Apr
18
2019
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Microsoft delves deeper into IoT with Express Logic acquisition

Microsoft has never been shy about being acquisitive, and today it announced it’s buying Express Logic, a San Diego company that has developed a real-time operating system (RTOS) aimed at controlling the growing number of IoT devices in the world.

The companies did not share the purchase price.

Express Logic is not some wide-eyed, pie-in-the-sky startup. It has been around for 23 years, building (in its own words) “industrial-grade RTOS and middleware software solutions for embedded and IoT developers.” The company boasts some 6.2 billion (yes, billion) devices running its systems. That number did not escape Sam George, director of Azure IoT at Microsoft, but as he wrote in a blog post announcing the deal, there is a reason for this popularity.

“This widespread popularity is driven by demand for technology to support resource constrained environments, especially those that require safety and security,” George wrote.

Holger Mueller, an analyst with Constellation Research, says that market share also gives Microsoft instant platform credibility. “This is a key acquisition for Microsoft: on the strategy side Microsoft is showing it is serious with investing heavily into IoT, and on the product side it’s a key step to get into the operating system code of the popular RTOS,” Mueller told TechCrunch.

The beauty of Express Logic’s approach is that it can work in low-power and low-resource environments and offers a proven solution for a range or products. “Manufacturers building products across a range of categories — from low-capacity sensors like lightbulbs and temperature gauges to air conditioners, medical devices and network appliances — leverage the size, safety and security benefits of Express Logic solutions to achieve faster time to market,” George wrote.

Writing in a blog post to his customers announcing the deal, Express Logic CEO William E. Lamie, expressed optimism that the company can grow even further as part of the Microsoft family. “Effective immediately, our ThreadX RTOS and supporting software technology, as well as our talented engineering staff join Microsoft. This complements Microsoft’s existing premier security offering in the microcontroller space,” he wrote.

Microsoft is getting an established company with a proven product that can help it scale its Azure IoT business. The acquisition is part of a $5 billion investment in IoT the company announced last April that includes a number of Azure pieces, such as Azure Sphere, Azure Digital Twins, Azure IoT Edge, Azure Maps and Azure IoT Central.

“With this acquisition, we will unlock access to billions of new connected endpoints, grow the number of devices that can seamlessly connect to Azure and enable new intelligent capabilities. Express Logic’s ThreadX RTOS joins Microsoft’s growing support for IoT devices and is complementary with Azure Sphere, our premier security offering in the microcontroller space,” George wrote.

Apr
17
2019
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Spotinst, the startup enabling companies to purchase and manage excess cloud capacity, acquires StratCloud

Spotinst, the cloud automation and optimization startup founded in Tel Aviv but now with offices in San Francisco, New York and London, has acquired AWS partner StratCloud. Terms of the deal remain undisclosed, although I’m hearing it combines both cash and stock and was somewhere in the region of $5 million.

As part of the acquisition, StratCloud’s team of 15 people will be joining Spotinst, including founder Patrick Gartlan, who will become VP, Cloud Services at Spotinst. StratCloud hadn’t raised any venture capital but instead was bootstrapped by Gartlan, who was the former CTO of cloud optimization company CloudCheckr.

Founded in 2015, Spotinst enables enterprises to optimize their cloud infrastructure usage by automating the process of using excess — and therefore cheaper — capacity from leading cloud providers.

As TechCrunch’s Ron Miller previously explained, cloud platforms like AWS, Microsoft Azure and Google Cloud Platform, all of which Spotinst supports, have to maintain more resources than they need at any given time. All three companies offer steep discounts to customers who want to access these resources, but they come with a strict condition that the platforms can take those resources back whenever they need them — which is where Spotinst (and today’s acquisition of StratCloud) comes in.

Spotinst’s platform manages the process of acquiring spare capacity, powered by predictive AI, and seamlessly switches providers before it’s withdrawn. This ensures that cloud computing “workloads” keep functioning, while the customer still receives the best possible price.

Meanwhile, StratCloud tech is described as an “optimization platform” that buys, sells and converts reserved capacity, therefore maximizing savings for on-demand infrastructure. “This leads to lower compute payments, without engineers having to change anything in the applications and infrastructure they manage,” explains Spotinst.

Related to this, Spotinst will migrate StratCloud’s several dozen customers to the Spotinst platform, where they’ll continue to receive all of the current functionality.

Overall, the acquisition means Spotinst can now offer a complete solution for cloud users, including offering reserved instances and unused computer power so that enterprises can run any workload and support large-scale migrations on any cloud provider. In addition, Spotinst says the combined technologies give Managed Service Providers (MSPs) a comprehensive tool to optimize cloud workloads for all of their managed customers.

