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MGA Thermal raises $8M AUD led by Main Sequence for its modular energy storage blocks

Startup News - 2021, August 3 - 4:00am

MGA Thermal co-founders Erich Kisi and Alex Post. Image Credits: MGA Thermal

MGA Thermal wants to help utility companies transition from fossil fuels to renewable energy sources with shoebox-sized thermal energy storage blocks. The company says a stack of 1,000 blocks is about the size of a small car and can store enough energy to power 27 homes for 24 hours. This gives utility providers the ability to store large amounts of energy and have it ready to dispatch even when weather conditions aren’t ideal for generating solar or wind power. The modular blocks also make it easier to convert infrastructure, like coal-fired power plants, into grid-scale energy storage.

MGA Thermal announced today it has raised $8 million AUD (about $5.9 million USD), bring its total funding so far to $9 million AUD. The round was led by Main Sequence, a venture firm founded by Australia’s national science agency that recently launched a new $250 million AUD fund. Alberts Impact Capital, New Zealand’s Climate Venture Capital Fund, The Melt and returning investor CP Ventures participated, along with angel investors like Chris Sang, Emlyn Scott and Glenn Butcher.

Founded by Australia’s national science agency, Main Sequence launches $250M AUD deep tech fund

Based in Newcastle, Australia, MGA Thermal was founded in April 2019 by Erich Kisi and Alexander Post after nearly a decade spent researching and developing miscibility gap alloys technology at the University of Newcastle. When asked to explain MGA tech in layperson’s terms, Kisi used a delicious analogy.

MGA Thermal’s blocks “essentially comprise metal particles that melt when heated embedded in an inert matrix material. Think of a block as being like a choc-chip muffin heated in a microwave. The muffin consists of a cake component, which holds everything in shape when heated, and the choc chips, which melt,” he told TechCrunch.

“The energy that goes into melting the choc chips is stored and can burn your mouth when you bite into the muffin,” he added. “Melting energy is more intense than merely heating something up and that melting energy is concentrated near the melting temperature so energy can be released in a consistent way.”

MGA Thermal’s modular energy storage blocks. Image Credits: MGA Thermal

Energy stored in MGA Thermal’s blocks can be used to heat water to power steam turbines and generators. In this scenario, blocks are designed with internal tubing for pumping and boiling water, or interact with a heat exchanger. Kisi said MGA Thermal’s blocks enable aging thermal power plans to continue running on renewable energy that would usually be switched off in situations like overheating caused by too much sun or high winds.

Other thermal energy solutions include heating low-cost solid materials in blocks or granules to high temperatures in an insulated container. But many of these materials aren’t good at moving thermal energy around and have temperature limitations, Kisi said. This means thermal energy decreases in temperature as it is discharged, making it less effective.

Another method for storing thermal energy involves molten salts that are heated by a renewable energy source and stored in a hot tank. The hot salt is then pumped through a heat exchanger to make steam, while colder (but still molten) salt is returned to a “cold” tank.

“These systems are widely used in concentrating solar thermal energy but have found little use elsewhere,” Kisi said. “That’s mostly because there is a large infrastructure cost for piping pumps and heaters, and a large amount of power is wasted keeping the salt from freezing.”

MGA Thermal is establishing a manufacturing plant in New South Wales to scale to commercial levels production of its blocks, and plans to double its team over the next 12 months so it can make hundreds of thousands of blocks each month. It is also currently working with partners like Swiss company E2S Power ASG and U.S.-based Peregrine Turbine Technologies to deploy its tech in Australia, Europe and North America. For example, E2S Power AG will use MGA Thermal’s tech to repurpose retired and active coal-fired thermal plants in Europe.

While MGA Thermal’s tech has many industrial use cases, like converting power stations, building off-grid storage and supplying power to remote communities and commercial spaces, it can also help consumers consume less fossil fuel. For example, MGA blocks can be used by households to store excess energy generated from rooftop solar panels or small wind turbines. Then that energy can be used to heat homes.

“Around the world an estimated three billion people heat their homes by burning fuel,” said Kisi. “That’s a lot of CO2, especially in very cold climates.”

In a statement, Main Sequence partner Martin Duursma said, “A core focus of our new fund is uncovering the scientific discoveries, and helping to turn them into real, tangible technologies so we can reverse our climate impact. Erich Kisi and Alexander Post’s impressive deep research backgrounds, their expert team and innovative technology are paving the way for grid-scale energy storage and boosting the capability of a renewable energy future globally.”

Endua creates hydrogen-powered clean energy storage, using tech from Australia’s national science agency

Severe weather, blackouts show the grid’s biggest problem is infrastructure, not renewables

Categories: Business News

Can your startup support a research-based workflow?

Startup News - 2021, August 3 - 3:29am
João Graça Contributor Share on Twitter João Graça is CTO and co-founder of Unbabel, an AI-powered language operations platform that enables any agent to communicate in any language.

The President’s Council of Advisors on Science and Technology predicts that U.S. companies will spend upward of $100 billion on AI R&D per year by 2025. Much of this spending today is done by six tech companies — Microsoft, Google, Amazon, IBM, Facebook and Apple, according to a recent study from CSET at Georgetown University. But what if you’re a startup whose product relies on AI at its core?

