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Realtime Robotics raises a $31M Series A

Boston-based Realtime Robotics this morning announced a $31.4 million round. The funding is part of the $11.7 million Series A the company announced all the way back in late 2019. Investors include HAHN Automation, SAIC Capital Management, Soundproof Ventures , Heroic Ventures, SPARX Asset Management, Omron Ventures, Toyota AI Ventures, Scrum Ventures and Duke Angels.

Realtime is one of a number of startups building control on top of industrial robotics. Specifically, the startup looks to help companies deploy systems with limited programming, offering adaptable controls that work for multiple systems at once.

This round, which nearly doubles the company’s existing funding, will be used to accelerate its product development and extend its offering to more markets, globally. It comes as interest in robotics have ramped up amid the global pandemic.

“This investment by some of the world’s leading manufacturers and automation providers stands as a testament to our ability to dramatically improve the value proposition for robotic implementations,” CEO Peter Howard says in a release. “Having already realized early deployment success, a broad spectrum of customers and partners are working closely with us to refine features and user experiences, readying our technology for rollouts in their engineering, factory and warehouse operations.”

The company’s offerings serve a wide range of different industrial robotics tasks, including pick and place machines, packaging and palletizing boxes.

 

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Architect Capital brings alternative capital to the early stage with new $100M fund

Early-stage startups are increasingly looking for alternative ways to access capital, meaning not every company wants to raise money from VCs or take on debt.

In recent years, a flurry of startups have emerged to give companies other options. (Think Pipe, for example.)

And today, San Francisco-based Architect Capital is a new firm that is launching with over $100 million in funds to serve as an “asset-based lender” to “high-growth,” early-stage tech companies. Specifically, the new firm aims to provide non-dilutive or less-dilutive financing options to asset-rich fintech, e-commerce and SaaS companies in the U.S. and Latin America, but with an emphasis on the latter. The region, Architect maintains, does not have a plethora of institutional financing available against assets.

The firm is not out to replace traditional venture capital or venture debt, emphasizes founder and CEO James Sagan, but rather to offer asset-based products that will complement them.

For some context, Sagan is no stranger to the startup world, having co-founded and served as managing partner of Arc Labs, an early-stage credit fund focused on lending to technology-enabled businesses. He’s been investing in Latin America for years, and recognized the need for new forms of financing to fund “novel and underappreciated assets.”

Also, he believes the region is home to “the most prominent fintech ecosystem in the world.”

To Sagan, traditional forms of equity and debt financing in the venture world are vital for things like growing headcount, but he believes they are “not engineered to support the growth of a company’s underlying financial products.”

“VC is highly dilutive and should be used for ROI activities such as hiring engineers and building great teams,” Sagan told TechCrunch. “It’s expensive to use equity to fund assets. Equity should not be put in a loan book. We’ll fund the loan book.”

Image Credits: Architect Capital founder James Sagan / Architect Capital

Architect’s goal is to provide “tailored and less dilutive funding,” especially to companies that produce repeatable revenues, such as SaaS and subscription businesses. 

Sagan said he first discovered the strategy in 2015 when he was working for a multifamily office that was lending against a bunch of traditional assets.

“A colleague and good friend of mine started a business and raised some equity and venture debt, but he couldn’t find the asset-specific financing for the receivables he was generating,” Sagan recalls. “He was lending to small businesses and needed asset-specific financing against those receivables.”

Venture debt doesn’t really work for receivables-based lending because venture debt shops typically are underwriting assets, or rather, underwriting the quality of the investors in the company, Sagan believes.

“So we really tailor our underwriting towards those assets themselves right and those assets range from unsecured consumer receivables to secure small business receivables to real estate,” he told TechCrunch. “Essentially, we’re providing an additional instrument for asset-heavy businesses that will allow them to scale in a way that venture debt will not.”

Architect’s LPs are mostly large institutions, as opposed to traditional high net worth individuals. The firm’s average check size will land at around $10 million to $15 million.

“Our portfolio allocation is more concentrated in general,” Sagan said. “We expect to grow our AUM (assets under management) pretty precipitously.”

Architect Capital has invested in six companies since inception, including PayJoy, a company that delivers consumer financing and smartphone technology to customers in emerging markets; Forum Brands, a U.S.-based e-commerce marketplace aggregator; and ADDI, a fintech that aims to give Colombian consumers access to fair and affordable credit through point-of-sale-financing that recently raised $65 million.

