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VCs are betting big on Kubernetes: Here are 5 reasons why

I worked at Google for six years. Internally, you have no choice — you must use Kubernetes if you are deploying microservices and containers (it’s actually not called Kubernetes inside of Google; it’s called Borg). But what was once solely an internal project at Google has since been open-sourced and has become one of the most talked about technologies in software development and operations.

For good reason. One person with a laptop can now accomplish what used to take a large team of engineers. At times, Kubernetes can feel like a superpower, but with all of the benefits of scalability and agility comes immense complexity. The truth is, very few software developers truly understand how Kubernetes works under the hood.

I like to use the analogy of a watch. From the user’s perspective, it’s very straightforward until it breaks. To actually fix a broken watch requires expertise most people simply do not have — and I promise you, Kubernetes is much more complex than your watch.

How are most teams solving this problem? The truth is, many of them aren’t. They often adopt Kubernetes as part of their digital transformation only to find out it’s much more complex than they expected. Then they have to hire more engineers and experts to manage it, which in a way defeats its purpose.

Where you see containers, you see Kubernetes to help with orchestration. According to Datadog’s most recent report about container adoption, nearly 90% of all containers are orchestrated.

All of this means there is a great opportunity for DevOps startups to come in and address the different pain points within the Kubernetes ecosystem. This technology isn’t going anywhere, so any platform or tooling that helps make it more secure, simple to use and easy to troubleshoot will be well appreciated by the software development community.

In that sense, there’s never been a better time for VCs to invest in this ecosystem. It’s my belief that Kubernetes is becoming the new Linux: 96.4% of the top million web servers’ operating systems are Linux. Similarly, Kubernetes is trending to become the de facto operating system for modern, cloud-native applications. It is already the most popular open-source project within the Cloud Native Computing Foundation (CNCF), with 91% of respondents using it — a steady increase from 78% in 2019 and 58% in 2018.

While the technology is proven and adoption is skyrocketing, there are still some fundamental challenges that will undoubtedly be solved by third-party solutions. Let’s go deeper and look at five reasons why we’ll see a surge of startups in this space.

 

Containers are the go-to method for building modern apps

Docker revolutionized how developers build and ship applications. Container technology has made it easier to move applications and workloads between clouds. It also provides as much resource isolation as a traditional hypervisor, but with considerable opportunities to improve agility, efficiency and speed.

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44.01 secures $5M to turn billions of tons of carbon dioxide to stone

Reducing global greenhouse gas emissions is an important goal, but another challenge awaits: lowering the levels of CO2 and other substances already in the atmosphere. One promising approach turns the gas into an ordinary mineral through entirely natural processes; 44.01 hopes to perform this process at scale using vast deposits of precursor materials and a $5 million seed round to get the ball rolling.

The process of mineralizing CO2 is well known among geologists and climate scientists. A naturally occurring stone called peridotite reacts with the gas and water to produce calcite, another common and harmless mineral. In fact this has occurred at enormous scales throughout history, as witnessed by large streaks of calcite piercing peridotite deposits.

Peridotite is normally found miles below sea level, but on the easternmost tip of the Arabian peninsula, specifically the northern coast of Oman, tectonic action has raised hundreds of square miles of the stuff to the surface.

Talal Hasan was working in Oman’s sovereign investment arm when he read about the country’s coast having the largest “dead zone” in the world, a major contributor to which was CO2 emissions being absorbed by the sea and gathering there. Hasan, born into a family of environmentalists, looked into it and found that, amazingly, the problem and the solution were literally right next to each other: the country’s mountains of peridotite, which theoretically could hold billions of tons of CO2.

Around that time, in fact, The New York Times ran a photo essay about Oman’s potential miracle mineral, highlighting the research of Peter Kelemen and Juerg Matter into its potential. As the Times’ Henry Fountain wrote at the time:

If this natural process, called carbon mineralization, could be harnessed, accelerated and applied inexpensively on a huge scale — admittedly some very big “ifs” — it could help fight climate change.

That’s broadly speaking the plan proposed by Hasan and, actually, both Kelemen and Matter, who make up the startup’s “scientific committee.” 44.01 (the molecular weight of carbon dioxide, if you were wondering) aims to accomplish mineralization economically and safely with a few novel ideas.

