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Where is voice tech going?

Mark Persaud
Contributor

Mark Persaud is digital product manager and practice lead at Moonshot by Pactera, a digital innovation company that leads global clients through the next era of digital products with a heavy emphasis on artificial intelligence, data and continuous software delivery.

2020 has been all but normal. For businesses and brands. For innovation. For people.

The trajectory of business growth strategies, travel plans and lives have been drastically altered due to the COVID-19 pandemic, a global economic downturn with supply chain and market issues, and a fight for equality in the Black Lives Matter movement — amongst all that complicated lives and businesses already.

One of the biggest stories in emerging technology is the growth of different types of voice assistants:

  • Niche assistants such as Aider that provide back-office support.
  • Branded in-house assistants such as those offered by BBC and Snapchat.
  • White-label solutions such as Houndify that provide lots of capabilities and configurable tool sets.

With so many assistants proliferating globally, voice will become a commodity like a website or an app. And that’s not a bad thing — at least in the name of progress. It will soon (read: over the next couple years) become table stakes for a business to have voice as an interaction channel for a lovable experience that users expect. Consider that feeling you get when you realize a business doesn’t have a website: It makes you question its validity and reputation for quality. Voice isn’t quite there yet, but it’s moving in that direction.

Voice assistant adoption and usage are still on the rise

Adoption of any new technology is key. A key inhibitor of technology is often distribution, but this has not been the case with voice. Apple, Google, and Baidu have reported hundreds of millions of devices using voice, and Amazon has 200 million users. Amazon has a slightly more difficult job since they’re not in the smartphone market, which allows for greater voice assistant distribution for Apple and Google.

Image Credits: Mark Persaud

But are people using devices? Google said recently there are 500 million monthly active users of Google Assistant. Not far behind are active Apple users with 375 million. Large numbers of people are using voice assistants, not just owning them. That’s a sign of technology gaining momentum — the technology is at a price point and within digital and personal ecosystems that make it right for user adoption. The pandemic has only exacerbated the use as Edison reported between March and April — a peak time for sheltering in place across the U.S.

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Hearsay, maker of compliant tools for financial services, deepens ties with Salesforce

Financial services companies like banks and insurance tend to be heavily regulated. As such, they require a special level of security and auditability. Hearsay, which makes compliant communications tools for these types of companies, announced a new partnership with Salesforce today, enabling smooth integration with Salesforce CRM and marketing automation tools.

The company also announced that Salesforce would be taking a minority stake in Hearsay, although company co-founder and CEO Clara Shih, did not provide any details on that part of the announcement.

Shih says the company created the social selling category when it launched 10 years ago. Today, it provides a set of tools like email, messaging and websites along with a governance layer to help financial services companies interact with customers in a compliant way. Their customers are primarily in banking, insurance, wealth management and mortgages.

She said that they realized if they could find a way to share the data they were collecting with the Hearsay tool set with CRM and marketing automation software in an automated way, it would make greater use of this information than it could on its own. To that end, they have created a set of APIs to enable that with some built-in connectors. The first one will be to connect Hearsay to Salesforce, with plans to add other vendors in the future.

“It’s about being able to connect [data from Hearsay] with the CRM system of record, and then analyzing it across thousands, if not tens of thousands of advisors or bankers in a single company, to uncover best practices. You could then use that information like GPS driving directions that help every advisor behave in the moment and reach out in the moment like the very best advisor would,” Shih explained.

In practice, this means sharing the information with the customer data platform (CDP), the CRM and marketing automation tooling to deliver more intelligent targeting based on a richer body of information. So the advisor can use information gleaned from everything he or she knows about the client across the set of tools to deliver a more meaningful personal message instead of a targeted ad or an email blast. As Shih points out, the ad might even make sense, but could be tone deaf depending on the circumstances.

“What we focus on is this human-client experience, and that can only be delivered in the last mile because it’s only with the advisor that many clients will confide in these very important life events and life decisions, and then conversely, it’s only in the last mile that the trusted advisor can deliver relationship advice,” she said.