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Not on Nextdoor? You can still grab your neighbors’ stuff on Free Finds

Nextdoor, the app that helps neighbors connect, launched a new feature called Free Finds today, which will help people browse the free items available in their neighborhoods. Since the start of 2020, monthly listings to buy, sell and give away items on Nextdoor have increased by 80%, but 25% of these listings advertised free stuff. So, the company decided to create a more streamlined way to get the word out about cool, free stuff on the curbs of your neighborhood.

You don’t have to be a member of Nextdoor to scroll through the free listings. Typically, becoming a member can be a complicated process that requires you to verify your home address via snail mail. But now, whether you’re looking for a free blender or seeking your next trash-to-treasure upcycle project, you can browse what’s up for grabs in your neighborhood.

To contact the seller, you need to set up a free account and go through the standard Nextdoor sign-up process. If your cell service billing address is at the same address where you live, the sign-up process is quick — you can verify your address via text. But, if the addresses don’t match (read: if you’re still on your parents’ family plan), it can take up to 10 days to receive an invitation letter to become a verified Nextdoor member. By then, that lightly worn pair of boots might be long gone.

If you live in a densely populated area, you can probably find a neighborhood “free and for sale”-themed group pretty easily on Facebook. But, at the outset, Nextdoor adds a level of functionality by filtering items into categories, like “for young ones,” “for plant parents,” “spoil your pets” and “hidden treasures.” It could also appeal to those who don’t want to deal with browsing through multiple Facebook groups, including those that stretch beyond their neighborhood to nearby areas that would require a commute.

Nextdoor emphasizes the environmental benefits of a feature like Free Finds, which can help neighbors reduce waste when they discard perfectly usable items — instead, they can share resources with their neighbors. But more broadly, Free Finds is about leveraging people’s interest in free stuff to grow Nextdoor’s user base.

It also comes at a time when Facebook is threatening Nextdoor more directly. The tech giant launched its Neighborhoods feature in Canada last month, which is an obvious Nextdoor clone (Facebook copying other social media apps? Stop me if you’ve heard this one before). The feature should roll out soon for U.S. users.

Over the last year, Nextdoor has launched multiple initiatives that aim to support communities, like Sell for Good, which allowed users to sell items on the social network and donate proceeds to nonprofit causes. In response to the coronavirus outbreak, it also added features like Help Maps, Groups, a fundraising option for local businesses and a neighborly assistance program created with Walmart.

Still, some consumers have become understandably skeptical of neighborhood-based social media apps. The “Black Mirror”-adjacent crime-reporting app Citizen recently came under fire when its CEO Andrew Frame bribed users with $30,000 to catch an arsonist using the app’s new livestreaming service, but had targeted the wrong person. Nextdoor, meanwhile, had in the past developed such reputation for racial profiling that the company eventually had to roll out special tools to address this. Today, it still faces accusations of allowing unneighborly behavior, including political discussions and other posts that can make minority groups feel unwelcome or even unsafe.

Ultimately, investing in new products that encourage the opposite behavior — neighbors helping neighbors, as Free Finds offers — can only go so far to combat the app’s reputation.

The new Free Finds feature is live today in all the countries where Nextdoor operates at either nextdoor.com/freefinds or by visiting the Nextdoor Finds section in the Nextdoor app.

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Little Black Door launches app on iOS/Android allowing women to share wardrobes, online and off

Our relationship with fashion has changed, and not just because of the pandemic. Months in lockdown means people are probably more aware of their fashion purchases and how they consume, given its been such a long time without socializing. But the oft-talked about “Clueless” wardrobe, which would allow women to both see into their collections, as well as share and potentially borrow from friends, has yet to go mainstream. Now a U.K. startup aims to change this.

The Little Black Door app, previously in closed beta, has just launched on the Apple iOS store here and on Android.

The app allows women to share the content of their wardrobes in an Instagram-like manner by creating collections (“Lookbooks”), as well as curate their private wardrobe for their own use, with a focus on premium and luxury fashion. Women, says LBD, can “see, style and share”, as well as resell and borrow clothes offline.

The Lookbook feature allows women to share wardrobes collections with friends or followers in a controlled way, a feature that lets users borrow from each other.

