Oct
24
2019
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Grafana Labs nabs $24M Series A for open source-based data analytics stack

Grafana Labs, the commercial company built to support the open-source Grafana project, announced a healthy $24 million Series A investment today. Lightspeed Venture Partners led the round with participation from Lead Edge Capital.

Company CEO and co-founder Raj Dutt says the startup started life as a way to offer a commercial layer on top of the open-source Grafana tool, but it has expanded and now supports other projects, including Loki, an open-source monitoring tool not unlike Prometheus, which the company developed last year.

All of this in the service of connecting to data sources and monitoring data. “Grafana has always been about connecting data together no matter where it lives, whether it’s in a proprietary database, on-prem database or cloud database. There are over 42 data sources that Grafana connects together,” Dutt explained.

But the company has expanded far beyond that. As it describes the product set, “Our products have begun to evolve to unify into a single offering: the world’s first composable open-source observability platform for metrics, logs and traces. Centered around Grafana.” This is exactly where other monitoring and logging tools like Elastic, New Relic and Splunk have been heading this year. The term “observability” is a term that’s been used often to describe these combined capabilities of metrics, logging and tracing.

Grafana Labs is the commercial arm of the open-source projects, and offers a couple of products built on top of these tools. First of all it has Grafana Enterprise, a package that includes enterprise-focused data connectors, enhanced authentication and security and enterprise-class support over and above what the open-source Grafana tool offers.

The company also offers a SaaS version of the Grafana tool stack, which is fully managed and takes away a bunch of the headaches of trying to download raw open-source code, install it, manage it and deal with updates and patches. In the SaaS version, all of that is taken care of for the customer for a monthly fee.

Dutt says the startup took just $4 million in external investment over the first five years, and has been able to build a business with 100 employees and 500 customers. He is particularly proud of the fact that the company is cash flow break-even at this point.

Grafana Labs decided the time was right to take this hefty investment and accelerate the startup’s growth, something they couldn’t really do without a big cash infusion. “We’ve seen this really virtuous cycle going with value creation in the community through these open-source projects that builds mind share, and that can translate into building a sustainable business. So we really want to accelerate that, and that’s the main reason behind the raise.”

Sep
25
2019
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Arceo.ai raises $37 million to expand cyber insurance coverage and access

Critical cyber attacks on both businesses and individuals have been grabbing headlines at an alarming rate. Cybersecurity has moved from a background risk for enterprises to a critical day-to-day threat to business operations, forcing executive teams to pour time and hundreds of billions in capital into monitoring and prevention efforts.

Yet even as investment in security ticks up, the frequency and cost of cybercrime to businesses continues to rapidly accelerate, with the World Economic Forum estimating the economic loss due to cybercrime could reach $3 trillion by 2020.

More companies are now turning to cyber insurance as a means of mitigating financial exposure. However, for traditional insurers, cybersecurity remains a relatively nascent and unfamiliar issue, requiring risk-assessment data points and methodologies largely different from those seen in traditional insurance products. As a result, businesses often struggle to get the scale of cybersecurity coverage they require.

Arceo.ai is hoping to expand the size and scope of the cyber insurance market for both insurers and companies, by providing insurers with effective real-time data, analytics and context, necessary for safely and efficiently underwrite cyber risk.

This morning, Arceo took a major step in achieving that goal, announcing the company has raised a $37 million round of funding led by Lightspeed Venture Partners and Founders Fund with participation from CRV and  UL Ventures.

Arceo logoUsing an expansive set of global sources across a customer’s digital footprint, Arceo.AI collects internal, external and macro cyber risk data which it uses to evaluate a company’s security and cyber risk management behavior. By automating the data collection process and connecting it with insurer underwriting processes, Arceo is able to keep its data and policy assessments up to date in real-time and enable faster, more efficient quotes.

A vital component of Arceo’s platform is its analytics offering. Using patented data science and cyber risk models, Arceo generates analytics-driven insights for insurance carriers, brokers and end-insured customers. For end-insured customers, Arceo helps companies understand whether they’re using the best mitigation strategies by providing policy recommendations and industry benchmarking to help contextualize day-to-day cyber behavior and hygiene. For underwriters, Arceo can provide specific insurance recommendations based on particular policy coverages.