She says what they are trying to do by combining streams of data about the customer is build loyalty in a way that pure technology solutions just aren’t capable of doing. As she says, nobody says they are switching banks because it has the best chat bot.

Hearsay was founded in 2009 and has raised $51 million, as well as whatever other money Salesforce will be adding to the mix with today’s investment. Other investors include Sequoia and NEA Associates. Its last raise was way back in 2013, a $30 million Series C.

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Elon Musk says Tesla is open to licensing Autopilot, supplying powertrains and batteries to other automakers

Tesla CEO Elon Musk noted on Twitter on Tuesday night that the automaker would be “open to licensing software and supplying powertrains & batteries” to other automakers. Musk added that that would even include Autopilot, the advanced driver assistance software that Tesla offers to provide intelligent cruise control in a number of different driving scenarios.

Musk was addressing a Teslarati article about how German automakers are looking to close the technology gap between themselves and Tesla when it comes to producing EVs. Volkswagen Chairman Herbert Diess has in past comments expressed admiration for Musk and Tesla’s accomplishments on multiple occasions.

VW has created its own EV platform, which it intends to use as the base for a number of different electric cars, ranging from sport sedans to SUVs. The company is also openly pursuing licensing its MEB platform to other automakers, and struck such a deal with Ford last July for the American automaker’s European business.

Musk says that Tesla’s interest in licensing stems from its underlying goal, which is “to accelerate sustainable energy, not crush competitors,” according to his tweet. This isn’t the first time the automaker has indicated a willingness to be more open in pursuit of that goal: In 2014, Musk penned a blog post announcing that Tesla would be making its intellectual property freely available to “anyone who, in good faith, wants to use [its] technology.”

Of course, that hasn’t stopped Tesla from taking aim at potential competitors via legal action on occasion — it filed suit against electric automaker Rivian and four of its former employees last week, alleging theft of trade secrets and poaching key talent.

A platform licensing or supplier relationship would be an entirely different arrangement, of course, and one with plenty of precedent in the automaker industry. Nor would it necessarily negatively impact Tesla’s own auto sales, as the company offers a number of other selling points above and beyond its underlying powertrain and battery tech.

At the time of Volkswagen’s announcement, the German automaker said it expects it could make up to $20 billion in revenue through the MEB deal with Ford, with a significant chunk of that coming from MEB parts and components supply. Tesla could realize similar gains but perhaps amplified globally, especially if it can ramp powertrain and battery production beyond the capacity needs of its own vehicle demand capacity.

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Hevo draws in $8 million Series A for its no-code data pipeline service

Hevo founders Manish Jethani and Sourabh Agarwal

According to data pipeline startup Hevo, many small- to medium-sized companies juggle more than 40 different applications to manage sales, marketing, finance, customer support and other operations. All of these applications are important sources of data that can be analyzed to improve a company’s performance. That data often remains separate, however, making it difficult for different teams to collaborate.

Hevo enables its clients’ employees to integrate data from more than 150 different sources, including enterprise software from Salesforce and Oracle, even if they don’t have any technical experience. The company announced today that it has raised an $8 million Series A round led by Singapore-based venture capital firm Qualgro and Lachy Groom, a former executive at payments company Stripe.

The round, which brings Hevo’s total raised so far to $12 million, also included participation from returning investors Chiratae Ventures and Sequoia Capital India’s early-stage startup program Surge. The company was first covered by TechCrunch when it raised seed funding in 2017.

Hevo’s Series A will be used to increase the number of integrations available on its platform, and hire sales and marketing teams in more countries, including the United States and Singapore. The company currently has clients in 16 markets, including the U.S., India, France, Australia and Hong Kong, and counts payments company Marqeta among its customers.

In a statement, Puneet Bysani, tech lead manager at Marqeta, said, “Hevo saved us many engineering hours, and our data teams could focus on creating meaningful KPIs that add value to Marqeta’s business. With Hevo’s pre-built connectors, we were able to get data from many sources into Redshift and Snowflake very quickly.”

