Jun
07
2018
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Devo scores $25 million and cool new name

Logtrust is now known as Devo in one of the cooler name changes I’ve seen in a long time. Whether they intended to pay homage to the late 70s band is not clear, but investors probably didn’t care, as they gave the data operations startup a bushel of money today.

The company now known as Devo announced a $25 million Series C round led by Insight Venture Partners with participation from Kibo Ventures. Today’s investment brings the total raised to $71 million.

The company changed its name because it was about much more than logs, according to CEO Walter Scott. It offers a cloud service that allows customers to stream massive amounts of data — think terabytes or even petabytes — relieving the need to worry about all of the scaling and hardware requirements processing this amount of data would require. That could be from logs from web servers, security data from firewalls or transactions taking place on backend systems, as some examples.

The data can live on prem if required, but the processing always gets done in the cloud to provide for the scaling needs. Scott says this is about giving companies this ability to process and understand massive amounts of data that previously was only in reach of web scale companies like Google, Facebook or Amazon.

But it involves more than simply collecting the data. “It’s the combination of us being able to collect all of that data together with running analytics on top of it all in a unified platform, then allowing a very broad spectrum of the business [to make use of it],” Scott explained.

Devo dashboard. Photo: Devo

Devo sees Sumo Logic, Elastic and Splunk as its primary competitors in this space, but like many startups they often battle companies trying to build their own systems as well, a difficult approach for any company to take when you are dealing with this amount of data.

The company, which was founded in Spain is now based in Cambridge, Massachusetts, and has close to 100 employees. Scott says he has the budget to double that by the end of the year, although he’s not sure they will be able to hire that many people that rapidly

May
23
2018
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Meet the speakers at The Europas, and get your ticket free (July 3, London)

Excited to announce that this year’s The Europas Unconference & Awards is shaping up! Our half day Unconference kicks off on 3 July, 2018 at The Brewery in the heart of London’s “Tech City” area, followed by our startup awards dinner and fantastic party and celebration of European startups!

The event is run in partnership with TechCrunch, the official media partner. Attendees, nominees and winners will get deep discounts to TechCrunch Disrupt in Berlin, later this year.
The Europas Awards are based on voting by expert judges and the industry itself. But key to the daytime is all the speakers and invited guests. There’s no “off-limits speaker room” at The Europas, so attendees can mingle easily with VIPs and speakers.

What exactly is an Unconference? We’re dispensing with the lectures and going straight to the deep-dives, where you’ll get a front row seat with Europe’s leading investors, founders and thought leaders to discuss and debate the most urgent issues, challenges and opportunities. Up close and personal! And, crucially, a few feet away from handing over a business card. The Unconference is focused into zones including AI, Fintech, Mobility, Startups, Society, and Enterprise and Crypto / Blockchain.

We’ve confirmed 10 new speakers including:


Eileen Burbidge, Passion Capital


Carlos Eduardo Espinal, Seedcamp


Richard Muirhead, Fabric Ventures


Sitar Teli, Connect Ventures


Nancy Fechnay, Blockchain Technologist + Angel


George McDonaugh, KR1


Candice Lo, Blossom Capital


Scott Sage, Crane Venture Partners


Andrei Brasoveanu, Accel


Tina Baker, Jag Shaw Baker

How To Get Your Ticket For FREE

We’d love for you to ask your friends to join us at The Europas – and we’ve got a special way to thank you for sharing.

Your friend will enjoy a 15% discount off the price of their ticket with your code, and you’ll get 15% off the price of YOUR ticket.

That’s right, we will refund you 15% off the cost of your ticket automatically when your friend purchases a Europas ticket.

So you can grab tickets here.

Vote for your Favourite Startups

Public Voting is still humming along. Please remember to vote for your favourite startups!

