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E-commerce is booming, but among the biggest challenges for entrepreneurs of online businesses are finding a place to store the items they are selling and dealing with the logistics of operating.
Tyler Scriven, Maxwell Bonnie and Paul D’Arrigo co-founded Saltbox in an effort to solve that problem.
The trio came up with a unique “co-warehousing” model that provides space for small businesses and e-commerce merchants to operate as well as store and ship goods, all under one roof. Beyond the physical offering, Saltbox offers integrated logistics services as well as amenities such as the rental of equipment and packing stations and access to items such as forklifts. There are no leases and tenants have the flexibility to scale up or down based on their needs.
“We’re in that sweet spot between co-working and raw warehouse space,” said CEO Scriven, a former Palantir executive and Techstars managing director.
Saltbox opened its first facility — a 27,000-square-foot location — in its home base of Atlanta in late 2019, filling it within two months. It recently opened its second facility, a 66,000-square-foot location, in the Dallas-Fort Worth area that is currently about 40% occupied. The company plans to end 2021 with eight locations, in particular eyeing the Denver, Seattle and Los Angeles markets. Saltbox has locations slated to come online as large as 110,000 square feet, according to Scriven.
The startup was founded on the premise that the need for “co-warehousing and SMB-centric logistics enablement solutions” has become a major problem for many new businesses that rely on online retail platforms to sell their goods, noted Scriven. Many of those companies are limited to self-storage and mini-warehouse facilities for storing their inventory, which can be expensive and inconvenient.
Scriven personally met with challenges when starting his own e-commerce business, True Glory Brands, a retailer of multicultural hair and beauty products.
“We became aware of the lack of physical workspace for SMBs engaged in commerce,” Scriven told TechCrunch. “If you are in the market looking for 10,000 square feet of industrial warehouse space, you are effectively pushed to the fringes of the real estate ecosystem and then the entrepreneurial ecosystem at large. This is costing companies in significant but untold ways.”
Now, Saltbox has completed a $10.6 million Series A round of financing led by Palo Alto-based Playground Global that included participation from XYZ Venture Capital and proptech-focused Wilshire Lane Partners in addition to existing backers Village Global and MetaProp. The company plans to use its new capital primarily to expand into new markets.
The company’s customers are typically SMB e-commerce merchants “generating anywhere from $50,000 to $10 million a year in revenue,” according to Scriven.
He emphasizes that the company’s value prop is “quite different” from a traditional flex office/co-working space.
“Our members are reliant upon us to support critical workflows,” Scriven said.
Besides e-commerce occupants, many service-based businesses are users of Saltbox’s offering, he said, such as those providing janitorial services or that need space for physical equipment. The company offers all-inclusive pricing models that include access to loading docks and a photography studio, for example, in addition to utilities and Wi-Fi.
Image Credits: Saltbox
Image Credits: Saltbox
The company secures its properties with a mix of buying and leasing by partnering with institutional real estate investors.
“These partners are acquiring assets and in most cases, are funding the entirety of capital improvements by entering into management or revenue share agreements to operate those properties,” Scriven said. He said the model is intentionally different from that of “notable flex space operators.”
“We have obviously followed those stories very closely and done our best to learn from their experiences,” he added.
Investor Adam Demuyakor, co-founder and managing partner of Wilshire Lane Partners, said his firm was impressed with the company’s ability to “structure excellent real estate deals” to help them continue to expand nationally.
He also believes Saltbox is “extremely well-positioned to help power and enable the next generation of great direct to consumer brands.”
Playground Global General Partner Laurie Yoler said the startup provides a “purpose-built alternative” for small businesses that have been fulfilling orders out of garages and self-storage units.
Saltbox recently hired Zubin Canteenwalla to serve as its chief operating officer. He joined Saltbox from Industrious, an operator co-working spaces, where he was SVP of Real Estate. Prior to Industrious, he was EVP of Operations at Common, a flexible residential living brand, where he led the property management and community engagement teams.
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As companies create machine learning models, the operations team needs to ensure the data used for the model is of sufficient quality, a process that can be time-consuming. Bigeye (formerly Toro), an early-stage startup is helping by automating data quality.
Today the company announced a $17 million Series A led Sequoia Capital with participation from existing investor Costanoa Ventures. That brings the total raised to $21 million with the $4 million seed, the startup raised last May.
