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Today marks a big milestone for Lyft — one billion rides. That’s a milestone Uber hit in December 2015. Uber has since grown to 10 billion trips completed — including Eats deliveries — as of this past July. Uber, of course, had a bit of head start given it launched in 2009 while Lyft first launched in 2012.
This milestone for Lyft comes about a year after it announced it was completing one million rides a day. To celebrate it, Lyft employees are surprising 3,500 drives with a free tank of gas.
Earlier this month, Lyft officially entered the scooter sharing space when it launched electric scooters in Denver, Colo. Lyft has since deployed its scooters in Santa Monica, Calif. as part of the city’s pilot program. Lyft’s entrance into scooters came close after its acquisition of bike-share company Motivate. We’ll be watching closely to see how Lyft’s additional modes of transportation impacts number of trips completed.
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Design tools are becoming increasingly important to just about every brand out there. Today, a new entrant joins the race.
Framer X, a revamped version of three-year-old Framer, was founded by Koen Bok and Jorn van Dijk after the duo sold design software Sofa to Facebook in 2011. Framer X is a rich, React-based design tool that lets any designer draw out their interface components and instantly send them over to the engineering team for collaboration.
The key here is reusability and fidelity. With Framer X, engineers can send over existing components that are in production and let designers move forward from there. Conversely, designers aren’t sending developers a facsimile of a button or icon but the actual SVG code behind that component.
Framer X also allows users to collect components and other design items as a package within the Framer X store, so that they’re easily accessible during the design process. Framer X offers a public Framer X Store where casual designers can build off of the experience of advanced designers who’ve uploaded components to the store.
The company also allows enterprises to launch their own private store for use within the organization.
Framer costs $15/month for users, and private Framer X stores for the enterprise are priced flexibly based on the size of the organization.
Framer now joins a competitive landscape, which includes the likes of InVision, Adobe, and Sketch.
The company says it has around 50,000 monthly active users, with 200 companies (including Google, Facebook and Dropbox) using the product. Framer has raised $9 million to date from Greylock, Foundation Capital, Designer Fund, and Accel Europe.
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On-demand delivery service Postmates announced this morning that it has raised $300 million in additional funding led by Tiger Global Management.
While the company’s press release doesn’t mention this, Fortune reports that the deal valued Postmates at $1.2 billion. Tiger’s Scott Schleifer is joining the board of directors.
Postmates does say that it’s completing “millions” of deliveries every month and is profitable in 90 percent of its markets, and that over the past four years, gross margins have “improved dramatically to nearly 50%.”
Over the past few months, Postmates expanded into more than 100 new cities (it’s now available in more than 400 U.S. cities, as well as Mexico City) and also announced partnerships with companies like Instacart and Walmart.
Postmates previously raised a $140 million round at a $600 million valuation in 2016. More broadly, it looks like VCs aren’t backing away from the on-demand delivery market — DoorDash, for example, recently raised $250 million at a $4 billion valuation.
“The transformation of how commerce moves in cities demands that we build the most innovative tools for businesses to keep up and distribute their products to the modern consumer — efficiently and cost effectively,” said Postmates CEO Bastian Lehmann in the release. “Postmates is proud to be the first and largest on-demand network that is enabling the growth of retail across the country, and today’s investment accelerates our ability to pair technology with the vitality of our neighborhoods.”
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Singular, a startup working to unify data for marketers, is announcing that it has raised $30 million in Series B funding.
The company was founded by former Onavo executives, including Gadi Eliashiv, Eran Friedman and Susan Kuo — who now serve, respectively, as Singular’s CEO, CTO and COO.
Eliashiv explained that Singular was created in response to “this trend of data explosion in the marketing stack,” which require marketers to pull data from hundreds or thousands of different systems.
“Essentially what we see is the creation of this new category of marketing intelligence, where the complexity of the marketing stack has created the need for this layer that sits on top,” he said. “It doesn’t matter if you use a marketing cloud like Adobe that’s bundling five products together — at the end of the day, you need a layer on top making sense of it, helping you make better decisions.”

Eliashiv said Singular is able to go from a high-level dashboard summary for CMOs to “the finest level of detail.” He also noted that while the company is designed to integrate with existing marketing tools, it will “oftentimes displace smaller point solutions.”
“Our principal is, it has to be relevant for data, meaning we’re never going to displace your ad-buying tool,” he added. “It’s not what we do. We’re an intelligence platform.”
