All posts by Richy George

Gett raises $115M more for its on-demand ride-hailing platform for business users

Posted by on 12 January, 2021

This post was originally published on this site

As ride-hailing companies like Uber and Lyft continue to find their feet in a new landscape for transportation services — where unessential travel is being actively discouraged in many markets, and people remain concerned about catching the coronavirus in restricted, shared spaces — a smaller player that has carved out a place for itself targeting business users is announcing more funding.

Gett, which started out as a more direct competitor to the likes of Uber and Lyft but now focuses mainly on ground transportation services for business clients in major cities around the world, said in a short statement that it has closed a round of $115 million. The company — co-headquartered in London and Israel — also said it is now “operationally profitable” and is hitting its budget targets.

The funding is being led by new backer Pelham Capital Investments Ltd. and also included participation from unnamed existing investors.

Including this round, Gett has now raised $965 million, with past investors including VW, Access and its founder Len BlavatnikKreos, MCI and more. Gett’s last confirmed valuation was $1.5 billion, pegged to a $200 million fundraise in May 2019. It’s not talking about current valuation, or any recent customer numbers, today.

Dave Waiser, Gett’s founder and CEO, described the funding earlier today in a note to me as an extension to the company’s previous round, a $100 million equity investment that it announced in July last year.

Chairman Amos Genish, said in a statement that the funding round was oversubscribed, “which shows the market’s interest in our platform and long term vision. Gett is disrupting and transforming a fragmented market delivering ever-critical cost optimisation and client satisfaction.”

The company has been building out a focus on the B2B market for several years now — a smart way of avoiding the expensive and painful race to compete like-for-like against the Ubers of the world — and this most recent round (which now totals $215 million) is focused on doubling down on that.

The Gett of the past — it was originally founded in 2010 under the name GetTaxi — did indeed try to build a business around both consumers and higher-end users, but the idea behind Gett today is to focus on corporate accounts.

Gett provides those businesses’ employees with a predictable and reliable app-based platform to make it easier to order car services wherever they happen to be traveling, and those businesses — which in the past would have used a fragmented mix of local services — then have a consolidated way of managing, accounting for and analysing those travel expenses. It claims to be able to save companies some 25-40% in costs.

The company previously said that its network covered some 1,500 cities. In certain metropolitan areas like London and Moscow, Gett provides transportation services directly. In markets where it does not have direct operations (such as anywhere in the U.S., including New York), it partners with third parties, such as Lyft.

“We are on a journey to transform corporate ground travel and I’m delighted that investors find our model attractive,” Waiser said in a statement today. “This investment will allow us to further develop our SaaS technology and deepen our proposition within the corporate ground travel market.”

Posted Under: Tech News
Slim.ai announces $6.6M seed to build container DevOps platform

Posted by on 12 January, 2021

This post was originally published on this site

We are more than seven years into the notion of modern containerization, and it still requires a complex set of tools and a high level of knowledge on how containers work. The DockerSlim open source project developed several years ago from a desire to remove some of that complexity for developers.

Slim.ai, a new startup that wants to build a commercial product on top of the open source project, announced a $6.6 million seed round today from Boldstart Ventures, Decibel Partners, FXP Ventures and TechAviv Founder Partners.

Company co-founder and CEO John Amaral says he and fellow co-founder and CTO Kyle Quest have worked together for years, but it was Quest who started and nurtured DockerSlim. “We started coming together around a project that Kyle built called DockerSlim. He’s the primary author, inventor and up until we started doing this company, the sole proprietor of that of that community,” Amaral explained.

At the time Quest built DockerSlim in 2015, he was working with Docker containers and he wanted a way to automate some of the lower level tasks involved in dealing with them. “I wanted to solve my own pain points and problems that I had to deal with, and my team had to deal with dealing with containers. Containers were an exciting new technology, but there was a lot of domain knowledge you needed to build production-grade applications and not everybody had that kind of domain expertise on the team, which is pretty common in almost every team,” he said.

He originally built the tool to optimize container images, but he began looking at other aspects of the DevOps lifecycle including the author, build, deploy and run phases. He found as he looked at that, he saw the possibility of building a commercial company on top of the open source project.

Quinn says that while the open source project is a starting point, he and Amaral see a lot of areas to expand. “You need to integrate it into your developer workflow and then you have different systems you deal with, different container registries, different cloud environments and all of that. […] You need a solution that can address those needs and doing that through an open source tool is challenging, and that’s where there’s a lot of opportunity to provide premium value and have a commercial product offering,” Quinn explained.