Awards by category:

Hottest Media/Entertainment Startup

Hottest E-commerce/Retail Startup

Hottest Education Startup

Hottest Startup Accelerator

Hottest Marketing/AdTech Startup

Hottest Games Startup

Hottest Mobile Startup

Hottest FinTech Startup

Hottest Enterprise, SaaS or B2B Startup

Hottest Hardware Startup

Hottest Platform Economy / Marketplace

Hottest Health Startup

Hottest Cyber Security Startup

Hottest Travel Startup

Hottest Internet of Things Startup

Hottest Technology Innovation

Hottest FashionTech Startup

Hottest Tech For Good

Hottest A.I. Startup

Fastest Rising Startup Of The Year

Hottest GreenTech Startup of The Year

Hottest Startup Founders

Hottest CEO of the Year

Best Angel/Seed Investor of the Year

Hottest VC Investor of the Year

Hottest Blockchain/Crypto Startup Founder(s)

Hottest Blockchain Protocol Project

Hottest Blockchain DApp

Hottest Corporate Blockchain Project

Hottest Blockchain Investor

Hottest Blockchain ICO (Europe)

Hottest Financial Crypto Project

Hottest Blockchain for Good Project

Hottest Blockchain Identity Project

Hall Of Fame Award – Awarded to a long-term player in Europe

The Europas Grand Prix Award (to be decided from winners)

The Awards celebrates the most forward thinking and innovative tech & blockchain startups across over some 30+ categories.

Startups can apply for an award or be nominated by anyone, including our judges. It is free to enter or be nominated.

What is The Europas?

Instead of thousands and thousands of people, think of a great summer event with 1,000 of the most interesting and useful people in the industry, including key investors and leading entrepreneurs.

• No secret VIP rooms, which means you get to interact with the Speakers

• Key Founders and investors speaking; featured attendees invited to just network

• Expert speeches, discussions, and Q&A directly from the main stage

• Intimate “breakout” sessions with key players on vertical topics

• The opportunity to meet almost everyone in those small groups, super-charging your networking

• Journalists from major tech titles, newspapers and business broadcasters

• A parallel Founders-only track geared towards fund-raising and hyper-networking

• A stunning awards dinner and party which honors both the hottest startups and the leading lights in the European startup scene

• All on one day to maximise your time in London. And it’s PROBABLY sunny!

europas8

That’s just the beginning. There’s more to come…

europas13

Interested in sponsoring the Europas or hosting a table at the awards? Or purchasing a table for 10 or 12 guest or a half table for 5 guests? Get in touch with:
Petra Johansson
Petra@theeuropas.com
Phone: +44 (0) 20 3239 9325

May
16
2018
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Parsable secures $40M investment to bring digital to industrial workers

As we increasingly hear about automation, artificial intelligence and robots taking away industrial jobs, Parsable, a San Francisco-based startup sees a different reality, one with millions of workers who for the most part have been left behind when it comes to bringing digital transformation to their jobs.

Parsable has developed a Connected Worker platform to help bring high tech solutions to deskless industrial workers who have been working mostly with paper-based processes. Today, it announced a $40 million Series C cash injection to keep building on that idea.

The round was led by Future Fund with help from B37 and existing investors Lightspeed Venture Partners, Airbus Ventures and Aramco Ventures. Today’s investment brings the total to nearly $70 million.

The Parsable solution works on almost any smartphone or tablet and is designed to enter information while walking around in environments where a desktop PC or laptop simply wouldn’t be practical. That means being able to tap, swipe and select easily in a mobile context.

Photo: Parsable

The challenge the company faced was the perception these workers didn’t deal well with technology. Parsable CEO Lawrence Whittle says the company, which launched in 2013, took its time building its first product because it wanted to give industrial workers something they actually needed, not what engineers thought they needed. This meant a long period of primary research.

The company learned, it had to be dead simple to allow the industry vets who had been on the job for 25 or more years to feel comfortable using it out of the box, while also appealing to younger more tech-savvy workers. The goal was making it feel as familiar as Facebook or texting, common applications even older workers were used to using.

“What we are doing is getting rid of [paper] notebooks for quality, safety and maintenance and providing a digital guide on how to capture work with the objective of increasing efficiency, reducing safety incidents and increasing quality,” Whittle explained.

He likens this to the idea of putting a sensor on a machine, but instead they are putting that instrumentation into the hands of the human worker. “We are effectively putting a sensor on humans to give them connectivity and data to execute work in the same way as machines,” he says.