Based in Bangalore and San Francisco, Hevo was founded in 2017 by chief executive officer Manish Jethani and chief technology officer Sourabh Agarwal. The two previously launched SpoonJoy, a food delivery startup that was acquired by Grofers, one of India’s largest online grocery delivery services, in 2015. Jethani and Agarwal spent a year working at Grofers before leaving to start Hevo.

Hevo originated in the challenges Jethani and Agarwal faced while developing tech for SpoonJoy’s order and delivery system.

“All of our team members would come to us and say, ‘hey, we want to look at these metrics,’ or we would ask our teams questions if something wasn’t working. Oftentimes, they would not have the data available to answer those questions,” Jethani told TechCrunch.

Then at Grofers, Jethani and Agarwal realized that even large companies face the same challenges. They decided to work on a solution to allow companies to quickly integrate data sources.

For example, a marketing team at a e-commerce company might have data about its advertising on social media platforms, and how much traffic campaigns bring to their website or app. But they might not have access to data about how many of those visitors actually make purchases, or if they become repeat customers. By building a data pipeline with Hevo, they can bring all that information together.

Hevo is designed to serve all sectors, including e-commerce, healthcare and finance. In order to use it, companies sign up for Hevo’s services on its website and employees enter their credentials for software supported by the platform. Then Hevo automatically extracts and organizes the data from those sources and prepares it for cloud-based data warehouses, such as Amazon Redshift and Snowflake. A user dashboard allows companies to customize integrations or hide sensitive data.

Hevo is among a roster of “no code, low code” startups that have recently raised venture capital funding for building tools that enable non-developers to add features to their existing software. The founders say its most direct competitor is Fivetran, an Oakland, California-based company that also builds pipelines to move data to warehouses and prepare it for analysis.

Jethani said Hevo differentiates by “optimizing our product for non-technical users.”

“The number of companies who need to use data is very high and there is not enough talent available in the market. Even if it is available, it is very competitive and expensive to hire that engineering talent because big companies like Google and Amazon are also competing for the same talent,” he added. “So we felt that there has to be some democratization of who can use this technology.”

Hevo also focuses on integrating data in real-time, which is especially important for companies that provide on-demand deliveries or services. During the COVID-19 pandemic, Jethani says e-commerce clients have used Hevo to manage an influx in orders as people under stay-at-home orders purchase more items online. Companies are also relying on Hevo to help organize and manage data as their employees continue to work remotely.

In a statement about the funding, Qualgro managing partner Heang Chhor said, “Hevo provides a truly innovative solution for extracting and transforming data across multiple data sources–in real time with full automation. This helps enterprises to fully capture the benefit of data flowing though the many databases and software they currently use. Hevo’s founders are the type of globally-minded entrepreneurs that we like to support.”

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SAP decision to spin out Qualtrics 20 months after spending $8B surprises industry watchers

When SAP announced it was spinning out Qualtrics on Sunday, a company it bought less than two years ago for an eye-popping $8 billion, it was enough to make your head spin. At the time, then CEO Bill McDermott saw it as a way to bridge the company’s core operational with customer data, while acquiring a cloud company that could help generate recurring revenue for the ERP giant, and maybe give it a dose of innovation along the way.

But Sunday night the company announced it was spinning out the acquisition, giving its $8 billion baby independence, and essentially handing the company back to founder Ryan Smith, who will become the largest individual shareholder when this all over.

It’s not every day you see founders pull in a windfall like $8 billion, get sucked into the belly of the large corporate beast and come out the other side just 20 months later with the cash, independence and CEO as the largest individual stockholder.

While SAP will own a majority of the stock, much like Dell owns a majority of VMware, the company will operate independently and have its own board. It can acquire other firms and make decisions separately from SAP.

We spoke to a few industry analysts to find out what they think about all this, and while the reasoning behind the move involves a lot of complex pieces, it could be as simple as the deal was done under the previous CEO, and the new one was ready to move on from it.

Bold step

It’s certainly unusual for a company like SAP to spend this kind of money, and then turn around so quickly and spin it off. In fact, Brent Leary, principal analyst at CRM Essentials, says that this was a move he didn’t see coming, and it could be related to that fat purchase price. “To me it could mean that SAP didn’t see the synergies of the acquisition panning out as they had envisioned and are looking to recoup some of their investment,” Leary told TechCrunch.

