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Exeger takes $38M to ramp up production of its flexible solar cells for self-powered gadgets

Sweden’s Exeger, which for over a decade has been developing flexible solar cell technology (called Powerfoyle) that it touts as efficient enough to power gadgets solely with light, has taken in another tranche of funding to expand its manufacturing capabilities by opening a second factory in the country.

The $38 million raise is comprised of $20M in debt financing from Swedbank and Swedish Export Credit Corporation (SEK), with a loan amounting to $12M from Swedbank (partly underwritten by the Swedish Export Credit Agency (EKN) under the guarantee of investment credits for companies with innovations) and SEK issuing a loan amounting to $8M (partly underwritten by the pan-EU European Investment Fund (EIF)); along with $18M through a directed share issue to Ilija Batljan Invest AB.

The share issue of 937,500 shares has a transaction share price of $19.2 — which corresponds to a pre-money valuation of $860M for the solar cell maker.

Back in 2019 SoftBank also put $20M into Exeger, in two investments of $10M — entering a strategic partnership to accelerate the global rollout of its tech and further extending its various investments in solar energy.

The Swedish company has also previously received a loan from the Swedish Energy Agency, in 2014, to develop its solar cell tech. But this latest debt financing round is its first on commercial terms (albeit partly underwritten by EKN and EIF).

Exeger says its solar cell tech is the only one that can be printed in free-form and different colors, meaning it can “seamlessly enhance any product with endless power”, as its PR puts it.

So far two devices have integrated the Powerfoyle tech: A bike helmet with an integrated safety taillight (by POC), and a pair of wireless headphones (by Urbanista). Although neither has yet been commercially launched — but both are slated to go on sale next month.

Exeger says its planned second factory in Stockholm will allow it to increase its manufacturing capacity tenfold by 2023, helping it target a broader array of markets sooner and accelerating its goal of mass adoption of its tech.

Its main target markets for the novel solar cell technology currently include consumer electronics, smart home, smart workplace, and IoT.

More device partnerships are slated as coming this year.

Exeger’s Powerfoyle solar cell tell integrated into a pair of Urbanista headphones (Image Credits: Exeger/Urbanista)

“We don’t label our rounds but take a more pragmatic view on fundraising,” said Giovanni Fili, founder and CEO. “Developing a new technology, a new energy source, as well as laying the foundation for a new industry takes time. Thus, a company like ours requires long-term strategic investors that all buy into the vision as well as the overall strategy. We have spent a lot of time and energy on this, and it has paid off. It has given the company the resources required, both time and money, to bring an invention to a commercial launch, which is where we are today.”

Fili added that it’s chosen to raise debt financing now “because we can”.

“The same answer as when asked why we build a new factory in Stockholm, Sweden, rather than abroad. We have always said that once commercial, we will start leveraging the balance sheet when securing funds for the next factory. Thanks to our long-standing relationship with Swedbank and SEK, as well as the great support of the Swedish government through EKN underwriting part of the loans, we were able to move this forward,” he said.

Discussing the forthcoming two debut gizmos, the POC Omne Eternal helmet and the Urbanista Los Angeles headphones — which will both go sale in June — Fili says interest in the self-powered products has “surpassed all our expectations”.

“Any product which integrates Powerfoyle is able to charge under all forms of light, whether from indoor lamps or natural outdoor light. The stronger the light, the faster it charges. The POC helmet, for example, doesn’t have a USB port to power the safety light because the ambient light will keep it charging, cycling or not,” he tells TechCrunch.

“The Urbanista Los Angeles wireless headphones have already garnered tremendous interest online. Users can spend one hour outdoors with the headphones and gain three hours of battery time. This means most users will never need to worry about charging. As long as you have our product in light, any light, it will constantly charge. That’s one of the key aspects of our technology, we have designed and engineered the solar cell to work wherever people need it to work.”

“This is the year of our commercial breakthrough,” he added in a statement. “The phenomenal response from the product releases with POC and Urbanista are clear indicators this is the perfect time to introduce self-powered products to
the world. We need mass scale production to realize our vision which is to touch the lives of a billion people by 2030, and that’s why the factory is being built now.”

 

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Serial fiction app Radish acquired by Kakao Entertainment for $440M

Serialized fiction app Radish has been acquired by Kakao Entertainment in a transaction valued at $440 million. Kakao Entertainment is owned by Kakao, the South Korean internet giant whose services include its eponymous messaging platform. Radish founder Seungyoon Lee will hold onto his role as its chief executive officer, while also becoming Kakao Entertainment’s global strategy officer to lead its growth in international markets.

Radish claims millions of users in North America, and the acquisition will be help Kakao Entertainment expand its own webtoons and web novel business there, and in other English-speaking markets. Radish will retain management autonomy and continue operating as its own brand.

Founded in 2015, Radish originally focused on user-generated content, but now the core of its business is Radish Originals, or serial fiction series designed specifically for the app. The company said the launch of Radish Originals in 2018 helped propel its growth, with revenue increasing more than 10 times in 2020 from the previous year.

Radish monetizes content through its micropayments system, which allows users to read several free episodes before making payments of about 20 to 30 cents to unlock new episodes (users also have the option of waiting an hour to unlock episodes for free). About 90% of its revenue now comes from Radish Originals.

