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Pitching access management on the fly, Los Angeles-based Britive raises $5.4 million

It seems Los Angeles is becoming an enterprise software hotspot.

LA saw its first big enterprise exit in recent memory with the recent acquisition of Signal Sciences for $775 million, and less than a month later a hometown startup, Britive has raised $5.4 million from LA’s own venture fund, Upfront Ventures and a clutch of security experts.

For chief executive Artyom Poghosyan and chief technology officer Alex Gudanis, Britive is simply the latest initiative in a decades-long effort to reshape security technology.

Both Poghosyan and Gudanis have long histories in identity and access management; back in 2009 Poghosyan founded Advancive Technology Solutions, which was acquired by Optiv in 2015 to bulk up its identity access management service.

Now, he and Gudanis are trying to solve the issues of identity access management that the new, ubiquitous cloud computing model presents for security officers and developers.

“When Optiv acquired us, we were already seeing interesting and strong signals in the technolog space about the disruption that was being driven by cloud technologies,” said Poghosyan.

Those cloud technologies presented new challenges for the kind of privileged access management technologies that Poghosyan had developed.

The solution that Britive pitches is a dynamic model for granting permissions for access, Poghosyan said. Instead of granting permanent access, there are policy-based pre-authorizations that a company can set up defined for specific tasks and roles.

Based on a developer’s role and work, they can request and receive access automatically based on the specific parameters defined by a company or security officer.

The company already has more than a dozen customers using its technology after launching merely two years ago. It’s a customer base that includes one of the world’s largest carmakers and a global clothing brand — companies Poghosyan declined to identify, citing contractual obligations.

The company charges based on the number of users who are requesting permission for access, Poghosyan said.

As more companies move to remote work in the COVID-19 era and distributed teams become the norm, streamlining the provisioning and access management process for companies is going to become even more important.

Undoubtedly, that’s why Britive was able to land investors like Upfront Ventures and why their partner, Kara Nortman, is joining the company’s board of directors. It’s also the reason the company was able to attract some of LA’s leading enterprise executives to back the company, including Andrew Peterson, CEO of Signal Sciences and Dave Cole, CEO of Open Raven.

 

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What’s driving API-powered startups forward in 2020?

Startups that deliver products via an API are seeing momentum in 2020, as their method of serving customers becomes increasingly mainstream. And investors are taking note.

It’s not hard to find a startup with an API-based delivery model that is doing well this year. This column noted a grip of recently funded API-focused startups in May, for example, underscoring how attractive they are to venture capitalists today.

Yesterday, I caught up with Alpaca, a startup whose API allows other companies to add equities-trading capabilities to their own services. The company’s business is skyrocketing this year. According to data it provided to TechCrunch, Alpaca’s trading volume, processed for its developer users and customers, has grown from $388.1 million in January to nearly $1.6 billion in both June and July. Volume fell some in August, but according to CEO Yoshi Yokokawa, September’s trading volume could see Alpaca surpass its summer records.

Alpaca announced a $6 million round from Spark Capital last November that TechCrunch covered, with Social Leverage, Portag3, Fathom Capital and Zillionize helping boost its total capital raised to nearly $12 million. We confirmed with Yokokawa that his startup’s revenue scales with volume, meaning that the company’s top line has exploded this year, with trading volumes up 10x from July 2019 to July 2020.

Alpaca is a good example of what to think of when we consider an API-powered company versus something more traditional, like Robinhood, which provides services to end users. Alpaca considers developers as its users, and those developers bring Alpaca to market in their own fashion.

The developer-first model can lead to efficiencies. As Twilio CEO Jeff Lawson told TechCrunch regarding new software products: “I don’t want to go through a sales process,” he said, adding that he also doesn’t want to wait “a week to get a call back” but would rather “start exploring now.” With many API companies offering a free tier or low-cost options for tinkering, lowering sales and marketing costs in certain instances when developers sell themselves on an API-delivered service.

So what?

What’s driving the API-delivered model forward in 2020? Or, more simply, why do I keep hearing from API-powered startups that are either raising money, or are seeing rapid growth?

