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Chinese electric car startup Byton raises $500 million

Byton, a Chinese electric car startup, has secured a $500 million Series B funding round to fuel the development of smart, connected cars. Investors include FAW Group, Tus-Holdings and CATL. Byton also announced the opening of a new HQ in Nanjing, China. This is on top of Byton’s research and development center in Santa Clara, Calif.

“By combining our expertise in R&D and traditional car-making with innovative Internet technologies, we aspire to pioneer a smart mobility revolution,” Byton CEO and co-founder Dr. Carsten Breitfeld said in a statement.

At the Consumer Electronics Show, Byton unveiled its all-electric SUV concept. Earlier this year, Byton also announced a partnership with self-driving car startup Aurora. The terms of the partnership entail Aurora powering Byton’s autonomous driving features via a pilot deployment in the next couple of years. Byton plans to roll out its first batch of prototypes in April 2019 with the goal of Q4 2019 for the launch of a mass-produced model.

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By automating code compliance, UpCodes AI is ‘the spellcheck for buildings’

For many architects, the hardest part of their job starts after they finish designing a building, when the onerous process of code compliance begins. Written to ensure the safety and accessibility of buildings, codes dictate everything from the height and depth of stairs and where railings end, to the amount of floor space in front of toilets and the height of windows. Regulations are constantly updated, which means that even the most diligent team of architects often miss violations, resulting in costly delays. Y Combinator alum UpCodes wants to help them by using artificial intelligence, including natural language processing, to create what the San Francisco-based startup describes as “the spellcheck for buildings.”

Called UpCodes AI, the program is a plug-in that scans 3D models created with building information modeling (BIM) data and alerts architects about potential issues. It draws on the same backend as UpCodes’ first product, an app that compiles regulations into a constantly updated, searchable database with collaboration tools. UpCodes AI, which launched to the public last week, currently supports recent versions of Autodesk Revit and will add ARCHICAD, Sketchup and IFC in the future.

“This is like Grammarly for the construction industry. By highlighting code errors in real-time, the software acts as a code consultant working beside you at all times,” UpCodes co-founder and CEO Scott Reynolds tells TechCrunch.

UpCodes’ co-founders Garrett and Scott Reynolds and UpCodes AI technical lead Mark Vulfson

UpCodes was founded in 2016 after Reynolds became so frustrated by traditional code compliance while working as an architect that he switched career paths and launched the startup with his brother Garrett, a former software engineer at PlanGrid, to fix the process.

Building codes change so often that they are sometimes referred to as “living documents.” UpCodes’ database draws directly on regulations put online by municipalities and is updated almost in real-time. This eases a major pain point because many architects who thought they had followed regulations find out too late that they missed an amendment. In worst case scenarios, completed work needs to be torn out and rebuilt, potentially costing tens of thousands of dollars. This is a frequent occurrence and Scott Reynolds points to studies by McKinsey and the National Association of Home Builders that cite the complexity of code compliance as a major reason for reduced productivity in the construction industry and rising home prices.

Automating code compliance may also make it easier for architects to expand their practices, since regulations can vary dramatically between jurisdictions. UpCodes currently covers building codes in 26 states and the District of Columbia. Though UpCodes AI is still in its early stages, Reynolds tells TechCrunch that during its private beta it identified an average of about 27 violations per project.

One of its private beta users was Nicholas LoCicero, a designer with CallisonRTKL, an architecture firm known for retail design. LoCicero told TechCrunch in an email that the company used UpCodes AI on two retail locations that needed brand updates. Accessibility, which includes making sure that there are unobstructed ways of exiting a building from any point within it, is one of the most important parts of code compliance, and LoCicero said UpCodes AI was able to flag issues with door clearance, depth on stairs and tread width more quickly than the typical compliance process.

The program “definitely has the potential to save us hours of time with smart egress and accessibility tools and components that will help us develop projects faster during different phases of design” while ensuring that compliance is maintained, he added.

So far, UpCodes has raised $785,000 in funding from angel investors, as well as Y Combinator and Foundation Capital. It now has over 100,000 monthly active users and recently hired Mark Vulfson, former senior manager of engineering at PlanGrid, to serve as UpCodes AI’s technical lead.