The acquisition means that Radish Originals’ intellectual property will now be adapted by Kakao into webtoons, videos and other content, increasing their reach. Since 2016, Kakao Entertainment has adapted several web novels including “What’s Wrong with Secretary Kim?,” “A Business Proposal” and “Solo Leveling” into webtoons and other media.

Lee told TechCrunch that Radish started exclusively distributing several of Kakao Entertainment’s most popular original series, like “What’s Wrong with Secretary Kim?” last month. It plans to launch more content from Kakao Entertainment’s portfolio and are also “looking at ways in which we can make original localized novel adaptions of Kakao’s popular stories,” he added.

In a press statement, Kakao Entertainment CEO Jinsoo Lee said, “Radish has firmly established itself as a leading web novel platform and yet we see even greater growth potential… With the combination of Kakao’s expertise in the IP business and Radish’s strong North American foothold, we are excited about what we can achieve together.”

The acquisition has been approved by Radish’s board of directors, which includes a representative from SoftBank Ventures Asia, its largest investor, and the majority of its shareholders. Radish’s other backers include Lowercase Capital, K50 Ventures, Nicolas Bergruen, Charlie Songhurst, Duncan Clark and Amy Tan, the best-selling author.

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Aspire’s business accounts reach $1B in annualized transaction volume one year after launching

Singapore-based Aspire, which wants to become the financial services “one-stop shop” for SMEs, announced that its business accounts have reached $1 billion in annualized transaction volume one year after launching. The company also unveiled Bill Pay, its latest feature that lets businesses manage and pay invoices by emailing them to Aspire’s AI-based digital assistant.

Launched in May 2020, Aspire’s online business accounts are targeted to startups and small- to medium-sized enterprises, and do not require minimum deposits or monthly fees. Co-founder and chief executive officer Andrea Baronchelli told TechCrunch more than 10,000 companies now use Aspire’s business accounts and that adoption was driven by two main reasons. The first was Aspire’s transition to a multi-product strategy early last year, after focusing on corporate cards and working capital loans. The second reason is the COVID-19 pandemic, which made it harder for companies to open accounts at traditional banks.

“We can go in and say we offer all-in-one financial tools for growing businesses,” he said. “People come in and use one thing first, and then we offer them other things later on, so that’s been a huge success for us.”

Founded in 2018, Aspire has raised about $41.5 million in funding so far, including a Series A announced in July 2019. Its investors include MassMutual Ventures Southeast Asia, Arc Labs and Y Combinator.

Baronchelli said Aspire’s business account users consist of two main segments. The first are “launchers,” or people who are starting their first businesses and need to set up a way to send and receive money. Launchers typically make less than $400,000 a year in revenue and their Aspire account serves as their primary business account. The second segment are companies that make about $500,000 to $2 million a year and already had another bank account, but started using Aspire for its credit line, expense management or foreign exchange tools, and decided to open an account on the platform as well.

The company has customers from across Southeast Asia, and is particularly focused on Singapore, Indonesia and Vietnam. For example, it launched Aspire Kickstart, with incorporation services for Singaporean companies, at the start of this year.

Bill Pay, its newest feature, lets business owners forward invoices by email to Aspire’s AI-based digital assistant, which uses optical character recognition and deep learning to pull out payment details, including terms and due dates. Then users get a notification to do a final check before approving and scheduling payments. The feature syncs with accounting systems integrated into Aspire, including Xero and QuickBooks. Baronchelli said Aspire decided to launch Bill Pay after interviewing businesses and finding that many still relied on Excel spreadsheets.

Aspire’s offerings overlap with several other fintech companies in Southeast Asia. For example, Volopay, Wise and Revolut offer business accounts, too, and Spenmo offers business cards. Aspire plans to differentiate by expanding its stack of multiple products. For example, it is developing tools for accounts receivable, such as invoice automation, and accounts payable, like a dedicated product for payroll management. Baronchelli said Aspire is currently interviewing users to finalize the set of features it will offer.

“I don’t want to close the door that others might come toward a multiple product approach, but if you ask me what our position is now, we are basically the only one that offers an all-in-one product stack,” he added. “So we are a couple years ahead of the competition and have a first-mover advantage.”

 

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Zencargo raises $42M to expand its digital-first freight-forwarding platform internationally

While consumers and businesses continue to use their purchasing power to spin the wheels of the globalized economy, one of the companies that’s built a technology platform to help that economy operate more smoothly is announcing an investment to double down on growth.

Zencargo, which has built a digital platform to enable freight forwarding — the process by which companies organize and track the movements of items they are making and selling (and the components needed for those items) — has raised £30 million (about $42 million). Alex Hersham, the CEO who co-founded the company with Richard Fattal (CCO) and Jan Riethmayer, said that London-based Zencargo will be using the funding to open offices in the Netherlands, Hong Kong and the U.S.; to more than double its headcount to 350 from 150 today; and to begin to make moves into trade finance — a critical lever for facilitating the trading activities that are the bread and butter of Zencargo’s business.

The Series B is being led by Digital+ Partners, with HV Capital, which led its previous round, also participating. Zencargo is not disclosing its valuation, but the company — which provides services both to companies and distributors like Amazon to ship goods to its fulfillment centers, and brands like Vivienne Westwood, Swoon Furniture, and Soho Home — said that it is on track to make £100 million in revenues this year, and £200 million in 2022.

That is against the backdrop of some major world events that have both proven to be challenges as well as opportunities for the startup.