Alpaca’s Yokokawa has a theory. According to the startup exec, two macro trends are coming together to push API startups forward. The first is a simple evolution of the tech industry toward a new software delivery model. Yokokawa drew a timeline for TechCrunch, from legacy IT systems to on-prem software, through SaaS to API-delivered services today, the last in the bunch offering what he views as having the most flexibility. That trend has combined with more folks becoming developers, in his view, through traditional education, coding schools and even no-code’s growth.

An industry shift toward software and services in an increasingly on-demand model (SaaS is more on-demand than on-prem software, and API-delivered tools are even more on-demand than SaaS) and more developers to help plug APIs into other apps could make for a nice tailwind for companies employing the business model.

To get a bit more on the where we stand today, The Exchange chatted with Shasta’s Isaac Roth and collected notes from two Mayfield investors, Patrick Salyer and Rajeev Batra. There’s a general air of bullishness around startups selling APIs. Let’s learn how it is impacting venture interest.

The investor perspective

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India’s Zomato raises $100M from Tiger Global, says it is planning to file for IPO next year

Indian food delivery startup Zomato has raised $100 million from Tiger Global and is preparing for the next phase of its journey: an IPO.

Tiger Global financed the capital through its investment vehicle Internet Fund VI, according to a regulatory filing. Info Edge, a major investor in Zomato, confirmed the development Thursday evening, adding that the new round valued Zomato at $3.3 billion post-money.

In an email to employees earlier today, Zomato co-founder and chief executive Deepinder Goyal said the startup had about $250 million cash in the bank and several more “big name” investors would be joining the current round to increase its cash reserve to about $600 million “very soon.”

“Important note — we have no immediate plans on how to spend this money. We are treating this cash as a ‘war-chest’ for future M&A, and fighting off any mischief or price wars from our competition in various areas of our business,” he added in the letter, reviewed by TechCrunch.

Zomato, which acquired the Indian food delivery business of Uber early this year, competes with Prosus Ventures-backed Swiggy in India. A third player, Amazon, has also emerged in the market, though it is currently servicing food delivery in only select suburbs of Bangalore.

Goyal told employees that the 12-year-old startup is also working for its IPO for “sometime in the first half of next year.” (It’s unclear how Zomato plans to achieve this target, but it is likely looking at listing in the U.S. or some other market. Current Indian law requires a startup to be profitable for at least three years before they could publicly list in India — though there has been some proposal to relax this requirement.)

The new pledge from Zomato is the result of a major economic improvement in its business in recent quarters. Until mid-last year, Zomato was losing more than $50 million a month to win and sustain customers by offering heavy discounts.

The Gurgaon-headquartered firm, which like Swiggy eliminated hundreds of jobs in recent months as coronavirus ruined the appetite of Indians ordering food online, said in July that its losses for the month would be less than $1 million.

The startup also faced obstacles in raising new capital. It kickstarted its financing round a year ago, but had secured only $50 million as of a month ago. The startup had originally anticipated closing this round, at about $600 million, in January this year.

In an emailed response to TechCrunch queries in April, Goyal had attributed the delays to the spread of coronavirus and said he expected to close the round by mid-May. He wrote to employees today that Tiger Global, Temasek, Baillie Gifford and Ant Financial had already participated in the current round.

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Microsoft Surface Duo review

In the early days, Microsoft had misgivings about calling the Surface Duo a phone. Asked to define it as such, the company has had the tendency to deflect with comments like, “Surface Duo does much more than make phone calls.” Which, to be fair, it does. And to also be fair, so do most phones. Heck, maybe the company is worried that the idea of a Microsoft Phone still leaves a bitter taste in some mouths.

The Duo is an ambitious device that is very much about Microsoft’s own ambitions with the Surface line. The company doesn’t simply want to be a hardware manufacturer — there are plenty of those in the world. It wants to be at the vanguard of how we use our devices, going forward. It’s a worthy pursuit in some respects.

After all, for all of the innovations we’ve seen in mobile in the past decade, the category feels static. Sure there’s 5G. Next-gen wireless was supposed to give the industry a temporary kick in the pants. That it hasn’t yet has more to do with external forces (the pandemic caught practically everyone off guard), but even so, it hardly represents some radical departure for mobile hardware.