The company has also made the decision to make the platform flexible to add new technology over time. As an example they support smart glasses, which Whittle says accounts for about 10 percent of its business today. But the founders recognized that reality could change and they wanted to make the platform open enough to take on new technologies as they become available.

Today the company has 30 enterprise customers with 30,000 registered users on the platform. Customers include Ecolab, Schlumberger, Silgan and Shell. They have around 80 employees, but expect to hit 100 by the end of Q3 this year, Whittle says.

May
16
2018
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Dashdash, a platform to create web apps using only spreadsheet skills, nabs $8M led by Accel

Sometimes I think of spreadsheets as the dirty secret of the IT world today. We’ve seen a huge explosion in the number of productivity tools on the market tailored to help workers with different aspects of doing their job and organising their information, in part to keep them from simply dumping lots of information into Excel or whatever program they happen to use. And yet, spreadsheets are still one of the very, very most common pieces of software in use today to organise and share information: Excel alone now has around 1 billion users, and for those who are devotees, spreadsheets are not going to go away soon.

So it’s interesting that there are now startups — and larger companies like Microsoft — emerging that are tapping into that, creating new services that still appear like spreadsheets in the front end, while doing something completely different in the back.

One of the latest is a startup called dashdash, a startup out of Berlin and Porto that is building a platform for people, who might to be programmers but know their way around a spreadsheet, to use those skills to build, modify and update web apps.

The dashdash platform looks and acts like a spreadsheet up front, but behind the scenes, each ‘macro’ links to a web app computing feature, or a design element, to build something that ultimately will look nothing like a spreadsheet, bypassing all the lines of code that traditionally go into building web apps.

The startup is still in stealth mode, with plans to launch formally later this year. Today, it’s announcing that it has received $8 million in Series A funding to get there, with the round being led by Accel, with participation from Cherry Ventures, Atlantic Labs, and angel investors including Felix Jahn, founder of Home24. (It’s raised $9 million to date including $1 million in seed funding.)

Co-founded by serial entrepreneurs Humberto Ayres Pereira and Torben Schulz — who had also been co-founders of food delivery startup EatFirst — Ayres Pereira said that the idea came out of their own observations in work life and the bottleneck of getting things fixed or modified in a company’s apps (both internal and customer-facing).

“People have a lot of frustration with the IT department, and their generally access to it,” he said in an interview. “If you are part of an internet business, it’s very hard to get features prioritised in an app, no matter how small they are. Tech is like a big train on iron tracks, and it can be hard to steer it in a different direction.”

On the other hand, even among the less technical staff, there will be proficiency with certain software, including spreadsheets. “Programming and spreadsheets already store and transform data,” Ayers Pereira said. “There are already a lot of people trying to do more with incumbent spreadsheets, and [combining that with] non-IT people frustrated at having no solution for working on apps, we saw an opportunity to use this to build an elegant platform the empower people. We can’t teach people to program but we can provide them with the tools to do the exact same job.”

While in stealth mode, he said that early users have ranged from smaller businesses such as pharmacies, to “a multi-billion-dollar internet company.” (No names, of course, but it’s interesting to me that this problem even exists at large tech businesses.)

Dashdash is not the only company that is tapping this opportunity. The other week, and IoT startup called Hanhaa launched a service that would let those using Hanhaa IoT sensors in their networks to monitor and interact with them by way of an Excel spreadsheet — another tip of the hat to the realisation that those who might need to keep tabs on devices in the network might not be the people who are the engineers and technicians who have set them up.

That, in turn, is part of a bigger effort from Microsoft to catapult Excel from its reputation as a piece of clunky legacy software into something much more dynamic, playing on the company’s push into cloud services and Office 365.

In September of 2017, Microsoft gave a developer preview of new “streaming functions” for Excel on Office 365, which lets developers, IT professionals and end users the ability to bring streams of data from a variety of sources such as websites, stock tickers and hardware directly into a cell or cells in an Excel spreadsheet, by way of a custom function. “Because Excel is so widely used and familiar to so many people, the ability to do all kinds of amazing things with that data and without complex integration is now possible,” said Ben Summers, a senior product manager for the Office 365 ecosystem team, in a statement to TechCrunch.