Though the adoption of BIM data has made planning buildings more efficient, that’s “only a modest use of BIM’s full potential,” Reynolds says. He notes that it’s just within the past few years that more than 50% of American architecture firms have started using 3D information-rich modeling instead of 2D modeling. Programs like Revit and ARCHICAD, and new developments in APIs, finally made automated code compliance possible.

The use of AI in architecture is still new, but there are already several companies, including Autodesk and CoPlannery, exploring how to apply AI technologies to solve common problems in design, construction and engineering. Since AI is used in other major industries, including finance and healthcare, to automate compliance, it makes sense to assume that somewhere down the line, another company might try to build a competitor to UpCodes AI.

Reynolds believes that the UpCodes team’s combined industry and technical expertise will give it an edge over future rivals. He says his brother Garrett has a background in diffusion MRI analyzing large 4D data sets, while Vulfson brings “extensive experience deploying client side and web-based products” to the startup. UpCodes also works with a building code consultant who is based in New York City.

“The whole industry of code compliance has been neglected by software engineers for so long that it’s hard to imagine someone else doing what we’re doing,” Reynolds says.

“Building codes are a creativity killer.  These regulations are one of the most restrictive components of design,” he adds. “Imagine restricting every brush stroke an artist makes with ten thousand rules–that’s what building codes feel like to an architect. That’s why I quit my career to do this. I want to take away that frustration and make architecture more fun, like it is in school.”

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Canvs brings its emotion analysis tool to surveys

Jared Feldman, CEO of Canvs, said he has a big goal: “I think there needs to be a Google for emotions … where you can see how people feel about everything.”

Feldman argued that creating such a product, Canvs can not only help businesses make better decisions, but also contribute to “a more empathetic world.”

(When I pointed out that not everyone is comfortable with the idea of for-profit businesses having a detailed understanding of their emotions, particularly post-Cambridge Analytica, Feldman noted that Canvs isn’t involved in any kind of user targeting or attempts to change user behavior — instead, it’s all about “clarifying how people really feel about things.”)

Canvs’ first product was focused on helping TV networks understanding the social media conversation about their shows, with what Feldman said is much greater nuance than normal social sentiment analysis. Now the company is taking the next step with the launch of Canvs Surveys.

Using this product, researchers collect survey data the way they normally do, but they can then upload an Excel spreadsheet of open-ended responses and quickly get a detailed breakdown of how people responded, in aggregate, to different characters, storylines and so on.

Canvs Surveys

Feldman explained that while surveys are a common research tool for businesses, open-ended questions can be a big problem. Not only can it take an enormous amount of time to classify and tabulate all the different responses, but it also involves a degree of subjectivity, based on how individual researchers interpret each answer.

At the same time, it’s the open-ended questions that can provide the most meaningful insights. For example, Feldman said Canvs works with NBCUniversal and found that three of the network’s pilots got similar responses when it came to the “closed ends” (namely, the survey questions where respondents choose from a menu or numerical scale of possible answers).

It was only in the open-ended questions that you could see meaningful differences — Feldman said that ultimately, it turned out that the shows that “overperformed for ‘enjoyment’ and underperformed for ‘interesting’” did well with viewers, while the shows that respondents saw as more interesting than enjoyable did poorly in the ratings.

Feldman argued that this is an insight that applies to companies beyond TV.

“For every single industry now, because of the Internet, because of how many choices we have, the only thing that gets people to do something is an emotional connection,” he said. “That’s the rub.”

He added that a tool like Canvs Surveys doesn’t replace the work of researchers. Instead, he argued that it reduces the “manual work” and makes them “more focused on what they’re really good at, which is insights and storytelling.” (Plus, researchers who want to go deeper can dig into the individual responses and flag answers that weren’t classified correctly.)

