SpanIO is looking to upgrade the electrical fusebox for homes with a digital system that integrates into the existing circuit breaker technology that has been the basis for home energy management for at least a century.
Rao and his team are looking to make integrating renewable power, energy storage, and electric vehicles easier for homeowners by redesigning the electrical panel for modern energy needs.
“We packaged the metering controls and compute between the bus bar and the breaker,” says Rao. “Energy flows through the panel through a breaker bar and the breaker bar has tabs that you slot your breakers into… that tab is usually a conductor. We have designed a digital sub-assembly that packages current metering, voltage measurement and ability to turn each circuit on or off.”
The technology is meant to be sold through channels like solar energy installers or battery installers. The company already has plans to integrate its power management devices with energy storage systems like the ones available from LG .
Initially, Span expects to be selling its products in states like California and Hawaii where demand for solar installations is strong and homeowners have significant benefits available to them for installing renewable energy and energy efficiency systems.
For homeowners, the new power management system means that they have control over which parts of the home would be powered in the event of an outage. The company’s technology connects the entire home to a renewable system. Using existing technologies, installers have to set up a separate breaker and rewire certain areas of the home to receive the power generated by a renewable energy system, Rao says.
That control is handled through a consumer app available to download on mobile devices.
SpanIO is backed by a slew of early investors including Wireframe Ventures, Wells Fargo Strategic Capital, Ulu Ventures, Hardware Club, Energy Foundry, Congruent Ventures and 1/0 Capital, and intends to raise fresh cash for before the end of the year. Rao said the round would be “in the low double digits” of millions.
Volta Charging, the San Francisco-based company that combines outdoor digital advertising with charging stations to give electric vehicle owners free power, has added another $20 million in a follow-on to its Series C round.
The company’s Series C round is now closed at $100 million. Schneider Electric Ventures, SK Innovation, Energize Ventures and a number of existing partners participated in the follow-on Series C round. Volta Charging also borrowed $44 million from Energy Impact Partners and CION.
Volta, which launched in 2010, partners with businesses and real estate owners to install EV chargers in high-traffic areas such as grocery stores, entertainment venues and shopping centers. Instead of charging EV owners, the power is provided for free. Volta makes money on the outdoor advertising that is a centerpiece of the charger design.
More than 45 million free electric miles have been given to EV drivers to date, the company said.
The company’s first charging stations popped up in Hawaii. Since then, Volta has expanded to San Diego, Los Angeles, San Francisco and Silicon Valley in California as well as Chicago and its suburbs, Phoenix, and Dallas and Houston.
The funds will be used to expand the company’s network of free, advertiser sponsored charging stations. Volta is focused on adding more chargers to cities where it already has a presence as well as moving into new markets.
“As the electric vehicle industry continues to grow, Volta is well-positioned to build out an economically viable charging network needed to facilitate the shift from gas to electric,” Volta CEO and founder said Scott Mercer said in a statement. “We continue to rapidly scale our business to meet the growing demands of drivers, real estate partners and sponsors. This capital injection will accelerate our mission of mainstreaming electric vehicles.”
Walmart came out swinging earlier this week in a lawsuit that accused Tesla of breach of contract and gross negligence over problems with rooftop solar panel systems installed at the retail giant’s stores.
Now, just days later, the lawsuit has been placed on hold while the two companies try to reach an agreement that would keep the solar installations in place and put them back in service, according to a joint statement issued late Thursday night.
“Walmart and Tesla look forward to addressing all issues and re-energizing Tesla solar installations at Walmart stores, once all parties are certain that all concerns have been addressed,” the statement read. “Together, we look forward to pursuing our mutual goal of a sustainable energy future. Above all else, both companies want each and every system to operate reliably, efficiently, and safely.”
Walmart hasn’t dropped the lawsuit. The complaint is still on file with New York state court. But the two parties are going to try to reach an agreement that would avoid a lawsuit.
The lawsuit, which is aimed at Tesla’s energy unit that was formerly known as SolarCity, alleges that seven fires on Walmart rooftops were caused by the solar panel systems. Walmart asked Tesla to remove the solar panel systems on all 244 stores where they are currently installed and to pay for damages related to fires that the retailer alleges stem from the panels.
Now, a Walmart spokesperson said it is “actively working towards a resolution” with Tesla.
Neither Tesla or Walmart would explain the details of the negotiations.
Tesla’s share of the solar market has declined since its merger with SolarCity in 2016. In the second quarter Tesla deployed only 29 megawatts of new solar installations, while the number one and two providers of consumer solar, SunRun and Vivint Solar, installed 103 megawatts and 56 megawatts, respectively.
Tesla’s renewable energy business includes residential and commercial solar and energy storage products. The company also has a utility-scale energy product called Megapack. While Tesla still produces solar panels for residential use, much of its focus has been on developing its solar roof, which is comprised of tiles. It still operates a commercial business, which targets municipalities, schools, affordable housing, enterprise and agriculture and water districts as customers.
The company doesn’t provide a breakdown of its solar installations, making it difficult to determine if the commercial business is flat, falling or on the rise. Language in its latest 10-Q suggests Tesla is putting a renewed effort into its solar business.
Tesla said it’s working on revamping the customer service experience for solar products, according to the 10-Q. The company said while its retrofit solar system deployments have it expects they “will stabilize and grow in the second half of the year.”
As the technologies that were once considered science fiction become the purview of science, the venture capital firms that were once investing at the industry’s fringes are now finding themselves at the heart of the technology industry.
Investing in the commercialization of technologies like genetic engineering, quantum computing, digital avatars, augmented reality, new human-computer interfaces, machine learning, autonomous vehicles, robots, and space travel that were once considered “frontier” investments are now front-and-center priorities for many venture capital firms and the limited partners that back them.
Earlier this month, Lux Capital raised $1.1 billion across two funds that invest in just these kinds of companies. “[Limited partners] are now more interested in frontier tech than ever before,” said Bilal Zuberi, a partner with the firm.
He sees a few factors encouraging limited partners (the investors who provide financing for venture capital funds) to invest in the firms that are financing companies developing technologies that were once considered outside of the mainstream.
Once considered the most boring of topics, enterprise software is now getting infused with such energy that it is arguably the hottest space in tech.
It’s been a long time coming. And it is the developers, software engineers and veteran technologists with deep experience building at-scale technologies who are energizing enterprise software. They have learned to build resilient and secure applications with open-source components through continuous delivery practices that align technical requirements with customer needs. And now they are developing application architectures and tools for at-scale development and management for enterprises to make the same transformation.
“Enterprise had become a dirty word, but there’s a resurgence going on and Enterprise doesn’t just mean big and slow anymore,” said JD Trask, co-founder of Raygun enterprise monitoring software. “I view the modern enterprise as one that expects their software to be as good as consumer software. Fast. Easy to use. Delivers value.”
The shift to scale out computing and the rise of the container ecosystem, driven largely by startups, is disrupting the entire stack, notes Andrew Randall, vice president of business development at Kinvolk.