That ability to remove the bottleneck from web app building, combined with the track record of the founders, are two of the reasons that Accel decided to invest before the product even launched.

“We believe in dashdash’s mission to democratise app creation and are excited to back Humberto and Torben at such an early stage in their journey,” said Andrei Brasoveanu, the Accel principal who led the deal. “The team has the experience and vision to build a high-impact company that brings computing to the fingertips of a broad audience. Over the past decade we’ve seen a proliferation of web services and APIs, but regular business users still need to rely on central IT and colleagues with development skills to leverage these in their day-to-day processes. With dashdash anyone will be able to access these powerful web services directly with minimal effort, empowering them to automate their day to day tasks and work more effectively.”

With every tool that emerges that frees up accessibility to more people — be they employees or consumers — there are inevitably questions about how that power will be used. In the case of dashdash, my first thought is about those who I know who work in IT: they generally don’t want anyone able to modify or “fix” their code, lest it just creates more problems. And that’s before you start wondering about how all these democratised web apps will look, and if they might inadvertently will add to more overall UI and UX confusion.

Ayres Pereira said dashdash is mindful of the design question, and will introduce ways of helping to direct this, for example for companies to implement their own house styles. And similarly, a business can put in place other controls to help channel how web apps created through dashdash’s spreadsheet interface ultimately get applied.

May
15
2018
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MemSQL raises $30M Series D round for its real-time database

MemSQL, a company best known for the real-time capabilities of its eponymous in-memory database, today announced that it has raised a $30 million Series D round, bringing the company’s overall funding to $110 million. The round was led by GV (the firm you probably still refer to as Google Ventures) and Glynn Capital. Existing investors Accell, Caffeinated Capital, Data Collective and IA Ventures also participated.

The MemSQL database offers a distributed, relational database that uses standard SQL drivers and queries for transactions and analytics. Its defining feature is the combination of its data ingestions technology that allows users to push millions of events per day into the service while its users can query the records in real time. The company recently showed that its tools can deliver a scan rate of over a trillion rows per second on a cluster with 12 servers.

The database is available for deployments on the major public clouds and on-premises.

MemSQL recently announced that it saw its fourth-quarter commercial booking hit 200 percent year-over-year growth — and that’s typically the kind of growth that investors like to see, even as MemSQL plays in a very competitive market with plenty of incumbents, startups and even open-source projects. Current MemSQL users include the likes of Uber, Akamai, Pinterest, Dell EMC and Comcast.

“MemSQL has achieved strong enterprise traction by delivering a database that enables operational analysis at unique speed and scale, allowing customers to create dynamic, intelligent applications,” said Adam Ghobarah, general partner at GV, in today’s announcement. “The company has demonstrated measurable success with its growing enterprise customer base and we’re excited to invest in the team as they continue to scale.”

May
15
2018
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Auth0 snags $55M Series D, seeks international expansion

Auth0, a startup based in Seattle, has been helping developers with a set of APIs to build authentication into their applications for the last five years. It’s raised a fair bit of money along the way to help extend that mission, and today the company announced a $55 million Series D.

This round was led by led by Sapphire Ventures with help from World Innovation Lab, and existing investors Bessemer Venture Partners, Trinity Ventures, Meritech Capital and K9 Ventures. Today’s investment brings the total raised to $110 million. The company did not want to share its valuation.

CEO Eugenio Pace said the investment should help them expand further internationally. In fact, one of the investors, World Innovation Lab, is based in Japan and should help with their presence there. “Japan is an important market for us and they should help explain to us how the market works there,” he said.

The company offers an easy way for developers to build in authentication services into their applications, also known as Identification as a Service (IDaaS). It’s a lot like Stripe for payments or Twilio for messaging. Instead of building the authentication layer from scratch, they simply add a few lines of code and can take advantage of the services available on the Auth0 platform.

That platform includes a range of service such as single-sign on, two-factor identification, passwordless log-on and breached password detection.

