Jan
24
2020
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As SaaS stocks set new records, Atlassian’s earnings show there’s still room to grow

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

SaaS stocks had a good run in late 2019. TechCrunch covered their ascent, a recovery from early-year doldrums and a summer slowdown. In 2020 so far, SaaS and cloud stocks have surged to all-time highs. The latest records are only a hair higher than what the same companies saw in July of last year, but they represent a return to form all the same.

Given that public SaaS companies have now managed to crest their prior highs and have been rewarded for doing so with several days of flat trading, you might think that there isn’t much room left for them to rise. Not so, at least according to Atlassian . The well-known software company reported earnings after-hours yesterday and the market quickly pushed its shares up by more than 10%.

Why? It’s worth understanding, because if we know why Atlassian is suddenly worth lots more, we’ll better grok what investors — public and private — are hunting for in SaaS companies and how much more room they may have to rise.

Jan
23
2020
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Crisp, the demand forecast platform for the food industry, goes live

The food industry may be the biggest industry in the world, but it’s also one of the least efficient. BCG says 1.6 billions tons of food, worth $1.2 trillion, is wasted in food every year, and those numbers are only expected to go up.

A number of players have stepped up to try to solve their own portion of the problem, and one such solution is Crisp. The company, which received $14 million in Series A funding last year led by FirstMark Capital, is today going live with its platform (which has been in beta).

Crisp aims to solve the global food waste problem via demand forecasts. Founder and CEO Are Traasdahl, a serial founder, believes that a lack of communication and data flow between the many players in the supply chain is a main cause for all this waste, a great deal of which happens long before the food reaches the consumer.

Right now, forecasting demand is nowhere close to a perfect science for many of these players. From food brands to distributors to grocery stores, the problem is usually solved by looking at a spreadsheet from last year’s sales to try to determine the signals that played into this or that SKU’s sales performance.

And then there was Crisp.

Integrated with almost any ERP software a company might have, Crisp ingests historical data from these food brands and combines that data with signals around other demand drivers, such as seasonality, holidays, price sensitivity and other pricing information, marketing campaigns, competitive landscape, weather that might affect the sale or shipment of certain produce or other ingredients.

Using these data points, and historical sales data, Crisp believes it can give a much more accurate picture of demand over the next day, week, month or year.

But Crisp isn’t just for food brands, such as Nounós Creamery, a Crisp customer that says its reduced scrapped inventory by 80% since switching to the platform. Crisp serves almost every player in the food supply chain, from retailers to distributors to brands to brokers.

And the more customers it gets, the better it is at predicting demand on a very specific level. For instance, the demand forecasting Crisp offers for a particular grocery store, based on external data, will obviously get much better once that grocery store is a customer on the platform.

Traasdahl was initially concerned that his customers would be reluctant to hand over this type of sensitive sales data, and also that players within the industry might be anxious to hand over such data to a platform that’s aggregating everyone’s data, including their competitors’. Turns out, the food industry has more of a “better together” mentality.

“Other industries are not as dependent on each other,” said Traasdahl. “If I am a creamery and need to buy blueberries for my yogurt, I may have five different vendors for those blueberries. And if they don’t get delivered on the right day, Costco will yell at me for being late with the yogurt. Everyone in the supply chain is somewhat dependent on each other.”

For that reason, it’s been easier than expected to attract clients to the platform. The prospect of a collaborative demand forecast platform, which is pulling signals from across the entire industry, is going to be more accurate than siloed demand forecasts produced by a single vendor or brand.

During the beta program, which launched in October, Crisp brought on more than 30 companies to the platform, including Gilbert’s Craft Sausages, SunFed Perfect Produce, Nounós Creamery, Hofseth, REMA and Superior Farms.

Jan
22
2020
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Proxyclick raises $15M Series B for its visitor management platform

If you’ve ever entered a company’s office as a visitor or contractor, you probably know the routine: check in with a receptionist, figure out who invited you, print out a badge and get on your merry way. Brussels, Belgium and New York-based Proxyclick aims to streamline this process, while also helping businesses keep their people and assets secure. As the company announced today, it has raised a $15 million Series B round led by Five Elms Capital, together with previous investor Join Capital.

In total, Proxyclick says its systems have now been used to register more than 30 million visitors in 7,000 locations around the world. In the U.K. alone, more than 1,000 locations use the company’s tools. Current customers include L’Oréal, Vodafone, Revolut, PepsiCo and Airbnb, as well as a number of other Fortune 500 firms.

