

From the venue and the flashy event website, Waterloo, Ontario’s True North conference (in its second year) doesn’t seem all that distinct from a laundry list of other major tech events that take place each year across North America. But from the moment its main stage programming kicked off on the first day, it was clear this wasn’t your typical gathering place for the tech industry faithful.
The main stage track kicked off with Communitech CEO Iain Klugman. The event is produced by Communitech, an entrepreneurial support and resource organization founded in 1997 to foster the Waterloo region’s technology industry. Communitech sprung out of BlackBerry and the University of Waterloo and the world-class innovation community that surrounds both.
Klugman, a former communications executive and current board member at a number of Communitech-fostered startups and academic institutions, sounded a cautionary and urgent note that continued throughout the day.
Tech conferences, in general, tend to dwell on optimism and enthusiasm, with brief forays into dark alleys of negative consequences. Not this one.
Communitech CEO Iain Klugman speaking at True North 2019 in Waterloo.
Klugman’s talk touched on opportunity, but it was the opportunity to discuss among a group of peers with influence in the technology industry how they should undertake together “to set things right.” Last year’s event had a similar outcome, resulting in the “Tech for Good Declaration,” which True North describes as “the Canadian tech industry’s living document,” and includes a number of principles designed to help guide technology development with community good in mind.
Rather than changing focus for year two, True North’s organizers seem to have doubled down: Klugman’s opening talk included references to surveillance capitalism and breaches of trust, and included this cheerful analogy: “Technology is like fuel. It can warm our homes or it can burn them to the ground, so we decide which one it will do.”
As a whole, the event is about the “tough choices” faced by the collective “we” of the tech industry, according to Klugman.
True North’s official keynote perfectly took the baton from the intro, as New York Times columnist and longtime political commentator Thomas Friedman took the stage. Friedman, a somewhat controversial figure owing to some of his past political stances, launched into a talk informed by his most recent book, “Thank You for Being Late,” and talked about what we’re seeing now in human history as a moment of intersection of three different forces accelerating in a “nonlinear manner” all at once, including technological development outpacing humanity’s ability to adapt to those changes.
NYT columnist and author Thomas Friedman at True North 2019 in Waterloo.
Friedman’s talk ended with him positing that humans spend most of their time today in the essentially “god-less” realm of “cyberspace,” a realm “where we’re all connected but no one’s in charge,” while at the same time we’ve achieved better than ever ability to act with god-like power to control and manipulate our environment. He chided the essential disconnect of powerful forces that act with supreme mastery over technology but with no grounding in sociopolitical understanding (specifically naming Mark Zuckerberg) and those who have the inverse problem (the U.S. Congress, in Friedman’s view).
Overall, Friedman’s views are grounded in what he describes as a place of optimism. But the takeaway is more that humanity is currently at a state where it’s overwhelmed on a number of fronts and out of its depth in terms of having a capacity to cope.
In the afternoon, Robert Mazur (longtime undercover agent and the subject of biopic “The Infiltrator”) discussed his experience tracking down and prosecuting money launderers operating more or less with the blessing of large financial institutions, precisely because their systems were designed around incentive systems that encouraged them but didn’t have protections in place to prevent bad actors from taking advantage. Mazur further elaborated that current telecom industry structure actually makes it even easier than ever to launder large sums relatively unchecked. In essence, it was a warning to be mindful of how the products you build can be exploited by the most malicious actors.
Former Information and Privacy Commissioner for Ontario and creator of the concept of “Privacy by Design” Ann Cavoukian came next, decrying the current state of data “centralized in huge honeypots of information,” including Google (her example).
Former Ontario Information and Privacy Commissioner Ann Cavoukian.
This centralization, she noted is a huge risk in terms of presenting opportunities for tracking, misuse, leaks and more. It’s “taking away our agency as individuals,” she said, and the solution is moving to true decentralization of data.
“Privacy […] is freedom, and is about you making decisions relating to your personal information; not the state, not corporations — you,” she said. “It’s not about secrecy, it’s about control [and] privacy is a necessary condition for societal well-being.”
Cavoukian wrapped her talk by noting the sheer volume of privacy breaches that have leaked consumer information to date, and about the importance of encryption in keeping this safe. Overall, her talk was a blueprint for tech companies looking to incorporate data privacy and good stewardship into the DNA of their products from day one.