Can early-stage companies support a research-based workflow? At a startup or scaleup, the focus is often more on concrete product development than research. For obvious reasons, companies want to make things that matter to their customers, investors and stakeholders. Ideally, there’s a way to do both.

Before investing in staffing an AI research lab, consider this advice to determine whether you’re ready to get started.

Compile the right research team

Assuming it’s your organization’s priority to do innovative AI research, the first step is to hire one or two researchers. At Unbabel, we did this early by hiring Ph.D.s and getting started quickly with research for a product that hadn’t been developed yet. Some researchers will build from scratch and others will take your data and try to find a pre-existing model that fits your needs.

While Google’s X division may have the capital to focus on moonshots, most startups can only invest in innovation that provides them a competitive advantage or improves their product.

From there, you’ll need to hire research engineers or machine learning operations professionals. Research is only a small part of using AI in production. Research engineers will then release your research into production, monitor your model’s results and refine the model if it stops predicting well (or otherwise is not operating as planned). Often they’ll use automation to simplify monitoring and deployment procedures as opposed to doing everything manually.

None of this falls within the scope of a research scientist — they’re most used to working with the data sets and models in training. That said, researchers and engineers will need to work together in a continuous feedback loop to refine and retrain models based on actual performance in inference.

Choose the problems you want to solve

The CSET research cited above shows that 85% of AI labs in North America and Europe do some form of basic AI research, and less than 15% focus on development. The rest of the world is different: A majority of labs in other countries, such as India and Israel, focus on development.

Categories: Business News

The next generation of global payments: Afterpay + Square

Startup News - 2021, August 3 - 1:26am
Dana Stalder Contributor Share on Twitter Dana Stalder is a partner at Matrix Partners. The former commercial chief (Product, Sales and Marketing) at PayPal, he now leads fintech investing at Matrix Partners, where he also invests in consumer marketplaces and enterprise software. More posts by this contributor

Sunday was a big day in fintech: Afterpay has agreed to merge with Square. This agreement sets two of the most admired financial technology companies in recent history on a path to becoming one.

Afterpay and Square have the potential to build one of the world’s most important payments networks. Square has built a very significant merchant payment network, and, via Cash App, a thriving high-growth consumer payment service. However, these two lines of business have historically not been integrated. Together, Square and Afterpay will be able to weave all of these services together into a single integrated experience.

Afterpay and Cash App each have double-digit millions of consumers, and Square’s seller ecosystem and Afterpay’s merchant network both record double-digit billions of payment volume per year. From the offline register and the online checkout flow to sending money in just a few taps, Square and Afterpay will tell a complete story of next-generation economic empowerment.

As Afterpay’s only institutional venture investor, I wanted to share some perspective on how we got here and what this merger means for the future of consumer finance and the payments industry.

Afterpay and Square have the potential to build one of the world’s most important payments networks.

Critical innovations in fintech

Every five to 10 years, the global payments industry undergoes a critical innovation cycle that determines the winners and losers for the next several decades. The last major transition was the shift to NFC-based mobile payments, which I wrote about in 2015. The major mobile OS vendors (Apple and Google) cemented their position in the global payments stack by deftly bridging the needs of the networks (Visa, Mastercard, etc.) and consumers by way of the mobile devices in their pockets.

Afterpay sparked the latest critical innovation cycle. Conceived in a living room in Sydney by a millennial, Nick Molnar, for millennials, Afterpay had a key insight: Millennials don’t like credit.

Millennials came of age during the global mortgage crisis of 2008. As young adults, they watched their friends and family lose their homes by overextending on mortgage debt, bolstering their already lower trust for banks. They also have record levels of student debt. Therefore, it’s no surprise that millennials (and Gen Z right behind them) strongly prefer debit cards over credit cards.

But it’s one thing to recognize the paradigm shift and quite another to do something about it. Nick Molnar and Anthony Eisen did something, ultimately building one of the fastest-growing payments startups in history on their core product: Buy now, pay later … and never any interest.

Afterpay’s product is simple. If you have $100 in your cart and choose to pay with Afterpay, it will charge your bank card (typically a debit card) $25 every two weeks in four installments. No interest, no revolving debt and no fees with on-time payments. For the millennial consumer, this meant they could get the primary benefit of a credit card (the ability to pay later) with their debit card, without the need to worry about all the bad things that come with credit cards — high interest rates and revolving debt.

All upside, no downside. Who could resist? For the early merchants, virtually all of whom relied on millennials as their key growth segment, they got a fair trade: Pay a small fee above payment processing to Afterpay, get significantly higher average order values and conversions to purchase. It was a win-win proposition and, with lots of execution, a new payment network was born.

Image Credits: Matrix Partners

Imitation is the greatest form of flattery

Afterpay went somewhat unnoticed outside Australia in 2016 and 2017, but once it came to the U.S. in 2018 and built a business there that broke $100 million net revenues in only its second year, it got attention.

Klarna, which had struggled with product-market fit in the U.S., pivoted their business to emulate Afterpay. And Affirm, which had always been about traditional credit — generating a significant portion of their revenue from consumer interest — also noticed and introduced their own BNPL offering. Then came PayPal with “Pay in 4,” and just a few weeks ago, there has been news that Apple is expected to enter the space.

Afterpay created a global phenomenon that has now become a category embraced by mainstream players across the industry — a category that is on track to take a meaningful share of global retail payments over the next 10 years.