Gregory Blondeau, founder and CEO of Proxyclick, stresses that the company believes that paper logbooks, which are still in use in many companies, are simply not an acceptable solution anymore, not in the least because that record is often permanent and visible to other visitors.

Proxyclick’s founding team.

“We all agree it is not acceptable to have those paper logbooks at the entrance where everyone can see previous visitors,” he said. “It is also not normal for companies to store visitors’ digital data indefinitely. We already propose automatic data deletion in order to respect visitor privacy. In a few weeks, we’ll enable companies to delete sensitive data such as visitor photos sooner than other data. Security should not be an excuse to exploit or hold visitor data longer than required.”

What also makes Proxyclick stand out from similar solutions is that it integrates with a lot of existing systems for access control (including C-Cure and Lenel systems). With that, users can ensure that a visitor only has access to specific parts of a building, too.

In addition, though, it also supports existing meeting rooms, calendaring and parking systems, and integrates with Wi-Fi credentialing tools so your visitors don’t have to keep asking for the password to get online.

Like similar systems, Proxyclick provides businesses with a tablet-based sign-in service that also allows them to get consent and NDA signatures right during the sign-in process. If necessary, the system also can compare the photos it takes to print out badges with those on a government-issued ID to ensure your visitors are who they say they are.

Blondeau noted that the whole industry is changing, too. “Visitor management is becoming mainstream, it is transitioning from a local, office-related subject handled by facility managers to a global, security and privacy-driven priority handled by chief information security officers. Scope, decision drivers and key people involved are not the same as in the early days,” he said.

It’s no surprise then that the company plans to use the new funding to accelerate its roadmap. Specifically, it’s looking to integrate its solution with more third-party systems with a focus on physical security features and facial recognition, as well as additional new enterprise features.

Jan
22
2020
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Shared inbox startup Front raises $59 million round led by other tech CEOs

Front is raising a $59 million Series C funding round. Interestingly, the startup hasn’t raised with a traditional VC firm leading the round. A handful of super business angels are investing directly in the productivity startup and leading the round.

Business angels include Atlassian co-founder and co-CEO Mike Cannon-Brookes, Atlassian President Jay Simons, Okta co-founder and COO Frederic Kerrest, Qualtrics co-founders Ryan Smith and Jared Smith and Zoom CEO Eric Yuan. Existing investors Sequoia Capital, Initialized Capital and Anthos Capital are participating in this round, as well.

While Front doesn’t share its valuation, the company says that the valuation has quadrupled compared to the previous funding round. Annual recurring venue has also quadrupled over the same period.

The structure of this round is unusual, but it’s on purpose. Front, like many other startups, is trying to redefine the future of work. That’s why the startup wanted to surround itself with leaders of other companies who share the same purpose.

“First, because we didn’t need to raise (we still had two years of runway), and it’s always better to raise when we don’t need it. The last few months have given me much more clarity into our go-to-market strategy,” Front co-founder and CEO Mathilde Collin told me.

Front is a collaborative inbox for your company. For instance, if you want to share an email address with your co-workers (support@mycompany.com or jobs@mycompany.com), you can integrate those shared inboxes with Front and work on those conversations as a team.

It opens up a ton of possibilities. You can assign conversations to a specific person, @-mention your co-workers to send them a notification, start a conversation with your team before you hit reply, share a draft with other people, etc.

Front also supports other communication channels, such as text messages, WhatsApp messages, a chat module on your website and more. As your team gets bigger, Front helps you avoid double replies by alerting other users when you’re working on a reply.

In addition to those collaboration features, Front helps you automate your workload as much as possible. You can set up automated workflows so that a specific conversation ends up in front of the right pair of eyes. You can create canned responses for the entire team, as well.

Front also integrates with popular third-party services, such as Salesforce, HubSpot, Clearbit and dozens of others. Front customers include MailChimp, Shopify and Stripe.

While Front supports multiple channels, email represents the biggest challenge. If you think about it, email hasn’t changed much over the past decade. The last significant evolution was the rise of Gmail, G Suite and web-based clients. In other words, Front wants to disrupt Outlook and Gmail.

With today’s funding round, the company plans to iterate on the product front with Office 365 support for its calendar, an offline mode and refinements across the board. The company also plans to scale up its sales and go-to-market team with an office in Phoenix and a new CMO.