When we spoke to Bigeye CEO and co-founder Kyle Kirwan last May, he said the seed round was going to be focused on hiring a team — they are 11 now — and building more automation into the product, and he says they have achieved that goal.
“The product can now automatically tell users what data quality metrics they should collect from their data, so they can point us at a table in Snowflake or Amazon Redshift or whatever and we can analyze that table and recommend the metrics that they should collect from it to monitor the data quality — and we also automated the alerting,” Kirwan explained.
He says that the company is focusing on data operations issues when it comes to inputs to the model, such as the table isn’t updating when it’s supposed to, it’s missing rows or there are duplicate entries. They can automate alerts to those kinds of issues and speed up the process of getting model data ready for training and production.
Bogomil Balkansky, the partner at Sequoia who is leading today’s investment, sees the company attacking an important part of the machine learning pipeline. “Having spearheaded the data quality team at Uber, Kyle and Egor have a clear vision to provide always-on insight into the quality of data to all businesses,” Balkansky said in a statement.
As the founding team begins building the company, Kirwan says that building a diverse team is a key goal for them and something they are keenly aware of.
“It’s easy to hire a lot of other people that fit a certain mold, and we want to be really careful that we’re doing the extra work to [understand that just because] it’s easy to source people within our network, we need to push and make sure that we’re hiring a team that has different backgrounds and different viewpoints and different types of people on it because that’s how we’re going to build the strongest team,” he said.
Bigeye offers on-prem and SaaS solutions, and while it’s working with paying customers like Instacart, Crux Informatics and Lambda School, the product won’t be generally available until later in the year.
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As computing systems become increasingly bigger and more complex, forensics have become an increasingly important part of how organizations can better secure them. As the recent SolarWinds breach has shown, it’s not always just a matter of being able to identify data loss, or prevent hackers from coming in in the first place. In cases where a network has already been breached, running a thorough investigation is often the only way to identify what happened, if a breach is still active and whether a malicious hacker can strike again.
As a sign of this growing priority, a startup called Cado Security, which has built forensics technology native to the cloud to run those investigations, is announcing $10 million in funding to expand its business.
Cado’s tools today are used directly by organizations, but also security companies like Redacted — a somewhat under-the-radar security startup in San Francisco co-founded by Facebook’s former chief security officer Max Kelly and John Hering, the co-founder of Lookout. It uses Cado to carry out the forensics part of its work.
The funding for London-based Cado is being led by Blossom Capital, with existing investors Ten Eleven Ventures also participating, among others. As another signal of demand, this Series A is coming only six months after Cado raised its seed round.
The task of securing data on digital networks has grown increasingly complex over the years: Not only are there more devices, more data and a wider range of configurations and uses around it, but malicious hackers have become increasingly sophisticated in their approaches to needling inside networks and doing their dirty work.
The move to the cloud has also been a major factor. While it has helped a wave of organizations expand and run much bigger computing processes as part of their business operations, it has also increased the so-called attack surface and made investigations much more complicated, not least because a lot of organizations run elastic processes, scaling their capacity up and down: This means when something is scaled down, logs of previous activity essentially disappear.
Cado’s Response product — which works proactively on a network and all of its activity after it’s installed — is built to work across cloud, on-premise and hybrid environments. Currently it’s available for AWS EC2 deployments and Docker, Kubernetes, OpenShift and AWS Fargate container systems, and the plan is to expand to Azure very soon. (Google Cloud Platform is less of a priority at the moment, CEO James Campbell said, since it rarely comes up with current and potential customers.)
Campbell co-founded Cado with Christopher Doman (the CTO) last April, with the concept for the company coming out of their respective experiences working on security services together at PwC, and respectively for government organizations (Campbell in Australia) and AlienVault (the security firm acquired by AT&T). In all of those, one persistent issue the two continued to encounter was the issue with adequate forensics data, essential for tracking the most complex breaches.
A lot of legacy forensics tools, in particular those tackling the trove of data in the cloud, was based on “processing data with open source and pulling together analysis in spreadsheets,” Campbell said. “There is a need to modernize this space for the cloud era.”
In a typical breach, it can take up to a month to run a thorough investigation to figure out what is going on, since, as Doman describes it, forensics looks at “every part of the disk, the files in a binary system. You just can’t find what you need without going to that level, those logs. We would look at the whole thing.”
