The economic impact of the COVID-19 pandemic adversely affected the financial outlook for millions of people, and continues to cause significant fiscal distress to millions more, but such challenging times have also wrought a more resilient and resourceful financial system.
With the ingenuity of crowdfunding, considered to be one of the last decade’s greatest “success stories,” and such desperate times calling for bold new ways to finance a wide variety of COVID-19 relief efforts, we are now seeing an excellent opportunity for banks and other financial institutions to partner with crowdfunding platforms and campaigns, bolstering their efforts and impact.
Before considering how financial institutions can assist with crowdfunding campaigns, we must first look at the diverse array of impressive results from this financing option during the pandemic. As people choose between paying the rent or buying groceries, and countless other despairing circumstances, we must look to some of the more inventive ways businesses, entrepreneurs and people in general are using crowdfunding to provide the COVID-19 relief that cash-strapped consumers with maxed-out or poor credit do not have access to or the government has not provided.
Some great examples of COVID-19 crowdfunding at its best include the following:
The possibilities presented by crowdfunding in this age of the coronavirus are endless, and financial institutions can certainly lend their assistance. Here is how.
Crowdfunding is a substantial and ever-so relevant means of financing all sorts of businesses, people and products. Denying its substantive contribution to the economy, especially in digital finance during this pandemic, is akin to wearing a monocle when you actually need glasses for both of your eyes. Do not be shortsighted on this. Crowdfunding is here to stay. In fact, countless crowdfunding businesses and platforms continue to make major moves within the markets globally. For example, Parpera from Australia, in coordination with the equity-crowdfunding platforms, hopes to rival the likes of GoFundMe, Kickstarter and Indiegogo.
This might seem contrary to the original purpose of these campaigns, but the right amount of seed-cash infusions to campaigns that are aligned with your goals as a company is a win-win for both you and the entrepreneurs or causes, especially now in such desperate times of need.
This means that small businesses and medium-sized businesses within your institution’s community could use your help. Consider investing in crowdfunding campaigns similar to the ones mentioned earlier. Better yet, bridge the gaps between financial institutions and crowdfunding platforms and campaigns so that smaller businesses get the opportunities they need to survive through these difficult times.
Last month, the United Nations Development Program released a report proclaiming that digital finance is now allowing people from all over the world to customize and personalize their money-management experiences such that their financial needs have the potential to be more readily and sufficiently met. Financial institutions willing to work as a partner with crowdfunding platforms and campaigns will further these goals and set society up for a more robust rebound from any possible detrimental effects of the COVID-19 recession.
Other countries are already beginning to figure out better ways to regulate the crowdfunding financing industry, such as the recent updates to the European Union’s handling of crowdfunding regulations, set to take effect this fall. Well-established financial institutions can lend their support in defining the policies and standard operating procedures for crowdfunding even during such a chaotic time as the COVID-19 pandemic. Doing so will ensure fair and equitable financing for all, at least, in theory.
While originally born out of either philanthropy or early-adopting innovation, depending on the situation, person or product, crowdfunding has become an increasingly reliable means of providing COVID-19 economic relief when other organizations, including the government and some banks, cannot provide sufficient assistance. Financial institutions must lend their vast expertise, knowledge and resources to these worthy causes; after all, we are all in this together.
Render, the winner of our Disrupt SF 2019 Startup Battlefield, today announced that it has added another $4.5 million onto its existing seed funding round, bringing total investment into the company to $6.75 million.
The round was led by General Catalyst, with participation from previous investors South Park Commons Fund and a group of angels that includes Lee Fixel, Elad Gil and GitHub CTO (and former VP of Engineering at Heroku) Jason Warner.
The company, which describes itself as a “Zero DevOps alternative to AWS, Azure and Google Cloud,” originally raised a $2.25 million seed round in April 2019, but it got a lot of inbound interest after winning the Disrupt Battlefield. In the end, though, the team decided to simply raise more money from its existing investors.
“We spoke to a bunch of people after Disrupt, including Ashton Kutcher’s firm, because he was one of the judges,” Render co-founder and CEO Anurag Goel explained. “In the end, we decided that we would just raise more money from our existing investors because we like them and it helped us get a better deal from our existing investors. And they were all super interested in continuing to invest.”
What makes Render stand out is that it fulfills many of the promises of Heroku and maybe Google Cloud’s App Engine. You simply tell it what kind of service you are going to deploy and it handles the deployment and manages the infrastructure for you.
“Our customers are all people who are writing code. And they just want to deploy this code really easily without having to worry about servers, or maintenance, or depending on DevOps teams — or, in many cases, hiring DevOps teams,” Goel said. “DevOps engineers are extremely expensive to hire and extremely hard to find, especially good ones. Our goal is to eliminate all of that work that DevOps people do at every company, because it’s very similar at every company.”
One new feature the company is launching today is preview environments. You can think of them as disposable staging or development environments that developers can spin up to test their code — and Render promises that the testing environment will look the same as your production environment (or you can specify changes, too). Developers can then test their updates collaboratively with QA or their product and sales teams in this environment.
Development teams on Render specify their infrastructure environments in a YAML file and turning on these new preview environments is as easy as setting a flag in that file.
“Once they do that, then for every pull request — because we’re integrated with GitHub and GitLab — we automatically spin up a copy of that environment. That can include anything you have in production, or things like a Redis instance, or managed Postgres database, or Elasticsearch instance, or obviously APIs and web services and static sites,” Goel said. Every time you push a change to that branch or pull request, the environment is automatically updated, too. Once the pull request is closed or merged, Render destroys the environment automatically.
