Oct
07
2020
--

DoorDash introduces a new corporate product, DoorDash for Work

Delivery service DoorDash is giving employers a way to feed their remote employees through a new suite of products called DoorDash for Work.

There are four main products, starting with DashPass for Work, where employers can fund employee memberships to DashPass, a program that eliminates delivery fees on orders from thousands of restaurants. In fact, DoorDash says it already worked with Mt. Sinai to offer free DashPass subscriptions to 42,000 healthcare employees, and that other DashPass for Work customers include Charles Schwab, Hulu and Stanford Research Park.

DoorDash for Work also includes the ability for employers to provide credits for meal orders — there are options for day and time restrictions, so employers can be sure they’re paying for food while someone is working. For teams that are working in-person, there’s the ability to combine individual meal orders into a larger group order. And the service also includes employee gift cards (Zoom, for example, is providing these on employee birthdays).

In a blog post, Broderick McClinton, the head of DoorDash for Work, noted that COVID-19 has had “a profound impact on our daily routines, including the way we eat.”

“Instead of meeting our favorite barista on the way into the office or socializing with our colleagues in the lunch room, we’re spending a lot more time in the kitchen and eating solo at home, missing out on those moments to engage with peers and support our favorite restaurants,” McClinton wrote. “In this new normal, companies are adapting and looking for ways to support their employees’ wellbeing and productivity through new work-from-home corporate wellness benefits, including food perks.”

While free food might seem relatively low on the list of priorities during the pandemic (at least for those of us who have been fortunate enough to keep our jobs), DoorDash says it conducted a survey of 1,000 working Americans last month and found that 90% of them said they miss at least one food-related benefit from the office.

So DoorDash for Work is designed to help employers continue offering benefits in this area, and also it opens up a new source of revenue for DoorDash.

 

Oct
05
2020
--

GrubMarket raises $60M as food delivery stays center stage

Companies that have leveraged technology to make the procurement and delivery of food more accessible to more people have been seeing a big surge of business this year, as millions of consumers are encouraged (or outright mandated, due to COVID-19) to socially distance or want to avoid the crowds of physical shopping and eating excursions.

Today, one of the companies that is supplying produce and other items both to consumers and other services that are in turn selling food and groceries to them, is announcing a new round of funding as it gears up to take its next step, an IPO.

GrubMarket, which provides a B2C platform for consumers to order produce and other food and home items for delivery, and a B2B service where it supplies grocery stores, meal-kit companies and other food tech startups with products that they resell, is today announcing that it has raised $60 million in a Series D round of funding.

Sources close to the company confirmed to TechCrunch that GrubMarket — which is profitable, and originally hadn’t planned to raise more than $20 million — has now doubled its valuation compared to its last round — sources tell us it is now between $400 million and $500 million.

The funding is coming from funds and accounts managed by BlackRock, Reimagined Ventures, Trinity Capital Investment, Celtic House Venture Partners, Marubeni Ventures, Sixty Degree Capital and Mojo Partners, alongside previous investors GGV Capital, WI Harper Group, Digital Garage, CentreGold Capital, Scrum Ventures and other unnamed participants. Past investors also included Y Combinator, where GrubMarket was part of the Winter 2015 cohort. For some context, GrubMarket last raised money in April 2019 — $28 million at a $228 million valuation, a source says.

Mike Xu, the founder and CEO, said that the plan remains for the company to go public (he’s talked about it before), but given that it’s not having trouble raising from private markets and is currently growing at 100% over last year, and the IPO market is less certain at the moment, he declined to put an exact timeline on when this might actually happen, although he was clear that this is where his focus is in the near future.

“The only success criteria of my startup career is whether GrubMarket can eventually make $100 billion of annual sales,” he said to me over both email and in a phone conversation. “To achieve this goal, I am willing to stay heads-down and hardworking every day until it is done, and it does not matter whether it will take me 15 years or 50 years.”

I don’t doubt that he means it. I’ll note that we had this call in the middle of the night his time in California, even after I asked multiple times if there wasn’t a more reasonable hour in the daytime for him to talk. (He insisted that he got his best work done at 4:30 a.m., a result of how a lot of the grocery business works.) Xu on the one hand is very gentle with a calm demeanor, but don’t let his quiet manner fool you. He also is focused and relentless in his work ethic.

When people talk today about buying food, alongside traditional grocery stores and other physical food markets, they increasingly talk about grocery delivery companies, restaurant delivery platforms, meal kit services and more that make or provide food to people by way of apps. GrubMarket has built itself as a profitable but quiet giant that underpins the fuel that helps companies in all of these categories by becoming one of the critical companies building bridges between food producers and those that interact with customers.