Ultimately, Arceo looks to provide both insurers and the insured with actionable answers to key questions such as how one assesses cyber risk, how one determines what risks can be mitigated with technology alone, how one knows which systems are best and whether those systems are being used appropriately.

Raj Shah

Arceo.ai Chairman Raj Shah. Image via Arceo.ai

In an interview with TechCrunch, Arceo Chairman Raj Shah explained that the company’s background expertise, proprietary data systems, and deep pedigree in both the security and insurance truly differentiate Arceo from competing solutions. For starters, both Shah and Arceo co-founder and CEO Vishaal Hariprasad have spent close to the entirety of their careers in national security and cybersecurity. Hariprasad started his career in the Airforce’s first cohort of cyber warfare officers, before teaming up with Shah to start Morta Security in 2012, a security startup the two sold to Palo Alto networks in just roughly two years.

After selling the company, Shah and Hariprasad remained in the security world before realizing that there was a natural intersection between security and insurance, and a real opportunity for risk transfer solutions.

“Having studied the market, we saw that people are spending more and more dollars on cybersecurity products… There are hundreds of thousands of new vendors every year… Spend is going up, but we don’t feel any safer!” Shah told TechCrunch.

“That’s when we said ‘Hey, we need to move beyond just thinking about technology points and products, and think about holistic cyber risk management.’ And this is where insurance has historically done a great job. Putting a price on behavior and making people think and letting them take risks… From life and death and health to buyers and property and casualty. And so cyber is that next class risk… So that’s really why we started the business. We wanted to provide a real way to manage the cyber stress that they’re facing and that will impact every single one of our digital lives.”

Since the company’s founding, Raj and Vishaal have been joined by a deep network of cyber and insurance experts. Today, Arceo also announced that Hemant Shah, founder and former CEO of catastrophe risk modeling company RMS has joined Arceo’s Board of Directors. Additionally, earlier this month, the company announced that Mario Vitale, the former CEO of publically-traded insurance companies Willis Towers Watson and Zurich Insurance Group, would be joining the Arceo team as the company’s President.

The company noted that participation from high-profile industry vets like Hemant and Mario not only further advance Arceo’s competitive advantage but also acts as another major validation of the company’s future and work to date.

According to Arceo Chairman Raj Shah, after years of investing in R&D, the latest funds will be used towards expansion efforts and scaling Arceo to the broader ecosystem of insurance and brokers. Longer-term, the company hopes to offer the most complete combined cybersecurity and risk transfer solution to insurers and the insured, easing the stress around cyber threats for both enterprises and individuals and ultimately improving broader cyber resiliency.

If you’d like to hear more from Arceo’s Raj Shah, Raj will also be joining us this year on the Extra Crunch stage at TechCrunch Disrupt SF, where he’ll discuss how founders and companies should think about potential US government investment. Grab tickets here and we hope to see you there!

Jul
30
2019
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Confluera snags $9M Series A to help stop cyberattacks in real time

Just yesterday, we experienced yet another major breach when Capital One announced it had been hacked and years of credit card application information had been stolen. Another day, another hack, but the question is how can companies protect themselves in the face of an onslaught of attacks. Confluera, a Palo Alto startup, wants to help with a new tool that purports to stop these kinds of attacks in real time.

Today the company, which launched last year, announced a $9 million Series A investment led by Lightspeed Venture Partners . It also has the backing of several influential technology execs, including John W. Thompson, who is chairman of Microsoft and former CEO at Symantec; Frank Slootman, CEO at Snowflake and formerly CEO at ServiceNow; and Lane Bess, former CEO of Palo Alto Networks.

What has attracted this interest is the company’s approach to cybersecurity. “Confluera is a real-time cybersecurity company. We are delivering the industry’s first platform to deterministically stop cyberattacks in real time,” company co-founder and CEO Abhijit Ghosh told TechCrunch.

To do that, Ghosh says, his company’s solution watches across the customer’s infrastructure, finds issues and recommends ways to mitigate the attack. “We see the problem that there are too many solutions which have been used. What is required is a platform that has visibility across the infrastructure, and uses security information from multiple sources to make that determination of where the attacker currently is and how to mitigate that,” he explained.

