Mar
24
2021
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Ketch raises $23M to automate privacy and data compliance

Ketch, a startup aiming to help businesses navigate the increasingly complex world of online privacy regulation and data compliance, is announcing that it has raised $23 million in Series A funding.

The company is also officially coming out of stealth. I actually wrote about Ketch’s free PrivacyGrader tool last year, but now it’s revealing the broader vision, as well as the products that businesses will actually be paying for.

The startup was founded by CEO Tom Chavez and CTO Vivek Vaidya. The pair previously founded Krux, a data management platform acquired by Salesforce in 2016, and Vaidya told me that Ketch is the answer to a question that they’d begun to ask themselves: “What kind of infrastructure can we build that will make our former selves better?”

Chavez said that Ketch is designed to help businesses automate the process of remaining compliant with data regulations, wherever their visitors and customers are. He suggested that with geographically specific regulations like Europe’s GDPR in place, there’s a temptation to comply globally with the most stringent rules, but that’s not necessary or desirable.

“It’s possible to use data to grow and to comply with the regulations,” Chavez said. “One of our customers turned off digital marketing completely in order to comply. This has got to stop […] They are a very responsible customer, but they didn’t know there are tools to navigate this complexity.”

Ketch orchestration screenshot

Image Credits: Ketch

The pair also suggested that things are even more complex than you might think, because true compliance means going beyond the “Hollywood façade” of a privacy banner — it requires actually implementing a customer’s requests across multiple platforms. For example, Vaidya said that when someone unsubscribes to your email list, there’s “a complex workflow that needs to be executed to ensure that the email is not going to continue … and make sure the customer’s choices are respected in a timely manner.”

After all, Chavez noted, if a customer tells you, “I want to delete my data,” and yet they keep getting marketing emails or targeted ads, they’re not going to be satisfied if you say, “Well, I’ve handled that in the four walls of my own business, that’s an issue with my marketing and email partners.”

Chavez also said that Ketch isn’t designed to replace any of a business’ existing marketing and customer data tools, but rather to “allow our customers to configure how they want to comply vis-à-vis what jurisdiction they’re operating in.” For example, the funding announcement includes a statement from Patreon’s legal counsel Priya Sanger describing Ketch as “an easily configurable consent management and orchestration system that was able to be deployed internationally” that “required minimal engineering time to integrate into our systems.”

As for the Series A, it comes from CRV, super{set} (the startup studio founded by Chavez and Vaidya), Ridge Ventures, Acrew Capital and Silicon Valley Bank. CRV’s Izhar Armony and Acrew’s Theresia Gouw are joining Ketch’s board of directors.

And if you’d like to learn more about the product, Ketch is hosting a webinar at 11am Pacific today.

Mar
02
2021
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Parabol raises $8M after reaching 100,000 users of its agile meeting software

This morning Parabol, a startup that provides retrospective meeting software to agile development teams, announced that it has closed an $8 million Series A. Microsoft’s venture capital arm, M12, led the deal. The investment also saw participation from Techstars, CRV, and Haystack.

TechCrunch caught up with Parabol CEO Jordan Husney to talk about the round, and his company. We were curious how large the market that Parabol serves is, and if the company was overly-nicheing its service. While the startup is still young, the answer appears to be no – adding to our general sentiment that the software market is even larger than we perhaps thought.

Let’s explore how Parabol came to be, and how it came to pick its target market. Or more precisely, how its target market chose it.

Building horizontally, focusing vertically

After a stint in the consulting world, Husney was more than aware of the communications issues that distributed teams can endure. With multiple offices the norm among big companies, he told TechCrunch in an interview, communications between remote workers came down to an email thread, or a meeting. A self-described “recovering engineer,” Husney wondered if there was space in the business market for “structured communications,” or the type of asynchronous meetings that are popular in the code-writing world.

Borrowing from the ethos of agile development, a method of writing software that prioritizes collaboration and evolution over process and documentation, Husney built Parabol to bring agile work and communications methods to non-developer business teams. If agile principles were good at helping foster developer results through status meetings, why wouldn’t the same process translate to other work settings?

But the market had other ideas. Instead of hitting it big in the business world, owing to the friction resulting from needing what Husney described as a “behavior change” — something often lethal to rapid adoption of a new service, or product — agile teams themselves started using Parabol’s tech.

The startup followed the demand. And there’s quite a lot of it, as it turns out. Husney estimated that there are around 20 million agile developers in the world, the business from which has helped propel companies like Atlassian to enormous heights. It’s a big enough pool for the startup to swim in for a long time.

