Apr
16
2019
--

Why it just might make sense that Salesforce.com is buying Salesforce.org

Yesterday, Salesforce .com announced its intent to buy its own educational/nonprofit arm, Salesforce.org, for $300 million. On its face, this feels like a confusing turn of events, but industry experts say it’s really about aligning educational and nonprofit verticals across the entire organization.

Salesforce has always made a lot of hay about being a responsible capitalist. It’s something it highlights at events and really extends with the 1-1-1 model it created, which gives one percent of profit, time and resources (product) to education and nonprofits. Its employees are given time off and are encouraged to work in the community. Salesforce.org has been the driver behind this, but something drove the company to bring Salesforce.org into the fold.

While it’s easy to be cynical about the possible motivations, it could be a simple business reason, says Ray Wang, founder and principal analyst at Constellation Research. As he pointed out, it didn’t make a lot of sense from a business perspective to be running two separate entities with separate executive teams, bookkeeping systems and sales teams. What’s more, he said there was some confusion over lack of alignment and messaging between the Salesforce.com education sales team and what was happening at Salesforce.org. Finally, he says because Salesforce.org couldn’t issue Salesforce.com stock options, it might not have been attracting the best talent.

“It allows them to get better people and talent, and it’s also eliminating redundancies with the education vertical. That was really the big driver behind this,” Wang told TechCrunch.

Tony Byrne, founder and principal analyst at Real Story Group agreed. “My guess is that they were struggling to align roadmaps between the offerings (.com and .org), and they see .org as more strategic now and want to make sure they’re in the fold,” he said.

Focusing on the charity arm

Brent Leary, principal and co-founder at CRM Essentials, says it’s also about keeping that charitable focus front and center, while pulling that revenue into the Salesforce.com revenue stream. “It seems like doing good is set to be really good for business, making it a potentially very good idea to be included as part of Salesforce’s top line revenue numbers, Leary said.

For many, this was simply about keeping up with Microsoft and Google in the nonprofit space, and being part of Salesforce.com makes more sense in terms of competing. “I believe Salesforce’s move to bring Salesforce.org in house was a well-timed strategic move to have greater influence on the company’s endeavors into the Not for Profit (NFP) space. In the wake of Microsoft’s announcements of significantly revamping and adding resources to its Dynamics 365 Nonprofit Accelerator, Salesforce would be well-served to also show greater commitment on their end to helping NFPs acquire greater access to technologies that enable them to carry out their mission,” Daniel Newman, founder and principal analyst at Futurum Research, said.

Good or bad idea?

But not everyone sees this move in a positive light. Patrick Moorhead, principal analyst and founder at Moor Insights and Strategies, says it could end up being a public relations nightmare for Salesforce if the general public doesn’t understand the move. Salesforce could exacerbate that perception if it ends up raising prices for nonprofits and education.

“Salesforce and Benioff’s move with Salesforce.org is a big risk and could blow up in its face. The degree of negative reaction will be dependent on how large the price hikes are and how much earnings get diluted. We won’t know that until more details are released,” Moorhead said.

The deal is still in progress, and will take some months to close, but if it’s simply an administrative move designed to create greater efficiencies, it could make sense. The real question that remains is how this will affect educational and nonprofit institutions as the company combines Salesforce.org and Salesforce.com.

Salesforce did not wish to comment for this story.

Apr
16
2019
--

Salesforce ‘acquires’ Salesforce.org for $300M in a wider refocus on the nonprofit sector

Salesforce yesterday announced a move to reposition how it provides software to and works with nonprofits like educational institutions and charities: the company announced that it would integrate Salesforce.org — which had been a reseller of Salesforce software and services to the nonprofit sector — into Salesforce itself as part of a larger, new nonprofit and education vertical. The new vertical, in turn, will be led by Rob Acker, the current CEO of Salesforce.org.

As part of the deal, Salesforce said it would pay $300 million in cash for all shares of Salesforce.org. The latter had existed as a California public benefit corporation, and now it will be converting into a California business corporation.

Salesforce said that the $300 million, in turn, will be distributed to another independent public benefit corporation called the Salesforce.com Foundation, which will use it for philanthropic purposes. Salesforce will be making further contributions to the Foundation, but did not specify the amount.

Salesforce also said that the combination will add between about $150 million and $200 million to the company’s full-year revenues, depending on when the deal closes.

Salesforce.org had been a vehicle for the company to provide nonprofits, educational institutions and philanthropic organizations free or very discounted licenses to use its software, to the tune of some $260 million in grants distributed to over 40,000 organizations. Salesforce will continue that practice, but now that effort, it seems, will come in line with a bigger business operation in which Salesforce will also develop and sell commercial software and services as well.

“Combining Salesforce and Salesforce.org into a new nonprofit and education vertical reinforces the strength of Salesforce’s philanthropic model,” the company notes. “Salesforce will extend this model by continuing to provide free and highly discounted software to nonprofits and education institutions around the world and investing in local communities through employee volunteering, strategic grants and matching employee giving up to $5,000 per employee annually.”