Ed Sim, founder and general partner at Boldstart Ventures, one of the seed investors sees a company bringing innovation to an area of technology where it has been lacking, while putting some more control in the hands of developers. “Slim can shift that all left and give developers the power through the Slim tools to answer all those questions, and then, boom, they can develop containers, push them into production and then DevOps can do their thing,” he said.

They are just 15 people right now including the founders, but Amaral says building a diverse and inclusive company is important to him, and that’s why one of his early hires was head of culture. “One of the first two or three people we brought into the company was our head of culture. We actually have that role in our company now, and she is a rock star and a highly competent and focused person on building a great culture. Culture and diversity to me are two sides of the same coin,” he said.

The company is still in the very early stages of developing that product. In the meantime, they continue to nurture the open source project and to build a community around that. They hope to use that as a springboard to build interest in the commercial product, which should be available some time later this year.

Posted Under: Tech News
Cockroach Labs scores $160M Series E on $2B valuation

Posted by on 12 January, 2021

This post was originally published on this site

Cockroach Labs, makers of CockroachDB, have been on a fundraising roll for the last couple of years. Today the company announced a $160 million Series E on a fat $2 billion valuation. The round comes just eight months after the startup raised an $86.6 million Series D.

The latest investment was led by Altimeter Capital with participation from new investors Greenoaks and Lone Pine along with existing investors Benchmark, Bond, FirstMark, GV, Index Ventures and Tiger Global. The round doubled the company’s previous valuation and increased the amount raised to $355 million.

Co-founder and CEO Spenser Kimball says that the company’s revenue more than doubled in 2020 in spite of COVID, and that caught the attention of investors. He attributed this paradoxical rise to the rapid shift to the cloud brought on by the pandemic that many people in the industry have seen.

“People became more aggressive with what was already underway, a real move to embrace the cloud to build the next generation of applications and services, and that’s really fundamentally where we are,” Kimball told me.

As that happened, the company began a shift in thinking. While it has embraced an open source version of CockroachDB along with a 30-day free trial on the company’s cloud service as ways to attract new customers to the top of the funnel, it wants to try a new approach.

In fact, it plans to replace the 30 day trial with a newer version later this year without any time limits. It believes this will attract more developers to the platform and enable them to see the full set of features without having to enter credit card information. What’s more, by taking this approach it should end up costing the company less money to support the free tier.

“What we expect is that you can do all kinds of things on that free tier. You can do a hackathon, any kind of hobby project […] or even a startup that has ambitions to be the next DoorDash or Airbnb,” he said. As he points out, there’s a point where early stage companies don’t have many users, and can remain in the free tier until they achieve product-market fit.

“That’s when they put a credit card down, and they can extend beyond the free tier threshold and pay for what they use,” he said. The newer free tier is still in the beta testing phase, but will be rolled out during this year.

Kimball says that company wasn’t necessarily looking to raise, although he knew that it would continue to need more cash on the balance sheet to run with giant competitors like Oracle, AWS and the other big cloud vendors, along with a slew of other database startups. As the company’s revenue grows, he certainly sees an IPO in its future, but he doesn’t see it happening this year.

The startup ended the year with 200 employees and Kimball expects to double that by the end of this year. He says growing a diverse group of employees takes good internal data and building a welcoming and inclusive culture.

“I think the starting point for anything you want to optimize in a business is to make sure that you have the metrics in front of you, and that you’re constantly looking at them […] in order to measure how you’re doing,” he explained.

He added, “The thing that we’re most focused on in terms of action is really building the culture of the company appropriately and that’s something we’ve been doing for all six years we’ve been around. To the extent that you have an inclusive environment where people actually really view the value of respect, that helps with diversity.”

Kimball says he sees a different approach to running the business when the pandemic ends with some small percentage going into the office regularly and others coming for quarterly visits, but he doesn’t see a full return to the office post-pandemic.

Posted Under: Tech News
Extra Crunch roundup: 2 VC surveys, Tesla’s melt up, The Roblox Gambit, more

Posted by on 8 January, 2021

This post was originally published on this site

This has been quite a week.

Instead of walking backward through the last few days of chaos and uncertainty, here are three good things that happened:

  • Google employee Sara Robinson combined her interest in machine learning and baking to create AI-generated hybrid treats.
  • A breakthrough could make water desalination 30%-40% more effective.
  • Bianca Smith will become the first Black woman to coach a professional baseball team.