Afterpay stands apart. It has always been the BNPL leader by virtually every measure, and it has done it by staying true to their customers’ needs. The company is great at understanding the millennial and Gen Z consumer. It’s evident in the voice, tone and lifestyle brand you experience as an Afterpay user, and in the merchant network it continues to build strategically. It’s also evident in the simple fact that it doesn’t try to cross-sell users revolving debt products.

Most importantly, it’s evident in the usage metrics relative to competition. This is a product that people love, use and have come to rely on, all with better, fairer terms than were ever available to them than with traditional consumer credit.

Image Credits: Afterpay H1 FY21 results presentation

Square + Afterpay: The perfect fit

I’ve been building payment companies for over 15 years now, initially in the early days of PayPal and more recently as a venture investor at Matrix Partners. I’ve never seen a combination that has such potential to deliver extraordinary value to consumers and merchants. Even more so than eBay + PayPal.

Beyond the clear product and network complementarity, what’s most exciting to me and my partners is the alignment of values and culture. Square and Afterpay share a vision of a future with more opportunity and fewer economic hurdles for all. As they build toward that future together, I’m confident that this combination is a winner. Square and Afterpay together will become the world’s next generation payment provider.

Why Square is shelling out $29B to snag BNPL player Afterpay

Categories: Business News

Lilium in talks with Brazilian airline for $1B order

Startup News - 2021, August 3 - 1:14am

German electric aircraft startup Lilium is negotiating the terms for a 220-aircraft, $1 billion order with one of Brazil’s largest domestic airlines, the companies said Monday. Should the deal with Azul move forward, it would mark the largest order in Lilium’s history and its first foray into South American markets.

“A term sheet has been signed and we will move toward a final agreement in the coming months,” a Lilium spokesperson told TechCrunch.

The 220 aircraft would fly as part of a new, co-branded airline network that would operate in Brazil. Should the two companies come to an agreement, Azul would operate and maintain the fleet of the flagship seven-seater aircraft, and Lilium would provide custom spare parts, including replacement batteries, and an aircraft health monitoring platform.

Deliveries would commence in 2025, a year after Lilium has said it plans to begin commercial operations in Europe and the United States. These timelines are dependent upon Lilium receiving key certification approvals from each country’s requisite aerospace regulator. Azul said in a statement it would “support Lilium with the necessary regulatory approval processes in Brazil” as part of the agreement.

Even if a deal is reached, it would likely be subject to Lilium hitting certain performance standards and benchmarks, similar to the conditions of Archer Aviation’s $1 billion order with United Airlines. Still, orders of this value are seen as a positive signal to markets and investors that an electric vertical take-off and landing aircraft is more than smoke and mirrors.

Also like Archer, Lilium is planning on taking the SPAC route to going public. The company in March announced its intention to merge with Qell Acquisition Corp. and list on Nasdaq under ticker symbol “LILM.” SPACs have become a popular vehicle for public listing across the transportation sector, but they’ve become especially popular with capital-intensive eVTOL startups.

The merger may be necessary for the company’s continued operations. According to the German news website Welt, Lilium added a risk warning to its 2019 balance sheet noting that it will run out of money in December 2022 should the SPAC merger not be completed.

The air taxi market prepares to take flight

Categories: Business News

Why Square is shelling out $29B to snag BNPL player Afterpay

Startup News - 2021, August 3 - 12:29am

Shares of Square are up this morning after the company announced its second-quarter earnings and that it will buy Afterpay, an Australian buy now, pay later (BNPL) player in a $29 billion deal. As TechCrunch reported this morning, Afterpay shareholders will receive 0.375 shares of Square in exchange for their existing equity.

Shares of Afterpay are sharply higher after the deal was announced thanks to its implied premium, while shares of Square are up 7% in early-morning trading.

The Exchange explores startups, markets and money.

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.

Over the past year, we’ve written extensively about the BNPL market, usually from the perspective of earnings from companies in the space. Afterpay has been a key data source, along with the yet-private Klarna and U.S. public BNPL outfit Affirm. Recall that each company has posted strong growth in recent periods, with the United States arising as a prime competitive market.

Most recently, consumer hardware and services giant Apple is reportedly preparing a move into the BNPL space. Our read at the time was that any such movement by Cupertino would impact mass-market BNPL players more than niche-focused companies. Apple has a fintech base and broad IRL payment acceptance, making it a potentially strong competitor for BNPL services aimed at consumers; BNPL services targeted at particular industries or niches would likely see less competition from Apple.

From that landscape, let’s explore the Square-Afterpay deal. We want to know what Afterpay brings to Square in terms of revenue, growth and reach. We also want to do some math on the price Square is willing to pay for the company — and what that might tell us about the value of BNPL and fintech revenues more broadly. Then we’ll eyeball the numbers and try to decide if Square is overpaying for Afterpay.

What Afterpay brings to Square

As with most major deals these days, Square and Afterpay released an investor presentation detailing their argument in favor of their combination. Let’s dig through it.

Square is a two-part company. It has a large consumer business via Cash App, and it has a large business division that offers payments tech and other fintech services to corporate customers. Recall that Square is also building out banking services for its business customers and that Cash App also serves some banking and investing functionality for consumers.

