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Qualified raises $51M to help Salesforce users improve their sales and marketing conversations

Salesforce dominates the world of CRM today, but while it’s a popular and well-used tool for organizing contacts and information, it doesn’t have all the answers when it comes to helping salespeople and marketers sell better, especially when meetings are not in person. Today, one of the startups that has emerged to help fill the gap is announcing a round of growth funding on the back of a huge year for its business.

Qualified — which builds better interactions for B2B sales and marketing teams that already use Salesforce by tapping into extra data sources to develop a better profile of those visiting your website, in aid of improving and personalizing the outreach (hence the name: you’re building “qualified” leads) — has picked up $51 million in funding. The startup will be using the Series B to continue building out its business with more functionality in the platform, and hiring across the board to expand business development and more.

Led by Salesforce Ventures, the funding round also included Norwest Venture Partners and Redpoint Ventures, both previous backers, among others. As with so many rounds at the moment — the venture world is flush with funding at the moment — this one is coming less than a year after Qualified’s last raise. It closed a $12 million Series A in August of last year.

Qualified was co-founded by two Salesforce veterans — ex-Salesforce CMO Kraig Swensrud and ex-SVP of Salesforce.com Sean Whiteley — serial entrepreneurs who you could say have long been hammering away at the challenges of building digital tools for sales and marketing people to do their jobs better online. The pair have founded and sold two other startups filling holes to that end: GetFeedback, acquired by SurveyMonkey, and Kieden, acquired by Salesforce.

The gap that they’re aiming to fill with this latest venture is the fact that when sales and marketing teams want to connect with prospects directly through, say, a phone call, they might have all of that contact’s information at their disposal. But if those teams want to make a more engaged contact when someone is visiting their site — a sign that a person is actually interested and thinking already about engaging with a company — usually the sales and marketing teams are in the dark about who those visitors are.

“We founded Qualified on the premise that a website should be more than a marketing brochure, but not just a sales site,” Swensrud, who is the CEO, said in an interview.

Qualified has built a tool that essentially takes several signals from Salesforce as well as other places to build up some information about the site visitor. It then uses it to give the sales and marketing teams more of a steer so that when they reach out via a screen chat to say “how can I help?” they actually have more information and can target their questions in a better way. A sales or marketing rep might know which pages a person is also visiting, and can then use the conversation that starts with an online chat to progress to a voice or video call, or a meeting.

If a person is already in your Salesforce Rolodex, you get more information; but even without that there is some detail provided to be slightly less impersonal. (Example: When I logged into Qualified to look around the site, a chat popped up with a person greeting me “across the pond”… I’m in London.)

Qualified also integrates with a number of other tools that are used to help source data and build its customer profiles, including Slack, Microsoft Teams, 6sense, Demandbase, Marketo, HubSpot, Oracle Eloqua, Clearbit, ZoomInfo and Outreach.

Additional data is part and parcel of the kinds of information that sales and marketing people always need when reaching out to prospective customers, whether it’s via a “virtual” digital channel or in person. However, in the last year — where in-person meetings, team meetings and working side-by-side with those who can give advice have all disappeared — having extra tools like these arguably have proven indispensable.

“Sales reps would heavily rely on their ‘road warrior’ image,” Swensrud said. “But all that stuff is gone, so as a result every seller is sitting at an office, at home, expecting digital interactions to happen that never existed before.”

And it seems some believe that even outside of COVID-19 enforcing a different way of doing things, the trend for “virtual selling”, as it’s often called, is here to stay: Gartner forecasts that by 2025, some 80% of B2B sales interactions will take place in digital channels. (So long to the expense account lunch, I guess.)

It’s because of the events of 2020, plus those bigger trends, that Qualified has seen revenues in the last year grow some 800% and its net customer revenue retention rate hover at 175%, with funding rounds come in relatively close succession in the wake of that.

There is something interesting to Qualified that reminds me a bit of more targeted ad retargeting, as it were, and in that, you can imagine a lot of other opportunities for how Qualified might expand in scenarios where it would be more useful to know why someone is visiting your site, without outright asking them and bothering them with the question. That could include customer service, or even a version that might sell better to consumers coming to, say, a clothes site after reading something about orange being the new black.

For now, though, it’s focused on the B2B opportunity.

There are a number of tools on the market that are competing with Salesforce as the go-to platform for people to organise and run CRM operations, but Swensrud is bullish for now on the idea of building specifically for the Salesforce ecosystem.

“Our product is being driven by and runs on Salesforce,” he noted, pointing out that it’s through Salesforce that you’re able to go from chatting to a phone call by routing the information to the data you have on file there. “Our roots go very deep.”

The funding round today is a sign that Salesforce is also happy with that close arrangement, which gives it a customization that its competitors lack.