Microsoft chairman John Thompson, who is also an investor, says this is more than just real-time detection or real-time remediation. “It’s not just the audit trail and telling them what to do. It’s more importantly blocking the attack in real time. And that’s the unique nature of this platform, that you’re able to use the insight that comes from the science of the data to really block the attacks in real time.”

It’s early days for Confluera, as it has 19 employees and three customers using the platform so far. For starters, it will be officially launching next week at Black Hat. After that, it has to continue building out the product and prove that it can work as described to stop the types of attacks we see on a regular basis.

Jul
23
2019
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Arrcus snags $30M Series B as it tries to disrupt networking biz

Arrcus has a bold notion to try and take on the biggest names in networking by building a better networking management system. Today it was rewarded with a $30 million Series B investment led by Lightspeed Venture Partners.

Existing investors General Catalyst and Clear Ventures also participated. The company previously raised a seed and Series A totaling $19 million, bringing the total raised to date to $49 million, according to numbers provided by the company.

Founder and CEO Devesh Garg says the company wanted to create a product that would transform the networking industry, which has traditionally been controlled by a few companies. “The idea basically is to give you the best-in-class [networking] software with the most flexible consumption model at the lowest overall total cost of ownership. So you really as an end customer have the choice to choose best-in-class solutions,” Garg told TechCrunch.

This involves building a networking operating system called ArcOS to run the networking environment. For now, that means working with manufacturers of white-box solutions and offering some combination of hardware and software, depending on what the customer requires. Garg says that players at the top of the market like Cisco, Arista and Juniper tend to keep their technical specifications to themselves, making it impossible to integrate ArcOS with those companies at this time, but he sees room for a company like Arrcus .

“Fundamentally, this is a very large marketplace that’s controlled by two or three incumbents, and when you have lack of competition you get all of the traditional bad behavior that comes along with that, including muted innovation, rigidity in terms of the solutions that are provided and these legacy procurement models, where there’s not much flexibility with artificially high pricing,” he explained.

The company hopes to fundamentally change the current system with its solutions, taking advantage of unbranded hardware that offers a similar experience but can run the Arrcus software. “Think of them as white-box manufacturers of switches and routers. Oftentimes, they come from Taiwan, where they’re unbranded, but it’s effectively the same components that are used in the same systems that are used by the [incumbents],” he said.

The approach seems to be working, as the company has grown to 50 employees since it launched in 2016. Garg says that he expects to double that number in the next six-nine months with the new funding. Currently the company has double-digit paying customers and more than 20 in various stages of proofs of concepts, he said.

Jul
05
2019
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A 23-year-old B2B company has shown how keen India is for tech IPOs

Away from the limelight of the press and the frenzy of fundraising, a tech startup in India has achieved a feat that few of its peers have managed: going public.

IndiaMART, the country’s largest online platform for selling products directly to businesses, raised nearly $70 million in a rare tech IPO for India this week.

The milestone for the 23-year-old firm is so uncommon for India’s otherwise burgeoning startup ecosystem that, beyond being over-subscribed 36 times, pent up demand for IndiaMART’s stock saw its share price pop 40% on its first day of trading on National Stock Exchange on Thursday — a momentum that it sustained on Friday.

The stock ended Friday at Rs 1326 ($19.3), compared to its issue price of Rs 973 ($14.2).

IndiaMART is the first business-to-business e-commerce firm to go public in India. Its IPO also marks the first listing for a firm following the May reelection of Narendra Modi as the nation’s Prime Minister and the months-long drought that led to it.

Accounting firm EY said it expects more companies from India to follow suit and file for IPO in the coming months.

“Now that national elections are over and favorable results secured, IPO activity is expected to gain momentum in H2 2019 (second half of the year). Companies that had filed their offer documents with the Indian stock markets regulator during H2 2018 and Q1 2019 may finally come to market in the months ahead,” it said in a statement (PDF).

IndiaMART’s origin

The fireworks of the IPO are just as impressive as IndiaMART’s journey.

The startup was founded in 1996 and for the first 13 years, it focused on exports to customers abroad, but it has since modernized its business following the wave of the internet.

“The thesis was, in 1996, there were no computers or internet in India. The information about India’s market to the West was very limited,” Dinesh Agarwal, co-founder and CEO of IndiaMART, told TechCrunch in an interview.

Until 2008, IndiaMART was fully bootstrapped and profitable with $10 million in revenue, Agarwal said. But things started to dramatically change in that year.