Categories: Business News

Fake call centre busted, 12 held for duping people by posing as Amazon tech support staff

Google News - VoIP - 2021, August 3 - 12:11am
The police said the accused used illegal techniques and Voice over Internet Protocol (VoIP)-based calling and to cause losses to government ...
Categories: VoIP News

Hear Startup Alley companies pitch expert VC judges on the next episode of Extra Crunch Live

Startup News - 2021, August 3 - 12:10am

We know how much you love a good startup pitch-off. Who doesn’t? It combines the thrill of live, high-stakes entertainment with learning about the hottest new thing. Plus, you get to hear feedback from some of the smartest folks in the industry, thus learning how to absolutely crush it at your next pitch meeting with a VC.

With all that in mind, we’re introducing a special summer edition of Extra Crunch Live that’s all pitch-off, all the time.

On August 4, Extra Crunch Live will feature startups exhibiting in the Startup Alley at TechCrunch Disrupt 2021 in September. Those startups will pitch their products/businesses to a pair of expert VC judges, who will then give their live feedback.

Extra Crunch Live is usually a combination of an interview with a founder/investor duo and an audience pitch-off. But as it’s summer, and Disrupt is right around the corner, we thought it would be fun to bring you even more pitches and even more feedback.

On August 4, our expert VC judges will be Edith Yeung from Race Capital and Laela Sturdy of CapitalG. Register here for free!

Edith Yeung started out as an investor at 500 Startups and is now a general partner at Race Capital. She’s an expert on both the China and Silicon Valley investment landscape and has made more than 50 investments, with a portfolio that includes 50 startups, including Lightyear/Stellar (valued $1.2 billion), Silk Labs (acquired by Apple), Chirp (acquired by Apple), Fleksy (acquired by Pinterest), Human (acquired by Mapbox), Solana, Oasis Labs, Nebulas, Hooked, DayDayCook, AISense and many more.

Laela Sturdy is a 10x unicorn operator-turned-investor whose investments are worth nearly $200 billion. She joined CapitalG, the investment arm of Alphabet, in 2013, and her portfolio includes Stripe, UiPath, Duolingo, Gusto, Webflow and Unqork, among many others.

As a special thank you, all attendees of this episode of Extra Crunch Live will be entered into a random drawing for a chance to win one of three free tickets to TechCrunch Disrupt 2021. Following the event, we’ll randomly select three winners and send details on how to redeem their passes. Do you need to submit any additional information to enter the drawing? Nope. All you need to do is register for Extra Crunch Live by clicking here and attend the event on August 4.

Categories: Business News

<b>VoIP</b> Providers Market Perspective (2021-2027): Nextiva, RingCentral, Verizon, 8×8, Jive, Viber

Google News - VoIP - 2021, August 2 - 11:48pm
The new archive on the Global VoIP Providers market is an assortment of information and significant data, from the different sources like the significant ...
Categories: VoIP News

The tale of two edtech IPOs

Startup News - 2021, August 2 - 11:00pm

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast where we unpack the numbers behind the headlines. Last week, Natasha and Alex jumped on Twitter Spaces to discuss the tale of two edtech IPOs: Duolingo, the consumer language learning company, and PowerSchool, the enterprise K-12 software platform. It was a rare moment in the sun for the recently revitalized sector, which saw two companies list on the stock market on the same dang day.

Special shout out to our producer Chris Gates for handling this impromptu live chat, tech difficulties and all, and bringing it to your ears on this lovely Monday. Don’t forget that Equity is largely on break this week!

Here’s what we got into, featuring some edtech entrepreneurs nice enough to drop on by:

  • China’s edtech crackdown and how it is impacting startups both internationally and domestically. The regulations, one of which will force for-profit tutoring companies to turn into nonprofits, are also getting the cold shoulder from U.S. edtech VCs, it seems.
  •  As Lightspeed Ventures investor Mercedes Bent so aptly put it, the news is somewhat ironic: “[T]he U.S. edtech IPO market is on fire (after being dormant for so long) and the China edtech market is crumbling (after being on fire for so long).”
  • Evidence of that can be found in the Duolingo IPO pricing arc. The company first posted a strong estimate of its worth, raised its range, priced above that raised interval, and still managed to trade higher. The company is still up more than $30 from its IPO price.
  • PowerSchool was a bit different. It priced at $18 per share, the low end of its $18 to $20 range. The company is up from its IPO price, albeit a much more modest 2 or 3% in today’s early trading.

In the second half of the show, we brought on the following host of edtech founders to share their hot takes about the current state of edtech:

Before we go, Equity is on a “break” this week, as we do some soul searching and refresh before our next run of shows. Obviously we still had to share this episode, and um, are recording another episode this week too, but you, my dear friend, will hear from us again next Monday.

Equity drops every Monday at 7:00 a.m. PDT, Wednesday, and Friday morning at 7:00 a.m. PDT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

The Duolingo EC-1

Categories: Business News

Yaydoo secures $20M, aims to simplify B2B collections, payments

Startup News - 2021, August 2 - 10:00pm

It’s no secret that the technology for easy business-to-business payments has not yet caught up to its peer-to-peer counterparts, but Yaydoo thinks it has the answer.

The Mexico City-based B2B software and payments company provides three products, VendorPlace, P-Card and PorCobrar, for managing cash flow, optimizing access to smart liquidity, and connecting small, midsize and large businesses to an ecosystem of digital tools.

