Vdoo raises $25M more to develop its AI-based security for IoT and connected devices

Posted by on 13 January, 2021

This post was originally published on this site

It’s estimated that there were some 50 billion connected devices globally in 2020, and while that really says a lot about how far we’ve come in tech, for many it also speaks to a big issue: security vulnerabilities, with the devices themselves, plus all the components and services running on them, all potential targets for anything from malicious hackers to not-so-intentional data leaks.

Today, an Israeli startup Vdoo — which has been developing AI-based services to detect and fix those kinds of vulnerabilities in IoT devices — is announcing $25 million in funding, money that it plans to use to help it better address the wider issue as it applies to all connected objects. With its initial focus on large industrial deployments, medical systems, communications infrastructure and automotive, Vdoo also looking more deeply now at the wider network of devices that use communications chips, providing quick (as in minutes) assessments to identify and remediate or directly fix various issues: it cites zero-day vulnerabilities, CVEs, configuration and hardening issues, and standard incompliances among them.

The funding — an extension to the $32 million round that Vdoo announced in April 2019 — is coming from two investors, Israel’s Qumra Capital and Verizon Ventures (the investing arm of Verizon, which — by way of its acquisition of Aol many years ago — also owns TechCrunch).

Verizon’s interest in Vdoo is strategic and speaks to the opportunity in the market. As CEO Netanel Davidi (who co-founded the company with Uri Alter and Asaf Karas) describes it, operators like Verizon are interested because of their role as a distributer and reseller of hardware as part of their wider services play, be it for broadband access, or a telematics service, or something for the connected home or connected office.

“They sell connected devices to enterprises and home users that are not made by them, yet the carriers are responsible for the security,” he said, “so the solution is to bake that into devices” to make it work more seamlessly, he said.

Verizon is not the startup’s only strategic backer. Others in the first tranche of this round included another carrier, Japan’s NTT Docomo, MS&AD Ventures (the venture arm of the global cyber insurance firm) and Dell Technology Capital, the VC arm of Dell.

The company has now raised around $70 million, and while it’s not disclosing valuation, Davidi confirmed that it has more than doubled this year.

(In April 2019, PitchBook estimated that it was just under $100 million, which would make it now at over $200 million if that figure is accurate.)

Davidi said that the decision to raise this money as an extension to the previous round rather than a new round was strategic: it gave the company the chance to raise funding more quickly, and to take more time to prepare for a bigger funding round in the near future.

And the reason for raising quickly was to address what was a quickly moving target: one of the by-products of the Covid-19 pandemic has been a dramatic shift to people working from home, buying new devices to enable that and in general using their communications networks much more heavily than before.

Connected device security typically focuses on monitoring activity on the hardware, how data is moving in and out of them. Vdoo’s approach has been to build a platform that monitors the behavior of the devices themselves, using AI to compare that behavior to identify when something is not working as it should. 

“For any kind of vulnerability, using deep binary analysis capabilities, we try to understand the broader idea, to figure out how a similar vulnerability can emerge,” is how Davidi described the process when we talked about the first part of this round back in 2019.

Vdoo generates specific “tailor-made on-device micro-agents” to continue the detection and repair process, which Davidi likens to a modern approach to some cancer care: preventive measures such as periodic monitoring checks, followed by a “tailored immunotherapy” based on prior analysis of DNA.

Vdoo is a play on the Hebrew word that sounds like “vee-doo” and means “making sure”, and points to the basic idea of how it approaches the verification around its device monitoring. It also feels somewhat like the next step in endpoint security, which was the focus of Davidi and Alter’s previous startup, Cyvera, which was eventually acquired by Palo Alto Networks.

The focus on devices, in some ways, is a significantly more complex approach given that it’s not just about the device, but the many components that go into them. As we have seen with Meltdown and Spectre, vulnerabilities might exist at the processor level.

And as Davidi pointed out to me this week, at times those issues aren’t even intentional but still mean data can leak out, and at worst that can be exploitable by bad actors.

“Backdoors are being built into many devices, and some are not even intentional,” he said. “It may be that the developer wanted to create a shortcut to make something else easier in the future. Some will see that as a back door, and some will not.”

The fractal-like nature of the issue what Vdoo is digging into with its widening approach.

“Initially we wanted to serve the ecosystem of manufacturers, since they are the cause of the problem and the origin of the security issues,” he said. “We started there with Fortune 500 customers in areas like automotive and industrial and medical and telco and aviation. The idea was to make a platform that could serve and product security stakeholders. But then we saw that this was a big unserved market.”

Indeed, Vdoo quotes figures from research firm Markets and Markets that forecast that the global device security market will grow to $36.6 billion by 2025 from $12.5 billion in 2020.

“The number of connected IoT devices is rapidly growing, creating greater opportunities for security breaches,” said Boaz Dinte, Managing Partner of Qumra Capital, in a statement. “Vdoo’s unique device-centric, deep technology automated approach has already brought immediate value to vendors in a very short period of time. We believe the market opportunity is huge, and with newly infused growth capital, Vdoo is well-positioned to become the leading global player for securing connected devices.”

“With the expansion of 5G networks and mobile edge compute, there’s a need for an end-to-end, device-centric security approach to IoT,” added Verizon Ventures MD Tammy Mahn in a statement. “As the venture arm of a leading telco, Verizon Ventures is proud to invest in  Vdoo and its world-class team on their journey to solve this global need, while ushering in a new era of security by design in our increasingly connected world.”