It seems that NBCUniversal is happy with the results. The company’s senior director of program research Benoit Landry said in the announcement:

Having just wrapped up our first pilot testing using Canvs Surveys, I can say with confidence this isn’t an iterative improvement for the research community, it’s a first-ever. We went from spending 16 hours trying to hand sort open-ended survey responses, down to one hour with Canvs, and that’s in addition to never-before-seen normative insights across pilots. It’s an extraordinary efficiency gain and cost savings for NBC for something we do dozens of times each year.

Canvs Surveys is available for free for researchers analyzing up to 5,000 open-ended responses.

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Splunk nabs on-call management startup VictorOps for $120M

In a DevOps world, the operations part of the equation needs to be on call to deal with issues as they come up 24/7. We used to use pagers. Today’s solutions like PagerDuty and VictorOps have been created to place this kind of requirement in a modern digital context. Today, Splunk bought VictorOps for $120 million in cash and Splunk securities.

It’s a company that makes a lot of sense for Splunk, a log management tool that has been helping customers deal with oodles of information being generated from back-end systems for many years. With VictorOps, the company gets a system to alert the operations team when something from that muddle of data actually requires their attention.

Splunk has been making moves in recent years to use artificial intelligence and machine learning to help make sense of the data and provide a level of automation required when the sheer volume of data makes it next to impossible for humans to keep up. VictorOps fits within that approach.

“The combination of machine data analytics and artificial intelligence from Splunk with incident management from VictorOps creates a ‘Platform of Engagement’ that will help modern development teams innovate faster and deliver better customer experiences,” Doug Merritt, president and CEO at Splunk said in a statement.

In a blog post announcing the deal, VictorOps founder and CEO Todd Vernon said the two companies’ missions are aligned. “Upon close, VictorOps will join Splunk’s IT Markets group and together will provide on-call technical staff an analytics and AI-driven approach for addressing the incident lifecycle, from monitoring to response to incident management to continuous learning and improvement,” Vernon wrote.

It should come as no surprise that the two companies have been working together even before the acquisition. “Splunk has been an important technical partner of ours for some time, and through our work together, we discovered that we share a common viewpoint that Modern Incident Management is in a period of strategic change where data is king, and insights from that data are key to maintaining a market leading strategy,” Vernon wrote in the blog post.

VictorOps was founded 2012 and has raised over $33 million, according to data on Crunchbase. The most recent investment was a $15 million Series B in December 2016.

The deal is expected to close in Splunk’s fiscal second quarter subject to customary closing conditions, according to a statement from Splunk.

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Workday acquires Rallyteam to fuel machine learning efforts

Sometimes you acquire a company for the assets and sometimes you do it for the talent. Today Workday announced it was buying Rallyteam, a San Francisco startup that helps companies keep talented employees by matching them with more challenging opportunities in-house.

The companies did not share the purchase price or the number of Rallyteam employees who would be joining Workday .

In this case, Workday appears to be acquiring the talent. It wants to take the Rallyteam team and incorporate it into the company’s engineering unit to beef up its machine learning efforts, while taking advantage of the expertise it has built up over the years connecting employees with interesting internal projects.

“With Rallyteam, we gain incredible team members who created a talent mobility platform that uses machine learning to help companies better understand and optimize their workforces by matching a worker’s interests, skills and connections with relevant jobs, projects, tasks and people,” Workday’s Cristina Goldt wrote in a blog post announcing the acquisition.

Rallyteam, which was founded in 2013, and launched at TechCrunch Disrupt San Francisco in September 2014, helps employees find interesting internal projects that might otherwise get outsourced. “I knew there were opportunities that existed [internally] because as a manager, I was constantly outsourcing projects even though I knew there had to be people in the company that could solve this problem,” Rallyteam’s Huan Ho told TechCrunch’s Frederic Lardinois at the launch. Rallyteam was a service designed to solve this issue.

Last fall the company raised $8.6 million led by Norwest Ventures with participation from Storm Ventures, Cornerstone OnDemand and Wilson Sonsini.

Workday provides a SaaS platform for human resources and finance, so the Rallyteam approach fits nicely within the scope of the Workday business. This is the 10th acquisition for Workday and the second this year.

Chart: Crunchbase

Workday raised over $230 million before going public in 2012.