Holger Mueller, an analyst with Constellation Research agreed with Leary’s assessment, but doesn’t think that means the deal failed. “SAP doesn’t lose anything in regards to their […] data and experience vision, as they still retain [controlling interest in Qualtrics] . It also opens the opportunity for Qualtrics to partner with other ERP vendors [and broaden its overall market],” he said.

Jeanne Bliss, founder and president at CustomerBLISS, a company that helps clients deliver better customer experiences sees this as a positive step forward for Qualtrics. “This spin off enables Qualtrics to focus on its core business and prove its ability to provide essential technology executives are searching for to enable speed of decision making, innovation and customization,” she said.

Show me the money

Patrick Moorhead, founder and principal analyst at Moor Insight & Strategy sees the two companies moving towards a VMware/Dell model where SAP removes the direct link between them, which could then make them more attractive to a broader range of customers than perhaps they would have been as part of the SAP family. “The big play here is all financial. With tech stocks up so high, SAP isn’t seeing the value in its stock. I am expecting a VMware kind of alignment with a strategic collaboration agreement,” he said.

Ultimately though, he says the the move reflects a cultural failure on the part of SAP. It simply couldn’t find a way to co-exist with a younger, more nimble company like Qualtrics. “I believe SAP spinning out Qualtrics is a sign that its close connection to create symbiotic value has failed. The original charter was to bring it in to modernize SAP but apparently the “not invented here” attitudes kicked in and doomed integration,” Moorhead said.

That symbiotic connection would have involved McDermott’s vision of combining operational and customer data, but Leary also suggested that since the deal happened under previous the CEO, that perhaps new CEO Christian Klein wants to start with a clean slate and this simply wasn’t his deal.

Qualtrics for the win

In the end, Qualtrics got all that money, gets to IPO after all, and returns to being an independent company selling to a larger potential customer base. All of the analysts we spoke to agreed the news is a win for Qualtrics itself.

Leary says the motivation for the original deal was to give SAP a company that could sell beyond its existing customer base. “It seems like that was the impetus for the acquisition, and the fact that SAP is spinning it off as an IPO 20 months after acquiring Qualtrics gives me the impression that things didn’t come together as expected,” he said.

Mueller also sees nothing but postivies Qualtrics. “It’s a win […] for Qualtrics, which can now deliver what they wanted [from the start], and it’s a win for customers as Qualtrics can run as fast as they want,” he said.

Regardless, the company moves on, and the Qualtrics IPO moves forward, and it’s almost as though Qualtrics gets a do-over with $8 billion in its pocket for its trouble.

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Facetune maker Lightricks brings its popular selfie retouching features to video

Lightricks, the startup behind a suite of photo and video editing apps — including most notably, selfie editor Facetune 2 — is taking its retouching capabilities to video. Today, the company is launching Facetune Video, a selfie video editing app, that allows users to retouch and edit their selfie and portrait videos using a set of A.I.-powered tools.

While there are other selfie video editors on the market, most today are generally focused on edits involving filters and presets, virtually adding makeup, or using AR or stickers to decorate your video in some way. Facetune Video, meanwhile, is focused on creating a photorealistic video by offering a set of features similar to those found in Lightricks’ flagship app, Facetune .

That means users are able to retouch their face with tools for skin smoothing, teeth whitening, and face reshaping, plus eye color, makeup, conceal, glow, and matte features. In addition, users can tweak tools for general video edits, like adjusting the brightness, contrast, color, and more, like other video editing apps allow for. And these edits can be applied in real-time to see how they look as the video plays, instead of after the fact.

In addition, users can apply the effect to one frame only and Facetune Video’s post-processing technology and neural networks will simultaneously apply an effect to the same area of every frame throughout the entire video, making it easier to quickly retouch a problem area without having to go frame-by-frame to do so.

