 10 years and think it’s nuts that no one owned their digital items.”
While the crypto prices might be cratering and dApps like Cryptokitties have cooled off, Dinch is convinced the blockchain startups won’t fade away. “There is a thriving developer ecosystem hellbent on bringing the decentralized web to reality; regardless of token price. It’s a safe assumption that prices will dip a bit more, but will eventually rise whenever we see real use cases for a lot of these tokens. Most will die. The ones that succeed will be outcome-oriented, building useful products that people want.” Bitski’s a big step in that direction.
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Red Hat is in the process of being acquired by IBM for a massive $34 billion, but that deal hasn’t closed yet and, in the meantime, Red Hat is still running independently and making its own acquisitions, too. As the company today announced, it has acquired Tel Aviv-based NooBaa, an early-stage startup that helps enterprises manage their data more easily and access their various data providers through a single API.
NooBaa’s technology makes it a good fit for Red Hat, which has recently emphasized its ability to help enterprise more effectively manage their hybrid and multicloud deployments. At its core, NooBaa is all about bringing together various data silos, which should make it a good fit in Red Hat’s portfolio. With OpenShift and the OpenShift Container Platform, as well as its Ceph Storage service, Red Hat already offers a range of hybrid cloud tools, after all.
“NooBaa’s technologies will augment our portfolio and strengthen our ability to meet the needs of developers in today’s hybrid and multicloud world,” writes Ranga Rangachari, the VP and general manager for storage and hyperconverged infrastructure at Red Hat, in today’s announcement. “We are thrilled to welcome a technical team of nine to the Red Hat family as we work together to further solidify Red Hat as a leading provider of open hybrid cloud technologies.”
While virtually all of Red Hat’s technology is open source, NooBaa’s code is not. The company says that it plans to open source NooBaa’s technology in due time, though the exact timeline has yet to be determined.
NooBaa was founded in 2013. The company has raised some venture funding from the likes of Jerusalem Venture Partners and OurCrowd, with a strategic investment from Akamai Capital thrown in for good measure. The company never disclosed the size of that round, though, and neither Red Hat nor NooBaa are disclosing the financial terms of the acquisition.
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After focusing on Asian markets, particularly in Southeast Asia, Bangkok-based Eko Communications is getting ready to take on Slack, Microsoft Teams, and other enterprise messaging apps in Europe. The startup announced today that it has raised a Series B of $20 million and opened offices in London (which will serve as its new commercial headquarters), Amsterdam, and Berlin.
The funding, led by SMD Ventures, with participation from AirAsia’s digital investment arm Redbeat Ventures, Gobi Partners, East Ventures, and returning investors, brings Eko Communication’s total raised to $28.7 million. The company’s Series A was announced in 2015, followed by $2 million in strategic funding from Japanese conglomerate Itochu last year. Eko Communications (not to be confused with Eko, an interactive video startup) has already served clients like Thai mobile operator True, Radisson, and 7-Eleven.
Eko Communications’ Series B is earmarked for its ambitious global expansion plans in the first quarter of 2019. Korawad Chearavanont, the company’s CEO and co-founder, told TechCrunch in an email that it has already localized products for target markets including the UK, Ireland, Benelux, and the DACH region (Germany, Austria, and Switzerland).
Eko Communications wants to expand in the European Union and the United States because their economies are both significantly larger than Southeast Asia’s, said Chearavanont. This, plus the fact that both have larger enterprise IT markets thanks to higher spending on software by companies, means that “for Eko to achieve the necessary scale to become a global player in the mobile enterprise market, continued growth in these markets is critical,” he added.
The company claims that its revenues have more than tripled in the past year and that it now has more than 500,000 recurring paid users. Of course, any enterprise messaging startup has to contend with the specter of Slack and Microsoft Teams. Positioning Eko Communications as a rival to those services, however, isn’t totally accurate because they are aimed at different customers.
Slack and Microsoft Teams are “primarily utilized by ‘knowledge workers’ and these systems are priced for these types of users,” Chearavanont said. “Being a mobile-first company, we target companies that have a large presence of mobile-first staff traditionally in industries like retail and hospitality (the services sector in general).” Many employees in those sectors still rely on messaging apps like WhatsApp or email to communicate, so Eko Communications seeks to make it easy for companies to transition from their ad hoc communication methods to a more secure and efficient system with tools like APIs to help them integrate legacy systems.