In advance of TechCrunch’s first enterprise-focused event, TC Sessions: Enterprise, The New Stack examined the commonalities between the numerous enterprise-focused companies who sponsor us. Their experiences help illustrate the forces at play behind the creation of the modern enterprise tech stack. In every case, the founders and CTOs recognize the need for speed and agility, with the ultimate goal of producing software that’s uniquely in line with customer needs.
We’ll explore these topics in more depth at The New Stack pancake breakfast and podcast recording at TC Sessions: Enterprise. Starting at 7:45 a.m. on Sept. 5, we’ll be serving breakfast and hosting a panel discussion on “The People and Technology You Need to Build a Modern Enterprise,” with Sid Sijbrandij, founder and CEO, GitLab, and Frederic Lardinois, enterprise writer and editor, TechCrunch, among others. Questions from the audience are encouraged and rewarded, with a raffle prize awarded at the end.
Traditional virtual machine infrastructure was originally designed to help manage server sprawl for systems-of-record software — not to scale out across a fabric of distributed nodes. The disruptors transforming the historical technology stack view the application, not the hardware, as the main focus of attention. Companies in The New Stack’s sponsor network provide examples of the shift toward software that they aim to inspire in their enterprise customers. Portworx provides persistent state for containers; NS1 offers a DNS platform that orchestrates the delivery internet and enterprise applications; Lightbend combines the scalability and resilience of microservices architecture with the real-time value of streaming data.
“Application development and delivery have changed. Organizations across all industry verticals are looking to leverage new technologies, vendors and topologies in search of better performance, reliability and time to market,” said Kris Beevers, CEO of NS1. “For many, this means embracing the benefits of agile development in multicloud environments or building edge networks to drive maximum velocity.”
Enterprise software startups are delivering that value, while they embody the practices that help them deliver it.
Speed matters, but only if the end result aligns with customer needs. Faster time to market is often cited as the main driver behind digital transformation in the enterprise. But speed must also be matched by agility and the ability to adapt to customer needs. That means embracing continuous delivery, which Martin Fowler describes as the process that allows for the ability to put software into production at any time, with the workflows and the pipeline to support it.
Continuous delivery (CD) makes it possible to develop software that can adapt quickly, meet customer demands and provide a level of satisfaction with benefits that enhance the value of the business and the overall brand. CD has become a major category in cloud-native technologies, with companies such as CircleCI, CloudBees, Harness and Semaphore all finding their own ways to approach the problems enterprises face as they often struggle with the shift.
“The best-equipped enterprises are those [that] realize that the speed and quality of their software output are integral to their bottom line,” Rob Zuber, CTO of CircleCI, said.
Speed is also in large part why monitoring and observability have held their value and continue to be part of the larger dimension of at-scale application development, delivery and management. Better data collection and analysis, assisted by machine learning and artificial intelligence, allow companies to quickly troubleshoot and respond to customer needs with reduced downtime and tight DevOps feedback loops. Companies in our sponsor network that fit in this space include Raygun for error detection; Humio, which provides observability capabilities; InfluxData with its time-series data platform for monitoring; Epsagon, the monitoring platform for serverless architectures and Tricentis for software testing.
“Customer focus has always been a priority, but the ability to deliver an exceptional experience will now make or break a “modern enterprise,” said Wolfgang Platz, founder of Tricentis, which makes automated software testing tools. “It’s absolutely essential that you’re highly responsive to the user base, constantly engaging with them to add greater value. This close and constant collaboration has always been central to longevity, but now it’s a matter of survival.”
DevOps is a bit overplayed, but it still is the mainstay workflow for cloud-native technologies and critical to achieving engineering speed and agility in a decoupled, cloud-native architecture. However, DevOps is also undergoing its own transformation, buoyed by the increasing automation and transparency allowed through the rise of declarative infrastructure, microservices and serverless technologies. This is cloud-native DevOps. Not a tool or a new methodology, but an evolution of the longstanding practices that further align developers and operations teams — but now also expanding to include security teams (DevSecOps), business teams (BizDevOps) and networking (NetDevOps).
“We are in this constant feedback loop with our customers where, while helping them in their digital transformation journey, we learn a lot and we apply these learnings for our own digital transformation journey,” Francois Dechery, chief strategy officer and co-founder of CloudBees, said. “It includes finding the right balance between developer freedom and risk management. It requires the creation of what we call a continuous everything culture.”
Leveraging open-source components is also core in achieving speed for engineering. Open-source use allows engineering teams to focus on building code that creates or supports the core business value. Startups in this space include Tidelift and open-source security companies such as Capsule8. Organizations in our sponsor portfolio that play roles in the development of at-scale technologies include The Linux Foundation, the Cloud Native Computing Foundation and the Cloud Foundry Foundation.
“Modern enterprises … think critically about what they should be building themselves and what they should be sourcing from somewhere else,” said Chip Childers, CTO of Cloud Foundry Foundation . “Talented engineers are one of the most valuable assets a company can apply to being competitive, and ensuring they have the freedom to focus on differentiation is super important.”
You need great engineering talent, giving them the ability to build secure and reliable systems at scale while also the trust in providing direct access to hardware as a differentiator.
The bleeding edge can bleed too much for the likings of enterprise customers, said James Ford, an analyst and consultant.
“It’s tempting to live by mantras like ‘wow the customer,’ ‘never do what customers want (instead build innovative solutions that solve their need),’ ‘reduce to the max,’ … and many more,” said Bernd Greifeneder, CTO and co-founder of Dynatrace . “But at the end of the day, the point is that technology is here to help with smart answers … so it’s important to marry technical expertise with enterprise customer need, and vice versa.”
How the enterprise adopts new ways of working will affect how startups ultimately fare. The container hype has cooled a bit and technologists have more solid viewpoints about how to build out architecture.
One notable trend to watch: The role of cloud services through projects such as Firecracker. AWS Lambda is built on Firecracker, the open-source virtualization technology, built originally at Amazon Web Services . Firecracker serves as a way to get the speed and density that comes with containers and the hardware isolation and security capabilities that virtualization offers. Startups such as Weaveworks have developed a platform on Firecracker. OpenStack’s Kata containers also use Firecracker.
“Firecracker makes it easier for the enterprise to have secure code,” Ford said. It reduces the surface security issues. “With its minimal footprint, the user has control. It means less features that are misconfigured, which is a major security vulnerability.”
Enterprise startups are hot. How they succeed will determine how well they may provide a uniqueness in the face of the ever-consuming cloud services and at-scale startups that inevitably launch their own services. The answer may be in the middle with purpose-built architectures that use open-source components such as Firecracker to provide the capabilities of containers and the hardware isolation that comes with virtualization.
Hope to see you at TC Sessions: Enterprise. Get there early. We’ll be serving pancakes to start the day. As we like to say, “Come have a short stack with The New Stack!”