First is the basic process of accelerating the natural reaction of the materials. It normally occurs over years as CO2 and water vapor interact with the rock — no energy needs to be applied to make the change, since the reaction actually results in a lower energy state.

“We’re speeding it up by injecting a higher CO2 content than you would get in the atmosphere,” said Hasan. “We have to drill an engineered borehole that’s targeted for mineralization and injection.”

Diagram showing how carbon can be sequestered as a mineral.

Image Credits: 44.01

The holes would maximize surface area, and highly carbonated water would be pumped in cyclically until the drilled peridotite is saturated. Importantly, there’s no catalyst or toxic additive, it’s just fizzy water, and if some were to leak or escape, it’s just a puff of CO2, like what you get when you open a bottle of soda.

Second is achieving this without negating the entire endeavor by having giant trucks and heavy machinery pumping out new CO2 as fast as they can pump in the old stuff. To that end Hasan said the company is working hard at the logistics side to create a biodiesel-based supply line (with Wakud) to truck in the raw material and power the machines at night, while solar would offset that fuel cost at night.

It sounds like a lot to build up, but Hasan points out that a lot of this is already done by the oil industry, which as you might guess is fairly ubiquitous in the region. “It’s similar to how they drill and explore, so there’s a lot of existing infrastructure for this,” he said, “but rather than pulling the hydrocarbon out, we’re pumping it back in.” Other mineralization efforts have broken ground on the concept, so to speak, such as a basalt-injection scheme up in Iceland, so it isn’t without precedent.

Third is sourcing the CO2 itself. The atmosphere is full of it, sure, but it’s not trivial to capture and compress enough to mineralize at industrial scales. So 44.01 is partnering with Climeworks and other carbon capture companies to provide an end point for their CO2 sequestration efforts.

Plenty of companies are working on direct capture of emissions, be they at the point of emission or elsewhere, but once they have a couple million tons of CO2, it’s not obvious what to do next. “We want to facilitate carbon capture companies, so we’re building the CO2 sinks here and operating a plug and play model. They come to our site, plug in, and using power on site, we can start taking it,” said Hasan.

How it would be paid for is a bit of an open question in the exact particulars, but what’s clear is a global corporate appetite for carbon offsetting. There’s a large voluntary market for carbon credits beyond the traditional and rather outdated carbon credits. 44.01 can sell large quantities of verified carbon removal, which is a step up from temporary sequestration or capture — though the financial instruments to do so are still being worked out. (DroneSeed is another company offering a service beyond offsets that hopes to take advantage of a new generation of emissions futures and other systems. It’s an evolving and highly complex overlapping area of international regulations, taxes and corporate policy.)

For now, however, the goal is simply to prove that the system works as expected at the scales hoped for. The seed money is nowhere near what would be needed to build the operation necessary, just a step in that direction to get the permits, studies and equipment necessary to properly perform demonstrations.

“We tried to get like-minded investors on board, people genuinely doing this for climate change,” said Hasan. “It makes things a lot easier on us when we’re measured on impact rather than financials.” (No doubt all startups hope for such understanding backers.)

Apollo Projects, a early-stage investment fund from Max and Sam Altman, led the round, and Breakthrough Energy Ventures participated. (Not listed in the press release but important to note, Hasan said, were small investments from families in Oman and environmental organizations in Europe.)

Oman may be the starting point, but Hasan hinted that another location would host the first commercial operations. While he declined to be specific, one glance at a map shows that the peridotite deposits spill over the northern border of Oman and into the eastern tip of the UAE, which no doubt is also interested in this budding industry and, of course, has more than enough money to finance it. We’ll know more once 44.01 completes its pilot work.

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Following the IPCC’s report, we need more technology to respond to more disasters

This week, the Intergovernmental Panel on Climate Change released its major sixth assessment report on the physical science of climate change. The details are grim, if getting more precise, as better and more comprehensive data becomes available. As my colleague Mike Butcher summarized yesterday, it’s “stern and blunt in its conclusions.”