What many manufacturers do seem to agree on is that the next breakthrough in mobile devices will be the ability to fit more screen real estate into one’s pocket. Mobile devices are currently brushing up against the upper threshold of hardware footprint, in terms of what we’re capable of holding in our hands and willing to carrying around in our pockets. Breakthroughs in recent years also appear to have gotten us close to a saturation point in terms of screen-to-body ratio.

Foldable screens are a compelling way forward. After years of promise, the technology finally arrived as screens appeared to be hitting an upper limit. Of course, Samsung’s Galaxy Fold stumbled out of the gate, leaving other devices like the Huawei Mate X scrambling. That product finally launched in China, but seemed to disappear from the conversation in the process. Motorola’s first foldable, meanwhile, was a flat-out dud.

Announced at a Surface event last year, the Duo takes an entirely different approach to the screen problem — one that has strengths and weaknesses when pitted against the current crop of foldables. The solution is a more robust one. The true pain point of foldables has always been the screen itself. Microsoft sidesteps this by simply connecting two screens. That introduces other problems, however, including a sizable gap and bezel combination that puts a decided damper on watching full-screen video.

Microsoft is far from the first company to take a dual-screen approach, of course. ZTE’s Axon M springs to mind. In that case — as with others — the device very much felt like two smartphones stuck together. Launched at the height of ZTE’s experimental phase, it felt like, at best, a shot in the dark. Microsoft, on the other hand, immediately sets its efforts apart with some really solid design. It’s clear that, unlike the ZTE product, the Duo was created from the ground up.

Image Credits: Brian Heater

The last time I wrote about the Duo, it was a “hands-on” that only focused on the device’s hardware. That was due, in part, to the fact that the software wasn’t quite ready at the time of writing. Microsoft was, however, excited to show off the hardware — and for good reason. This really looks and feels nice. Aesthetically, at least, this thing is terrific. It’s no wonder that this is the first device I’ve seen in a while that legitimately had the TechCrunch staff excited.

While the Surface Duo is, indeed, a phone, it’s one that represents exciting potential for the category. And equally importantly, it demonstrates that there is a way to do so without backing into the trappings of the first generation of foldables. In early briefings with the device, Surface lead Panos Panay devoted a LOT of time to breaking down the intricacies of the design decisions made here. To be fair, that’s partially because that’s pretty much his main deal, but I do honestly believe that the company had to engineer some breakthroughs here in order to get hardware that works exactly right, down to a fluid and solid hinge that maintains wired connections between the two displays.

There are, of course, trade-offs. The aforementioned gap between screens is probably the largest. This is primarily a problem when opening a single app across displays (a trick accomplished by dragging and dropping a window onto both screens in a single, fluid movement). This is likely part of the reason the company is positioning this is as far more of a productivity app than an entertainment one — in addition to all of the obvious trappings of a piece of Microsoft hardware.

Image Credits: Brian Heater

The company took great pains to ensure that two separate apps can open on each of the screens. And honestly, the gap is actually kind of a plus when multitasking with two apps open, creating a clear delineation between the two sides. And certain productivity apps make good use of the dual screens when spanning both. Take Gmail, which offers a full inbox on one side and the open selected message on the other. Ditto for using the Amazon app to read a book. Like the abandoned Courier project before it, this is really the perfect form factor for e-book reading — albeit still a bit small for more weary eyes.

There are other pragmatic considerations with the design choices here. The book design means there’s no screen on the exterior. The glass and mirror Windows logo looks lovely, but there’s no easy way to preview notifications. Keep in mind the new Galaxy Fold and Motorola Razr invested a fair amount in the front screen experience on their second-generation devices. Some will no doubt prefer to have a device that’s offline while closed, and I suppose you could always just keep the screens facing outward, if you so chose.

You’ll probably also want to keep the screens facing out if you’re someone who needs your device at the ready to snap a quick photo. Picture taking is really one of the biggest pain points here. There’s no rear camera. Instead, I’m convinced that the company sees most picture taking on the device as secondary to webcam functionality for things like teleconferencing. I do like that experience of having the device standing up and being able to speak into it handsfree (assuming your able to get it to appropriate eye level).