Spotinst claims more than 1,500 enterprise customers in 52 countries, including Samsung, N26, Duolingo, Ticketmaster and Wix. The company currently employs approximately 150 staff across its four offices and has raised $52 million in VC funding to date.

Apr
17
2019
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Salesforce is buying MapAnything, a startup that raised over $84 million

Salesforce announced today it’s buying another company built on its platform. This time it’s MapAnything, which as the name implies, helps companies build location-based workflows, something that could come in handy for sales or service calls.

The companies did not reveal the selling price, and Salesforce didn’t have anything to add beyond a brief press release announcing the deal.

“The addition of MapAnything to Salesforce will help the world’s leading brands accurately plan: how many people they need, where to put them, how to make them as productive as possible, how to track what’s being done in real time and what they can learn to improve going forward,” Salesforce wrote in the statement announcing the deal.

It was a logical acquisition on many levels. In addition to being built on the Salesforce platform, the product was sold through the Salesforce AppExchange, and over the years MapAnything has been a Salesforce SI Partner, an ISV Premier Partner, according the company.

“Salesforce’s pending acquisition of MapAnything comes at a critical time for brands. Customer Experience is rapidly overtaking price as the leading reason companies win in the market. Leading companies like MillerCoors, Michelin, Unilever, Synchrony Financial and Mohawk Industries have all seen how location-enabled field sales and service professionals can focus on the right activities against the right customers, improving their productivity, and allowing them to provide value in every interaction,” company co-founder and CEO John Stewart wrote in a blog post announcing the deal.

MapAnything boasts 1900 customers in total, and that is likely to grow substantially once it officially becomes part of the Salesforce family later this year.

MapAnything was founded in 2009, so it’s been around long enough to raise over $84 million, according to Crunchbase. Last year, we covered the company’s $33.1 million Series B round, which was led by Columbus Nova.

At the time of the funding CEO John Stewart told me that his company’s products present location data more logically on a map instead of in a table. ‘“Our Core product helps users (most often field-based sales or service workers) visualize their data on a map, interact with it to drive productivity, and then use geolocation services like our mobile app or complex routing to determine the right cadence to meet them,” Stewart told me last year.

It raised an additional $42.5 million last November. Investors included General Motors Ventures and (unsurprisingly) Salesforce Ventures.

Apr
17
2019
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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.’

Apr
17
2019
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Meet the first judges for The Europas Awards (27 June) and enter your startup now!

I’m excited to announce that The Europas Awards for European Tech Startups is really shaping up! The awards will be held on 27 June 2019, in London, U.K. on the front lawn of the Geffrye Museum in Hoxton, London — creating a fantastic and fun garden party atmosphere in the heart of London’s tech startup scene.

TechCrunch is once more the exclusive media sponsor of the awards and conference, alongside new “tech, culture & society” event creator The Pathfounder.

Here’s how to enter and be considered for the awards.

You can nominate a startup, accelerator or venture investor that you think deserves to be recognized for their achievements in the last 12 months.

*** The deadline for nominations is 1 May 2019 ***

For the 2019 awards, we’ve overhauled the categories to a set that we believe better reflects the range of innovation, diversity and ambition we see in the European startups being built and launched today. There are now 20 categories, including new additions to cover AgTech / FoodTech, SpaceTech, GovTech and Mobility Tech.

Attendees, nominees and winners will get discounts to TechCrunch Disrupt in Berlin, later this year.

The Europas “Diversity Pass”

We’d like to encourage more diversity in tech! That’s why, for the upcoming invitation-only “Pathfounder” event held on the afternoon before The Europas Awards, we’ve reserved a tranche of free tickets to ensure that we include more women and people of colour who are “pre-seed” or “seed-stage” tech startup founders. If you are a women founder or person of colour founder, apply here for a chance to be considered for one of the limited free diversity passes to the event.

The Pathfounder event will feature premium content and invitees, designed be a “fast download” into the London tech scene for European founders looking to raise money or re-locate to London.

The Europas Awards

The Europas Awards results are based on voting by expert judges and the industry itself.

But key to it is that there are no “off-limits areas” at The Europas, so attendees can mingle easily with VIPs.