Brexit in the U.K. has created quite a mess for moving goods in and out of the country and into Europe (difficult but ultimately a net positive for Zencargo: it helps facilitate some aspects of that movement for its clients). COVID-19, meanwhile, has impacted economies (again: a difficult impact but also a positive, in that people are spending more money on goods for themselves and less on travel, leading to more demand for shipping those goods around the globe).

The Suez Canal blockage, on the other hand, also continues to loom (not great: Hersham said that Zencargo and others are still dealing with the fallout of those delays, although it’s highlighted the need for blended approaches when it comes to moving goods, with some items shipped slower by sea, and others faster by air or road). And there is the growing priority of how shipping impacts carbon footprints (an area of opportunity, interestingly: Zencargo can provide more efficient routing, and also services to consider how to carbon offset shipping activities).

The more general challenge that Zencargo is tackling goes hand in hand with our existence as consumers.

Many of us do not blink an eye when we go online or to a store to procure something, and we get whatever that happens to be right away.

But the simplicity of wanting and subsequently obtaining goods sits on top of a huge, and hugely complex, logistics operation. It might involve components, assembly or growing and processing things, shipping from one place to another, passing through multiple distribution and shipping hubs, customs, retailers and finally delivery to your store, or directly to you — a logistics chain that, taking all the world’s goods into account, has been estimated to be worth up to $12 trillion annually. Freight forwarding is the process by which all of that logistics works as it should, and in itself accounts for hundreds of billions of dollars in spend, and potentially more than $1 trillion in costs when things go awry.

Traditionally, a lot of freight forwarding work has been done offline, a messy process involving paper and faxing, prone to mistakes, over- and under-supply based on sales and typically hard to scrutinize because of the lack of centralized information. Companies like Zencargo — along with others in the same space like Flexport — have built digitized platforms to manage all of this, tracking items by SKU data, matching shipments with real-time insights into sales and demand, and balancing different kinds of freight options to provide the right items at the right time. (Zencargo works across sea, air and land freight, with sea accounting for about half of all of its traffic, Hersham said.)

Zencargo’s services arguably will continue to see demand growing in line with the growth of the logistics industry, but the curveballs of the last several years, and in the last 12 months in particular, that have impacted the shipping business lay out an interesting road ahead for the startup in the future.

“The freight industry has struggled to keep pace with innovation. Archaic processes are still in place across the board, resulting in widespread inefficiencies,” said Patrick Beitel, managing director and founding partner at Digital+ Partners, in a statement. “Zencargo’s cutting edge technologies, plus deep industry experience and knowledge, are transforming the supply chain, and that marries up perfectly with Digital + Partners’ mission to back companies with best-in-class technology and exceptional management teams. We are honoured to join them on the next stage of their journey.”

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ServiceNow leaps into applications performance monitoring with Lightstep acquisition

This morning ServiceNow announced that it was acquiring Lightstep, an applications performance monitoring startup that has raised more than $70 million, according to Crunchbase data. The companies did not share the acquisition price.

ServiceNow wants to take advantage of Lightstep’s capabilities to enhance its IT operations offerings. With Lightstep, the company should be able to provide customers with a way to monitor the performance of applications with the goal of detecting problems before they grow into major issues that take down a website or application.

“With Lightstep, ServiceNow will transform how software solutions are delivered to customers. This will ultimately make it easier for customers to innovate quickly. Now they’ll be able to build and operate their software faster than ever before and take the new era of work head on with confidence,” Pablo Stern, SVP & GM for IT Workflow Products at ServiceNow said in a statement.

Ben Sigelman, founder and CEO at Lightstep sees the larger organization being a good landing spot for his company. “We’ve always believed that the value of observability should extend across the entire enterprise, providing greater clarity and confidence to every team involved in these modern, digital businesses. By joining ServiceNow, together we will realize that vision for our customers and help transform the world of work in the process […], Sigelman said in a statement.

Lightstep is part of the application performance monitoring market with companies like Datadog, New Relic and AppDynamics, which Cisco acquired in 2017 the week before it was scheduled to IPO for $3.7 billion. It seems to be an area that is catching the interest of larger enterprise vendors, which are picking off smaller startups in the space.

Last November, IBM bought Instana, an APM startup and then bought Turbonomic for $2 billion at the end of last month as a complementary technology. Being able to monitor apps and keep them up and running is crucial, not only from a business continuity perspective, but also from a brand loyalty one. Even if the app isn’t completely down, but is running slowly or generally malfunctioning in some way, it’s likely to annoy users and could ultimately cause users to jump to a competitor. This type of software gives customers the ability to observe and detect problems before they have an impact on large numbers of users.

Lightstep, which is based in San Jose, California, was founded in 2015. It raised $70 million from investors like Altimeter Capital, Sequoia, Redpoint and Harrison Metal. Customers include GitHub, Spotify and Twilio. The deal is expected to close this quarter.

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Activist investor Starboard Value makes official bid for Box board seats in letter

Last week activist investor Starboard delivered a public letter rebuking Box for what it perceives as underperformance. Today the firm, which owns 8% of Box stock, making it the company’s largest stock holder, took it a step further with an official slate of four candidates it will be putting up at the next stockholder’s meeting.