The company will use the new funding to grow its team and build out its service. The plan, Goel tells me, is to raise a larger Series A round next year.
In an overcrowded market of online fashion brands, consumers are spoilt for choice on what site to visit. They are generally forced to visit each brand one by one, manually filtering down to what they like. Most of the experience is not that great, and past purchase history and cookies aren’t much to go on to tailor user experience. If someone has bought an army-green military jacket, the e-commerce site is on a hiding to nothing if all it suggests is more army-green military jackets…
Instead, Psycke ( it’s brand name is ‘PSYKHE’) is an e-commerce startup that uses AI and psychology to make product recommendations based both on the user’s personality profile and the ‘personality’ of the products. Admittedly, a number of startups have come and gone claiming this, but it claims to have taken a unique approach to make the process of buying fashion easier by acting as an aggregator that pulls products from all leading fashion retailers. Each user sees a different storefront that, says the company, becomes increasingly personalized.
It has now raised $1.7 million in seed funding from a range of investors and is announcing new plans to scale its technology to other consumer verticals in the future in the B2B space.
The investors are Carmen Busquets – the largest founding investor in Net-a-Porter; SLS Journey – the new investment arm of the MadaLuxe Group, the North American distributor of luxury fashion; John Skipper – DAZN Chairman and former Co-chairman of Disney Media Networks and President of ESPN; and Lara Vanjak – Chief Operating Officer at Aser Ventures, formerly at MP & Silva and FC Inter-Milan.
So what does it do? As a B2C aggregator, it pools inventory from leading retailers. The platform then applies machine learning and personality-trait science, and tailors product recommendations to users based on a personality test taken on sign-up. The company says it has international patents pending and has secured affiliate partnerships with leading retailers that include Moda Operandi, MyTheresa, LVMH’s platform 24S, and 11 Honoré.
The business model is based around an affiliate partnership model, where it makes between 5-25% of each sale. It also plans to expand into B2B for other consumer verticals in the future, providing a plug-in product that allows users to sort items by their personality.
How does this personality test help? Well, Psykhe has assigned an overall psychological profile to the actual products themselves: over 1 million products from commerce partners, using machine learning (based on training data).
So for example, if a leather boot had metal studs on it (thus looking more ‘rebellious’), it would get a moderate-low rating on the trait of ‘Agreeableness’. A pink floral dress would get a higher score on that trait. A conservative tweed blazer would get a lower score tag on the trait of ‘Openness’, as tweed blazers tend to indicate a more conservative style and thus nature.
It’s competitors include The Yes and Lyst. However, Psykhe’s main point of differentiation is this personality scoring. Furthermore, The Yes is app-only, US-only, and only partners with monobrands, while Lyst is an aggregator with 1,000s of brands, but used as more of a search platform.
Psykhe is in a good position to take advantage of the ongoing effects of COVID-19, which continue to give a major boost to global ecommerce as people flood online amid lockdowns.
The startup is the brainchild of Anabel Maldonado, CEO & founder, (along with founding team CTO Will Palmer and Lead Data Scientist, Rene-Jean Corneille, pictured above), who studied psychology in her hometown of Toronto, but ended up working at in the UK’s NHS in a specialist team that made developmental diagnoses for children under 5.
She made a pivot into fashion after winning a competition for an editorial mentorship at British Marie Claire. She later went to the press department of Christian Louboutin, followed by internships at the Mail on Sunday and Marie Claire, then spending several years in magazine publishing before moving into e-commerce at CoutureLab. Going freelance, she worked with a number of luxury brands and platforms as an editorial consultant. As a fashion journalist, she’s contributed industry op-eds to publications such as The Business of Fashion, T The New York Times Style, and Marie Claire.
As part of the fashion industry for 10 years, she says she became frustrated with the narratives which “made fashion seem more frivolous than it really is. I thought, this is a trillion-dollar industry, we all have such emotional, visceral reactions to an aesthetic based on who we are, but all we keep talking about is the ‘hot new color for fall and so-called blanket “must-haves’.”
But, she says, “there was no inquiry into individual differences. This world was really missing the level of depth it deserved, and I sought to demonstrate that we’re all sensitive to aesthetic in one way or another and that our clothing choices have a great psychological pay-off effect on us, based on our unique internal needs.” So she set about creating a startup to address this ‘fashion psychology’ – or, as she says “why we wear what we wear”.
Productivity software has had a huge couple of years, yet for all of the great note-taking apps that have launched, consumers haven’t gotten a lot of quality options for Google Calendar replacements.
This week, Woven, a calendar startup founded by former Facebook CIO Tim Campos is shaking up the premium tier of their scheduling software, hoping that productivity-focused users will pay to further optimize the calendar experience just as they have paid up for subscription email services like Superhuman and note-taking apps like Notion.
There’s been a pretty huge influx of investor dollars into the productivity space which has shown a lot of promise in bottoms-up scaling inside enterprises by first aiming to sell their products to individuals. Woven has raised about $5 million to date with investments from Battery Ventures, Felicis Ventures and Tiny Capital, among others.
“Time is the most valuable asset that we have,” Campos told TechCrunch. “We think there’s a real opportunity to do much more with the calendar.”