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Wildfires are consuming our forests and grasslands faster than we can replace them. It’s a vicious cycle of destruction and inadequate restoration rooted, so to speak, in decades of neglect of the institutions and technologies needed to keep these environments healthy.
DroneSeed is a Seattle-based startup that aims to combat this growing problem with a modern toolkit that scales: drones, artificial intelligence and biological engineering. And it’s even more complicated than it sounds.
A bit of background first. The problem of disappearing forests is a complex one, but it boils down to a few major factors: climate change, outdated methods and shrinking budgets (and as you can imagine, all three are related).
Forest fires are a natural occurrence, of course. And they’re necessary, as you’ve likely read, to sort of clear the deck for new growth to take hold. But climate change, monoculture growth, population increases, lack of control burns and other factors have led to these events taking place not just more often, but more extensively and to more permanent effect.
On average, the U.S. is losing 7 million acres a year. That’s not easy to replace to begin with — and as budgets for the likes of national and state forest upkeep have shrunk continually over the last half century, there have been fewer and fewer resources with which to combat this trend.
The most effective and common reforestation technique for a recently burned woodland is human planters carrying sacks of seedlings and manually selecting and placing them across miles of landscapes. This back-breaking work is rarely done by anyone for more than a year or two, so labor is scarce and turnover is intense.
Even if the labor was available on tap, the trees might not be. Seedlings take time to grow in nurseries and a major wildfire might necessitate the purchase and planting of millions of new trees. It’s impossible for nurseries to anticipate this demand, and the risk associated with growing such numbers on speculation is more than many can afford. One missed guess could put the whole operation underwater.
Meanwhile, if nothing gets planted, invasive weeds move in with a vengeance, claiming huge areas that were once old growth forests. Lacking the labor and tree inventory to stem this possibility, forest keepers resort to a stopgap measure: use helicopters to drench the area in herbicides to kill weeds, then saturate it with fast-growing cheatgrass or the like. (The alternative to spraying is, again, the manual approach: machetes.)
At least then, in a year, instead of a weedy wasteland, you have a grassy monoculture — not a forest, but it’ll do until the forest gets here.
One final complication: helicopter spraying is a horrendously dangerous profession. These pilots are flying at sub-100-foot elevations, performing high-speed maneuvers so that their sprays reach the very edge of burn zones but they don’t crash head-on into the trees. This is an extremely dangerous occupation: 80 to 100 crashes occur every year in the U.S. alone.
In short, there are more and worse fires and we have fewer resources — and dated ones at that — with which to restore forests after them.
These are facts anyone in forest ecology and logging are familiar with, but perhaps not as well known among technologists. We do tend to stay in areas with cell coverage. But it turns out that a boost from the cloistered knowledge workers of the tech world — specifically those in the Emerald City — may be exactly what the industry and ecosystem require.
So what’s the solution to all this? Automation, right?
Automation, especially via robotics, is proverbially suited for jobs that are “dull, dirty, and dangerous.” Restoring a forest is dirty and dangerous to be sure. But dull isn’t quite right. It turns out that the process requires far more intelligence than anyone was willing, it seems, to apply to the problem — with the exception of those planters. That’s changing.
Earlier this year, DroneSeed was awarded the first multi-craft, over-55-pounds unmanned aerial vehicle license ever issued by the FAA. Its custom UAV platforms, equipped with multispectral camera arrays, high-end lidar, six-gallon tanks of herbicide and proprietary seed dispersal mechanisms have been hired by several major forest management companies, with government entities eyeing the service as well.
These drones scout a burned area, mapping it down to as high as centimeter accuracy, including objects and plant species, fumigate it efficiently and autonomously, identify where trees would grow best, then deploy painstakingly designed seed-nutrient packages to those locations. It’s cheaper than people, less wasteful and dangerous than helicopters and smart enough to scale to national forests currently at risk of permanent damage.