NASA and Hewlett Packard Enterprise (HPE) have teamed up to build a new supercomputer, which will serve NASA’s Ames Research Center in California and develop models and simulations of the landing process for Artemis Moon missions.
The new supercomputer is called “Aitken,” named after American astronomer Robert Grant Aitken, and it can run simulations at up to 3.69 petaFLOPs of theoretical performance power. Aitken is custom-designed by HPE and NASA to work with the Ames modular data center, which is a project it undertook starting in 2017 to massively reduce the amount of water and energy used in cooling its supercomputing hardware.
Aitken employs second-generation Intel Xeon processors, Mellanox InfiniBand high-speed networking, and has 221 TB of memory on board for storage. It’s the result of four years of collaboration between NASA and HPE, and it will model different methods of entry, descent and landing for Moon-destined Artemis spacecraft, running simulations to determine possible outcomes and help determine the best, safest approach.
This isn’t the only collaboration between HPE and NASA: The enterprise computer maker built for the agency a new kind of supercomputer able to withstand the rigors of space, and sent it up to the ISS in 2017 for preparatory testing ahead of potential use on longer missions, including Mars. The two partners then opened that supercomputer for use in third-party experiments last year.
HPE also announced earlier this year that it was buying supercomputer company Cray for $1.3 billion. Cray is another long-time partner of NASA’s supercomputing efforts, dating back to the space agency’s establishment of a dedicated computational modeling division and the establishing of its Central Computing Facility at Ames Research Center.
2019 has been a breakout year for podcasting. According to Edison Research’s Infinite Dial report, more than half of Americans have now listened to a podcast, and an estimated 32% listen monthly (up from 26% last year). This is the largest yearly increase since this data started being tracked in 2008. Podcast creation also continues to grow, with more than 700,000 podcasts and 29 million podcast episodes, up 27% from last year.
Thanks to this growing listener base, big companies are finally starting to pay attention to the space — Spotify plans to spend $500 million on acquisitions this year, and already acquired content studio Gimlet, tech platform Anchor, and true crime network Parcast for a combined $400 million. In the past week, Google added playable podcasts to search results, Spotify released an analytics dashboard for podcasters and Pandora launched a tool for podcasters to submit their shows.
We’ve been going to Podcast Movement, the largest annual industry conference, for three years, and have watched the conference grow along with the industry — reaching 3,000 attendees in 2019. Given the increased buzz around the space, we were expecting this year’s conference to have a new level of energy and professionalism, and we weren’t disappointed. We’ve summarized five top takeaways from the conference, from why podcast ads are hard to scale to why so many celebrities are launching their own shows.
We’ve officially entered the age of celebrity podcasters. After early successes like “WTF with Marc Maron” (2009), Alec Baldwin’s “Here’s The Thing” (2011) and Anna Faris’ “Unqualified” (2015), top talent is flooding into the space. In 2017, 15% of Apple’s top 20 most-downloaded podcasts of the year were hosted by celebrities or influencers — this jumped to 32% of the top 25 in 2018. And of all the new shows that launched in 2018, 48% of the top 25 were celebrity-hosted.
Though podcasts are undermonetized compared to other forms of media, talent agents now consider them to be an important part of a well-rounded content strategy. Dan Ferris from CAA tells his clients to think of podcasting as a way of connecting with fans that is “much more intimate than social media.” Podcasts also help celebrities find a new audience. Ben Davis from WME said that while his client David Dobrik has a smaller audience on his podcast than on YouTube (1.5 million downloads per episode versus 6 million views per video), the podcast helps him reach a new group of listeners who stumble upon his show on the Apple Podcast charts.
While some podcast veterans grumble about the rise of celebrity talk shows, famous podcasters are good for the industry as a whole. Advertisers are drawn to the space by the opportunity to get to access A-list talent at lower prices. One recent example is Endeavor Audio’s fiction show “Blackout,” which starred Rami Malek, who was fresh off an Oscar win. Endeavor’s head of sales, Charlie Emerson, said brands might have to sign a “seven or eight-figure deal” to advertise alongside Malek’s content in other forms of media. Other podcasters also benefit from new listeners brought into the medium by their favorite stars — a Westwood One survey in fall 2018 found that 60% of podcast listeners report discovering shows via social media, where celebrities and influencers have huge existing audiences to push content to.
Paid listening apps represent a fairly small percentage of podcast listenership, with production platform Anchor estimating that Apple Podcasts and Spotify control more than 70% of listenership. A venture-backed company called Luminary is trying to change this — it raised $100 million to launch a “Netflix for podcasts” this spring. Consumers pay $7.99/month to access Luminary-exclusive shows alongside podcasts that are free on other apps. Because podcasts have RSS feeds, distributors like Luminary can easily grab free content and put it behind a paywall. The platform, not the creator, benefits from this monetization.
Within days of Luminary’s launch, prominent podcasters and media companies (The New York Times, Gimlet and more) requested their shows be removed from the app. It’s interesting to note that YouTube has a similar premium plan — for $11.99/month, users can access and download ad-free videos. Unlike Luminary, however, YouTube, pays creators a cut of the revenue from these subscriptions based on how frequently their content is viewed.
Unsurprisingly, creator sentiment is more positive toward platforms like Spotify and Pandora . Though these companies do make money from premium subscribers who listen to podcasts, creators can choose whether or not to submit their shows. And podcasters benefit from making their shows discoverable to the existing user base of these platforms, which already dominate “earshare.” Spotify alone has 232 million MAUs, which dwarfs the 90 million people in the U.S. who listen to a podcast monthly.
Podcast ad revenue has been scaling quickly, with $480 million in spend last year and a projected $680 million this year. Over the past four years, ad revenue has scaled at a 65% CAGR, and this growth is expected to continue. In its early days, the podcast ad market has largely been driven by D2C brands — you’ve probably heard hundreds of Casper, Blue Apron and Madison Reed ads. However, bigger brands are also starting to enter podcasting (Geico, Capital One and Progressive made the top 10 list for June 2019) due to the growing audience scale and increased precision around targeting and attribution.
While many attendees were excited by the massive growth in ad revenue, others worried that it may kill what makes podcasting special. They’re particularly concerned that podcasts may go the way of online video, with annoying, generic, low CPM ads. Podcast hosts typically read their own ads, and are often true fans of the product — they share personal stories instead of reciting brand talking points. This results in premium CPMs compared to most digital media — AdvertiseCast’s 2019 survey found an average CPM of $18 for a 30-second podcast ad and $25 for a 60-second ad, more than 2x the average CPM on other digital platforms.
While these ads are effective, they’re time-consuming and expensive to produce. Big brands interested in podcast ads often expect to reuse radio spots — they aren’t used to the process of crafting and approving a host-read ad that may only reach 10,000 listeners. Podcasters, meanwhile, value their trust with listeners and don’t want to spam them with loud, unoriginal radio ads. The tension between maintaining the quality of ads while scaling quantity was an underlying theme of most monetization discussions, and industry veterans disagree on how it will play out.