Their new product will help determine just how much demand there is for a pro-tier calendar that aims to make life easier for professionals than Google Calendar or Outlook Calendar cares to. The new product, which is $20 per month ($10 during an early access period if you pay for a year), builds on the company’s free tier product giving users a handful of new features. There’s still quite a bit of functionality in the free tier still, which is sticking around, but the lack of multi-account support is one of the big limitations there.
Image credit: via Woven.
The core of Woven’s value is likely its Calendly-like scheduling links which allow single users to quickly show when they’re free, or give teams the ability to eliminate back-in-forth entirely when scheduling meetings by scanning everyone’s availability and suggesting times that are uniformly available. In this latest update, the startup has also launched a new feature called Open Invite which allows users to blast out links to join webinars that recipients can quickly register for.
One of Woven’s top features is probably Smart Templates which aims to learn from your habits and strip down the amount of time it takes to organize a meeting. Selecting the template can automatically set you up with a one-time Zoom link, ping participants for their availability with Woven’s scheduling links and take care of mundane details. Now, the titles automatically update depending on participants, location or company information as well. While plenty of productivity happens on the desktop, the startup is trying to push the envelope on mobile as well. They’ve added an iMessage integration to quickly allow people to share their availability and schedule meetings inside chat.
The product updates arrive soon after the announcement of the company’s Zoom “Zapp,” which shoves the app’s functionality inside Zoom and will likely be a bit sell to new users.
Three months on since the former founders of SoundCloud launched their e-bike subscription service, Dance they are today announcing the close of a $17.7 million (€15 million) Series A funding round led by one of the larger European VCs, HV Holtzbrinck Ventures.
Founded by Eric Quidenus-Wahlforss (ex-Soundcloud), Alexander Ljung (ex-Soundcloud) and Christian Springub (ex-Jimdo), Dance has ambitions to offer its all-inclusive service subscription package into expanded markets across Europe and eventually the US. Dance is currently operating the invite-only pilot of its e-bike subscription in Berlin, with plans for a broader launch, expanded accessibility and availability and new cities next year.
Rainer Märkle, general partner at HV Holtzbrinck Ventures said in a statement: “The mobility market is seeing a huge shift towards bikes, strongly fueled by the paradigm shift of vehicles going electric. Unfortunately, the majority of e-bikes on the market today have some combination of poor design, high upfront costs, and cumbersome maintenance. We analyzed the overall mobility market, evaluated all means of transport, and crunched the numbers on all types of business models for a few years before we found what we were looking for. Dance is by the far the most viable future of biking, bridging the gap between e-bike ownership and more ‘joyful’ accessibility to go places.”
E-bikes tend to be notoriously expensive to purchase and a hassle to repair. That said, startups like VanMoof and Cowboy have brought an Apple -esque business model to the market which is fast bringing the cost of full ownership down.
Most commuters are put off cycling the average 10 kilometers (6.2 miles) commute but e-bikes make this distance a breeze. Dance sits in that half-way house between owning an expensive bike and having to hunt down a rentable ebike or electric scooter close to your location.
Additionally, the COVID-19 pandemic has brought individual, socially distanced, transport into sharp relief. UK sales of e-bikes have boomed, seeing a 230% surge in demand over the summer. This has happened at the same time as EU governments have put in more than 2300km of bike lanes, with the UK alone pledging £250 million in investment.
Quidenus-Wahlforss said the startup has been “inundated with positive responses from around the world since we announced our invite-only pilot program.”
Dance’s subscription model includes a fully assembled e-bike delivered to a subscriber’s door within 24 hours. This comes with maintenance, theft replacement insurance, a dedicated smartphone app, concierge services, GPS location tracking and unlocking capabilities.
After pricing at $27 per share, Datto’s stock rose during regular trading. By mid-afternoon the data and security software company was worth $28.10 per share, up a hair over 4%.
The company’s IPO comes on the back of a rapid-fire Q3 in which a host of technology companies, particularly software, made it to the public markets. While the number of un-exited unicorns in the United States still rose in the quarter, Q3 brought with it a wave of liquidity that felt long coming.
Datto’s IPO is one among what appears set to be a smaller Q4 class, though offerings like Airbnb and Affirm are still tipped to be coming in short order. Airbnb and Affirm each announced that they have filed privately to float, though have yet to publicly drop their S-1 filings.
While 2020 has brought with it many venture-backed IPOs, the year has also brought a nearly commensurate number of complaints about the IPO process itself. After many tech, and tech-ish, companies saw their values skyrocket after pricing and listing, vocal tech and venture figures argued that IPOs were effectively handing upside from companies to underwriting banks, and their customers.
There was some merit to the arguments. Datto, however, will not stoke similar fires. Up a mere few points from its IPO price, it was priced pretty much perfectly from the perspective of raising as much money as it could for itself in its debut.
Datto will use its IPO proceeds to pay down debts that it accrued during its takeover from Vista (private equity: a good deal for private equity). However, Datto’s CEO Tim Weller told TechCrunch in a call that the company will still be well-capitalized after the public offering, saying that it will have a very strong cash position.
The company should have places to deploy its remaining cash. In its S-1 filings, Datto highlighted a COVID-19 tailwind stemming from companies accelerating their digital transformation efforts. TechCrunch asked the company’s CEO whether there was an international component to that story, and whether digital transformation efforts are accelerating globally and not merely domestically. In a good omen for startups not based in the United States, the executive said that they were.