While the company rehashed many of the same complaints as in last week’s letter, this week it explicitly stated its intent to run its own slate of candidates for the Box board. “Therefore, in accordance with the Company’s governance deadlines and in order to preserve our rights as stockholders, we have delivered a formal notice to Box nominating four highly qualified director candidates (the “Nominees”) for election to the Board at the Annual Meeting,” Starboard wrote in a public letter to Box.

Box responded in a press release that the Board as currently constituted categorically rejects this attempt by Starboard to take over additional seats.

“The Box Board of Directors does not believe the changes to the Board proposed by Starboard are warranted or in the best interests of all stockholders. The Box Board has been consistently responsive to feedback from all of its stockholders, including suggestions from Starboard, and open-minded toward all value enhancing opportunities. Furthermore, Starboard’s statements do not accurately depict the progress Box has made,” the Board wrote in a statement this morning.

Box further points out that the company overhauled the Board last year with three new board members specifically receiving Starboard approval.

What is driving Starboard to take this action? Like any good activist investor it wants a higher stock price and is seeking more growth from Box. Activist investors often come in and try to extract value by brute force when they perceive the company is underperforming. The end game, were they to be successful, could involve removing Levie as CEO or more likely selling the company and grabbing its profit on the way out.

Box asserted that “Starboard’s statements do not accurately depict the progress Box has made,” highlighting some of its recent financial performance, including “a $127 million increase in free cash flow in fiscal 2021.” The former private-market darling also argued that its fiscal 2021 “revenue growth rate plus free cash flow margin [came to more than] 26%,” which beat its own target of 25% and was “nearly double” what it managed in its fiscal 2020.

This is a good time for a “yes, but“: Yes, but Box’s ability to improve its profitability does not change the fact that its growth rate has been in steady decline for years. And while a company’s growth rate can cover nearly any sin, slowing growth that has already slipped into the single digits doesn’t cut Box much slack. (For reference, in its most recent quarter, the fourth of its fiscal 2021, Box grew just 8% on a year-over-year basis.)

It’s worth noting that the company did promise “accelerated growth and higher operating margins in the years ahead” in its most recent earnings call, but the company’s recent $500 million investment from KKR particularly irked Starboard, which asserts that it was akin to “buying the vote.”

“[Box] made several poor capital allocation decisions, including its recent entry into a financing transaction that we believe serves no business purpose and was done in the face of a potential election contest with Starboard at the 2021 Annual Meeting of Stockholders.”

Now it’s becoming a battle over more board seats. Box is putting up Levie, Verisign CFO Dana Evan and Peter Leav, CEO of McAfee and former CEO of BMC. Evan sits on the boards of Domo and Survey Monkey in addition to Box, while Leav previously served on the board of ProofPoint, which was acquired last month by Thoma Bravo for over $12 billion.

While Starboard’s nominees come with impressive resumes, it’s worth pointing out that they mostly lack direct experience working with an enterprise SaaS company like Box. The folks on the slate include Deborah S. Conrad, former executive at Intel; Peter A. Feld, Starboard’s head of research; John R. McCormack, former CEO of WebSense and Xavier D. Williams, a director of American Virtual Cloud Technologies, a public company on $170 million run rate. Box made $771 million last fiscal year.

The vote will take place at the Box stockholder’s meeting, which has traditionally been held in late June or early July. To this point, the company has not put out the exact date publicly.

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The Expensify EC-1

Let’s make it clear from the outset that this story is about an expense management SaaS business called Expensify. As you’d expect, yes, this is about the expense management market and how Expensify has grown, its technology and all of that. Normally, that would make us change the channel. But this is also a story about pirates; peer-to-peer hackers who asked, “Why not work from Thailand and dozens of countries across the globe?” and actually did it using P2P hacker culture as a model for consensus-driven decision-making — all with pre-Uber Travis Kalanick in a guest-starring role.

Most interestingly, this is a story about just not giving a damn about what anyone goddamn thinks, an approach to life and business that led to more than $100 million in annual revenue, and an IPO incoming on what looks to be a very quick timetable. Prodigious revenues, 10 million users and only 130 employees running the whole shebang — that’s a hell of an achievement in only 13 years.

If you’re going a bit “WTF,” well, we’d concur. Expensify is as contradictory as they come in the enterprise world. It’s managed to take what might well be the most boring part of the corporate business stack and turn it into something special. It doesn’t borrow its culture from other startups, it built its own tech stack from the ground up, and even hires in a completely radical way. Oh, and no one really has job titles either, because why the hell bother with hierarchy anyway? They’re pirates after all.

If expense management is about avoiding corporate plunder, then letting the pirates and hackers run the ship is probably the best approach. And now, Expensify is plundering the corporate spend world one travel ticket and business meal at a time just as the world is rebuilding in the wake of COVID-19.

TechCrunch’s writer and analyst for this EC-1 is Anna Heim. Heim is a tech journalist and former startup founder who has written for different tech publications since 2011. She recently joined Extra Crunch as a daily reporter, where she will be sharing insights on startups, particularly in SaaS. The lead editor of this package was Ram Iyer, the series editor was Danny Crichton, the copy editor was Richard Dal Porto, and original illustrations were created by Nigel Sussman with art direction from Bryce Durbin.

Expensify had no say in the content of this analysis and did not get advance access to it. Heim has no financial ties to Expensify or other conflicts of interest to disclose.