“Qualified represents an entirely new way for B2B companies to engage buyers,” said Bill Patterson, EVP of CRM Applications at Salesforce, in a statement. “When marketing and inbound sales teams use this solution with Sales Cloud… they see a notable impact on pipeline. We are thrilled about our growing partnership with Qualified and their success within the Salesforce ecosystem.”

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Struum launches its ‘ClassPass for streaming’ service to the public

Struum, the new streaming service from former Disney and Discovery execs, is today officially launching to the public. Unlike traditional on-demand streamers, such as Netflix, the Struum model is more akin to a “ClassPass for streaming,” as its plan is to aggregate content from smaller video services then provide access under its own subscription.

Today, the streaming landscape is dominated by larger subscription services, including Netflix, Hulu, Amazon Prime Video, Apple TV+, HBO Max, Disney+ and YouTube, which together have a 75% share of the market, according to Nielsen. But Struum believes there’s a potential for another service powered by the long tail of the more than 250 niche and specialty streamers.

Many of these smaller services offer their own subscriptions, but will never achieve Netflix-size scale because of their more limited catalog and scope. Struum offers them an alternative path to revenue. Each month, Struum customers will pay a $4.99 subscription fee to access the Struum app where they’re then provided with 100 “credits” they can use to sample and consume content — just as ClassPass did with gym classes.

Over time, if the customer continues to use their subscription to routinely access content from one service, they can then opt to become a subscriber to that service from within the Struum app. This part of the business isn’t all that different from Amazon Prime Video Channels or others like it. But the difference is that Struum’s sampling model is what helped the customer discover the niche streamer in the first place.

Struum, meanwhile, generates its own revenue from customers’ subscriptions, which it shares with its content partners. It won’t say what sort of cut it takes, however.

Image Credits: Struum

At launch, there are more than 25 partners available through the Struum app, including Tastemade, Tribeca, Cheddar News, Kocowa, Dekkoo, Magellan TV, History Hit, Gusto, Young Hollywood, Indieflix, Filmbox, Echoboom Sports, Social Club TV, Cinedigm, Magnolia Pictures, Little Dot Studios, Group 9, Stingray and SPI/Filmhub.

Later this summer, the lineup will grow to more than 50 partners, with additions that include BBC SELECT, REVOLT, France Channels, InsightTV, Docubay, FuelTV, The Great Courses Signature Collection, Shout Factory TV, OUTtv, SVTV, CGOOD TV and Alchimie.

In total, Struum’s partners will provide customers with access to tens of thousands of movies and TV shows across a range of categories and genres, like classic films, indies, foreign content, cult hits, lifestyle programming, reality, true crime and more.

Image Credits: Struum

Struum’s app guides users to their interests through a simple interface where it curates content into editorial groupings organized much like the rows of recommendations you’d find in Netflix. This includes the company’s own picks (“Struum Selects”), as well as groupings by genre — like Comedy, Action Thrillers, LGBTQ + Documentaries, Class Movies, Incredible Science and others. You also can browse by type from categories across the top, to filter by only Movies, TV shows or Shorts.

When you find something you want to watch, you can click a button to stream the content for a certain amount of credits. You can then view that content at any time for the next 30 days and even download it for offline access.

At launch, Struum’s service is available on iOS and web, and supports AirPlay and Chromecast. This summer, it will expand to more platforms, including Android, Apple TV, Android TV, Amazon Fire TV and Roku.

Image Credits: Struum

The idea for the company comes from founders Lauren DeVillier, the former head of Product for Discovery Ventures; Eugene Liew, the former vice president of Product and Technology at Disney+; Paul Pastor, the former executive vice president of Strategy, Revenue and Operations at Discovery Networks; and Thomas Wadsworth, the former lead of Advanced Product Development for Walt Disney Imagineering.

The team came together in 2020, just before the COVID-19 pandemic broke out across the U.S., which drove increased demand for streaming content. And though that demand may be here to stay, it remains to be seen whether Struum’s ClassPass-like model makes the best sense for streaming’s long tail.

Despite its unique streaming business model, the service will effectively compete with AVOD (ad-supported video on demand) players in terms of aggregating both older and niche content. AVOD services — like Tubi, Pluto TV, The Roku Channel, IMDb TV and others — also help users who can’t find anything they want to watch on their preferred paid subscription apps. And they often aid consumers who are in search of a particular movie or show but don’t want to pay for a rental. Struum believes by aggregating content it can encourage these users to pay for yet another subscription.

In other words, Struum will have to convince users to change their existing TV habits in order to find success, and that’s a risky bet.

But Struum believes the fragmentation of the streaming market may actually work in its favor. As consumers get fed up with so many different services and content that jumps around as rights owners forge new licensing agreements, Struum could step in as someone’s fourth subscription.