They have a free tier, which doesn’t even require a credit card, and pay tiers based on the types of users — regular versus enterprise — along with the number of users. They also charge based on machine-to-machine authentication. Pace reports they have 3500 paying customers and tens of thousands of users on the free tier.

All of that has added up to a pretty decent business. While Pace would not share specific numbers, he did indicate the company doubled its revenue last year and expected to do so again this year.

With a cadence of getting funding every year for the last three years, Pace says this round may mark the end of that fundraising cycle for a time. He wasn’t ready to commit to the idea of an IPO, saying that is likely a couple of years away, but he says the company is close to profitability.

With the new influx of money, the company does plan to expand its workforce as moves into markets across the world . They currently have 300 employees, but within a year he expects to be between 400 and 450 worldwide.

The company’s last round was a $30 million Series C last June led by Meritech Capital Partners.

May
07
2018
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Mesosphere hauls in $125 M Series D investment

Mesosphere, a company that created an operating system of sorts for the modern datacenter, announced today that it has raised $125 million for their Series D round. Today’s investment brings total funding since it formed in 2013 to almost $250 million.

The round was led by T. Rowe Price Associates and Koch Disruptive Technologies (KDT). New investors ZWC Ventures, Qatar Investment Authority (QIA) and Disruptive Technology Advisers (DTA) also participated along with existing investors Andreessen Horowitz, Two Sigma Ventures, Khosla Ventures and Hewlett Packard Enterprise.

The funding comes at a time when the company has tripled its revenue and wants to take that momentum and expand more into international markets. They currently have 300 employees, 125 customers and are on a $50 million revenue run rate, according to information supplied by Mesosphere .

CEO Florian Leibert says his company decided to take on this money at this point because it sees a market opportunity and needed the funds to expand. “With this latest round, we’ll be able to ramp up R&D and hone our product roadmap toward repeatable, proven solutions around data engineering and data science,” Leibert told TechCrunch.

He wants to take those products to more international markets including Europe, China and the Middle East, while increasing their channel presence, especially with international and regional systems integrators, who can help pave the way into these markets.

Mesosphere’s core technology called DC/OS, provides a way to manage datacenter resources, whether private or in the public cloud, much more efficiently than traditional tools by treating the entire datacenter as a single pool of resources, Tobias Knaup, Mesosphere CTO explained. This allows an operations team to see multiple locations, zones and regions from a single interface, he said.

Mesosphere has taken on a mix of traditional venture capitalists, international funding authorities and strategic corporate backers, but the presence of T Rowe Price and the size of the round could be a signal that the company intends to go public at some point. Leibert wasn’t willing to give anything away, however.

“We are focused on growth and building a self-sustaining company. We certainly haven’t ruled out a public event in the future, but I can’t speak to any specific plans at this time.” In other words, the standard CEO answer to such a question.

The company’s last round was in March 2016 for $73.5 million.

Apr
25
2018
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Allegro.AI nabs $11M for ‘deep learning as a service’, for businesses to build computer vision products

Artificial intelligence and the application of it across nearly every aspect of our lives is shaping up to be one of the major step changes of our modern society. Today, a startup that wants to help other companies capitalise on AI’s advances is announcing funding and emerging from stealth mode.

Allegro.AI, which has built a deep learning platform that companies can use to build and train computer-vision-based technologies — from self-driving car systems through to security, medical and any other services that require a system to read and parse visual data — is today announcing that it has raised $11 million in funding, as it prepares for a full-scale launch of its commercial services later this year after running pilots and working with early users in a closed beta.

The round may not be huge by today’s startup standards, but the presence of strategic investors speaks to the interest that the startup has sparked and the gap in the market for what it is offering. It includes MizMaa Ventures — a Chinese fund that is focused on investing in Israeli startups, along with participation from Robert Bosch Venture Capital GmbH (RBVC), Samsung Catalyst Fund and Israeli fund Dynamic Loop Capital. Other investors (the $11 million actually covers more than one round) are not being disclosed.