Sergio Almaguer, Guillermo Treviño and Roberto Flores founded Yaydoo — the name combines “yay” and “do” to show the happiness of doing something — in 2017. Today, the company announced the close of a $20.4 million Series A round co-led by Base10 Partners and monashees.

Joining them in the round were SoftBank’s Latin America Fund and Leap Global Partners. In total, Yaydoo has raised $21.5 million, Almaguer told TechCrunch.

Prior to starting the company, Almaguer was working at another company in Mexico doing point-of-sale. His large enterprise customers wanted automation for their payments, but he noticed that the same tools were too expensive for small businesses.

The co-founders started Yaydoo to provide procurement, accounts payable and accounts receivables, but in a simpler format so that the collection and payment of B2B transactions was affordable for small businesses.

Image Credits: Yaydoo

The idea is taking off, and vendors are adding their own customers so that they are all part of the network to better link invoices to purchase orders and then connect to accounts payable, Almaguer said. Yaydoo estimates that the automation workflows reduced 80% of time wasted paying vendors, on average.

Yaydoo is joining a sector of fintech that is heating up — the global B2B payments market is valued at $120 trillion annually. Last week, B2B payments platform Nium announced a $200 million in Series D funding on a $1 billion valuation. Others attracting funding recently include Paystand, which raised $50 million in Series C funding to make B2B payments cashless, while Dwolla raised $21 million for its API that allows companies to build and facilitate fast payments.

The new funding will enable the company to attract new hires in Mexico and when the company expands into other Latin American countries. Yaydoo is also looking at future opportunities for its working capital business, like understanding how many invoices customers are setting, the access to actual payments, and how money flows out and in so that it can provide insights on working capital funding gaps. The company will also invest in product development.

The company has grown to over 800 customers, up from 200 in the first quarter of 2020. Its headcount also grew to 100 from 30 during the same time. In the last 12 months, over 70,000 companies have transacted on the Yaydoo network, and total payment volume grew to hundreds of millions of dollars.

Yaydoo is a SaaS subscription model, but the new funding will also enable the company to create a pool of potential customers with a “freemium” offering with the goal of converting those customers into the subscription model as they grow, Almaguer said.

Rexhi Dollaku, partner at Base10 Partners, said the firm saw the way B2B payments were becoming modernized and “was impressed” by the Yaydoo team and how it built a complicated infrastructure, but made it easy to use.

He believes Latin America is 10 years behind in terms of B2B payments but will catch up sooner than later because of the digital transformation going on in the region.

“We are starting to see early signs of the network being built out of the payments product, and that is a good indication,” Dollaku said. “With the funding, Yaydoo will be also able to provide more financial services options for businesses to address a working fund gap.”

All B2B startups are in the payments business

Categories: Business News

Newtopia closes first fund of $50M to invest in LatAm startups

Startup News - 2021, August 2 - 10:00pm

Early-stage venture capital fund Newtopia VC launched Monday with $50 million to invest in tech startups based in Latin America.

The fund will invest $100,000 in pre-seed startups and then between $250,000 and $1 million in startups at the seed stage to help them achieve the milestones needed on the path to raising a Series A.

Newtopia is led by five major players in the regional entrepreneurial ecosystem:

  • Patricio Jutard, co-founder of MURAL;
  • Mariano Mayer, former national secretary for entrepreneurs and SMEs in Argentina and founder of Marea Venture Partners;
  • Sacha Spitz, co-founder and partner of Yavu Ventures and former director at the Universidad de San Andrés incubation program;
  • Jorge Aguado, former national science, technology and innovation secretary in Argentina;
  • Juan Pablo Lafosse, founder and former CEO of Almundo.

The group has already invested in startups in Mexico, Brazil and Argentina, including Aleph (B2B SaaS for e-commerce), Apperto (social commerce), Choiz (healthtech), Inipay (fintech), Leef (sustainability), Wibson (e-privacy) and Yerbo (wellness).

Mayer told TechCrunch that he sees a great moment happening in Latin America around global venture capital firms — like Sequoia Capital, Andreessen Horowitz and SoftBank —making bets in the region, especially targeting later-stage investments. There are home-grown venture capital firms doing well, too, citing Kaszek’s $1 billion funds.

Why Latin American venture capital is breaking records this year

“However, we see a gap in investments in seed and road to Series A,” he added. “We aim to help entrepreneurs in those stages. Newtopia started with conversations during the pandemic, and now we see a big momentum for transformation of traditional sectors and the talent to make businesses out of these opportunities.”

Newtopia is offering both investment and a hands-on mentorship model to guide startups through the initial stages so they can grow regionally or globally. The fund has already amassed a community of more than 70 founders to invest, advise and be venture partners to the portfolio companies.

The Newtopia 10-Week Program works with companies to find product-market fit, achieve initial goals and set a foundation for further growth. The firm opened the call for applicants and will select 10 startups to receive a spot in the program and $100,000 each.

By taking a lead in early-stage investing, it will feed the rest of the venture capital firms that are doing later-stage investing, Mayer said.

He sees investments growing in Latin America every year, estimating there was a record $4 billion spread across the region, turning some companies into unicorns, including Jutard’s Mural, which raised $50 million in July. That has more than validated that there will be more money in coming years, Mayer added.