“In Facetune Video, the 3D face model plays a significant role; users edit only one video frame, but it’s on us, behind-the-scenes, to automatically project the location of their edits to 2D face mesh coordinates derived from the 3D face model, and then apply them consistently on all other frames in the video,” explains Lightricks co-founder and CEO Zeev Farbman. “A Lightricks app needs to be not only powerful, but fun to use, so it’s critical to us that this all happens quickly and seamlessly,” he says.

Users can also save their favorite editing functions as “presets” allowing them to quickly apply their preferred settings to any video automatically.

In a future version of the app, the company plans to introduce a “heal” function which, like Facetune, will allow users to easily remove blemishes.

Image Credits: Lightricks

The technology that makes these selfie video edits work involves Lightricks’ deep neural networks that utilize facial feature detection and geometry analysis for the app’s retouching capabilities. These processes work in real-time without having to transmit data to the cloud first. There’s also no lag or delay while files are rendering.

In addition, Facetune Video uses the facial feature detection along with 3D face modeling A.I. to ensure that every part of the user’s face is captured for editing and retouching, the company says.

“What we’re also doing is taking advantage of lightweight neural networks. Before the user has even begun to retouch their selfie video, A.I.-powered algorithms are already working so that the user experience is quick and interactive,” says Farbman.

The app also does automated segmentation of more complex parts of the face like the interior of the eye, hair, or the lips, which helps it achieve a more accurate end result.

“It’s finding a balance between accuracy in the strength of the face modeling we use, and speed,” Farbman adds.

One challenge here was overcoming the issue of jittering effects, which is when the applied effect shakes as the video plays. The company didn’t want its resulting videos to have this problem, which makes the end result look gimmicky, so it worked to eliminate any shake-like effects and other face tracking issues so videos would look more polished and professional in the end.

The app builds off the company’s existing success and brand recognition with Facetune. With the new app, for example, the retouch algorithms mimic the original Facetune 2 experience, so users familiar with Facetune 2 will be able to quickly get the hang of the retouch tools.

Image Credits: Lightricks

The launch of the new app expands Lightricks further in the direction of video, which has become a more popular way of expressing yourself across social media, thanks to the growing use of apps like TikTok and features like Instagram Stories, for example.

Before, Lightricks’ flagship video product, however, was Videoleap, which focused on more traditional video editing, and not selfie videos where face retouching could be used.

Facetune has become so widely used, its name has become a verb — as in, “she facetunes her photos.” But it has also been criticized at times for its unrealistic results. (Of course, that’s more on the app’s users sliding the smoothing bar all the way to end.)

Across its suite of apps, which includes the original Facetune app (Facetune Classic), Facetune 2, Seen (for Stories), Photofox, Video Leap, Enlight Quickshot, Pixaloop, Boosted, and others, including a newly launched artistic editor, Quickart, the company has generated over 350 million downloads.

Its apps also now reach nearly 200 million users worldwide. And through its subscription model, Lightricks is now seeing what Farbman describes as revenues that are “increasing exponentially year-over-year,” but that are being continually reinvested into new products.

Like its other apps, Facetune Video will monetize by way of subscriptions. The app is free to use by will offer a VIP subscription for more features, at a price point of $8 per month, $36 per year, or a one-time purchase of $70.

Facetune 2 subscribers will get a discount on annual subscriptions, as well. The company will also sell the app in its Social Media Kit bundle on the App Store, which includes Facetune Video, Facetune 2, Seen and soon, an undisclosed fourth app. However, the company isn’t yet offering a single subscription that provides access to all bundled apps.

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Roblox jumps to over 150M monthly users, will pay out $250M to developers in 2020

Gaming platform Roblox, which has seen a surge of use due to the coronavirus pandemic, now has over 150 million monthly active users, up from the 115 million it announced in February before the U.S.’s shelter-in-place orders went into effect. The company also said its developer community is on pace to earn over $250 million in 2020, up from the $110 million they earned last year.

These metrics and other company news were announced over the weekend at RDC, Roblox’s annual developer conference that was held virtually for the first time because of the COVID-19 pandemic.

Roblox, to be clear, doesn’t build the games that run on its platform. Instead, offers the platform for developers to build upon, similar to the App Store. Many of its most popular games are free, monetizing as players spend on in-game items using virtual cash called Robux. Some of the company’s larger individual games, before the pandemic, would average over 10 million monthly users. And over 10 games as of February claimed more than 1 billion total visits.

