Jul
11
2019
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OneTrust raises $200M at a $1.3B valuation to help organizations navigate online privacy rules

GDPR, and the newer California Consumer Privacy Act, have given a legal bite to ongoing developments in online privacy and data protection: it’s always good practice for companies with an online presence to take measures to safeguard people’s data, but now failing to do so can land them in some serious hot water.

Now — to underscore the urgency and demand in the market — one of the bigger companies helping organizations navigate those rules is announcing a huge round of funding. OneTrust, which builds tools to help companies navigate data protection and privacy policies both internally and with its customers, has raised $200 million in a Series A led by Insight that values the company at $1.3 billion.

It’s an outsized round for a Series A, being made at an equally outsized valuation — especially considering that the company is only three years old — but that’s because of the wide-ranging nature of the issue, according to CEO Kabir Barday, and OneTrust’s early moves and subsequent pole position in tackling it.

“We’re talking about an operational overhaul in a company’s practices,” Barday said in an interview. “That requires the right technology and reach to be able to deliver that at a low cost.” Notably, he said that OneTrust wasn’t actually in search of funding — it’s already generating revenue and could have grown off its own balance sheet — although he noted that having the capitalization and backing sends a signal to the market and in particular to larger organizations of its stability and staying power.

Currently, OneTrust has around 3,000 customers across 100 countries (and 1,000 employees), and the plan will be to continue to expand its reach geographically and to more businesses. Funding will also go toward the company’s technology: it already has 50 patents filed and another 50 applications in progress, securing its own IP in the area of privacy protection.

OneTrust offers technology and services covering three different aspects of data protection and privacy management.

Its Privacy Management Software helps an organization manage how it collects data, and it generates compliance reports in line with how a site is working relative to different jurisdictions. Then there is the famous (or infamous) service that lets internet users set their preferences for how they want their data to be handled on different sites. The third is a larger database and risk management platform that assesses how various third-party services (for example advertising providers) work on a site and where they might pose data protection risks.

These are all provided either as a cloud-based software as a service, or an on-premises solution, depending on the customer in question.

The startup also has an interesting backstory that sheds some light on how it was founded and how it identified the gap in the market relatively early.

Alan Dabbiere, who is the co-chairman of OneTrust, had been the chairman of Airwatch — the mobile device management company acquired by VMware in 2014 (Airwatch’s CEO and founder, John Marshall, is OneTrust’s other co-chairman). In an interview, he told me that it was when they were at Airwatch — where Barday had worked across consulting, integration, engineering and product management — that they began to see just how a smartphone “could be a quagmire of privacy issues.”

“We could capture apps that an employee was using so that we could show them to IT to mitigate security risks,” he said, “but that actually presented a big privacy issue. If [the employee] has dyslexia [and uses a special app for it] or if the employee used a dating app, you’ve now shown things to IT that you shouldn’t have.”

He admitted that in the first version of the software, “we weren’t even thinking about whether that was inappropriate, but then we quickly realised that we needed to be thinking about privacy.”

Dabbiere said that it was Barday who first brought that sensibility to light, and “that is something that we have evolved from.” After that, and after the VMware sale, it seemed a no-brainer that he and Marshall would come on to help the new startup grow.

Airwatch made a relatively quick exit, I pointed out. His response: the plan is to stay the course at OneTrust, with a lot more room for expansion in this market. He describes the issues of data protection and privacy as “death by 1,000 cuts.” I guess when you think about it from an enterprising point of view, that essentially presents 1,000 business opportunities.

Indeed, there is obvious growth potential to expand not just its funnel of customers, but to add more services, such as proactive detection of malware that might leak customers’ data (which calls to mind the recently fined breach at British Airways), as well as tools to help stop that once identified.

While there are a million other companies also looking to fix those problems today, what’s interesting is the point from which OneTrust is starting: by providing tools to organizations simply to help them operate in the current regulatory climate as good citizens of the online world.

This is what caught Insight’s eye with this investment.

“OneTrust has truly established themselves as leaders in this space in a very short time frame, and are quickly becoming for privacy professionals what Salesforce became for salespeople,” said Richard Wells of Insight. “They offer such a vast range of modules and tools to help customers keep their businesses compliant with varying regulatory laws, and the tailwinds around GDPR and the upcoming CCPA make this an opportune time for growth. Their leadership team is unparalleled in their ambition and has proven their ability to convert those ambitions into reality.”

Wells added that while this is a big round for a Series A it’s because it is something of an outlier — not a mark of how Series A rounds will go soon.