The idea of unifying marketing data is one that I hear a lot, but Eliashiv’s claims seem weightier when you see that Singular is already working with a number of big names, including Lyft, Yelp, Airbnb, LinkedIn, Symantec, Zynga, Match and Twitter.
Singular previously raised $20 million in funding. Norwest Venture Partners led the new round, with partner Scott Beechuk joining the board of directors.
Beechuk told me that he’d been studying the marketing analytics market for quite some time, and he argued, “There is something really unique and special about Singular. It’s the bridge between mobile, web and offline, all on a single platform.”
“What you’re going to find is, there are going to be a lot of technologies that Singular replaces,” Beechuk continued. “Let’s say a CMO or [chief growth officer] has 300 different outlets where they are advertising … Every one of those systems tends to have their own analytics built in. The first thing Singular does, it replaces all of those analytics systems with a single pane of glass.”
General Catalyst, Method Capital, Telstra Ventures, Translink Capital and Thomvest also participated in the new funding.
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UiPath is bringing automation to repetitive processes inside large organizations and it seems to have landed on a huge pain point. Today it announced a massive $225 million Series C on a $3 billion valuation.
The round was led by CapitalG and Sequoia Capital. Accel, which invested in the companies A and B rounds also participated. Today’s investment brings the total raised to $408 million, according to Crunchbase, and comes just months after a $153 million Series B we reported on last March. At that time, it had a valuation of over $1 billion, meaning the valuation has tripled in less than six months.
There’s a reason this company you might have never heard of is garnering this level of investment so quickly. For starters, it’s growing in leaps in bounds. Consider that it went from $1 million to $100 million in annual recurring revenue in under 21 months, according to the company. It currently has 1800 enterprise customers and claims to be adding 6 new ones a day, an astonishing rate of customer acquisition.
The company is part of the growing field of robotic process automation or RPA. While the robotics part of the name could be considered a bit of a misnomer, the software helps automate a series of mundane tasks that were typically handled by humans. It allows companies to bring a level of automation to legacy processes like accounts payable, employee onboarding, procurement and reconciliation without actually having to replace legacy systems.
Phil Fersht, CEO and chief analyst at HfS, a firm that watches the RPA market, says RPA isn’t actually that intelligent. “It’s about taking manual work, work-arounds and integrated processes built on legacy technology and finding way to stitch them together,” he told TechCrunch in an interview earlier this year.
It isn’t quite as simple as the old macro recorders that used to record a series of tasks and execute them with a keystroke, but it is somewhat analogous to that approach. Today, it’s more akin to a bot that may help you complete a task in Slack. RPA is a bit more sophisticated moving through a workflow in an automated fashion.
Ian Barkin from Symphony Ventures, a firm that used to do outsourcing, has embraced RPA. He says while most organizations have a hard time getting a handle on AI, RPA allows them to institute fundamental change around desktop routines without having to understand AI.
If you’re worrying about this technology replacing humans, it is somewhat valid, but Barkin says the technology is replacing jobs that most humans don’t enjoy doing. “The work people enjoy doing is exceptions and judgment based, which isn’t the sweet spot of RPA. It frees them from mundaneness of routine,” he said in an interview last year.
Whatever it is, it’s resonating inside large organizations and UiPath, is benefiting from the growing need by offering its own flavor of RPA. Today its customers include the likes of Autodesk, BMW Group and Huawei.
As it has grown over the last year, the number of employees has increased 3x and the company expects to reach 1700 employees by the end of the year.
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Late last week, Congress moved one step closer to passing the American Innovation Act of 2018, a bill that would make accounting and tax changes that would likely increase the valuation of startups in an acquisition.
The House Ways and Means committee approved a bill containing text that would improve the treatment of Net Operating Losses (NOLs) for startups. While many startup founders would probably rather watch paint dry (or build their companies) than dive into complex tax code changes, the provisions in the bill could greatly improve the ability of startups to invest in growth activity, and could drive meaningfully positive impacts to valuations, acquisition prices, capital markets participation and venture returns.
First, though, what are NOLs? Each year, if a company loses money, it can claim the losses as a deduction off of its future taxes. Traditionally, the U.S. tax code has allowed companies to cumulatively track and carry forward NOLs to offset taxable income in future years, reducing the amount of cash required to pay taxes. These NOLs are essentially a cash-like asset, and they can be exchanged in the event that a company is acquired.