I met with the company’s team at their headquarters near Ballard, where complete and half-finished drones sat on top of their cases and the air was thick with capsaicin (we’ll get to that).
The idea for the company began when founder and CEO Grant Canary burned through a few sustainable startup ideas after his last company was acquired, and was told, in his despondency, that he might have to just go plant trees. Canary took his friend’s suggestion literally.
“I started looking into how it’s done today,” he told me. “It’s incredibly outdated. Even at the most sophisticated companies in the world, planters are superheroes that use bags and a shovel to plant trees. They’re being paid to move material over mountainous terrain and be a simple AI and determine where to plant trees where they will grow — microsites. We are now able to do both these functions with drones. This allows those same workers to address much larger areas faster without the caloric wear and tear.”
It may not surprise you to hear that investors are not especially hot on forest restoration (I joked that it was a “growth industry” but really because of the reasons above it’s in dire straits).
But investors are interested in automation, machine learning, drones and especially government contracts. So the pitch took that form. With the money DroneSeed secured, it has built its modestly sized but highly accomplished team and produced the prototype drones with which is has captured several significant contracts before even announcing that it exists.
“We definitely don’t fit the mold or metrics most startups are judged on. The nice thing about not fitting the mold is people double take and then get curious,” Canary said. “Once they see we can actually execute and have been with 3 of the 5 largest timber companies in the U.S. for years, they get excited and really start advocating hard for us.”
The company went through Techstars, and Social Capital helped them get on their feet, with Spero Ventures joining up after the company got some groundwork done.
If things go as DroneSeed hopes, these drones could be deployed all over the world by trained teams, allowing spraying and planting efforts in nurseries and natural forests to take place exponentially faster and more efficiently than they are today. It’s genuine change-the-world-from-your-garage stuff, which is why this article is so long.
The job at hand isn’t simple or even straightforward. Every landscape differs from every other, not just in the shape and size of the area to be treated but the ecology, native species, soil type and acidity, type of fire or logging that cleared it and so on. So the first and most important task is to gather information.
For this, DroneSeed has a special craft equipped with a sophisticated imaging stack. This first pass is done using waypoints set on satellite imagery.
The information collected at this point is really far more detailed than what’s actually needed. The lidar, for instance, collects spatial information at a resolution much beyond what’s needed to understand the shape of the terrain and major obstacles. It produces a 3D map of the vegetation as well as the terrain, allowing the system to identify stumps, roots, bushes, new trees, erosion and other important features.
This works hand in hand with the multispectral camera, which collects imagery not just in the visible bands — useful for identifying things — but also in those outside the human range, which allows for in-depth analysis of the soil and plant life.
The resulting map of the area is not just useful for drone navigation, but for the surgical strikes that are necessary to make this kind of drone-based operation worth doing in the first place. No doubt there are researchers who would love to have this data as well.
Now, spraying and planting are very different tasks. The first tends to be done indiscriminately using helicopters, and the second by laborers who burn out after a couple of years — as mentioned above, it’s incredibly difficult work. The challenge in the first case is to improve efficiency and efficacy, while in the second case is to automate something that requires considerable intelligence.
Spraying is in many ways simpler. Identifying invasive plants isn’t easy, exactly, but it can be done with imagery like that the drones are collecting. Having identified patches of a plant to be eliminated, the drones can calculate a path and expend only as much herbicide is necessary to kill them, instead of dumping hundreds of gallons indiscriminately on the entire area. It’s cheaper and more environmentally friendly. Naturally, the opposite approach could be used for distributing fertilizer or some other agent.
I’m making it sound easy again. This isn’t a plug and play situation — you can’t buy a DJI drone and hit the “weedkiller” option in its control software. A big part of this operation was the creation not only of the drones themselves, but the infrastructure with which to deploy them.
The drones themselves are unique, but not alarmingly so. They’re heavy-duty craft, capable of lifting well over the 57 pounds of payload they carry (the FAA limits them to 115 pounds).
“We buy and gut aircraft, then retrofit them,” Canary explained simply. Their head of hardware, would probably like to think there’s a bit more to it than that, but really the problem they’re solving isn’t “make a drone” but “make drones plant trees.” To that end, Canary explained, “the most unique engineering challenge was building a planting module for the drone that functions with the software.” We’ll get to that later.