However, that posed a major problem. “Having a month with a hacker running around before you can do something about it is just not acceptable,” Campbell added. The result, typically, is that other forensics tools investigate only about 5% of an organization’s data.
The solution — for which Cado has filed patents, the pair said — has essentially involved building big data tools that can automate and speed up the very labor intensive process of looking through activity logs to figure out what looks unusual and to find patterns within all the ones and zeros.
“That gives security teams more room to focus on what the hacker is getting up to, the remediation aspect,” Campbell explained.
Arguably, if there were better, faster tracking and investigation technology in place, something like SolarWinds could have been better mitigated.
The plan for the company is to bring in more integrations to cover more kinds of systems, and go beyond deployments that you’d generally classify as “infrastructure as a service.”
“Over the past year, enterprises have compressed their cloud adoption timelines while protecting the applications that enable their remote workforces,” said Imran Ghory, partner at Blossom Capital, in a statement. “Yet as high-profile breaches like SolarWinds illustrate, the complexity of cloud environments makes rapid investigation and response extremely difficult since security analysts typically are not trained as cloud experts. Cado Security solves for this with an elegant solution that automates time-consuming tasks like capturing forensically sound cloud data so security teams can move faster and more efficiently. The opportunity to help Cado Security scale rapidly is a terrific one for Blossom Capital.”
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There’s no doubt this past year has been a major watershed moment for the robotics industry. Warehouse and logistics have been a particular target for an automation push, as companies have worked to keep the lights on amidst stay at home orders and other labor shortages.
MIT spinoff Pickle is one of the latest startups to enter the fray. The company launched with limited funding and a small team, though it’s recently changed one of these, telling TechCrunch this week that it has raised $5.57 million in funding during this hot investment streak. The seed round was led by Hyperplane and featured Third Kind Venture Capital, Box Group and Version One Ventures, among others.
The company’s making some pretty big claims around the efficacy of its first robot named, get this, “Dill” (the company clearly can’t avoid a clever name). It says the robot is capable of 1,600 picks per hour from the back of a trailer, a figure it claims is “double the speed of any competitors.”
CEO Andrew Meyer says collaboration is a key to the company’s play. “We designed people into the system from the get-go and focused on a specific problem: package handling in the loading dock. We got out of the lab and put robots to work in real warehouses. We resisted the fool’s errand of trying to create a system that could work entirely unsupervised or solve every robotics problem out there.”
Orders for the first product targeted at trailer unloading will open in June, with an expected ship date of early 2022.
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Banking tech startup Zeta is inching closer to the much sought-after unicorn status as it engages with investors to finalize a new round, two sources familiar with the matter told TechCrunch.
SoftBank Vision Fund 2 is in advanced stages of talks to lead a ~$250 million Series D round in the five-year-old startup, the sources said. The investment proposal values the Indian startup, co-founded by high-profile entrepreneur Bhavin Turakhia, at over $1 billion, up from $300 million in its maiden external funding (Series C) in 2019.
The round has yet to close, a third person said.
A SoftBank spokesperson declined to comment.
Five-year-old Zeta helps banks launch modern retail and fintech products. The thesis is that banks — largely operating on antiquated technologies — today don’t have the time and expertise to offer the best experience to hundreds of millions of customers and fintech firms they serve.
Zeta is attempting to help banks either use the startup’s cloud-native, API-first banking stack as its core framework or build services atop it to offer better a experience to all customers — think of improved mobile app and debit and credit features. It also offers API, SDKs and payment gateways to banks to work more efficiently with fintech firms.
The startup has amassed clients in several Asian and Latin American markets.
Turakhia, with his brother Divyank, started his first venture in 1998. Along the way, they sold four web companies to Endurance for $160 million. Zeta is the third startup Bhavin has co-founded since then — the other being business messaging platform Flock and Radix.
When the deal is finalized, Zeta would join a growing list of Indian startups that have turned a unicorn in recent months. Last week, social commerce Meesho — also backed by SoftBank Vision Fund 2 — fintech firm CRED, e-pharmacy firm PharmEasy, millennials-focused Groww, business messaging platform Gupshup and social network ShareChat attained the unicorn status.
The story was updated with additional details and to note that the round hasn’t closed.
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A few weeks ago, we wrote about fintech Pilot raising a $100 million Series C that doubled the company’s valuation to $1.2 billion.