Returning to our earlier note about the depth of the software market, Parabol is a good reference point. It appears capable of building a real company on the back of supporting a subset of the software creation world’s peculiar meeting style; the market for software is simply gigantic.

Growth

After deciding to support agile software teams, growth came quickly to Parabol. In 2018 and 2019, the company saw growth of 20% to 40% each month, its CEO said. Calling his company a “rocket,” Husney gave partial credit to Parabol’s freemium go-to-market model, a common approach when selling to developers who eschew the traditional sales process.

By selling to the already-converted, Parabol found product-market fit. Husney himself had underestimated the demand from agile software developers for tools to support they work, because he thought that they’d already figured out their own needs, he told TechCrunch.

What Parabol has built is not a simple tool, however. Powering retrospective meetings and incident post-mortems, its software collects notes from workers on things that should be done, things that should no longer done, and things that should be kept up. The service then aggregates them automatically by topic, followed by users voting to decide on changes and takeaway actions. The result is an asynchronous way for developer teams to stay in sync.

The startup closed a Seed round in November of 2019, just in time to have cash on hand for the COVID-19 pandemic. The rapid switch to remote work quickly drove Parabol’s user growth from 600 per week in January of 2020, to 5,000 per week in March of the same year. The company has some public usage data available here, in case you want to check the spike yourself.

After raising its $4 million Seed, Husney decided to raise more capital after being told by others that it was a great time to do so. And after winding up with a few firms to choose between, wound up taking Microsoft’s money.

There’s a story there. Per Husney, Microsoft’s M12 was not on the top of its venture capital list; there is a somewhat good reason for that, as taking strategic capital over pure-venture capital is a choice and not the best one for every startup. But after Husney and company got to know the Microsoft partners, and each side underwent diligence, the fit became clear. According to the CEO, M12’s investing team called various Microsoft groups — Azure, GitHub, etc — to ask them about their views on Parabol. They raved. So Microsoft had strong internal signals concerning the deal, and Parabol learned that its potential investor was a heavy user of its product.

The deal worked out.

Why $8 million and not more? The startup’s growth plan isn’t super capital intensive according to Husney, and its market is pulling it instead of the other way around. The team is dilution-conscious as well, he explained. The founding team put the company together in 2015, and didn’t raise its seed round until 2019. It was ramen days back then, he explained; you’ll cling to your ownership, I suppose, when you have bought it that dearly.

Parabol runs lean on purpose. Husney said that his team was not following the Reid Hoffman blitzscaling ethos, instead focusing on hiring for individual leverage. In the CEO’s view, you don’t need to scale quickly to build collaboration products.

The $8 million raise could give Parabol infinite runway, the CEO said, but his company instead raised it for about a 24 month spend. At the end of that he expects the company to have around 30 workers, up from its current 10.

Parabol wants to quadruple its revenues this year, and triple them in 2022. And it wants to scale to 500,000 users from its current 100,000 this year, reaching one million by the end of next year. Let’s see how it performs against those goals.

Feb
10
2021
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Nobl9 raises $21M Series B for its SLO management platform

SLAs, SLOs, SLIs. If there’s one thing everybody in the business of managing software development loves, it’s acronyms. And while everyone probably knows what a Service Level Agreement (SLA) is, Service Level Objectives (SLOs) and Service Level Indicators (SLIs) may not be quite as well known. The idea, though, is straightforward, with SLOs being the overall goals a team must hit to meet the promises of its SLA agreements, and SLIs being the actual measurements that back up those other two numbers. With the advent of DevOps, these ideas, which are typically part of a company’s overall Site Reliability Engineering (SRE) efforts, are becoming more mainstream, but putting them into practice isn’t always straightforward.

Nobl9 aims to provide enterprises with the tools they need to build SLO-centric operations and the right feedback loops inside an organization to help it hit its SLOs without making too many trade-offs between the cost of engineering, feature development and reliability.

The company today announced that it has raised a $21 million Series B round led by its Series A investors Battery Ventures and CRV. In addition, Series A investors Bonfire Ventures and Resolute Ventures also participated, together with new investors Harmony Partners and Sorenson Ventures.

Before starting Nobl9, co-founders Marcin Kurc (CEO) and Brian Singer (CPO) spent time together at Orbitera, where Singer was the co-founder and COO and Kurc the CEO, and then at Google Cloud, after it acquired Orbitera in 2016. In the process, the team got to work with and appreciate Google’s site reliability engineering frameworks.

As they started looking into what to do next, that experience led them to look into productizing these ideas. “We came to this conclusion that if you’re going into Kubernetes, into service-based applications and modern architectures, there’s really no better way to run that than SRE,” Kurc told me. “And when we started looking at this, naturally SRE is a complete framework, there are processes. We started looking at elements of SRE and we agreed that SLO — service level objectives — is really the foundational part. You can’t do SRE without SLOs.”