But when it came to walking around, snapping shots to test the camera, I really found myself fumbling around a lot here. You always feels like you’re between three and five steps away from taking a quick shot. And the fact of the matter is the shots aren’t great. The on-board camera also isn’t really up to the standards of a $1,400 device. Honestly, the whole thing feels like an afterthought. Perhaps I’ve been spoiled after using the Note 20’s camera for the last several weeks, but hopefully Microsoft will prioritize the camera a bit more the next go-round.

Another hardware disappointment for me is the size of the bezels. Microsoft says they’re essentially the minimal viable size so as to not make people accidentally trigger the touchscreen. Which, fair enough. But while it’s not a huge deal aesthetically, it makes the promise of two-hand typing when the device is in laptop mode close to impossible.

That was honestly one of the things I was excited for here. Instead, you’re stuck thumb-typing as you would on any standard smartphone. I have to admit, the Duo was significantly smaller in person than I imagined it would be, for better and worse. Those seeking a fuller typing experience will have to wait for the Neo.

The decision not to include 5G is a curious one. This seems to have been made, in part, over concerns around thinness and form factor. And while 5G isn’t exactly mainstream at this point in 2020, it’s important to attempt to future proof a $1,400 device as much as possible. This isn’t the kind of upgrade most of us make every year or so. By the time the cycle comes back around, LTE is going to feel pretty dated.

Image Credits: Brian Heater

Battery life is pretty solid, owing to the inclusion of two separate batteries, each located beneath a screen. I was able to get about a day and a half of life — that’s also one of the advantages of not having 5G on board, I suppose. Performance also seemed solid for the most part, while working with multiple apps front and center. For whatever reason, however, the Bluetooth connection was lacking. I had all sorts of issues keeping both the Surface Buds and Pixel Buds connected, which can get extremely annoying when attempting to listen to a podcast.

These are the sorts of questions a second-generation device will seek to answer. Ditto for some of the experiential software stuff. There was some bugginess with some of the apps early on. A software update has gone a ways toward addressing much of that, but work needs to be done to offer a seamless dual-screen experience. Some apps like Spotify don’t do a great job spanning screens. Spacing gets weird, things require a bit of finessing on the part of the user. If the Duo proves a more popular form factor, third party developers will hopefully be more eager to fine tune things.

There were other issues, including the occasional blacked out screen on opening, though generally be resolved by closing and reopening the device. Also, Microsoft has opted to only allow one screen to be active at a time when they’re both positioned outward so as to avoid accidentally triggering the back of the touch screen. Switching between displays requires doubling tapping the inactive one.

But Microsoft has added a number of neat tricks like App Groups, which are a quick shortcut to fire up two apps at once. As for why Microsoft went with Android, rather than their own Windows 10, which is designed to be adaptable to a number of different form factors, the answer is refreshingly pragmatic and straightforward. Windows 10 just doesn’t have enough mobile apps. Microsoft clearly wants the Duo to serve as a proof of concept for this new form factor, though one questions whether the company will be able to sufficiently monetize the copycats.

For now, however, that means a lot more selection for the end user, including a ton of Google productivity apps. That’s an important plus given how few of us are tied exclusively to Microsoft productivity apps these days.

As with other experimental form factors, the first generation involves a fair bit of trial and error. Sure, Microsoft no doubt dogfooded the product in-house for a while, but you won’t get a really good idea of how most consumers interact with this manner of device — or precisely what they’re looking for. Six months from now, Microsoft will have a much better picture, and all of those ideas will go into refining the next generation product.

That said, the hardware does feels quite good for a first generation device — even if certain key sacrifices were made in the process. The software will almost certainly continue to be refined over the course of the next year as well. I’d wait a bit on picking it up for that reason alone. The question, ultimately becomes what the cost of early adoption is.