Kelsey Leonard, Tribal Co-Lead on the Mid-Atlantic Regional Planning Body of the U.S. National Ocean Council, provided a talk on the implications of digital rights and the continued digital divide as it pertains to Indigenous communities globally. Leonard pointed out that Indigenous nations in North America are the least connected in the world, something she noted continues the ongoing colonialism, and even can potentially contribute to “ongoing genocide of Indigenous peoples.”
Kelsey Leonard, advocate for Indigenous Data Governance and Sovereignty, speaks at True North 2019 in Waterloo.
Indigenous people are also systematically disenfranchised from data ownership and data control, by virtue of their being left out of advanced STEM education and formalized degrees, she said. Leonard also noted that platforms contain reinforcement of what she calls “digital colonialism,” in that Indigenous names are often flagged as fake by algorithms designed to enforce real-name policies, and Indigenous languages are often mistranslated (specifically as Estonian, she said).
This worsens existing Indigenous language and culture erasure. Leonard said a language is lost every two weeks on average, according to recent research. What’s required then is to add protection measures specific to digital platforms to help counter this institutional digital colonization and enforce Indigenous Sovereign Data.
To close day one, Recode founder and legendary Silicon Valley reporter Kara Swisher summarized a lot of her recent work as a New York Times columnist. Basically, that means she called on the industry to stop messing around and start fixing stuff.
Kara Swisher speaks at the True North 2019 conference in Waterloo, Ontario.
Swisher said we’re coming to a “reckoning” for tech in terms of media coverage, and the overwhelmingly positive coverage it’s received over the past many years. She emphasized that we’re only at the beginning of the impact technology will have on society, and laid out a number of current areas of innovation and investment that will continue to upset societal norms, including autonomous driving, artificial intelligence and more.
Regarding media specifically, Swisher noted that she marked a significant shift when BuzzFeed started A/B testing to amplify and extend the attention-capture possible around specific “news” items, citing the famous Katy Perry Left Shark incident of 2015. This, combined with our “continuous partial attention,” which is tied to our inability to totally disengage from our smartphones, is combining to have effects on how we think and work in the world, Swisher said.
She added that, today, many of her new big concerns are around AI, and that “everything that can be digitized will be digitized.” Not only that, she continued, but “almost everything can be,” which will be massively disruptive to peoples’ lives, with effects including a future where most people will have a very high number of different jobs over the course of their lives, requiring continuous education and retraining. “We have to think really hard about what good AI is and what problematic AI is,” she said.
Thompson Reuters Foundation CEO Antonio Zappulla at True North 2019 in Waterloo discussed using technology to help fight human trafficking.
Across other stages, too, the themes of technology’s dangers and how to avert it prevailed across programming. Take Some Risk founder Duane Brown gave a talk on opting out of the always-connected lifestyle and becoming “digitally exhausted.” MedStack founder and CEO Balaji Gopalan talked about the risks inherent in dealing with private patient data in healthcare. Other topics included sustainable energy for Africa, using big data to counter human trafficking and ensuring we steer away from encouraging consumerization in this generation of connected kids.
The event’s central theme was the deceptively simple (and frankly over-uttered) phrase “tech for good,” but the programming and content revealed a level of sophistication and sincerity on the topic that exceeds the low bar often found in tech industry marketing materials and staged events. Overall, it felt introspective, contrite and contemplative — a self-reflection from a community genuine about shoring up its ethical shortcomings. In other words, refreshing.
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As we asked back in February, “We’re ready for foldable phones, but are they ready for us?” The answer, so far, has been an enthusiastic, “not really.” The Galaxy Fold was pushed back after multiple review units crapped the proverbial bed. And just last week, Huawei noted that it was holding off on its own Mate X release, citing Samsung’s issues as a cautionary tale.
Samsung, at least, may finally be ready to unleash its foldable on the world, two months after its planned release. “Most of the display problems have been ironed out,” Samsung Display Vice President Kim Seong-cheol told a crowd at an event in Seoul this week, “and the Galaxy Fold is ready to hit the market.”
The company’s no doubt waiting for a more formal announcement to release specifics on timing. Samsung has been promising release news “in coming weeks” for several weeks now. Understandably, the company hasn’t been rushing to get the handset back out. As bad as the press was the first time around, Samsung doesn’t want a repeat here along the lines of the Note 7’s two recalls.