“We view ourselves as the ultimate complementary service and a perfect fit for TV and film lovers who are increasingly frustrated by the costs, complexity and effort required to discover and watch what they want,” noted Struum CEO Lauren DeViller.

Struum is backed by a multimillion-dollar investment from former Disney CEO Michael Eisner through his firm, Tornante Company. Other investors include Firstlight Media, whose technology powers the video service, and Gaingels, which focuses on backing LGBTQ+ founders and allies.

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How Expensify shed Silicon Valley arrogance to realize its global ambitions

Expensify may be the most ambitious software company ever to mostly abandon the Bay Area as the center of its operations.

Expensify may be the most ambitious software company ever to mostly abandon the Bay Area as the center of its operations.

The startup’s history is tied to places representative of San Francisco: The founding team worked out of Peet’s Coffee on Mission Street for a few months, then crashed at a penthouse lounge near the 4th and King Caltrain station, followed by a tiny office and then a slightly bigger one in the Flatiron building near Market Street.

Thirteen years later, Expensify still has an office a few blocks away on Kearny Street, but it’s no longer a San Francisco company or even a Silicon Valley firm. The company is truly global with employees across the world — and it did that before COVID-19 made remote working cool.

“Things got so much better when we stopped viewing ourselves as a Silicon Valley company. We basically said, no, we’re just a global company,” CEO David Barrett told TechCrunch. That globalism led to it opening a major office in — of all places —a small town in rural Michigan. That Ironwood expansion would eventually lead to a cultural makeover that would see the company broadly abandon its focus on the Bay Area, expanding from a headquarters in Portland to offices around the globe.

It makes sense that a company founded by internet pirates would let its workforce live anywhere they please and however they want to. Yet, how does it manage to make it all work well enough to reach $100 million in annual revenue with just a tad more than 100 employees?

As I described in Part 2 of this EC-1, that staffing efficiency is partly due to its culture and who it hires. It’s also because it has attracted top talent from across the world by giving them benefits like the option to work remotely all year as well as paying SF-level salaries even to those not based in the tech hub. It’s also got annual fully paid month-long “workcations” for every employee, their partner and kids.

Yet the real story is how a company can become untethered from its original geography, willing to adapt to new places and new cultures, and ultimately, give up the past while building the future.

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Microsoft launches new tools for Teams developers

At its (virtual) Build conference today, Microsoft launched a number of new features, tools and services for developers who want to integrate their services with Teams, the company’s Slack competitor. It’s no secret that Microsoft basically looks at Teams, which now has about 145 million daily active users, as the new hub for employees to get work done, so it’s no surprise that it wants third-party developers to bring their services right to Teams as well. And to do so, it’s now offering a set of new tools that will make this easier and enable developers to build new user experiences in Teams.

There’s a lot going on here, but maybe the most important news is the launch of the enhanced Microsoft Teams Toolkit for Visual Studio and Visual Studio Code.

“This essentially enables developers to build apps easier and faster — and to build very powerful apps tapping into the rich Microsoft stack,” Microsoft group program manager Archana Saseetharan explained. “With the updated toolkit […], we enable flexibility for developers. We want to meet developers where they are.”

Image Credits: Microsoft

The toolkit offers support for tools and frameworks like React, SharePoint and .NET. Some of the updates the team enabled with this release are integration with Aure Functions, the SharePoint Framework integration and a single-line integration with the Microsoft Graph. Microsoft is also making it easier for developers to integrate an authorization workflow into their Teams apps. “Login is the first kind of experience of any user with an app — and most of the drop-offs happen there,” Saseetharan said. “So [single-sign on] is something we completely are pushing hard on.”

The team also launched a new Developer Portal for Microsoft Teams that makes it easier for developers to register and configure their apps from a single tool. ISVs will also be able to use the new portal to offer their apps for in-Teams purchases.

Other new Teams features for developers include ways for developers to build real-time multi-user experiences like whiteboards and project boards, for example, as well as a new meeting event API to build meeting-related workflows for when a meeting starts and ends, for example, as well as new features for the Teams Together mode that will let developers design their own Together experiences.

There are a few other new features here as well, but what it all comes down to is that Microsoft wants developers to consider Teams as a viable platform for their services — and with 145 million daily active users, that’s potentially a lucrative way for software firms to get their services in front of a new audience.

“Teams is enabling a new class of apps called collaborative apps,” said Karan Nigam, Microsoft’s director of product marketing for Teams. “We are uniquely positioned to bring the richness to the collaboration space — a ton of innovation to the extensibility side to make apps richer, making it easier with the toolkit update, and then have a single-stop shop with the developer portal where the entire lifecycle can be managed. Ultimately, for a developer, they don’t have to go to multiple places, it’s one single flow from the business perspective for them as well.”