The new organization will include sales, marketing and the company’s Salesforce Customer Success Platform tailored for the nonprofit and education communities, and all future development of the company’s Nonprofit Cloud, Education Cloud and Philanthropy Cloud vertical applications.

Education, nonprofits and philanthropy might not be the most lucrative sectors that come to mind when you think of enterprise IT, but by virtue of their sheer size and ubiquity, and the fact that these organizations also very much need better technology to operate more efficiently, there is a big opportunity.

Some of that will firmly never catapult into the world of big money — and nor should it, in my opinion — but as Newsela and its backer TCV, and Microsoft, identified recently, schools are still big buyers of IT, and the same goes for other nonprofit and philanthropic organizations.

I’m not sure how Salesforce will bring the different sides of the business together, but it makes sense for the company to at least think of them in a more cohesive way, providing financial help where it’s needed and selling where it is not.

Salesforce said that it expects the deal to close in Q2 or Q3 of this year, pending approval from the Attorney General of California and “other customary closing conditions.”

Apr
08
2019
--

Online university degree provider 2U acquires Trilogy for $750M to expand into tech bootcamps and training

As more universities turn to offering online degrees to expand their student bodies by way of cyberspace, one of the pioneers in enabling that trend has made an acquisition to expand into new territory around skills training and continuing education. 2U, which helps build online degree programs for a number of top universities, is paying $750 million to acquire Trilogy Education, which creates online and in-person “boot camps” — continuing education programs — in collaboration with universities to train those already in the workforce with tech skills in areas like coding, data analytics, UX/UI and cybersecurity.

The deal, which is expected to close in the next 60 days, is coming in a combination of cash and shares — $400 million in cash and $350 million in newly issued shares of 2U common stock — the company said. It’s a decent exit for Trilogy, which was valued at $545 million (according to PitchBook) when it raised $50 million in June 2018. Its investors include Highland Capital, Macquarie and Exceed, among others.

2U, meanwhile, has a market cap of $3.85 billion and is publicly traded on Nasdaq.

The acquisition helps 2U consolidate its university footprint, which will get bumped up to 68 from its previous 36. And it presents an obvious opportunity to up-sell and cross-sell: those who are already jumping into building degree programs can diversify into more skills training, while those who have yet to build full degree services but have created skills training programs now might consider how to parlay that experience into degrees — all from one provider, 2U. This also opens more generally a bigger window for 2U to expand into the continuing education market, which it estimates is worth some $366 billion.

It also helps it better compete with other companies that have already built a dual-track approach to online education, building degrees as well as short courses, like Coursera (Udacity and Udemy are among those that have focused on further education).

“[Trilogy Education] is a natural strategic fit and growth driver for 2U that will extend our reach across the career curriculum continuum, deepen our relationships with new and existing partners, drive marketing efficiencies, and open a more direct corporate training and enterprise sales channel for the company. We expect the addition of Trilogy to accelerate our path to $1 billion in revenue by one year from 2022 to 2021,” 2U co-founder and CEO Christopher “Chip” Paucek said in a statement. ?“Increasingly, universities are attempting to add practical, technical skills to their degrees. We simply future-proof the degree by adding this type of technical competency.”

The presence of commercial companies building educational courses for nonprofit universities, and taking a cut in the process, has seen more than a little controversy. The business spin that is put on education through these programs not only calls into question how and what schools (and their partners) prioritise in the curriculum, but they raise issues around how higher education is priced, and who profits from these degrees — which sometimes can still cost more than $60,000, despite no physical time in classrooms. (There is an excellent dive into the issue here in the Huffington Post, featuring an interview with the co-founder of 2U, John Katzman, who also founded the Princeton Review.)

To be fair, some of the issues around higher education — such as the exorbitantly high cost in some countries, and the fact that it still feels like a largely elitist endeavor with the odds of students gaining acceptance and achieving in top universities still in favor of too-small a privileged subset of families — cannot be completely tied to the development of online learning courses powered by for-profit companies.

And you could also argue that this was bound to be the next step, given how technology has evolved across all of education, and the fact that edtech is not a core competency for many institutions.

One of the potential positives that comes out of online degree programs is that it gives opportunities to a much wider group of would-be students, and mass market is something that Trilogy knows: it has to date already provided courses for 20,000 people and 1,200 instructors across 120 programs, it says, with an emphasis on practical skills to bring up local workforces, and working with universities to build these courses and connecting with big companies — customers include Google, Microsoft and Bank of America — to deliver them.

“By joining forces with 2U, Trilogy Education can empower universities to reach more students, in more places, throughout more of their lives, while driving positive economic ?impact in their local regions,” Trilogy Education CEO and founder Dan Sommer said in a statement. “Trilogy and 2U share a belief that universities are critical to lifelong learning and to meeting the workforce development needs of local economies both domestically and internationally, and we’re proud to further our mission and continue this important work as part of the 2U family.