In the grand scheme of foldable devices, maybe $1,400 isn’t that much, perhaps. But compared to the vast majority of smartphone and tablet flagships out there, it’s a lot. Especially for something that still feels like a first generation work in progress. For now, it feels like a significant chunk of the price is invested in novelty and being an early adopter for a promising device.

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Robinhood’s financial news team launches its first video series

Stock trading app Robinhood has seen rapid growth during the pandemic, leading it to raise hundreds of millions more dollars in funding — most recently in a $200 million round that valued the company at $11.2 billion.

And the content side of the business has been growing as well. The company acquired the financial podcast and newsletter MarketSnacks early last year, rebranding it as Robinhood Snacks. Now it says the Snacks newsletter has 20 million subscribers, while the podcast has nearly 2 million monthly listeners. And a shorter version of the podcast, the Snacks Minute, was one of Spotify’s most popular podcasts of the summer.

The next step: Launching a video series, also called Robinhood Snacks, which will be available on the Robinhood/Robinhood Snacks YouTube and Instagram accounts.

Snacks founders Jack Kramer and Nick Martell still host the podcast and they’ll be hosting the video series as well. Like the rest of their content, it’s a news-focused show, filmed from their living rooms and quickly edited by the Robinhood Snacks team.

“We’re starting with two videos a week for now, until we get the hang of it,” Kramer told me. But the goal is to get to a daily publication schedule in the “near future.”

He argued that video seemed like the best way to reach new, younger audiences who might not be reading the newsletter or listening to the podcasts. The approach will be similar to other Robinhood Snacks products, analyzing two big financial stories in less than three minutes, and in a way that should be accessible to normal viewers.

Kramer suggested that just as Robinhood is trying to “democratize finance for all,” Robinhood Snacks is trying to deliver financial news in “a totally new way.” As Martell put it, they want Snacks to be useful to experienced investors while remaining accessible to people who don’t know “what an earnings report [is], don’t know revenues from profit and maybe are confused about why the Tiffany’s acquisition isn’t going through.”

“When we’re covering news, we’re focused on: How is this relevant to listeners as consumers?” Kramer added. “How is this relevant to investors as a potential investor in the company stock? And how is this interesting and relevant to consumers with regard to trends that play in the story that we’re telling. It’s not just earnings per share.”

The ultimate goal, he said, is to make finance “as culturally relevant as music, sports and the arts.”

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Carbon Health to launch 100 pop-up COVID-19 testing clinics across the US

Primary care health tech startup Carbon Health has added a new element to its “omnichannel” healthcare approach with the launch of a new pop-up clinic model that is already live in San Francisco, LA, Seattle, Brooklyn and Manhattan, with Detroit to follow soon – and that will be rolling out over the next weeks and months across a variety of major markets in the U.S., ultimately resulting in 100 new COVID-19 testing sites that will add testing capacity on the order of around an additional 100,000 patients per month across the country.

So far, Carbon Health has focused its COVID-19 efforts around its existing facilities in the Bay Area, and also around pop-up testing sites set up in and around San Francisco through collaboration with genomics startup Color, and municipal authorities. Now, Carbon Health CEO and co-founder Even Bali tells me in an interview that the company believes the time is right for it to take what it has learned and apply that on a more national scale, with a model that allows for flexible and rapid deployment. In fact, Bali says the they realized and began working towards this goal as early as March.

“We started working on COVID response as early as February, because we were seeing patients who are literally coming from Wuhan, China to our clinics,” Bali said. “We expected the pandemic to hit any time. And partially because of the failure of federal government control, we decided to do everything we can to be able to help out with certain things.”

That began with things that Carbon could do locally, more close to home in its existing footprint. But it was obvious early on to Bali and his team that there would be a need to scale efforts more broadly. To do that, Carbon was able to draw on its early experience.

“We have been doing on-site, we have been going to nursing homes, we have been working with companies to help them reopen,” he told me. “At this point, I think we’ve done more than 200,000 COVID tests by ourselves. And I think I do more than half of all the Bay Area, if you include that the San Francisco City initiative is also partly powered by Carbon Health, so we’re already trying to scale as much as possible, but at some point we were hitting some physical space limits, and had the idea back in March to scale with more pop-up, more mobile clinics that you can actually put up like faster than a physical location.”