Despite the growth in ad revenue and relatively high CPMs, the industry is significantly undermonetized. Using data from Nielsen, IAB and Edison, we calculated that podcasts monetize through advertisements at only $0.01 per listener hour — less than 10 times the rate of radio. Podcast monetization per listener hour has increased over the past year, up 25% by our calculations, but still substantially lags all other forms of media.
Why are podcasts so undermonetized? Unlike many other forms of media, the dominant distribution platform (Apple Podcasts) has no ad marketplace. Creators have historically had to approach brands themselves or sign with podcast networks to construct custom ad deals, and the “long tail” of podcasters were unable to monetize. This is finally changing. Anchor, which reported in January that it powers 40% of new podcasts, has an ad marketplace that has doubled the number of podcasts that are running ads. Other popular platforms like Radio Public have launched programs for small podcasters to opt-in to ad placements.
The second major hurdle in monetization is attribution. Podcasts have historically monetized through direct response campaigns — a podcaster provides a special URL or promo code for listeners to use when making a purchase. However, many people listen to podcasts when exercising or driving, and can’t write down the promo code or visit the URL immediately. These listeners might remember the product and make a purchase later, but the podcaster won’t get the attribution. Thomas Mancusi of Audioboom estimated that this happens in 50-60% of purchases driven by podcast ads.
Startups are trying to bring better adtech into podcasting to fix this issue. Chartable is one example — the company installs trackers to match a listener’s IP address with a purchaser’s IP address, allowing podcasters to claim attribution for listeners who don’t use their URL or promo code. Chartable currently runs on 10,000 shows, and the early results are so promising that ad agencies expect to see higher CPMs and significantly more spend in the space.
As podcasting grows, the listener base is diversifying. Edison Research looked into data on “rookie” listeners (listening for six months or less) and “veteran” listeners (listening for 3+ years), and found significant demographic differences. Only 37% of veterans are female, compared to 53% of rookies. While the plurality of veterans (43%) are age 35-54, 54% of rookies are age 12-34. Rookies are also 1.6x more likely to say they most often listen to podcasts on Spotify, Pandora or SoundCloud (43% versus 27% of veterans). And social media is an important way that rookies discover podcasts — 52% have found a podcast from video and 46% from audio on social media, compared to 41% and 37% for veterans.
These new listeners will have a profound impact on the future of podcasting, in both the type of content produced and the way it’s distributed. Industry experts are already noting significant new demand for female-hosted podcasts, as well as audio dramas that appeal to young people looking for a fast-paced, suspenseful story. They’re advising podcasters to share clips of their content on social media, and to leverage broader listening platforms like YouTube and SoundCloud for distribution.
International markets also represent an enormous opportunity for growth. Most podcast listeners today live in the U.S. or China, but content producers are starting to see significant demand elsewhere. Castbox’s Valentina Kaledina said that many fans abroad have resorted to listening in their non-native language, with the top 100 shows in each country comprising a mix of English and local language. Adonde Media’s Martina Castro, who recently conducted the first listener survey on Spanish-language podcast fans, said that 53% of the survey’s 2,100 respondents reported listening to podcasts in English — and only 20% of them use Apple Podcasts.
Larger podcast producers are beginning to translate shows for non-English-speaking markets. Wondery CEO Hernan Lopez announced at the conference that the company’s hit show Dr. Death is now available in seven languages. Lopez noted that it was an expensive process, and he doesn’t expect the shows to generate profit in the near future. However, he believes that Wondery will eventually see a significant return from investing in the development of new podcast markets — and if they do, other podcast companies will likely follow in their footsteps.
Royal Dutch Shell, the energy giant known for its fossil fuel production and hundreds of Shell gas stations, is creeping into the electric vehicle-power business.
The company’s first DC fast charger from its newly acquired company Greenlots launched Monday at a Shell gas station in Singapore. Greenlots, an EV charging startup acquired by Shell in January, installed the charger. This is the first of 10 DC fast chargers that Greenlots plans to bring to Shell service stations in Singapore over the next several months.
The decision to target Singapore is part of Greenlots’ broader strategy to provide EV charging solutions across all applications throughout Asia and North America, the company said. Both Shell and Greenlots have a presence in Singapore. Greenlots, which is based in Los Angeles, was founded in Singapore; and Shell is one of Singapore’s largest foreign investors.
Singapore has been promoting the use of electric vehicles, particularly for car-sharing and ride-hailing platforms. The island city-state has been building up its EV infrastructure to meet anticipated demand as ride-hailing drivers and commercial fleets switch to electric vehicles.
Greenlots was backed by Energy Impact Partners, a cleantech investment firm, before it was acquired by Shell. The company, which combines its management software with the EV charging hardware, has landed some significant customers in recent years, notably Volkswagen. Greenlots is the sole software provider to Electrify America, the entity set up by Volkswagen as part of its settlement with U.S. regulators over its diesel emissions cheating scandal.
Clarification: Shell has other EV chargers. These are the first through its newly acquired company Greenlots.
Tesla is pitching customers on a new rental offering for solar power as a way to revive the flagging fortunes of its renewable energy business.
Once among the largest installers of renewables in the country through SolarCity, Tesla has seen its share of the market decline significantly since its acquisition of SolarCity three years ago. In the second quarter Tesla deployed only 29 megawatts of new solar installations, while the number one and two providers of consumer solar, SunRun and Vivint Solar installed 103 megawatts and 56 megawatts respectively.
One click to order solar & save ~$500/year in utility bills with no long-term contract (cancel anytime)
— Elon Musk (@elonmusk) August 18, 2019
According to Musk, the new program is “like having a money printer on your roof” for potential customers who live in states with high energy costs. “Still better to buy,” Musk exhorted, “but the rental option makes the economics obvious.”
Unlike SunRun and Vivint, which both used partnerships with homebuilders and retailers like Home Depot, BJ’s Wholesale, Costco and Sam’s Club to acquire customers, Tesla slashed ended door-to-door marketing and abandoned its partnership with Home Depot. The company began relying almost entirely on direct sales to power its solar business and eschewed the no-money-down lease model, which SolarCity had used so effectively.
Under the new system, Telsa is offering customers the option to rent solar systems for anywhere from $65 for a small installation to $195 for its largest installation. Customers only need to pay a fully refundable $100 charge.
Tesla said the contract can be canceled any time, but it would charge users $1,500 to remove the system once it has been installed.
Tesla did not respond to a request for comment at the time of publication.
For a long, long time, renewable energy proponents have considered advancements in battery technology to be the holy grail of the industry.
Advancements in energy storage has been among the hardest to achieve economically thanks to the incredibly tricky chemistry that’s involved in storing power.
Now, one company that’s launching from Y Combinator believes it has found the key to making batteries better. The company is called Holy Grail and it’s launching in the accelerator’s latest cohort.
With an executive team that initially included Nuno Pereira, David Pervan, and Martin Hansen, Holy Grail is trying to bring the techniques of the fabless semiconductor industry to the world of batteries.