The company did not entertain a SPAC-led public debut, with Datto’s founder, Austin McChord, saying that his company had long planned a traditional public offering. Closing on the Vista front, McChord said that the removal of Vista’s Brian Sheth was immaterial to Datto’s IPO process.
The new languages are Java, Kotlin, Scala, C/C++, Objective C, C#, Go, Typescript, HTML/CSS and Less. Kite works in most popular development environments, including the likes of VS Code, JupyterLab, Vim, Sublime and Atom, as well as all Jetbrains IntelliJ-based IDEs, including Android Studio.
This will make Kite a far more attractive solution for a lot of developers. Currently, the company says, it saves its most active developers from writing about 175 “words” of code every day. One thing that always made Kite stand out is that it ranks its suggestions by relevance — not alphabetically as some of its non-AI driven competitors do. To build its models, Kite fed its algorithms code from GitHub .
The service is available as a free download for Windows users and as a server-powered paid enterprise version with a larger deep learning model that consequently offers more AI smarts, as well as the ability to create custom models. The paid version also includes support for multi-line code completion, while the free version only supports line-of-code completions.
Kite notes that in addition to adding new languages, Kite also spent the last year focusing on the user experience, which should now be less distracting and, of course, offer more relevant completions.
A new report released today by App Annie digs into how Gen Z consumers engage with their smartphones and mobile apps. According to data collected in Q3 2020, Gen Z users spend an average of 4.1+ hours per month in non-gaming apps, or 10% longer than older demographics. They also engage with apps more often, with 20% more sessions per user in non-gaming apps, at 120 sessions per month per app, compared with older groups.
This app engagement data is only a view into Gen Z trends, but is an incomplete analysis, as it only focuses on select markets, including the U.S., U.K., Brazil, France, Germany, Indonesia, Japan, Mexico, South Korea and Turkey. It also included only data collected from Android devices, which doesn’t provide as full a picture.
App Annie found that Gen Z is more likely to use games than older users, but they don’t access them as often or use them as long. Those ages 25 and older actually spent nearly 20% longer in their most-used games and accessed them 10% more frequently. Both demographics spent more total time gaming than using non-game apps, on a monthly basis.
Image Credits: App Annie
One breakout in the games category for Gen Z users, however, was the casual arcade game Among Us!, which just became the third-most played game worldwide, thanks to its team-based multiplayer features and the surge of Twitch streams. When Rep. Alexandria Ocasio-Cortez played the game on Twitch last night, it became one of the biggest-ever Twitch streams, peaking at 435,000 concurrent viewers.
Other popular Gen Z games include Match-3 games like Candy Crush Saga and Toon Blast, action games like PUBG Mobile and Free Fire, and casual simulation games like Minecraft Pocket Edition and Roblox.
Image Credits: App Annie
The report also examined what apps Gen Z users prefer across a range of non-game categories across both iOS and Android.
TikTok and Snapchat, in particular, stood out as the top over-indexed social and communication apps among Gen Z in nine out of the 10 markets analyzed for this report. This comes on the heels of Snap’s blowout earnings yesterday, where the social app topped analyst expectations and saw daily user growth climb 4% to 238 million.
Discord is also seeing strong growth, particularly in France, as mobile and remote gaming has become an epicenter of social interactions during the pandemic.
Image Credits: App Annie
Among entertainment apps, Twitch was the top over-indexed app in six out of the 10 markets for Gen Z users, though live streaming niconico was popular in Japan.
App Annie found that finance and shopping apps haven’t yet reached a broad Gen Z audience, but are demonstrating promising growth.
Image Credits: App Annie
Few finance apps over-index with Gen Z, though the demographic tends to interact with non-bank fintech apps like Venmo, Monzo and DANA. In South Korea, a top app was peer-to-peer payments app Toss, which also offers loans, insurance and credit.
Top Gen Z fashion apps, meanwhile, included Shein, ASOS, Shopee and Mercari.
Overall, active Gen Z users are rising faster across the markets analyzed, compared with older groups, with emerging markets like Indonesia and Brazil seeing the most growth.
Image Credits: App Annie
App Annie noted that Gen Z is becoming one of the most powerful consumer segments on mobile, as 98% own a smartphone and have a combined estimated spending power of $143 billion annually.
“Gen Z has never known a world without their smartphone. They see the world through this mobile first lens,” said Ted Krantz, CEO, App Annie, in a statement about the report’s findings.
While certifications for security management practices like SOC 2 and ISO 27001 have been around for a while, the number of companies that now request that their software vendors go through (and pass) the audits to be in compliance with these continues to increase. For a lot of companies, that’s a harrowing process, so it’s maybe no surprise that we are also seeing an increase in startups that aim to make this process easier. Earlier this month, Strike Graph, which helps automate security audits, announced its $3.9 million round, and today, Secureframe, which also helps businesses get and maintain their SOC 2 and ISO 27001 certifications, is announcing a $4.5 million round.
Secureframe’s round was co-led by Base10 Partners and Google’s AI-focused Gradient Ventures fund. BoxGroup, Village Global, Soma Capital, Liquid2, Chapter One, Worklife Ventures and Backend Capital participated. Current customers include Stream, Hasura and Benepass.
Shrav Mehta, the company’s co-founder and CEO, spent time at a number of different companies, but he tells me the idea for Secureframe was mostly born during his time at direct-mail service Lob.