As Singer noted, in order to adopt SLOs, businesses have to know how to turn the data they have about the reliability of their services, which could be measured in uptime or latency, for example, into the right objectives. That’s complicated by the fact that this data could live in a variety of databases and logs, but the real question is how to define the right SLOs for any given organization based on this data.

“When you go into the conversation with an organization about what their goals are with respect to reliability and how they start to think about understanding if there’s risks to that, they very quickly get bogged down in how are we going to get this data or that data and instrument this or instrument that,” Singer said. “What we’ve done is we’ve built a platform that essentially takes that as the problem that we’re solving. So no matter where the data lives and in what format it lives, we want to be able to reduce it to very simply an error budget and an objective that can be tracked and measured and reported on.”

The company’s platform launched into general availability last week, after a beta that started last year. Early customers include Brex and Adobe.

As Kurc told me, the team actually thinks of this new funding round as a Series A round, but because its $7.5 million Series A was pretty sizable, they decided to call it a Series A instead of a seed round. “It’s hard to define it. If you define it based on a revenue milestone, we’re pre-revenue, we just launched the GA product,” Singer told me. “But I think just in terms of the maturity of the product and the company, I would put us at the [Series] B.”

The team told me that it closed the round at the end of last November, and while it considered pitching new VCs, its existing investors were already interested in putting more money into the company and since its previous round had been oversubscribed, they decided to add to this new round some of the investors that didn’t make the cut for the Series A.

The company plans to use the new funding to advance its roadmap and expand its team, especially across sales, marketing and customer success.

May
05
2020
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Sleuth raises $3M Seed to bring order to continuous deployment

Sleuth, an early stage startup from three former Atlassian employees, wants to bring some much-needed order to the continuous delivery process. Today, the company announced it has raised a $3 million seed round.

?CRV led the round with participation from angel investors from New Relic, Atlassian and LaunchDarkly.

“Sleuth is a deployment tracker built to solve the confusion that comes when companies have adopted continuous delivery,” says CEO and co-founder Dylan Etkin. The company’s founders recognized that more and more companies were making the move to continuous delivery deployment, and they wanted to make it easier to track those deployments and figure out where the bottle necks were.

He says that typically, on any given DevOps team, there are perhaps two or three people who know how the entire system works, and with more people spread out now, it’s more important than ever that everyone has that capability. Etkin says Sleuth lets everyone on the team understand the underlying complexity of the delivery system with the goal of helping them understand the impact of a given change they made.

“Sleuth is trying to make that better by targeting the developer and really giving them a communications platform, so that they can discuss the [tools] and understand what is changing and who has changed what. And then more importantly, what is the impact of my change,” he explained.

Image Credit: Sleuth

The company was founded by three former Atlassian alumni — Ektin along with Michael Knighten and Don Brown — all of whom were among the first 50 employees at the now tremendously successful development tools company.

That kind of pedigree tends to get the attention of investors like CRV, but it is also telling that three companies including their former employer saw enough potential here to invest in the company, and be using the product.

Etkin recognizes this is a tricky time to launch an early-stage startup. He said that when he first entered the lock down, his inclination was to hunker down, but they concluded that their tool would have even greater utility at the moment. “The founders took stock and we were always building a tool that was great for remote teams and collaboration in general, and that hasn’t changed… if anything, I think it’s becoming more important right now.”

The company plans to spend the next 6-9 months refining the product, adding a few folks to the five person team and finding product-market fit. There is never an ideal time to start a company, but Sleuth believes now is its moment. It may not be easy, but they are taking a shot.

Feb
05
2020
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Where top VCs are investing in open source and dev tools (Part 1 of 2)

The once-polarizing world of open-source software has recently become one of the hotter destinations for VCs.

As the popularity of open source increases among organizations and developers, startups in the space have reached new heights and monstrous valuations.

Over the past several years, we’ve seen surging open-source companies like Databricks reach unicorn status, as well as VCs who cashed out behind a serious number of exits involving open-source and dev tool companies, deals like IBM’s Red Hat acquisition or Elastic’s late-2018 IPO. Last year, the exit spree continued with transactions like F5 Networks’ acquisition of NGINX and a number of high-profile acquisitions from mainstays like Microsoft and GitHub.

