FreshRSS

🔒
❌ About FreshRSS
There are new available articles, click to refresh the page.
Before yesterdayYour RSS feeds

Xometry is taking its excess manufacturing capacity business public

By Alex Wilhelm

Xometry, a Maryland-based service that connects companies with manufacturers with excess production capacity around the world, filed an S-1 form with the U.S. Securities and Exchange Commission announcing its intent to become a public company.

As the global supply chain tightened during the pandemic in 2020, a company that helped find excess manufacturing capacity was likely in high demand. CEO and co-founder Randy Altschuler described his company to TechCrunch this way last September upon the announcement of a $75 million Series E investment:

“We’ve created a marketplace using artificial intelligence to power it, and provide an e-commerce experience for buyers of custom manufacturing and for suppliers to deliver that manufacturing,” Altschuler said at the time. Xometry raised nearly $200 million while private, per Crunchbase data.

With Xometry, companies looking to build custom parts now have the ability to do so in a digital way. Rather than working the phones or starting an email chain, they can go into the Xometery marketplace, define parameters for their project and find a qualified manufacturer who can handle the job at the best price.

As of last September, the company had built relationships with 5,000 manufacturers around the world and had 30,000 customers using the platform.

At the time of that funding round, perhaps it wasn’t a coincidence that the company’s lead investor was T. Rowe Price. When an institutional investor is involved in a late-stage round, it’s usually a sign that the company is ready to start thinking about an IPO. Altschuler said it was definitely something the company was considering, and had brought on a CFO, too, another sign that a company is ready to take that next step.

So what do Xometry’s financials look like as it heads to the public markets? We took a look at the S-1 to find out.

The numbers

Xometry makes money in two ways. The first comes from one part of its marketplace, with the company generating “substantially all of [its] revenue” from charging “buyers on its platform.” The other way that Xometry engenders top-line is seller-related services, including financial work. The company notes that seller-generated revenues were just 5% of its 2020 total, though it does expect that figure to rise.

Settle raises $15M from Kleiner Perkins to give e-commerce companies more working capital

By Mary Ann Azevedo

Alek Koenig spent four years at Affirm, where he was head of credit.

There he saw firsthand just how powerful the alternative lending model could be. Koenig realized that it wasn’t just consumers who could benefit from the model, but businesses too.

So in November 2019, he founded Settle as a way to give e-commerce and consumer packaged goods (CPG) companies access to non-dilutive capital. (Not every company wants to raise venture money). By June 2020, the startup had launched its platform, which is designed to help these businesses manage their cash flow. Over time, he recruited a previous co-worker, Shane Morian, to serve as Settle’s CTO.

And today, the company is announcing that it has raised $15 million in a Series A funding round led by Kleiner Perkins. This follows a previously unannounced $6 million seed raise led by Founders Fund in November 2020. Other investors in the company include SciFi (Affirm founder Max Levchin’s VC firm), Caffeinated Capital, WorkLife Ventures, Background Capital and AngelList Venture CEO Avlok Kohli.

With the pandemic leading to a massive shift toward digital and online shopping, ecommerce and CPG businesses found themselves with the challenge of keeping up with demand while trying to manage their cash flow. The main problem was the lag between accounts receivables and accounts payables.

“These companies suffer from the problem where there are these huge cash flow gaps from buying inventory, waiting to receive it and then turning it into revenue,” Koenig explains. “It takes quite a bit of time for these customers to actually get revenue from all those inventory purchases they need to make. What we do is make it really easy for companies to pay their vendors with extended payment terms.”

Settle does this by automatically syncing to a business’ accounting software and combining that with working capital products it’s developed.

Put simply, Settle will pay a vendor, and then brands can pay Settle back when they turn that COGS (cost of goods sold) into revenue. The startup says it also saves brands money on expensive wire fees.

Image Credits: Settle

“Businesses really value getting cash sooner, so they can use it in their operations,” Koenig said. “We’ve worked to reimagine the CFO suite for brands, starting with integrated financing and bill pay solutions.”