Its opportunity comes in the form of disruption and a gap in the market. Food production is not unlike shipping and other older, non-tech industries, with a lot of transactions couched in legacy processes: GrubMarket has built software that connects the different segments of the food supply chain in a faster and more efficient way, and then provides the logistics to help it run.

To be sure, it’s an area that would have evolved regardless of the world health situation, but the rise and growth of the coronavirus has definitely “helped” GrubMarket not just by creating more demand for delivered food, but by providing a way for those in the food supply chain to interact with less contact and more tech-fueled efficiency.

Sales of WholesaleWare, as the platform is called, Xu said, have seen more than 800% growth over the last year, now managing “several hundreds of millions of dollars of food wholesale activities” annually.

Underpinning its tech is the sheer size of the operation: economies of scale in action. The company is active in the San Francisco Bay Area, Los Angeles, San Diego, Seattle, Texas, Michigan, Boston and New York (and many places in between) and says that it currently operates some 21 warehouses nationwide. Xu describes GrubMarket as a “major food provider” in the Bay Area and the rest of California, with (as one example) more than 5 million pounds of frozen meat in its east San Francisco Bay warehouse.

Its customers include more than 500 grocery stores, 8,000 restaurants and 2,000 corporate offices, with familiar names like Whole Foods, Kroger, Albertson, Safeway, Sprouts Farmers Market, Raley’s Market, 99 Ranch Market, Blue Apron, Hello Fresh, Fresh Direct, Imperfect Foods, Misfit Market, Sun Basket and GoodEggs all on the list, with GrubMarket supplying them items that they resell directly, or use in creating their own products (like meal kits).

While much of GrubMarket’s growth has been — like a lot of its produce — organic, its profitability has helped it also grow inorganically. It has made some 15 acquisitions in the last two years, including Boston Organics and EJ Food Distributor this year.

It’s not to say that GrubMarket has not had growing pains. The company, Xu said, was like many others in the food delivery business — “overwhelmed” at the start of the pandemic in March and April of this year. “We had to limit our daily delivery volume in some regions, and put new customers on waiting lists.” Even so, the B2C business grew between 300% and 500% depending on the market. Xu said things calmed down by May and even as some B2B customers never came back after cities were locked down, as a category, B2B has largely recovered, he said.

Interestingly, the startup itself has taken a very proactive approach in order to limit its own workers’ and customers’ exposure to COVID-19, doing as much testing as it could — tests have been, as we all know, in very short supply — as well as a lot of social distancing and cleaning operations.

“There have been no mandates about masks, but we supplied them extensively,” he said.

So far it seems to have worked. Xu said the company has only found “a couple of employees” that were positive this year. In one case in April, a case was found not through a test (which it didn’t have, this happened in Michigan) but through a routine check and finding an employee showing symptoms, and its response was swift: the facilities were locked down for two weeks and sanitized, despite this happening in one of the busiest months in the history of the company (and the food supply sector overall).

That’s notable leadership at a time when it feels like a lot of leaders have failed us, which only helps to bolster the company’s strong growth.

“Having a proven track record of sustained hypergrowth and net income profitability, GrubMarket stands out as an extraordinarily rare Silicon Valley startup in the food technology and ecommerce segment,” said Jay Chen, managing partner of Celtic House Venture Partner. “Scaling over 15x in 4 years, GrubMarket’s creativity and capital efficiency is unmatched by anyone else in this space. Mike’s team has done an incredible job growing the company thoughtfully and sustainably. We are proud to be a partner in the company’s rapid nationwide expansion and excited by the strong momentum of WholesaleWare, their SaaS suite, which is the best we have seen in space.”
Updated with more detail on the valuation.

Sep
01
2020
--

12 Paris-based VCs look at the state of their city

Four years after the Great Recession, France’s newly elected socialist president François Hollande raised taxes and increased regulations on founder-led startups. The subsequent flight of entrepreneurs to places like London and Silicon Valley portrayed France as a tough place to launch a company. By 2016, France’s national statistics bureau estimated that about three million native-born citizens had moved abroad.

Those who remained fought back: The Family was an early accelerator that encouraged French entrepreneurs to adopt Silicon Valley’s startup methodology, and the 2012 creation of Bpifrance, a public investment bank, put money into the startup ecosystem system via investors. Organizers founded La French Tech to beat the drum about native startups.