“The Indian rupee became very strong against the dollar, which dwindled the exports business. This is also when the stock market was collapsing in the West, which further hurt the exports demand,” he explained.

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Dinesh Agarwal, founder and CEO of IndiaMart.com, poses for a profile shot on July 29, 2015 in Noida, India.

By this time, millions of people in India were on the internet and, with tens of millions of people owning a feature phone, the conditions of the market had begun to shift towards digital.

“This is when we decided to pursue a completely different path. We started to focus on the domestic market,” Agarwal said.

Over the last 10 years, IndiaMART has become the largest e-commerce platform for businesses with about 60% market share, according to research firm KPMG. It handles 97,000 product categories — ranging from machine parts, medical equipment and textile products to cranes — and has amassed 83 million buyers and 5.5 million suppliers from thousands of towns and cities of India.

According to the most recent data published by the Indian government, there are about 50 to 60 million small and medium-sized businesses in India, but only around 10 million of them have any presence on the web. Some 97% of the top 50 companies listed on National Stock Exchange use IndiaMART’s services, Agarwal said.

That’s not to say that the transition to the current day was a straightforward process for the company. IndiaMART tried to capitalize on its early mover advantage with a stream of new services which ultimately didn’t reap the desired rewards.

In 2002, it launched a travel portal for businesses. A year later, it launched a business verification service. It also unveiled a payments platform called ABCPayments. None of these services worked and the firm quickly moved on.

Part of IndiaMART’s success story is its firm leadership and how cautiously it has raised and spent its money, Rajesh Sawhney, a serial angel investor who sits on IndiaMART’s board, told TechCrunch in an interview.

IndiaMART, which employs about 4,000 people, is operationally profitable as of the financial year that ended in March this year. It clocked some $82 million in revenue in the year. It has raised about $32 million to date from Intel Capital, Amadeus Capital Partners and Quona Capital. (Notably, Agarwal said that he rejected offers from VCs for a very long time.)

The firm makes most of its revenue from subscriptions it sells to sellers. A subscription gives a seller a range of benefits including getting featured on storefronts.

Where the industry stands

There are only a handful of internet companies in India that have gone public in the last decade. Online travel service MakeMyTrip went public in 2010. Software firm Intellect Design Arena and e-commerce store Koovs listed in 2014, then travel portal Yatra and e-commerce firm Infibeam followed two years later.

India has consistently attracted billions of dollars in funding in recent years and produced many unicorns. Those include Flipkart, which was acquired by Walmart last year for $16 billion, Paytm, which has raised more than $2 billion to date, Swiggy, which has bagged $1.5 billion to date, Zomato, which has raised $750 million, and relatively new entrant Byju’s — but few of them are nearing profitability and most likely do not see an IPO in their immediate future.

In that context, IndiaMART may set a benchmark for others to follow.

“The fact that we have a homegrown digital commerce business, serving both the urban and smaller cities, and having struggled and been around for so long building a very difficult business and finally going public in the local exchange is a phenomenal story,” Ganesh Rengaswamy, a partner at Quona Capital, told TechCrunch in an interview. “It keeps the story of India tech, to the Western world, going.”

Generally, it is agreed that there are too few IPOs in India and the industry can benefit from momentum and encouragement of high profile and successful public listings.

“There is a firm consensus that in India, markets will prefer only the IPOs of companies that are profitable. And investors in India might not value those companies. Both of these issues are being addressed by IndiaMART,” said Sawhney.

“We need 30 to 40 more IPOs. This will also mean that the stock market here has matured and understands the tech stocks and how it is different from other consumer stocks they usually handle. More tech companies going public would also pave the way for many to explore stock exchanges outside of India.

“Indian market is ready for more tech stocks. We just need to get more companies to go out there,” Sawhney added, although he did predict that it will take a few years before the vast majority of leading startups are ready for the public market.

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The Indian government, for its part, this week announced a number of incentives to uplift the “entrepreneurial spirit” in the nation.

Finance minister Nirmala Sitharaman said the government would ease foreign direct investment rules for certain sectors — including e-commerce, food delivery, grocery — and improve the digital payments ecosystem. Sitharaman, who is the first woman to hold this position in India, said the government would also launch a TV program to help startups connect with venture capitalists.