Despite many distractions in our first full week of the new year, we published a full slate of stories exploring different aspects of entrepreneurship, fundraising and investing.

We’ve already gotten feedback on this overview of subscription pricing models, and a look back at 2020 funding rounds and exits among Israel’s security startups was aimed at our new members who live and work there, along with international investors who are seeking new opportunities.

Plus, don’t miss our first investor surveys of 2021: one by Lucas Matney on social gaming, and another by Mike Butcher that gathered responses from Portugal-based investors on a wide variety of topics.

Thanks very much for reading Extra Crunch this week. I hope we can all look forward to a nice, boring weekend with no breaking news alerts.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist


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The Roblox Gambit

In February 2020, gaming platform Roblox was valued at $4 billion, but after announcing a $520 million Series H this week, it’s now worth $29.5 billion.

“Sure, you could argue that Roblox enjoyed an epic 2020, thanks in part to COVID-19,” writes Alex Wilhelm this morning. “That helped its valuation. But there’s a lot of space between $4 billion and $29.5 billion.”

Alex suggests that Roblox’s decision to delay its IPO and raise an enormous Series H was a grandmaster move that could influence how other unicorns will take themselves to market. “A big thanks to the gaming company for running this experiment for us.”

I asked him what inspired the headline; like most good ideas, it came to him while he was trying to get to sleep.

“I think that I had “The Queen’s Gambit somewhere in my head, so that formed the root of a little joke with myself. Roblox is making a strategic wager on method of going public. So, ‘gambit’ seems to fit!”

8 investors discuss social gaming’s biggest opportunities

girl playing games on desktop computer

Image Credits: Erik Von Weber (opens in a new window) / Getty Images

For our first investor survey of the year, Lucas Matney interviewed eight VCs who invest in massively multiplayer online games to discuss 2021 trends and opportunities:

  • Hope Cochran, Madrona Venture Group
  • Daniel Li, Madrona Venture Group
  • Niko Bonatsos, General Catalyst
  • Ethan Kurzweil, Bessemer Venture Partners
  • Sakib Dadi, Bessemer Venture Partners
  • Jacob Mullins, Shasta Ventures
  • Alice Lloyd George, Rogue
  • Gigi Levy-Weiss, NFX

Having moved far beyond shooters and sims, platforms like Twitch, Discord and Fortnite are “where culture is created,” said Daniel Li of Madrona.

Rep. Alexandria Ocasio-Cortez uses Twitch to explain policy positions, major musicians regularly perform in-game concerts on Fortnite and in-game purchases generated tens of billions last year.

“Gaming is a unique combination of science and art, left and right brain,” said Gigi Levy-Weiss of NFX. “It’s never just science (i.e., software and data), which is why many investors find it hard.”

How to convert customers with subscription pricing

Giant hand and magnet picking up office and workers

Image Credits: C.J. Burton (opens in a new window) / Getty Images

Startups that lack insight into their sales funnel have high churn, low conversion rates and an inability to adapt or leverage changes in customer behavior.

If you’re hoping to convert and retain customers, “reinforcing your value proposition should play a big part in every level of your customer funnel,” says Joe Procopio, founder of Teaching Startup.

What is up with Tesla’s value?

Elon Musk, founder of SpaceX and chief executive officer of Tesla Inc., arrives at the Axel Springer Award ceremony in Berlin, Germany, on Tuesday, Dec. 1, 2020. Tesla Inc. will be added to the S&P 500 Index in one shot on Dec. 21, a move that will ripple through the entire market as money managers adjust their portfolios to make room for shares of the $538 billion company. Photographer: Liesa Johannssen-Koppitz/Bloomberg via Getty Images

Image Credits: Bloomberg (opens in a new window) / Getty Images

Alex Wilhelm followed up his regular Friday column with another story that tries to find a well-grounded rationale for Tesla’s sky-high valuation of approximately $822 billion.

Meanwhile, GM just unveiled a new logo and tagline.

As ever, I learned something new while editing: A “melt up” occurs when investors start clamoring for a particular company because of acute FOMO (the fear of missing out).

Delivering 500,000 cars in 2020 was “impressive,” says Alex, who also acknowledged the company’s ability to turn GAAP profits, but “pride cometh before the fall, as does a melt up, I think.”

Note: This story has Alex’s original headline, but I told him I would replace the featured image with a photo of someone who had very “richest man in the world” face.