When announcing the initial delay, Samsung announced two points of failure: a screen protector that looked like the temporary ones other devices ship with and large holes between joints in the hinge that allowed detritus to sneak behind the display, causing issues when users applied pressure to the front.
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Four-day work week. Open-plan offices. Work-life balance. Remote work. There are endless ways to set up your team and company for success. And there’s evidence for and against all of these scenarios.
Take remote work for instance. Owl Labs reports that 44% of global companies don’t allow it. While Gallup reports that 43% of all Americans work remotely at least some of the time.
So what’s the right answer? Well that depends on what your goals are. But no matter what, the important thing is to make a decision and stick with it.
Because no matter what decision you’re making – personal, professional, big or small – it’s important to commit 100%. And when that decision is likely to impact your company’s culture for years to come, you better hope to get it right.
So when Buffer’s co-founder and CEO, Joel Gascoigne, decided to close down one of their offices, I gave him one key piece of advice. Commit to either placing the entire team in the remaining office or establish a 100% remote workforce. Both scenarios can work, but a mix of the two will only set you up to fail.
When everyone is remote, that becomes one of the defining characteristics of a company’s culture. People have no option but to get their work done and collaborate virtually. And an entirely remote culture can both draw in candidates attracted to this way of working and remove those who know they won’t be able to thrive working remotely.
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Early-stage startup founders, we’re looking at you. Are you ready to launch your company and show the world what you’ve got? There’s no better launching pad than Startup Battlefield, and the next battle goes down at Disrupt San Francisco 2019 — in the city that gave birth to startup dreams.
There’s no time to waste. The application deadline expires on June 25th at 11:59 p.m. (PT). Apply to compete in the Startup Battlefield today.
Because Disrupt San Francisco 2019 is our flagship event, it’s appropriate that Startup Battlefield comes with a flagship prize. We’re talking a $100,000 equity-free cash infusion to the winner’s bottom line. But there’s more on the line than a wad of cash. Here’s how Startup Battlefield works and the benefits all participants receive.
First off, applying to and participating in Startup Battlefield is free. However, the selection process is extremely competitive. Discerning TechCrunch editors vet every application and choose approximately 15-20 startups to compete. All participating teams receive free, extensive pitch coaching from our Battlefield-tested editorial team.
When you step onto the Disrupt Main Stage, you’ll have six minutes to pitch and present a live demo to a panel of expert VCs and tech leaders — and then respond to their questions.
Teams that make it through to the final round repeat the process to a second set of judges, and it’s from that elite cohort that one standout startup will earn the title, hoist the Disrupt Cup and claim the $100,000 prize.
It all goes down live in front of an audience of thousands, and we live-stream the entire event to the world on TechCrunch.com, YouTube, Facebook and Twitter — and make it available later on-demand.
Whether you win the whole shebang or not, you still win. All competing teams receive intense media and investor attention and exhibit for free in Startup Alley for all three days of the show. You also receive invitations to VIP events, free passes to future TechCrunch events and complimentary subscriptions to our new editorial offering, Extra Crunch.
It’s time. You’re ready to launch. Apply to the Startup Battlefield, and join us at Disrupt San Francisco 2019 on October 2-4. And remember, the application deadline expires on June 25th at 11:59 p.m. (PT).
Not quite ready to battle it out on the Main Stage? Why not apply for our TC Top Picks program? It’s a select group, and if we pick your startup, you’ll receive a free Startup Alley Exhibitor Package, VIP treatment and plenty of media and investor exposure.
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Pretty much everything about making a self-driving car is difficult, but among the most difficult parts is making sure the vehicles know what pedestrians are doing — and what they’re about to do. Humanising Autonomy specializes in this, and hopes to become a ubiquitous part of people-focused computer vision systems worldwide.
The company has raised a $5.3 million seed round from an international group of investors on the strength of its AI system, which it claims outperforms humans and works on images from practically any camera you might find in a car these days.
HA’s tech is a set of machine learning modules trained to identify different pedestrian behaviors — is this person about to step into the street? Are they paying attention? Have they made eye contact with the driver? Are they on the phone? Things like that.