“When I was at Lob, we dealt with a lot of issues around security and compliance because we were sometimes dealing with very sensitive data, and we’d hop on calls with customers, had to complete thousand-line security questionnaires, do exhaustive security reviews, and this was a lot for a startup of our size at the time. But it’s just what our customers needed. So I started to see that pain,” Mehta said.
After stints at Pilot and Scale AI after he left Lob in 2017 — and informally helping other companies manage the certification process — he co-founded Secureframe together with the company’s CTO, Natasja Nielsen.
“Because Secureframe is basically adding a lot of automation with our software — and making the process so much simpler and easier — we’re able to bring the cost down to a point where this is something that a lot more companies can afford,” Mehta explained. “This is something that everyone can get in place from day one, and not really have to worry that, ‘hey, this is going to take all of our time, it’s going to take a year, it’s going to cost a lot of money.’ […] We’re trying to solve that problem to make it super easy for every organization to be secure from day one.”
The main idea here is to make the arcane certification process more transparent and streamline the process by automating many of the more labor-intensive tasks of getting ready for an audit (and it’s virtually always the pre-audit process that takes up most of the time). Secureframe does so by integrating with the most-often used cloud and SaaS tools (it currently connects to about 25 services) and pulling in data from them to check up on your security posture.
“It feels a lot like a QuickBooks or TurboTax-like experience, where we’ll essentially ask you to enter basic details about your business. We try to autofill as much of it as possible from third-party sources — then we ask you to connect up all the integrations your business uses,” Mehta explained.
The company plans to use much of the new funding to staff up and build out these integrations. Over time, it will also add support for other certifications like PCI, HITRUST and HIPAA.
Contrast, a developer-centric application security company with customers that include Liberty Mutual Insurance, NTT Data, AXA and Bandwidth, today announced the launch of its security observability platform. The idea here is to offer developers a single pane of glass to manage an application’s security across its lifecycle, combined with real-time analysis and reporting, as well as remediation tools.
“Every line of code that’s happening increases the risk to a business if it’s not secure,” said Contrast CEO and chairman Alan Nauman. “We’re focused on securing all that code that businesses are writing for both automation and digital transformation.”
Over the course of the last few years, the well-funded company, which raised a $65 million Series D round last year, launched numerous security tools that cover a wide range of use cases from automated penetration testing to cloud application security and now DevOps — and this new platform is meant to tie them all together.
DevOps, the company argues, is really what necessitates a platform like this, given that developers now push more code into production than ever — and the onus of ensuring that this code is secure is now also often on that.
Traditionally, Nauman argues, security services focused on the code itself and looking at traffic.
“We think at the application layer, the same principles of observability apply that have been used in the IT infrastructure space,” he said. “Specifically, we do instrumentation of the code and we weave security sensors into the code as it’s being developed and are looking for vulnerabilities and observing running code. […] Our view is: the world’s most complex systems are best when instrumented, whether it’s an airplane, a spacecraft, an IT infrastructure. We think the same is true for code. So our breakthrough is applying instrumentation to code and observing for security vulnerabilities.”
With this new platform, Contrast is aggregating information from its existing systems into a single dashboard. And while Contrast observes the code throughout its lifecycle, it also scans for vulnerabilities whenever a developers check code into the CI/CD pipeline, thanks to integrations with most of the standard tools like Jenkins. It’s worth noting that the service also scans for vulnerabilities in open-source libraries. Once deployed, Contrast’s new platform keeps an eye on the data that runs through the various APIs and systems the application connects to and scans for potential security issues there as well.
The platform currently supports all of the large cloud providers like AWS, Azure and Google Cloud, and languages and frameworks like Java, Python, .NET and Ruby.
Project management service Wrike today announced a major update to its platform at its user conference that includes a lot of new AI smarts for keeping individual projects on track and on time, as well as new solutions for marketers and project management offices in large corporations. In addition, the company also launched a new budgeting feature and tweaks to the overall user experience.
The highlight of the launch, though, is, without doubt, the launch of the new AI and machine learning capabilities in Wrike . With more than 20,000 customers and over 2 million users on the platform, Wrike has collected a trove of data about projects that it can use to power these machine learning models.
The way Wrike is now using AI falls into three categories: project risk prediction, task prioritization and tools for speeding up the overall project management workflow.
Figuring out the status of a project and knowing where delays could impact the overall project is often half the job. Wrike can now predict potential delays and alert project and team leaders when it sees events that signal potential issues. To do this, it uses basic information like start and end dates, but more importantly, it looks at the prior outcomes of similar projects to assess risks. Those predictions can then be fed into Wrike’s automation engine to trigger actions that could mitigate the risk to the project.
Task prioritization does what you would expect and helps you figure out what you should focus on right now to help a project move forward. No surprises there.
What is maybe more surprising is that the team is also launching voice commands (through Siri on iOS) and Gmail-like smart replies (in English for iOS and Android). Those aren’t exactly core features of a project management tools, but as the company notes, these features help remove the overall friction and reduce latencies. Another new feature that falls into this category is support for optical character recognition to allow you to scan printed and handwritten notes from your phones and attach them to tasks (iOS only).
“With more employees working from home, work and personal life are becoming intertwined,” the company argues. “As workers use AI in their personal lives, team managers and everyday users expect the smarts they’re accustomed to in consumer devices and apps to help them manage their work as well. Wrike Work Intelligence is the most comprehensive machine learning foundation that taps into tens of millions of work-related user engagements to power cross-functional collaboration to help organizations achieve operational efficiency, create new opportunities and accelerate digital transformation. Teams can focus on the work that matters most, predict and minimize delays, and cut communication latencies.”