While many of the themes of the report will be familiar to any person not living under (an ever increasingly hot) rock, one part jumped out at me as I was perusing the documents. The working group assessed that regardless of mitigation and adaptation strategies, many of the negative changes happening to Earth will continue unabated in all future scenarios. From the summary report:

Many changes due to past and future greenhouse gas emissions are irreversible for centuries to millennia, especially changes in the ocean, ice sheets and global sea level. […] Mountain and polar glaciers are committed to continue melting for decades or centuries (very high confidence). Loss of permafrost carbon following permafrost thaw is irreversible at centennial timescales (high confidence) …

In short, there is already momentum toward a warmer and more chaotic world, and we have limited tools to stop many of these trends.

There has been a rush of initiatives, investments and startups bubbling around the theme of climate tech, with projects focused on everything from improving the yields and decreasing the emissions of agriculture and food production, to improving the power grid, and to reducing the emissions from air conditioning in buildings. Those initiatives are fine and important, but they don’t get at one of the toughest challenges facing us this century: that disasters are here, they are coming and they are going to continue to get more intense as the century rolls on.

Just this past week, we have seen the second-largest fire in California’s state history with the Dixie Fire, currently blazing across hundreds of thousands of acres in the northern reaches of the state. Meanwhile in Greece, hundreds of wildfires are causing an unprecedented crisis in that country. Droughts, floods, hurricanes, typhoons and more are intensifying and ravaging ever more billions of people across every continent.

One response to solving this problem is improving resilience — building up cities and structures as well as food and water systems that are fortified against these natural calamities. Many of those projects though are costly and also time-consuming, measured over the course of decades rather than months.

Instead, we need a more immediate push to develop better disaster response technology today. I’ve covered a wide segment of these companies over the past few months. There’s RapidSOS, which is adding more data into emergency calls to make responses faster and more efficient. There’s Qwake, which raised $5.5 million to build hardware and cloud services to allow firefighters to visualize their environments in smoky conditions. Meanwhile, YC-backed Gridware has also raised more than $5 million to create sensors to identify failures in the power grid faster.

In short, there are a growing crop of disaster tech startups — but more are going to be needed to fight the panoply of disasters that will strike in the years ahead.

There’s so much to do: better mental health resources for victims and first responders, easier access to recovery funds to heal lives, higher-quality sensors and data analyses to identify disasters earlier, faster logistics to evacuate people out of harm’s way. In fact, there are quite literally dozens of fields that need more investment and founder attention.

It’s not an easy market, as I pointed out in an analysis of sales cycles. Budgets are tight, disasters are random, and technology is often an afterthought. In some ways though, that friction is a font of creativity — how to build these next-generation of services and how to sell them is the risk that leads to the potential high return.

As the IPCC’s report made clear this week, the chaotic weather and intense disasters we’ve seen the past few decades aren’t going to abate any time soon. But with ingenuity, we can respond better to the disasters that are already on their way, and save lives and treasure in the process.

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Salesforce wants Salesforce+ to be the Netflix of biz content

Salesforce just closed a $28 billion mega-deal to buy Slack, generating significant debt along the way, but it’s not through spending big money.

Today the CRM giant announced it was taking a leap into streaming media with Salesforce+, a forthcoming digital media network with a focus on video that, in the words of the company, “will bring the magic of Dreamforce to viewers across the globe with luminary speakers.” (Whether that’s a good thing or not is in the eye of the beholder.)

Over the last year, Salesforce has watched companies struggle to quickly transform into fully digital entities. The Slack purchase is part of Salesforce’s response to the evolving market, but the company believes it can do even more with an on-demand video service providing business content around the clock.

Salesforce president and CMO Sarah Franklin said in an official post that her company has had to “reimagine how to succeed in the new digital-first world.” The answer apparently involves getting the larger Salesforce community together in a new live, and recorded video push.

In a Q&A with Colin Fleming, Salesforce’s senior vice president of Global Brand Marketing, he sees it as a way to evolve the content the company has been sharing all along. “As a result of the pandemic, we looked at the media landscape, where people are consuming content, and decided the days of white papers in a business-to-business setting were no longer interesting to people. We’re staring at a cookie-less future. And looking at the consumer world, we reflected on that for Salesforce and asked, “Why shouldn’t we be thinking about this too,” he said in the Q&A.