The company credits the robustness of its models to two main things. First, the variety of its data sources.
“Since day one we collected data from any type of source — CCTV cameras, dash cams of all resolutions, but also autonomous vehicle sensors,” said co-founder and CEO Maya Pindeus. “We’ve also built data partnerships and collaborated with different institutions, so we’ve been able to build a robust data set across different cities with different camera types, different resolutions and so on. That’s really benefited the system, so it works in nighttime, rainy Michigan situations, etc.”
Notably their models rely only on RGB data, forgoing any depth information that might come from lidar, another common sensor type. But Pindeus said that type of data isn’t by any means incompatible, it just isn’t as plentiful or relevant as real-world, visual-light footage.
In particular, HA was careful to acquire and analyze footage of accidents, because these are especially informative cases of failure of AVs or human drivers to read pedestrian intentions, or vice versa.
The second advantage Pindeus claimed is the modular nature of the models the company has created. There isn’t one single “what is that pedestrian doing” model, but a set of them that can be individually selected and tuned according to the autonomous agent’s or hardware’s needs.
“For instance, if you want to know if someone is distracted as they’re crossing the street. There’s a lot of things that we do as humans to tell if someone is distracted,” she said. “We have all these different modules that kind of come together to predict whether someone’s distracted, at risk, etc. This allows us to tune it to different environments, for instance London and Tokyo — people behave differently in different environments.”
“The other thing is processing requirements; Autonomous vehicles have a very strong GPU requirement,” she continued. “But because we build in these modules, we can adapt it to different processing requirements. Our software will run on a standard GPU when we integrate with level 4 or 5 vehicles, but then we work with aftermarket, retrofitting applications that don’t have as much power available, but the models still work with that. So we can also work across levels of automation.”
The idea is that it makes little sense to aim only for the top levels of autonomy when really there are almost no such cars on the road, and mass deployment may not happen for years. In the meantime, however, there are plenty of opportunities in the sensing stack for a system that can simply tell the driver that there’s a danger behind the car, or activate automatic emergency braking a second earlier than existing systems.
While there are lots of papers published about detecting pedestrian behavior or predicting what a person in an image is going to do, there are few companies working specifically on that task. A full-stack sensing company focusing on lidar and RGB cameras needs to complete dozens or hundreds of tasks, depending on how you define them: object characterizations and tracking, watching for signs, monitoring nearby and distant cars and so on. It may be simpler for them and for manufacturers to license HA’s functioning and highly specific solution rather than build their own or rely on more generalized object tracking.
“There are also opportunities adjacent to autonomous vehicles,” pointed out Pindeus. Warehouses and manufacturing facilities use robots and other autonomous machines that would work better if they knew what workers around them were doing. Here the modular nature of the HA system works in its favor again — retraining only the parts that need to be retrained is a smaller task than building a new system from scratch.
Currently the company is working with mobility providers in Europe, the U.S. and Japan, including Daimler Mercedes Benz and Airbus. It’s got a few case studies in the works to show how its system can help in a variety of situations, from warning vehicles and pedestrians about each other at popular pedestrian crossings to improving path planning by autonomous vehicles on the road. The system can also look over reams of past footage and produce risk assessments of an area or time of day given the number and behaviors of pedestrians there.
The $5 million seed round, led by Anthemis, with Japan’s Global Brain, Germany’s Amplifier and SV’s Synapse Partners, will mostly be dedicated to commercializing the product, Pindeus said.
“The tech is ready, now it’s about getting it into as many stacks as possible, and strengthening those tier 1 relationships,” she said.
Obviously it’s a rich field to enter, but still quite a new one. The tech may be ready to deploy, but the industry won’t stand still, so you can be sure that Humanising Autonomy will move with it.
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Seventy-two hours to save. That’s how much time remains on super-early-bird pricing for passes to Disrupt San Francisco 2019, which takes place October 2-4. If you plan to attend TechCrunch’s flagship event dedicated to bold, early-stage startuppers — and why wouldn’t you — you have until June 21 at 11:59 p.m. (PT) to score the best price. Depending on the type of pass you buy, you can save serious cheddar — up to $1,800. Choose the budget-friendly payment plan option during checkout and you can pay for your pass over time. It’s all geared to be as easy on the purse strings as possible, so buy your pass now and save.