Interior of one of Carbon Health’s COVID-19 testing pop-up clinics in Brooklyn.

To this end, Carbon Health also began using a mobile trailer that would travel from town to town in order to provide testing to communities that weren’t typically well-served. That ended up being a kind of prototype of this model, which employs construction trailers like you’d see at a new condo under development acting as a foreman’s office, but refurbished and equipped with everything needed for on-site COVID testing run by medical professionals. These, too, are a more temporary solution, as Carbon Health is working with a manufacturing company to create a more fit-for-purpose custom design that can be manufactured at scale to help them ramp deployment of these even faster.

Carbon Health is partnering with Reef Technologies, a SoftBank -backed startup that turns parking garage spots into locations for businesses, including foodservice, fulfilment, and now Carbon’s medical clinics. This has helped immensely with the complications of local permitting and real estate regulations, Bali says. That means that Carbon Health’s pop-up clinics can bypass a lot of the red tape that slows the process of opening more traditional, permanent locations.

While cost is one advantage of using this model, Bali says that actually it’s not nearly as inexpensive as you might think relative to opening a more traditional clinic – at least until their custom manufacturing and economies of scale kick in. But speed is the big advantage, and that’s what is helping Carbon Health look ahead from this particular moment, to how these might be used either post-pandemic, or during the eventual vaccine distribution phase of the COVID crisis. Bali points out that any approved vaccine will need administration to patients, which will require as much, if not more infrastructure than testing.

Exterior of one of Carbon Health’s COVID-19 testing pop-up clinics in Brooklyn.

Meanwhile, Carbon Health’s pop-up model could bridge the gap between traditional primary care and telehealth, for ongoing care needs unrelated to COVID.

“A lot of the problems that telemedicine is not a good solution for, are the things where a video check-in with a doctor is nearly enough, but you do need some diagnostic tests – maybe you might you may need some administration, or you may need like a really simple physical examination that nursing staff can do with the instructions of the doctor. So if you think about those cases, pretty much 90% of all visits can actually be done with a doctor on video, and nursing staff in person.”

COVID testing is an imminent, important need nationwide – and COVID vaccine administration will hopefully soon replace it, with just as much urgency. But even after the pandemic has passed, healthcare in general will change dramatically, and Carbon Health’s model could be a more permanent and scalable way to address the needs of distributed care everywhere.

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StackRox nabs $26.5M for a platform that secures containers in Kubernetes

Containers have become a ubiquitous cornerstone in how companies manage their data, a trend that has only accelerated in the last eight months with the larger shift to cloud services and more frequent remote working due to the coronavirus pandemic. Alongside that, startups building services to enable containers to be used better are also getting a boost.

StackRox, which develops Kubernetes-native security solutions, says that its business grew by 240% in the first half of this year, and on the back of that, it is announcing today that it has raised $26.5 million to expand its business into international markets and continue investing in its R&D.

The funding, which appears to be a Series C, has an impressive list of backers. It is being led by Menlo Ventures, with Highland Capital Partners, Hewlett-Packard Enterprise, Sequoia Capital and Redpoint Ventures also participating. Sequoia and Redpoint are previous investors, and the company has raised around $60 million to date.

HPE is a strategic backer in this round:

“At HPE, we are working with our customers to help them accelerate their digital transformations,” said Paul Glaser, VP, Hewlett Packard Enterprise, and head of Pathfinder. “Security is a critical priority as they look to modernize their applications with containers. We’re excited to invest in StackRox and see it as a great fit with our new software HPE Ezmeral to help HPE customers secure their Kubernetes environments across their full application life cycle. By directly integrating with Kubernetes, StackRox enables a level of simplicity and unification for DevOps and Security teams to apply the needed controls effectively.”

Kamal Shah, the CEO, said that StackRox is not disclosing its valuation, but he confirmed it has definitely gone up. For some context, according to PitchBook data, the company was valued at $145 million in its last funding round, a Series B in 2018. Its customers today include the likes of Priceline, Brex, Reddit, Zendesk and Splunk, as well as government and other enterprise customers, in a container security market that analysts project will be worth some $2.2 billion by 2024, up from $568 million last year.