Image Credits: Roblox

 

Thanks to the pandemic, however, these gaming milestones have significantly increased in size.

During the first part of the year, the Roblox game Adopt Me! reached 1.615 million concurrent users and over 10 billion visits. A new game called Piggy, launched in January 2020, now has over 5 billion plays. Jailbreak surpassed 500,000 concurrent users during a live event held in April 2020.

In total, there are now 345,000 developers on the Roblox platform who are monetizing their games, and over half of Robux being spent in catalog is now being spent on user-generated content (UGC) items, in less than 12 months after the UGC catalog program began.

The more than doubling of Roblox developers’ earnings year-over-year is related to a combination of factors, including the platform’s growing game catalog, new development tools, international expansions, and of course, a pandemic that has locked kids indoors away from their friends, forcing them to go online to connect.

On notable factor driving the increased developer earnings, however, was Roblox’s recent introduction of Premium Payouts, which pays developers based on the engagement time of Premium subscribers in their game. Through this system, launched earlier this spring, developers earned $2 million in June 2020 as part of this program alone.

Image Credits: Roblox

During the RDC event, Roblox also detailed its plans for expanded developer tools and platform updates. This includes new collaboration tools for larger development teams, which will allow developers to grant permissions to team members and contractors to work only on a certain part of their game. It will also launch a talent marketplace by the end of the year to help developers find people and resources to help with game development.

Roblox also said it will begin rolling out automatic machine translation for all supported languages, languages including Brazilian Portuguese, English, French, German, Japanese, Korean, Simplified and Traditional Chinese, and Spanish. This feature will help developers more easily reach international users with localized versions of their games.

Later this summer, Roblox said it will launch “Developer Events,” a new service that will help developers find one another in their local communities. Initially, these events will be held virtually, but will transition to in-person events when it’s safe to do so.

The company also signed its first music label partnership with Monstercat, an indie electronic music label known for its collaborations with gaming titles and artists, including Marshmello and Vicetone. The partnership has initially yielded 51 tracks for developers to use, free of charge, in their games. These include songs from a variety of EDM genres, such as Drum & Bass, Synthwave, Electro, Chillout, Electronic, Breaks, Future Bass, and more. More tracks will be added over time, Roblox says.

“The accomplishments of our developer community have eclipsed even our loftiest expectations; I am incredibly impressed by the unique and creative experiences being introduced on the Roblox platform,” said David Baszucki, founder and CEO, Roblox. “Our focus is to give developers the tools and resources they need to pursue their vision and create larger, more complex, more realistic experiences and collectively build the Metaverse.”

Roblox raised an additional $150 million in Series G funding, led by Andreessen Horowitz’s late-stage venture fund, just before the COVID-19 health crisis hit the U.S., valuing the business at $4 billion. Ahead of this, Roblox had been working to take its platform further outside the U.S. and into China, through a strategic partnership with Tencent focused on bringing its coding curriculum to the region and through added support for Chinese languages, among other things. Also with the additional funding, Roblox said it planned to help further its expansion effects, and build out more tools and its developer ecosystem.

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YC alum Paragon snags $2.5M seed for low-code app integration platform

Low-code is a hot category these days. It helps companies build workflows or simple applications without coding skills, freeing up valuable engineering resources for more important projects. Paragon, a member of the Y Combinator Winter 2020 cohort, announced a $2.5 million seed round today for its low-code application integration platform.

Investors include Y Combinator, Village Global, Global Founders Capital, Soma Capital and FundersClub.

“Paragon makes it easier for non-technical people to be able to build out integrations using our visual workflow editor. We essentially provide building blocks for things like API requests, interactions with third party APIs and conditional logic. And so users can drag and drop these building blocks to create workflows that describe business logic in their application,” says company co-founder Brandon Foo.

Foo acknowledges there are a lot of low-code workflow tools out there, but many like UIPath, Blue Prism and Automation Anywhere concentrate on robotic process automation (RPA) to automate certain tasks. He says he and co-founder Ishmael Samuel wanted to focus on developers.