The other major new feature — at least if you’re in digital marketing — is Wrike’s new ability to pull in data about your campaigns from about 50 advertising, marketing automation and social media tools, which is then displayed inside the Wrike experience. In a fast-moving field, having all that data at your fingertips and right inside the tool where you think about how to manage these projects seems like a smart idea.
Somewhat related, Wrike’s new budgeting feature also now makes it easier for teams to keep their projects within budget, using a new built-in rate card to manage project pricing and update their financials.
“We use Wrike for an extensive project management and performance metrics system,” said Shannon Buerk, the CEO of engage2learn, which tested this new budgeting tool. “We have tried other PM systems and have found Wrike to be the best of all worlds: easy to use for everyone and savvy enough to provide valuable reporting to inform our work. Converting all inefficiencies into productive time that moves your mission forward is one of the keys to a culture of engagement and ownership within an organization, even remotely. Wrike has helped us get there.”
Last night Datto priced its IPO at $27 per share, the top end of its range that TechCrunch covered last week. The data and security-focused software company had targeted a $24 to $27 per-share IPO price range, meaning that its final per-share value was at the top of its estimates.
The Datto IPO won’t draw lots of attention; its business is somewhat dull, as selling software to managed service providers rarely excites. But, the public offering matters for a different reason: it gives us a fresh lens into today’s IPO market.
That lens is the perspective of slower, more profitable growth. What is that worth?
The value of quickly-growing and unprofitable software and cloud companies is well known. Snowflake made a splash earlier this year on the back of huge growth and enormous losses. Investors ate its shares up, pushing its valuation to towering heights. And this year we’ve even seen rapid growth and profits valued by public investors in the form of JFrog’s IPO.
But slower growth, software margins and profitability? Datto’s financial picture feels somewhat unique among the IPOs that TechCrunch has covered this year.
It’s a similar bet to the one that Egnyte is making; the enterprise software company crested $100 million ARR last year and announced that it grew by around 22% in the first half of 2020. And, it is profitable on an EBITDA basis. Therefore, the Datto IPO could provide a clue as to what companies like Egnyte and the rest of the late-stage startup crop content to grow more slowly, but with the benefit of actually making money.
Here are the deal’s nuts and bolts:
SoftBank’s Opportunity Growth Fund has made the health insurance startup Vitable Health the first commitment from its $100 million fund dedicated to investing in startups founded by entrepreneurs of color.
The Philadelphia-based company, which recently launched from Y Combinator, is focused on bringing basic health insurance to underserved and low-income communities.
Founded by Joseph Kitonga, a 23 year-old entrepreneur whose parents immigrated to the U.S. a decade ago, Vitable provides affordable acute healthcare coverage to underinsured or un-insured populations and was born out of Kitonga’s experience watching employees of his parents’ home healthcare agency struggle to receive basic coverage.
The $1.5 million commitment was led by the SoftBank Group Corp Opportunity Fund, and included Y Combinator, DNA Capital, Commerce Ventures, MSA Capital, Coughdrop Capital, and angels like Immad Akhund, the chief executive of Mercury Bank; and Allison Pickens, the former chief operating officer of Gainsight, the company said in a blog post.
“Good healthcare is a basic right that every American deserves, whoever they are,” said Paul Judge, the Atlanta-based Early Stage Investing Lead for the fund and the founder of Atlanta’s TechSquare Labs investment fund. “We’ve been inspired by Joseph and his approach to addressing this challenge. Vitable Health is bridging critical gaps in patient care and has emerged as a necessary, essential service for all whether they’re uninsured, underinsured, or simply need a better plan for their lifestyle.”
SoftBank created the opportunity fund while cities around the U.S. were witnessing a wave of public protests against systemic racism and police brutality stemming from the murder of the Black Minneapolis citizen George Floyd at the hands of white police officers. Floyd’s murder reignited simmering tensions between citizens and police in cities around the country over issues including police brutality, the militarization of civil authorities, and racial profiling.
SoftBank has had its own problems with racism in its portfolio this year. A few months before the firm launched its fund, the CEO and founder of one of its portfolio companies, Banjo, resigned after it was revealed that he once had ties to the KKK.
With the Opportunity Fund, SoftBank is trying to address some of its issues, and notably, will not take a traditional management fee for transactions out of the fund “but instead will seek to put as much capital as possible into the hands of founders and entrepreneurs of color.”
The Opportunity Fund is the third investment vehicle announced by SoftBank in the last several years. The biggest of them all is the $100 billion Vision Fund; then last year it announced the $2 billion Innovation Fund focused on Latin America.
Bradley Tusk has become known in recent years for being involved in what’s about to get hot, from his early days advising Uber, to writing one of the first checks to the insurance startup Lemonade, to pushing forward the idea that we should be using the smart devices in our pockets to vote.
Indeed, because he’s often at the vanguard, it wasn’t hugely surprising when Tusk, like a growing number of other investors, formed a $300 million SPAC or special acquisition company, one that he and a partner plan to use to target a business in the leisure, gaming, or hospitality industry, according to a regulatory filing.