Jutard said the fund’s founders were all investing or mentoring companies on their own, but the new funding will enable them to structure that assistance to help hundreds of startups rather than a handful.

“Early-stage companies go through an emotional rollercoaster where they feel alone, encounter times when it is hard to sell their product or recruit, so we are focused on building a community of support,” Jutard added.

Why is Andreessen Horowitz (and everyone else) investing in Latin America now?

Editor’s note: Due to a mistake from the firm, Exactly (DeFi) and Elevva (e-commerce brands) were removed from the list of investments.

Categories: Business News

Finite State lands $30M Series B to help uncover security flaws in device firmware

Startup News - 2021, August 2 - 10:00pm

Columbus, Ohio-based Finite State, a startup that provides supply chain security for connected devices and critical infrastructure, has raised $30 million in Series B funding. 

The funding lands amid increased focus on the less-secure elements in an organizations’ supply chain, such as Internet of Things devices and embedded systems. The problem, Finite State says, is largely fueled by device firmware, the foundational software that often includes components sourced from third-party vendors or open-source software. This means if a security flaw is baked into the finished product, it’s often without the device manufacturers’ knowledge. 

“Cyberattackers see firmware as a weak link to gain unauthorized access to critical systems and infrastructure,” Matt Wyckhouse, CEO of Finite State, tells TechCrunch. “The number of known cyberattacks targeting firmware has quintupled in just the last four years.”

The Finite State platform brings visibility to the supply chains that create connected devices and embedded systems. After unpacking and analyzing every file and configuration in a firmware build, the platform generates a complete bill of materials for software components, identifies known and possible zero-day vulnerabilities, shows a contextual risk score and provides actionable insights that product teams can use to secure their software.

“By looking at every piece of their supply chain and every detail of their firmware — something no other product on the market offers — we enable manufacturers to ship more secure products so that users can trust their connected devices more,” Wyckhouse says.

The company’s latest funding round was led by Energize Ventures, with participation from Schneider Electric Ventures and Merlin Ventures, and comes a year after Finite State raised a $12.5 million Series A round. It brings the total amount of funds raised by the firm to just shy of $50 million. 

The startup says it plans to use the funds to scale to meet the demands of the market. It plans to increase its headcount too; Finite State currently has 50 employees, a figure that’s expected to grow to more than 80 by the end of 2021.  

“We also want to use this fundraising round to help us get out the message: Firmware isn’t safe unless it’s safe by design,” Wyckhouse added. “It’s not enough to analyze the code your engineers built when other parts of your supply chain could expose you to major security issues.”

Finite State was founded in 2017 by Matt Wyckhouse, founder and former CTO of Battelle’s Cyber Business Unit. The company showcased its capabilities in June 2019, when its widely cited Huawei Supply Chain Assessment revealed numerous backdoors and major security vulnerabilities in the Chinese technology company’s networking devices that could be used in 5G networks. 

Read more:

To guard against data loss and misuse, the cybersecurity conversation must evolve

Categories: Business News

<b>VoIP</b> Providers Market Overview, Major Manufacturers and Production Price, Cost Revenue, <b>VoIP</b> ...

Google News - VoIP - 2021, August 2 - 9:54pm
Global VoIP Providers Market Report is a systematically conducted exhaustive study of the worldwide VoIP Providers industry. The aim of the Global ...
Categories: VoIP News

Global <b>VoIP</b> Providers Market 2020 Research Objectives, Future Estimations and Segmentation ...

Google News - VoIP - 2021, August 2 - 9:43pm
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BoxGroup closes on $255M across two funds to back startups at their earliest stages

Startup News - 2021, August 2 - 9:30pm

BoxGroup has quietly, yet diligently, been funding companies at the early stage for over a decade. The 11-year-old firm in fact was the first investor in Plaid, a fintech company that nearly got sold to Visa last year for billions of dollars.

It has seen a number of impressive exits over the years, proving an eye that can detect winners before the winners themselves may even realize it. In fact, it’s that early faith in companies that partner David Tisch believes has been key to BoxGroup’s success.

“If you’re starting a company and you’re going to raise money, that first yes is the hardest. And it’s the one that gives you the confidence, the excitement — to know that there’s somebody out there that’s going to believe in this and give you money for it,” Tisch told TechCrunch. “We really do try to pride ourselves on being that first yes on a regular basis. So the earlier we meet companies, the better.”

Today, BoxGroup is announcing it has beefed up its war chest so that it can be that “first yes” to more companies with the closure of two new funds totaling $255 million of capital. BoxGroup Five is the firm’s fifth early-stage fund, and is aimed at investing in emerging tech companies at the pre-seed and seed stages. BoxGroup Strive is its second opportunity fund that will back companies in their subsequent follow-on rounds. Each fund amounts to $127.5 million. 

Over the years, BoxGroup has made more than 300 investments, including having invested in the earliest rounds of Ro, Plaid, Airtable, Workrise, Scopely, Bowery Farms, Ramp, Titan, Warby Parker, ClassPass, Guideline and Glossier. It has had a number of impressive exits in Flatiron Health, PillPack, Matterport, Oscar, Mirror, Bark, Bread and Trello. 

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Besides being the first firm to write Plaid a check, BoxGroup was also the first investor in PillPack, which ended up selling to Amazon for just under $1 billion in 2018.