However, a long-standing IRS provision, Section 382, which was originally implemented to prevent companies with large tax appetites from acquiring those with large operating losses exclusively to reduce taxes, limits the use of NOL carry-forwards in instances of ownership change.
Currently, in cases of an ownership change, specified as a more than 50 percent change in the ownership of shareholders who own at least 5 percent of a company’s stock, the amount of taxable income for the “post-change” company that can be offset by existing NOLs cannot exceed the value of the “pre-change” company, multiplied by the long-term tax exempt rate set by the IRS.
(Yes, this is why you hire a tax attorney.)
The net-net is that this provision has been particularly challenging for startups, which often trigger this limiting condition, given they frequently operate in the red through growth stages and often see frequent, sizable changes in their ownership structure due to fundraising, public offerings and acquisitions.
The House bill would alleviate this complication by protecting these tax offsets and creating an exception to the section 382 provision for startups, allowing the application of NOLs and R&D tax credits realized in the first three years of operations regardless of ownership change limitations.
These changes have a number of benefits for startups. It would provide increased flexibility around early-stage financing activities and remove potential issues that could arise with capital markets activity. Additionally, with startups more easily maintaining tax offsets to reduce their cash taxes, startups would have larger cash balances to invest in growth efforts.
The protection of the NOL from ownership change limitations could also have serious impacts to company valuations and the attractiveness of startups as acquisition candidates. With acquirers better able to utilize existing tax offsets, startups should benefit from higher purchase prices from the inclusion of NOL balances in valuations, helping founder and VC returns.
The bill passed through committee through a voice vote with no objections and is now expected to be voted on by the rest of the House later this month before advancing to the Senate. The bill has 23 co-sponsors, all Republican.
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WHILL, the startup known for creating sleek, high-tech personal mobility devices, announced today that it has closed a $45 million Series C. The funding will be used for expanding into new international markets, as well as developing new products for large venues, including airports and “last-mile” sidewalk transportation. The round’s lead investors were SBI Investment, Daiwa Securities Group and WHIZ Partners, with participation from returning investors INCJ, Eight Road Ventures, MSIVC, Nippon Venture Capital, DG Incubation and Mizuho Capital.
This brings WHILL’s total funding so far to about $80 million. Founded in Tokyo in 2012, WHILL plans to open a branch in the European Union and enter 10 new European countries. It also plans to start working with partners on developing autonomous capabilities for its mobility devices, senior marketing manager Jeff Yoshioka told TechCrunch. The company will build its own sensors and cameras to use in its “mobility as a service” program, which allows users to control vehicles and call customer service through a mobile app.
One of WHILL’s biggest projects is developing an autonomous personal mobility device system for airports. Yoshioka says that an estimated 20 million people request wheelchairs in U.S. airports each year. This means they need to wait for an airline employee to bring a wheelchair to them and then push them from check-in to their gates. At the same time, it doesn’t give users a lot of flexibility.
The system that WHILL has in mind, on the other hand, would allow individuals to use an app to summon a mobility device over to them. Then they can go wherever they want — coffee shops, restrooms, shops — before heading to the gate without an assistant. Once they are done with the device, it will return to a docking station on its own. WHILL has already begun testing a similar program at Tokyo International Airport in partnership with Panasonic.
Yoshioka says WHILL will most likely pursue distribution partnerships with U.S. airlines, which are responsible for supplying and maintaining the wheelchair systems in American airports, and airports to build the necessary infrastructure.
Along with airports, WHILL wants to bring its technology to other large venues, including shopping malls and sports arenas, as well as create a system for last-mile transportation. Yoshioka notes that “there are already a lot of companies out there like LimeBike and MoBike that offer bikes and electric scooters, but there’s nothing out there for people with disabilities who can’t use those devices.”
Instead, many rely on Ubers or public transportation even for short distances. Like the airport system, WHILL’s last-mile sidewalk system will use autonomous electric vehicles that can be called to users with an app. It faces unique challenges, however, because WHILL’s devices are larger and more expensive than bikes or electric scooters, so the company needs to find safe places to dock them that are still accessible to people with limited mobility. Yoshioka says WHILL likely will focus on partnering with commercial properties to create indoor docking stations.
