Mar
18
2021
--

Slapdash raises $3.7M seed to ship a workplace apps command bar

The explosion in productivity software amid a broader remote work boom has been one of the pandemic’s clearest tech impacts. But learning to use a dozen new programs while having to decipher which data is hosted where can sometimes seem to have an adverse effect on worker productivity. It’s all time that users can take for granted, even when carrying out common tasks like navigating to the calendar to view more info to click a link to open the browser to redirect to the native app to open a Zoom call.

Slapdash is aiming to carve a new niche out for itself among workplace software tools, pushing a desire for peak performance to the forefront with a product that shaves seconds off each instance where a user needs to find data hosted in a cloud app or carry out an action. While most of the integration-heavy software suites to emerge during the remote work boom have focused on promoting visibility or re-skinning workflows across the tangled weave of SaaS apps, Slapdash founder Ivan Kanevski hopes that the company’s efforts to engineer a quicker path to information will push tech workers to integrate another tool into their workflow.

The team tells TechCrunch that they’ve raised $3.7 million in seed funding from investors that include S28 Capital, Quiet Capital, Quarry Ventures and Twenty Two Ventures. Angels participating in the round include co-founders at companies like Patreon, Docker and Zynga.

Image Credits: Slapdash

Kanevski says the team sought to emulate the success of popular apps like Superhuman, which have pushed low-latency command line interface navigation while emulating some of the sleek internal tools used at companies like Facebook, where he spent nearly six years as a software engineer.

Slapdash’s command line widget can be pulled up anywhere, once installed, with a quick keyboard shortcut. From there, users can search through a laundry list of indexable apps including Slack, Zoom, Jira and about 20 others. Beyond command line access, users can create folders of files and actions inside the full desktop app or create their own keyboard shortcuts to quickly hammer out a task. The app is available on Mac, Windows, Linux and the web.

“We’re not trying to displace the applications that you connect to Slapdash,” he says. “You won’t see us, for example, building document editing, you won’t see us building project management, just because our sort of philosophy is that we’re a neutral platform.”

The company offers a free tier for users indexing up to five apps and creating 10 commands and spaces; any more than that and you level up into a $12 per month paid plan. Things look more customized for enterprise-wide pricing. As the team hopes to make the tool essential to startups, Kanevski sees the app’s hefty utility for individual users as a clear asset in scaling up.

“If you anticipate rolling this out to larger organizations, you would want the people that are using the software to have a blast with it,” he says. “We have quite a lot of confidence that even at this sort of individual atomic level, we built something pretty joyful and helpful.”

Mar
17
2021
--

Amazon will expand its Amazon Care on-demand healthcare offering U.S.-wide this summer

Amazon is apparently pleased with how its Amazon Care pilot in Seattle has gone, since it announced this morning that it will be expanding the offering across the U.S. this summer, and opening it up to companies of all sizes, in addition to its own employees. The Amazon Care model combines on-demand and in-person care, and is meant as a solution from the search giant to address shortfalls in current offering for employer-sponsored healthcare offerings.

In a blog post announcing the expansion, Amazon touted the speed of access to care made possible for its employees and their families via the remote, chat and video-based features of Amazon Care. These are facilitated via a dedicated Amazon Care app, which provides direct, live chats via a nurse or doctor. Issues that then require in-person care is then handled via a house call, so a medical professional is actually sent to your home to take care of things like administering blood tests or doing a chest exam, and prescriptions are delivered to your door as well.

The expansion is being handled differently across both in-person and remote variants of care; remote services will be available starting this summer to both Amazon’s own employees, as well as other companies who sign on as customers, starting this summer. The in-person side will be rolling out more slowly, starting with availability in Washington, D.C., Baltimore, and “other cities in the coming months” according to the company.

As of today, Amazon Care is expanding in its home state of Washington to begin serving other companies. The idea is that others will sing on to make Amazon Care part of its overall benefits package for employees. Amazon is touting the speed advantages of testing services, including results delivery, for things including COVID-19 as a major strength of the service.

The Amazon Care model has a surprisingly Amazon twist, too – when using the in-person care option, the app will provide an updating ETA for when to expect your physician or medical technician, which is eerily similar to how its primary app treats package delivery.