“Investors will always be interested in and keen to partner with companies that are providing real solutions, are already established and are led by a strong group of entrepreneurs,” he said in an interview. “This is a company that has the expertise to help solve for what could be one of the greatest challenges of the next decade. That’s the company investors want to partner with and grow, regardless of fund timing.”

Mar
19
2019
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The top 10 startups from Y Combinator W19 Demo Day 1

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

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

Ravn

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

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

Middesk

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

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

Convictional

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

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

Dyneti Technologies

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

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

AmpUp

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

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

Flockjay

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

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

Deel

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

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

Glide

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

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

Docucharm

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

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

Flower Co

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

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

Honorable Mentions

Atomic Alchemy – Filling the shortage of nuclear medicine

Yourchoice – Omni-gender non-hormonal birth control

Prometheus – Turning CO2 into gas

Lumos – Medical search engine for doctors

Heart Aerospace – Regional electric planes

Boundary Layer Technologies – Super-fast container ships

Additional reporting by Kate Clark, Greg Kumparak and Lucas Matney

Nov
30
2018
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Enterprise AR is an opportunity to ‘do well by doing good,’ says General Catalyst

A founder-investor panel on augmented reality (AR) technology here at TechCrunch Disrupt Berlin suggests growth hopes for the space have regrouped around enterprise use-cases, after the VR consumer hype cycle landed with yet another flop in the proverbial ‘trough of disillusionment’.

Matt Miesnieks, CEO of mobile AR startup 6d.ai, conceded the space has generally been on another downer but argued it’s coming out of its third hype cycle now with fresh b2b opportunities on the horizon.

6d.ai investor General Catalyst‘s Niko Bonatsos was also on stage, and both suggested the challenge for AR startups is figuring out how to build for enterprises so the b2b market can carry the mixed reality torch forward.

“From my point of view the fact that Apple, Google, Microsoft, have made such big commitments to the space is very reassuring over the long term,” said Miesnieks. “Similar to the smartphone industry ten years ago we’re just gradually seeing all the different pieces come together. And as those pieces mature we’ll eventually, over the next few years, see it sort of coalesce into an iPhone moment.”

“I’m still really positive,” he continued. “I don’t think anyone should be looking for some sort of big consumer hit product yet but in verticals in enterprise, and in some of the core tech enablers, some of the tool spaces, there’s really big opportunities there.”

Investors shot the arrow over the target where consumer VR/AR is concerned because they’d underestimated how challenging the content piece is, Bonatsos suggested.

“I think what we got wrong is probably the belief that we thought more indie developers would have come into the space and that by now we would probably have, I don’t know, another ten Pokémon-type consumer massive hit applications. This is not happening yet,” he said.

“I thought we’d have a few more games because games always lead the adoption to new technology platforms. But in the enterprise this is very, very exciting.”

“For sure also it’s clear that in order to have the iPhone moment we probably need to have much better hardware capabilities,” he added, suggesting everyone is looking to the likes of Apple to drive that forward in the future. On the plus side he said current sentiment is “much, much much better than what it was a year ago”.


Discussing potential b2b applications for AR tech one idea Miesnieks suggested is for transportation platforms that want to link a rider to the location of an on-demand and/or autonomous vehicle.

Another area of opportunity he sees is working with hardware companies — to add spacial awareness to devices such as smartphones and drones to expand their capabilities.

More generally they mentioned training for technical teams, field sales and collaborative use-cases as areas with strong potential.

“There are interesting applications in pharma, oil & gas where, with the aid of the technology, you can do very detailed stuff that you couldn’t do before because… you can follow everything on your screen and you can use your hands to do whatever it is you need to be doing,” said Bonatsos. “So that’s really, really exciting.

“These are some of the applications that I’ve seen. But it’s early days. I haven’t seen a lot of products in the space. It’s more like there’s one dev shop is working with the chief innovation officer of one specific company that is much more forward thinking and they want to come up with a really early demo.

“Now we’re seeing some early stage tech startups that are trying to attack these problems. The good news is that good dollars is being invested in trying to solve some of these problems — and whoever figures out how to get dollars from the… bigger companies, these are real enterprise businesses to be built. So I’m very excited about that.”

At the same time, the panel delved into some of the complexities and social challenges facing technologists as they try to integrate blended reality into, well, the real deal.

Including raising the spectre of Black Mirror style dystopia once smartphones can recognize and track moving objects in a scene — and 6d.ai’s tech shows that’s coming.