The concept of non-dilutive capital is not a new one with other startups tackling the space in different ways. For example, Pipe aims to give SaaS companies a way to get their revenue upfront, by pairing them with investors on a marketplace that pays a discounted rate for the annual value of those contracts.

Settle is focused on the e-commerce vertical, and building a unique product for that category, Koenig says, rather than trying to build a product aimed for several different industries.

“We don’t want to be a mediocre product for everybody,” he told TechCrunch. “But rather a phenomenal product for this vertical.”

Since its launch last June, Settle has seen its business jump by 1000% although it’s important to note that’s from a small base. Settle is currently working with over 300 brands including baby stroller retailer Lalo, Spiceology and men’s skincare brand Disco. So far, all of its growth has been organic.

“Last year when the pandemic hit, offline retail shut down and ecommerce got a big boost. But that meant that a lot of these companies were running out of orders and were out of stock on many items, so they were just kind of leaving money on the table,” Koenig said. “Once they started using us, they were able to buy more inventory, so we actually help them make more profit, and not just create more sales.”

His reasoning for that last statement is that by giving these businesses the ability to purchase items in bulk, they could get cheaper price per unit costs as well as cheaper shipping costs.

The company is planning to use its new capital in part to grow its team of 20, as well as raise more debt so that it can continue lending money to businesses.

Kleiner Perkins’ Monica Desai Weiss said her firm believes that Koenig and CTO Morian’s expertise in underwriting, capital markets and e-commerce give the pair “a rare skill set that’s unique to their market.”

She’s also drawn to the company’s embedded approach.

“Whereas most lending businesses are fairly transactional and opportunistic, Settle becomes deeply embedded in the way their merchants forecast and grow,” she told TechCrunch. “That approach has demonstrated inherent virality and their timing is perfect — the past year has changed consumer behaviors permanently and also produced massive opportunities for global entrepreneurship via ecommerce. In that way, we see the umbrella of e-commerce expanding massively in the coming years, and we believe Settle will be key to enabling that shift.”

Egyptian furniture marketplace Homzmart lands $15M Series A for MENA expansion

By Tage Kene-Okafor

In most parts of Africa and the Middle East, a consumer journey and experience in buying furniture is not fun. A typical shopping process would entail looking out for the best price and quality and asking for recommendations and checking offline stores, one after another.

It is rare to find one-stop shops, especially large offline ones, that can adequately cater to the needs of consumers in the MENA region. Home goods and furniture marketplaces have launched in the last three years around the region to meet this need. Egypt’s Homzmart is one such, and today the company is announcing it has closed its $15 million Series A investment.

The company was founded in 2019 by Mahmoud Ibrahim and Ibrahim Mohamed, but it didn’t launch until the first quarter of 2020. This round of financing follows a $1.3 million seed investment raised in February last year. According to the company, this brings the total amount raised to $17.2 million. 

China’s MSA Capital, one of the investors in Homzmart’s seed round, co-led this Series A investment alongside Nuwa Capital. Other participating investors include EQ2 Ventures, Impact46, Outliers Capital, Nuwa Capital and Rise Capital.

The furniture industry in Egypt has been historically characterized by poor accessibility for consumers. Homzmart’s marketplace collects designs, price ranges and other details of its retailers’ products and solves high distribution costs for them by providing access to consumers who have flexible financing options. In addition, Homzmart said it incorporates AI to optimize content for retailers and intelligent tools to help customers with their purchasing decisions.

“As a marketplace, we stand between the supply and demand. So we connect furniture and home goods suppliers with consumers,” CEO Mahmoud Ibrahim told TechCrunch in an interview. “It’s almost like a big hassle to buy furniture in Africa and the Middle East. And I think it’s a pain all over the world when it comes to having a place that you can shop all your needs when it comes to home products.”

Over the last 12 months, Homzmart claims to have grown 30x in sales. It also showcases more than 55,000 products from thousands of brands and merchants. The online marketplace is tapping into the rapidly expanding $8 billion industry where 14 million customers in the region search online for furniture monthly.