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Twilio invests in adaptive communications platform Hyro

Hyro, formerly Airbud, is today announcing the close of a $10.5 million Series A financing round led by Spero Ventures, with participation from Twilio and Mindset Ventures. Existing investors Hanaco Ventures, Spider Capital and Entrepreneurs Roundtable Accelerator also participated in the round.

Hyro is an enterprise application, currently aimed at the healthcare sector but with eyes on new verticals, that adds an intelligent layer of voice chat or text chat to any application or website.

The company calls itself an adaptive communications platform, which essentially means that customers use plug-and-play tools to get information to end-users in a conversational way, whether that be voice or chat. It can integrate with contact centers, chatbots, SMS and other forms of communication. Essentially, Hyro targets information-heavy industries that often have to communicate with end-users.

This type of scenario, in the words of co-founder Israel Krush, usually leads to a terrible experience for the end user and a costly, inefficient process for the organization. The problem was no more apparent than in the healthcare sector during the pandemic. End users would flood platforms for information regarding the virus, the vaccine, testing, etc., but ask those redundant questions in myriad ways. On the enterprise side, the answers to those questions were changing over time.

Hyro allows these organizations to easily edit and change that information and deliver it to end users in an efficient way. But perhaps most importantly, Hyro scrapes information from the website to set up its own conversational tree, so the client doesn’t have to do a lot of heavy lifting up front.

Krush says that the problem is big, which means that the space is crowded. He views Twilio’s participation in this round of fundraising as a differentiator.

“The market is crowded so it’s really hard to differentiate yourself from the crowd,” said Krush. “Even though we have great technology, everyone says they have great technology. Twilio coming into this round and the partnership we’re trying to develop around contact centers really attests to the differentiation of our approach, to the scalability and the modularity of our approach.”

He added that Hyro is not a healthcare company — “it’s really about serving any enterprise.”

Hyro healthcare customers include Carroll, Wheelpros, Mercy Health, University of Rochester Medical Center and Weill Cornell Medicine, but the company plans to use this new funding to scale into more verticals, with an aim toward real estate, government and other information-heavy industries. 

This latest round brings Hyro’s total funding to $15 million.

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Flexibits updates contacts app Cardhop, adds deeper integration with Fantastical

Flexibits, the company behind productivity apps Fantastical and Cardhop, is releasing a new version of Cardhop for both macOS and iOS. This is the second major version of the app and it adds new features, such as business card scanning, widgets, organizational charts and a deeper integration with Fantastical.

Cardhop is a clever take on contact management. It uses the same address book as the default Contacts app on your Mac, iPhone and iPad. But it lets you search, add and edit contacts much more efficiently.

On the Mac, Cardhop sits in the menu bar. When you click on the icon or hit a keyboard shortcut, you can see your contacts but you can also start typing. This is when it gets interesting.

As expected, you can find a contact card by typing a few letters. But you can also add information to an existing contact this way.

Image Credits: Flexibits

For instance, if you type a name followed by a phone number, Cardhop automatically figures out that the phone number doesn’t exist in the existing contact entry — hit enter and the number is saved. If the person isn’t even in your address book, you can create a new contact just by dumping information in the search field.

The app truly shines if you think about Cardhop as a sort of command-line interface to interact with your contacts. You can type “call Jane”, “email Tom” or “whatsapp Natasha” — Cardhop parses the action for you. It can be particularly handy to initiate calls on your iPhone from your Mac.

With Cardhop 2, the design has been updated and there are a handful of new features. You can now create widgets with your favorite actions. On iOS, you can add it to your home screen. On macOS, you can access it from the Notification Center. Widgets have been a popular feature of iOS 14 and many users will like that new feature.

If you’re also using Fantastical, you can send a calendar invite to someone else from Cardhop. And if you tend to invite the same group of people to your events, you can create a group in Cardhop. The next time you want to send an invitation, you can create an event with everyone in the group from Cardhop. This is going to be a good alternative to email aliases.

Cardhop can now also generate organizational charts and family trees based on relationships in your contacts. And if you work for a big company with a contact directory, you could easily find the right person to talk with using this new feature.

On iOS, Flexibits has also added a business card scanning feature. You can add contacts just by pointing your phone at a business card. There are many apps that offer that feature already, but now it’s integrated.

Image Credits: Flexibits

Flexibits has been around for 10 years. Originally, the company released new major updates and users had to pay to download the new version. That’s how independent development companies used to charge for apps.

Last year, the company launched a new version of Fantastical with a freemium model. New users could download the app for free and would have to pay a subscription of $4.99 per month or $39.99 per year to unlock all features. Existing users could keep using the app for free as all existing features had been unlocked for them.

After switching to this new model, Flexibits released quite a few updates to Fantastical. For instance, you can now join conference calls quickly with shortcuts in the menu bar and in the app. Fantastical now also supports Zoom, Google Meet and Microsoft Teams.