The company’s founders believe that the only way to improve battery functionality is to take a systems approach to understanding how different anodes and cathodes will work together. It sounds simple, but Pereira says that the computational power hadn’t existed to take into account all of the variables that go along with introducing a new chemical to the battery mix.
“You can’t fix a battery with just a component,” Pereira says. “All of the batteries that were created and failed in the past. They create an anode, but they don’t have a chemical that works with the cathode or the electrolyte.”
For Pereira, the creation of Holy Grail is the latest step on a long road of experimentation with mechanical and chemical engineering. “As a kid I was more interested in mechanical engineering and building stuff,” he says. But as he began tinkering with cars and became fascinated with mobility, he realized that batteries were the innovation that gave the world its charge.
In 2017 Pereira founded a company called 10Xbattery, which was making high-density lithium batteries. That company, launching with what Pereira saw as a better chemistry, encapsulated the industry’s problem at large — the lack
So, with the help of a now-departed co-founder, Pereira founded Holy Grail. “He essentially told me, ‘Do you want to take a step back and see if there’s a better way to do this?'” said Pereira.
The company pitches itself as science fiction coming from the future, but it relies on a combination of what are now fairly standard (at least in the research community) tools. Holy Grail’s pitch is that it can automate much of the research and development process to create new batteries that are optimized to the specifications of end customers.
“It’s hard for a human to do the experiments that you need and to analyze multidimensional data,” says Pereira. “There are some companies that only do the machine-learning part and the computational science part and sell the results to companies. The problem is that there’s a disconnection between experimental reality and the simulations.”
Using computer modeling, chemical engineering and automated manufacturing, Holy Grail pitches a system that can get real test batteries into the hands of end customers in the mobility, electronics, and utility industries orders of magnitude more quickly than traditional research and development shops.
Currently the system that Holy Grail has built out can make 700 batteries per day. The company intends to build a pilot plant that will make batteries for electronics and drones. For automotive and energy companies, Holy Grail says it will partner with existing battery manufacturers that can support the kind of high-throughput manufacturing big orders will require.
Think of it like bringing the fabless chip design technologies and business models to the battery industry, says Pereira.
Holy Grail already has $14 million in letters of intent with potential customers, according to Pereira and is expecting to close additional financing as it exits Y Combinator.
To date the company has been backed by the London-based early stage investment firm Deep Science Ventures, where Pereira worked as an entrepreneur in residence.
Ultimately, the company sees its technology being applied far beyond batteries as a new platform for materials science discoveries broadly. For now, though the focus is on batteries.
“For the low volume we sell direct,” says Pereira. “While on high volume production, we will implement a pilot line through the system… we are able to do the research engineering with the small ones and test the big ones. In our case when we have a cell that works, it’s not something that works in a lab it’s something that works in the final cell.”
The company, which says it’s profitable, will now join a stable of consumer startup brands that includes Birdies, Casper Sleep, Grove Collaborative, Jolyn, Kendra Scott, Madison Reed and Topo Athletic.
Founded by Joe Kudla, Vuori began as an athletic wear company focused on selling shorts, sweatshirts, hoodies, and t-shirts to men in a more muted palette than other options.
Focused on retailers like REI, Nordstrom, Equinox and Core Power Yoga, the company’s clothes retail from anywhere between $32 for shirts and hats and $188 for its most expensive jacket.
“As devoted customers, it was apparent to us that Vuori had built versatile products with tremendous energy and soul,” said Jon Kossow, managing partner at Norwest. “This is exactly the type of positive brand experience we search for in our consumer investments, and we look forward to supporting Joe and the team as they continue to bring new products to market and delight their customers.”
Imagine a moving tower made of huge cement bricks weighing 35 metric tons. The movement of these massive blocks is powered by wind or solar power plants and is a way to store the energy those plants generate. Software controls the movement of the blocks automatically, responding to changes in power availability across an electric grid to charge and discharge the power that’s being generated.
The development of this technology is the culmination of years of work at Idealab, the Pasadena, Calif.-based startup incubator, and Energy Vault, the company it spun out to commercialize the technology, has just raised $110 million from SoftBank Vision Fund to take its next steps in the world.
Energy storage remains one of the largest obstacles to the large-scale rollout of renewable energy technologies on utility grids, but utilities, development agencies and private companies are investing billions to bring new energy storage capabilities to market as the technology to store energy improves.
The investment in Energy Vault is just one indicator of the massive market that investors see coming as power companies spend billions on renewables and storage. As The Wall Street Journal reported over the weekend, ScottishPower, the U.K.-based utility, is committing to spending $7.2 billion on renewable energy, grid upgrades and storage technologies between 2018 and 2022.
Meanwhile, out in the wilds of Utah, the American subsidiary of Japan’s Mitsubishi Hitachi Power Systems is working on a joint venture that would create the world’s largest clean energy storage facility. That 1 gigawatt storage would go a long way toward providing renewable power to the Western U.S. power grid and is going to be based on compressed air energy storage, large flow batteries, solid oxide fuel cells and renewable hydrogen storage.
“For 20 years, we’ve been reducing carbon emissions of the U.S. power grid using natural gas in combination with renewable power to replace retiring coal-fired power generation. In California and other states in the western United States, which will soon have retired all of their coal-fired power generation, we need the next step in decarbonization. Mixing natural gas and storage, and eventually using 100% renewable storage, is that next step,” said Paul Browning, president and CEO of MHPS Americas.
Energy Vault’s technology could also be used in these kinds of remote locations, according to chief executive Robert Piconi.
Energy Vault’s storage technology certainly isn’t going to be ubiquitous in highly populated areas, but the company’s towers of blocks can work well in remote locations and have a lower cost than chemical storage options, Piconi said.
“What you’re seeing there on some of the battery side is the need in the market for a mobile solution that isn’t tied to topography,” Piconi said. “We obviously aren’t putting these systems in urban areas or the middle of cities.”
For areas that need larger-scale storage that’s a bit more flexible there are storage solutions like Tesla’s new Megapack.
The Megapack comes fully assembled — including battery modules, bi-directional inverters, a thermal management system, an AC breaker and controls — and can store up to 3 megawatt-hours of energy with a 1.5 megawatt inverter capacity.
The Energy Vault storage system is made for much, much larger storage capacity. Each tower can store between 20 and 80 megawatt hours at a cost of 6 cents per kilowatt hour (on a levelized cost basis), according to Piconi.
The first facility that Energy Vault is developing is a 35 megawatt-hour system in Northern Italy, and there are other undisclosed contracts with an undisclosed number of customers on four continents, according to the company.
One place where Piconi sees particular applicability for Energy Vault’s technology is around desalination plants in places like sub-Saharan Africa or desert areas.
Backing Energy Vault’s new storage technology are a clutch of investors, including Neotribe Ventures, Cemex Ventures, Idealab and SoftBank.