Mar
19
2019
--

The top 10 startups from Y Combinator W19 Demo Day 1

Electric-vehicle chargers, heads-up displays for soldiers and the Costco of weed were some of our favorites from prestigious startup accelerator Y Combinator’s Winter 2019 Demo Day 1. If you want to take the pulse of Silicon Valley, YC is the place to be. But with more than 200 startups presenting across two stages and two days, it’s tough to keep track.

You can check out our write-ups of all 85 startups that launched on Demo Day 1, and come back later for our full index and picks from Day 2. But now, based on feedback from top investors and TechCrunch’s team, here’s our selection of the top 10 companies from the first half of this Y Combinator batch, and why we picked each.

Ravn

Looking around corners is one of the most dangerous parts of war for infantry. Ravn builds heads-up displays that let soldiers and law enforcement see around corners thanks to cameras on their gun, drones or elsewhere. The ability to see the enemy while still being behind cover saves lives, and Ravn already has $490,000 in Navy and Air Force contracts. With a CEO who was a Navy Seal who went on to study computer science, plus experts in augmented reality and selling hardware to the Department of Defense, Ravn could deliver the inevitable future of soldier heads-up displays.

Why we picked Ravn: The AR battlefield is inevitable, but right now Microsoft’s HoloLens team is focused on providing mid-fight information, like how many bullets a soldier has in their clip and where their squad mates are. Ravn’s tech was built by a guy who watched the tragic consequences of getting into those shootouts. He wants to help soldiers avoid or win these battles before they get dangerous, and his team includes an expert in selling hardened tech to the U.S. government.

Middesk

It’s difficult to know if a business’ partners have paid their taxes, filed for bankruptcy or are involved in lawsuits. That leads businesses to write off $120 billion a year in uncollectable bad debt. Middesk does due diligence to sort out good businesses from the bad to provide assurance for B2B deals, loans, investments, acquisitions and more. By giving clients the confidence that they’ll be paid, Middesk could insert itself into a wide array of transactions.

Why we picked Middesk: It’s building the trust layer for the business world that could weave its way into practically every deal. More data means making fewer stupid decisions, and Middesk could put an end to putting faith in questionable partners.

Convictional

Convictional helps direct-to-consumer companies approach larger retailers more simply. It takes a lot of time for a supplier to build a relationship with a retailer and start selling their products. Convictional wants to speed things up by building a B2B self-service commerce platform that allows retailers to easily approach brands and make orders.

Why we picked Convictional: There’s been an explosion of D2C businesses selling everything from suitcases to shaving kits. But to drive exposure and scale, they need retail partners who’re eager not to be cut out of this growing commerce segment. Playing middleman could put Convictional in a lucrative position, while also making it a nexus of valuable shopping data.

Dyneti Technologies

Dyneti has invented a credit card scanner SDK that uses a smartphone’s camera to help prevent fraud by more than 50 percent and improve conversion for businesses by 5 percent. The business was started by a pair of former Uber employees, including CEO Julia Zheng, who launched the fraud analytics teams for Account Security and UberEATS. Dyneti’s service is powered by deep learning and works on any card format. In the two months since it launched, the company has signed contracts with Rappi, Gametime and others.

Why we picked Dyneti: Cybersecurity threats are growing and evolving, yet underequipped businesses are eager to do more business online. Dyneti is one of those fundamental B2B businesses that feels like Stripe — capable of bringing simplicity and trust to a complex problem so companies can focus on their product.

AmpUp

The “Airbnb for electric-vehicle chargers,” ampUp is preparing for a world in which the majority of us drive EVs — it operates a mobile app that connects a network of thousands of EV chargers and drivers. Using the app, an electric-vehicle owner can quickly identify an available and compatible charger, and EV charger owners can earn cash sharing their charger at their own price and their own schedule. The service is currently live in the Bay Area.

Why we picked ampUp: Electric vehicles are inevitable, but reliable charging is one of the leading fears dissuading people from buying. Rather than build out some massive owned network of chargers that will never match the distributed gas station network, ampUp could put an EV charger anywhere there’s someone looking to make a few bucks.

Flockjay

Flockjay operates an online sales academy that teaches job seekers from underrepresented backgrounds the skills and training they need to pursue a career in tech sales. The 12-week bootcamp offers trainees coaching and mentorship. The company has launched its debut cohort with 17 students, 100 percent of whom are already in job interviews and 40 percent of whom have already secured new careers in the tech industry.

Why we picked Flockjay: Unlike coding bootcamps that can require intense prerequisites, killer salespeople can be molded from anyone with hustle. Those from underrepresented backgrounds already know how to expertly sell themselves to attain opportunities others take for granted. Flockjay could provide economic mobility at a crucial juncture when job security is shaky.

Deel

Twenty million international contractors work with U.S. companies, but it’s difficult to onboard and train them. Deel handles the contracts, payments and taxes in one interface to eliminate paperwork and wasted time. Deel charges businesses $10 per contractor per month and a 1 percent fee on payouts, which earns it an average of $560 per contractor per year.

Why we picked Deel: The destigmatization of remote work is opening new recruiting opportunities abroad for U.S. businesses. But unless teams can properly integrate these distant staffers, the cost savings of hiring overseas are negated. As the globalization megatrend continues, businesses will need better HR tools.