When President Emmanuel Macron took office in May 2017, he scrapped the wealth tax on everything except property assets and introduced a flat 30% tax rate on capital gains. Station F, a giant startup campus funded by billionaire entrepreneur Xavier Niel on the site of a former railway station, began attracting international talent. Tony Fadell, one of the fathers of the iPod and founder of Nest Labs, moved to Paris to set up investment firm Future Shape; VivaTech was created with government backing to become one of Europe’s largest startup conference and expos.

Now, in the COVID-19 era, the government has made €4 billion available to entrepreneurs to keep the lights on. According to a recent report from VC firm Atomico, there are 11 unicorns in France, including BlaBlaCar, OVHcloud, Deezer and Veepee. More appear to be coming; last year Macron said he wanted to see “25 French unicorns by 2025.”

According to Station F, by the end of August, there had been 24 funding rounds led by international VCs and a few big transactions. Enterprise artificial intelligence and machine-learning platform Dataiku raised a $100 million Series D round, and Paris-based gaming startup Voodoo raised an undisclosed amount from Tencent Holdings.

We asked 12 Paris-based investors to comment on the state of play in their city:

Alison Imbert, Partech

What trends are you most excited about investing in, generally?

All the fintechs addressing SMBs to help them to focus more on their core business (including banks disintermediation by fintech, new infrastructures tech that are lowering the barrier to entry to nonfintech companies).

What’s your latest, most exciting investment?

77foods (plant-based bacon) — love that alternative proteins trend as well. Obviously, we need to transform our diet toward more sustainable food. It’s the next challenge for humanity.

What are you looking for in your next investment, in general?
Impact investment: Logistic companies tackling the life cycle of products to reduce their carbon footprint and green fintech that reinvent our spending and investment strategy around more sustainable products.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
D2C products.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
100% investing in France as I’m managing Paris Saclay Seed Fund, a €53 million fund, investing in pre-seed and seed startups launched by graduates and researchers from the best engineering and business schools from this ecosystem.

Which industries in your city and region seem well-positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Deep tech, biotech and medical devices. Paris, and France in general, has thousands of outstanding engineers that graduate each year. Researchers are more and more willing to found companies to have a true impact on our society. I do believe that the ecosystem is more and more structured to help them to build such companies.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Paris is booming for sure. It’s still behind London and Berlin probably. But we are seeing more and more European VC offices opening in the city to get direct access to our ecosystem. Even in seed rounds, we start to have European VCs competing against us. It’s good — that means that our startups are moving to the next level.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
For sure startups will more and more push for remote organizations. It’s an amazing way to combine quality of life for employees and attracting talent. Yet I don’t think it will be the majority. Not all founders are willing/able to build a fully remote company. It’s an important cultural choice and it’s adapted to a certain type of business. I believe in more flexible organization (e.g., tech team working remotely or 1-2 days a week for any employee).

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
Travel and hospitality sectors are of course hugely impacted. Yet there are opportunities for helping those incumbents to face current challenges (e.g., better customer care and services, stronger flexibility, cost reduction and process automation).

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Cash is king more than ever before. My only piece of advice will be to keep a good level of cash as we have a limited view on events coming ahead. It’s easy to say but much more difficult to put in practice (e.g., to what extend should I reduce my cash burn? Should I keep on investing in the product? What is the impact on the sales team?). Startups should focus only on what is mission-critical for their clients. Yet it doesn’t impact our seed investments as we invest pre-revenue and often pre-product.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
There is no reason to be hopeless. Crises have happened in the past. Humanity has faced other pandemics. Humans are resilient and resourceful enough to adapt to a new environment and new constraints.

Aug
21
2020
--

As the pandemic creates supply chain chaos, Craft raises $10M to apply some intelligence

During the COVID-19 pandemic, supply chains have suddenly become hot. Who knew that would ever happen? The race to secure PPE, ventilators and minor things like food was and still is an enormous issue. But perhaps, predictably, the world of “supply chain software” could use some updating. Most of the platforms are deployed “empty” and require the client to populate them with their own data, or “bring their own data.” The UIs can be outdated and still have to be juggled with manual and offline workflows. So startups working in this space are now attracting some timely attention.

Thus, Craft, the enterprise intelligence company, today announces it has closed a $10 million Series A financing round to build what it characterizes as a “supply chain intelligence platform.” With the new funding, Craft will expand its offices in San Francisco, London and Minsk, and grow remote teams across engineering, sales, marketing and operations in North America and Europe.

It competes with some large incumbents, such as Dun & Bradstreet, Bureau van Dijk and Thomson Reuters . These are traditional data providers focused primarily on providing financial data about public companies, rather than real-time data from data sources such as operating metrics, human capital and risk metrics.