StackRox got its start in 2014, when containers were starting to pick up momentum in the market. At the time, its focus was a little more fragmented, not unlike the container market itself — it provided solutions that could be used with Docker containers as well as others. Over time, Shah said that the company chose to hone its focus just on Kubernetes, originally developed by Google and open-sourced, and now essentially the de facto standard in containerisation.

“We made a bet on Kubernetes at a time when there were multiple orchestrators, including Mesosphere, Docker and others,” he said. “Over the last two years Kubernetes has won the war and become the default choice, the Linux of the cloud and the biggest open-source cloud application. We are all Kubernetes all the time because what we see in the market are that a majority of our customers are moving to it. It has over 35,000 contributors to the open-source project alone, it’s not just Red Hat (IBM) and Google.” Research from CNCF estimates that nearly 80% of organizations that it surveyed are running Kubernetes in production.

That is not all good news, however, with the interest underscoring a bigger need for Kubernetes-focused security solutions for enterprises that opt to use it.

Shah says that some of the typical pitfalls in container architecture arise when they are misconfigured, leading to breaches; as well as around how applications are monitored; how developers use open-source libraries; and how companies implement regulatory compliance. Other security vulnerabilities that have been highlighted by others include the use of insecure container images; how containers interact with each other; the use of containers that have been infected with rogue processes; and having containers not isolated properly from their hosts.

But, Shah noted, “Containers in Kubernetes are inherently more secure if you can deploy correctly.” And to that end that is where StackRox’s solutions attempt to help: The company has built a multi-purposes toolkit that provides developers and security engineers with risk visibility, threat detection, compliance tools, segmentation tools and more. “Kubernetes was built for scale and flexibility, but it has lots of controls, so if you misconfigure it, it can lead to breaches. So you need a security solution to make sure you configure it all correctly,” said Shah.

He added that there has been a definite shift over the years from companies considering security solutions as an optional element into one that forms part of the consideration at the very core of the IT budget — another reason why StackRox and competitors like TwistLock (acquired by Palo Alto Networks) and Aqua Security have all seen their businesses really grow.

“We’ve seen the innovation companies are enabling by building applications in containers and Kubernetes. The need to protect those applications, at the scale and pace of DevOps, is crucial to realizing the business benefits of that innovation,” said Venky Ganesan, partner, Menlo Ventures, in a statement. “While lots of companies have focused on securing the container, only StackRox saw the need to focus on Kubernetes as the control plane for security as well as infrastructure. We’re thrilled to help fuel the company’s growth as it dominates this dynamic market.”

“Kubernetes represents one of the most important paradigm shifts in the world of enterprise software in years,” said Corey Mulloy, general partner, Highland Capital Partners, in a statement. “StackRox sits at the forefront of Kubernetes security, and as enterprises continue their shift to the cloud, Kubernetes is the ubiquitous platform that Linux was for the Internet era. In enabling Kubernetes-native security, StackRox has become the security platform of choice for these cloud-native app dev environments.”

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Groww, an investment app for millennials in India, raises $30M led by YC Continuity

Even as more than 150 million people are using digital payment apps each month in India, only about 20 million of them invest in mutual funds and stocks. A startup that is attempting to change that by courting millennials has just received a big backing.

Bangalore-headquartered Groww said on Thursday it had raised $30 million in its Series C financing round. YC Continuity, the growth-stage investment fund of Y Combinator, led the round, while existing investors Sequoia India, Ribbit Capital and Propel Ventures participated in it. The new round brings three-year-old startup Groww’s total raise-to-date to $59 million.

Groww allows users to invest in mutual funds, including systematic investment planning (SIP) and equity-linked savings. The app maintains a very simplified user interface to make it easier for its largely millennial customer base to comprehend the investment world. It offers every fund that is currently available in India.

In recent months, the startup has expanded its offerings to allow users to buy stocks of Indian firms and digital gold, said Lalit Keshre, co-founder and chief executive of Groww, in an interview with TechCrunch. Keshre and other three co-founders of Groww worked at Flipkart before launching their own startup.