Glide

There has been a pretty major trend toward services that make it easier to build web pages or mobile apps. Glide lets customers easily create well-designed mobile apps from Google Sheets pages. This not only makes it easy to build the pages, but simplifies the skills needed to keep information updated on the site.

Why we picked Glide: While desktop website makers is a brutally competitive market, it’s still not easy to make a mobile site if you’re not a coder. Rather than starting from a visual layout tool with which many people would still be unfamiliar, Glide starts with a spreadsheet that almost everyone has used. And as the web begins to feel less personal with all the brands and influencers, Glide could help people make bespoke apps that put intimacy and personality first.

Docucharm

The platform, co-founded by former Uber product manager Minh Tri Pham, turns documents into structured data a computer can understand to accurately automate document processing workflows and take away the need for human data entry. Docucharm’s API can understand various forms of documents (like paystubs, for example) and will extract the necessary information without error. Its customers include tax prep company Tributi and lending business Aspire.

Why we picked Docucharm: Paying high-priced, high-skilled workers to do data entry is a huge waste. And optical character recognition like Docucharm’s will unlock new types of businesses based on data extraction. This startup could be the AI layer underneath it all.

Flower Co

Flower Co provides memberships for cheaper weed sales and delivery. Most dispensaries cater to high-end customers and newbies that want expensive products and tons of hand-holding. In contrast, Flower Co caters to long-time marijuana enthusiasts who want huge quantities at low prices. They’re currently selling $200.000 in marijuana per month to 700 members. They charge $100 a year for membership, and take 10 percent on product sales.

Why we picked Flower Co: Marijuana is the next gold rush, a once-in-a-generation land-grab opportunity. Yet most marijuana merchants have focused on hyper-discerning high-end customers despite the long-standing popularity of smoking big blunts of cheap weed with a bunch of friends. For those who want to make cannabis consumption a lifestyle, and there will be plenty, Flower Co could become their wholesaler.

Honorable Mentions

Atomic Alchemy – Filling the shortage of nuclear medicine

Yourchoice – Omni-gender non-hormonal birth control

Prometheus – Turning CO2 into gas

Lumos – Medical search engine for doctors

Heart Aerospace – Regional electric planes

Boundary Layer Technologies – Super-fast container ships

Additional reporting by Kate Clark, Greg Kumparak and Lucas Matney

Mar
05
2019
--

Salesforce releases myTrailhead, a customizable training platform

Salesforce has been using the notion of trailblazers as a learning metaphor for several years, since it created a platform to teach customers Salesforce skills called Trailhead. Today, the company announced the availability of myTrailhead, a similar platform that enables company to create branded, fully-customizable training materials based on the Trailhead approach.

It’s worth noting that the company originally announced this idea at Dreamforce in November, 2017, and after testing it on 13 pilot customers (including itself) for the last year is making the product generally available today.

While Trailhead is all about teaching Salesforce skills, myTrailhead is about building on that approach to teach whatever other skills a company might find desirable with its own culture, style, branding and methodologies.

It builds on the whole Trailhead theme of blazing a learning trail, providing a gamified approach to self-paced training, where users are quizzed throughout to reinforce the lessons, awarded badges for successfully completing modules and given titles like Ranger for successfully completing a certain number of courses.

By gamifying the approach, Salesforce hopes people will have friendly competition within companies, but it also sees these skills as adding value to an employee’s resume. If a manager is looking for an in-house hire, they can search by skills in myTrailhead and find candidates who match their requirements. Additionally, employees who participate in training can potentially advance their careers with the their enhanced skill sets.

While you can continue to teach Salesforce skills in myTrailhead, it’s really focused on the customization and what companies can add on top of the Salesforce materials to make the platform their own. Salesforce envisions companies using the platform for new employee onboarding, sales enablement or customer service training, but if a company is ambitious, it could use this as a broader training tool.

There is an analytics component in myTrailhead, so management can track when employees complete required training modules, understand how well they are doing as they move through a learning track or recognize when employees have updated their skill sets.

The idea is to build on the Trailhead platform idea to provide companies with a methodology for creating a digital approach learning, which Salesforce sees as an essential ingredient of becoming a modern company. The product is available immediately.

Nov
09
2018
--

LinkedIn Learning now includes 3rd party content and Q&A interactive features

LinkedIn, the Microsoft-owned social network for the working world with some 580 million users, took a big step into professional development and education when it acquired Lynda.com for $1.5 billion and used it as the anchor for LinkedIn Learning. Now, with 13,000 courses on the platform, LinkedIn is announcing two new developments to get more people using the service. It will now offer videos, tutorials and courses from third-parties such as Treehouse and the publishing division of Harvard Business School. And in a social twist, people who use LinkedIn Learning — the students and teachers — will now be able to ask and answer questions around LinkedIn Learning sessions, as well as follow instructors on LinkedIn, and see others’ feedback on courses.