BoxGroup Five will invest in about 40 to 50 new companies a year with investments ranging from $250,000 to $1 million.

“We want to be the second or third biggest check in a round,” Tisch said.

Image Credits: BoxGroup; Adam Rothenberg (left), Nimi Katragadda (bottom), Greg Rosen (top), David Tisch (right)

The opportunity fund occasionally makes later-stage investments in new companies, but mostly just continues to support companies it invested in at an earlier stage. For example, BoxGroup first invested in id.me in 2010.

“The company is sort of an eleven-year overnight success that we’ve been backing for over a decade now,” Tisch said. “It’s an example of us just continuing to support companies through their life cycle.”

BoxGroup also pre-seeded digital healthcare startup Ro, but also funded every round it has raised since, including its most recent $500 million funding at a $5 billion valuation

Tisch describes the BoxGroup six-person team as “generalists” in terms of the spaces it invests in, with a portfolio consisting of startups in the consumer, enterprise, fintech, healthcare, marketplace, synthetic biology and climate sectors.

Interestingly, BoxGroup’s last fund closures — which totaled $165 million — marked the first time the firm had accepted outside capital in nine years. Prior to that point, it had been funded with only personal capital. Its LPs are a mixed group of endowments, foundations and family offices.

For BoxGroup, building authentic relationships with founders is at the root of what the firm does, says partner Nimi Katragadda. That includes taking bets on founders, sometimes more than once, even if one of their companies didn’t work out. It means backing just ideas in some cases, and people.

“This cannot be transactional, it has to be personal,” she said. “We want to go on a journey with someone for a decade as they build their business…. We’re comfortable with what early means, including a lot of assumptions, more vision than traction, and raw product.”

Partner Adam Rothenberg agrees, saying: “Our goal is to be the friend in the room. We believe in honesty, tough love and transparency in building relationships with founders. We focus on the “how” more than the “what” — how a founder thinks, how they will build product and how they think about attracting talent.”

With offices in San Francisco and New York, the firm will likely be growing in the near future as BoxGroup is looking to add on some “first-line investors,” Tisch said.

Recently, Greg Rosen was named a partner at the firm. Rosen originally joined BoxGroup in 2015, where he spent three years before leaving to join Benchmark. He re-joined BoxGroup in early 2020 and joins the firm’s three other partners: Tisch, Rothenberg and Katragadda. 

While the world of venture is crazy-hot right now, Tisch said the firm keeps itself grounded with a wisdom that can only be gained with experience and in time.

“There is seemingly infinite capital waiting to be deployed,” he said. “Without calling the cycle, we know that over time markets go up and down…No matter where we are in a given cycle, smart and determined minds will come together to build important technology companies. Our job is to make sure we are meeting those founders and choosing wisely about which ones to partner with for 10+ year journeys.”

BoxGroup raises its first externally backed fund to invest in seed-stage startups

Categories: Business News

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Mixlab raises $20M to provide purrfect pharmacy experience for pet parents

Startup News - 2021, August 2 - 8:30pm

Pet pharmacy Mixlab has developed a digital platform enabling veterinarians to prescribe medications and have them delivered — sometimes on the same day — to pet parents.

The New York-based company raised a $20 million Series A in a round of funding led by Sonoma Brands and including Global Founders Capital, Monogram Capital, Lakehouse Ventures and Brand Foundry. The new investment gives Mixlab total funding of $30 million, said Fred Dijols, co-founder and CEO of Mixlab.

Dijols and Stella Kim, chief experience officer, co-founded Mixlab in 2017 to provide a better pharmacy experience, with the veterinarian at the center.

Dijols’ background is in medical devices as well as healthcare investment banking, where he became interested in the pharmacy industry, following TruePill and PillPack, which he told TechCrunch were “creating a modern pharmacy model.”

As more pharmacy experiences revolved around at-home delivery, he found the veterinary side of pharmacy was not keeping up. He met Kim, a user experience expert, whose family owns a pharmacy, and wanted to bring technology into the industry.

“The pharmacy industry is changing a lot, and technology allows us to personalize the care and experience for the veterinarian, pet parent and the pet,” Kim said. “Customer service is important in healthcare as is dignity and empathy. We kept that in mind when starting Mixlab. Many companies use technology to remove the human element, but we use it to elevate it.”

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Mixlab’s technology includes a digital service for veterinarians to streamline their daily medication workflow and gives them back time to spend with patient care. The platform manages the home delivery of medications across branded, generic and over-the-counter medications, as well as reduces a clinic’s on-site pharmacy inventories. Veterinarians can write prescriptions in seconds and track medication progress and therapy compliance.

The company also operates its own compound pharmacy where it specializes in making medications on-demand that are flavored and dosed.

On the pet parent side, they no longer have to wait up to a week for medications nor have to drive over to the clinic to pick them up. Medications come in a personalized care package that includes a note from the pharmacist, clear and easy-to-read instructions and a new toy.

Over the past year, adoptions of pets spiked as more people were at home, also leading to an increase in vet visits. This also caused the global pet care industry to boom, and it is now projected to reach $343 billion by 2030, when it had been valued at $208 billion in 2020.