Groww has amassed over 8 million registered users for its mutual fund offering, and over 200,000 users have bought stocks from the platform, said Keshre. The new fund will allow Groww to further expand its reach in the country and also introduce new products, he said.

One of those products is the ability to allow users to buy stocks of U.S.-listed firms and derivatives, he said. The startup is already testing this with select users, he said.

“We believe Groww is building the largest retail brokerage in India. At YC, we have known the founders since the company was just an idea and they are some of the best product people you will meet anywhere in the world. We are grateful to be partners with Groww as they build one of the largest retail financial platforms in the world,” said Anu Hariharan, partner at YC Continuity, in a statement.

More than 60% of Groww users come from smaller cities and towns of India and 60% of these have never made such investments before, said Keshre. The startup is conducting workshops in several small cities to educate people about the investment world. And that’s where the growth opportunities lie.

“India is seeing increased participation of retail investors in financial markets — with 2 million new stock market investors added in the last quarter alone,” said Ashish Agrawal, principal at Sequoia Capital India, in a statement.

Scores of startups such as Zerodha, INDWealth and Cube Wealth have emerged and expanded in India in recent years to offer wealth management platforms to the country’s growing internet population. Many established financial firms such as Paytm have also expanded their offerings to include investments in mutual funds. Amazon, which has aggressively expanded its financial services catalog in India in recent months, also sells digital gold in the country.

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Daily Crunch: Taboola and Outbrain call off their merger

A massive content recommendation merger falls apart, Microsoft reveals the release date and pricing for its flagship game console and Alexa enables phone calls for AT&T customers. This is your Daily Crunch for September 9, 2020.

The big story: Taboola and Outbrain call off their merger

Looks like the two biggest companies in the content recommendation market won’t be teaming up after all.

Taboola and Outbrain announced an $850 million merger last year, but apparently a “challenging cultural fit” and the financial impact of the COVID-19 pandemic on the digital ad business have scuttled the deal. There’s been no formal announcement yet, but TechCrunch’s Ingrid Lunden has confirmed the news with both companies.

“We’ve seen changing conditions in the market due to COVID-19, and we decided to terminate the deal,” an anonymous source told us.

The tech giants

Microsoft confirms $499 Xbox Series X arrives November 10, pre-orders begin September 22 — We mentioned a new, scaled-down Xbox yesterday, but Microsoft announced today that the flagship Xbox Series X is arriving on November 10.

AT&T customers can now make and receive calls via Alexa — Once enabled, customers with supported devices will be able to speak to the Alexa digital assistant to start a phone call or answer an incoming call.

Snapchat’s new Lens celebrates tomorrow’s NFL kickoff — Snap and the NFL recently announced a multi-year extension to their content partnership.

Startups, funding and venture capital

Yubico unveils its latest YubiKey 5C NFC security key, priced at $55 — The company says this new security key offers the strongest defenses against some of the most common cyberattacks.

Xometry raises $75M Series E to expand custom manufacturing marketplace — The company has built an online marketplace where businesses can find manufacturers across the world with excess capacity to build whatever they need.

Rick Moranis breaks acting hiatus for 30 seconds to launch Mint’s $30 a month unlimited plan — Why? Who knows!

Advice and analysis from Extra Crunch

As direct listing looms, Palantir insiders are accelerating stock sales — Danny Crichton examines how insiders perceive Palantir’s value.

Shift’s George Arison shares 6 tips for taking your company public via a SPAC — Shift has nearly completed the SPAC process.

Slack’s earnings detail how COVID-19 is both a help and a hindrance to cloud growth — Alex Wilhelm looks at Slack’s latest numbers.

(Reminder: Extra Crunch is our subscription membership program, which aims to democratize information about startups. You can sign up here.)

Everything else

Watch the first trailer for the insanely star-studded ‘Dune’ — Sandworms, ahoy!

Learn how to build a service marketplace from the CTOs of Peloton and DoorDash at Disrupt — The connected fitness platform and food delivery app have both built massive service businesses that touch millions of consumers.

The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 3pm Pacific, you can subscribe here.

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