Jan
22
2020
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TriggerMesh scores $3M seed from Index and Crane to help enterprises embrace ‘serverless’

TriggerMesh, a startup building on top of the open-source Kubernetes software to help enterprises go “serverless” across apps running in the cloud and traditional data centers, has raised $3 million in seed funding.

The round is led by Index Ventures and Crane Venture Partners. TriggerMesh says the investment will be used to scale the company and grow its development team in order to offer what it bills as the industry’s first “cloud native integration platform for the serverless era.”

Founded by two prominent names in the open-source community — Sebastien Goasguen (CEO) and Mark Hinkle (CMO), based in Geneva and North Carolina, respectively — TriggerMesh’s platform will enable organizations to build enterprise-grade applications that span multiple cloud and data center environments, therefore helping to address what the startup says is a growing pain point as serverless architectures become more prevalent.

TriggerMesh’s platform and serverless cloud bus is said to facilitate “application flow orchestration” to consume events from any data center application or cloud event source and trigger serverless functions.

“As cloud-native applications use a greater number of serverless offerings in the cloud, TriggerMesh provides a declarative API and a set of tools to define event flows and functions that compose modern applications,” explains the company.

One feature TriggerMesh is specifically talking up and very relevant to legacy enterprises is its integration functionality with on-premise software. Via its wares, it says it is easy to connect SaaS, serverless cloud offerings and on-premises applications to provide scalable cloud-native applications at a low cost and quickly.

“There are huge numbers of disconnected applications that are unable to fully benefit from cloud computing and increased network connectivity,” noted Scott Sage, co-founder and partner at Crane Venture Partners, in a statement. “Most companies have some combination of cloud and on-premises applications and with more applications around, often from different vendors, the need for integration has never been greater. We see TriggerMesh’s solution as the ideal fit for this need which made them a compelling investment.”

Jan
22
2020
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Descartes Labs launches its new platform for analyzing geospatial data

Descartes Labs, a wellfunded startup based in New Mexico, provides businesses with geospatial data and the tools to analyze it in order to make business decisions. Today, the company announced the launch of its Descartes Labs Platform, which promises to bring its data together with all of the tools data scientists — including those with no background in analyzing this kind of information — would need to work with these images to analyze them and build machine learning models based on the data in them.

Descartes Labs CEO Phil Fraher, who took this position only a few months ago, told me that the company’s current business often includes a lot of consulting work to get its customers started. These customers span the range from energy and mining companies to government agencies, financial services and agriculture businesses, but many don’t have the in-house expertise to immediately make use of the data that Descartes Labs provides.

“For the most part, we still have to evangelize how to use geospatial data to solve business problems. And so a lot of our customers rely on us to do consulting,” Fraher said. “But what’s really interesting is that even with some of our existing customers, we’re now seeing more early adopters, more business and analysis teams and data scientists being hired, that do focus on geospatial data. So what’s really exciting with this launch is we’re now going to put our platform tool in the hands of those particular individuals that now can do their own work.”

In many ways, this new platform gives these customers access to the tools and data that Descartes Labs’ own team uses and allows them to collaborate with the company to solve their problems and use the new modeling tools to build solutions for their individual businesses.

“Previously, a data science team at a company that’s interested in this kind of analysis would also have to know how to wrangle very large-scale or petabyte-scale Earth observation data sets,” Fraher said. “These are very unique and specific skillsets and because of that kind of barrier to entry, the adoption of some of this technology and data sources has been slow.”

To enable more businesses to get started with working with this data (and become Descartes Labs customers), the company is betting on the standard tools in the industry, with hosted Jupyter notebooks, Python support and a set of APIs. It also includes tools to transform and clean the incoming data from Descartes’ third-party partners in order to make it usable for data scientists.

“It’s not just like some simple ETL-like data processing pipeline,” Descartes Labs’ head of Engineering Sam Skillman noted. “It’s something where we have to combine very in-depth data science, remote sensing and large-scale compute capabilities to bring all of that data in in a way that normalizes it and gets it ready for analysis.”

All of this analysis is handled in the cloud, of course.

The new platform is now available to businesses that want to give it a try.

Jan
22
2020
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ServiceNow acquires Loom Systems to expand AIOps coverage

ServiceNow announced today that it has acquired Loom Systems, an Israeli startup that specializes in AIOps. The companies did not reveal the purchase price.