Posted Under: Tech News
Stacklet raises $18M for its cloud governance platform

Posted by on 13 January, 2021

This post was originally published on this site

Stacklet, a startup that is commercializing the Cloud Custodian open-source cloud governance project, today announced that it has raised an $18 million Series A funding round. The round was led by Addition, with participation from Foundation Capital and new individual investor Liam Randall, who is joining the company as VP of business development. Addition and Foundation Capital also invested in Stacklet’s seed round, which the company announced last August. This new round brings the company’s total funding to $22 million.

Stacklet helps enterprises manage their data governance stance across different clouds, accounts, policies and regions, with a focus on security, cost optimization and regulatory compliance. The service offers its users a set of pre-defined policy packs that encode best practices for access to cloud resources, though users can obviously also specify their own rules. In addition, Stacklet offers a number of analytics functions around policy health and resource auditing, as well as a real-time inventory and change management logs for a company’s cloud assets.

The company was co-founded by Travis Stanfield (CEO) and Kapil Thangavelu (CTO). Both bring a lot of industry expertise to the table. Stanfield spent time as an engineer at Microsoft and leading DealerTrack Technologies, while Thangavelu worked at Canonical and most recently in Amazon’s AWSOpen team. Thangavelu is also one of the co-creators of the Cloud Custodian project, which was first incubated at Capital One, where the two co-founders met during their time there, and is now a sandbox project under the Cloud Native Computing Foundation’s umbrella.

“When I joined Capital One, they had made the executive decision to go all-in on cloud and close their data centers,” Thangavelu told me. “I got to join on the ground floor of that movement and Custodian was born as a side project, looking at some of the governance and security needs that large regulated enterprises have as they move into the cloud.”

As companies have sped up their move to the cloud during the pandemic, the need for products like Stacklets has also increased. The company isn’t naming most of its customers, but it has disclosed FICO a design partner. Stacklet isn’t purely focused on the enterprise, though. “Once the cloud infrastructure becomes — for a particular organization — large enough that it’s not knowable in a single person’s head, we can deliver value for you at that time and certainly, whether it’s through the open source or through Stacklet, we will have a story there.” The Cloud Custodian open-source project is already seeing serious use among large enterprises, though, and Stacklet obviously benefits from that as well.

“In just 8 months, Travis and Kapil have gone from an idea to a functioning team with 15 employees, signed early Fortune 2000 design partners and are well on their way to building the Stacklet commercial platform,” Foundation Capital’s Sid Trivedi said. “They’ve done all this while sheltered in place at home during a once-in-a-lifetime global pandemic. This is the type of velocity that investors look for from an early-stage company.”

Looking ahead, the team plans to use the new funding to continue to developed the product, which should be generally available later this year, expand both its engineering and its go-to-market teams and continue to grow the open-source community around Cloud Custodian.

Posted Under: Tech News
‘Brandtech’ company You and Mr. Jones adds $60M to its Series B

Posted by on 12 January, 2021

This post was originally published on this site

You & Mr. Jones announced today that it has added $60 million in new funding from Merian Chrysalis, bringing the Series B round announced in December to a total of $260 million.

The round values the company at $1.36 billion, post-money.

You & Mr. Jones takes its name from CEO David Jones, who founded the company in 2015. After having served as the CEO of ad giant Havas, Jones told me that his goal in starting what he called “a brandtech group” was to provide marketers with something that neither traditional agencies nor technology companies could give them.

“At that moment, the choices were to go work with an agency group, which is great at brand and marketing, but they don’t understanding tech, or with a tech company, which will only ever recommend their platform and don’t have the same [brand and marketing] expertise,” he said.

So You & Mr. Jones has built its own technology platform to help marketers with their digital, mobile and e-commerce needs, while also investing in companies like Pinterest and Niantic. And it makes acquisitions — last year, for example, it bought influencer marketing company Collectively.

You & Mr. Jones has grown to 3,000 employees, and its clients include Unilever, Accenture, Google, Adidas, Marriott and Microsoft. In fact, Jones said that as of the third quarter of 2020, its net revenue had grown 27% year-over-year.

That’s particularly impressive given the impact of the pandemic on ad spending, but Jones said that’s one of the key distinctions between digital advertising and the broader brandtech category, with he said has grown steadily, even during the pandemic, and which also sets the company apart from agencies that are “digital and tech in press release only.”

“We’re not an ad agency, we’ll never acquire agencies,” he said. “We have the technology platform, process and people to deliver all of your end-to-end, always-on content — social, digital, e-commerce, community management.”

In addition to the funding, company is announcing that it has hired Paulette Forte, who was previously senior director of human services at the NBA, as its first chief people officer.

“The Brandtech category didn’t even exist before You & Mr Jones was established,” Forte said in a statement. “The company became a true industry disruptor in short order, and growth has been swift. In order to keep up with the momentum, it’s critical to have systems in place that help talent develop their skills, encourage diversity and creativity, and find pathways to improving workflow. I am excited to join the leadership team to drive this crucial work forward.”

Posted Under: Tech News
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


Full Extra Crunch articles are only available to members
Use discount code ECFriday to save 20% off a one- or two-year subscription


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
Page 3 of 8012345...102030...Last »

Social Media

Bulk Deals

Subscribe for exclusive Deals

Recent Post

Archives

Facebook

Twitter

Subscribe for exclusive Deals




Copyright 2015 - InnovatePC - All Rights Reserved

Site Design By Digital web avenue