Flexibits wants to go one step further and create an ecosystem of productivity apps. Cardhop 2 is a free app with a few free features. If you want to unlock everything, you have to subscribe to the same Flexibits Premium subscription.

In other words, the company is bundling premium versions of Fantastical and Cardhop in a single subscription — and the price isn’t changing. Existing Cardhop users who don’t want to subscribe will also keep everything that was available in Cardhop 1 for free.

And if you’re already using Cardhop, it’s nice to see an update. It means that the app is going to be supported going forward. When you rely on an app for your work, it’s better when it’s regularly updated and keeps working as expected year after year. And I suspect many Fantastical users will try out Cardhop thanks to the new Flexibits Premium subscription.

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Forter raises $300M on a $3B valuation to combat e-commerce fraud

E-commerce is on the rise, but that also means the risk, and occurrence, of e-commerce fraud is, too. Now, Forter, one of the startups building a business to tackle that malicious activity, has closed $300 million in funding — a sign both of the size of the issue and its success in tackling it to date.

The new funding, a Series F, values Forter at $3 billion — notable not least because the funding is coming only about six months since Forter’s previous round, a $125 million Series E that valued it at over $1.3 billion.

Tiger Global Management is leading this latest equity infusion, with new backers Third Point Ventures and Adage Capital Management, and existing investors Bessemer Venture Partners, Sequoia Capital, March Capital, NewView Capital, Salesforce Ventures and Scale Venture Partners, also involved.

The plan will be to use to the money to expand Forter — founded in Tel Aviv and now based in New York — geographically, bring more functionality into its product and explore adjacent areas where Forter might expand its capabilities, either organically or by way of acquisition.

Forter today focuses mainly on identifying fraud at the point of transaction and building an AI-based platform that “learns” more behaviors to improve its accuracy; it also builds models that keep more people transacting and helps bring down the number of “false positives” where activity that appears suspicious actually is not.

One area on its roadmap for expansion is remediation after the fraud occurs, said Liron Damri, Forter’s co-founder and president.

“Our vision is to serve the merchant as the go-to trusted partner for everything, so remediation is definitely on our roadmap,” he said of potential acquisition targets.

Damri, who co-founded the company with Michael Reitblat, CEO, and Alon Shemesh, chief analyst, said in an interview that the startup — which works with some 350 large customers like Priceline and Instacart and a growing number of service providers like FreedomPay and Flutterwave, altogether seeing some $250 billion worth of transactions globally last year — wasn’t proactively looking for more money.

“All we wanted to do was go back to run the company,” he said. “But in the past six months we’ve seen such a great momentum, doubling revenue and ARR, and seeing our customer volumes grow.”

That led to a lot of investors proactively reaching out and asking questions, he continued. He described Tiger as a “kingmaker” in the category of e-commerce, so it was an easy decision to make, and gave it the “gas” it needed to take its next growth steps.

E-commerce has been one of the major technology growth stories of the last year, fueled by a rush of consumers and businesses playing out their lives online at a time when it has been harder, and in some cases impossible, to transact in person.

While we have definitely seen a lot of growth, and growing sophistication, in the number of tools on the market to combat cybercrime, it’s in some ways an ouroboros of a problem: The more transactions that are made, the more there are that need to be monitored for suspicious activity. And in any case, fraud in e-commerce is not exactly going away. It’s estimated that it will cost retailers some $20 billion in 2021 and is always on the rise.

Forter got its start in 2013 focusing first on monitoring activity on sites wherever customers happened to be to identify suspicious behavior — a sign that it might be a bot or someone on an illicit spending spree racking up a lot of items in quick succession — with the bigger concept being to build a network of activity from which to learn and help make more informed decisions over time.

In more recent years, the essence of the issue has expanded somewhat, and also grown more sophisticated. As companies have grown their businesses to reach beyond early adopters and core audiences, and into a more “omnichannel” environment beyond basic check-outs on their own sites, so too have the kinds of consumers coming to shop.

This has meant that traditional “signals” of legitimate buyers no longer were the same as before — a predicament that really rose in profile in the last year, as many newcomers came to e-commerce for the first time during the pandemic. In fact, Damri told me that in 2020 there were seven times more “newcomers” to sites than in 2019.

So with most of the flagging of suspicious activity coming up at the point of transaction, Forter expanded to analyzing activity there.

As with a recent acquisition of Stripe’s, Bouncer, to build out its own anti-fraud product, a large part of Forter’s attention these days is on providing tools to companies to identify suspicious purchasing, but even more than that, to make sure that the many occasions that might look suspicious are not, to help reduce the amount of “cart abandonment” and increase conversions.

The old way of doing things, Damri said, involved “thousands of rules and applying suspicion on everyone. You were guilty unless proved otherwise.”