The complete list of categories is here:

  1. AgTech / FoodTech
  2. CleanTech
  3. Cyber
  4. EdTech
  5. FashTech
  6. FinTech
  7. Public, Civic and GovTech
  8. HealthTech
  9. MadTech (AdTech / MarTech)
  10. Mobility Tech
  11. PropTech
  12. RetailTech
  13. Saas/Enterprise or B2B
  14. SpaceTech
  15. Tech for Good
  16. Hottest Blockchain Project
  17. Hottest Blockchain Investor
  18. Hottest VC Fund
  19. Hottest Seed Fund
  20. Grand Prix

Timeline of The Europas Awards deadlines:
* 6 March 2019 – Submissions open
* 1 May 2019 – Submissions close
* 10 May 2019 – Public voting begins
* 18 June 2019 – Public voting ends
* 27 June 2019 – Awards Bash

Amazing networking

We’re also shaking up the awards dinner itself. Instead of a sit-down gala dinner, we’ve taken feedback for more opportunities to network. Our awards ceremony this year will be in the setting of a garden lawn party, where you’ll be able to meet and mingle more easily, with free-flowing drinks and a wide-selection of street food (including vegetarian/vegan). The ceremony itself will last approximately 75 minutes, with the rest of the time dedicated to networking. If you’d like to talk about sponsoring or exhibiting, please contact dianne@thepathfounder.com

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

The Europas Awards have been going for the last 10 years, and we’re the only independent and editorially driven event to recognise the European tech startup scene. The winners have been featured in Reuters, Bloomberg, VentureBeat, Forbes, Tech.eu, The Memo, Smart Company, CNET, many others — and of course, TechCrunch.

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

• Key founders and investors attending

• Journalists from major tech titles, newspapers and business broadcasters

Meet the first set of our 20 judges:


Brent Hoberman
Executive Chairman and Co-Founder
Founders Factory


Videesha Böckle
Founding Partner
signals Venture Capital


Bindi Karia
Innovation Expert + Advisor, Investor
Bindi Ventures


Christian Hernandez Gallardo
Co-Founder and Venture Partner at White Star Capital

Apr
17
2019
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Enterprise events management platform Bizzabo scores $27M Series D

Bizzabo, the New York and Tel Aviv-based events management platform, has raised $27 million in Series D funding. Leading the round is Viola Growth, along with new investor Next47.

We’re also told that previous backers, including Pilot Growth, followed on. The new funding brings the total raised by the company to $56 million.

Originally launched in 2012 as a networking app for event attendees, Bizzabo now claims to be the leading end-to-end “Event Success Platform.” As it exists today, one way to describe the cloud-based software is akin to “Salesforce for events”: helping enterprises create, manage and execute every aspect of a live event.

As TechCrunch’s Catherine Shu previously wrote, the SaaS automates time-consuming event tasks related to email, social media and web marketing, and contact management.

There’s an increasing data play, too, with the ability to crunch and analyse event data to help event organisers garner more registrations, increase revenue and improve the overall attendee experience.

“Our vision is to provide a data-driven and personalized journey for attendees,” Bizzabo CEO and co-founder Eran Ben-Shushan tells me. “An 800-person conference should feel like 800 unique in-person event experiences. By leveraging hundreds of data points throughout the attendee journey, our customers can deliver extremely personalised promotion campaigns, custom-tailor the event agenda and proactively cater to each attendee action.”

As an example, Ben-Shushan says an attendee at a user conference can receive recommended sessions, business introductions and even sponsored offers based on interest and intent expressed before, during and after the event.

To that end, Bizzabo says its Series D will be used to expand the platform’s capabilities and continue to help enterprise and mid-market organizations “build data-driven, personalized and engaging professional event experiences.” That will include growing its R&D and own marketing teams, adding to the more than 120 current employees in its New York and Tel Aviv offices.

Ben-Shushan reckons that on average 25 percent of a B2B company’s marketing budget is spent on live events. This has resulted in the number of professional events increasing exponentially each year, such as conferences and seminars, trade shows or other experiences.

However, it remains a challenge to create, manage, market and measure the success of events while maximizing ROI — which is where Ben-Shushan says Bizzabo comes in.

Bizzabo’s better-known customers include Inbound, SaaStr, Forbes, Dow Jones, Gainsight and Drift. Meanwhile, the event management space as a whole is said to be worth $500 billion.

Apr
16
2019
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Leapwork raises $10M for its easy process automation platform, plans US expansion

Most work involving computers is highly repetitive, which is why companies regularly have developers write code to automate repetitive tasks. But that process is not very scalable. Ideally, individuals across an entire business would be able to create automated tasks, not just developers. This problem has created a new category called process automation. Startups in this space are all about making companies more efficient.
Most of the existing tools on the market are code-based and complicated, which tends to make it tough for non-technical people to automate anything. Ideally, you would allow them to train software robots to handle repetitive and mundane tasks.

This is the aim of Leapwork, which today announces a Series A investment of $10 million, from London’s DN Capital and e.ventures out of Berlin. The company already has many clients, from tier-one banks and global healthcare firms to aerospace and software companies, and now plans to expand in the U.S. Its customers typically already have a lot of experience with tools such as Tricentis, MicroFocus, UiPath and BluePrism, but employ Leapwork when code-based tools prove limiting.