Homzmart

Ibrahim Mohamed (COO) and Mahmoud Ibrahim (CEO)

When Homzmark kicked off its hard launch and raised its seed round, it was right at the start of the pandemic. Ibrahim said the company was uncertain that it would survive due to anticipated behavioral changes in consumer spending. But the opposite happened. Customers in Egypt grew to like the product, resulting in more sales like most marketplaces and e-commerce platforms witnessed this past year.

“At the beginning, we were very worried and not sure how customers would react to buying furniture during the pandemic in the Middle East online. So we’re actually amazed by the traction as it seemed like the region was waiting for something like this to happen.”

The growth experienced within the pandemic was one reason MSA Capital decided to double down on the startup. As stated by Ben Harburg, the firm’s general partner, “The pandemic exposed the extreme vulnerabilities and inefficiencies of the Middle East’s archaic offline retail ecosystem, logistics and supply chain. Into the void stepped Homzmart as the next-generation, digitally enabled online marketplace and optimized logistics provider for large-item retail addressing both consumer and enterprise customers.

Another reason behind the investment, the firm said, is the vast experience of both founders in e-commerce and fulfillment. Ibrahim was the VP of Operations for Jumia Egypt before becoming the Group COO of Daraz, a Southeast Asian company acquired by Alibaba in 2018. Mohamed is also a Jumia alumnus and was part of the logistics development and expansion team in Egypt

Although their experience with different verticals in everyday commerce in Jumia and Daraz was invaluable, the founders chose to launch in the niche furniture market instead of building a similar model as their former employers. “We decided this was a really good vertical that we needed to focus on and hold ourselves accountable to digitizing in the region,” Ibrahim said about developing the niche product.

Homzmart’s first year in business was all about understanding supply and demand. The next couple of years is a strategy to expand across the MENA region, helping fulfill demand from a young and fast-growing consumer middle class.

“Whatever we did in Egypt, we need to do across the region. Homzmart isn’t looking to be just an Egyptian platform, rather a regional platform,” the CEO said.

The company has strategically launched operations close to Damietta City, Egypt, to focus on this regional market opportunity. The city is known to be one of the largest furniture manufacturing hubs in the Middle East and thus allows Homzmart to streamline the region’s vertical industry supply chain. An integral part of this supply chain is handling logistics and the movement of products from merchants to buyers. The company said a sizeable tranche of investments would be used for this effort.

What’s next for the company when logistics is handled?

“I’ll say the thing that keeps me awake at night is the fact that our business is growing very fast. And we need to make sure that we’re building the right institutional infrastructure for that business, to make sure that after two or three years, we’re building like a very solid, multi-billion dollar business,” Ibrahim remarked.

Bosta raises $6.7M to expand e-commerce delivery business across Africa and MENA

By Tage Kene-Okafor

Per a recent report by Bain & Co., e-commerce is expected to grow to $28.5 billion in MENA by 2022 from a 2019 value of $8.3 billion. Egypt, one of the most active e-commerce countries in the region, is anticipated to grow 33% annually to reach $3 billion by 2022.

But for any e-commerce business to thrive, its last-mile delivery arm has to be well figured out. Bosta is one such company in Egypt helping small businesses with logistics and last-mile delivery. Today, the company is announcing it has closed a Series A investment of $6.7 million. U.S. and Middle East VC firm Silicon Badia led the round, with participation from 4DX Ventures, Plug and Play Ventures, Wealth Well VC, Khwarizmi VC, as well as other regional and global investors

This investment comes a year after the company raised a $2.5 million round, which takes its total investment raised to $9.2 million.

Bosta was launched in 2017 by Mohamed Ezzat and Ahmed Gaber. The company offers next-day delivery to customers and handles exchange shipments, customer returns and cash collection.

The idea for Bosta came during Ezzat’s time at Lynks, his previous consumer goods startup. Lynks, the first YC-backed company from Egypt, allows people in Egypt to buy brands from the U.S., China and the U.K.