How Segment redesigned its core systems to solve an existential scaling crisis

Abstract glowing grid and particles

Image Credits: piranka / Getty Images

On Tuesday, enterprise reporter Ron Miller covered a major engineering project at customer data platform Segment called “Centrifuge.”

“Its purpose was to move data through Segment’s data pipes to wherever customers needed it quickly and efficiently at the lowest operating cost,” but as Ron reports, it was also meant to solve “an existential crisis for the young business,” which needed a more resilient platform.

Dear Sophie: Banging my head against the wall understanding the US immigration system

Image Credits: Sophie Alcorn

Dear Sophie:

Now that the U.S. has a new president coming in whose policies are more welcoming to immigrants, I am considering coming to the U.S. to expand my company after COVID-19. However, I’m struggling with the morass of information online that has bits and pieces of visa types and processes.

Can you please share an overview of the U.S. immigration system and how it works so I can get the big picture and understand what I’m navigating?

— Resilient in Romania

The first “Dear Sophie” column of each month is available on TechCrunch without a paywall.

Revenue-based financing: The next step for private equity and early-stage investment

Shot of a group of people holding plants growing out of soil

Image Credits: Hiraman (opens in a new window) / Getty Images

For founders who aren’t interested in angel investment or seeking validation from a VC, revenue-based investing is growing in popularity.

To gain a deeper understanding of the U.S. RBI landscape, we published an industry report on Wednesday that studied data from 134 companies, 57 funds and 32 investment firms before breaking out “specific verticals and business models … and the typical profile of companies that access this form of capital.”

Lisbon’s startup scene rises as Portugal gears up to be a European tech tiger

Man using laptop at 25th of April Bridge in Lisbon, Portugal

Image Credits: Westend61 (opens in a new window)/ Getty Images

Mike Butcher continues his series of European investor surveys with his latest dispatch from Lisbon, where a nascent startup ecosystem may get a Brexit boost.

Here are the Portugal-based VCs he interviewed:

  • Cristina Fonseca, partner, Indico Capital Partners
  • Pedro Ribeiro Santos, partner, Armilar Venture Partners
  • Tocha, partner, Olisipo Way
  • Adão Oliveira, investment manager, Portugal Ventures
  • Alexandre Barbosa, partner, Faber
  • António Miguel, partner, Mustard Seed MAZE
  • Jaime Parodi Bardón, partner, impACT NOW Capital
  • Stephan Morais, partner, Indico Capital Partners
  • Gavin Goldblatt, managing partner, Portugal Gateway

How late-stage edtech companies are thinking about tutoring marketplaces

Life Rings flying out beneath storm clouds are a metaphor for rescue, help and aid.

Image Credits: John Lund (opens in a new window)/ Getty Images

How do you scale online tutoring, particularly when demand exceeds the supply of human instructors?

This month, Chegg is replacing its seven-year-old marketplace that paired students with tutors with a live chatbot.

A spokesperson said the move will “dramatically differentiate our offerings from our competitors and better service students,” but Natasha Mascarenhas identified two challenges to edtech automation.

“A chatbot won’t work for a student with special needs or someone who needs to be handheld a bit more,” she says. “Second, speed tutoring can only work for a specific set of subjects.”

Decrypted: How bad was the US Capitol breach for cybersecurity?

Image Credits: Treedeo (opens in a new window) / Getty Images

While I watched insurrectionists invade and vandalize the U.S. Capitol on live TV, I noticed that staffers evacuated so quickly, some hadn’t had time to shut down their computers.

Looters even made off with a laptop from Senator Jeff Merkley’s office, but according to security reporter Zack Whittaker, the damages to infosec wasn’t as bad as it looked.

Even so, “the breach will likely present a major task for Congress’ IT departments, which will have to figure out what’s been stolen and what security risks could still pose a threat to the Capitol’s network.”

Extra Crunch’s top 10 stories of 2020

On New Year’s Eve, I made a list of the 10 “best” Extra Crunch stories from the previous 12 months.

My methodology was personal: From hundreds of posts, these were the 10 I found most useful, which is my key metric for business journalism.

Some readers are skeptical about paywalls, but without being boastful, Extra Crunch is a premium product, just like Netflix or Disney+. I know, we’re not as entertaining as a historical drama about the reign of Queen Elizabeth II or a space western about a bounty hunter. But, speaking as someone who’s worked at several startups, Extra Crunch stories contain actionable information you can use to build a company and/or look smart in meetings — and that’s worth something.