The fashion industry has historically relied on exploitative, unsustainable and unethical labor practices in order to sell clothes — but if recent trends are any indication, it won’t for much longer. Over the last several years, the industry has entered a remarkable period of upheaval, with major and small fashion brands alike ditching traditional methods of production in favor of eco-friendly and cruelty-free alternatives. It’s a welcome, long-overdue development, and it’s showing no signs of slowing down.
Tradition fashion is unethical in almost too many ways to count. There is, of course, the monstrous toll on animal life. Every year, over one billion animals are slaughtered for their fur or pelts, usually after living their lives in horrific factory farms.
Cows, including newborn and even unborn calves, are skinned alive in order to make leather, while animals killed for their fur are executed through anal electrocution, neck-snapping, drowning and other ghastly ways in order to avoid damaging their pelts. Even wool, traditionally perceived as a more humanely-produced animal product, involves horrors on par with those at a slaughterhouse.
But animals aren’t the only ones who suffer under the traditional fashion industry. In Cambodian garment factories, which export around $5.7 billion in clothes every year, workers earning 50 cents an hour are forced to sit for 11 hours a day straight without using the restroom, according to Human Rights Watch.
Mass faintings in oppressively hot factories are common, and workers are routinely fired for getting sick or pregnant. In Bangladesh — the world’s second-largest importer of apparel behind China — a poorly-maintained garment factory collapsed in 2013, killing 1,132 people and injuring around 2,000 others. When Cambodian garment workers protested in 2014 for better working conditions, police shot and killed three of them.
Lastly, traditional fashion is killing the planet. Every year, the textile industry alone spits out 1.2 billion tons of greenhouse gases — more than all marine shipping vessels and international flights combined — and consumes 98 million tons of oil. Textile dyeing is the second-largest polluter of clean water, and on the whole, the apparel industry accounts for 10 percent of all greenhouse emissions worldwide. Worst of all, the clothes produced by this massive resource consumption produces clothes are rapidly discarded: In 2015, 73 percent of the total material used to make clothes ended up incinerated or landfilled, according to a study by the Ellen MacArthur foundation.
Thankfully, as big and small clothing manufacturers alike are realizing, there are plenty of ways to sell fashionable clothing and accessories that don’t destroy the environment, endanger workers, or cause suffering to animals.
Vegan clothes are becoming increasingly popular, and there’s no shortage of them to choose from. Some brands, like Keep Company and Unicorn Goods, offer an expansive generalized catalogue of vegan shirts, jackets, accessories and more. Other brands are more specialized: Unreal Fur has a beautiful line of vegan faux-fur, Ahisa, Beyond Skin and SUSI Studio all sell stylish vegan shoes, and Le Buns specializes in vegan swimwear. There are upscale vegan clothing retailers, such as Brave Gentleman, as well as more casual budget options, like The Third Estate.
Strict veganism isn’t the only way to manufacture clothing ethically. Hipsters For Sisters’ products are made entirely with recycled, upcycled, or deadstocked materials, earning the approval of PETA. Reformation utilizes a carbon-neutral production process to make its clothes (and offers customers a $100 store credit if they switch to wind energy), while Stella McCartney’s entire product line is vegetarian.
British fashion designer Stella McCartney poses prior her presentation during the men and women’s spring/summer 2019 collection fashion show in Milan, on June 18, 2018. (Photo by MIGUEL MEDINA / AFP) (Photo credit should read MIGUEL MEDINA/AFP/Getty Images)
Many vegan clothing companies, such as In The Soulshine and Della, have found ways to sell cruelty-free clothing while also providing humane working conditions to their factories’ workers. Amanda Hearst’s Maison de Mode features a combination of Fair Trade, recycled, cruelty-free, and organic products — as well as a comprehensive labeling system to inform customers which is which.
There are plenty of small, niche companies offering ethical clothing options, but make no mistake: The transition to sustainable and ethical fashion is an industry-wide phenomenon. Well-established brands like Dr. Marten’s, Old Navy, H&M and Zara all now sell vegan clothes. Gap, Gucci, and Hugo Boss have banned fur from their stores, and three of the largest fashion conglomerates — H&M Group, Arcadia Group and Inditex — recently pledged to stop selling mohair products by 2020.
Companies are rapidly investing in new ethical alternatives to traditional clothing as well: Save The Duck’s PLUMTECH jackets feature a cruelty-free alternative to down feathers, while companies like Modern Meadow are developing new biofabricated leather made from collagen protein and other essential building blocks found in animal skin that don’t require the slaughter of any animals.
There are, of course, some holdouts. Canada Goose still traps and kills coyotes to make its fur jackets, and uses a device that’s been banned in dozens of countries for its cruelty in order to do so. As a result, its store openings regularly draw protesters.
But by and large, the trend is in the opposite direction. From up-and-coming brands to the biggest names in fashion, the industry is moving away from the destructive practices of years past and toward cleaner, ethical ways of making clothes.
It shouldn’t be a surprise. After all, being successful in fashion has always required changing with the times — and in 2019, basing an industry on labor abuse, destruction of the environment and animal torture to make their products is no longer a sustainable business model.
Northrop Grumman is going to be working on the U.S. Army’s long-planned drone-killing lasers.
The Army wants to mount 50 kilowatt laser systems on top of its General Dynamics designed Stryker vehicle as part of its U.S. Army Maneuver Short Range Air Defense (M-SHORAD) directed energy prototyping initiative.
Basically, the army wants to use these lasers to protect frontline combat troops against drone attacks.
The initiative includes integrating a directed energy weapon system on a Stryker vehicle as a pathfinding effort toward the U.S. Army M-SHORAD objective to provide more comprehensive protection of frontline combat units.
“Northrop Grumman is eager to leverage its portfolio of innovative, proven technologies and integration expertise to accelerate delivery of next-generation protection to our maneuver forces,” said Dan Verwiel, vice president and general manager, missile defense and protective systems, Northrop Grumman, in a statement.
The drone, helicopter, rocket, artillery and mortar defense system that the Army is looking to mount on a group of Stryker all-terrain vehicles could come from either Northrop Grumman or Raytheon, which was also tapped to develop tech for the project.
“The time is now to get directed energy weapons to the battlefield,” said Lt. Gen. L. Neil Thurgood, director of hypersonics, directed energy, space and rapid acquisition, in a statement. “The Army recognizes the need for directed energy lasers as part of the Army’s modernization plan. This is no longer a research effort or a demonstration effort. It is a strategic combat capability, and we are on the right path to get it in soldiers’ hands.”
For the Army, lasers extend the promise of reducing supply chain hurdles that are associated with conventional kinetic weapons. In May, the Army decided gave the green light to a strategy for accelerated prototyping and field use of a wide array of lasers for infantry, vehicles, and air support.
While Raytheon and Northrop Grumman have both been tapped by the Army, the military will also entertain pitches from other vendors who want to carry out their own research, according to the Army.