Because Tusk — a former political operative who ran the successful third mayoral campaign for Mike Bloomberg — seems adept at seeing around corners, we called him up late last week to ask whether SPACs are here to stay, how a Biden administration might impact the startup investing landscape, and how worried (or not) big tech should be about this election. You can hear the full conversation here. Owing to length, we are featuring solely the part of our conversation that centered on SPACs.
BT: They are down today last I checked. When you only check once in a blue moon, you’re like, ‘Hey, look at how great this is,’ whereas if, like me, you check me every day, you’re like, ‘It lost 4%, where’s my money?’
We got really lucky; Lemonade was our second deal that we did out of our first fund, and the fact that it IPO’d within four years of the company’s founding is pretty amazing.
TC: Is it amazing? I wonder what it says about the common complaint that the traditional IPO process is bad — is it just an excuse?
BT: [CEO] Daniel Schrieber was very clear that he and [cofounder] Shai Wininger had a strategy from day one to go public as quickly as they possibly could, because in his view, an IPO is supposed to represent kind of the the beginning. It’s the ‘Okay, we’ve proven that there’s product market fit, we’ve proven that there’s customer demand; now let’s see what we can really do with this thing.’ And it’s supposed to be about hope and promise and future and excitement. And if you’ve been a private company for 10 years, and you’re worth tens of billions of dollars and your growth is already starting to flatten out a little bit, it’s just much less exciting for public investors.
The question now for everyone in our business is what happens with Airbnb in a few weeks or whenever they are [staging an IPO]. Will that pixie dust be there, or will they have been around so long that the market is kind of indifferent?
TC: Is that why we’re seeing so many SPACs? Some of that pixie dust is gone. No one knows when the IPO window might shut. Let’s get some of these companies out into the public market while we still can?
BT: No, I don’t I don’t think so. I think SPACs have become a way to raise a lot of money very quickly. It took me two years to raise $37 million for my first venture fund, and three months was the entire process for me to raise $300 million for my SPAC. So it’s a mechanism that is highly efficient and right now is so popular with public market investors that there is just a lot of opportunity, and people are grabbing it. In fact, now you’re hearing about people who are planning SPACs having to pull [them] back because there’s a ton of competition right now.
At the end of the day, the fundamentals still rule. If you take a really bad company public through a SPAC, maybe the excitement of the SPAC gets you an early pop. But if the company has neither good unit economics nor high growth, there’s no real reason to believe it will be successful. And especially for the people in the SPAC, where they have to hold on to it for a little while, by the time the lockup ends, the world has probably figured out that this is not the greatest IPO of all time. You can’t put lipstick on a pig.
TC: You say you raised the SPAC very quickly. How is the investor profile different than that of a typical venture fund investor?
BT: The investors for this SPAC — at least when I did the roadshow, and I think I did 28 meetings over a couple of days — is mainly hedge funds and people who don’t really invest in venture at all, so there was no overlap between my [venture fund] LP base and the people who invested in our SPAC that I’m aware of. These are public market investors who are used to moving very quickly. There’s a lot more liquidity in a SPAC. We have two years to acquire something, but ultimately, it’s a public property, so investors can come in and out as they see fit.
TC: So it’s mostly hedge funds that are getting paid management fees to deploy their capital in this comparatively safe way and that are getting interest on the money invested, too, while it’s sitting around in a trust while [the SPAC managers] look for a target company.
BT: Why it kind of does make sense for [them to back] VCs is they are basically making the bet to say: does this person running the SPAC have enough deal flow, enough of a public profile, enough going on that they are going to come across the right target? And venture investors in many ways fit that profile because we just look at so many companies before deploying capital.
TC: Do you have to demonstrate some kind of public markets expertise in order to convince some of these investors that you know what it takes to take a company public and grow it in the public markets?
BT: I guess. We raised the money, so I guess I passed the test. But I did spend a little under two years on Wall Street; I created the lottery privatization group of Lehman Brothers. And my partner [in the SPAC], Christian Goode, has a lot of experience with big gaming companies. But overall, I think that if you are a venture investor with a ton of deal flow and a good track record but very little or no public market experience, I don’t know that that would disqualify you from being able to rate a SPAC.
In the world of software development, one term you’re sure to hear a lot of is full-stack development. Job recruiters are constantly posting open positions for full-stack developers and the industry is abuzz with this in-demand title.
But what does full-stack actually mean?
Simply put, it’s the development on the client-side (front end) and the server-side (back end) of software. Full-stack developers are jacks of all trades as they work with the design aspect of software the client interacts with as well as the coding and structuring of the server end.
In a time when technological requirements are rapidly evolving and companies may not be able to afford a full team of developers, software developers that know both the front end and back end are essential.
In response to the coronavirus pandemic, the ability to do full-stack development can make engineers extremely marketable as companies across all industries migrate their businesses to a virtual world. Those who can quickly develop and deliver software projects thanks to full-stack methods have the best shot to be at the top of a company’s or client’s wish list.
So how can you become a full-stack engineer and what are the expectations? In most working environments, you won’t be expected to have absolute expertise on every single platform or language. However, it will be presumed that you know enough to understand and can solve problems on both ends of software development.
Full-stack is becoming the default way to develop, so much so that some in the software engineering community argue whether or not the term is redundant. As the lines between the front end and back end blur with evolving tech, developers are now being expected to work more frequently on all aspects of the software. However, developers will likely have one specialty where they excel while being good in other areas and a novice at some things….and that’s OK.