As co-founder and COO at Lynks, Ezzat was responsible for logistics, international clearance and last-mile delivery. In 2016, Egypt experienced an economic downturn coupled with the Egyptian pound devaluation and government restriction on imports. For Lynks it meant slow growth, but Ezzat was concerned about fixing the last-mile delivery bit, which, according to him, was a huge pain point.

“My nightmare was always the last mile. And at that time, you know that e-commerce is still very, very small. So it’s only 1% of the whole retail value,” he told TechCrunch. “So I was always thinking, how come if we want the e-commerce to grow, and we don’t have any strong company when it comes to last-mile because, in the end, every transaction on an e-commerce platform is a transaction on a courier platform.”

E-commerce is a fragmented sector where 80% of transactions come from small businesses selling on Facebook, Instagram and social media in general. Most of these businesses lack a strong delivery experience, and Ezzat left Lynks the following year to start Bosta

Being in the parcel delivery industry, Bosta wants to help these companies to grow profitably. It also tries to simplify logistics and allow its customers to have full control over the delivery process.

“You can use Bosta to get anything to your doorstep. You buy in our local currency, and we buy everything, handle the shipping, customs, clearance and bring it to your doorstep,” the CEO added.

The company doesn’t own fleets of vehicles to carry out operations. Instead, it operates an Uber-like model where drivers sign up, are made contractors and make money when a delivery is completed.  

Since 2017, the company has delivered more than 4 million packages to businesses, more than half since the pandemic outbreak last year. Bosta completes more than 300,000 deliveries per month, which is a 3.5x increase from when it raised its previous round, Ezzat stated. He also claims that more than 2,200 businesses use its platform daily and achieve a 95% delivery success rate.

Asides from small businesses, Bosta works with major e-commerce platforms like Souq (an Amazon company) and Jumia. Depending on the volume of goods transported, Bosta charges small businesses about 35-40 Egyptian pounds, while the big players are charged less, at 20-25 Egyptian pounds.

Speaking on the investment, Fawaz H Zu’bi said in a statement: “E-commerce has always had amazing potential in our region but was always being held back by something whether payments, logistics, market fragmentation, or customer adoption. We are excited to finally see companies like Bosta emerge to tackle some of these issues and help e-commerce realize its full promise and potential in a region that has now ‘turned on’ digitally.”

In the next two years, Bosta plans to deliver more than 15 million parcels in Egypt and serve over 20,000 businesses. The funds will be used for those causes, as well as expanding operations across Africa, MENA and the GCC.

“The investment is to dominate Egypt,” said Ezzat. “We want to make sure that we deliver the next day across Egypt, not just in Cairo, where we currently do. And to be a market leader when it comes to e-commerce on the continent and be profitable. This is the main target for us now and also to start operations in Saudi Arabia.”

Colgate-Palmolive, Coca-Cola and Unilever join AB Inbev’s sustainable supply chain accelerator

By Jonathan Shieber

A clutch of the world’s largest consumer products and food companies are joining Budweiser’s parent company Anheuser-Busch InBev in backing an investment program to support early stage companies focused on making supply chains more sustainable.

The Earth Day-timed announcement comes as companies and consumers confront the failure of recycling programs to adequately address the problems associated with plastic waste — and broader issues around the contributions of consumer behavior and industrial production and distribution to the current climate emergency.

The AB InBev program, called the 100+ Accelerator, launched in 2018 with the goal to solve supply chain challenges in water stewardship, the circular economy, sustainable agriculture and climate action, the company said. These are problems that the alcohol manufacturer’s new partners — Colgate-Palmolive; Coca-Cola; and Unilever are also intimately familiar with.

Since the launch of the accelerator and investment program, AB InBev has backed 36 companies in 16 countries, according to a statement. Those startups have gone on to raise more than $200 million in follow on financing.

The accelerator program creates funding for pilot programs and offers opportunities for early stage companies to consult with executive management at the world’s top consumer brands.

Since the program’s launch, AB InBev has worked with startups to pilot returnable packaging programs; implement new cleaning technologies to reduce water and energy use in Colombian brewing operations; provide insurance to small farms in Africa and South America; collect more waste in Brazil; recycle electric vehicle batteries in China; and upcycle grains waste from the brewing process to create new, nutrient rich food sources.