Using its AI engine and some risk analysis (not unlike the kind that, say, an insurance or loan provider might apply in their businesses), Forter turned the proposition on its head.

“We wanted to approve as much as possible. We wanted to gradually increase the trust you have of your own customers. We changed the sentiment and approach… especially in areas that were neglected, such as those who saw significant changes in life,” Damri said. “This was extremely important as COVID-19 hit.”

Forter’s risk tolerance model, it seems, has so far proven out. Damri said that its algorithms applied reduce the total number of declines by 80%, but also reduce the number of chargebacks — one indicator of a mistake — by 60%.

This implies that it’s blocking more of the “wrong” kind of purchases, and letting through more of the legitimate ones. (That is, he pointed out, in addition to a few bad actors Forter intentionally lets buy things, just to learn how they operate. Damri referred to this as “paid-tuition.”)

Risk-based approvals, coupled with algorithms to learn what is truly bad, has resonated with customers, and investors.

“With the unprecedented rate of digital transformation and the fierce competition in creating the slickest user experience, superior fraud prevention plays an ever more critical role in e-commerce revenue growth” said John Curtius, a partner at Tiger Global Management, in a statement. “After we talked with dozens of customers of every relevant solution in this space, it was very clear to us that Forter is the clear leader in performance and scale.”

“As a longtime investor, it’s been incredible to see Forter’s ascent,” added Ravi Viswanathan, NewView Capital. “It’s a testament to the leadership team’s vision and execution in allowing merchants to provide the seamless experiences customers expect and to be able to accept as many transactions as possible, while still accurately identifying and blocking fraud.”

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Sinch, a Swedish customer engagement giant, raises $1.1B, SoftBank and Temasek participating

Sinch — a Twilio competitor based out of Sweden that provides a suite of services to companies to build communications and specifically “customer engagement” into their services by way of APIs — has been on a steady funding and acquisitions march in the last several months to scale its business, and today comes the latest development on that front.

The company has announced that it has raised another $1.1 billion in a direct share issue, with significant chunks of that funding coming from Temasek and SoftBank, in order to continue building its business.

Specifically, the company — which is traded on the Swedish stock exchange Nasdaq Stockhom and currently has a market cap of around $11 billion — said that it was making a new share issue of 7,232,077 shares at SEK 1,300 per share, raising approximately SEK 9.4 billion (equivalent to around $1.1 billion at current rates).

Sinch said that investors buying the shares included “selected Swedish and international investors of institutional character,” highlighting that Temasek and SB Management (a direct subsidiary of SoftBank Group Corp.) would  respectively take SEK 2,085 million and 0.7 million shares. This works out to a $252 million investment for Temasek, and $110 million for SoftBank.

SoftBank last December took a $690 million stake in Sinch (when it was valued at $8.2 billion). That was just ahead of the company scooping up Inteliquent in the U.S. in January for $1.14 billion to move a little closer to Twilio’s home turf.

Sinch is not saying much more beyond the announcement of the share issue for now, except that the raise was made to shore up its financial position ahead of more M&A activity.

“Sinch has an active M&A-agenda and a track record of successful acquisitions, making [it] well placed to drive continued consolidation of the messaging and [communications platform as a service, CPaaS] market,” it said in a short statement. “Furthermore, the increased financial flexibility that the directed new share issue entails further strengthens the Company’s position as a relevant and competitive buyer.”

The company is profitable and active in more than 40 markets, and CEO Oscar Werner said in Sinch’s most recent earnings report that in the last quarter alone that its communications APIs — which work across channels like SMS, WhatsApp, Facebook Messenger, chatbots, voice and video — handled 40 billion mobile messages.

Notably, its strategy has a strong foothold in the U.S. because of the Inteliquent acquisition. It will be interesting to see how and if it continues to consolidate to build up market share in that part of the world, or whether it focuses elsewhere, given the heft of two very strong Asian investors now in its stable. 

“Becoming a leader in the U.S. voice market is key to establish Sinch as the leading global cloud communications platform,” said Werner in January.

While Sinch has focused much of its business, as has Twilio, around an API-based model focused on communications services, its acquisition of Inteliquent also gave it access to a large, legacy Infrastructure-as-a-Service (IaaS) product set, aimed at telcos to provide off-net call termination (when a call is handed off from one carrier to another) and toll-free numbers.

Tellingly, when Sinch acquired Inteliquent, the two divisions each accounted for roughly half of its total business, but the CPaaS business is growing at twice the rate of IaaS, which points to how Sinch views the future for itself, too.

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Flush with $42M, hot AI startup Faculty plans to hoover up more PhDs… and steer clear of politics

In the wake of the news that U.K.-based AI startup Faculty has raised $42.5 million in a growth funding round, I teased out more from CEO and co-founder Marc Warner on what his plans are for the company.