Nir Bar-Lev, the CEO and cofounder (Moses Guttmann, another cofounder, is the company’s CTO; and the third cofounder, Gil Westrich, is the VP of R&D), started Allegro.AI first as Seematics in 2016 after he left Google, where he had worked in various senior roles for over 10 years. It was partly that experience that led him to the idea that with the rise of AI, there would be an opportunity for companies that could build a platform to help other less AI-savvy companies build AI-based products.

“We’re addressing a gap in the industry,” he said in an interview. Although there are a number of services, for example Rekognition from Amazon’s AWS, which allow a developer to ping a database by way of an API to provide analytics and some identification of a video or image, these are relatively basic and couldn’t be used to build and “teach” full-scale navigation systems, for example.

“An ecosystem doesn’t exist for anything deep-learning based.” Every company that wants to build something would have to invest 80-90 percent of their total R&D resources on infrastructure, before getting to the many other apsects of building a product, he said, which might also include the hardware and applications themselves. “We’re providing this so that the companies don’t need to build it.”

Instead, the research scientists that will buy in the Allegro.AI platform — it’s not intended for non-technical users (not now at least) — can concentrate on overseeing projects and considering strategic applications and other aspects of the projects. He says that currently, its direct target customers are tech companies and others that rely heavily on tech, “but are not the Googles and Amazons of the world.”

Indeed, companies like Google, AWS, Microsoft, Apple and Facebook have all made major inroads into AI, and in one way or another each has a strong interest in enterprise services and may already be hosting a lot of data in their clouds. But Bar-Lev believes that companies ultimately will be wary to work with them on large-scale AI projects:

“A lot of the data that’s already on their cloud is data from before the AI revolution, before companies realized that the asset today is data,” he said. “If it’s there, it’s there and a lot of it is transactional and relational data.

“But what’s not there is all the signal-based data, all of the data coming from computer vision. That is not on these clouds. We haven’t spoken to a single automotive who is sharing that with these cloud providers. They are not even sharing it with their OEMs. I’ve worked at Google, and I know how companies are afraid of them. These companies are terrified of tech companies like Amazon and so on eating them up, so if they can now stop and control their assets they will do that.”

Customers have the option of working with Allegro either as a cloud or on-premise product, or a combination of the two, and this brings up the third reason that Allegro believes it has a strong opportunity. The quantity of data that is collected for image-based neural networks is massive, and in some regards it’s not practical to rely on cloud systems to process that. Allegro’s emphasis is on building computing at the edge to work with the data more efficiently, which is one of the reasons investors were also interested.

“AI and machine learning will transform the way we interact with all the devices in our lives, by enabling them to process what they’re seeing in real time,” said David Goldschmidt, VP and MD at Samsung Catalyst Fund, in a statement. “By advancing deep learning at the edge, Allegro.AI will help companies in a diverse range of fields—from robotics to mobility—develop devices that are more intelligent, robust, and responsive to their environment. We’re particularly excited about this investment because, like Samsung, Allegro.AI is committed not just to developing this foundational technology, but also to building the open, collaborative ecosystem that is necessary to bring it to consumers in a meaningful way.”

Allegro.AI is not the first company with hopes of providing AI and deep learning as a service to the enterprise world: Element.AI out of Canada is another startup that is being built on the premise that most companies know they will need to consider how to use AI in their businesses, but lack the in-house expertise or budget (or both) to do that. Until the wider field matures and AI know-how becomes something anyone can buy off-the-shelf, it’s going to present an interesting opportunity for the likes of Allegro and others to step in.

 

 

 

Apr
24
2018
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Catalyst brothers find capital success with $2.4M from True

Over the past few years, the old language of “customer support” has been supplanted by the new language of “customer success.” In the old model, companies would essentially disappear following the conclusion of a sale, merely handling customer problems when they arose. Now, companies are actively reaching out to customers, engaging them with education and training and monitoring them with analytics to ensure they have the best time with the product as possible.

What’s changing is the nature of product and services today: subscription. Customers no longer just make a single buying decision about a product, but instead must actively commit to using the product, or else they churn.

New York-based Catalyst, founded by brothers Edward and Kevin Chiu, wants to rebuild customer success from the ground up with an integrated software platform. They have received some capital success of their own, securing $2.4 million in venture capital from Phil Black of True Ventures with participation from Ludlow Ventures and Compound.