The company’s efforts are not small. Axios reports that there are “50 editorial leads” aboard the project to help it launch, and “hundreds of people at Salesforce currently working on Salesforce+” more broadly.

Notably Salesforce does not have near-term monetization plans for Salesforce+. The service will be free, and will not feature external advertising. Salesforce+ will launch in September in conjunction with Dreamforce and include four channels: Primetime for news and announcements, Trailblazer for training content, Customer 360 for success stories and Industry Channels for industry-specific offerings.

The company hopes that by combining the announcement with Dreamforce, it will help drive interest in what Salesforce has cooked up. After the Dreamforce push, Salesforce+ will enter into interesting territory. How much do Salesforce customers, and the larger business community, really want what the company describes as “compelling live and on-demand content for every role, industry and line of business,” and “engaging stories, thought leadership and expert advice”?

Salesforce is considered the most successful SaaS-first company in history, and as such may have an opinion that people are interested in hearing. In its most recent quarterly earnings report in May, the company disclosed $5.96 billion in revenue, up 23% compared to the year-ago quarter, putting it close to a $25 billion run rate. The company also generates lots of cash. But being cash-rich doesn’t absolve the question of whether this new streaming effort will prove to be a money pit, costing buckets of cash to produce with limited returns.

The service sounds a bit like your LinkedIn feed brought to life, but in video form. At the very least, it’s probably the largest content marketing scheme of all time, but can it ever pay for itself either as a business unit or through some other monetization plans (like advertising) down the road?

Brent Leary, founder and principal analyst at CRM essentials, says that he could see Salesforce eyeing advertising revenue with this venture and having it all tie into the Salesforce platform. “A customer could sponsor a show, advertise a show or possibly collaborate on a show… and have leads generated from the show directly tied to the activity from those options while tracking ROI, and it’s all done on one platform. And the content lives on with ads living on with them,” Leary told TechCrunch.

Whether that’s the ultimate goal of this venture remains to be seen, but Salesforce has proven that there is market appetite for Dreamforce content at least in the physical world, with over a hundred thousand people involved in 2019, the last time the company was able to hold a live event. While the pandemic shifted most traditional conference activity into the digital realm, making Dreamforce and related types of content available year-round in video format makes some sense in that context.

Precisely how the company will justify the sizable addition to its marketing budget will be interesting; measuring ROI from video products is not entirely straightforward when it is not monetized directly. And sooner or later it will have to have some direct or indirect impact on the business or face questions from shareholders on the purpose of the venture.

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Jerry raises $75M at a $450M valuation to build a car ownership ‘super app’

Just months after raising $28 million, Jerry announced today that it has raised $75 million in a Series C round that values the company at $450 million.

Existing backer Goodwater Capital doubled down on its investment in Jerry, leading the “oversubscribed” round. Bow Capital, Kamerra, Highland Capital Partners and Park West Asset Management also participated in the financing, which brings Jerry’s total raised to $132 million since its 2017 inception. Goodwater Capital also led the startup’s Series B earlier this year. Jerry’s new valuation is about “4x” that of the company at its Series B round, according to co-founder and CEO Art Agrawal

“What factored into the current valuation is our annual recurring revenue, growing customer base and total addressable market,” he told TechCrunch, declining to be more specific about ARR other than to say it is growing “at a very fast rate.” He also said the company “continues to meet and exceed growth and revenue targets” with its first product, a service for comparing and buying car insurance. At the time of the company’s last raise, Agrawal said Jerry saw its revenue surge by “10x” in 2020 compared to 2019.

Jerry, which says it has evolved its model to a mobile-first car ownership “super app,” aims to save its customers time and money on car expenses. The Palo Alto-based startup launched its car insurance comparison service using artificial intelligence and machine learning in January 2019. It has quietly since amassed nearly 1 million customers across the United States as a licensed insurance broker.

“Today as a consumer, you have to go to multiple different places to deal with different things,” Agrawal said at the time of the company’s last raise. “Jerry is out to change that.”