“We’re really focused on how can we improve developer efficiency, and how can we bring the benefits of low code to product and engineering teams and make it easier to build products without writing manual code for every single integration, and really be able to streamline the product development process,” Foo told TechCrunch.

The way it works is you can drag and drop one of 1,200 predefined connectors for tools like Stripe, Slack and Google Drive into a workflow template, and build connectors very quickly to trigger some sort of action. The company is built on AWS serverless architecture, so you define the trigger action and subsequent actions, and Paragon handles all of the back-end infrastructure requirements for you.

It’s early days for the company. After launching in private beta in January, the company has 80 customers. It currently has six employees, including Foo, who previously co-founded Polymail, and Samuel, who was previously lead engineer at Uber. They plan to hire four more employees this year.

With both founders people of color, they definitely are looking to build a diverse team around them. “I think it’s already sort of built into our DNA. As a diverse founding team we have perhaps a broader viewpoint and perspective in terms of hiring the kind of people that we seek to work with. Of course, I think there’s always room for improvement, and so we’re always looking for new ways that we can be more inclusive in our hiring recruiting process [as we grow],” he said.

As far as raising during a pandemic, he says it’s been a crazy time, but he believes they are solving a real problem and that they can succeed in spite of the macro economic conditions of the moment.

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Explorium reels in $31M Series B as data discovery platform grows

In a world with growing amounts of data, finding the right set for a particular machine learning model can be a challenge. Explorium has created a platform to make that an easier task, and today the startup announced a $31 million Series B.

The round was led by Zeev Ventures, with help from Dynamic Loop, Emerge, 01 Advisors and F2 Capital. Today’s investment brings the total raised to $50 million, according to the company.

CEO and co-founder Maor Shlomo says the company’s platform is designed to help people find the right data for their model. “The next frontier in analytics will not be about how you fine tune or improve a certain algorithm, it will be how do you find the right data to fit into those algorithms to make them as useful and impactful as possible,” he said.

He says that companies need this more than ever during the pandemic because this can help customers find more relevant data at a time when their historical data might not be useful to help build predictive models. For instance, if you’re a retailer, your historical shopping data won’t be relevant if you are in an area where you can no longer open your store, he says.

“There are so many environmental factors that are now influencing every business problem that organizations are trying to solve that Explorium is becoming this […] layer where you search for data to solve your business problems to fuel your predictive models,” he said.

When the pandemic hit in March, he worried about how it would affect his company, and he put a hold on hiring, but as he saw business increasing in April and May, he decided to accelerate again. The company currently has 87 employees between offices in Israel and the United States and he plans to be at 100 in the next couple of months.

When it comes to hiring, he says he doesn’t try to have hard and fast hiring rules like you have a certain degree or have gone to a certain school. “The only thing that’s important is getting good people hungry to succeed. The more diverse the culture is, the more diverse the group is, we find the more fun it is for people to discover each other and to discover different cultures,” Shlomo explained.

In terms of fundraising, while the company needs money to fuel its growth, at the same time it still had plenty of money in the bank from last year’s round. “We got into the pandemic and we didn’t know how long it’s going to last, and [early on] we didn’t yet know how it would impact the business. Existing investors were always bullish about the company. We decided to just go with that,” he said.

The company was founded in 2017 and previously raised a $19.1 million Series A round last year.

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ComplyAdvantage nabs $50M for an AI platform and database to detect and stop financial crime

The growth of digital banking has opened up a wealth of opportunities for making the world of finance more accessible and transparent to a greater number of people. But the darker underbelly is that it has also created more avenues for illicit activity to flourish, with some $2 trillion laundered annually but only 1-3% of that sum “caught.”

To help combat that, a London-based startup called ComplyAdvantage, which has built an AI platform and wider database of some 10 million entities to help identify and track those involved in financial crime, is today announcing a growth round of funding of $50 million to expand its reach and operations.

Specifically, the plan will be to use the funding for hiring, to invest in the tools it uses to detect entities and map the relationships between them and to bring on more clients.