DroneSeed deploys drones in swarms, which means as many as five drones in the air at once — which in turn means they need two trucks and trailers with their boxes, power supplies, ground stations and so on. The company’s VP of operations comes from a military background where managing multiple aircraft onsite was part of the job, and she’s brought her rigorous command of multi-aircraft environments to the company.
The drones take off and fly autonomously, but always under direct observation by the crew. If anything goes wrong, they’re there to take over, though of course there are plenty of autonomous behaviors for what to do in case of, say, a lost positioning signal or bird strike.
They fly in patterns calculated ahead of time to be the most efficient, spraying at problem areas when they’re over them, and returning to the ground stations to have power supplies swapped out before returning to the pattern. It’s key to get this process down pat, since efficiency is a major selling point. If a helicopter does it in a day, why shouldn’t a drone swarm? It would be sad if they had to truck the craft back to a hangar and recharge them every hour or two. It also increases logistics costs like gas and lodging if it takes more time and driving.
This means the team involves several people, as well as several drones. Qualified pilots and observers are needed, as well as people familiar with the hardware and software that can maintain and troubleshoot on site — usually with no cell signal or other support. Like many other forms of automation, this one brings its own new job opportunities to the table.
The actual planting process is deceptively complex.
The idea of loading up a drone with seeds and setting it free on a blasted landscape is easy enough to picture. Hell, it’s been done. There are efforts going back decades to essentially load seeds or seedlings into guns and fire them out into the landscape at speeds high enough to bury them in the dirt: in theory this combines the benefits of manual planting with the scale of carpeting the place with seeds.
But whether it was slapdash placement or the shock of being fired out of a seed gun, this approach never seemed to work.
Forestry researchers have shown the effectiveness of finding the right “microsite” for a seed or seedling; in fact, it’s why manual planting works as well as it does. Trained humans find perfect spots to put seedlings: in the lee of a log; near but not too near the edge of a stream; on the flattest part of a slope, and so on. If you really want a forest to grow, you need optimal placement, perfect conditions and preventative surgical strikes with pesticides.
Although it’s difficult, it’s also the kind of thing that a machine learning model can become good at. Sorting through messy, complex imagery and finding local minima and maxima is a specialty of today’s ML systems, and the aerial imagery from the drones is rich in relevant data.
The company’s CTO led the creation of an ML model that determines the best locations to put trees at a site — though this task can be highly variable depending on the needs of the forest. A logging company might want a tree every couple of feet, even if that means putting them in sub-optimal conditions — but a few inches to the left or right may make all the difference. On the other hand, national forests may want more sparse deployments or specific species in certain locations to curb erosion or establish sustainable firebreaks.
Once the data has been crunched, the map is loaded into the drones’ hive mind and the convoy goes to the location, where the craft are loaded with seeds instead of herbicides.
But not just any old seeds! You see, that’s one more wrinkle. If you just throw a sagebrush seed on the ground, even if it’s in the best spot in the world, it could easily be snatched up by an animal, roll or wash down to a nearby crevasse, or simply fail to find the right nutrients in time despite the planter’s best efforts.
That’s why DroneSeed’s head of Planting and his team have been working on a proprietary seed packet that they were unbelievably reticent to detail.
From what I could gather, they’ve put a ton of work into packaging the seeds into nutrient-packed little pucks held together with a biodegradable fiber. The outside is dusted with capsaicin, the chemical that makes spicy food spicy (and also what makes bear spray do what it does). If they hadn’t told me, I might have guessed, since the workshop area was hazy with it, leading us all to cough and tear up a little. If I were a marmot, I’d learn to avoid these things real fast.
The pucks, or “seed vessels,” can and must be customized for the location and purpose — you have to match the content and acidity of the soil, things like that. DroneSeed will have to make millions of these things, but it doesn’t plan to be the manufacturer.
Finally these pucks are loaded in a special puck-dispenser which, closely coordinating with the drone, spits one out at the exact moment and speed needed to put it within a few centimeters of the microsite.