It’s a potential $490 million contract for whoever wins the demonstration, and the Army expects to have the vehicles equipped in Fiscal Year 2022.
“Both the Army and commercial industry have made substantial improvements in the efficiency of high energy lasers — to the point where we can get militarily significant laser power onto a tactically relevant platform,” said Dr. Craig Robin, RCCTO Senior Research Scientist for Directed Energy Applications, in a statement. “Now, we are in position to quickly prototype, compete for the best solution, and deliver to a combat unit.”
Electric-vehicle chargers today are designed for human drivers. Electrify America and San Francisco-based startup Stable are preparing for the day when humans are no longer behind the wheel.
Electrify America, the entity set up by Volkswagen as part of its settlement with U.S. regulators over the diesel emissions cheating scandal, is partnering with Stable to test a system that can charge electric vehicles without human intervention.
The autonomous electric-vehicle charging system will combine Electrify America’s 150 kilowatt DC fast charger with Stable’s software and robotics. A robotic arm, which is equipped with computer vision to see the electric vehicle’s charging port, is attached to the EV charger. The two companies plan to open the autonomous charging site in San Francisco by early 2020.
There’s more to this system than a nifty robotic arm. Stable’s software and modeling algorithms are critical components that have applications today, not just the yet-to-be-determined era of ubiquitous robotaxis.
While streets today aren’t flooded with autonomous vehicles, they are filled with thousands of vehicles used by corporate and government fleets, as well as ride-hailing platforms like Uber and Lyft . Those commercial-focused vehicles are increasingly electric, a shift driven by economics and regulations.
“For the first time these fleets are having to think about, ‘how are we going to charge these massive fleets of electric vehicles, whether they are autonomous or not?’ ” Stable co-founder and CEO Rohan Puri told TechCrunch in a recent interview.
Stable, a 10-person company with employees from Tesla, EVgo, Faraday Future, Google, Stanford and MIT universities, has developed data science algorithms to determine the best location for chargers and scheduling software for once the EV stations are deployed.
Its data science algorithms take into account installation costs, available power, real estate costs as well as travel time for the given vehicle to go to the site and then get back on the road to service customers. Stable has figured out that when it comes to commercial fleets, chargers in a distributed network within cities are used more and have a lower cost of operation than one giant centralized charging hub.
Once a site is deployed, Stable’s software directs when, how long and at what speed the electric vehicle should charge.
Stable, which launched in 2017, is backed by Trucks VC, Upside Partnership, MIT’s E14 Fund and a number of angel investors, including NerdWallet co-founder Jake Gibson and Sidecar co-founder and CEO Sunil Paul .
The pilot project in San Francisco is the start of what Puri hopes will lead to more fleet-focused sites with Electrify America, which has largely focused on consumer charging stations. Electrify America has said it will invest $2 billion over 10 years in clean energy infrastructure and education. The VW unit has more than 486 electric vehicle charging stations installed or under development. Of those, 262 charging stations have been commissioned and are now open to the public.
Meanwhile, Stable is keen to demonstrate its autonomous electric-vehicle chargers and lock in additional fleet customers.
“What we set out to do was to reinvent the gas station for this new era of transportation, which will be fleet-dominant and electric,” Puri said. “What’s clear is there just isn’t nearly enough of the right infrastructure installed in the right place.”
CRV, formerly known as Charles River Ventures, has hired Anna Khan as its 10th general partner. Khan joins from Bessemer Venture Partners where she’s served as a vice president since 2016.
CRV invests across industries, with a portfolio that includes Bird and Airtable, among others. The venture capital firm is currently investing out of its 17th fund, a $600 million vehicle that closed in 2018.
Founded in 1970, CRV is amongst the older VC firms. While Khan isn’t the firm’s first female GP — Annie Kadavy, now a general partner at Redpoint Ventures, joined CRV as a GP in 2012 — she will be the firm’s only current female GP.
Despite, an increasing number of firms tapping female talent, less than 10% of “decision-makers” at U.S. venture capital firms are female, according to Axios. Female founders, meanwhile, attract just over 2% of venture capital dollars.
Khan joins CRV alongside another new hire, former Social Capital partner Kristin Baker Spohn, who’s been hired as a venture partner. Both Khan and Spohn will focus on CRV’s enterprise practice, where they’ll work with Airtable, Drift, Iterable, SignalFx and more.
CRV’s newest venture partner Kristin Baker Spohn
“As is often the case, we were introduced to both [Khan and Spohn] through friends of CRV, and from our earliest conversations knew they would add tremendously to the firm,” CRV general partner Murat Bicer said in a statement. “Kristin brings an impressive depth of knowledge in healthcare and a charisma that speaks to early entrepreneurs and seasoned executives alike, while Anna has an immense understanding of the SaaS world and an energy that has seen her accomplish so much in a relatively short period of time.”
Khan, an investor in ScaleFactor, NewVoiceMedia and Intercom, previously founded Launch X, an accelerator that helps female entrepreneurs learn how to raise capital for their businesses.
Spohn’s been an active angel investor since leaving Social Capital. She exited the once high-flying venture capital fund last year following Social Capital co-founder Chamath Palihapitiya’s decision to no longer raise outside capital.
Tesla has launched a new utility-scale energy storage product called Megapack modeled after the giant battery system it deployed in South Australia as the company seeks to provide an alternative to natural gas “peaker” power plants.
Megapack is the third and largest energy storage system offered by Tesla. The company also sells the residential Powerwall and the commercial Powerpack systems.
Megapack, which Tesla announced Monday in a blog post, is the latest effort by the company to retool and grow its energy storage business, which is a smaller revenue driver than sales of its electric vehicles. Of the $6.4 billion in total revenue posted in the second quarter, just $368 million was from Tesla’s solar and energy storage product business.
Tesla did deploy a record 415 megawatt-hours of energy storage products in the second quarter, an 81% increase from the previous quarter, according to Tesla’s second-quarter earnings report that was released July 24. Powerwalls are now installed at more than 50,000 sites.
The Megapack offering could provide an even bigger boost if Tesla can convince utilities to opt for it instead of the more common natural gas peaker plants used today. And it seems it already has.
Tesla’s Megapack will provide 182.5 MW of the upcoming 567 MW Moss Landing energy storage project in California with PG&E.
The so-called Megapack was specifically designed and engineered to be an easy-to-install utility-scale system. Each system comes fully assembled — that includes battery modules, bi-directional inverters, a thermal management system, an AC main breaker and controls — with up to 3 megawatt-hours of energy storage and 1.5 MW of inverter capacity.
The system includes software, developed by Tesla, to monitor, control and monetize the installations, the company said in a blog post announcing Megapack.
All Megapacks connect to Powerhub, an advanced monitoring and control platform for large-scale utility projects and microgrids, and can also integrate with Autobidder, Tesla’s machine-learning platform for automated energy trading, the company said.