New York has had something of an increase in founder mafias, as TechCrunch reported this weekend. Catalyst is no exception to this trend, with the Chiu brothers both working at DigitalOcean, one of New York’s many high-flying enterprise startups. Edward Chiu was director of customer success at the company for a number of years, but had a unique background in sales and also in coding before starting.

Kevin Chiu was head of inside sales at DigitalOcean . “I brought my brother on to do sales at DigitalOcean,” Edward Chiu explains. “We always knew that we wanted to start a company together, but wanted to see if we would kill each other.” The two worked together, and lo and behold, they didn’t kill each other.

Edward Chiu wanted to match the product experience of using DigitalOcean with the experience of using its internal customer success tools. Nothing on the market fit. “Given that DigitalOcean was a very technical product,” Chiu explained, “we decided to build our own tool.” Chiu thought of customer success at DigitalOcean as its own product, and his team built up the platform to improve its functionality and scalability. “We just used the tool and we loved it,” he said, so we “started to show this tool to a bunch of other customer success leaders I am connected with.”

Other customer success leaders said they wanted the platform, and “after the 20th person told me that,” he and his brother spun out of DigitalOcean to go on their own. Unlike enterprise startups in New York a couple of years ago that often struggled to find any investors, Catalyst found cash quickly. “Two weeks in we had more offers than we knew what to do with,” Chiu explained. The two said they had originally targeted a fundraise of $750,000, but ended up at $2.4 million.

Catalyst is a platform that integrates between a number of other major SaaS services such as Salesforce, Zendesk, Mixpanel and others to create a unified dashboard for data around customer success. From there, customer success managers have a set of automated tools to handle engagement, such as customer segmentation and email campaigns.

A major challenge in the customer success world is that these managers often don’t have the skills required to do advanced data analytics, so they often rely on their friends in engineering to run scripts or perform database lookups. The hope is that Catalyst’s feature set is powerful enough that these sorts of ad hoc tasks become a thing of the past. “Because we aggregate all this data, you can run queries,” Chiu explains.

Chiu says that Catalyst doesn’t just want to be a software platform, but rather a movement that pushes every company to think about how they can make their customers successful. “There are so many companies that are starting to understand that it is not something that you do once you raise a Series A, but something you do from day one,” Chiu said. “If you take care of your very first customer, they will constantly promote you and constantly promote your business.”

The company is based in Flatiron, and has eight employees.

Apr
17
2018
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Drift raises $60 million to be an Amazon for businesses

When you’re raising venture capital, it helps if you’ve had “exits.” In other words, if your company has been acquired or you’ve taken one public, investors are more inclined to take a bet on anything you do.

Boston -based serial entrepreneur David Cancel has sold not just one, but four companies.  And after a few years running product for HubSpot, he’s in the midst of building number five.

That startup, Drift, managed to raise $47 million in its first three years. Now it’s announcing another $60 million led by Sequoia Capital, with participation from existing investors CRV and General Catalyst. The valuation is undisclosed.

So what is Drift? It’s “changing the way businesses buy from businesses,” said Cancel. He wants to eventually build an alternative to Amazon to make it easier for companies to make large orders.

Currently, Drift subscribers can use chatbots to help turn web visits into sales. It has 100,000 clients including Zenefits, MongoDB, Zuora and AdRoll.

Drift “turns those conversations into customers,” Cancel explained. He said that technology is comparable to what is commonly used for customer service. It’s the “same messaging that was used for support, but used in the sales context.”

In the long-run, Cancel says he hopes Drift will expand its offerings to compete with Salesforce.

The company wouldn’t disclose revenue, but says it is ten times better compared to whatever it was in the past year. And it’s on track to grow another five times this year. This, of course, means little without hard numbers.

Yet we’re told that the new round means that Drift will have $90 million in the bank. It plans to use some of the funding to make acquisitions in voice and video technology. Drift also plans to expand its teams in both Boston and San Francisco, with new offices for both. The company presently has 130 employees.

 

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