Posted Under: Tech News
F5 snags Volterra multi-cloud management startup for $500M

Posted by on 7 January, 2021

This post was originally published on this site

F5, the applications networking company announced today that it is acquiring Volterra, a multi-cloud management startup for $500 million. That breaks down to $440 million in cash and $60 million in deferred and unvested incentive compensation.

Volterra emerged in 2019 with a $50 million investment from multiple sources including Khosla Ventures and Mayfield along with strategic investors like M12 (Microsoft’s venture arm) and Samsung Ventures. As the company described it to me at the time of the funding:

Volterra has innovated a consistent, cloud-native environment that can be deployed across multiple public clouds and edge sites — a distributed cloud platform. Within this SaaS-based offering, Volterra integrates a broad range of services that have normally been siloed across many point products and network or cloud providers.

The solution is designed to provide a single way to view security, operations and management components.

F5 president and CEO François Locoh-Donou sees Volterra’s edge solution integrating across its product line. “With Volterra, we advance our Adaptive Applications vision with an Edge 2.0 platform that solves the complex multi-cloud reality enterprise customers confront. Our platform will create a SaaS solution that solves our customers’ biggest pain points,” he said in a statement.

Volterra founder and CEO Ankur Singla, writing in a company blog post announcing the deal, says the need for this solution only accelerated during 2020 when companies were shifting rapidly to the cloud due to the pandemic. “When we started Volterra, multi-cloud and edge were still buzzwords and venture funding was still searching for tangible use cases. Fast forward three years and COVID-19 has dramatically changed the landscape — it has accelerated digitization of physical experiences and moved more of our day-to-day activities online. This is causing massive spikes in global Internet traffic while creating new attack vectors that impact the security and availability of our increasing set of daily apps,” he wrote.

He sees Volterra’s capabilities fitting in well with the F5 family of products to help solve these issues. While F5 had a quiet 2020 on the M&A front, today’s purchase comes on top of a couple of major acquisitions in 2019 including Shape Security for $1 billion and NGINX for $670 million.

The deal has been approved by both companies boards, and is expected to close before the end of March subject to regulatory approvals.

Posted Under: Tech News
RedHat is acquiring container security company StackRox

Posted by on 7 January, 2021

This post was originally published on this site

RedHat today announced that it’s acquiring container security startup StackRox . The companies did not share the purchase price.

RedHat, which is perhaps best known for its enterprise Linux products has been making the shift to the cloud in recent years. IBM purchased the company in 2018 for a hefty $34 billion and has been leveraging that acquisition as part of a shift to a hybrid cloud strategy under CEO Arvind Krishna.

The acquisition fits nicely with RedHat OpenShift, its container platform, but the company says it will continue to support StackRox usage on other platforms including AWS, Azure and Google Cloud Platform. This approach is consistent with IBM’s strategy of supporting multi-cloud, hybrid environments.

In fact, Red Hat president and CEO Paul Cormier sees the two companies working together well. “Red Hat adds StackRox’s Kubernetes-native capabilities to OpenShift’s layered security approach, furthering our mission to bring product-ready open innovation to every organization across the open hybrid cloud across IT footprints,” he said in a statement.

CEO Kamal Shah, writing in a company blog post announcing the acquisition, explained that the company made a bet a couple of years ago on Kubernetes and it has paid off. “Over two and half years ago, we made a strategic decision to focus exclusively on Kubernetes and pivoted our entire product to be Kubernetes-native. While this seems obvious today; it wasn’t so then. Fast forward to 2020 and Kubernetes has emerged as the de facto operating system for cloud-native applications and hybrid cloud environments,” Shah wrote.

Shah sees the purchase as a way to expand the company and the road map more quickly using the resources of Red Hat (and IBM), a typical argument from CEOs of smaller acquired companies. But the trick is always finding a way to stay relevant inside such a large organization.

StackRox’s acquisition is part of some consolidation we have been seeing in the Kubernetes space in general and the security space more specifically. That includes Palo Alto Networks acquiring competitor TwistLock for $410 million in 2019. Another competitor, Aqua Security, which has raised $130 million, remains independent.

StackRox was founded in 2014 and raised over $65 million, according to Crunchbase data. Investors included Menlo Ventures, Redpoint and Sequoia Capital. The deal is expected to close this quarter subject to normal regulatory scrutiny.