As pressures from outside investors and regulators mount, companies are beginning to shift their attention to focus on ways to make their industrial processes more sustainable.

These kinds of collaborative initiatives among major corporations, which are long overdue, have the potential to make a significant contribution to reducing the environmental footprint of business, but it depends on the depth of the commitment and the speed at which these businesses are willing to deploy solutions beyond a few small pilot programs.

Applications for the latest cohort will be due by May 31, 2021.

 

Saltbox raises $10.6M to help booming e-commerce stores store their goods

By Mary Ann Azevedo

E-commerce is booming, but among the biggest challenges for entrepreneurs of online businesses are finding a place to store the items they are selling and dealing with the logistics of operating.

Tyler Scriven, Maxwell Bonnie and Paul D’Arrigo co-founded Saltbox in an effort to solve that problem.

The trio came up with a unique “co-warehousing” model that provides space for small businesses and e-commerce merchants to operate as well as store and ship goods, all under one roof. Beyond the physical offering, Saltbox offers integrated logistics services as well as amenities such as the rental of equipment and packing stations and access to items such as forklifts. There are no leases and tenants have the flexibility to scale up or down based on their needs.

“We’re in that sweet spot between co-working and raw warehouse space,” said CEO Scriven, a former Palantir executive and Techstars managing director.

Saltbox opened its first facility — a 27,000-square-foot location — in its home base of Atlanta in late 2019, filling it within two months. It recently opened its second facility, a 66,000-square-foot location, in the Dallas-Fort Worth area that is currently about 40% occupied. The company plans to end 2021 with eight locations, in particular eyeing the Denver, Seattle and Los Angeles markets. Saltbox has locations slated to come online as large as 110,000 square feet, according to Scriven.

The startup was founded on the premise that the need for “co-warehousing and SMB-centric logistics enablement solutions” has become a major problem for many new businesses that rely on online retail platforms to sell their goods, noted Scriven. Many of those companies are limited to self-storage and mini-warehouse facilities for storing their inventory, which can be expensive and inconvenient. 

Scriven personally met with challenges when starting his own e-commerce business, True Glory Brands, a retailer of multicultural hair and beauty products.

“We became aware of the lack of physical workspace for SMBs engaged in commerce,” Scriven told TechCrunch. “If you are in the market looking for 10,000 square feet of industrial warehouse space, you are effectively pushed to the fringes of the real estate ecosystem and then the entrepreneurial ecosystem at large. This is costing companies in significant but untold ways.”

Now, Saltbox has completed a $10.6 million Series A round of financing led by Palo Alto-based Playground Global that included participation from XYZ Venture Capital and proptech-focused Wilshire Lane Partners in addition to existing backers Village Capital and MetaProp. The company plans to use its new capital primarily to expand into new markets.

The company’s customers are typically SMB e-commerce merchants “generating anywhere from $50,000 to $10 million a year in revenue,” according to Scriven.

He emphasizes that the company’s value prop is “quite different” from a traditional flex office/co-working space.

“Our members are reliant upon us to support critical workflows,” Scriven said. 

Besides e-commerce occupants, many service-based businesses are users of Saltbox’s offering, he said, such as those providing janitorial services or that need space for physical equipment. The company offers all-inclusive pricing models that include access to loading docks and a photography studio, for example, in addition to utilities and Wi-Fi.

Image Credits: Saltbox

Image Credits: Saltbox

The company secures its properties with a mix of buying and leasing by partnering with institutional real estate investors.

“These partners are acquiring assets and in most cases, are funding the entirety of capital improvements by entering into management or revenue share agreements to operate those properties,” Scriven said. He said the model is intentionally different from that of “notable flex space operators.”

“We have obviously followed those stories very closely and done our best to learn from their experiences,” he added. 

Investor Adam Demuyakor, co-founder and managing partner of Wilshire Lane Partners, said his firm was impressed with the company’s ability to “structure excellent real estate deals” to help them continue to expand nationally.