Megapack was inspired by Tesla’s Hornsdale project, which combined its 100 MW Powerpack system with Neoen’s wind farm near Jamestown in South Australia. The Tesla Powerpack system stored power generated by the wind farm and then delivered the electricity to the grid during peak hours. The facility saved nearly $40 million in its first year.
Today, the go-to option for utilities are natural gas “peaker” power plants. Peaker power plants are used when a local utility grid can’t provide enough power to meet peak demand, an occurrence that has become more common as temperatures and populations rise.
Tesla hopes to be the sustainable alternative. And in states like California, which have ambitious emissions targets, Tesla could gain some ground. Instead of using a natural gas peaker plant, utilities could use the Megapack to store excess solar or wind energy to support the grid’s peak loads.
The business, which is similar to startups in the U.S. like Filld, Yoshi and Booster Fuels, took 10 months to design and receive approval for its proprietary refueling trucks that can withstand the unique stresses of providing logistics services in India.
Together with co-founder Nabin Roy, a serial startup entrepreneur, MyPetrolPump co-founder and chief executive Ashish Gupta pooled $150,000 to build the company’s first two refuelers and launch the business.
MyPetrolPump began operating out of Bangalore in 2017 working with a manufacturing partner to make the 20-30 refuelers that the company expects it will need to roll out its initial services. However, demand is far outstripping supply, according to Gupta.
“We would need hundreds of them to fulfill the demand,” Gupta says. In fact the company is already developing a licensing strategy that would see it franchise out the construction of the refueling vehicles and regional management of the business across multiple geographies.
Bootstrapped until this $1.6 million financing, MyPetrolPump already has five refueling vehicles in its fleet and counts 2,000 customers already on its ledger.
These are companies like Amazon and Zoomcar, which both have massive fleets of vehicles that need refueling. Already the company has delivered 5 million liters of fuel with drivers working daily 12-hour shifts, Gupta says.
While services like MyPetrolPump have cropped up in the U.S. as a matter of convenience, in the Indian context, the company’s offering is more of necessity, says Gupta.
“In the Indian context, there’s pilferage of fuel,” says Gupta. Bus drivers collude with gas station operators to skim money off the top of the order, charging for 50 liters of fuel but only getting 40 liters pumped in. Another problem that Gupta says is common is the adulteration of fuel with additives that can degrade the engine of a vehicle.
There’s also the environmental benefit of not having to go all over to refill a vehicle, saving fuel costs by filling up multiple vehicles with a single trip from a refueling vehicle out to a location with a fleet of existing vehicles.
The company estimates it can offset 1 million tons of carbon in a year — and provide more than 300 billion liters of fuel. The model has taken off in other geographies as well. There’s Toplivo v Bak in Russia (which was acquired by Yandex), Gaston in Paris and Indonesia’s everything mobility company, Gojek, whose offerings also include refueling services.
And Gupta is preparing for the future as well. If the world moves to electrification and electric vehicles, the entrepreneur says his company can handle that transition as well.
“We are delivering a last-mile fuel delivery system,” says Gupta. “If tomorrow hydrogen becomes the dominant fuel we will do that… If there is electricity we will do that. What we are building is the convenience of last-mile delivery to energy at the doorstep.”
Before Tableau was the $15.7 billion key to Salesforce’s problems, it was a couple of founders arguing with a couple of venture capitalists over lunch about why its Series A valuation should be higher than $12 million pre-money.
Salesforce has generally been one to signify corporate strategy shifts through their acquisitions, so you can understand why the entire tech industry took notice when the cloud CRM giant announced its priciest acquisition ever last month.
The deal to acquire the Seattle-based data visualization powerhouse Tableau was substantial enough that Salesforce CEO Marc Benioff publicly announced it was turning Seattle into its second HQ. Tableau’s acquisition doesn’t just mean big things for Salesforce. With the deal taking place just days after Google announced it was paying $2.6 billion for Looker, the acquisition showcases just how intense the cloud wars are getting for the enterprise tech companies out to win it all.
The Exit is a new series at TechCrunch. It’s an exit interview of sorts with a VC who was in the right place at the right time but made the right call on an investment that paid off. [Have feedback? Shoot me an email at firstname.lastname@example.org]
Scott Sandell, a general partner at NEA (New Enterprise Associates) who has now been at the firm for 25 years, was one of those investors arguing with two of Tableau’s co-founders, Chris Stolte and Christian Chabot. Desperate to close the 2004 deal over their lunch meeting, he went on to agree to the Tableau founders’ demands of a higher $20 million valuation, though Sandell tells me it still feels like he got a pretty good deal.
NEA went on to invest further in subsequent rounds and went on to hold over 38% of the company at the time of its IPO in 2013 according to public financial docs.
I had a long chat with Sandell, who also invested in Salesforce, about the importance of the Tableau deal, his rise from associate to general partner at NEA, who he sees as the biggest challenger to Salesforce, and why he thinks scooter companies are “the worst business in the known universe.”
The interview has been edited for length and clarity.
Lucas Matney: You’ve been at this investing thing for quite a while, but taking a trip down memory lane, how did you get into VC in the first place?
Scott Sandell: The way I got into venture capital is a little bit of a circuitous route. I had an opportunity to get into venture capital coming out of Stanford Business School in 1992, but it wasn’t quite the right fit. And so I had an interest, but I didn’t have the right opportunity.
When it comes to VC, vehicles, and startups, Africa’s ride-hail markets are becoming a multi-wheeled and global affair.
The big players such as Uber and Bolt are competing in Kampala and Nairobi—where in addition to car-service—they offer rickshaw taxis. On-demand motorcycle startups are multiplying and piloting EVs with funds from international partners. And many ride-hail companies in Africa are adapting unique product solutions to local transit needs.
In this analysis, I take a look at the leading startups in the mobility space and how the future of transportation on the continent will increasingly come from new entrants.
Africa’s in the midst of digital innovation boom, the components of which are intersecting rapidly across its 54 countries and 1.2 billion people.
Smartphone penetration is improving and in 2017, the continent saw the largest global increase in internet users—20 percent.
By Partech data, the continent surpassed the $1 billion VC mark in 2018. And greater connectivity and venture funding are fueling thousands of startups in every imaginable sector, including digital-transit.
While reliable markets stats for the size and potential of Africa’s ride-hail markets are sparse, there are some indicators of the sector’s potential.
Car ownership and cars per capita in Africa is among the lowest in the world. Parallel to that, any eyes and ears survey of the continent’s big cities reveals that shared transport by buses, cars, or motorcycles is big business that’s already ingrained in consumer culture. Millions of people daily pay fares to pack onto East and West Africa’s Mutatu and Danfo minibuses and Okada and Boda Boda motorbike taxis.
As Africa continues to urbanize, converts to smartphones, and discretionary consumer spending continues to rise—it all adds up to suggest strong potential for conversion to on-demand mobility services.
Unsurprisingly, the most active markets for ride-hail startups and investment in Africa align with the continent’s top spots for VC and tech activity: primarily Nigeria, Kenya, and South Africa.