The Expensify EC-1 will be a serialized sequence of five articles published over the course of the coming weeks. We interviewed the company in February and March, well before the company announced a confidential filing of its S-1 to the SEC. Let’s take a look:

  • Part 1: Origin storyHow a band of P2P hackers planted the seeds of a unique expense management giant” (2,400 words/10 minutes) — Explores the colorful history of the Expensify founders’ days with Travis Kalanick’s venture before Uber, a P2P content distribution startup called Red Swoosh, and how that experience would eventually influence what would one day become an expense management giant.
  • Parts 2-5: Upcoming shortly.

We’re always iterating on the EC-1 format. If you have questions, comments or ideas, please send an email to TechCrunch Managing Editor Danny Crichton at danny@techcrunch.com.

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How a band of P2P hackers planted the seeds of a unique expense management giant

Individuality often has no place in the enterprise software space. In a market where a single contract can easily run into the millions, homogeneity is the herald of reliability and serves to reassure buyers of the worth of their potential purchase.

So it’s natural to think a company in the expense report management business would keep it simple and play it by the book. But one look at Expensify is enough to tell you that this is a company that never even looked for the book.

Expensify’s origin story is one of a scrappy group of developers who turned travel into a catalyst for ideas and stuck together through highs and lows, ending up building one of the most unexpectedly original companies in enterprise software today.

Right from its famous “workcations,” to its management structure and its decision-making policies, Expensify has it in its DNA to eschew so-called best practices for its own ideas — a philosophy rooted in its founder and early team’s P2P hacker background and do-it-yourself attitude. As a result, Expensify is atypical of startups in many ways, inside and out.

Founder and CEO David Barrett made it clear his company was different in our first call itself: “We hire in a super different way. We have a very unusual internal management structure. Our business model itself is very unusual. We don’t have any salespeople, for example. We’re an incredibly small company. We focus on the employees over the bosses. Our technology stack is completely different. Our approach toward product design is very different.”

That description would make some people call Expensify weird even by startup standards, but this essential difference has set it apart in a space dominated by giants such as SAP Concur and Coupa. And that’s ultimately been to its benefit: Expensify reached $100 million in annual recurring revenue in 2020, with hefty 25% EBITDA margins to boot. There were also rumors of the company planning to go public during our interviews for this EC-1, but they stopped speaking to us in March, and now we know why: Expensify confidentially filed to go public on May 3.

Expensify’s origin story is one of a scrappy group of developers who turned travel into a catalyst for ideas and stuck together through highs and lows, ending up building one of the most unexpectedly original companies in enterprise software today.

When David met Travis …

To truly understand Expensify, you first need to take a close look at a unique, short-lived, P2P file-sharing company called Red Swoosh, which was Travis Kalanick’s startup before he founded Uber. Framed by Kalanick as his “revenge business” after his previous P2P startup Scour was sued into oblivion for copyright infringement, Red Swoosh would be the precursor for Expensify’s future culture and ethos. In fact, many of Expensify’s initial team actually met at Red Swoosh, which was eventually acquired by Akamai Technologies in 2007 for $18.7 million.

Barrett, a self-proclaimed alpha geek and lifelong software engineer, was actually Red Swoosh’s last engineering manager, hired after the failure of his first project, iGlance.com, a P2P push-to-talk program that couldn’t compete against Skype. “While I was licking my wounds from that experience, I was approached by Travis Kalanick who was running a startup called Red Swoosh,” he recalled in an interview.

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Blind raises $37M to double down on workplace gossip and career advice

Blind has carved out a unique niche in the social-networking world. It’s an app of verified, pseudonymous employees talking to each other about what’s going on at their employers, trading notes on everything from layoffs, to promotions, to policies. Part LinkedIn, part Reddit, part Slack — it’s become widely popular among tech workers at Silicon Valley companies, and even outside the tech industry, with 5 million verified users.

Workplaces have changed dramatically post-COVID-19, with remote work becoming more of a norm, and that has made Blind indispensable for many workers who feel increasingly alienated from their companies and their colleagues.

The company announced this morning a $37 million Series C funding round led by South Korean venture firm Mainstreet Investment along with Cisco Investments and Pavilion Capital, a subsidiary of Singapore sovereign wealth fund Temasek. The company had filed a Form D in late March for roughly $20.5 million, and the $37 million represents the final total fundraised.

We last did a deep dive in the company back in 2018, so what’s changed? Well, first, there’s the pandemic. Co-founder and general manager Kyum Kim says that Blind’s users are now coming to the app all throughout the day. “Usage used to peak during the commute times,” he said. “8-10 a.m. before COVID and then after work, 7 a.m.-10 p.m. was another timeframe that people used to use Blind a lot. But now, it has kind of flattened out [throughout the day].” The new peak is 2 p.m., and, according to Kim, users are logging in 30 times per month over about 13-15 days.

This gets to the first of two areas where Blind is experimenting with revenue generation. As remote work has taken hold, particularly at tech companies, internal messaging channels have become less valuable as sources for clear information from executive leadership. Blind believes it has a better pulse on how employees are feeling about policies and their employers, and is building tools around, for example, pulse surveys to give HR teams better insight than they might get from other services.

“People are just more honest on our platform versus these company-sponsored channels,” Kim said. We’re “probably the only platform where people are coming voluntarily, have visibility into their intentions, how they feel about their company’s policies.” Blind wants to protect the identities of its users, while also offering aggregate insights to companies.