The new funding round fuels the launch of the company’s “compare-and-buy” marketplaces in new verticals, including financing, repair, warranties, parking, maintenance and “additional money-saving services.” Although Jerry also offers a similar product for home insurance, its focus is on car ownership.

Agrawal told TechCrunch that the company is on track to triple last year’s policy sales, and that its policy sales volume makes Jerry the number one broker for a few of the top 10 insurance carriers.
“The U.S. auto insurance industry is an at least $250 billion market,” he added. “The market opportunity for our first auto financing service is $260 billion. As we enter more car expense categories, our total addressable market continues to grow.”

Image Credits: Jerry

“Access to reliable and affordable transportation is critical to economic empowerment,” said Rafi Syed, Jerry board member and general partner at Bow Capital, which also doubled down on its investment in the company. “Jerry is helping car owners make the most of every dollar they earn. While we see Jerry as an excellent technology investment showcasing the power of data in financial services, it’s also a high-performing investment in terms of the financial inclusion it supports.” 

Goodwater Capital Partner Chi-Hua Chien said the firm’s recurring revenue model makes it stand out from lead generation-based car insurance comparison sites.

CEO Agrawal agrees, noting that Jerry’s high-performing annual recurring revenue model has made the company “attractive to investors” in addition to the fact that the startup “straddles” the auto, e-commerce, fintech and insurtech industries.

“We recognized those investment opportunities could drive our business faster and led to raising the round earlier than expected,” he told TechCrunch. “We’re eager to launch new categories to save customers time and money on auto expenses and the new investment shortens our time to market.”

Agrawal also believes Jerry is different from other auto-related marketplaces out there in that it aims to help consumers with various aspects of car ownership (from repair to maintenance to insurance to warranties), rather than just one. The company also believes it is set apart from competitors in that it doesn’t refer a consumer to an insurance carrier’s site so that they still have to do the work of signing up with them separately, for example. Rather, Jerry uses automation to give consumers customized quotes from more than 45 insurance carriers “in 45 seconds.” The consumers can then sign on to the new carrier via Jerry, which can then cancel former policies on their behalf.

Jerry makes recurring revenue from earning a percentage of the premium when a consumer purchases a policy on its site from carriers such as Progressive.

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Salesforce’s Kathy Baxter is coming to TC Sessions: SaaS to talk AI

As the use of AI has grown and developed over the last several years, companies like Salesforce have tried to tap into it to improve their software and help customers operate faster and more efficiently. Kathy Baxter, principal architect for the ethical AI practice at Salesforce, will be joining us at TechCrunch Sessions: SaaS on October 27th to talk about the impact of AI on SaaS.

Baxter, who has more than 20 years of experience as a software architect, joined Salesforce in 2017 after more than a decade at Google in a similar role. We’re going to tap into her expertise on a panel discussing AI’s growing role in software.

Salesforce was one of the earlier SaaS adherents to AI, announcing its artificial intelligence tooling, which the company dubbed Einstein, in 2016. While the positioning makes it sound like a product, it’s actually much more than a single entity. It’s a platform component, which the various pieces of the Salesforce platform can tap into to take advantage of various types of AI to help improve the user experience.

That could involve feeding information to customer service reps on Service Cloud to make the call move along more efficiently, helping salespeople find the customers most likely to close a deal soon in the Sales Cloud or helping marketing understand the optimal time to send an email in the Marketing Cloud.

The company began building out its AI tooling early on with the help of 175 data scientists and has been expanding on that initial idea since. Other companies, both startups and established companies like SAP, Oracle and Microsoft, have continued to build AI into their platforms as Salesforce has. Today, many SaaS companies have some underlying AI built into their service.

Baxter will join us to discuss the role of AI in software today and how that helps improve the operations of the service itself, and what the implications are of using AI in your software service as it becomes a mainstream part of the SaaS development process.

In addition to our discussion with Baxter, the conference will also include Databricks’ Ali Ghodsi, UiPath’s Daniel Dines and Puppet’s Abby Kearns, as well as investors Casey Aylward and Sarah Guo, among others. We hope you’ll join us. It’s going to be a stimulating day.