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M17 delays IPO debut after pricing this morning on NYSE

M17 Entertainment, a Taipei-based live streaming and dating app group, priced its IPO this morning on the NYSE and was expected to open trading today according to their final press release. But with just a little more than two hours to go before market closing, it’s still not trading, and no one seems to know why.

An interview I had scheduled with the CEO earlier this afternoon was canceled at the last minute, with the company’s representative saying that M17 couldn’t comment since its shares were not yet actively trading, and thus the company remains under an SEC-mandated quiet period.

M17 has had a rocky non-debut so far. Originally targeting a fundraise of $115 million of American Depository Receipts (shares of foreign companies listed domestically on the NYSE), the company concluded its roadshow raising less than half of its target, for a final investment of $60.1 million. The company priced its ADR shares at $8 each, with each ADR representing 8 shares of the stock’s Class A security.

My colleague Jon Russell has covered the company’s rapid growth over the past three years. It was formed from the merger of dating app company Paktor and live-streaming business 17 Media. Joseph Phua, who was CEO of Paktor, became CEO of the joint M17 company following the merger. Together, the two halves have raised tens of millions in venture capital.

M17 provides live-streaming and dating apps throughout “Developed Asia”

The company’s main product is a live-streaming product where creators can build their fan bases and brands. Fans can purchase virtual gifts to send to their favorite artists, and those points are proving to be extraordinarily lucrative for the company. The company, according to its amended F-1 statement, has seen tremendous revenue growth, netting $37.9 million of revenue in the first three months of this year. The company has also been able to attract more live-streaming talent, increasing its contracted artists from 999 at the end of December 2016 to 7,719 at the end of March this year.

That’s where the good news ends for the company. Despite that revenue growth, operating losses are torrential, with the company losing $24.8 million in the first three months of this year. The company in its statement says that it has $31.4 million in cash and cash equivalents, giving it limited runway to continue operations without a strong IPO debut.

User growth has been mostly stagnant. Active monthly users has increased from 1.5 million to 1.7 million between March 31 of 2017 and 2018. What the company has succeeded in doing is monetizing those users much better. The percentage of users paying on the platform has more than doubled over the same time period, and the value of those users has increased more than 40 percent to $355 per user per month.

The big challenge for M17 is revenue quality. Live streaming represents 91.4 percent of the company’s revenues, but those revenues are concentrated on a handful of “whales” who buy a freakishly high number of virtual gifts. The company’s top 10 users represent 11.8 percent of all revenues (that’s $447,220 per user in the first three months this year!), and its top 500 users accounted for almost a majority of total revenues. That concentration on the demand side is just as heavy on the supply side. M17’s top 100 artists accounted for more than a third of the company’s revenue.

That concentration has improved over the past few months, according to the company’s filing. But Wall Street investors have learned after Zynga and other whale-based revenue models that the sustainability of these businesses can be tough.

Finally, one complication for many investors wary of the increasing use of dual-class stock issues is the governance of the company. Phua, the CEO, will have 56.3 percent of the voting rights of the company, and M17 will be a controlled company under NYSE rules according to the company’s amended filing. Class B shares vote at a 20:1 ratio with Class A share voting rights.

All of this is to say that while the company has had some dizzying growth in its revenue numbers over the past 24 months, that success is moderated by some significant challenges in revenue concentration that will have to be a top priority for M17 going forward. Why the company priced and hasn’t traded remains a mystery, and we have reached out for more comments.

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Speech recognition triggers fun AR stickers in Panda’s video app

Panda has built the next silly social feature Snapchat and Instagram will want to steal. Today the startup launches its video messaging app that fills the screen with augmented reality effects based on the words you speak. Say “Want to get pizza?” and a 3D pizza slice hovers by your mouth. Say “I wear my sunglasses at night” and suddenly you’re wearing AR shades with a moon hung above your head. Instead of being distracted by having to pick effects out of a menu, they appear in real-time as you chat.

Panda is surprising and delightful. It’s also a bit janky, created by a five person team with under $1 million in funding. Building a video chat app user base from scratch amidst all the competition will be a struggle. But even if Panda isn’t the app to popularize the idea, it’s invented a smart way to enhance visual communication that blends into our natural behavior.