To that end, last week the company brought on Young Yuk as chief product officer. Yuk had been an advisor to Blind for the past four years, while daylighting in senior product roles at Intuit, Yelp and Glassdoor. Kim believes that Yuk’s experience across consumer and enterprise will fit the unique needs of Blind’s business, which combines a consumer social network with B2B products.

For its own users though, the second area of attention is perhaps the most interesting: recruiting. Blind users are obsessed with career paths and compensation, and Kim said that “80% of our search keywords on Blind are company names or company names attached to levels, locations, or teams.” People want to know how to move their careers forward, an area companies are notoriously bad about explaining, and so “people come to Blind to find information from these verified employees.”

Blind is building what it calls “Talent by Blind,” a platform for capturing this hiring intentionality and selling it to recruiters. The goal is to transfer people whose intentions might be, say, L5 engineer at a big tech company in Seattle to a separate platform that can be used as a top-of-funnel for company recruitment efforts. Blind says a couple of companies are currently using this platform.

“Talent by Blind” is a platform to help transfer potential recruits into the top of the recruiting funnel at companies. Image Credits: Blind

Ultimately, Blind’s path has been one of slow and steady growth. The company claims to be deliberate in that approach, noting that pseudonymous communities often falter when they grow too fast and norms aren’t established early. Unlike more notorious anonymous communities from years past like Secret or YikYak, the company says that its network tends to be quite safe, since employees verify their identities and know that they are speaking directly to their colleagues.

Blind’s team has expanded in recent years. Image Credits: Blind

Revenue approaches remain experimental, but ultimately, the key is that it has the users that companies want to hear from: their own employees and potential future employees. We want to “maintain that integrity with users,” Kim said. “ ‘Ally to employees and advisor to companies’ is the phrase we are trying to go for.”

“It’s been eight years we have been doing this business, [and] we have been focused on the longness,” he said. “There’s a lot of optimism in the company.” He would know — he probably checked Blind.

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The human-focused startups of the hellfire

Disasters may not always be man-made, but they are always responded to by humans. There’s a whole panoply of skills and professions required today to respond to even the tiniest emergency, and that doesn’t even include the needs during pre-disaster planning and post-disaster recovery. It’s not a very remunerative industry for most and the mental health effects from stress can linger for decades, but the mission at the core of this work — to help people in the time of their greatest need — is what continues to attract many to partake in this never-ending battle anyway.

In the last three parts of this series on the future of technology and disaster response, I’ve focused on, well, technology, and specifically the sales cycle for new products, the sudden data deluge now that Internet of Things (IoT) is in full force, and the connectivity that allows that data to radiate all around. What we haven’t looked at enough so far is the human element: the people who actually respond to disasters as well as what challenges they face and how technology can help them.

So in this fourth and final part of the series, we’ll look at four areas where humans and technology intersect within disaster response and what future opportunities lie in this market: training and development, mental health, crowdsourced responses to disasters, and our doomsday future of hyper-complex emergencies.

Training in a hellfire

Most fields have linear approaches to training. To become a software engineer, students learn some computer science theory, add in some programming practice, and voilà (note: your mileage may vary). To become a medical doctor, aspiring physicians take an undergraduate curriculum teeming with biology and chemistry, head to medical school for two deadened years of core anatomy and other classes and then switch into clinical rotations, a residency, and maybe fellowships.

But how do you train someone to respond to emergencies?

From 911 call takers to EMTs and paramedics to emergency planning officials and the on-the-ground responders who are operating in the center of the storm as it were, there are large permutations in the skills required to do these jobs well. What’s necessary aren’t just specific hard skills like using call dispatch software or knowing how to upload video from a disaster site, but also critically-important softer skills as well: precisely communicating, having sangfroid, increasing agility, and balancing improvisation with consistency. The chaos element also can’t be overstated: every disaster is different, and these skills must be viscerally recombined and exercised under extreme pressure with frequently sparse information.

A whole range of what might be dubbed “edtech” products could serve these needs, and not just exclusively for emergency management.

Communications, for instance, isn’t just about team communications, but also communicating with many different constituencies. Aaron Clark-Ginsberg, a social scientist at RAND Corporation, said that “a lot of these skills are social skills — being able to work with different groups of people in culturally and socially appropriate ways.” He notes that the field of emergency management has heightened attention to these issues in recent years, and “the skillset we need is to work with those community structures” that already exist where a disaster strikes.

As we’ve seen in the tech industry the last few years, cross-cultural communication skills remain scarce. One can always learn this just through repeated experiences, but could we train people to develop empathy and understanding through software? Can we develop better and richer scenarios to train emergency responders — and all of us, really — on how to communicate effectively in widely diverging conditions? That’s a huge opportunity for a startup to tackle.

Emergency management is now a well-developed career path. “The history of the field is very fascinating, [it’s] been increasingly professionalized, with all these certifications,” Clark-Ginsberg said. That professionalization “standardizes emergency response so that you know what you are getting since they have all these certs, and you know what they know and what they don’t.” Certifications can indicate singular competence, but perhaps not holistic assessment, and it’s a market that offers opportunities for new startups to create better assessments.

Like many of us, responders get used to doing the same thing over and over again, and that can make training for new skills even more challenging. Michael Martin of emergency data management platform RapidSOS describes how 911 call takers get used to muscle memory, “so switching to a new system is very high-risk.” No matter how bad existing software interfaces are, changing them will very likely slow every single response down while increasing the risk of errors. That’s why the company offers “25,000 hours a year for training, support, integration.” There remains a huge and relatively fragmented market for training staff as well as transitioning them from one software stack to another.