Bezos Expeditions — Amazon founder Jeff Bezos’ personal investment fund — and Whale Rock Capital joined the round, adding $40 million to a $60 million raise led by Sequoia about one month prior.
That raise came after a $40 million Series B in April 2019 co-led by Stripe and Index Ventures that valued the company at $355 million.
Both raises were notable and warranted coverage. But sometimes it’s fun to take a peek at the stories behind the raises and dig deeper into the numbers.
So here we go.
First off, San Francisco-based Pilot — which has a mission of affordably providing back-office services such as bookkeeping to startups and SMBs — apparently had term sheets that offered “2x the $40M” raised in its Series B. But it chose not to raise so much capital.
I also heard that the same investor that ended up leading a now defunct competitor’s $60 million raise first asked to invest $60 million in Pilot as a follow-on to that Series B prior to making the other investment. While I don’t know for sure, I can only presume that what is being referred to is ScaleFactor’s $60 million Series C raise in August 2019 that was led by Coatue Management. (ScaleFactor crashed and burned last year.)
According to CFO Paul Jun: “There were many periods when Pilot turned away new customers and growth capital instead of absolutely maximizing short-term growth…Pilot prioritized building the foundational investments needed for scalability, reliability and high velocity. When it was presented with the opportunity for additional funding towards further growth in 2019, it declined to do so.”
Co-founder and CEO Waseem Daher elaborates, pointing out that the first company that Pilot’s founding team ran, Ksplice, was bootstrapped before getting acquired by Oracle in 2011. (It’s also worth noting that the founding team are all MIT computer scientists.)
“Ultimately, the reason to raise money is you believe that you can deploy the capital, to grow the company or to basically cause the company to grow at the rate you’d like to grow. And it doesn’t make sense to raise money if you don’t need it, or don’t have a good plan for what to do with it,” Daher told TechCrunch. “Too much capital can be bad because it sort of leads you to bad habits…When you have the money, you spend the money.”
So despite what he describes as “a great deal of institutional interest” in 2019, Pilot opted to raise just $40 million, instead of $80 million to $100 million, because it was the amount of capital the company had confidence that it could deploy successfully.
Also, Jun shared some numbers beyond the recent raise amount and valuation.
Bottom line is companies don’t have to accept all the capital that’s offered to them. And maybe in some cases, they shouldn’t.
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School closures due to the pandemic have interrupted the learning processes of millions of kids, and without individual attention from teachers, reading skills in particular are taking a hit. Amira Learning aims to address this with an app that reads along with students, intelligently correcting errors in real time. Promising pilots and research mean the company is poised to go big as education changes, and it has raised $11 million to scale up with a new app and growing customer base.
In classrooms, a common exercise is to have students read aloud from a storybook or worksheet. The teacher listens carefully, stopping and correcting students on difficult words. This “guided reading” process is fundamental for both instruction and assessment: It not only helps the kids learn, but the teacher can break the class up into groups with similar reading levels so she can offer tailored lessons.
“Guided reading is needs-based, differentiated instruction and in COVID we couldn’t do it,” said Andrea Burkiett, director of Elementary Curriculum and Instruction at the Savannah-Chatham County Public School System. Breakout sessions are technically possible, “but when you’re talking about a kindergarten student who doesn’t even know how to use a mouse or touchpad, COVID basically made small groups nonexistent.”
Amira replicates the guided reading process by analyzing the child’s speech as they read through a story and identifying things like mispronunciations, skipped words and other common stumbles. It’s based on research going back 20 years that has tested whether learners using such an automated system actually see any gains (and they did, though generally in a lab setting).
In fact I was speaking to Burkiett out of skepticism — “AI” products are thick on the ground and while it does little harm if one recommends you a recipe you don’t like, it’s a serious matter if a kid’s education is impacted. I wanted to be sure this wasn’t a random app hawking old research to lend itself credibility, and after talking with Burkiett and CEO Mark Angel I feel it’s quite the opposite and could actually be a valuable tool for educators. But it needed to convince educators first.
“You have to start by truly identifying the reason for wanting to employ a tech tool,” said Burkiett. “There are a lot of tech tools out there that are exciting, fun for kids, etc., but we could use all of them and not impact growth or learning at all because we didn’t stop and say, this tool helps me with this need.”
Amira was decided on as one that addresses the particular need in the K-5 range of steadily improving reading level through constant practice and feedback.