Similarly, venture investment in new startups in the space has continued to swell. More investors are taking shots at finding the next big payout, with annual invested capital in open-source and dev tool startups increasing at a roughly 10% compounded annual growth rate (CAGR) over the last five years, according to data from Crunchbase. Furthermore, attractive returns in the space seem to be adding more fuel to the fire, as open-source and dev tool startups saw more than $2 billion invested in the space in 2019 alone, per Crunchbase data.

As we close out another strong year for innovation and venture investing in the sector, we asked 18 of the top open-source-focused VCs who work at firms spanning early to growth stages to share what’s exciting them most and where they see opportunities. For purposes of length and clarity, responses have been edited and split (in no particular order) into part one and part two of this survey. In part one of our survey, we hear from:

Sep
24
2019
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Meme editor Kapwing grows 10X, raises $11M

Kapwing is a laymen’s Adobe Creative Suite built for what people actually do on the internet: make memes and remix media. Need to resize a video? Add text or subtitles to a video? Trim or crop or loop or frame or rotate or soundtrack or… then you need Kapwing. The free web and mobile tool is built for everyone, not just designers. No software download or tutorials to slog through. Just efficient creativity.

Kapwing Video Editor

In a year since coming out of stealth with 100,000 users, Kapwing has grown 10X, to more than 1 million. Now it going pro, building out its $20/month collaboration tools for social media managers and scrappy teams. But it won’t forget its roots with teens, so it has dropped its pay-$6-to-remove-watermarks tier while keeping its core features free.

Eager to capitalize on the meme and mobile content business, CRV has just led an $11 million Series A round for Kapwing. It’s joined by follow-on cash from Village Global, Sinai and Shasta Ventures, plus new investors Jane VC, Harry Stebbings, Vector and the Xoogler Syndicate. CRV partners “the venture twins” Justine and Olivia Moore actually met Kapwing co-founder and CEO Julia Enthoven while they all worked at The Stanford Daily newspaper in 2012.

“As a team, we love memes. We talk about internet fads almost every day at lunch and pay close attention to digital media trends,” says Enthoven, who started the company with fellow Googler Eric Lu. “One of our cultural tenets is to respect the importance of design, art and culture in the world, and another one is to not take ourselves too seriously.” But it is taking on serious clients.

As Kapwing’s toolset has grown, it has seen paying customers coming from Amazon, Sony, Netflix and Spotify. Now only 13% of what’s made with it are traditional text-plus-media memes. “Kapwing will always be designed for creators first: the students, artists, influencers, entrepreneurs, etc. who define and spread culture,” says Enthoven. “But we make money from the creative professionals, marketers, media teams and office workers who need to create content for work.”

Kapwing Tools

That’s why in addition to plenty of templates for employing the latest trending memes, Kapwing now helps Pro subscribers with permanent hosting, saving throughout the creation process and re-editing after export. Eventually it plans to sell enterprise licenses to let whole companies use Kapwing.

Kapwing Tools 1

Copycats are trying to chip away at its business, but Kapwing will use its new funding to keep up a breakneck pace of development. Pronounced “Ka-Pwing,” like a bullet ricochet, it’s trying to stay ahead of Imgflip, ILoveIMG, Imgur’s on-site tool and more robust apps like Canva.

If you’ve ever been stuck with a landscape video that won’t fit in an Instagram Story, a bunch of clips you want to stitch together or the need to subtitle something for accessibility, you’ll know the frustration of lacking a purpose-built tool. And if you’re on mobile, there are even fewer options. Unlike some software suites you have to install on a desktop, Kapwing works right from a browser.

Trending Memes Kapwing

” ‘Memes’ is such a broad category of media nowadays. It could refer to a compilation like the political singalong videos, animations like Shooting Star memes or a change in music like the AOC Dancing memes,” Enthoven explains. “Although they used to be edgy, memes have become more mainstream . . . Memes popularized new types of multimedia formats and made raw, authentic footage more acceptable on social media.”

As communication continues to shift from text to visual media, design can’t only be the domain of designers. Kapwing empowers anyone to storytell and entertain, whether out of whimsy or professional necessity. If big-name creative software from Adobe or Apple don’t simplify and offer easy paths through common use cases, they’ll see themselves usurped by the tools of the people.

Mar
15
2018
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Airtable raises $52M to give non-coders tools to build complex software

A massive company probably has plenty of engineers on staff and the resources to build a complex backbone of interconnected information that can contain tons of data and make acting on it easy — but for smaller companies, and for those that aren’t technical, those tools aren’t very accessible.