Posted Under: Tech News
Glia raises $78M for its integrated, hands-on, AI-based customer service platform

Posted by on 7 January, 2021

This post was originally published on this site

The ongoing push for social distancing to slow the spread of Covid-19 has meant that more people than ever before are using internet-based services to get things done. And that is having a direct impact on digital customer service, which is seeing unprecedented traffic and demands when things are not running smoothly. Today, one of the startups that’s built an interesting, very “hands-on” approach to addressing that problem is announcing a round of funding to expand its business.

Glia, which has built a platform that not only integrates and helps manage different customer support channels, but also provides tools to help agents proactively get into a customer’s app or web page to help them find things or fix issues, is today announcing that it has picked up $78 million, a Series C. Dan Michaeli, the co-founder and CEO who is based out of New York (the company has a substantial operation in Estonia too), said will be used to continue developing its technology and expanding to address inbound interest for its services after seeing its revenues grow by 150% in 2020.

The company’s original focus was around financial services and it counts a large base of customers in that area, but it is also seeing a lot of activity in adjacent industries like insurance, as well as education, retail and other categories Michaeli said.

“We’ve had overwhelming demand and it’s incredible to see how businesses want to adopt us right now,” he said in an interview. “The plan is to significantly scale up and continue to define and meet that demand for digital customer service.” The company is likely also to use some of the funding for acquisitions in what appears to be a rapidly consolidating market.

The round is being led by Insight Partners, with Don Brown (an entrepreneur in the world of customer service, with his company Interactive Intelligence acquired by Genesys for $1.4 billion) also participating.

Glia isn’t disclosing other investors, but past backers include Tola Capital, Temerity Capital, Grassy Creek and Wildcat Capital, as well as Insight. Prior to this, the company, which has been around since 2012 and was previously known as Salemove, had raised just $28 million and its valuation was a modest $69 million according to PitchBook data (and it’s not disclosing valuation today).

While there are a lot of customer service startups in the market today, and a number of them are seeing huge boosts in their business, and even some consolidation as others snap up tech to make sure they have their own customer service strategies going in the right direction. (Witness Facebook of all companies acquiring omnichannel customer support and CRM leader Kustomer for $1 billion in November.)

Glia is not unlike many of the new guard of these companies, in that its focus is very squarely on providing a platform to be able to manage and interact across whatever digital channel a customer happens to be using. Glia, I should point out, means “glue” in Greek.

What makes Glia quite interesting and different from these are some of the twists it uses to engage with users. One of these involves being able to give agents the ability to actually get on the screen of the user in question, in order to both guide the user around the screen, and to see what the user is doing on that screen.

To be clear, the connection and ability to track what the user is doing is just on the screen in question, and it’s done with the user’s awareness of what is going on. In the demo of the service that I went through, it’s a very smooth service, which reminded me just a little of things like Clippy on Microsoft Word.

Alongside this, Glia provides tools to agents to let coach them on questions to ask, phrasing to use, and links for answers, and Glia also develops virtual customer service assistants, to help with more basic questions. These also have the ability to interact with people’s screens when they make contact with a company. This in effect sees the company combining a number of technologies in one place, from natural language to suggest (and in some cases run) customer service responses, through to computer vision to help detect what is going on on the remote screen, through to more fundamental CRM technology to run those services across multiple platforms.

While screen sharing has been a well-used tool in other areas — for example in workforce collaboration environments, or for presenting online — Glia is seen as one of the pioneers in leveraging that for customer service. For investors, the interest in Glia has been to tap into that.

“We are proud to expand our investment in Glia as the company continues to lead the evolution of Digital Customer Service for businesses across the globe,” said Lonne Jaffe, managing director at Insight Partners, in a statement. “Glia’s platform provides the modern technology necessary for businesses to meet customers in their digital journeys and communicate through the customer’s channel of choice. With this capital, the company will continue to scale and keep up with skyrocketing demand.”

We are in a key moment of digital transformation in customer services. Surprisingly, there are still many who opt for calling in to ask questions, but as Michaeli noted, these days, even when they are still using phones, customers will do so with “their screens in front of them.”

Brown believes that this is the other opportunity to seize. “Many companies are still focused on moving antiquated, on-premises telephony systems to cloud contact centers that essentially offer the same functionality,” he said in a statement. “Instead, businesses can leapfrog this process and move directly to a digital-first cloud approach by partnering with Glia. If I were to build Interactive Intelligence for today’s contact center, I would take Glia’s approach.”