Faculty seems to have an uncanny knack of winning U.K. government contracts, after helping Boris Johnson win his Vote Leave campaign and thus become prime minister. It’s even helping sort out the mess that Brexit has subsequently made of the fishing industry, problems with the NHS and telling global corporates like Red Bull and Virgin Media what to suggest to their customers. Meanwhile, it continues to hoover up PhD graduates at a rate of knots to work on its AI platform.

But, speaking to me over a call, Warner said the company no longer has plans to enter the political sphere again: “Never again. It’s very controversial. I don’t want to make out that I think politics is unethical. Trying to make the world better, in whatever dimension you can, is a good thing … But from our perspective, it was, you know, ‘noisy,’ and our goal as an organization, despite current appearances to the contrary, is not to spend tonnes of time talking about this stuff. We do believe this is an important technology that should be out there and should be in a broader set of hands than just the tech giants, who are already very good at it.”

On the investment, he said: “Fundamentally, the money is about doubling down on the U.K. first and then international expansion. Over the last seven years or so we have learned what it takes to do important AI, impactful AI, at scale. And we just don’t think that there’s actually much of it out there. Customers are rightly sometimes a bit skeptical, as there’s been hype around this stuff for years and years. We figured out a bunch of the real-world applications that go into making this work so that it actually delivers the value. And so, ultimately, the money is really just about being able to build out all of the pieces to do that incredibly well for our customers.”

He said Faculty would be staying firmly HQ’d in the U.K. to take advantage of the U.K.’s talent pool: “The U.K. is a wonderful place to do AI. It’s got brilliant universities, a very dynamic startup scene. It’s actually more diverse than San Francisco. There’s government, there’s finance, there are corporates, there’s less competition from the tech giants. There’s a bit more of a heterogeneous ecosystem. There’s no sense in which we’re thinking, ‘Right, that’s it, we’re up and out!’. We love working here, we want to make things better. We’ve put an enormous amount of effort into trying to help organizations like the government and the NHS, but also a bunch of U.K. corporates in trying to embrace this technology, so that’s still going to be a terrifically important part of our business.”

That said, Faculty plans to expand abroad: “We’re going to start looking further afield as well, and take all of the lessons we’ve learned to the U.S., and then later Europe.”

But does he think this funding round will help it get ahead of other potential rivals in the space? “We tend not to think too much in terms of rivals,” he says. “The next 20 years are going to be about building intelligence into the software that already exists. If you look at the global market cap of the software businesses out there, that’s enormous. If you start adding intelligence to that, the scale of the market is so large that it’s much more important to us that we can take this incredibly important technology and deploy it safely in ways that actually improve people’s lives. It could be making products cheaper or helping organizations make their services more efficient.”

If that’s the case, then does Faculty have any kind of ethics panel overseeing its work? “We have an internal ethics panel. We have a set of principles and if we think a project might violate those principles, it gets referred to that ethics panel. It’s randomly selected from across faculty. So we’re quite careful about the projects that we work on and don’t. But to be honest, the vast majority of stuff that’s going on is very vanilla. They are just clearly ‘good for the world’ projects. The vast majority of our work is doing good work for corporate clients to help them make their businesses that bit more efficient.”

I pressed him to expand on this issue of ethics and the potential for bias. He says Faculty “builds safety in from the start. Oddly enough, the reason I first got interested in AI was reading Nick Bostrom’s work about superintelligence and the importance of AI safety. And so from the very, very first fellowship [Faculty AI researchers are called Fellows] all the way back in 2014, we’ve taught the fellows about AI safety. Over time, as soon as we were able, we started contributing to the research field. So, we’ve published papers in all of the biggest computer science conferences Neurips, ICM, ICLR, on the topic of AI safety. How to make algorithms fair, private, robust and explainable. So these are a set of problems that we care a great deal about. And, I think, are generally ‘underdone’ in the wider ecosystem. Ultimately, there shouldn’t be a separation between performance and safety. There is a bit of a tendency in other companies to say, ‘Well, you can either have performance, or you can have safety.’ But of course, we know that’s not true. The cars today are faster and safer than the Model T Ford. So it’s a sort of a false dichotomy. We’ve invested a bunch of effort in both those capabilities, so we obviously want to be able to create a wonderful performance for the task at hand, but also to ensure that the algorithms are fair, private, robust and explainable wherever required.”

That also means, he says, that AI might not always be the “bogeyman” the phrase implies: “In some cases, it’s probably not a huge deal if you’re deciding whether to put a red jumper or a blue jumper at the top of your website. There are probably not huge ethical implications in that. But in other circumstances, of course, it’s critically important that the algorithms are safe and are known to be safe and are trusted by both the users and anyone else who encounters them. In a medical context, obviously, they need to be trusted by the doctors and the patients need to make sure they actually work. So we’re really at the forefront of deploying that stuff.”