The idea is to allow companies to monitor and optimize their supply chain and enterprise systems. The financing was led by High Alpha Capital, alongside Greycroft. Craft also has some high-flying angel investors, including Sam Palmisano, chairman of the Center for Global Enterprise and former CEO and chairman of IBM; Jim Moffatt, former CEO of Deloitte Consulting; Frederic Kerrest, executive vice chairman, COO and co-founder of Okta; and Uncork Capital, which previously led Craft’s seed financing. High Alpha partner Kristian Andersen is joining Craft’s board of directors.

The problem Craft is attacking is a lack of visibility into complex global supply chains. For obvious reasons, COVID-19 disrupted global supply chains, which tended to reveal a lot of risks, structural weaknesses across industries and a lack of intelligence about how it’s all holding together. Craft’s solution is a proprietary data platform, API and portal that integrates into existing enterprise workflows.

While many business intelligence products require clients to bring their own data, Craft’s data platform comes pre-deployed with data from thousands of financial and alternative sources, such as 300+ data points that are refreshed using both Machine Learning and human validation. Its open-to-the-web company profiles appear in 50 million search results, for instance.

Ilya Levtov, co-founder and CEO of Craft, said in a statement: “Today, we are focused on providing powerful tracking and visibility to enterprise supply chains, while our ultimate vision is to build the intelligence layer of the enterprise technology stack.”

Kristian Andersen, partner with High Alpha commented: “We have a deep conviction that supply chain management remains an underinvested and under-innovated category in enterprise software.”

In the first half of 2020, Craft claims its revenues have grown nearly threefold, with Fortune 100 companies, government and military agencies, and SMEs among its clients.

Jul
15
2020
--

Crisp, the platform for demand forecasting the food supply chain, gets $12 million in funding

Crisp, a demand forecasting platform for the food industry, has today announced the close of a $12 million Series A funding round led by FirstMark Capital, with participation from Spring Capital and Swell Partners.

Crisp launched out of beta in January of this year with a product that aimed to give food suppliers and distributors a clearer picture of customer demand at retailers. Before Crisp, these organizations usually had several data scientists compiling data from various sources into an unintelligible spreadsheet, making it difficult to see general demand outlooks, and nearly impossible to spot anomalies.

Not only does this lead to losses in revenue, but it also contributes to a terrible amount of food waste.

Crisp looks to solve this by giving these suppliers and distributors a visualization of their data instantly and in real time. The company has built integrations with a large number of ERP software, ingesting historical data from food brands and combining them with a wide range of other signals around demand drivers, such as seasonality, holidays, price sensitivity, past marketing campaigns, changes in the competitive landscape and weather that might affect the sale or shipment of ingredients or the product itself.

The end goal is to consolidate data across the industry, from brands to distributors to grocery stores, so that each individual link in the food chain can do a better job of matching their supply with their demand on an individual basis.

Since launching out of beta, Crisp has expanded beyond food brands and suppliers into retail and distributor space. The company has also expanded beyond produce and dairy into verticals like beverages, bakery, CPG, flowers, meat and poultry. The startup says its seen an 80% increase in the number of customers using the platform since January.

Obviously, the coronavirus pandemic brings its own unique challenges and opportunities to Crisp’s business. On the one hand, grocery store shopping is booming and the supply chain behind it is certainly in need of better data science and demand forecasting as user behavior shifts rapidly. On the other hand, user behavior is shifting rapidly.

With state by state, and sometimes county by county, lockdowns and shifts in the restrictions imposed on small businesses, Crisp has had to manually track what’s going on around the country in order to provide clear insights to its customers.

“This period we’re in has increased that willingness to share data and increased collaboration between everybody in the supply chain,” said founder and CEO Are Traasdahl. “We’ve seen a big shift there. Earlier, everyone assumed that everyone else was able to deliver, but now this ability to have a full, top-down visibility across a whole depth of companies, not just the companies next to you in your trading relationships, but being able to unify data and have more insights from multiple steps away from yourself, and get that data in real time been accelerated.”

Crisp currently has 33 employees (with plans to hire on the back of the funding), which is 33% women and 15% people of color. Half of Crisp’s management team are women.

Jul
01
2020
--

Minneapolis-based VC shop Bread & Butter focuses on its own backyard

While many investors say sheltering in place has broadened their appetite for funding companies located outside major hubs, one firm is doubling down on backing startups in America’s heartland.