“When COVID hit, every tech tool came out of the woodwork and was made free and available,” Burkiett recalled. “With Amira you’re looking at a 1:1 tutor at their specific level. She’s not a replacement for a teacher — though it has been that way in COVID — but beyond COVID she could become a force multiplier,” said Burkiett.
You can see the old version of Amira in action below, though it’s been updated since:
Testing Amira with her own district’s students, Burkiett replicated the results that have been obtained in more controlled settings: As much as twice or three times as much progress in reading level based on standard assessment tools, some of which are built into the teacher-side Amira app.
Naturally it isn’t possible to simply attribute all this improvement to Amira — there are other variables in play. But it appears to help and doesn’t hinder, and the effect correlates with frequency of use. The exact mechanism isn’t as important as the fact that kids learn faster when they use the app versus when they don’t, and furthermore this allows teachers to better allocate resources and time. A kid who can’t use it as often because their family shares a single computer is at a disadvantage that has nothing to do with their aptitude — but this problem can be detected and accounted for by the teacher, unlike a simple “read at home” assignment.
“Outside COVID we would always have students struggling with reading, and we would have parents with the money and knowledge to support their student,” Burkiett explained. “But now we can take this tool and offer it to students regardless of mom and dad’s time, mom and dad’s ability to pay. We can now give that tutor session to every single student.”
This is familiar territory for CEO Mark Angel, though the AI aspect, he admits, is new.
“A lot of the Amira team came from Renaissance Learning. bringing fairly conventional edtech software into elementary school classrooms at scale. The actual tech we used was very simple compared to Amira — the big challenge was trying to figure out how to make applications work with the teacher workflow, or make them friendly and resilient when 6-year-olds are your users,” he told me.
“Not to make it trite, but what we’ve learned is really just listen to teachers — they’re the superusers,” Angel continued. “And to design for radically sub-optimal conditions, like background noise, kids playing with the microphone, the myriad things that happen in real-life circumstances.”
Once they were confident in the ability of the app to reliably decode words, the system was given three fundamental tasks that fall under the broader umbrella of machine learning.
The first is telling the difference between a sentence being read correctly and incorrectly. This can be difficult due to the many normal differences between speakers. Singling out errors that matter, versus simply deviation from an imaginary norm (in speech recognition that is often, effectively, American English as spoken by white people) lets readers go at their own pace and in their own voice, with only actual issues like saying a silent k noted by the app.
On that note, considering the prevalence of English language learners with accents, I asked about the company’s performance and approach there. Angel said they and their research partners went to great lengths to make sure they had a representative dataset, and that the model only flags pronunciations that indicate a word was not read or understood correctly.
The second is knowing what action to take to correct an error. In the case of a silent k, it matters whether this is a first grader who is still learning spelling or a fourth grader who is proficient. And is this the first time they’ve made that mistake, or the tenth? Do they need an explanation of why the word is this way, or several examples of similar words? “It’s about helping a student at a moment in time,” Angel said, both in the moment of reading that word, and in the context of their current state as a learner.
Third is a data-based triage system that warns students and parents if a kid may potentially have a language learning disorder like dyslexia. The patterns are there in how they read — and while a system like Amira can’t actually diagnose, it can flag kids who may be high risk to receive a more thorough screening. (A note on privacy: Angel assured me that all information is totally private and by default is considered to belong to the district. “You’d have to be insane to take advantage of it. We’d be out of business in a nanosecond.”)
The $11 million in funding comes at what could be a hockey-stick moment for Amira’s adoption. The round was led by Authentic Ventures II, LP, with participation from Vertical Ventures, Owl Ventures and Rethink Education.
“COVID was a gigantic spotlight on the problem that Amira was created to solve,” Angel said. “We’ve always struggled in this country to help our children become fluent readers. The data is quite scary — more than two-thirds of our fourth graders aren’t proficient readers, and those two-thirds aren’t equally distributed by income or race. It’s a decades-long struggle.”
Having basically given the product away for a year, the company is now looking at how to convert those users into customers. It seems like, just like the rest of society, “going back to normal” doesn’t necessarily mean going back to 2019 entirely. The lessons of the pandemic era are sticking.
“They don’t have the intention to just go back to the old ways,” Angel explained. “They’re searching for a new synthesis — how to incorporate tech, but do it in a classroom with kids elbow to elbow and interacting with teachers. So we’re focused on making Amira the norm in a post-COVID classroom.”