“We’ve been focused on more granular analysis and being able to scale to hundreds of millions of searches across our database,” said Charles Delingpole, founder and CEO, said in an interview. “The next phase is more around the network of contacts and more enhanced diligence.” The company today has some 250 staff, mainly in the U.K. and Romania.

The Series C is being led by Ontario Teachers’ Pension Plan Board (Ontario Teachers’), a huge pension plan out of Canada (U.S. $155 billion) that is known as a prolific growth-stage tech investor.  Previous backers Balderton and Index are also in the round. The company has raised $88 million to date, and while it’s not disclosing its valuation, for some context, it was last valued at around $141 million in its last round a year ago, per PitchBook data.

Today, ComplyAdvantage has more than 500 customers, primarily financial institutions using it to meet regulatory compliance requirements as well as to reduce their own exposure and risk, providing some automated services to complement (and potentially replace) some of the manual checks that they make to prove you are who you say you are.

It also has a growing business with other groups that are tracking fraud for their own ends, such as insurance companies trying to stem fraudulent claims and government entities. It also has a number of partners that access its database and use that as part of their own solutions (Quantexa, which announced a big funding round of its own last week, is one of those licensing partners).

“A lot of companies in the wider identity space are powered by our data, even if they don’t disclose it,” Delingpole said.

The company had its start originally focusing on the process of helping banks meet regulatory compliance around fraud detection by ingesting and analysing documents provided by customers ahead of opening accounts, initiating larger transactions with new entities and so on. That has taken on a more targeted purpose in recent years as ComplyAdvantage’s database has grown deeper.

Today the core of the business is based around a central database of known money launderers, human traffickers, terrorists, drug lords and others who exploit financial rails to run illegal operations and make a profit from them.

It’s formed, Delingpole said, by way of “automatically ingesting tens of thousands of data points, from websites, national warning lists, linked real-time databases of companies and various other applications on top of that.” That central database is still growing, and Delingpole believes that it’s not unrealistic for it to run to a much higher number in order to get the most accurate picture possible.

“Although we have 10 million today, we want to cover every company and person one day. We think the right number is 8 billion” — that is, the world’s population. “With that larger database we can solve other kinds of crimes too.”

The startup already has a straight channel through to government agencies, reporting connections and discoveries on behalf of their clients directly to them. And to be clear, although there are now strong data protection measures in place in Europe, when people are linked to illegal activity, that puts them on a list that supersedes that. When someone is suspected and is tipped to authorities, that information is kept private.

While all institutions will continue to have teams of people dedicated to risk analysis and investigations into activity, the idea here is to supercharge that work with more data that helps those investigators tackle the greater scale of data in the world today.

“Detecting financial crime in billions of transactions that take place around the globe has become nearly impossible without the application of data science and machine learning. It is this approach that has made ComplyAdvantage into a leader in the category, and the go-to partner for organizations that seek to automate what are still very often manual or inadequate processes,” said Jan Hammer, a partner at Index Ventures, in a statement.

The longer-term opportunity is to build out ComplyAdvantage’s customer base by leveraging information that the company is already surfacing that might be relevant to other verticals.

Insurance is a key example, Delingpole said. “We already see a mention of a person having defaulted on a loan then making an insurance claim,” he said. “We see credit, fraud and ownership data together.”

This, of course, puts the company into close competition not just with others building credit databases but those building strong AI platforms to leverage data to gain deeper insights into seemingly disparate digital actions and to build better pictures of activity on behalf of their clients. That includes not just partners like Quantexa, but others like Palantir.

The strength here, said Delingpole, is the sheer size of ComplyAdvantage’s database and its very specific focus on financial crime and how that sits for companies that need to police that, both for their own business health and for regulatory reasons. It’s that focus that has attracted investment.

“ComplyAdvantage offers mission-critical technology solutions for combating financial crime and keeping pace with an ever-evolving regulatory landscape,” said Olivia Steedman, senior managing director, TIP, at Ontario Teachers’. “The company is well-positioned to continue its rapid growth as its powerful technology platform transforms the compliance and risk management process for its clients.”

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