It all started with a trippy vision. Panda’s 18-year-old founder Daniel Singer had built a few failed apps and was working as a product manager at peer-to-peer therapy startup Sensay in LA. When Alaska Airlines bought Virgin, Singer scored a free flight and came to see his buddy Arjun Sethi, an investor at Social Capital in SF. That’s when suddenly “I’m hallucinating that as I’m talking the things I’m saying should appear” he tells me. Sethi dug the idea and agreed to fund a project to build it.

Panda founder Daniel Singer

Meanwhile, Singer had spent the last 6 years FaceTiming almost every day. He loved telling stories with his closest friends, yet Apple’s video chat protocol had fallen behind Snapchat and Instagram when it came to creative tools. So a year ago he raised $850,000 from Social Capital and Shrug Capital plus angels like Cyan (Banister) and Secret’s David Byttow. Singer set out to build Panda to combine FaceTime’s live chat with Snapchat’s visual flare triggered by voice.

But it turns out, “video chat is hard” he admits. So his small team settled for letting users send 10-second-max asynchronous video messages. Panda’s iOS app launched today with about 200 different voice activated stickers from footballs to sleepy Zzzzzs to a “&’%!#” censorship bar that covers your mouth when you swear. Tap them and they disappear, and soon you’ll be able to reposition them. As you trigger the effects for the first time, they go into a trophy case that gamifies voice experimentation.

Panda is fun to play around with yourself even if you aren’t actively messaging friends, which is reminiscent of how teens play with Snapchat face filters without always posting the results. The speech recognition effects will make a lot more sense if Panda can eventually succeed at solving the live video chat tech challenge. One day Singer imagines Panda making money by selling cosmetic effects that make you more attractive or fashionable, or offering sponsored effects so when you say “gym”, the headband that appears on you is Nike branded.

Unfortunately, the app can be a bit buggy and effects don’t always trigger, fooling you that you aren’t saying the right words. And it could be tough convincing buddies to download another messaging app, let alone turn it into a regular habit. Apple is also adding a slew of Memoji personalized avatars and other effects to FaceTime in its upcoming iOS 12.

Panda does advance one of technology’s fundamental pursuits: taking the fuzzy ideas in your head and translating them into meaning for others in clearer ways than just words can offer. It’s the next wave of visual communication that doesn’t require you to break from the conversation.

When I ask why other apps couldn’t just copy the speech stickers, Singer insisted “This has to be voice native.” I firmly disagree, and can easily imagine his whole app becoming just a single filter in Snapchat and Instagram Stories. He eventually acquiesced that “It’s a new reality that bits and pieces of consumer technology get traded around. I wouldn’t be surprised if others think it’s a good idea.”

It’s an uphill battle trying to disrupt today’s social giants, who are quick to seize on any idea that gives them an edge. Facebook rationalizes stealing other apps’ features by prioritizing whatever will engage its billions of users over the pride of its designers. Startups like Panda are effectively becoming outsourced R&D departments.

Still, Panda pledges to forge on (though it might be wise to take a buyout offer). Singer gets that his app won’t cure cancer or “make the world a better place” as HBO’s Silicon Valley has lampooned. “We’re going to make really fun stuff and make them laugh and smile and experience human emotion” he concludes. “At the end of the day, I don’t think there’s anything wrong with building entertainment and delight.”

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SeatGeek brings ticket buying into Snapchat

You can now buy game and concert tickets from teams and musicians within Snapchat, thanks to an integration with SeatGeek .

While Snapchat has started testing e-commerce features in the past few months, SeatGeek says this is the first ticket-buying experience built into the Snapchat app.

The Los Angeles Football Club was the first team to sell tickets through this integration, by posting a Snapchat Story (and a Snapcode on the team website) that allowed users to swipe up to buy tickets to the May 26 game. The full purchase experience takes place without leaving the app.

“We’re always looking to reach our fans in innovative ways, and selling tickets directly to our followers on Snapchat gives us an incredible opportunity to connect with our most dedicated supporters,” said Los Angeles Football Club President and co-owner Tom Penn in the announcement.