Last year the Guardian reported that Faculty had won seven government contracts in 18 months. To what does he attribute this success? “Well, I mean, we lost an enormous number more! We are a tiny supplier to government. We do our best to do work that is valuable to them. We’ve worked for many, many years with people at the home office,” he tells me.

“Without wanting to go into too much detail, that 18 months stretches over multiple prime ministers. I was appointed to the AI Council under Theresa May. Any sort of insinuations on this are just obviously nonsense. But, at least historically, most of our work was in the private sector and that continues to be critically important for us as an organization. Over the last year, we’ve tried to step up and do our bit wherever we could for the public sector. It’s facing such a big, difficult situation around COVID, and we’re very proud of the things we’ve managed to accomplish with the NHS and the impact that we had on the decisions that senior people were able to undertake.”

Returning to the issue of politics I asked him if he thought — in the wake of events such as Brexit and the election of Donald Trump, which were both affected by AI-driven political campaigning — AI is too dangerous to be applied to that arena? He laughed: “It’s a funny old funny question… It’s a really odd way to phrase a question. AI is just a technology. Fundamentally, AI is just maths.”

I asked him if he thought the application of AI in politics had had an outsized or undue influence on the way that political parties have operated in the last few years: “I’m afraid that is beyond my knowledge,” he says. But does Faculty have regrets about working in the political sphere?

“I think we’re just focused on our work. It’s not that we have strong feelings, either way, it’s just that from our perspective, it’s much, much more interesting to be able to do the things that we care about, which is deploying AI in the real world. It’s a bit of a boring answer! But it is truly how we feel. It’s much more about doing the things we think are important, rather than judging what everyone else is doing.”

Lastly, we touched on the data science capabilities of the U.K. and what the new fundraising will allow the company to do.

He said: “We started an education program. We have roughly 10% of the U.K.’s PhDs in physics, maths, engineering, applying to the program. Roughly 400 or so people have been through that program and we plan to expand that further so that more and more people get the opportunity to start a career in data science. And then inside Faculty specifically, we think we’ll be able to create 400 new jobs in areas like software engineering, data science, product management. These are very exciting new possibilities for people to really become part of the technology revolution. I think there’s going to be a wonderful new energy in Faculty, and hopefully a positive small part in increasing the U.K. tech ecosystem.”

Warner comes across as sincere in his thoughts about the future of AI and is clearly enthusiastic about where Faculty can take the whole field next, both philosophically and practically. Will Faculty soon be challenging that other AI leviathan, DeepMind, for access to all those PhDs? There’s no doubt it will.

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2 CEOs are better than 1

Netflix has two CEOs: Co-founder Reed Hastings oversees the streaming side of the company, while Ted Sarandos guides Netflix’s content.

Warby Parker has co-CEOs as well — its co-founders went to college together. Other companies like the tech giant Oracle and luggage maker Away have shifted from having co-CEOs in recent years, sparking a wave of headlines suggesting that the model is broken.

It’s impossible to be in two places at once or clone yourself. With co-CEOs, you can effectively do just that.

While there isn’t a lot of research on companies with multiple CEOs, the data is more promising than the headlines would suggest. One study on public companies with co-CEOs revealed that the average tenure for co-CEOs, about 4.5 years, was comparable to solitary CEOs, “suggesting that this arrangement is more stable than previously believed.”

The study’s authors also found that co-CEOs were spread across industry types and that splitting the role can “complement each other in terms of educational background or executive responsibilities.”

I serve as co-CEO of an organic meal delivery company with my sister Laureen. Having two CEOs has helped us take Fresh n’ Lean to new heights. We closed 2020 with $87 million in revenue, more than double from the year before, and project similar growth this year.

We complement each other well, and the results bear that out. During the decade that we’ve served as co-CEOs, the company has grown from a very small team to 475 full-time employees and 40 part-time employees. We’ve delivered more than 17 million meals, launched four different meal lines, expanded our retail offerings, partnered with some great names in sports and fitness, and saw our annual revenues climb exponentially.

The leadership structure isn’t for every company, but it’s been a great fit for Fresh n’ Lean. Here’s why.

Divide and conquer to shorten your learning curve by 50%

Laureen launched the company in 2010 out of her one-bedroom apartment.

“Those early years were especially tough,” she said. “I consistently worked 20-hour days as I performed just about every role — cooking dishes, preparing labels, making deliveries and performing customer service duties. I was devoting so much energy into product, packaging and logistics, but in order for the company to grow, I needed help with marketing, tech and finance.”

Those areas happened to be my strengths. There was too much for one person to oversee as CEO and not enough hours in the day. But given the equal challenges that both sides of the company presented and the trust we shared, it made sense for us to be side by side on the organizational chart.

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