He also believes Saltbox is “extremely well-positioned to help power and enable the next generation of great direct to consumer brands.”

Playground Global General Partner Laurie Yoler said the startup provides a “purpose-built alternative” for small businesses that have been fulfilling orders out of garages and self-storage units.

Saltbox recently hired Zubin Canteenwalla  to serve as its chief operating offer. He joined Saltbox from Industrious, an operator co-working spaces, where he was SVP of Real Estate. Prior to Industrious, he was EVP of Operations at Common, a flexible residential living brand, where he led the property management and community engagement teams.

Autodesk acquires Upchain

By Frederic Lardinois

Autodesk, the publicly-traded software company best known for its CAD and 3D modeling tools, today announced that it has acquired Upchain, a Toronto-based startup that offers a cloud-based product lifecycle management (PLM) service. The two companies, which didn’t disclose the acquisition price, expect the transaction to close by July 31, 2021.

Since its launch in 2015, Upchain raised about $7.4 million in funding, according to Crunchbase. The central idea behind the service was that existing lifecycle management solutions, which are meant to help businesses take new products from inception production and collaborate with their supply chain in the process, were cumbersome and geared toward large multi-national enterprises. Upchain’s focus is on small and mid-sized companies and promises to be more affordable and usable than other solutions. It’s customer base spans a wide range of industries, ranging from textiles and apparel to automotive, aerospace, industrial machines, transportation and entertainment.

“We’ve had a singular focus at Upchain to up-level cloud collaboration across the entire product lifecycle, changing the way that people work together so that everyone has access to the data they need, when they need it,” Upchain CEO and founder John Laslavic said in today’s announcement. “Autodesk shares our vision for radically simplifying how engineers and manufacturers across the entire value chain collaborate and bring a top-quality product to market faster. I look forward to seeing how Upchain and Autodesk, together, take that vision to the next level in the months and years to come.”

For Autodesk, this is the company’s 15th acquisition since 2017. Earlier this year, the company made its first $1 billion acquisition when it bought Portland, OR-based Innovyze, a 35-year-old company that focuses on modeling and lifecycle management for the water management industry. 

“Resilience and collaboration have never been more critical for manufacturers as they confront the increasing complexity of developing new products. We’re committed to addressing those needs by offering the most robust end-to-end design and manufacturing platform in the cloud,” said Andrew Anagnost, President and CEO of Autodesk. “The convergence of data and processes is transforming the industry. By integrating Upchain with our existing offerings, Autodesk customers will be able to easily move data without barriers and will be empowered to unlock and harness valuable insights that can translate to fresh ideas and business success.”

This Y Combinator startup is taking lab-grown meat upscale with elk, lamb and Wagyu beef cell lines

By Jonathan Shieber

Last week a select group of 20 employees and guests gathered at an event space on the San Francisco Bay, and, while looking out at the Bay Bridge dined on a selection of choice elk sausages, wagyu meatloaf, and lamb burgers — all of which were grown from a petrie dish.

The dinner was a coming out party for Orbillion Bio, a new startup pitching today in Y Combinator’s latest demo day, that’s looking to take lab-grown meats from the supermarket to high end, bespoke butcher shops.

Instead of focusing on pork, chicken and beef, Orbillion is going after so-called heritage meats — the aforementioned elk, lamb and Wagyu beef to start.

By focusing on more expensive end products, Orbillion doesn’t have as much pressure to slash costs as dramatically as other companies in the cellular meat market, the thinking goes.

But there’s more to the technology than its bourgie beef, elite elk, and luscious lamb meat.

“Orbillion uses a unique accelerated development process producing thousands of tiny tissue samples, constantly iterating to find the best tissue and media combinations,” according to Holly Jacobus, whose firm, Joyance Partners, is an early investor in Orbillion. “This is much less expensive and more efficient than traditional methods and will enable them to respond quickly to the impressive demand they’re already experiencing.”

The company runs its multiple cell lines through a system of small bioreactors. Orbillion couples that with a high throughput screening and machine learning software system to build out a database of optimized tissue and media combinations. “The key to making lab grown meat work scalably is choosing the right cells cultured in the most efficient way possible,” Jacobus wrote.