That’s what convinced Howie Liu to create Airtable, a startup that looks to turn what seems like just a normal spreadsheet into a robust database tool, hiding the complexity of what’s happening in the background while those without any programming experience create intricate systems to get their work done. Today, they’re trying to take that one step further with a new tool called Blocks, a set of mix-and-match operations like SMS and integrating maps that users can just drop into their systems. Think of it as a way to give a small business owner with a non-technical background to meticulously track all the performance activity across, say, a network of food trucks by just entering a bunch of dollar values and dropping in one of these tools.

“We really want to take this power you have in software creation and ‘consumerize’ that into a form anyone can use,” Liu said. “At the same time, from a business standpoint, we saw this bigger opportunity underneath the low-code app platforms in general. Those platforms solve the needs of heavyweight expensive use cases where you have a budget and have a lot of time. I would position Airtable making a leap toward a graphical user interface, versus a lot of products that are admin driven.”

Liu said the company has raised an additional $52 million in financing in a round led by CRV and Caffeinated Capital, with participation from Freestyle Ventures and Slow Ventures. All this is going toward a way to build a system that is trying to abstract out even the process of programming itself, though there’s always going to be some limited scope as to how custom of a system you can actually make with what amounts to a set of logic operation legos. That being said, the goal here is to boil down all of the most common sets of operations with the long tail left to the average programmers (and larger enterprises often have these kinds of highly-customized needs).

All this is coming at a time when businesses are increasingly chasing the long tail of small- to medium-sized businesses, the ones that aren’t really on the grid but represent a massive market opportunity. Those businesses also probably don’t have the kinds of resources to hire engineers while companies like Google or Facebook are camping out on college campuses looking to snap up students graduating with technical majors. That’s part of the reason why Excel had become so popular trying to abstract out a lot of complex operations necessary to run a business, but at the same time, Liu said that kind of philosophy should be able to be taken a step further.

“If you look at cloud, you have Amazon’s [cloud infrastructure] EC2, which abstracted the hardware level and you can build on existing machine intelligence,” Liu said. “Then, you get the OS level and up. Containers, Heroku, and other tools have extracted away the operation level complexity. But you have to write the app and modal logic. Our goal is to go a big leap forward on top of that and abstract out the app code layer. You should be able to directly use our interface, and blocks, all these plug and play lego pieces that give you more dynamic functionality — whether a map view or an integration with Twilio.”

And, really, all these platforms like Twilio have tried to make themselves pretty friendly to coding beginners as-is. Twilio has a lot of really good documentation for first-time developers to learn to use their platforms. But Airtable hopes to serve as a way to interconnect all these things in a complex web, creating a relational database behind the scenes that users can operate on in a more simplistic matter that’s still accurate, fast, and reliable.

“Obviously MySQL is great if you want to use code or custom SQL queries to interface with the data,” Liu said. “But, ultimately, you’d never as a business end user consider using literally a terminal-based SQL prompt as the primary interface to and from your data. Certainly you wouldn’t put that on your designs. Clearly you would want some interface on top of the SQL level database. We basically expose the full value of a relational database like Postgres to the end user, but we also give them something equally but more important: the interface on the top that makes the data immediately visible.”

There’s been a lot of activity trying to rethink these sort of fundamental formats that the average user is used to, but are ripe for more flexibility. Coda, a startup trying to rethink the notion behind a word document, raised $60 million, and all this points towards moves to try to create a more robust toolkit for non-technical users. That also means that it’s going to be an increasingly hot space, and especially look like an opportunity for companies that are already looking to host these kinds of services online like Amazon or Microsoft and have the buy-in from those businesses.

Liu, too, said that the goal of the company was to go after all potential business cases right away by creating a what-you-see-is-what-you-get one size fits all platform — which is usually called a horizontal approach. That’s often a very risky move, and it’s probably the biggest question mark for the company as there’s an opportunity for some other startups or companies to come in and grab niches of that whole pie in specific areas (like, say, a custom GUI programming interface for healthcare). But Liu said the opportunity for Airtable was to go horizontal from day one.

“There’s this assumption that software has to involve literally writing code,” Liu said. “It’s sort of a difficult thing to extricate ourselves from because we have built so much with writing code. But when you think about what goes into a useful application, especially in the business-to-business internal tools in a company use case which forms the bulk of software that’s consumed in terms of lines of code written, most of them are primarily a relational database model, and the relational database aspect of it is not an arbitrary format.

Feb
06
2018
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Mayfield joins Velocity Network to connect enterprise startups with NYC execs

 Last year two venture capital firms, General Catalyst and CRV, launched a program called the Velocity Network to get their startups in front of Fortune 500 executives in New York City. Today they announced that Mayfield has joined as the third VC firm in the network.
New York is home to financial, insurance, security, retail, media, and other Fortune 500 companies — the very types of… Read More

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