Moscone North Convention Center will be home to more than 10,000 attendees from around the world — including startups, exhibitors and media outlets — for three jam-packed days of programming across 14 categories. It’s where you’ll find both the present and future of technology under one roof.
Every Disrupt event features an amazing lineup of speakers. We’re talking interviews and panel discussions with some of the world’s most influential names in tech and investing — and that tradition continues at Disrupt SF 2019. Here’s just one example of the presentations you’ll experience.
Cybersecurity ranks as a major concern that affects everyone — consumers, businesses and governments. We’re thrilled that Jeanette Manfra, homeland security assistant director and a senior executive at the department’s Cybersecurity and Infrastructure Security Agency (CISA), will grace the stage. One of the government’s most experienced cybersecurity civil servants, Manfra currently leads the effort to protect and strengthen our nation’s vital infrastructure, including the power grid and water supplies. We can’t wait to hear what she has to say about the government’s cybersecurity efforts.
Experience Startup Alley’s ocean of opportunity. You’ll find hundreds of outstanding early-stage startups pushing tech boundaries and creating the future today. You’ll also find the TC Top Picks — a hand-picked cadre of companies representing these categories: AI/Machine Learning, Biotech/Healthtech, Blockchain, Fintech, Mobility, Privacy/Security, Retail/E-commerce, Robotics/IoT/Hardware, SaaS and Social Impact & Education. If that describes your early-stage startup, apply to be a TC Top Pick. If you make the cut, you get to exhibit in Startup Alley for free. You also get three complimentary passes and VIP treatment with plenty of VC and media exposure — including a live interview with a TechCrunch editor on the Showcase Stage.
Disrupt SF 2019 takes place October 2-4, and your chance to snag the best price on passes disappears in just three short days. Be bold. Buy your pass now — before the June 21 11:59 p.m. (PT) deadline — and save big.
Is your company interested in sponsoring or exhibiting at Disrupt SF 2019? Contact our sponsorship sales team by filling out this form.
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Text IQ, a machine learning system that parses and understands sensitive corporate data, has raised $12.6 million in Series A funding led by FirstMark Capital, with participation from Sierra Ventures.
Text IQ started as co-founder Apoorv Agarwal’s Columbia thesis project titled “Social Network Extraction From Text.” The algorithm he built was able to read a novel, like Jane Austen’s “Emma,” for example, and understand the social hierarchy and interactions between characters.
This people-centric approach to parsing unstructured data eventually became the kernel of Text IQ, which helps corporations find what they’re looking for in a sea of unstructured, and highly sensitive, data.
The platform started as a tool used by corporate legal teams. Lawyers often have to manually look through troves of documents and conversations (text messages, emails, Slack, etc.) to find specific evidence or information. Even using search, these teams spend loads of time and resources looking through the search results, which usually aren’t as accurate as they should be.
“The status quo for this is to use search terms and hire hundreds of humans, if not thousands, to look for things that match their search terms,” said Agarwal. “It’s super expensive, and it can take months to go through millions of documents. And it’s still risky, because they could be missing sensitive information. Compared to the status quo, Text IQ is not only cheaper and faster but, most interestingly, it’s much more accurate.”
Following success with legal teams, Text IQ expanded into HR/compliance, giving companies the ability to retrieve sensitive information about internal compliance issues without a manual search. Because Text IQ understands who a person is relative to the rest of the organization, and learns that organization’s “language,” it can more thoroughly extract what’s relevant to the inquiry from all that unstructured data in Slack, email, etc.
More recently, in the wake of GDPR, Text IQ has expanded its product suite to work in the privacy realm. When a company is asked by a customer to get access to all their data, or to be forgotten, the process can take an enormous amount of resources. Even then, bits of data might fall through the cracks.
For example, if a customer emailed Customer Service years ago, that might not come up in the company’s manual search efforts to find all of that customer’s data. But because Text IQ understands this unstructured data with a person-centric approach, that email wouldn’t slip by its system, according to Agarwal.
Given the sensitivity of the data, Text IQ functions behind a corporation’s firewall, meaning that Text IQ simply provides the software to parse the data rather than taking on any liability for the data itself. In other words, the technology comes to the data, and not the other way around.
Text IQ operates on a tiered subscription model, and offers the product for a fraction of the value they provide in savings when clients switch over from a manual search. The company declined to share any further details on pricing.