Co-founded by a deeply technical and highly experienced team of executives that’s led by Patricia Bubner, a former researcher at the German pharmaceutical giant Boehringer Ingelheim. Joining Bubner is Gabriel Levesque-Tremblay, a former director of the American Institute of Chemical Engineers, who was a post-doc at Berkeley with Bubner and serves as the company’s chief technology officer. Rounding out the senior leadership is Samet Yildirim, the chief operating officer at Orbillion and a veteran executive of Boehringer Ingelheim (he actually served as Bubner’s boss).

Orbillion Bio co-founders Gabriel Levesque-Tremblay, CTO, Patricia Bubner, CEO, and Samet Yildirim, COO. Image Credit: Orbillion Bio

For Bubner, the focus on heritage meats is as much a function of her background growing up in rural Austria as it is about economics. A longtime, self-described foodie and a nerd, Bubner went into chemistry because she ultimately wanted to apply science to the food business. And she wants Orbillion to make not just meat, but the most delicious meats.

It’s an aim that fits with how many other companies have approached the market when they’re looking to commercialize a novel technology. Higher end products, or products with unique flavor profiles that are unique to the production technologies available are more likely to be commercially viable sooner than those competing with commodity products. Why focus on angus beef when you focus on a much more delicious breed of animal?

For Bubner, it’s not just about making a pork replacement, it’s about making the tastiest pork replacement.

“I’m just fascinated and can see the future in us being able to further change the way we produce food to be more efficient,” she said. “We’re at this inflection point. I’m a nerd, i’m a foodie and I really wanted to use my skills to make a change. I wanted to be part of that group of people that can really have an impact on the way we eat. For me there’s no doubt that a large percentage of our food will be from alternative proteins — plant based, fermentation, and lab-grown meat.”

Joining Boehringer Ingelheim was a way for Bubner to become grounded in the world of big bioprocessing. It was preparation for her foray into lab grown meat, she said.

“We are a product company. Our goal is to make the most flavorful steaks. Our first product will not be whole cuts of steak. The first product is going to be a Wagyu beef product that we plan on putting out in 2023,” Bubner said. “It’s a product that’s going to be based on more of a minced product. Think Wagyu sashimi.”

To get to market, Bubner sees the need not just for a new approach to cultivating choice meats, but a new way of growing other inputs as well, from the tissue scaffolding needed to make larger cuts that resemble traditional cuts of meat, or the fats that will need to be combined with the meat cells to give flavor.

That means there are still opportunities for companies like Future Fields, Matrix Meats, and Turtle Tree Scientific to provide inputs that are integrated into the final, branded product.

Bubner’s also thinking about the supply chain beyond her immediate potential partners in the manufacturing process. “Part of my family were farmers and construction workers and the others were civil engineers and architects. I hold farmers in high respect… and think the people who grow the food and breed the animals don’t get recognition for the work that they do.”

She envisions working in concert with farmers and breeders in a kind of licensing arrangement, potentially, where the owners of the animals that produce the cell lines can share in the rewards of their popularization and wider commercial production.

That also helps in the mission of curbing the emissions associated with big agribusiness and breeding and raising livestock on a massive scale. If you only need a few animals to make the meat, you don’t have the same environmental footprint for the farms.

“We need to make sure that we don’t make the mistakes that we did in the past that we only breed animals for yield and not for flavor,” said Bubner. 

Even though the company is still in its earliest days, it already has one letter of intent, with one of San Francisco’s most famous butchers. Guy Crims, also known as “Guy the Butcher” has signed a letter of intent to stock Orbillion Bio’s lab grown Wagyu in his butcher shop, Bubner said. “He’s very much a proponent of lab-grown meat.”

Now that the company has its initial technology proven, Orbillion is looking to scale rapidly. It will take roughly $3.5 million for the company to get a pilot plant up and running by the end of 2022 and that’s in addition to the small $1.4 million seed round the company has raised from Joyant and firms like VentureSoukh.