Launched in 2016 by Brett Brohl, The Syndicate Fund rebranded to Bread & Butter Ventures earlier this month (a reference to one of Minnesota’s many nicknames). Along with the rebrand, longtime Google executive and Revolution partner Mary Grove joined the team as a general partner and Stephanie Rich came aboard as head of platform.

The growth of the Twin Cities’ startup ecosystem is precisely why The Syndicate Fund rebranded. The firm, which has $10 million in assets under management, will invest in three of Minneapolis’ biggest strengths: agriculture and food, health care and enterprise software.

Agtech interest spans the entire spectrum from farming to restaurants and grocery stores. The firm is also interested in the “messy middle” of supply chain and logistics around food, said Brohl and is interested in a mix of software, hardware and biosciences. Within health care, the firm evaluates solutions focused on prevention versus treatment, female health startups working on maternal health and fertility and software focused on the aging population and millennials.

It’s also looking at enterprise software that can serve large businesses and scale efficiently.

Apr
03
2020
--

In the wake of COVID-19, UK puts up £20M in grants to develop resilience tech for critical industries

Most of the world — despite the canaries in the coal mine — was unprepared to cope with the coronavirus outbreak that’s now besieging us. Now, work is starting to get underway both to help manage what is going on now and better prepare us in the future. In the latest development, the UK government today announced that it will issue £20 million ($24.5 million) in grants of up to £50,000 each to startups and other businesses that are developing tools to improve resilience for critical industries — in other words, those that need to keep moving when something cataclysmic like a pandemic hits.

You can start your application here. Unlike a lot of other government efforts, this one is aimed at a quick start: you need to be ready to kick of your project using the grant no later than June 2020, but earlier is okay, too.

Awarded through Innovate UK, which part of UK Research and Innovation (itself a division of the Department of Business, Energy and Industrial Strategy), the grants will be available to businesses of any size as long as they are UK-registered, and aim to cover a wide swathe of industries that form the core fabric of how society and the economy can continue to operate.

“The Covid-19 situation is not just a health emergency, but also one that effects the economy and society. With that in mind, Innovate UK has launched this rapid response competition today seeking smart ideas from innovators,” said Dr Ian Campbell Executive Chair, Innovate UK, in a statement. “These could be proposals to help the distribution of goods, educate children remotely, keep families digitally connected and even new ideas to stream music and entertainment. The UK needs a great national effort and Innovate UK is helping by unleashing the power of innovation for people and businesses in need.”

These include not just what are typically considered “critical” industries like healthcare and food production and distribution, but also those that are less tangible but equally important in keeping society running smoothly, like entertainment and wellbeing services:

  • community support services
  • couriers and delivery (rural and/or city based)
  • education and culture
  • entertainment (live entertainment, music, etc.)
  • financial services
  • food manufacture and processing
  • healthcare
  • hospitality
  • personal protection equipment
  • remote working
  • retail
  • social care
  • sport and recreation
  • transport
  • wellbeing

The idea is to introduce new technologies and processes that will support existing businesses and organizations, not use the funding to build new startups from scratch. Those getting the funding could already be businesses in these categories, or building tools to help companies that fall under these themes.

The grants were announced at a time where we are seeing a huge surge of companies step up to the challenge of helping communities and countries cope with COVID-19. That’s included not only those that already made medical supplies increase production, but a number of other businesses step in and try to help where they can, or recalibrate what they normally do to make their factories or other assets more useful. (For example, in the UK, Rolls Royce, Airbus and the Formula 1 team are all working on ventilators and other hospital equipment, a model of industry retooling that has been seen in many other countries, too.)

That trend is what helped to inspire this newest wave of non-equity grants.

“The response of researchers and businesses to the coronavirus outbreak have been remarkable,” said Science Minister Amanda Solloway in a statement. “This new investment will support the development of technologies that can help industries, communities and individuals adapt to new ways of working when situations like this, and other incidents, arise.”

The remit here is intentionally open-ended but will likely be shaped by some of the shortcomings and cracks that have been appearing in recent weeks while systems get severely stress-tested.

So, unsurprisingly, the sample innovations that UK Innovate cites appear to directly relate to that. They include things like technology to help respond to spikes in online consumer demand — every grocery service in the online and physical world has been overwhelmed by customer traffic, leading to sites crashing, people leaving stores disappointed at what they cannot find, and general panic. Or services for families to connect with and remotely monitor vulnerable relatives: while Zoom and the rest have seen huge surges in traffic, there are still too many people on the other side of the digital divide who cannot access or use these. And better education tools: again, there are thousands of edtech companies in the world, but in the UK at least, I wouldn’t say that the educational authorities had done even a small degree of disaster planning, leaving individual schools to scramble and figure out ways to keep teaching remotely that works for everyone (again not always easy with digital divides, safeguarding and other issues).