Outside these somewhat narrow niches, there is a need for a massive renaissance in training in this whole area. My colleague Natasha Mascarenhas recently wrote an EC-1 on Duolingo, an app designed to gamify and entrance students interested in learning second languages. It’s a compelling product, and there is no comparative training system for engaging the full gamut of first responders.

Art delaCruz, COO and president of Team Rubicon, a non-profit which assembles teams of volunteer military veterans to respond to natural disasters, said that it’s an issue his organization is spending more time thinking about. “Part of resilience is education, and the ability to access information, and that is a gap that we continue to close on,” he said. “How do you present information that’s more simple than [a learning management system]?” He described the need for “knowledge bombs like flash cards” to regularly provide responders with new knowledge while testing existing ideas.

There’s also a need to scale up best practices rapidly across the world. Tom Cotter, director of emergency response and preparedness at Project Hope, a non-profit which empowers local healthcare workers in disaster-stricken and impoverished areas, said that in the context of COVID-19, “a lot of what was going to be needed [early on] was training — there were huge information gaps at the clinical level, how to communicate it at a community level.” The organization developed a curriculum with Brown University’s Watson Institute in the form of interactive PowerPoints that were ultimately used to train 100,000 healthcare workers on the new virus, according to Cotter.

When I look at the spectrum of edtech products existing today, one of the key peculiarities is just how narrow each seems to focus. There are apps for language learning and for learning math and developing literacy. There are flash card apps like Anki that are popular among medical students, and more interactive approaches like Labster for science experiments and Sketchy for learning anatomy.

Yet, for all the talk of boot camps in Silicon Valley, there is no edtech company that tries to completely transform a student in the way that a bona fide boot camp does. No startup wants to holistically develop their students, adding in hard skills while also advancing the ability to handle stress, the improvisation needed to confront rapidly-changing environments, and the skills needed to communicate with empathy.

Maybe that can’t be done with software. Maybe. Or perhaps, no founder has just had the ambition so far to go for broke — to really revolutionize how we think about training the next generation of emergency management professionals and everyone else in private industry who needs to handle stress or think on their feet just as much as frontline workers.

That’s the direction where Bryce Stirton, president and co-founder of public-safety company Responder Corp, has been thinking about. “Another area I am personally a fan of is the training space around VR,” he said. “It’s very difficult to synthesize these stressful environments,” in areas like firefighting, but new technologies have “the ability to pump the heart that you need to experience in training.” He concludes that “the VR world, it can have a large impact.”

Healing after disaster

When it comes to trauma, few fields face quite the challenge as emergency response. It’s work that almost by definition forces its personnel to confront some of the most harrowing scenes imaginable. Death and destruction are given, but what’s not always accounted for is the lack of agency in some of these contexts for first responders — the family that can’t be saved in time so a 911 call taker has to offer final solace, or the paramedics who don’t have the right equipment even as they are showing up on site.

Post-traumatic stress is perhaps the most well-known and common mental health condition facing first responders, although it is hardly the only one. How to ameliorate and potentially even cure these conditions represents a burgeoning area of investment and growth for a number of startups and investors.

Risk & Return, for instance, is a venture firm heavily focused on companies working on mental health as well as human performance more generally. In my profile of the firm a few weeks ago, managing director Jeff Eggers said that “We love that type of technology since it has that dual purpose: going to serve the first responder on the ground, but the community is also going to benefit.”

Two examples of companies from its portfolio are useful here to explore as examples of different pathways in this category. The first is Alto Neuroscience, which is a stealthy startup founded by Amit Etkin, a multidisciplinary neuroscientist and psychiatrist at Stanford, to create new clinical treatments to post-traumatic stress and other conditions based on brainwave data. Given its therapeutic focus, it’s probably years before testing and regulatory approvals come through, but this sort of research is on the cutting-edge of innovation here.

The second company is NeuroFlow, which is a software startup using apps to guide patients to better mental health outcomes. Through persistent polling, testing, and collaboration with practitioners, the company’s tools allow for more active monitoring of mental health — looking for emerging symptoms or relapses in even the most complicated cases. NeuroFlow is more on the clinical side, but there are obviously a wealth of wellness startups that have percolated in recent years as well like Headspace and Calm.

Outside of therapeutics and software though, there are entirely new frontiers around mental health in areas like psychedelics. That was one of the trends I called out as a top five area for investment in the 2020s earlier this year, and I stand by that. We’ve also covered a startup called Osmind which is a clinical platform for managing patients with a psychedelic focus.

Risk & Return itself hasn’t made an investment in psychedelics yet, but Bob Kerrey, the firm’s board chairman and the former co-chair of the 9/11 Commission as well as former governor and senator of Nebraska, said that “it’s difficult to do this if you are the government, but easier to do this in the private sector.”

Similar to edtech, mental health startups might get their start in the first responder community, but they are hardly limited to this population. Post-traumatic stress and other mental health conditions affect wide swaths of the world’s population, and solutions that work in one community can often translate more broadly to others. It’s a massive, massive market, and one that could potentially transform the lives of millions of people for the better.