WHILL’s largest market is still Japan, where it has between 4,000 to 5,000 resellers. In its home market, WHILL’s devices are subsidized by the government and also available for rent. In the U.S., however, many customers need to purchase devices out-of-pocket. To make their products more accessible, WHILL launched the less expensive Model Ci (called the Model C in Europe and Japan) earlier this year. While there is still plenty of room for innovation in the wheelchair market, the Model Ci and other WHILL products compete with devices like the iBot, which can climb stairs, and the Trackchair, designed for off-road use. WHILL’s current products can’t climb stairs, but they do have the advantage of being designed for both indoor and outdoor use, giving users more flexibility, says Yoshioka.
The company also expects demand for its products to grow thanks to a rapidly aging world population, citing statistics that show there are expected to be more than 2.1 billion people over the age of 60 by 2050, up from about 900 million last year.
“We don’t necessarily see [the other companies] as direct competitors. They definitely do impact sales, because people might want something that climbs stairs instead of having better outdoor capabilities, but I think overall it’s very beneficial for the industry,” Yoshioka adds. “As a company that’s trying to disrupt the industry, it’s nice to have them around because it pushes the industry forward and opens eyes for other manufacturers.”
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A fascinating project called Amadeus Code promises to out-Tay-Tay Tay Tay and out-Bon Bon Iver. The AI-based system uses data from previous musical hits to create entirely new compositions on the fly — and darn if these crazy robot-songs aren’t pretty good.
The app, which is available from the iTunes Store but doesn’t seem to be working properly, creates song sketches in minutes, freeing you up to create beautiful lyrics and a bit of accordion accompaniment.
The video above is a MIDI version of an AI-produced song and the video below shows the song full-produced using non-AI human musicians. The results, while a little odd, are very impressive.
Jun Inoue, Gyo Kitagawa and Taishi Fukuyama created Amadeus Code and all have experience in music and music production. Inoue is a renowned Japanese music producer and he has sold 10 million singles. Fukuyama worked at Echo Next and launched the first Music Hack Day in Tokyo. Fukuyama is the director of the Hit Song Research Lab and went to Berklee College of Music.
“We have analyzed decades of contemporary songs and classical music, songs of economic and/or social impact, and have created a proprietary songwriting technology that is specialized to create top line melodies of songs. We have recently released Harmony Library, which gives users direct access to the songs that power the songwriting AI for Amadeus Code,” said Inoue. “We uniquely specialize in creating top line melodies for songs that can be a source of high-quality inspiration for music professionals. We also do have plans that may overlap with other music AI companies in the market today in terms of offering hobbyists a service to quickly create completed audio tracks.”
When asked if AI will ever replace his favorite musicians, folks like Michael and Janet Jackson or George Gershwin, Inoue laughed.
“Absolutely not. This AI will not tell you about its struggles and illuminate your inner worlds through real human storytelling, which is ultimately what makes music so intimate and compelling. Similarly to how the sampler, drum machine, multitrack recorder and many other creative technologies have done in the past, we see AI to be a creative tool for artists to push the boundaries of popular music. When these AI tools eventually find their place in the right creative hands, it will have the potential to create a new entire economy of opportunities,” he said.
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Stripe is expanding beyond online payments with the launch of a new product for in-person payments at brick-and-mortar stores, called Terminal.
The company said Terminal has three main components — there’s hardware, namely card readers built by Stripe partners BBPOS and Verifone, but also SDKs and APIs for customizing checkout experiences, as well as software for managing connected devices.
Stripe’s co-founder and president John Collison discussed the launch at the Code Commerce conference today. Interviewer Jason Del Rey brought up Square, which seems like the obvious point of comparison, and Collison acknowledged there will probably be areas where the companies will compete.
However, he argued that Stripe and Square are largely targeting different customers — where Square built a card reader for businesses like coffee shops and restaurants, Stripe is aimed at more tech-savvy businesses. Its initial Terminal customers include Warby Parker and Glossier, and it’s also being used by software platforms like Mindbody, Zenoti, AtVenu and Universe.
As Collison put it, Stripe is built for companies “who will geek out about APIs with us.” And that applies to Terminal as well, which Collison said is specifically built for online businesses that are moving into brick-and-mortar stores. The goal here is to help them unify their online and offline customer data and experiences.
And while there’s been some debate about whether most web-based, direct-to-consumer businesses are true tech companies, he argued, “All of them value technology and fundamentally, their assets are not the retail distribution they have or anything like that.”
“We will happily work with all manner of companies, but the kinds of customers we get excited about, the kinds of customers we are designing for, are the ones who are moving very quickly,” he added.