Part of that is making sure the app works with language learners at more levels and grades, so the team is working to expand its capabilities upward to include middle-school students as well as elementary. Another is building out the management side so that success at the classroom and district levels can be more easily understood.
The company is also launching a new app aimed at parents rather than teachers. “A year ago 100% of our usage was in the classroom, then three weeks later 100% of our usage was at home. We had to learn a lot about how to adapt. Out of that learning we’re shipping Amira and the Story Craft that helps parents work with their children.”
Hundreds of districts are on board provisionally — aided by a distribution partnership with Houghton Mifflin Harcourt, also an investor — but decisions are still being kicked down the road as they deal with outbreaks, frustrated parents and every other chaotic aspect of getting back to “normal.”
Perhaps a bit of celebrity juice may help tip the balance in their favor. A new partnership with Miami Dolphins (former Houston Texans) linebacker Brennan Scarlett has the NFL player advising the board and covering the cost of 100 students at a Portland, OR school through his education charity, the Big Yard Foundation — and more to come. It may be a drop in the bucket in the scheme of things, with a year of schooling disrupted, but teachers know that every drop counts.
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PlexTrac, a Boise, ID-based security service that aims to provide a unified workflow automation platform for red and blue teams, today announced that it has raised a $10 million Series A funding round led by Noro-Moseley Partners and Madrona Venture Group. StageDot0 ventures also participated in this round, which the company plans to use to build out its team and grow its platform.
With this new round, the company, which was founded in 2018, has now raised a total of $11 million, with StageDot0 leading its 2019 seed round.
“I have been on both sides of the fence, the specialist who comes in and does the assessment, produces that 300-page report and then comes back a year later to find that some of the critical issues had not been addressed at all. And not because the organization didn’t want to but because it was lost in that report,” PlexTrac CEO and President Dan DeCloss said. “These are some of the most critical findings for an entity from a risk perspective. By making it collaborative, both red and blue teams are united on the same goal we all share, to protect the network and assets.”
With an extensive career in security that included time as a penetration tester for Veracode and the Mayo Clinic, as well as senior information security advisor for Anthem, among other roles, DeCloss has quite a bit of firsthand experience that led him to found PlexTrac. Specifically, he believes that it’s important to break down the wall between offense-focused red teams and defense-centric blue teams.
“Historically there has been more of the cloak and dagger relationship but those walls are breaking down — and rightfully so, there isn’t that much of that mentality today — people recognize they are on the same mission whether they are an internal security team or an external team,” he said. “With the PlexTrac platform the red and blue teams have a better view into the other teams’ tactics and techniques — and it makes the whole process into an educational exercise for everyone.”
At its core, PlexTrac makes it easier for security teams to produce their reports — and hence free them up to actually focus on “real” security work. To do so, the service integrates with most of the popular scanners like Qualys, and Veracode, but also tools like ServiceNow and Jira in order to help teams coordinate their workflows. All the data flows into real-time reports that then help teams monitor their security posture. The service also features a dedicated tool, WriteupsDB, for managing reusable write-ups to help teams deliver consistent reports for a variety of audiences.
“Current tools for planning, executing and reporting on security testing workflows are either nonexistent (manual reporting, spreadsheets, documents, etc. …) or exist as largely incomplete features of legacy platforms,” Madrona’s S. Somasegar and Chris Picardo write in today’s announcement. “The pain point for security teams is real and PlexTrac is able to streamline their workflows, save time, and greatly improve output quality. These teams are on the leading edge of attempting to find and exploit vulnerabilities (red teams) and defend and/or eliminate threats (blue teams).”
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You might think that a startup whose primary customers are tourism bureaus would have had a pretty rough 2020, but CEO Monir Parikh said Bandwango‘s customer base more than doubled in the past year, growing from 75 to 200.
In Parikh’s words, the Murray, Utah-based startup has built a platform called the Destination Experience Engine which is designed for “connecting businesses with communities.” That means bringing together offers from local restaurants, retailers, wineries, breweries, state parks and more into package deals — such as the Newport Beach Dine Pass and the Travel Iowa State Passport — which are then sold by tourism bureaus.
Obviously, the pandemic dealt a big blow to tourism, but in response, many of these organizations shifted focus to deals that could entice locals to support nearby businesses and attractions. Parikh predicted that even after the pandemic, tourism bureaus will continue to understand that “local-focused tourism is going to be part of the mix of what we do — locals are your ambassadors, they are the best organic marketing channel.”