Posted Under: Tech News
Lacework lands $525M investment as revenue grows 300%

Posted by on 7 January, 2021

This post was originally published on this site

As the pandemic took hold in 2020, companies accelerated their move to cloud services. Lacework, the cloud security startup, was in the right place at the right time as customers looked for ways to secure their cloud native workloads. The company reported that revenue grew 300% year over year for the second straight year.

It was rewarded for that kind of performance with a $525 million Series D today. It did not share an exact valuation, only saying that it exceeded $1 billion, which you would expect on such a hefty investment. Sutter Hill and Altimeter Capital led the round with help from D1 Capital Management, Coatue, Dragoneer Investment Group, Liberty Global Ventures, Snowflake Ventures and Tiger Global Management. The company has now raised close to $600 million.

Lacework CEO Dan Hubbard says one of the reasons for such widespread interest from investors is the breadth of the company’s security solution. “We enable companies to build securely in the cloud, and we span across multiple different categories of markets, which enable the customers to do that,” he said.

He says that encompasses a range of services including configuration and compliance, security for infrastructure as code, build time and runtime vulnerability scanning and runtime security for cloud native environments like Kubernetes and containers.

As the company has grown revenue, it has been adding employees quickly. It started the year with 92 employees and closed with over 200 with plans to double that by the end of this year. As he looks at hiring, Hubbard is aware of the need to build a diverse organization, but acknowledges that tech in general hasn’t done a great job so far.

He says they are working with the various teams inside the company to try and change that, while also working to support outside organizations that are helping educate under represented groups to get the skills they need and then building from that. “If you can help solve the problem at an earlier stage, then I think you’ve got a bigger opportunity [to have a base of people to hire] there,” he said.

The company was originally nurtured inside Sutter Hill and is built on top of the Snowflake platform. It reports that $20 million of today’s total comes from Snowflake’s new venture arm, which is putting some money into an early partner.

“We were an alpha Snowflake customer, and they were an alpha customer of ours. Our platform is built on top of the Snowflake data cloud and their new venture arm has also joined the round with an investment to further strengthen the partnership there,” Hubbard said.

As for Sutter Hill, investor Mike Speiser sees Lacework as one of his firm’s critical investments. “[Much] like Snowflake at a similar point in its evolution, Lacework is growing revenue at over 300% per year making Lacework one of Sutter Hill Ventures’ most important and promising portfolio companies,” he said in a statement.

Posted Under: Tech News
Atlanta’s SalesLoft raises $100M for its digital sales platform, now valued at $1.1B

Posted by on 6 January, 2021

This post was originally published on this site

The Covid-19 pandemic and specifically need for social distancing to slow the spread of the virus have continued to keep many of us away from the office. Now, increasingly, many organizations and people believe that it could usher in a more permanent shift to remote, distributed and virtual work. Today, a startup that has built a set of tools specifically to help salespeople with that change — by way of digital sales — has raised a substantial growth round to meet that demand.

SalesLoft, a sales platform based out of Atlanta, Georgia that provides AI-baseed tools to help salespeople run their sales process virtually — from finding and following up on leads, through to helping them sell with virtual coaching tools, and then assisting in the post-sales process — has closed $100 million in funding.

The company’s co-founder and CEO Kyle Porter confirmed to TechCrunch that the company is now valued at $1.1 billion post-money, a substantial hike on its previous valuation. In April 2019, well before any global health pandemics, the company had raised a Series D of $70 million at around a $600 million valuation (a figure we confirmed at the time with sources close to the company).

This latest round is being led by Owl Rock Capital, with previous investors Insight Partners, HarbourVest, and Emergence Capital — a VC focused specifically on enterprise startups, which notably was an early backer of Zoom and many others — also participating.

SalesLoft has now raised some $245 million, an impressive sum for any startup, but also worth pointing out for the fact that its not based out of the Valley but Atlanta, Georgia (a state in the news for other reasons at the moment, as the focus of a hotly contested US Senate runoff election).

The company has been on a growth tear for several years now, as one of the big players in the area of so-called sales engagement: tools to help salespeople sell better to clients (or would-be clients), which can include real-time monitoring of interactions to provide coaching to improve the process, suggestions for supplementary content to enhance the pitch, and more basic software simply to manage records and communications.

Even before the pandemic hit, this was a key growth area in enterprise software, with both in-person and online/digital salespeople relying on these kinds of products to help them get more of an edge with their work, but a lot of the focus had really been on inside sales (B2B sales focusing on bigger purchases). Porter described the effect of Covid-19 as a “tailwind” propelling that already strong trend.