Unlimited access to LinkedIn Learning comes when a person pays for LinkedIn’s Premium Career tier, which costs around $30/month, or when a company takes an enterprise team subscription for the Learning service. Today, LinkedIn tells me that it has around 11,000 enterprise customers; it doesn’t break out how much traffic it has overall on LinkedIn, but says that there has been a 64 percent growth in paid learners since the start of 2017 — a number that it’s clearly looking to boost with these new features.

James Raybould, the director of product for LinkedIn Learning, said that the third-party expansion will come slowly at first, with a handful of partners getting access to integrate with LinkedIn Learning. Over time, this could expand to be a public API for anyone to integrate content, he added, but for now, LinkedIn is doing the curating.

Notably, he also said that LinkedIn itself is not planning on curtailing the amount of content it will continue to produce for Learning: it’s currently adding more than 70 new courses each week on average, he said.

The content in this first wave of third-party providers feels like a natural extension of the influencer-based content that LinkedIn has been running in its main newsfeed: it runs the gamut from actual courses to learn new skills in specific disciplines, to the more nebulous area of professional development.

The first group includes Harvard Business Publishing (e.g. leadership development courses from Harvard Business School’s publishing arm); getAbstract (a Blinkist-style service that provides 10,000+ non-fiction book summaries plus TED talks); Big Think: 500 short-form videos on topics of the day (these are not so much “courses” as they are “life lessons” — subjects include organizing activism and an explainer on how to end bi-partisan politics); Treehouse, with courses on coding and product design skills; and Creative Live, with courses and tutorials for professionals in the creative industries to improve their skills and business acumen.

The fact that LinkedIn is adding more learning material that’s a natural extension of the kind of content it already offers to users in their timelines is not the only parallel between main LinkedIn and LinkedIn Learning. Raybould said that to help users discover content that might be most interesting to them, it uses data about what users browse and click on in the regular site.

“We have rich information about the network, including on engagement,” he said, and that helps LinkedIn’s algorithms suggest what to populate in individual learning libraries.

This is also, presumably, one of the reasons why third-parties will want to integrate: to get new audiences that are more targeted to the kind of content they are producing.

“At Harvard Business Publishing, we work to create the world’s best learning experiences to help organizations discover new ways to solve their most pressing leadership development challenges,” said Rich Gravelin, director of Partnerships and Alliances at Harvard Business Publishing, in a statement. “As an inaugural partner in the LinkedIn Learning Content Partner Program, we are bringing rich leadership development content to professionals across the globe, helping them navigate today’s complex business landscape. Thanks to the robust platform that LinkedIn Learning has built, we’re able to meet learners where they are and provide them with the unique and personalized learning experiences they need to succeed in their organizations.”

The social features also follow this model. Last year, LinkedIn rolled out a mentorship product across selected markets to pair users with people who steer them on their career development. That product set a precedent for how LinkedIn might use its wider social network and communication features to engage users in different ways, in the name of professional development.

The addition of Q&A features follows on from that, giving those taking courses or watching videos a way of interacting and following up with those who are doing the teaching. Adding that it could see more engagement across the whole of the Learning product.

It’s a surprise, in a way, that it’s taken this long for LinkedIn to add an interactive Q&A feature, considering that direct messaging and users interacting with each other has been a cornerstone of the product. On the other hand, it will be interesting to see if it proves to be a compelling enough feature to bring in more users to LinkedIn, luring them away from the Udemys and Skillsofts of the world.

Oct
17
2018
--

PwC staves off disruption with immersive emerging tech training

The big accounting firms are under pressure from digital disruption just like every industry these days, but PwC is trying a proactive approach with a digital accelerator program designed to train employees for the next generation of jobs.

To do this, PwC is not just providing some additional training resources and calling it a day. They are allowing employees to take 18 months to two years to completely immerse themselves in learning about a new area. This involves spending half their time on training for their new skill development and half putting that new knowledge to work with clients.

PwC’s Sarah McEneaney, digital talent leader at PwC was put in charge of the program. She said that as a consulting organization, it was important to really focus on the providing a new set of skills for the entire group of employees. That would take a serious commitment, concentrating on a set of emerging technologies. They decided to focus on data and analytics, automation and robotics and AI and machine learning.

Ray Wang, who is founder and principal analyst at Constellation Research says this is part of a broader trend around preparing employees inside large organizations for future skills. “Almost every organization around the world is worried about the growing skills gap inside their organizations. Reskilling, continuous learning and hand-on training are back in vogue with the improved economy and war for talent,” he said.

PwC program takes shape

About a year ago the company began designing the program and decided to open it up to everyone in the company from the consulting staff to the support staff with goal of eventually providing a new set of skills across the entire organization of 50,000 employees. As you would expect with a large organization, that started with baby steps.

Graphic: Duncan_Andison/Getty Images

The company designed the new program as a self-nomination process, rather than having management picked candidates. They wanted self starters, and about 3500 applied. McEneaney considered this a good number, especially since PwC tends to be a risk-averse culture and this was asking employees to leave the normal growth track and take a chance with this new program. Out of the 3500 who applied, they did an initial pilot with 1000 people.