All these factors should improve the survival rate of seedlings substantially. That means that the company’s methods will not only be more efficient, but more effective. Reforestation is a numbers game played at scale, and even slight improvements — and DroneSeed is promising more than that — are measured in square miles and millions of tons of biomass.
DroneSeed has already signed several big contracts for spraying, and planting is next. Unfortunately, the timing on their side meant they missed this year’s planting season, though by doing a few small sites and showing off the results, they’ll be in pole position for next year.
After demonstrating the effectiveness of the planting technique, the company expects to expand its business substantially. That’s the scaling part — again, not easy, but easier than hiring another couple thousand planters every year.
Ideally the hardware can be assigned to local teams that do the on-site work, producing loci of activity around major forests from which jobs can be deployed at large or small scales. A set of five or six drones does the work of one helicopter, roughly speaking, so depending on the volume requested by a company or forestry organization, you may need dozens on demand.
That’s all yet to be explored, but DroneSeed is confident that the industry will see the writing on the wall when it comes to the old methods, and identify them as a solution that fits the future.
If it sounds like I’m cheerleading for this company, that’s because I am. It’s not often in the world of tech startups that you find a group of people not just attempting to solve a serious problem — it’s common enough to find companies hitting this or that issue — but who have spent the time, gathered the expertise and really done the dirty, boots-on-the-ground work that needs to happen so it goes from great idea to real company.
That’s what I felt was the case with DroneSeed, and here’s hoping their work pays off — for their sake, sure, but mainly for ours.
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Walking into the office of Viktor Prokopenya — which overlooks a central London park — you would perhaps be forgiven for missing the significance of this unassuming location, just south of Victoria Station in London. While giant firms battle globally to make augmented reality a “real industry,” this jovial businessman from Belarus is poised to launch a revolutionary new technology for just this space. This is the kind of technology some of the biggest companies in the world are snapping up right now, and yet, scuttling off to make me a coffee in the kitchen is someone who could be sitting on just such a company.
Regardless of whether its immediate future is obvious or not, AR has a future if the amount of investment pouring into the space is anything to go by.
In 2016 AR and VR attracted $2.3 billion worth of investments (a 300 percent jump from 2015) and is expected to reach $108 billion by 2021 — 25 percent of which will be aimed at the AR sector. But, according to numerous forecasts, AR will overtake VR in 5-10 years.
Apple is clearly making headway in its AR developments, having recently acquired AR lens company Akonia Holographics and in releasing iOS 12 this month, it enables developers to fully utilize ARKit 2, no doubt prompting the release of a new wave of camera-centric apps. This year Sequoia Capital China, SoftBank invested $50 million in AR camera app Snow. Samsung recently introduced its version of the AR cloud and a partnership with Wacom that turns Samsung’s S-Pen into an augmented reality magic wand.
The IBM/Unity partnership allows developers to integrate into their Unity applications Watson cloud services such as visual recognition, speech to text and more.
So there is no question that AR is becoming increasingly important, given the sheer amount of funding and M&A activity.
Joining the field is Prokopenya’s “Banuba” project. For although you can download a Snapchat-like app called “Banuba” from the App Store right now, underlying this is a suite of tools of which Prokopenya is the founding investor, and who is working closely to realize a very big vision with the founding team of AI/AR experts behind it.
The key to Banuba’s pitch is the idea that its technology could equip not only apps but even hardware devices with “vision.” This is a perfect marriage of both AI and AR. What if, for instance, Amazon’s Alexa couldn’t just hear you? What if it could see you and interpret your facial expressions or perhaps even your mood? That’s the tantalizing strategy at the heart of this growing company.
Better known for its consumer apps, which have been effectively testing their concepts in the consumer field for the last year, Banuba is about to move heavily into the world of developer tools with the release of its new Banuba 3.0 mobile SDK. (Available to download now in the App Store for iOS devices and Google Play Store for Android.) It’s also now secured a further $7 million in funding from Larnabel Ventures, the fund of Russian entrepreneur Said Gutseriev, and Prokopenya’s VP Capital.
This move will take its total funding to $12 million. In the world of AR, this is like a Romulan warbird de-cloaking in a scene from Star Trek.