Buy your pass now to save up to $100, and use CrunchMatch to make expanding your empire quick, easy and efficient. We can’t wait to see you in October!

Is your company interested in sponsoring or exhibiting at TC Sessions: SaaS 2021? Contact our sponsorship sales team by filling out this form.

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OwnBackup reels in $240M Series E on $3.35B valuation, up from $1.4B in January

OwnBackup, the late-stage startup that helps companies in the Salesforce ecosystem back up their data, announced a $240 million Series E today at a $3.35 billion valuation. The latter is up from $1.4 billion in January when the company announced a $167.5 million Series D.

Alkeon Capital and B Capital Group co-led today’s investment, which also included BlackRock Private Equity Partners and Tiger Global along with existing investors Insight Partners, Salesforce Ventures, Sapphire Ventures and Vertex Ventures. The company has now raised close to $500 million, with more than $455 million coming since last July.

That’s a lot of capital, but OwnBackup CEO Sam Gutmann says that as the Salesforce ecosystem has grown, which includes not only Salesforce itself, but companies like Veeva and nCino, business has been booming, growing 100% year-over-year since 2018. That kind of growth gets investor attention, and Gutmann reported a lot of inbound investor interest in this round.

What’s more, the company announced that it will now support the same type of backup for Microsoft Dynamics 365 customers, thereby greatly expanding its potential market. “We’re also announcing that we are expanding into the Microsoft ecosystem specifically around Microsoft Dynamics 365’s huge ecosystem. I think it’s the second-largest B2B SaaS ecosystem beyond Salesforce. We’re just getting started there, but super excited about the opportunity,” he said.

The company also sees the opportunity to grow the business through acquisition. Over the last year, it bought two small companies, but he says that was more focused on acquiring specific talent to develop the platform, while future acquisitions could be more focused on expanding the business itself.

As the company takes on this kind of investment, Gutmann sees an IPO possibility at some point in the future, but for now he’s concentrating on growth. “We’re not focused on exiting. We’ve really focused on developing what is already a huge market and growing into an even bigger market, continuing to expand with a business that has great unit economics and continues to grow nicely,” he said.

The company has ballooned to 500 employees this year, with plans to double that number in the next year. As he does that, Gutmann says that hiring in general is challenging, but he is always looking to find ways to diversify his workforce. “It’s really, really hard. Our hiring managers definitely focus on [diversity], but at the end of the day, we want the best employees for the job. I think we’ve made a lot of strides. We’re working with one of our largest investors, Insight, who is co-sponsoring a program to train, more on the junior side, some underrepresented minorities in technical fields and bring them on as full-time employees after that program,” Gutmann said.

Gutmann says his offices have remained open throughout the pandemic, but nobody was required to come in. In fact, he says that his company is one of the few that has actually added office space to make it easier to distance. The company, which is located in New Jersey, has also expanded space outdoors for working outside when the weather permits.

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Upscribe, raising $4M, wants to drive subscription-first DTC brand growth

Upscribe founder and CEO Dileepan Siva watched the retail industry make a massive shift to subscription e-commerce for physical products over the past decade, and decided to get in it himself in 2019.

The Los Angeles-based company, developing subscription software for direct-to-consumer e-commerce merchants, is Siva’s fourth startup experience and first time as founder. He closed a $4 million seed round to go after two macro trends he is seeing: buying physical products, like consumer-packaged goods, on a recurring basis, and new industries offering subscriptions, like car and fashion companies.

Merchants use Upscribe’s technology to drive subscriber growth, reduce churn and enable their customers to personalize a subscription experience, like skipping shipments, swapping out products and changing the order frequency. Brands can also feature products for upsell purposes throughout the subscriber lifecycle, from checkout to post-purchase.

Upscribe also offers APIs for merchants to integrate tools like Klaviyo, Segment and Shopify — a new subscription offering for checkouts.

Uncork Capital led the seed round and was joined by Leaders Fund, The House Fund, Roach Capitals’ Fahd Ananta and Shippo CEO Laura Behrens Wu.