“The effects of Covid have been a tailwind due to the effects of digital selling,” he said. “All sellers immediately became remote. But now the genie is out of the bottle and not going back in. It’s meant that inside sales are now all sales. Whether the opportunities are mid-funnel or upgrades or renewals, we are establishing ourselves as the engagement platform of record because it’s all becoming digital and all sellers are finding more success.”

He added that SalesLoft’s own sales cycle has improved by 40% since the pandemic, a reflection, he said, of the “urgency and need” for tools like those that the startup develops.

Another shift has been in terms of the kinds of customers SalesLoft works with. The company originally was focused on the mid-market, but that has changed with more larger enterprises also coming on board. Google, LinkedIn (which backs SalesLoft and is in a strategic partnership with it), Cisco, Dell and IBM are all customers, and Porter said that more “mainstream” businesses like Cargil, 3M and Standard & Poor are also increasingly becoming clients.

That is leading the startup to building out bigger solutions, beyond the basic pitch of “sales engagement” that has been SalesLoft’s mainstay up to now. The company competes against a plethora of others including of ClariChorus.aiGongConversicaAfiniti and Outreach, as well as biggies like Salesforce. Porter notes that its big selling point is that it offers an increasingly end-to-end sales solution to customers, meaning less shopping around.

“Building high quality pipeline requires a tight partnership between marketing and sales,” said Alison Wagonfeld, CMO of Google Cloud, in a statement. “SalesLoft has helped us align around efficiency in our process and consistency in prospect experience, and we are excited to continue growing with them as a partner.”

Posted Under: Tech News
How Segment redesigned its core systems to solve an existential scaling crisis

Posted by on 5 January, 2021

This post was originally published on this site

Segment, the startup Twilio bought last fall for $3.2 billion, was just beginning to take off in 2015 when it ran into a scaling problem: It was growing so quickly, the tools it had built to process marketing data on its platform were starting to outgrow the original system design.

Inaction would cause the company to hit a technology wall, managers feared. Every early-stage startup craves growth and Segment was no exception, but it also needed to begin thinking about how to make its data platform more resilient or reach a point where it could no longer handle the data it was moving through the system. It was — in a real sense — an existential crisis for the young business.

The project that came out of their efforts was called Centrifuge, and its purpose was to move data through Segment’s data pipes to wherever customers needed it quickly and efficiently at the lowest operating cost.

Segment’s engineering team began thinking hard about what a more robust and scalable system would look like. As it turned out, their vision would evolve in a number of ways between the end of 2015 and today, and with each iteration, they would take a leap in terms of how efficiently they allocated resources and processed data moving through its systems.

The project that came out of their efforts was called Centrifuge, and its purpose was to move data through Segment’s data pipes to wherever customers needed it quickly and efficiently at the lowest operating cost. This is the story of how that system came together.

Growing pains

The systemic issues became apparent the way they often do — when customers began complaining. When Tido Carriero, Segment’s chief product development officer, came on board at the end of 2015, he was charged with finding a solution. The issue involved the original system design, which like many early iterations from startups was designed to get the product to market with little thought given to future growth and the technical debt payment was coming due.

“We had [designed] our initial integrations architecture in a way that just wasn’t scalable in a number of different ways. We had been experiencing massive growth, and our CEO [Peter Reinhardt] came to me maybe three times within a month and reported various scaling challenges that either customers or partners of ours had alerted him to,” said Carriero.

The good news was that it was attracting customers and partners to the platform at a rapid clip, but it could all have come crashing down if the company didn’t improve the underlying system architecture to support the robust growth. As Carriero reports, that made it a stressful time, but having come from Dropbox, he was actually in a position to understand that it’s possible to completely rearchitect the business’s technology platform and live to tell about it.

“One of the things I learned from my past life [at Dropbox] is when you have a problem that’s just so core to your business, at a certain point you start to realize that you are the only company in the world kind of experiencing this problem at this kind of scale,” he said. For Dropbox that was related to storage, and for Segment it was processing large amounts of data concurrently.

In the build-versus-buy equation, Carriero knew that he had to build his way out of the problem. There was nothing out there that could solve Segment’s unique scaling issues. “Obviously that led us to believe that we really need to think about this a little bit differently, and that was when our Centrifuge V2 architecture was born,” he said.

Building the imperfect beast

The company began measuring system performance, at the time processing 8,442 events per second. When it began building V2 of its architecture, that number had grown to an average of 18,907 events per second.

Posted Under: Tech News
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