She estimates if a majority of the company’s employees eventually opt in to this retraining regimen, it could cost some serious cash, around $100 million. That’s not an insignificant sum, even for a large company like PwC, but McEneaney believes it should pay for itself fairly quickly. As she put it, customers will respect the fact that the company is modernizing and looking at more efficient ways to do the work they are doing today.

Making it happen

Daniel Krogen, a risk assurance associate at PwC decided to go on the data and analytics track. While he welcomed getting new skills from his company, he admits he was nervous going this route at first because of the typical way his industry has worked in the past. “In the accounting industry you come in and have a track and everyone follows the track. I was worried doing something unique could hinder me if I wasn’t following track,” he said.

Graphic: Feodora Chiosea/Getty Images

He says those fears were alleviated by senior management encouraging people to join this program and giving participants assurances that they would not be penalized. “The firm is dedicated to pushing this and having how we differentiate this against the industry, and we want to invest in all of our staff and push everyone through this,” Krogen said.

McEneaney says she’s a partner at the firm, but it took a change management sell to the executive team and really getting them to look at it as a long-term investment in the future of the business. “I would say a critical factor in the early success of the program has been having buy-in from our senior partner, our CEO and all of his team from the very start,” She reports directly to this team and sees their support and backing as critical to the early success of the program.

Getting real

Members of the program are given a 3-day orientation. After that they follow a self-directed course work. They are encouraged to work together with other people in the program, and this is especially important since people will bring a range of skills to the subject matter from absolute beginners to those with more advanced understanding. People can meet in an office if they are in the same area or a coffee shop or in an online meeting as they prefer.

Each member of the program participates in a Udacity nano-degree program, learning a new set of skills related to whatever technology speciality they have chosen. “We have a pretty flexible culture here…and we trust our people to work in ways that work for them and work together in ways that work for them,” McEneaney explained.

The initial program was presented as a 12-18 month digital accelerator tour of duty, Krogen said. “In those 12-18 months, we are dedicated to this program. We could choose another stint or go back to client work and bring those skills to client services that we previously provided.”

While this program is really just getting off the ground, it’s a step toward acknowledging the changing face of business and technology. Companies like PwC need to be proactive in terms of preparing their own employees for the next generation of jobs, and that’s something every organization should be considering.

Oct
02
2018
--

NYC wants to build a cyber army

Empires rise and fall, and none more so than business empires. Whole industries that once dominated the planet are just a figment in memory’s eye, while new industries quietly grow into massive behemoths.

New York City has certainly seen its share of empires. Today, the city is a global center of finance, real estate, legal services, technology, and many, many more industries. It hosts the headquarters of roughly 10% of the Fortune 500, and the metro’s GDP is roughly equivalent to that of Canada.

So much wealth and power, and all under constant attack. The value of technology and data has skyrocketed, and so has the value of stealing and disrupting the services that rely upon it. Cyber crime and cyber wars are adding up: according to a report published jointly between McAfee and the Center for Strategic and International Studies, the costs of these operations are in the hundreds of billions of dollars – and New York’s top industries such as financial services bear the brunt of the losses.

Yet, New York City has hardly been a bastion for the cybersecurity industry. Boston and Washington DC are far stronger today on the Acela corridor, and San Francisco and Israel have both made huge impacts on the space. Now, NYC’s leaders are looking to build a whole new local empire that might just act as a bulwark for its other leading ecosystems.

Today, the New York City Economic Development Corporation (NYCEDC) announced the launch of Cyber NYC, a $30 million “catalyzing” investment designed to rapidly grow the city’s ecosystem and infrastructure for cybersecurity.

James Patchett, CEO of New York City Economic Development Corporation. (Photo from NYCEDC)

James Patchett, CEO of NYCEDC, explained in an interview with TechCrunch that cybersecurity is “both an incredible opportunity and also a huge threat.” He noted that “the financial industry has been the lifeblood of this city for our entire history,” and the costs of cybercrime are rising quickly. “It’s a lose-lose if we fail to invest in the innovation that keeps the city strong” but “it’s a win if we can create all of that innovation here and the corresponding jobs,” he said.

The Cyber NYC program is made up of a constellation of programs:

  • Partnering with Jerusalem Venture Partners, an accelerator called Hub.NYC will develop enterprise cybersecurity companies by connecting them with advisors and customers. The program will be hosted in a nearly 100,000 square foot building in SoHo.
  • Partnering with SOSA, the city will create a new, 15,000 square foot Global Cyber Center co-working facility in Chelsea, where talented individuals in the cyber industry can hang out and learn from each other through event programming and meetups.
  • With Fullstack Academy and Laguardia Community College, a Cyber Boot Camp will be created to enhance the ability of local workers to find jobs in the cybersecurity space.
  • Through an “Applied Learning Initiative,” students will be able to earn a “CUNY-Facebook Master’s Degree” in cybersecurity. The program has participation from the City University of New York, New York University, Columbia University, Cornell Tech, and iQ4.
  • With Columbia University’s Technology Ventures, NYCEDC will introduce a program called Inventors to Founders that will work to commercialize university research.