SeatGeek Snapchat

SeatGeek co-founder Russ D’Souza said that as “the pipe gets solidified,” you’ll start seeing more Snapchat/SeatGeek ticket sales. He added that this is the kind of integration he was hoping for when the company launched the SeatGeek Open platform a couple of years ago, allowing teams, musicians and other rightsholders to sell tickets directly through SeatGeek. (The platform also supports ticket sales through Facebook.)

“For too long, the legacy ticketing approach has been to make it difficult for teams to sell tickets in lots of places,” D’Souza said. “Teams should want to sell their tickets in as many places as possible.”

And it sounds there are additional deals in the works: “What we’re excited about over the next few months is beating the drumbeat of openness with new partnerships … We want to drive the whole industry forward and create more tangible results that cause the industry to open up.”

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Devo scores $25 million and cool new name

Logtrust is now known as Devo in one of the cooler name changes I’ve seen in a long time. Whether they intended to pay homage to the late 70s band is not clear, but investors probably didn’t care, as they gave the data operations startup a bushel of money today.

The company now known as Devo announced a $25 million Series C round led by Insight Venture Partners with participation from Kibo Ventures. Today’s investment brings the total raised to $71 million.

The company changed its name because it was about much more than logs, according to CEO Walter Scott. It offers a cloud service that allows customers to stream massive amounts of data — think terabytes or even petabytes — relieving the need to worry about all of the scaling and hardware requirements processing this amount of data would require. That could be from logs from web servers, security data from firewalls or transactions taking place on backend systems, as some examples.

The data can live on prem if required, but the processing always gets done in the cloud to provide for the scaling needs. Scott says this is about giving companies this ability to process and understand massive amounts of data that previously was only in reach of web scale companies like Google, Facebook or Amazon.

But it involves more than simply collecting the data. “It’s the combination of us being able to collect all of that data together with running analytics on top of it all in a unified platform, then allowing a very broad spectrum of the business [to make use of it],” Scott explained.

Devo dashboard. Photo: Devo

Devo sees Sumo Logic, Elastic and Splunk as its primary competitors in this space, but like many startups they often battle companies trying to build their own systems as well, a difficult approach for any company to take when you are dealing with this amount of data.

The company, which was founded in Spain is now based in Cambridge, Massachusetts, and has close to 100 employees. Scott says he has the budget to double that by the end of the year, although he’s not sure they will be able to hire that many people that rapidly

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Revolut announces a Robinhood-like trading product

Fintech startup Revolut likes to announce new things all the time. Even though nothing is going live today, it’s interesting to see where the startup is heading. The company is working on a trading platform for traditional shares without any commission.

You’ll find stock from public companies from the U.K. and the U.S., as well as various ETFs and options. In other words, Revolut is going to become the Robinhood of Europe.

While American customers have been using Robinhood for years, the rest of the world has been lagging behind when it comes to stock trading.

You still have to open an account on a painfully slow website and pay a few euros for every transaction. Some companies even ask you to send a letter to create an account. And if you want to buy stock through your existing bank account, it usually costs even more.

Revolut promises that you won’t pay any commission when you buy or sell shares. The company plans to make money on margin trading, securities lending and interest on cash. Unfortunately, Revolut didn’t say when the feature would launch.

Premium subscribers will be able to test the feature first. Eventually, you’ll also get additional perks if you’re a premium subscriber. Trading will be available to all Revolut users in Europe and future markets. The company plans to launch in the U.S., Canada, Singapore, Hong Kong, Australia and New Zealand in the coming months.

Revolut’s premium subscription is becoming a sort of Amazon Prime for financial products. You pay £6.99/€7.99 per month and you get unlimited foreign exchange transactions, travel insurance, access to new features and more.

It’s clear that Revolut plans on making predictable revenue on this premium subscription. And maybe the trading platform will make more people subscribe to Revolut Premium.

Additionally, Revolut now officially has 2 million users. It’s funny to see that Revolut is announcing this new milestone just days after N26 announced a million users. Interestingly, Revolut has 900,000 users in the U.K., where N26 has yet to launch.

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