“As the market for D2C subscriptions booms, there is a need for subscription-first brands to grow and scale their businesses,” said Jeff Clavier, founder and managing partner of Uncork Capital, in a written statement. “We have spent a long time in the e-commerce space, working with D2C brands and companies who are solving common industry pain points, and Upscribe’s merchant-centric approach raised the bar for subscription services, addressing the friction in customer experiences and enabling merchants to engage subscribers and scale recurring revenue growth.”

Siva bootstrapped the company, but decided to go after venture capital dollars when Upscribe wanted to create a more merchant-centric approach, which required scaling with a bigger team. The “real gems are in the data layer and how to make the experience exceptional,” he added.

The company is growing 43% quarter over quarter and is close to profitable, with much of its business stemming from referrals, Siva said. It is already working with customers like Athletic Greens, Four Sigmatic and True Botanicals and across multiple verticals, including food and beverage, health and wellness, beauty and cosmetics and home care.

The new funding will be used to “capture the next wave of brands that are going to grow,” he added. Siva cites the growth will come as the DTC subscription market is forecasted to reach $478 billion by 2025, and 75% of those brands are expected to offer subscriptions in the next two years. As such, the majority of the funding will be used to bring on more employees, especially in the product, customer success and go-to-market functions.

Though there is competition in the space, many of those are focused on processing transactions, while Siva said Upscribe’s approach is customer relationships. The cost of acquiring new customers is going up, and subscription services will be the key to converting one-time buyers into loyal customers.

“It is really about customer relationships and the ongoing engagement between merchants and subscribers,” he added. “We are in a different world now. The first wave could play the Facebook game, advertising on social media with super low acquisition and scale. That is no longer the case anymore.”

 

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Niantic acquires 3D scanning app Scaniverse

Niantic continues to push forward in its quest to build a 3D map of the world.

This morning the company announced that it has acquired Scaniverse, an iPhone/iPad app for scanning objects and environments in high-resolution 3D.

A rep for Niantic tells me that Scaniverse will remain on the App Store, with plans to continue supporting it as a standalone app. Features previously limited to a $17-per-year “Pro” subscription, including higher-resolution processing and support for exporting models to other 3D software, will now be free.

As I first wrote about years ago, one of Niantic’s goals is to build a detailed and endlessly-evolving 3D map of the world — a step they see as fundamental to enabling true, rich augmented reality experiences if/when the world ever embraces something like AR glasses. It’s a rather massive (and never-ending) task, but one made a bit more feasible by way of its ever-roaming player base across games like Pokémon GO, Harry Potter Wizards Unite and Ingress.

As part of the deal, Scaniverse creator Keith Ito will be joining Niantic’s AR team. The company declined to outline any other terms of the acquisition. This is Niantic’s latest acquisition in the 3D mapping space, having acquired 6D.ai for an undisclosed sum in early 2020.

For context, here’s a demo of the Scaniverse app doing its thing:

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5 ways AI can help mitigate the global shipping crisis

With the fourth quarter now upon us, every industry faces a challenge in managing a holiday production calendar that will deliver the goods. The key for startups looking to defend the quarter from disruptions is to adopt a proactive, data-driven approach to inventory management.

Here are five methods we’ve been counseling clients to adopt:

  • Use data and analytics to identify and map out the inventory being affected by the global shipping crisis. If you don’t have the data about what is on a ship transporting your materials, then use this crisis as an opportunity to justify prioritizing supply chain digital transformation with data, IoT and advanced analytics (e.g., machine learning and simulation). You need to know the location of your goods all times if you are going to successfully gauge what impact a shortage will have on your operation.

    Ultimately, AI will help startups understand how myriad disruptions affect their supply chain so they can better respond with a Plan B when the unthinkable happens.

  • If you don’t have the data readily available, then you need to partner with a vendor and use a secure environment to share second-party data to deliver AI-driven actionable insights on the business impact on all parties involved, from startup to retailer to the consumer.
  • Simulate and forecast the impact of these supply-side issues on the demand side. Conduct scenario planning exercises and inform critical business decisions. If this ability is not in place, an emergency like a pandemic, civil unrest or an uncontrollable rate hike will wreak havoc on your business plan. Use this situation as an opportunity to put a disaster management program in place to prepare for the potential risks.

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