None of this can cure coronavirus or stop another pandemic from happening — there are plenty of others that are working very squarely on that now, too — but these are equally critical to get right to make sure that a health disaster doesn’t extend into a more permanent economic or societal one.

More information and applications are here.

Oct
29
2019
--

WeFarm rakes in $13M to grow its marketplace and network for independent farmers

Huge networks like Facebook and LinkedIn have a huge gravitational force in the world of social media — the size of their audiences make them important platforms for advertising and those who want information (for better or worse) to reach as many people as possible. But alongside their growth, we’re seeing a lasting role for platforms and networks focused on more narrow special interests, and today one of them — focused on farmers, of all communities — is picking up a round of funding to propel its growth.

WeFarm, a marketplace and networking site for small-holder farmers (that is, farms not controlled by large agribusinesses), has raised $13 million in a Series A round of funding, with plans to use the money to continue adding more users — farmers — and more services geared to their needs.

The round, which brings the total raised by the company to a modest $20 million, is being led by True Ventures, with AgFunder, June Fund; previous investors LocalGlobe, ADV and Norrsken Foundation; and others also participating.

WeFarm today has around 1.9 million registered users, and its early moves into providing a marketplace — helping to put farmers in touch with local suppliers of goods and gear such as seed and fertilizers — generated $1 million in sales in its first eight months of operations, a sign that there is business to be had here. The startup points out that this growth has been, in fact, “faster… than both Amazon and eBay in their early stages.”

WeFarm is based out of London, but while the startup does have users out of the U.K. and the rest of Europe, Kenny Ewan, the company’s founder and CEO, said in an interview that it is seeing much more robust activity and growth out of developing economies, where small-scale agriculture reigns supreme, but those working the farms have been massively underserved when it comes to new, digital services.

“We are building an ecosystem for global small-scale agriculture, on behalf of farmers,” Ewan said, noting that there are roughly 500 million small-scale farms globally, with some 1 billion people working those holdings, which typically extend 1.5-2 hectares and often are focused around staple commercial crops like rice, coffee, cattle or vegetables. “This is probably the biggest industry on Earth, accounting for some 75-80% of the global supply chain, and yet no one has built anything for them. This is significant on many levels.”

The service that WeFarm provides, in turn, is two-fold. The network, which is free to join, first of all serves as a sounding board, where farmers — who might live in a community with other farmers, but might also be quite solitary — can ask each other questions or get advice on agricultural or small-holding matters. Think less Facebook and more Stack Exchange here.

That provided a natural progression to WeFarm’s second utility track: a marketplace. Initially Ewan said that it’s been working with — and importantly, vetting — local suppliers to help them connect with farmers and the wider ecosystem for goods and services that they might need.

Longer term, the aim will be to provide a place where small-holding farmers might be able to exchange goods with each other, or sell on what they are producing.

In addition to providing access to goods for sale, WeFarm is helping to manage the e-commerce process behind it. For example, in regions like Africa, mobile wallets have become de facto bank accounts and proxies for payment cards, so one of the key ways that people can pay for items is via SMS.

“For 90% of our users, we are the only digital service they use, so we have to make sure we can fulfill their trust,” Ewan said. “This is a network of trust for the biggest industry on earth and we have to make sure it works well.”

For True and other investors, this is a long-term play, where financial returns might not be as obvious as moral ones.

“We are enormously inspired by how Kenny and the Wefarm team have empowered the world’s farmers, and we see great potential for their future,” said Jon Callaghan, co-founder of True Ventures, in a statement. “The company is not only impact-driven, but the impressive growth of the Wefarm Marketplace demonstrates exciting commercial opportunities that will connect those farmers to more of what they need to the benefit of all, across the food supply chain. This is a big, global business.”

Still, given the bigger size of the long tail, the company that can consolidate and manage that community potentially has a very valuable business on its hands, too.

Sep
13
2019
--

Ten questions for 2020 presidential candidate John Delaney

In November 2020, America will go to the polls to vote in perhaps the most consequential election in a generation. The winner will lead the country amid great social, economic and ecological unrest. The 2020 election will be a referendum on both the current White House and the direction of the country at large.

Nearly 20 years into the young century, technology has become a pervasive element in all of our lives, and will continue to only grow more important. Whoever takes the oath of office in January 2021 will have to answer some difficult questions, raging from an impending climate disaster to concerns about job loss at the hands of robotics and automation.