Pet parents are also spending more on their pets, and a Morgan Stanley report showed that they see pets as part of their family, and as a result, 37% of people said they would take on debt to pay for a pet’s medical expenses, while 29% would put a pet’s needs before their own.

To meet the increased demand in veterinary care, the company will use the new funding to improve its technology and expand into more locations where it can provide same-day delivery. Currently it is shipping to 47 states and Dijols expects to be completely national by the end of the year. He also expects to hire more people on both the sales team and in executive leadership positions.

The company is already operating in New York and Los Angeles and growing 3x year over year, though Dijols admits operating during the pandemic was a bit challenging due to “a massive surge of orders” that came in as veterinarians had to shut down their offices.

As part of the investment, Keith Levy, operating partner at Sonoma Brands and former president of pet food manufacturer Royal Canin USA, will join Mixlab’s board of directors. Sonoma Brands is focused on growth sectors of the consumer economy, and pets was one of the areas that investors were interested in.

Over time, Sonoma found that within the veterinary community, there was space for a lot of players. However, veterinarians want to home in on one company they trust, and Mixlab fit that description for many because they were getting medication out faster, Levy said.

“What Mixlab is doing isn’t completely unique, but they are doing it better,” he added. “When we looked at their customer service metrics, we saw they had a good reputation and were relentlessly focused on providing a better experience.”

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Categories: Business News

Singapore-based Nektar.ai gets $6M to help B2B sales team collaborate more effectively

Startup News - 2021, August 2 - 8:30pm

Nektar.ai founders Aravind Ravi Sulekha and Abhijeet Vijayvergiya

Organizing information about prospective deals is a challenging task for B2B sales teams, since salespeople usually rely on multiple tools (email, Zoom, WhatsApp, etc.) to talk with buyer committees. It becomes even more unwieldy when sales teams work remotely. Nektar.ai is a B2B sales productivity startup that wants to help sales teams by reducing the amount of time they spend on manual data entry and providing analytics that can increase their revenue. The Singapore-based company announced today it has raised $6 million in seed funding, led by B Capital Group.

3One4 Capital and returning investor Nexus Venture Partners also participated, along with angel investors like Amit Midha, president of Asia Pacific and Japan at Dell; Ritesh Agarwal, the founder and CEO of OYO Hotels; Kevin Merritt, former president of Tyler Technologies’ data and insights division; Evan Davidson, SentinelOne’s vice president of Asia Pacific and Japan; Deep Nishar, senior managing partner at SoftBank Investment Advisers; and Tom Donlea, Ekata’s vice president and general manager of APAC.

Combined with its previous round, $2.15 million led by Nexus Venture Partners and announced in November 2020, the new funding brings Nektar.ai’s total seed capital to $8.1 million. The company says this is one of the largest seed rounds ever for a SaaS company based in Asia. Nektar.ai’s workforce is remote-first and the company says half of its team are women.

Singapore-based sales productivity platform Nektar raises $2.15 million seed round

Nektar.ai has been in stealth mode since it was founded in 2020 by Abhijeet Vijayvergiya and Aravind Ravi Sulekha, working with hundreds of clients in private beta mode. Its waitlist is currently open for sign-ups, with plans to launch publicly in the first half of 2022. Part of Nektar.ai’s seed funding will be used to build a go-to-market team focused on the United States.

Nektar.ai was designed for SaaS revenue teams who have to manage information across many channels, including email, calendars, web conferences, Slack, CRM tools, LinkedIn and WhatsApp. This makes it hard for them to collaborate, follow playbooks (or sets of best practices) and get a full understanding of their deals pipeline and revenue. Nektar.ai integrates with different apps, surfaces key data and delivers it to the most convenient collaboration tool for a team, like Slack.

Vijayvergiya told TechCrunch that over the last six months, Nektar.ai accelerated product development because “we saw a strong demand for a guided selling solution in the market,” onboarding more than 200 prospects from its waitlist.

Nektar.ai launched a web console for managers, a Chrome extension and integrations with Salesforce, Google Workspace and Slack. It also added a new feature called Capture Bot, an AI-based system that automatically extracts important information from salespeople’ online interactions with buyer committees, surfacing data that would otherwise be tucked away in different inboxes and calendars. This increases the accuracy of their CRM tools and allows sales managers to see how engaged their teams are with potential customers and how prospective deals are progressing.

For individual representatives, Nektar.ai’s tools let them spend less time on manual data entry. They also get analytics like multithreading scores that help them identify how deals were won or lost. For example, Vijayvergiya said one client found they won deals if they had at least four contacts with a buyer committee after the demo stage. As a result, its sales representatives began engaging with more than four members of the buyer committee on all potential deals.

Another way Nektar.ai helps SaaS sales teams save money and time is building databases of first-party contacts from their inboxes. Vijayvergiya said one client was able to save $50,000 by organizing their existing contacts instead of purchasing third-party contact data.

In a statement, B Capital Group general partner Gabe Greenbaum said, “Nektar.ai’s solutions provide great value to distributed revenue teams, which is even more important as enterprises conduct further business across global markets. B Capital is always eager to work with experienced and knowledgeable founders, and we’re confident that Abhijeet, Aravind and the Nektar.ai team will continue their strong momentum on the path to becoming the industry-leading tool for enterprise sales productivity.”

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Categories: Business News

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Google News - VoIP - 2021, August 2 - 8:15pm
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