IT operations collects tons of data across a number of monitoring and logging tools, way too much for any team of humans to keep up with. That’s why there are startups like Loom turning to AI to help sort through it. It can find issues and patterns in the data that would be challenging or impossible for humans to find. Applying AI to operations data in this manner has become known as AIOps in industry parlance.

ServiceNow is first and foremost a company trying to digitize the service process, however that manifests itself. IT service operations is a big part of that. Companies can monitor their systems, wait until a problem happens and then try to track down the cause and fix it — or, they can use the power of artificial intelligence to find potential dangers to the system health and neutralize them before they become major problems. That’s what an AIOps product like Loom’s can bring to the table.

Jeff Hausman, vice president and general manager of IT Operations Management at ServiceNow, sees Loom’s strengths merging with ServiceNow’s existing tooling to help keep IT systems running. “We will leverage Loom Systems’ log analytics capabilities to help customers analyze data, automate remediation and reduce L1 incidents,” he told TechCrunch.

Loom co-founder and CEO Gabby Menachem not surprisingly sees a similar value proposition. “By joining forces, we have the unique opportunity to bring together our AI innovations and ServiceNow’s AIOps capabilities to help customers prevent and fix IT issues before they become problems,” he said in a statement.

Loom has raised $16 million since it launched in 2015, according to PitchBook data. Its most recent round for $10 million was in November 2019. Today’s deal is expected to close by the end of this quarter.

Jan
22
2020
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Thundra announces $4M Series A to secure and troubleshoot serverless workloads

Thundra, an early-stage serverless tooling startup, announced a $4 million Series A today led by Battery Ventures. The company spun out from Opsgenie after it was sold to Atlassian for $295 million in 2018.

York IE, Scale X Ventures and Opsgenie founder Berkay Mollamustafaoglu also participated in the round. Battery’s Neeraj Agarwal is joining the company’s board under the terms of the agreement.

The startup also announced that it had recently hired Ken Cheney as CEO, with technical founder Serkan Ozal becoming CTO.

Originally, Thundra helped run the serverless platform at Opsgenie. As a commercial company, it helps monitor, debug and secure serverless workloads on AWS Lambda. These three tasks could easily be separate tools, but Cheney says it makes sense to include them all because they are all related in some way.

“We bring all that together and provide an end-to-end view of what’s happening inside the application, and this is what really makes Thundra unique. We can actually provide a high-level distributed view of that constantly changing application that shows all of the components of that application, and how they are interrelated and how they’re performing. It can also troubleshoot down to the local service, as well as go down into the runtime code to see where the problems are occurring and let you know very quickly,” Cheney explained.

He says that this enables developers to get this very detailed view of their serverless application that otherwise wouldn’t be possible, helping them concentrate less on the nuts and bolts of the infrastructure, the reason they went serverless in the first place, and more on writing code.

Serverless trace map in Thundra. Screenshot: Thundra

Thundra is able to do all of this in a serverless world, where there isn’t a fixed server and resources are ephemeral, making it difficult to identity and fix problems. It does this by installing an agent at the Lambda (AWS’ serverless offering) level on AWS, or at runtime on the container at the library level, he said.

Battery’s Neeraj Agarwal says having invested in Opsgenie, he knew the engineering team and was confident in the team’s ability to take it from internal tool to more broadly applicable product.

“I think it has to do with the quality of the engineering team that built Opsgenie. These guys are very microservices-oriented, very product-oriented, so they’re very quick at iterating and developing products. Even though this was an internal tool I think of it as very much productized, and their ability to now sell it to the broader market is very exciting,” he said.

The company offers a free version, then tiered pricing based on usage, storage and data retention. The current product is a cloud service, but it plans to add an on-prem version in the near future.

Jan
22
2020
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Placer.ai, a location data analytics startup, raises $12 million Series A

Placer.ai, a startup that analyzes location and foot traffic analytics for retailers and other businesses, announced today that it has closed a $12 million Series A. The round was led by JBV Capital, with participation from investors including Aleph, Reciprocal Ventures and OCA Ventures.

The funding will be used on research and development of new features and to expand Placer.ai’s operation in the United States.

Launched in 2016, Placer.ai’s SaaS platform gives its clients real-time data that helps them make decisions like where to rent or buy properties, when to hold sales and promotions and how to manage assets.

Placer.ai analyzes foot traffic and also creates consumer profiles to help clients make marketing and ad spending decisions. It does this by collecting geolocation and proximity data from devices that are enabled to share that information. Placer.ai’s co-founder and CEO Noam Ben-Zvi says the company protects privacy and follows regulation by displaying aggregated, anonymous data and does not collect personally identifiable data. It also does not sell advertising or raw data.