Many of these questions are overlooked in day to day coverage of candidates and during debates. In order to better address the issues, TechCrunch staff has compiled a 10-part questionnaire across a wide range of tech-centric topics. The questions have been sent to national candidates, regardless of party. We will be publishing the answers as we receive them. Candidates are not required to answer all 10 in order for us to publish, but we will be noting which answers have been left blank.

First up is former Congressman John Delaney. Prior to being elected to Maryland’s 6th Congressional District, Delaney co-founded and led healthcare loan service Health Care Financial Partners (HCFP) and  commercial lender CapitalSource. He was elected to Congress in 2013, beating out a 10-term Republican incumbent. Rumored to be running against Maryland governor Larry Hogan for a 2018 bid, Delaney instead announced plans to run for president in 2020.

1. Which initiatives will you prioritize to limit humankind’s impact on climate and avoid potential climate catastrophe?

My $4 trillion Climate Plan will enable us to reach the goal of net zero emissions by 2050, which the IPCC says is the necessary target to avoid the worst effects of climate change. The centerpiece of my plan is a carbon-fee-and-dividend that will put a price on carbon emissions and return the money to the American people through a dividend. My plan also includes increased federal funding for renewable energy research, advanced nuclear technologies, direct air capture, a new Climate Corps program, and the construction of the Carbon Throughway, which would transport captured carbon from all over the country to the Permian Basin for reuse and permanent sequestration.

2. What is your plan to increase black and Latinx startup founders’ access to funding?

As a former entrepreneur who started two companies that went on to be publicly traded, I am a firm believer in the importance of entrepreneurship. To ensure people from all backgrounds have the support they need to start a new business, I will create nonprofit banks to serve economically distressed communities, launch a new SBIC program to help provide access to capital to minority entrepreneurs, and create a grant program to fund business incubators and accelerators at HBCUs. Additionally, I pledge to appoint an Entrepreneurship Czar who will be responsible for promoting entrepreneurship-friendly policies at all levels of government and encouraging entrepreneurship in rural and urban communities that have been left behind by venture capital investment.

3. Why do you think low-income students are underrepresented in STEM fields and how do you think the government can help fix that problem?

I think a major part of the problem is that schools serving low-income communities don’t have the resources they need to provide a quality STEM education to every student. To fix that, I have an education plan that will increase investment in STEM education and use Title I funding to eliminate the $23 billion annual funding gap between predominantly white and predominantly black school districts. To encourage students to continue their education after they graduate from high school and ensure every student learns the skills they need, my plan also provides two years of free in-state tuition and fees at a public university, community college, or technical school to everyone who completes one year of my mandatory national service program.

4. Do you plan on backing and rolling out paper-only ballots or paper-verified election machines? With many stakeholders in the private sector and the government, how do you aim to coordinate and achieve that?

Making sure that our elections are secure is vital, and I think using voting machines that create a voter-verified paper record could improve security and increase voters’ confidence in the integrity of our elections. To address other facets of the election security issue, I have proposed creating a Department of Cybersecurity to help protect our election systems, and while in Congress I introduced election security legislation to ensure that election vendors are solely owned and controlled by American citizens.

5. What, if any, federal regulation should be enacted for autonomous vehicles?

I was proud to be the founder of the Congressional Artificial Intelligence Caucus, a bipartisan group of lawmakers dedicated to understanding the impacts of advances in AI technology and educating other legislators so they have the knowledge they need to enact policies that ensure these innovations benefit Americans. We need to use the legislative process to have a real conversation involving experts and other stakeholders in order to develop a comprehensive set of regulations regarding autonomous vehicles, which should include standards that address data collection practices and other privacy issues as well as more fundamental questions about public safety.

6. How do you plan to achieve and maintain U.S. superiority in space, both in government programs and private industry?

Space exploration is tremendously important to me as a former Congressman from Maryland, the home of NASA’s Goddard Space Flight Center, major space research centers at the University of Maryland, and many companies that develop crucial aerospace technologies. As president, I will support the NASA budget and will continue to encourage innovation in the private sector.

7. Increased capital in startups founded by American entrepreneurs is a net positive, but should the U.S. allow its businesses to be part-owned by foreign governments, particularly the government of Saudi Arabia?

I am concerned that joint ventures between U.S. businesses and foreign governments, including state-owned enterprises, could facilitate the theft of intellectual property, potentially allowing foreign governments to benefit from taxpayer-funded research. We need to put in place greater protections that defend American innovation from theft.