Before moving on, there’s one other area of interest here, and that is creating impactful communities for healing. First responders and military veterans experience a mission and camaraderie in their service that they often lack once they are in new jobs or on convalescence. DelaCruz of Team Rubicon says that one of the goals of bringing veterans to help in disaster regions is that the veterans themselves “reconnect with identity and community — we have these incredible assets in these men and women who have served.” It’s not enough to just find a single treatment per patient — we oftentimes need to zoom out to the wider population to see how mental health ripples out.

Helping people find purpose may not be the easiest challenge to solve as a startup, but it’s certainly a major challenge for many, and an area fermenting with new approaches now that the the social networking wave has reached its nadir.

Crowdsourcing disaster response

Decentralization has been all the rage in tech in recent years — just mention the word blockchain in a TechCrunch article to get at least 50 PR emails about the latest NFT for a toilet stain. While there is obviously a lot of noise, one area where substance may pan out well is in disaster response.

If the COVID-19 pandemic showed anything, it was the power of the internet to aggregate as well as verify data, build dashboards, and deliver highly-effective visualizations of complex information for professionals and laypeople alike. Those products were developed by people all around the world often from the comfort of their own homes, and they demonstrate how crowds can quickly draft serious labor to help respond to crises as they crop up.

Jonathan Sury, project director at the National Center for Disaster Preparedness at the Earth Institute at Columbia University, said that “COVID has really blown so much of what we think about out of the water.” With so many ways to collaborate online right now, “that’s what I would say is very exciting … and also practical and empowering.”

Clark-Ginsberg of RAND calls it the “next frontier of disaster management.” He argues that “if you can use technology to broaden the number of people who can participate in disaster management and respond to disasters,” then we might be reaching an entirely new paradigm for what effective disaster response will look like. “Formal structures [for professional frontline workers] have strengthened and that has saved lives and resources, but our ability to engage with everyday responders is still something to work on.”

Many of the tools that underpin these crowdsourced efforts don’t even focus on disasters. Sury pointed to Tableau and data visualization platform Flourish as examples of the kinds of tools that remote, lay first responders are using. There are now quite robust tools for tabular data, but we’re still relatively early in the development of tools for handling mapping data — obviously critical in the crisis context. Unfolded.ai, which I profiled earlier this year, is working on building scalable geospatial analytics in the browser. A lot more can be done here.

Oftentimes there are ways to coordinate the coordinators. Develop for Good, which I looked at late last year, is a non-profit designed to connect enterprising computer science students to software and data projects at non-profits and agencies that needed help during the pandemic. Sometimes these coordinators are non-profit orgs, and sometimes, just very active Twitter accounts. There’s a lot more experimentation possible on how to coordinate efforts in a decentralized way while still engaging with professional first responders and the public sector.

Speaking of decentralization, it’s even possible that blockchain could play a role in disaster and crisis response. Many of these opportunities rest on using blockchain for evidence collection or for identity. For example, earlier this week Leigh Cuen took a careful look at an at-home sexual assault evidence collection kit from Leda Health that uses the blockchain to establish a clear time for when a sample was collected.

There is a lot more potential to harness the power of crowdsourcing and decentralization, and many of these projects have applications far outside disaster management itself. These tools not only solve real problems — they provide real community to people who may not be related to the disaster itself, but are enthusiastic to do their part to help others.

The black swans of black swans

In terms of startups, the three markets I identified — better training, better mental health, and better crowdsourcing collaboration tools, particularly around data — collectively represent a very compelling set of markets that will not only be valuable for founders, but can rapidly improve lives.

In his book Normal Accidents, Charles Perrow talks about how an increasing level of complexity and coupledness in our modern technical systems all but guarantee disasters to occur. Add in a warming world as well as the intensity, frequency, and just plain unusualness of disasters arriving each year, and we are increasingly seeing entirely novel forms of emergencies we have never responded to before. Take most recently the ultra-frigid conditions in Texas that sapped power from its grid, leading to statewide blackouts for hours and days in some parts of the state.

Clark-Ginsberg said, “We are seeing these risks emerge that aren’t just typical wildfires — where we have a response structure that we can easily setup and manage the hazard, [we’re] very good at managing these typical disasters. There are more of these atypical disasters cropping up, and we have a very hard time setting up structures for this — the pandemic is a great example of that.”

He describes these challenges as “trans-boundary risk management,” disasters that cross bureaucratic lines, professions, societies, and means of action. “It takes a certain agility and the ability to move quickly and the ability to work in ways outside typical bureaucratic structures, and that is just challenging full stop,” he said.

The Future of Technology and Disaster Response

Even as we begin to have better point solutions to the individual problems that disasters and their responses require, we can’t be remiss in neglecting the more systematic challenges that these emergencies are bringing to the fore. We have to start thinking about bringing humans together faster and in more novel ways to be the most effective, while coupling them flexibly and with agility to the best tools that meet their needs in the moment. That’s probably not literally “a startup,” but more a way of thinking about what it means to construct a disaster response fresh given the information available.

Amanda Levin, a policy analyst at the Natural Resources Defense Council, said that “even if we mitigate, there are huge pressures and huge impacts today from a warming world … even if we stop emissions today, [they] will still persist.” As one of my interviewees in government service who asked to go unnamed noted about disaster response, “You always are coming up short somewhere.” The problems are only getting harder, and we humans need much better tools to match the man-made trials we created for ourselves. That’s the challenge — and opportunity — for a tough century ahead.

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