Miesnieks showed a brief video demo of 3D technology running live on a smartphone that’s able to identify cars and people moving through the scene in real time.

“Our team were able to solve this problem probably a year ahead of where the rest of the world is at. And it’s exciting. If we showed this to anyone who really knows 3D they’d literally jump out of the chair. But… it opens up all of these potentially unintended consequences,” he said.

“We’re wrestling with what might this be used for. Sure it’s going to make Pokémon game more fun. It could also let a blind person walk down the street and have awareness of cars and people and they may not need a cane or something.

“But it could let you like tap and literally have people be removed from your field of view and so you only see the type of people that you want to look at. Which can be dystopian.”

He pointed to issues being faced by the broader technology industry now, around social impacts and areas like privacy, adding: “We’re seeing some of the social impacts of how this stuff can go wrong, even if you assume good intentions.

“These sort of breakthroughs that we’re having are definitely causing us to be aware of the responsibility we have to think a bit more deeply about how this might be used for the things we didn’t expect.”

From the investor point of view Bonatsos said his thesis for enterprise AR has to be similarly sensitive to the world around the tech.

“It’s more about can we find the domain experts, people like Matt, that are going to do well by doing good. Because there are a tonne of different parameters to think about here and have the credibility in the market to make it happen,” he suggested, noting: “It‘s much more like traditional enterprise investing.”

“This is a great opportunity to use this new technology to do well by doing good,” Bonatsos continued. “So the responsibility is here from day one to think about privacy, to think about all the fake stuff that we could empower, what do we want to do, what do we want to limit? As well as, as we’re creating this massive, augmented reality, 3D version of the world — like who is going to own it, and share all this wealth? How do we make sure that there’s going to be a whole new ecosystem that everybody can take part of it. It’s very interesting stuff to think about.”

“Even if we do exactly what we think is right, and we assume that we have good intentions, it’s a big grey area in lots of ways and we’re going to make lots of mistakes,” conceded Miesnieks, after discussing some of the steps 6d.ai has taken to try to reduce privacy risks around its technology — such as local processing coupled with anonymizing/obfuscating any data that is taken off the phone.

“When [mistakes] happen — not if, when — all that we’re going to be able to rely on is our values as a company and the trust that we’ve built with the community by saying these are our values and then actually living up to them. So people can trust us to live up to those values. And that whole domain of startups figuring out values, communicating values and looking at this sort of abstract ‘soft’ layer — I think startups as an industry have done a really bad job of that.

“Even big companies. There’d only a handful that you could say… are pretty clear on their values. But for AR and this emerging tech domain it’s going to be, ultimately, the core that people trust us.”

Bonatsos also pointed to rising political risk as a major headwind for startups in this space — noting how China’s government has decided to regulate the gaming market because of social impacts.

“That’s unbelievable. This is where we’re heading with the technology world right now. Because we’ve truly made it. We’ve become mainstream. We’re the incumbents. Anything we build has huge, huge intended and unintended consequences,” he said.

“Having a government that regulates how many games that can be built or how many games can be released — like that’s incredible. No company had to think of that before as a risk. But when people are spending so many hours and so much money on the tech products they are using every day. This is the [inevitable] next step.”

May
23
2017
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Google is now using deep learning to measure store visits

 Google is announcing a major update to its store visits measurement tool today at its Google Marketing Next conference. Google has used anonymized location and contextual data since 2014 to estimate brick and mortar store visits spurred by online ads. The company is augmenting its existing models with deep learning to bring insights to even more customers. Omnichannel marketing is as big of… Read More

Mar
23
2016
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Here are the 59 startups that demoed at Y Combinator Winter ’16 Demo Day 2

ycombinator “Food, housing, healthcare, transportation. Life essentials made better and more affordable.” These are the types of startups that partner Paul Buchheit said were demoing today at Y Combinator’s Winter 2016 Demo Day 2. Yesterday, we covered the first 60 startups from the batch, and picked our 7 favorites. Plus, check out our picks for the top 8 startups from these 59.… Read More

Sep
29
2014
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BlackBerry Is Gonna Get Weird With Smartphone Design At Least Once A Year

blackberry-whatever BlackBerry could be about to become the most interesting company in the smartphone business: The Canadian telecommunications firm will deliver a minimum of one “unconventional device” per year, according to a new report from Reuters, following the launch of the square-screened Passport last week.
The Passport is definitely an outlier gadget, with its wide-bodied construction… Read More

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