8. Will U.S.-China technology decoupling harm or benefit U.S. innovation and why?

In general, I am in favor of international technology cooperation but in the case of China, it engages in predatory economic behavior and disregards international rules. Intellectual property theft has become a big problem for American businesses as China allows its companies to steal IP through joint ventures. In theory, U.S.-China collaboration could advance technology and innovation but without proper IP and economic protections, U.S.-China joint ventures and partnerships can be detrimental to the U.S.

9. How large a threat does automation represent to American jobs? Do you have a plan to help train low-skilled workers and otherwise offset job loss?

Automation could lead to the disruption of up to 54 million American jobs if we aren’t prepared and we don’t have the right policies. To help American workers transition to the high-tech, high-skill future economy, I am calling for a national AI strategy that will support public/private AI partnerships, develop a social contract with the communities that are negatively impacted by technology and globalization, and create updated education and job training programs that will help students and those currently in the workforce learn the skills they need.

To help provide jobs to displaced workers and drive economic growth in communities that suffer negative effects from automation, I have proposed a $2 trillion infrastructure plan that would create an infrastructure bank to facilitate state and local government investment, increase the Highway Trust Fund, create a Climate Infrastructure Fund, and create five new matching funds to support water infrastructure, school infrastructure, deferred maintenance projects, rural broadband, and infrastructure projects in disadvantaged communities in urban and rural areas. In addition, my proposed national service program will create new opportunities that allow young adults to learn new skills and gain valuable work experience. For example, my proposal includes a new national infrastructure apprenticeship program that will award a professional certificate proving mastery of particular skill sets for those who complete the program.

10. What steps will you take to restore net neutrality and assure internet users that their traffic and data are safe from manipulation by broadband providers?

I support the Save Net Neutrality Act to restore net neutrality, and I will appoint FCC commissioners who are committed to maintaining a fair and open internet. Additionally, I would work with Congress to update our digital privacy laws and regulations to protect consumers, especially children, from their data being collected without consent.

Apr
17
2019
--

The Exit: an AI startup’s McPivot

Five years ago, Dynamic Yield was courting an investment from The New York Times as it looked to shift how publishers paywalled their content. Last month, Chicago-based fast food king McDonald’s bought the Israeli company for $300 million, a source told TechCrunch, with the purpose of rethinking how people order drive-thru chicken nuggets.

The pivot from courting the grey lady to the golden arches isn’t as drastic as it sounds. In a lot of ways, it’s the result of the company learning to say “no” to certain customers. At least, that’s what Bessemer’s Adam Fisher tells us.

The Exit is a new series at TechCrunch. It’s an exit interview of sorts with a VC who was in the right place at the right time but made the right call on an investment that paid off. 

Fisher

Fisher was Dynamic Yield founder Liad Agmon’s first call when he started looking for funds from institutional investors. Bessemer bankrolled the bulk of a $1.7 million funding round which valued the startup at $5 million pre-money back in 2013. The firm ended up putting about $15 million into Dynamic Yield, which raised ~$85 million in total from backers including Marker Capital, Union Tech Ventures, Baidu and The New York Times.

Fisher and I chatted at length about the company’s challenging rise and how Israel’s tech scene is still being underestimated. Fisher has 11 years at Bessemer under his belt and 14 exits including Wix, Intucell, Ravello and Leaba.

The interview has been edited for length and clarity. 


Saying “No”

Lucas Matney: So, right off the bat, how exactly did this tool initially built for publishers end up becoming something that McDonalds wanted?

Adam Fisher: I mean, the story of Dynamic Yield is unique. Liad, the founder and CEO, he was an entrepreneur in residence in our Herzliya office back in 2011. I’d identified him earlier from his previous company, and I just said, ‘Well, that’s the kind of guy I’d love to work with.’ I didn’t like his previous company, but there was something about his charisma, his technology background, his youth, which I just felt like “Wow, he’s going to do something interesting.” And so when he sold his previous company, coincidentally to another Chicago based company called Sears, I invited him and I think he found it very flattering, so he joined us as an EIR.

And really only at the very end of his residence did he come up with this idea that would become Dynamic Yield. He came about it very much focused on the problem he saw with publishers being outwitted by ad buyers. He felt like all the big publishers really didn’t understand their digital businesses, didn’t understand their users, didn’t understand how performance ad buying was working, and he began to build a product that could dynamically optimize a publisher’s website to maximize revenue, hence the yield … the dynamic yield.

But very quickly, we told him, ‘That’s interesting, but we’re not sure how big that market is. And, you know it’s not always great to sell to those kind of weak customers. Sometimes they’re weak for a reason.’

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