“The way i see an integrated model working later on is to have the farmers be the breeders of animals for cultivated meat. That can reduce the number of cows on the planet to a couple of hundred thousand,” Bubner said of her ultimate goal. “There’s a lot of talking about if you do lab grown meat you want to put me out of business. It’s not like we’re going to abolish animal agriculture tomorrow.”

Image Credit: Getty Images

Investors Clara Brenner, Quin Garcia and Rachel Holt are coming to TC Sessions: Mobility 2021

By Kirsten Korosec

The transportation industry is abuzz with upstarts, legacy automakers, suppliers and tech companies working on automated vehicle technology, digital platforms, electrification and robotics. Then there are shared mobility companies from cars to scooters and mopeds to e-bikes. And who can forget the emerging air taxi companies?

At the center of this evolving industry are the investors. Simply put: TechCrunch can’t hold an event on mobility without hearing from the people who are hunting for the best opportunities in the industry and tracking all of its changes. That’s why we’re happy to announce investors Clara Brenner of Urban Innovation Fund, Quin Garcia of Autotech Ventures and Rachel Holt of Construct Capital will join us on our virtual stage at TC Sessions: Mobility 2021. The virtual event, which features the best and brightest minds in the world of mobility, will be held on June 9.

p.s. Early Bird tickets to the show are now available — book today and save 35% before prices go up.

Brenner, Garcia and Holt will come onstage to discuss their near and long-term investment strategies, overlooked opportunities and challenges that face startups trying to break into the transportation sector. They’ll lean on their considerable experience to provide the advice and insight that will help attendees understand the state of the industry and where it is headed.

Brenner is a serial co-founder. She is co-founder and managing partner of the Urban Innovation Fund, a venture capital firm that provides seed capital and regulatory support to entrepreneurs solving urban challenges. Urban Innovation Fund has backed curbflow, Electriphi and Kyte among others. She also co-founded Tumml, a startup hub for urban tech that provided 38 startups with seed funding and mentorship, and hosts events around urban innovation. In 2014, Forbes listed her as one of its “30 Under 30” for Social Entrepreneurship.

Garcia, a lifelong “car guy” with an MS degree in management science and automotive engineering from Stanford University, is managing director at Autotech Ventures. He’s also a board director, board observer and advisory board member to a number of mobility companies, including Lyft, Peloton Technology and Connected Signals.

Garcia has been on the ground floor of startups, notably as part of the initial team at the electric vehicle infrastructure startup Better Place, where he was responsible for partnerships with automakers and parts suppliers while living in Israel, Japan and China.

Holt is co-founder and managing partner of early-stage venture firm Construct Capital, which is focused on finding founders that are trying to change foundational industries such as manufacturing and supply chain, logistics and transportation. The company’s transportation-focused investments include ChargeLab. Holt also sits on the board of MotoRefi.

Prior to Construct, Holt was at Uber, where she was one of the company’s first 30 employees. During her 8.5-year stint at Uber, Holt rose through the ranks of the company, including roles running the U.S. and Canada “Rides” business as well as global marketing and customer support. She was a longtime member of the company’s executive leadership team. Her last position at Uber was leading the company’s new mobility organization, which focused on its e-bike and scooter businesses as well as running its incubator, which funded and developed new products and services.

Holt began her career at Bain & Company, advising companies in the private equity, financial services and healthcare industries. She was ranked No. 9 on Fortune’s 40 under 40 and was named by Fast Company as One of the Most Creative People in Business.

We can’t wait to hear from this investor panel at TC Sessions: Mobility on June 9. Make sure to grab your Early Bird pass before May 6 to save 35% on tickets and join the fun!

Desperate Gamers Camp Out in the Pandemic for $700 GPUs

By Cecilia D'Anastasio
Months after the Nvidia GeForce RTX 3080's launch, the lines at brick-and-mortar stores across the country can still wrap around the block.

The Batteries of the Future Are Weightless and Invisible

By Daniel Oberhaus
There’s a renaissance underway in structural battery research, which aims to build energy storage into the very devices and vehicles they power.
❌