Founded in 2015 and launched in April 2017, Leapwork has an entirely visual system, backed by a modern tech stack. Instead of using developer time, staff automate tasks themselves, without writing any code, with a simple user interface that is likened to learning PowerPoint or Excel. Leapwork estimates it can save 75 percent of an employee’s time.

Christian Brink Frederiksen, Leapwork’s CEO and co-founder said: “About half of our business comes from the U.S. and this investment will enable us to serve those customers better, as well as reaching new ones.”

Leapwork has found traction in the areas of software testing, data migration and robotic process automation in finance and healthcare. Based in Copenhagen, Denmark, Leapwork has offices in London, U.K., San Francisco, USA, Minsk, Belarus, and Gurugram, India.

Thomas Rubens, of DN Capital, said: “From the outset we were impressed by Leapwork’s product, which we believe will change the automation landscape. Every company has repetitive tasks that could be automated and few have the developer resource to make it happen.”

The founders began in June 2015 in Copenhagen, Denmark, after having worked for almost two decades in enterprise software and business-critical IT. They launched their first pilot in July 2016 and, after working with Global2000 pilot customers in the U.S. and Europe, went live with the Leapwork automation platform in March 2017.

Prior to this funding the company was bootstrapped by the founders, as both had previous successful exits.

Apr
09
2019
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Accenture announces intent to buy French cloud consulting firm

As Google Cloud Next opened today in San Francisco, Accenture announced its intent to acquire Cirruseo, a French cloud consulting firm that specializes in Google Cloud intelligence services. The companies did not share the terms of the deal.

Accenture says that Cirruseo’s strength and deep experience in Google’s cloud-based artificial intelligence solutions should help as Accenture expands its own AI practice. Google TensorFlow and other intelligence solutions are a popular approach to AI and machine learning, and the purchase should help give Accenture a leg up in this area, especially in the French market.

“The addition of Cirruseo would be a significant step forward in our growth strategy in France, bringing a strong team of Google Cloud specialists to Accenture,” Olivier Girard, Accenture’s geographic unit managing director for France and Benelux said in a statement.

With the acquisition, should it pass French regulatory muster, the company would add a team of 100 specialists trained in Google Cloud and G Suite to the an existing team of 2,600 Google specialists worldwide.

The company sees this as a way to enhance its artificial intelligence and machine learning expertise in general, while giving it a much stronger market placement in France in particular and the EU in general.

As the company stated, there are some hurdles before the deal becomes official. “The acquisition requires prior consultation with the relevant works councils and would be subject to customary closing conditions,” Accenture indicated in a statement. Should all that come to pass, then Cirruseo will become part of Accenture.

Apr
08
2019
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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.

Apr
03
2019
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WeWork acquires Managed by Q

Managed by Q, the office management platform based out of New York, has today been acquired by The We Company, formerly known as WeWork.

Financial terms were not disclosed. The WSJ reports that it was a cash and stock deal. Managed by Q, which has 500 employees, will remain as a wholly owned separate entity and CEO Dan Teran will remain following the acquisition to join WeWork leadership.

Upon its latest financing in January, Managed by Q was valued at $249 million, according to PitchBook.

Here’s what Teran had to say in a prepared statement:

We are excited for this incredible opportunity to deepen our commitment to realizing our ambitious vision of building an operating system for the built world. WeWork is uniquely positioned to invest in workplace technology and services, and I look forward to partnering with their team to build more robust products for our clients and create a global platform to help companies push the bounds on our collective potential.

Managed by Q was founded in 2014 with a plan to change the way that offices run. The platform allowed office managers and other decision-makers to handle supply stocking, cleaning, IT support and other non-work related tasks in the office by simply using the Managed by Q dashboard. Managed by Q serves the demand through a combination of in-house operators and third-party vendors and service providers.

Notably, Managed by Q took a different tack than most other logistics companies, employing their operators as W2 workers instead of 1099 contractors. Moreover, Managed by Q offered a stock option plan to operators that gives 5 percent of the company back to those employees.

The company has raised a total of $128.25 million since launch from investors such as GV, RRE and Kapor Capital. Managed by Q currently serves the markets of New York, San Francisco, Los Angeles, Chicago, Boston and Silicon Valley, with plans to aggressively expand following the acquisition, according to the WSJ.

Not only has Managed by Q swiftly matured into a big player in the NY tech scene and Future of Work space, but it has also fostered interesting competition and consolidation within the space. Managed by Q has itself made several acquisitions, including the purchase of NVS (an office space planning and project management service) and Hivy (an internal comms tool to let employees tell office managers what they need).

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