Plus, Parikh said that as new privacy regulations make it harder to collect data about online visitors, it’s becoming more challenging for tourism bureaus “to prove to their funders that they’re having an economic impact.” So where bureaus were content in the past to advertise deals and then link out to other sites where customers could make the actual purchases, selling the deals themselves has become a new way to prove their worth.
Bandwango founder and CEO Monir Parikh. Image Credits: Bandwango
With last year’s growth, Bandwango has raised $3.1 million in seed funding led by Next Frontier Capital, with participation from Kickstart, Signal Peak Ventures, SaaS Ventures and Ocean Azul Partners. (The startup had previously raised only $700,000 in funding.)
Parikh said that until now, Bandwango has been a largely full-service option. The selling point, after all, is that the tourism bureaus already “have great relationships with these local businesses,” but the startup can handle the hard work of “trying to wrangle 200 of their local businesses” to offer deals and accept those deals in-store.
“Our mantra is: We become your back office,” he added. But with the new funding, he wants the startup to build a self-serve product as well. “What I say to my team is that a 90-year-old grandmother, as well as 12-year-old teenager, should be able to come into our platform and say, ‘I want to create a local savings program or an ale trail’ and do it end-to-end, without our assistance.”
And while Bandwango is currently focused on providing a white-label solution to its customers (rather than building a consumer deal destination of its own), Parikh said it will eventually distribute these deals more broadly by creating its own “private label brands.”
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One of the issues with deploying a machine learning application is that it tends to be expensive and highly compute intensive. Deeplite, a startup based in Montreal, wants to change that by providing a way to reduce the overall size of the model, allowing it to run on hardware with far fewer resources.
Today, the company announced a $6 million seed investment. Boston-based venture capital firm PJC led the round, with help from Innospark Ventures, Differential Ventures and Smart Global Holdings. Somel Investments, BDC Capital and Desjardins Capital also participated.
Nick Romano, CEO and co-founder at Deeplite, says the company aims to take complex deep neural networks that require a lot of compute power to run, tend to use up a lot of memory and can consume batteries at a rapid pace, and help them run more efficiently with fewer resources.
“Our platform can be used to transform those models into a new form factor to be able to deploy it into constrained hardware at the edge,” Romano explained. Those devices could be as small as a cell phone, a drone or even a Raspberry Pi, meaning that developers could deploy AI in ways that just wouldn’t be possible in most cases right now.
The company has created a product called Neutrino that lets you specify how you want to deploy your model and how much you can compress it to reduce the overall size and the resources required to run it in production. The idea is to run a machine learning application on an extremely small footprint.
Davis Sawyer, chief product officer and co-founder, says that the company’s solution comes into play after the model has been built, trained and is ready for production. Users supply the model and the data set and then they can decide how to build a smaller model. That could involve reducing the accuracy a bit if there is a tolerance for that, but chiefly it involves selecting a level of compression — how much smaller you can make the model.
“Compression reduces the size of the model so that you can deploy it on a much cheaper processor. We’re talking in some cases going from 200 megabytes down to on 11 megabytes or from 50 megabytes to 100 kilobytes,” Davis explained.
Rob May, who is leading the investment for PJC, says that he was impressed with the team and the technology the startup is trying to build.
“Deploying AI, particularly deep learning, on resource-constrained devices, is a broad challenge in the industry with scarce AI talent and know-how available. Deeplite’s automated software solution will create significant economic benefit as Edge AI continues to grow as a major computing paradigm,” May said in a statement.
The idea for the company has roots in the TandemLaunch incubator in Montreal. It launched officially as a company in mid-2019 and today has 15 employees, with plans to double that by the end of this year. As it builds the company, Romano says the founders are focused on building a diverse and inclusive organization.
“We’ve got a strategy that’s going to find us the right people, but do it in a way that is absolutely diverse and inclusive. That’s all part of the DNA of the organization,” he said.
When it’s possible to return to work, the plan is to have offices in Montreal and Toronto that act as hubs for employees, but there won’t be any requirement to come into the office.
“We’ve already discussed that the general approach is going to be that people can come and go as they please, and we don’t think we will need as large an office footprint as we may have had in the past. People will have the option to work remotely and virtually as they see fit,” Romano said.
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