The path ahead for IndiaMART

IndiaMART has managed to build a sticky business that compels more than 55% of its customers to come back to the platform and make another transaction within 90 days, Agarwal — its CEO — said. With some 3,500 of its 4,000 employees classified as sales executives, the company is aggressive in its pursuit of new customers. Moving forward, that will remain one of its biggest focuses, according to Agarwal.

“Most of our time still goes into educating MSMEs on how to use the internet. That was a challenge 20 years ago and it remains a challenge today,” he told TechCrunch.

In recent years, IndiaMART has begun to expand its suite of offerings to its business customers in a bid to increase the value they get from its platform and thus increase their reliance on its service.

IndiaMART has built a customer relationship management (CRM) tool so that customers need not rely on spreadsheets or other third-party services.

“We will continue to explore more SaaS offerings and look into solving problems in accounting, invoice management and other areas,” said Agarwal.

The firm also recently started to offer payment facilitation between buyers and sellers through a PayPal -like escrow system.

“This will bridge the trust gap between the entities and improve an MSME’s ability to accept all kinds of payment options including the new age offerings.”

There’s an elephant in the room, however.

A bigger challenge that looms for IndiaMART is the growing interest of Amazon and Walmart in the business-to-business space. Several startups including Udaan — which has raised north of $280 million from DST Global and Lightspeed Venture Partners — have risen up in recent years and are increasingly expanding their operations. Agarwal did not seem much worried, however, telling TechCrunch that he believes that his prime competition is more focused on B2C and serving niche audiences. Besides he has $100 million in the bank himself.

Indeed, as Quona Capital’s Rengaswamy astutely noted, competition is not new for IndiaMART — the company has survived and thrived more than two decades of it.

“Alibaba came and gave up,” he noted.

An important — and unanswered question — that follows the successful IPO is how IndiaMART’s stock will fare over the coming months. A glance to the U.S. — where hyped companies like Uber, Lyft and others have seen prices taper off — shows clearly that early demand and sustained stock performance are not one and the same.

Nobody knows at this point, and the added complexity at play is that the concept of a tech IPO is so uncommon in India that there is no definitive answer to it… yet. But IndiaMART’s biggest achievement may be that it sets the pathway that many others will follow.

Jan
24
2017
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Why the $3.7 billion AppDynamics acquisition happened right before IPO

appdynamics Applications management company AppDynamics was just wrapping up the final touches on its initial public offering when it learned that Cisco was interested in discussing a potential deal. Preliminary talks were abandoned in November, but the discussion just picked up again last week. The deal was announced today and the IPO was slated to price tomorrow. Although many companies seek… Read More

Jan
24
2017
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TripActions raises $14.6 million for its corporate travel booking tool

luxury vacation Corporations could be a lot more efficient with their travel spend, believes booking platform TripActions. Today, the company is announcing $14.6 million in funding from Zeev Ventures and Lightspeed Venture Partners to fulfill that mission. Based on the idea that people spend more money when it’s on their company’s dime, the startup offers employees rewards for staying under a… Read More

Aug
10
2016
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Innovaccer raises $15.6M to give businesses one stop for all their data

innovaccer Abhinav Shashank was working on an academic project at Harvard with his colleagues Kanav Hasija and Sandeep Gupta — figuring out how to pool together large data sets from hundreds of different sources and APIs and manage them — when his business colleagues started asking him to help apply those tools.
The result was Innovaccer, a set of software that mashes together data from… Read More

Mar
14
2016
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Alooma scores $11.2 million Series A to solve data science pain points

Data scientist in front of giant board with mathematical formulas. Alooma, an Israeli startup that helps companies process and work with big data in real time delivered as a cloud service, announced an $11.2 million Series A round today led by Lightspeed Venture Partners and Sequoia Capital. The product focuses on the people working with data like data scientists and end users with advanced degrees in mathematics and machine learning, rather than… Read More

Sep
15
2015
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Datos IO Raises $12.5M Series A Round For Its Big Data Recovery Platform

When you have a lot of data in your data warehouse, NoSQL database or cloud-native data store, recovering all of that data after it has become corrupted or inaccurate is difficult. Datos IO, which was founded by a group of veteran Data Domain, Veritas and IBM researchers, is now trying to make it easier to recover data from these big data services. The company is launching out of stealth… Read More

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