NYCEDC’s map of the Cyber NYC initiative. (Photo from NYCEDC)

In addition to Facebook, other companies have made commitments to the program, including Goldman Sachs, MasterCard, PricewaterhouseCoopers, and edX.org. Two Goldman execs, Chief Operational Risk Officer Phil Venables and Chief Information Security Officer Andy Ozment, have joined the initiative’s advisory boards.

The NYCEDC estimates that there are roughly 6,000 cybersecurity professionals currently employed in New York City. Through these programs, it estimates that the number could increase by another 10,000. Patchett said that “it is as close to a no-brainer in economic development because of the opportunity and the risk.”

From Jerusalem to New York

To tackle its ambitious cybersecurity goals, the NYCEDC is partnering with two venture firms, Jerusalem Venture Partners (JVP) and SOSA, with significant experience investing, operating, and growing companies in the sector.

Jerusalem-based JVP is an established investor that should help founders at Hub.NYC get access to smart capital, sector expertise, and the entrepreneurial experience needed to help their startups scale. JVP invests in early-, late-, and growth-stage companies focused on cybersecurity, big data, media, and enterprise software.

JVP will run Hub.NYC, a startup accelerator that will help cybersecurity startups connect with customers and mentors. (Photo from JVP)

Erel Margalit, who founded the firm in 1993, said that “If you look at what JVP has done … we create ecosystems.” Working with Jerusalem’s metro government, Margalit and the firm pioneered a number of institutions such as accelerators that turned Israel into an economic powerhouse in the cybersecurity industry. His social and economic work eventually led him to the Knesset, Israel’s unicameral legislature, where he served as an MP from 2015-2017 with the Labor Party.

Israel is a very small country with a relative dearth of large companies though, a huge challenge for startups looking to scale up. “Today if you want to build the next-generation leading companies, you have to be not only where the ideas are being brewed, but also where the solutions are being [purchased],” Margalit explained. “You need to be working with the biggest customers in the world.”

That place, in his mind, is New York City. It’s a city he has known since his youth – he worked at Moshe’s Moving IN NYC while attending Columbia as a grad student where he got his PhD in philosophy. Now, he can pack up his own success from Israel and scale it up to an even larger ecosystem.

Since its founding, JVP has successfully raised $1.1 billion across eight funds, including a $60 million fund specifically focused on the cybersecurity space. Over the same period, the firm has seen 32 successful exits, including cybersecurity companies CyberArk (IPO in 2014) and CyActive (Acquired by PayPal in 2013).

JVP’s efforts in the cybersecurity space also go beyond the investment process, with the firm recently establishing an incubator, known as JVP Cyber Labs, specifically focused on identifying, nurturing and building the next wave of Israeli cybersecurity and big data companies.

On average, the firm has focused on deals in the $5-$10 million range, with a general proclivity for earlier-stage companies where the firm can take a more hands-on mentorship role. Some of JVP’s notable active portfolio companies include Source Defense, which uses automation to protect against website supply chain attacks, ThetaRay, which uses big data to analyze threats, and Morphisec, which sells endpoint security solutions.

Opening up innovation with SOSA

The self-described “open-innovation platform,” SOSA is a global network of corporations, investors, and entrepreneurs that connects major institutions with innovative startups tackling core needs.

SOSA works closely with its partner startups, providing investor sourcing, hands-on mentorship and the physical resources needed to achieve growth. The group’s areas of expertise include cybersecurity, fintech, automation, energy, mobility, and logistics. Though headquartered in Tel Aviv, SOSA recently opened an innovation lab in New York, backed by major partners including HP, RBC, and Jefferies.

With the eight-floor Global Cyber Center located in Chelsea, it is turning its attention to an even more ambitious agenda. Uzi Scheffer, CEO of SOSA, said to TechCrunch in a statement that “The Global Cyber Center will serve as a center of gravity for the entire cybersecurity industry where they can meet, interact and connect to the finest talent from New York, the States, Israel and our entire global network.”

SOSA’s new building in Chelsea will be a center for the cybersecurity community (Photo from SOSA)

With an already established presence in New York, SOSA’s local network could help spur the local corporate participation key to the EDC’s plan, while SOSA’s broader global network can help achieve aspirations of turning New York City into a global cybersecurity leader.

It is no coincidence that both of the EDC’s venture partners are familiar with the Israeli cybersecurity ecosystem. Israel has long been viewed as a leader in cybersecurity innovation and policy, and has benefited from the same successful public-private sector coordination New York hopes to replicate.

Furthermore, while New York hopes to create organic growth within its own local ecosystem, the partnerships could also benefit the city if leading Israeli cybersecurity companies look to relocate due to the limited size of the Israeli market.

Big plans, big results?

While we spent comparatively less time discussing them, the NYCEDC’s educational programs are particularly interesting. Students will be able to take classes at any university in the five-member consortium, and transfer credits freely, a concept that the NYCEDC bills as “stackable certificates.”