Co-founder Lexi Willetts tells me: “We’d simply gotten to a point where we didn’t know what fashion we owned, given that almost every other area of life allows this. Most fashion can be easily dash-boarded on our phones — we couldn’t understand why our wardrobe wasn’t! Equally the effort required to list an item on resale was also super hard.”

Willetts and co-founder Marina Pengilly came up with the app when they realized they could make as much as £30,000 a year reselling their luxury clothes and accessories online. LBD is going after four key trends: the rise of resale (Depop etc); rentals like Rent the Runway; AI in e-commerce; and re-receipts.

Users upload their wardrobe by taking a photo of an item. The app will then recognize the item using computer vision. Lookbooks showcases fashion collections; new and old also have an “I have this” button, allowing users to add items to their own wardrobes, or add as they buy automatically via links to retailers.

Another key feature allows users to see into their own wardrobes to see what they have, and, crucially, see how much they’ve spent, and own, in value.

Users can also create a Lookbook, not unlike on Pinterest, which can be shared with friends or a wider fashion community in a public or private group-controlled way. Lookbooks can be shared with a user’s network to allow them to see your style, or borrow the outfit in real life. As well as this, LBD itself also curates a feed of fashion/lifestyle news and surveys.

Willetts says partnerships with retailers and supplier deals for sales and fashion repairs are also in the offing.

LBD competes with the Save Your Wardrobe’ app.

But it is pushing the fact that it places a greater emphasis on sharing the wardrobe as well, also allowing people to borrow items With this focus on premium and luxury fashion this makes it a truly social wardrobe, says LBD.

The business model is likely to be a Premium version that unlocks extra features, affiliate revenues, advertising, and resale commissions.

Disclosure: Mike Butcher was an early, informal, adviser.

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Register for Product Hunt’s Makers Festival for a chance to launch at Disrupt for free

Builders, creators and developers, this one’s for you! TechCrunch has always been about discovering fresh solutions and shining the light on exciting, new products that have the potential to make a difference. Our past hackathons have been the breeding ground for products like Alexa Shop Assist, Quick Insurance, reVIVE and GroupMe, which went on to be acquired by Skype.

This year, we’ve partnered with Product Hunt’s Makers Festival to give builders a platform to unleash their creativity and bring their ideas to reality — and even have a chance to get some exposure at Disrupt 2021. This Makers Festival is centered all around green tech and environmental ingenuity. As humans, our daily connections to the environment are all-encompassing, including how we eat, pay, invest, shop, advocate and travel. That means there are better solutions everywhere, too. Get inspired and ask yourself “what haven’t we tried yet?”

The grand prize winner will get a free spot to launch their product to the TechCrunch community at Disrupt 2021 in Startup Alley along with a bunch of other prizes and tools to help you kickstart your product.

So how do you participate?

Register here for free and get your creative juices flowing. Make sure you sign up asap as registration closes tomorrow, June 4. 

And who knows — maybe your product will be the next one snapped up at Disrupt!

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Gong going gangbusters, grabs $250M Series E on $7.25B valuation

Gong, the revenue intelligence startup, has been raising capital at a rapid pace, and today the company announced another $250 million on a $7.25 billion valuation, a number that triples its previous valuation from last summer.

Franklin Templeton led today’s festivities with participation from Coatue, Salesforce Ventures, Sequoia, Thrive Capital and Tiger Global. The company raised $200 million last August at a $2.2 billion valuation, and has now raised $584 million, $450 million coming in the last year.

What is making investors open their wallets and pull out such large sums of cash? The company is helping solve a hard problem on how to bring more intelligence to the revenue process. They do this by using artificial intelligence to listen to every customer interaction, whether that’s a sales or service call (or anything else), and use that information to determine valuable information like who is most likely to buy and who is most likely to churn.

It’s been going well and CEO Amit Bendov says the company’s performance really validates the valuation. While he wasn’t ready to discuss specific numbers, he did say that ARR grew 2.3x between Q1 last year and this year, and he says Q2 is on pace to triple ARR.

“The valuation is up about 3x from last summer, but sales are more than 3x. We have high logo customers. [Last year], it was still unclear how COVID was going to impact us. People believed [our business] was going to do well [during the pandemic], but it wasn’t as obvious. Now, it is obvious. And all the […] financials are way better, so from a pure financials [perspective] our multipliers are pretty reasonable for our revenue trajectory,” he said.