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“There’s nothing like it out there,” says Commander Bill “Doc” Shoemaker (Ret.), chief test pilot for Boom Supersonic, the startup aiming to make a passenger airliner for transoceanic flights at speeds (as you might guess from the name) faster than sound. Shoemaker, a former Navy aviator, fighter pilot and aeronautics engineer, will have the daunting privilege of being the first to fly the company’s proof of concept single-seater during tests next year.
That there’s nothing like Boom is not exactly a controversial opinion — there aren’t a lot of companies out there trying to resurrect supersonic flight. The Concorde is, after all, so well known a cautionary tale of engineering ambition exceeding the constraints of reality that it verges on hackneyed. But Shoemaker isn’t a Silicon Valley startup commentator, he’s a test pilot, and his perspective is that of someone who has worked on and flown dozens of aircraft, including supersonic ones, over his decades-long career.
The first question I asked (though not entirely a serious one) when I had a chance to chat with Shoemaker was whether it was a bit premature to have a chief pilot at a company that doesn’t yet have a plane to fly.
“There’s a good reason to have a pilot at this point,” Shoemaker said. As he delicately put it: “Among the team, the pilots are… uniquely committed to the outcome.”
Among other things, test pilots seem to have a knack for understatement. But it’s certainly true.
“You want the operator’s perspective, like how to build the cockpit, how you’ll operate the aircraft. The designer will come to me for that perspective — he’ll say, ‘how can I tweak the design to be more suitable for you?’ You want that cross-industry expertise.”
Boom is making a supersonic airliner, but it’s still mostly a paper plane, if you will. The company’s test craft, the XB-1, however, is being built and should be taking to the air about a year from now. That’s where many of the components, materials and design choices will be flight-proven. Interestingly, however, actually flying the test craft is a rather analog affair.
“The aircraft is definitely designed around a philosophy, which is ‘keep it simple.’ We’re not trying to introduce any more tech than we really need to. The flight controls are not fly-by-wire, they’re mechanical,” explained Shoemaker. “It’s going to be an interesting airplane to fly. It goes from 150 knots up to Mach 2.2, and up to 45,000 feet. It’ll be a challenge because of that mechanical stuff, but with what we’re trying to do, keeping it simple makes a lot of sense.”
That’s not to say nothing has changed over the last few decades of aeronautics, a topic in which, if you’ll recall, Shoemaker has a doctorate. Although he said he considers his role as being separate from the flight test engineers who put together the craft he’s flown, he’s still an important part of the team.
He suggested a few areas where he’s seen or expects improvements to the aircraft creation and testing process.
“One is composite materials. That’s huge,” he said, referring to things like carbon fiber and more exotic weaves and alloys that combine a number of desirable characteristics. “The strength and weight improvements offer new opportunities. You know, the Concorde would contract like a foot during flight temperatures, then expand again. Composites don’t do that. All these things make the aircraft lighter, faster and stronger.”
Second, he briefly noted, engine technology these days is “brisk,” especially combined with the materials advances.
“Last,” he said, “the Concorde design was wind-tunnel based, but a lot of the work we do is computation. We can do all the testing they did for the Concorde in a couple days.”
Wind tunnels are still involved, of course, but the models are so good that it’s more for verification than testing. But it also lets designers speed through ideas, evaluating but skipping wild ones without wasting time: “You can look at all these weird corner cases, and explore those very quickly.”
Basic advances in tech mean the team can avoid quirks like the Concorde’s drooping nose, which was there so that pilots could see the runway. “You can imagine all the mechanical complexity that comes with that,” said Shoemaker. “For us we’ll be going with a direct camera or some kind of vision system that’s integrated with all the systems.”
“The airliner itself,” he said, “will be highly augmented [compared to the test jet]. It’ll be fly-by-wire. Its handling qualities are really quite benign across the envelope. It’s surprising, but the way the aircraft handles on one side of the speed of sound isn’t so different from how it handles on the other side.”
Ultimately Shoemaker was optimistic about the whole enterprise, both the company and the prospect of supersonic passenger flight.
“As far as an ambitious project with an ambitious goal, there’s nothing like it out there,” he said. “That’s the value and reward of working with a team this size, a team that really believes they can reinvent and do it better. And it’s well within what we can do with technology — we can do it better than Concorde did, possibly by orders of magnitude.”
As for his part, the test flights set to take place next year, he’s more than a little excited.
“It’ll be a challenge to fly for sure — but it’ll be nice to go that fast again.”
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