Meanwhile, Facebook has partnered with the City University of New York to create a professional master’s degree program to train up a new class of cybersecurity leaders. The idea is to provide a pathway to a widely-respected credential without having to take too much time off of work. NYCEDC CEO Patchett said, ”you probably don’t have the time to take two years off to do a masters program,” and so the program’s flexibility should provide better access to more professionals.

Together, all of these disparate programs add up to a bold attempt to put New York City on the map for cybersecurity. Talent development, founder development, customer development – all have been addressed with capital and new initiatives.

Will the community show up at initiatives like the Global Cyber Center, pictured here? (Photo from SOSA)

Yet, despite the time that NYCEDC has spent to put all of these partners together cohesively under one initiative, the real challenge starts with getting the community to participate and build upon these nascent institutions. “What we hear from folks a lot of time,” Patchett said to us, is that “there is no community for cyber professionals in New York City.” Now the buildings have been placed, but the people need to walk through the front doors.

The city wants these programs to be self-sustaining as soon as possible. “In all cases, we don’t want to support these ecosystems forever,” Patchett said. “If we don’t think they’re financially sustainable, we haven’t done our job right.” He believes that “there should be a natural incentive to invest once the ecosystem is off the ground.”

As the world encounters an ever-increasing array of cyber threats, old empires can falter – and new empires can grow. Cybersecurity may well be one of the next great industries, and it may just provide the needed defenses to ensure that New York City’s other empires can live another day.

May
30
2018
--

Here’s Mary Meeker’s essential 2018 Internet Trends report

Want to understand all the most important tech stats and trends? Legendary venture capitalist Mary Meeker has just released the 2018 version of her famous Internet Trends report. It covers everything from mobile to commerce to the competition between tech giants. Check out the full report below, and we’ll add some highlights soon. Then come back for our slide-by-slide analysis of the most important parts of the 294 page report.

  • Internet adoption: As of 2018, half the world population, or about 3.6 billion people, will be on the internet. That’s thanks in large part to cheaper Android phones and Wifi becoming more available, though individual services will have a tougher time adding new users as the web hits saturation.
  • Mobile usage: While smartphone shipments are flat and internet user growth is slowing, U.S. adults are spending more time online thanks to mobile, clocking 5.9 hours per day in 2017 versus 5.6 hours in 2016.
  • Mobile ads: People are shifting their time to mobile faster than ad dollars are following, creating a $7 billion mobile ad opportunity, though platforms are increasingly responsible for providing safe content to host those ads.
  • Crypto: Interest in cryptocurrency is exploding as Coinbase’s user count has nearly quadrupled since January 2017
  • Voice: Voice technology is at an inflection point due to speech recognition hitting 95% accuracy and the sales explosion for Amazon Echo which went from over 10 million to over 30 million sold in total by the end of 2017.
  • Daily usage – Revenue gains for services like Facebook are tightly coupled with daily user growth, showing how profitable it is to become a regular habit.
  • Tech investment: We’re at an all-time high for public and private investment in technology, while the top six public R&D + capex spenders are all technology companies.

Mary Meeker, analyst with Morgan Stanley, speaks during the Web 2.0 Summit in San Francisco, California, U.S., on Tuesday, Nov. 16, 2010. This year’s conference, which runs through Nov. 17, is titled “Points of Control: The Battle for the Network Economy.” Photographer: Tony Avelar/Bloomberg via Getty Images

  • Ecommerce vs Brick & Mortar: Ecommerce growth quickens as now 13% of all retail purchases happen online and parcel shipments are rising swiftly, signaling big opportunities for new shopping apps.
  • Amazon: More people start product searches on Amazon than search engines now, but Jeff Bezos still relies on other surfaces like Facebook and YouTube to inspire people to want things.
  • Subscription services: They’re seeing massive adoption, with Netflix up 25%, The New York Times up 43%, and Spotify up 48% year-over-year in 2017. A free tier accelerates conversion rates.
  • Education: Employees seek retraining and education from YouTube and online courses to keep up with new job requirements and pay off skyrocketing student loan debt.
  • Freelancing: Employees crave scheduling and work-from-home flexibility, and internet discovery of freelance work led it to grow 3X faster than total workforce growth. The on-demand workforce grew 23% in 2017 driven by Uber, Airbnb, Etsy, Upwork, and Doordash.
  • Transportation: People are buying fewer cars, keeping them longer, and shifting transportation spend to rideshare, which saw rides double in 2017.
  • Enterprise: Consumerization of the enterprise through better interfaces is spurring growth for companies like Dropbox and Slack.
  • China: Alibaba is expanding beyond China with strong gross merchandise volume, though Amazon still rules in revenue.
  • Privacy: China has a big opportunity as users there are much more willing to trade their personal data for product benefits than U.S. users, and China is claiming more spots on the top 20 internet company list while making big investments in AI.
  • Immigration: It is critical to a strong economy, as 56% of top U.S. companies were founded by a first- or second-generation immigrant.

May
23
2018
--

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

Powered by WordPress | Theme: Aeros 2.0 by TheBuckmaker.com