Since full-stack developers can communicate with each side of a development team, they’re invaluable to saving time and avoiding confusion on a project.
One common argument against full stack is that, in theory, developers who can do everything may not do one thing at an expert level. But there’s no hard or fast rule saying you can’t be a master at coding and also learn front-end techniques or vice versa.
One hold up you may have before diving into full-stack is you’re also mulling over the option to become a DevOps engineer. There are certainly similarities among both professions, including good salaries and the ultimate goal of producing software as quickly as possible without errors. As with full-stack developers, DevOps engineers are also becoming more in demand because of the flexibility they offer a company.
Hello and welcome back to Equity, TechCrunch’s venture-capital-focused podcast where we unpack the numbers behind the headlines.
It’s a big day in tech because the U.S. federal government is going after Google on anti-competitive grounds. Sure, the timing appears crassly political and the case is not picking up huge plaudits thus far for its air-tightness, but that doesn’t mean we can ignore it.
So Danny and I got on the horn to chat it up for about 10 minutes to fill you in. For reference, you can read the full filing here, in case you want to get your nails in. It’s not a complicated read. Get in there.
As a pair we dug into what stood out from the suit, what we think about the historical context and also noodled at the end about what the whole situation could mean for startups; it’s not all good news, but adding lots of competitive space to the market would be a net-good for upstart tech companies in the long-run.
And consumers. Competition is good.
Investors do not seem concerned that the Department of Justice filed an antitrust suit against Google earlier today.
The suit, seen by some as a stunt near the election, is one of a multi-part push to change the face of the technology industry, which has seen its wealth and power expand in recent years. For example, technology companies now constitute nearly 40% of the value of the S&P 500, ahead of a 1999-era 37% share, according to The Wall Street Journal.
At the same time, the rising tide lifting many tech boats has provided huge gains to its largest players as well. Alphabet, Microsoft, Amazon and Apple are each worth north of $1 trillion apiece, making them historically valuable companies even amidst an economic downturn.
Those market caps do not appear to be in danger.
Today after lunch during regular trading hours the tech-heavy Nasdaq Composite index is up 0.86%, while Alphabet is up 0.91%, directly in line with broader trading. Shares of Alphabet initially rose this morning before giving back their gains. However, since those morning lows, shares of the tech giant have recovered to edge ahead of the market.
Investor reaction could shift regarding Google’s antitrust liabilities in time. The Department of Justice suit is hardly the only legal issue that the search giant is currently grappling with. But not today.
Microsoft today announced its plans to launch a new data center region in Austria, its first in the country. With nearby Azure regions in Switzerland, Germany, France and a planned new region in northern Italy, this part of Europe now has its fair share of Azure coverage. Microsoft also noted that it plans to launch a new ‘Center of Digital Excellence’ to Austria to “to modernize Austria’s IT infrastructure, public governmental services and industry innovation.”
In total, Azure now features 65 cloud regions — though that number includes some that aren’t online yet. As its competitors like to point out, not all of them feature multiple availability zones yet, but the company plans to change that. Until then, the fact that there’s usually another nearby region can often make up for that.
Talking about availability zones, in addition to announcing this new data center region, Microsoft also today announced plans to expand its cloud in Brazil, with new availability zones to enable high-availability workloads launching in the existing Brazil South region in 2021. Currently, this region only supports Azure workloads but will add support for Microsoft 365, Dynamics 365 and Power Platform over the course of the next few months.
This announcement is part of a large commitment to building out its presence in Brazil. Microsoft is also partnering with the Ministry of Economy “to help job matching for up to 25 million workers and is offering free digital skilling with the capacity to train up to 5.5 million people” and to use its AI to protect the rainforest. That last part may sound a bit naive, but the specific plan here is to use AI to predict likely deforestation zones based on data from satellite images.
Google was clearly anticipating today’s U.S. Department of Justice antitrust complaint filing – the company posted an extensive rebuttal of the lawsuit to its Keyword company blog. The post, penned by SVP of Global Affairs and Google Chief Legal Officer Kent Walker, suggests that the DOJ’s case is “deeply flawed” and “would do nothing to help consumers,” before going into a platform-by-platform description of why it thinks its position in the market isn’t representative of unfair market dominance that would amount to antitrust.
Google’s blog post is even sprinkled with GIFs – something that’s pretty common for the search giant when it comes to its consumer product launches. These GIFs include step-by-step screen recordings of setting search engines other than Google as your default in Chrome on both mobile and desktop. These processes are both described as “trivially easy” by Walker in the post, but they do look like a bit of an own-goal when you notice just how many steps it takes to get the job done on desktop in particular, including what looks like a momentary hesitation in where to click to drill down further for the “Make Default” command.
Image Credits: Google
Google also reportedly makes reference to companies choosing their search engine as default because of the quality of their service, including both Apple and Mozilla (with a link drop for our own Frederic Lardinois). Ultimately, Google is making the argument that its search engine isn’t dominant because of a lack of viable options fostered by anti-competitive practices, but that instead it’s a result of building a quality product that consumers then opt in to using from among a field of choices.
The DOJ’s full suit dropped this morning, and an initial analysis suggests that this scrutiny is perhaps inopportunely timed in terms of its proximity to the election to actually have any significant teeth. There is some indication that a more broad, bipartisan investigation with support from state level attorney generals on both sides of the aisle could follow later, however, so it’s not necessarily all just going to go away regardless of election outcome.