Former Apple and Oracle General Counsel Dan Cooperman, former Verizon General Counsel Randal Milch, former Baxter International Global General Counsel Marla Persky and former Nationwide Insurance Chief Legal and Governance Officer Patricia Hatler are on the advisory board for Text IQ.
The company has plans to go on a hiring spree following the new funding, looking to fill positions in R&D, engineering, product development, finance and sales. Co-founder and COO Omar Haroun added that the company achieved profitability in its first quarter entering the market and has been profitable for eight consecutive quarters.
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China is losing its global lead in games. By the end of 2019, the U.S. will replace China as the world’s largest gaming market, with an estimated revenue of $36.9 billion, says a new report from research firm Newzoo.
This will mark the first time since 2015 that the U.S. will top the global gaming market, thanks to healthy domestic growth in consoles. Globally, Xbox, PlayStation, Nintendo and other console games are on track to rise 13.4% in revenue this year. Driving the growth is the continued shift toward the games-as-a-service model, Newzoo points out, on top of a solid installed base across the current console generation and spending from new model releases.
China, on the other hand, suffered from a nine-month freeze on game licenses last year that significantly shrank the stream of new titles. Though applications have resumed, industry experts warn of a slower and stricter approval process that will continue to put the squeeze on new titles. Time limits imposed on underage players will also hurt earnings in the sector.
As a result of China’s slowdown, Asia-Pacific is no longer the fastest-growing region. Taking the crown is Latin America, which is enjoying a 10.4% compound annual growth.
Despite China’s licensing blackout, Tencent remained as the largest publicly listed gaming firm in 2018, pocketing $19.73 billion in revenue. Growth slowed to 9% compared to 51% from 2016 to 2017 at Tencent’s gaming division, but the Shenzhen-based company is back on track with new blockbuster Game for Peace (和平精英), a regulator-friendly version of PlayerUnknown’s Battleground, ready to monetize.
Trailing behind Tencent in the global ranking is Sony, Microsoft, Apple and Activision Blizzard.
Other key trends of the year:
Rise of instant games: Mini games played inside WeChat without installing another app are becoming mainstream in China. These games, which tend to have strong social elements and are easy to play, have attracted followers including Douyin (TikTok’s Chinese version) to create with their own offerings.
Facebook’s Instant Games have also come a long way since opening to outside developers in 2018. The platform now sees more than 30 billion game sessions played across over 7,000 titles. WeChat doesn’t use the same metrics, but for some context, the Chinese company boasted 400 million monthly players on mini games as of January.
Mobile momentum carries on: Mobile games will continue to outpace growth on PC and console in the coming years. As expected, emerging markets that are mobile-first and mobile-only will drive most of the boom in mobile gaming, which is on course to account for almost half (49%) of the entire sector by 2022. Part of the growth is driven by improved hardware and internet infrastructure, as well as a growing number of cross-platform titles.
Games in the cloud are here: It was a distant dream just a few years ago — being able to play some of the most demanding titles regardless of the hardware one owns. But the technology is closer than ever to coming true with faster internet speed and the imminent rollout of 5G networks. A few giants have already showcased their cloud gaming services over the last few months, with the likes of Google’s Stadia, Microsoft’s xCloud and Tencent’s Start slated to test the market.
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Postman, a five-year-old startup that is attempting to simplify development, tests and management of APIs through its platform, has raised $50 million in a new round to scale its business.
The Series B for the startup, which began its journey in India, was led by CRV and included participation from existing investor Nexus Venture Partners . The startup, with offices in India and San Francisco, closed its Series A financing round four years ago and has raised $58 million to date.
Postman offers a development environment which a developer or a firm could use to build, publish, document, design, monitor, test and debug their APIs. Postman, like some other startups such as RapidAPI, also maintains a marketplace to offer APIs for quick integration with other popular services.
The startup was co-founded by Abhinav Asthana, a former intern at Yahoo . Asthana was frustrated with how APIs were an afterthought for many developers, as they usually got around to building them in the eleventh hour. Additionally, developers were relying on their own workflows and there was no organized platform that could be used by many, he explained in an interview with TechCrunch.