Banuba hopes that its SDK will enable brands and apps to utilise 3D Face AR inside their own apps, meaning users can benefit from cutting-edge face motion tracking, facial analysis, skin smoothing and tone adjustment. Banuba’s SDK also enables app developers to utilise background subtraction, which is similar to “green screen” technology regularly used in movies and TV shows, enabling end-users to create a range of AR scenarios. Thus, like magic, you can remove that unsightly office surrounding and place yourself on a beach in the Bahamas…
Because Banuba’s technology equips devices with “vision,” meaning they can “see” human faces in 3D and extract meaningful subject analysis based on neural networks, including age and gender, it can do things that other apps just cannot do. It can even monitor your heart rate via spectral analysis of the time-varying color tones in your face.
It has already been incorporated into an app called Facemetrix, which can track a child’s eyes to ascertain whether they are reading something on a phone or tablet or not. Thanks to this technology, it is possible to not just “track” a person’s gaze, but also to control a smartphone’s function with a gaze. To that end, the SDK can detect micro-movements of the eye with subpixel accuracy in real time, and also detects certain points of the eye. The idea behind this is to “Gamify education,” rewarding a child with games and entertainment apps if the Facemetrix app has duly checked that they really did read the e-book they told their parents they’d read.
If that makes you think of a parallel with a certain Black Mirror episode where a young girl is prevented from seeing certain things via a brain implant, then you wouldn’t be a million miles away. At least this is a more benign version…
Banuba’s SDK also includes “Avatar AR,” empowering developers to get creative with digital communication by giving users the ability to interact with — and create personalized — avatars using any iOS or Android device.Prokopenya says: “We are in the midst of a critical transformation between our existing smartphones and future of AR devices, such as advanced glasses and lenses. Camera-centric apps have never been more important because of this.” He says that while developers using ARKit and ARCore are able to build experiences primarily for top-of-the-range smartphones, Banuba’s SDK can work on even low-range smartphones.
The SDK will also feature Avatar AR, which allows users to interact with fun avatars or create personalised ones for all iOS and Android devices. Why should users of Apple’s iPhone X be the only people to enjoy Animoji?
Banuba is also likely to take advantage of the news that Facebook recently announced it was testing AR ads in its newsfeed, following trials for businesses to show off products within Messenger.
Banuba’s technology won’t simply be for fun apps, however. Inside two years, the company has filed 25 patent applications with the U.S. patent office, and of six of those were processed in record time compared with the average. Its R&D center, staffed by 50 people and based in Minsk, is focused on developing a portfolio of technologies.
Interestingly, Belarus has become famous for AI and facial recognition technologies.
For instance, cast your mind back to early 2016, when Facebook bought Masquerade, a Minsk-based developer of a video filter app, MSQRD, which at one point was one of the most popular apps in the App Store. And in 2017, another Belarusian company, AIMatter, was acquired by Google, only months after raising $2 million. It too took an SDK approach, releasing a platform for real-time photo and video editing on mobile, dubbed Fabby. This was built upon a neural network-based AI platform. But Prokopenya has much bolder plans for Banuba.
In early 2017, he and Banuba launched a “technology-for-equity” program to enroll app developers and publishers across the world. This signed up Inventain, another startup from Belarus, to develop AR-based mobile games.
Prokopenya says the technologies associated with AR will be “leveraged by virtually every kind of app. Any app can recognize its user through the camera: male or female, age, ethnicity, level of stress, etc.” He says the app could then respond to the user in any number of ways. Literally, your apps could be watching you.
So, for instance, a fitness app could see how much weight you’d lost just by using the Banuba SDK to look at your face. Games apps could personalize the game based on what it knows about your face, such as reading your facial cues.
Back in his London office, overlooking a small park, Prokopenya waxes lyrical about the “incredible concentration of diversity, energy and opportunity” of London. “Living in London is fantastic,” he says. “The only thing I am upset about, however, is the uncertainty surrounding Brexit and what it might mean for business in the U.K. in the future.”
London may be great (and will always be), but sitting on his desk is a laptop with direct links back to Minsk, a place where the facial recognition technologies of the future are only now just emerging.
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