With all this growth, the company is adding employees at a rapid pace. It closed the year with 400 people, and is up to around 550 today with a goal of reaching 950 by year end. It has partnered with a consulting firm called ReadySet, which helps companies build diverse and inclusive organizations, and Bendov says they are an equal-pay company.

Women represent around 40% of the employees and around 4% are Black, a number he hopes to increase by growing the Atlanta office. In the office in Israel, he has set up employment and training programs to build bridges to the Arab community.

Bendov says he looks forward to meeting his U.S. employees in the coming weeks when he’ll be visiting the Atlanta office for the first time.

 

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One Concern raises $45M from SOMPO to scale its disaster resilience platform across Japan

Climate change is intensifying across the globe, and one of the most challenging cases is Japan. In addition to lying on a major fault, the archipelago is increasingly inundated from rising sea levels that make the country more prone to disasters. A decade ago, the Tohoku earthquake and tsunami dealt billions of dollars in damage, and the recovery from that tragedy remains a major international relations flashpoint.

Technology to address disasters and resilience is a key area of venture capital investment these days, and now another startup in the space is proving that there is widespread interest in this growing market.

One Concern, which builds a platform to model and simulate community resilience and response to earthquakes, floods and other natural disasters, announced this morning that it has raised $45 million from SOMPO Holdings, the holding company of Japan’s SOMPO, one of the country’s largest insurers. The investment is part of a total $100 million, multi-year deal that will plug One Concern’s platform into the Japanese market.

Japan has been something of a gem in One Concern’s market development the past few years. The startup hired Hitoshi Akimoto as country manager for Japan in late 2019 before formally announcing that it was expanding to Japan in February 2020. In August last year, it announced a strategic partnership with SOMPO, and the insurer’s holding company invested $15 million. Today’s deal expands that partnership further.

According to its press release, One Concern will sell its platform to six or more Japanese cities as part of the tie-up.

Previously, One Concern had raised three rounds of capital according to Crunchbase and SEC filings: a seed round in October 2015, a $33 million Series A round led by NEA in 2017 and a $37 million round also co-led by NEA. The company was founded in 2015.

Update June 3, 2021: Rephrased SOMPO Holdings as the parent company of SOMPO, and not its venture wing.

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Lightyear is a new stock trading app from early Wise employees

Meet Lightyear, a new London-based startup coming out of stealth today. The company is building a stock trading app with a focus on creating a truly commission-free app. In addition to waving account fees and trading fees, Lightyear doesn’t charge foreign exchange fees either — up to a certain point.

The two founders met when they were working at Wise — then known as TransferWise. That’s why it makes sense that Lightyear wants to stand out from the crowd with lower foreign exchange fees.

Martin Sokk, co-founder and CEO of Lightyear, worked at Wise between 2012 and 2017. He held various roles, such as head of product, head of people and head of operations. Mihkel Aamer, Lightyear’s other co-founder and CTO, was an engineering lead at Wise between 2013 and 2019.

“Having spent my career in financial services, I’ve seen the good, the bad and the ugly. I believe retail investing in Europe is still very much ‘the ugly’ — we’re talking about sneaky fees, less access and complicated products remaining as the status quo,” Aamer said in a statement. “We’re building something that will change that by opening up investing to everyone, whichever global market they want to invest in and however much they want to invest.”

As a user, you can expect a mobile app that lets you buy and sell shares and ETFs. There will be 1,500 stocks and ETFs from multiple markets at launch. Customers won’t pay any account fees, trading fees and foreign exchange fees. But there will be a limit on foreign exchange fees. After £3,000 per month, users will pay 0.35% in FX fees.

The app isn’t quite ready just yet, as Lightyear is opening up a waitlist today. The product should roll out at some point during the third quarter of this year.

Image Credits: Lightyear

Lightyear has raised a $1.5 million pre-seed funding round co-led by the new unnamed fund formed by Wise co-founder Taavet Hinrikus and Teleport co-founder Sten Tamkivi. This is their first investment through this new venture. Skype co-founder Jaan Tallinn is also co-leading the fund through Metaplanet. There are also several business angels participating in today’s funding round, including Checkout.com CTO Ott Kaukver, former president of Robinhood U.K. Wander Rutgers and Veriff founder Kaarel Kotkas.