Even big software firms have not looked into this space yet, and many have instead become a customer of Postman. “We are solving a fundamental problem for the technology landscape. Big companies tend to be slower as they have many other things on their plate,” said Asthana.
Five years later, Postman has grown significantly. More than 7 million users and 300,000 companies, including Microsoft, Twitter, Best Buy, AMC Theaters, PayPal, Shopify, BigCommerce and DocuSign today use Postman’s platform.
The modern software development relies heavily on APIs as more businesses begin to talk with one another. According to research firm Gartner, more than 65% of global infrastructure service providers’ revenue will be generated through services enabled by APIs by 2023, up from 15% in 2018.
Asthana said Postman intends to use the fresh capital to scale its startup, products and grow its team. “We are scaling rapidly across all dimensions. There are many use cases that we still want to address over the coming months. We will also experiment with sales and invest in improving user experience,” he added.
Postman offers some of its services in limited capacity for free to users. For the rest, it charges between $8 to $18 per user to its customers. That’s how the company generates revenue. Asthana declined to share the financial performance of the startup, but said its customer base was “growing phenomenally.”
Postman said CRV general partner Devdutt Yellurkar has joined its board of directors.
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Robotic process automation — which lets organizations shift repetitive back-office tasks to machines to complete — has been a hot area of growth in the world of enterprise IT, and now one of the companies that’s making waves in the area has acquired a smaller startup to continue extending its capabilities.
Blue Prism, which helped coin the term RPA when it was founded back in 2001, has announced that it is buying Thoughtonomy, which has built a cloud-based AI engine that delivers RPA-based solutions on a SaaS framework. Blue Prism is publicly traded on the London Stock Exchange — where its market cap is around £1.3 billion ($1.6 billion), and in a statement to the market alongside its half-year earnings, it said it would be paying up to £80 million ($100 million) for the firm.
The deal is coming in a combination of cash and stock: £12.5 million payable on completion of the deal, £23 million in shares payable on completion of the deal, up to £20 million payable a year after the deal closes, up to £4.5 million in cash after 18 months, and a final £20 million on the second anniversary of the deal closing, in shares. Thoughtonomy had never raised outside funding, although that was not for lack of interest.
“We’ve had approaches on a daily basis since the intelligent automation market has exploded,” said Terry Walby, CEO and founder of Thoughtonomy, in an interview, “but getting the best outcome for the company and our customers is not just about taking money and headlines [touting] our valuation.”
The acquisition comes about six months after Blue Prism announced it would be raising around $130 million (£100 million) to continue growing at a time when RPA is getting a lot of attention in the market. Linda Dotts, the company’s SVP of global partner strategy and programs, today confirmed that it did raise that money, and that part of the proceeds of that are being used to make the Thoughtonomy acquisition. She also confirmed that it would be looking at other opportunities, a sign that we are likely going to see at least a little more consolidation in this space.
On the same day that it had announced that fundraise, Blue Prism also unveiled a new AI initiative, working with partners to execute on that. And indeed that is what it is getting with Thoughtonomy. The companies were already working together before this — Thoughtonomy’s other key partners are companies like Microsoft’s Azure and Google Cloud, used to deliver its services — and according to Walby, the idea is that his startup will be helping Blue Prism get its services to the next level of where RPA is going.
“We provide architectural support and add intelligence,” he said in an interview. “Our platform addresses activities that require understanding or interpretation, and so it expands the use cases for RPA beyond structured processes.”
That’s notable, given the position of Blue Prism within the RPA landscape. The company is one of the more legacy providers — one of the consequences of being an early mover — and while that gives it a clear advantage of showing it has staying power, in the world of software that can be a more challenging sell when younger companies are building tech from scratch on newer frameworks. (UiPath, which has made major inroads into RPA both in terms of its customer and partner growth, as well as in terms of its funding, is one example.)
And in a market that is still seeing growth (read: companies often operate at a loss to invest in that growth), its ups and downs are there for everyone to see and scrutinise. In its half-year earnings that it posted today, its negative EBITDA margin widened once more — sales, marketing and other business development efforts come at a cost, for one — although group revenues also nearly doubled to £41.6 million from £22.9 million in the same period a year earlier. Total customer numbers are up 91% over the same period a year ago, and with sales returns typically taking about 12 months to come through on the balance sheet, the longer-term picture is worth watching, too.
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