The company currently serves clients in the retail (including large shopping centers), commercial real estate and hospitality verticals, including JLL, Regency, SRS, Brixmor, Verizon* and Caesars Entertainment.

“Up until now, we’ve been heavily focused on the commercial real estate sector, but this has very organically led us into retail, hospitality, municipalities and even [consumer packaged goods],” Ben-Zvi told TechCrunch in an email. “This presents us with a massive market, so we’re just focused on building out the types of features that will directly address the different needs of our core audience.”

He adds that lack of data has hurt retail businesses with major offline operations, but that “by effectively addressing this gap, we’re helping drive more sustainable growth or larger players or minimizing the risk for smaller companies to drive expansion plans that are strategically aggressive.”

Others startups in the same space include Dor, Aislelabs, RetailNext, ShopperTrak and Density. Ben-Zvi says Placer.ai wants to differentiate by providing more types of real-time data analysis.

While there are a lot of companies touching the location analytics space, we’re in a unique situation as the only company providing these deep and actionable insights for any location in the country in a real-time platform with a wide array of functionality,” he said.

*Disclosure: Verizon Media is the parent company of TechCrunch.

Jan
21
2020
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LumApps raises $70M Series C led by Goldman Sachs

LumApps, the cloud-based social intranet for the enterprise, has closed $70 million in Series C funding. Leading the round is Goldman Sachs Growth, with participation from Bpifrance via its Growth Fund Large Venture.

Others participating include Idinvest Partners, Iris Capital, and Famille C (the family office of Courtin-Clarins). The round brings the total raised by the French company to around $100 million.

Founded in Paris back in 2012, before launching today’s proposition in 2015, LumApps has developed what it describes as a “social intranet” for enterprises to enable employees to better informed, connect and collaborate. The SaaS integrates with other enterprise software such as G Suite, Microsoft Office 365 and Microsoft SharePoint, to centralize access to corporate content, business applications and social features under a single platform. The central premise is to help companies “break down silos” and streamline internal communication.

LumApps customers include Airbus, Veolia, Valeo, Air Liquide, Colgate-Palmolive, The Economist, Schibsted, EA, Logitech, Toto, and Japan Airlines, and the company claims to have achieved year-on-year revenue growth of 100%.

“Our dream was to enable access to useful information in one click, from one place and for everyone,” LumApps founder and CEO Sébastien Ricard told TechCrunch when the company raised its Series B early last year. “We wanted to build a solution that bridged [an] intranet and social network, with the latest new technologies. A place that users will love.”

Since then, LumApps has added several new offices and has seven worldwide: Lyon, Paris, London, New York, Austin, San Francisco, and Tokyo. Armed with additional funding, the company will continue adding significant headcount, hiring across engineering, product, sales and marketing. There are also plans to expand to Canada, more of Asia Pacific, and Germany.

“We’re actually looking at hiring 200 people minimum,” Ricard tells me. “We’re growing fast and have ambitious plans to take the product to new heights, including fulfilling our vision of making LumApps a personal assistant powered by AI. This will require a significant investment in top engineering/AI talent globally”.

Asked to elaborate on what machine learning and AI could bring to a social intranet, Ricard says the vision is to make LumApps a personal assistant for all communications and workflows in the enterprise.

“We see a future where this personal assistant can make predictive suggestions based on historical data and actions. Applying AI to prompt authors with suggested content, flagging important items that demand attention, and auto-archiving old content, are a few examples. Managing the massive troves of content and data companies have today is critical”.

Ricard also sees AI playing a big role in data security. “Employees have a high-degree of control with regard to data sharing and AI can help manage what employees can share in the workplace. This is more long-term but it’s where we’re headed,” he says.

“In the short-term, we’re making investments in automating as many workflows as possible with the goal of reducing or eliminating administrative tasks that keep employees from more productive tasks, including team collaboration and knowledge sharing”.

Meanwhile, LumApps says it may also use part of the Series C for M&A activity. “We’re growing fast and we’re looking at different areas for expansion opportunities,” Ricard says. “This includes retail and manufacturing and some business functions like HR, marketing and communications. We don’t have concrete plans to acquire any companies at the moment but we are keeping our options open as acquiring best-in-breed technologies often makes more sense from a business perspective than building it yourself”.

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