It’s a nice list of investors, but the company will face tough competition from other startups — you’ll likely end up paying more fees if you use one of these competitors, but they’re already well established. For instance, Berlin-based stock trading app Trade Republic has recently raised $900 million. In the U.K., Freetrade has also managed to attract 600,000 users.

And yet, more importantly, Lightyear also competes with legacy brokers. Unlike in the U.S., the vast majority of retail investors still rely on traditional banks and web platforms for stock trading. There will be room for more than one company in this space. So let’s see how Lightyear executes in the coming months.

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Tinder tested group video chat ahead of Match’s move into social discovery with Hyperconnect deal

As dating app Tinder and its parent company Match explore the future of personal connection through apps, it’s interesting to see what sort of ideas it tested but later discarded. One such experiment was something called “Tinder Mixer,” which had briefly offered Tinder users a way to join group video chats, and “play games” with others nearby.

The feature was tested for a short period of time last year in New Zealand, we understand, but will not be launching.

The Tinder Mixer experience was uncovered by app researcher Alessandro Paluzzi, who found references the product in the Tinder Android app’s code. He had not yet publicized the finding, as we worked to learn more about the origins of the product.

The resources he found in the dating app had given the appearance of a product in the midst of development, Paluzzi noted, but as it turns out it was one that had already been tested and quickly shut down as Tinder continued its other, ongoing experiments in the dating market.

According to Tinder, the Tinder Mixer test has no impact on its product roadmap this year, and the Tinder Mixer experience described here will likely never come into existence.

That said, what made the product particularly intriguing was that it saw Tinder venturing, however briefly and experimentally, into more of a social discovery space, compared with the usual Tinder experience. Typically, Tinder users swipe on daters’ profiles, match, chat and sometimes even video call each other on a one-on-one basis. But live video chatting with a group is not something Tinder today offers.

That said, the idea of going live on video is not new to Match.

This is an area where the company has experimented before, including with its apps Plenty of Fish, which offers a one-to-many video broadcasting feature, and Ablo, which offers one-on-one video chats with people around the world. These experiments constitute what the company considers “dating-adjacent” experiences. In other words, you could meet someone through these video interactions, but that’s not necessarily their main goal.

These video experiences have continued even as Match announced its $1.73 billion acquisition of Seoul-based Hyperconnect — its biggest acquisition ever, and one that puts the company more on the path towards a future that involves the “social discovery” and live streaming market.

The company believes social discovery an area with vast potential, and a market it estimates that could be twice the size of dating, in fact.

Match Group CEO Shar Dubey spoke to this point recently at the JP Morgan Technology, Media and Communications Conference, noting that on some of its bigger platforms, Match has seen that a number of its users were looking for more of “a shared experience and a sense of community among other like-minded single people on the platform,” she said.

She noted that technology has reached a point where people could now interact with others through richer experiences than the traditional dating flow of swipe-match-chat allowed for, including few-to-few, many-to-many, and one-to-many type of experiences.

Hyperconnect brings to Match much of the technology that would allow the company to expand in these areas.

Today, it offers two apps, Azar and Hakuna Live, which let users to connect with one another online. The former, launched in 2014, is focused on one-on-one live video and voice chats while the latter, launched in 2019 is in the online broadcast space. Not coincidentally, these apps mirror the live stream experiences that Match has been running on Plenty of Fish and Ablo.

Because these live streaming services are often more heavily adopted by younger demographics, it makes sense that Match may have wanted to also test out such a live stream experience on Tinder, which also skews younger, even if the test ultimately only served as a way to collect data as opposed to informing a specific future product’s development.

With the Hyperconnect deal soon to be finalized, the incoming apps will initially give Match an expanded footprint in the live streaming and social discovery market in Asia — 75% of Hyperconnect’s usage and revenue comes from markets in Asia. Match then plans to leverage its international experience and knowledge to accelerate their growth in other markets where they haven’t yet broken through.

But another major reason for the acquisition is that Match sees the potential in deploying Hyperconnect’s technology across its existing portfolio of dating apps to not only create richer experiences but also to cater to users in markets where the “Western” way of online dating hasn’t yet been fully embraced, but social discovery has.

“We think there is real synergy of bringing some of these experiences that are popular in social discovery platforms onto our dating platforms, as well as sort of enhance the social discovery platforms and help people get to their dating intent, should they choose to,” Dubey explained, at the JP Morgan conference.

What any of that may mean for Tinder, more specifically, is not yet known.

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