While the Amazon Care pilot in Washington only launched a year-and-a-half ago, the company has had its collective mind set on upending the corporate healthcare industry for some time now. It announced a partnership with Berkshire Hathaway and JPMorgan back at the very beginning of 2018 to form a joint venture specifically to address the gaps they saw in the private corporate healthcare provider market.

That deep pocketed all-star team ended up officially disbanding at the outset of this year, after having done a whole lot of not very much in the three years in between. One of the stated reasons that Amazon and its partners gave for unpartnering was that each had made a lot of progress on its own in addressing the problems it had faced anyway. While Berkshire Hathaway and JPMorgan’s work in that regard might be less obvious, Amazon was clearly referring to Amazon Care.

It’s not unusual for large tech companies with lots of cash on the balance sheet and a need to attract and retain top-flight talent to spin up their own healthcare benefits for their workforces. Apple and Google both have their own on-campus wellness centers staffed by medical professionals, for instance. But Amazon’s ambitious have clearly exceeded those of its peers, and it looks intent on making a business line out of the work it did to improve its own employee care services — a strategy that isn’t too dissimilar from what happened with AWS, by the way.

Mar
11
2021
--

Google Cloud launches a new support option for mission critical workloads

Google Cloud today announced the launch of a new support option for its Premium Support customers that run mission-critical services on its platform. The new service, imaginatively dubbed Mission Critical Services (MCS), brings Google’s own experience with Site Reliability Engineering to its customers. This is not Google completely taking over the management of these services, though. Instead, the company describes it as a “consultative offering in which we partner with you on a journey toward readiness.”

Initially, Google will work with its customers to improve — or develop — the architecture of their apps and help them instrument the right monitoring systems and controls, as well as help them set and raise their service-level objectives (a key feature in the Site Reliability Engineering philosophy).

Later, Google will also provide ongoing check-ins with its engineers and walk customers through tune-ups architecture reviews. “Our highest tier of engineers will have deep familiarity with your workloads, allowing us to monitor, prevent, and mitigate impacts quickly, delivering the fastest response in the industry. For example, if you have any issues–24-hours-a-day, seven-days-a-week–we’ll spin up a live war room with our experts within five minutes,” Google Cloud’s VP for Customer Experience, John Jester, explains in today’s announcement.

This new offering is another example of how Google Cloud is trying to differentiate itself from the rest of the large cloud providers. Its emphasis today is on providing the high-touch service experiences that were long missing from its platform, with a clear emphasis on the needs of large enterprise customers. That’s what Thomas Kurian promised to do when he became the organization’s CEO and he’s clearly following through.

 


Early Stage is the premier ‘how-to’ event for startup entrepreneurs and investors. You’ll hear first-hand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, product market fit, PR, marketing and brand building. Each session also has audience participation built-in – there’s ample time included for audience questions and discussion. Use code “TCARTICLE at checkout to get 20 percent off tickets right here.

Jan
27
2021
--

SAP launches ‘RISE with SAP,’ a concierge service for digital transformation

SAP today announced a new offering it calls ‘RISE with SAP,’ a solution that is meant to help the company’s customers go through their respective digital transformations and become what SAP calls ‘intelligent enterprises.’ RISE is a subscription service that combines a set of services and product offerings.

SAP’s head of product success Sven Denecken (and its COO for S/4Hana) described it as “the best concierge service you can get for your digital transformation” when I talked to him earlier this week. “We need to help our clients to embrace that change that they see currently,” he said. “Transformation is a journey. Every client wants to become that smarter, faster and that nimbler business, but they, of course, also see that they are faced with challenges today and in the future. This continuous transformation is what is happening to businesses. And we do know from working together with them, that actually they agree with those fundamentals. They want to be an intelligent enterprise. They want to adapt and change. But the key question is how to get there? And the key question they ask us is, please help us to get there.”

With RISE for SAP, businesses will get a single contact at SAP to help guide them through their journey, but also access to the SAP partner ecosystem.

The first step in this process, Denecken stressed, isn’t necessarily to bring in new technology, though that is also part of it, but to help businesses redesign and optimize their business processes and implement the best practices in their verticals — and then measure the outcome. “Business process redesign means that you analyze how your business processes perform. How can you get tailored recommendations? How can you benchmark against industry standards? And this helps you to set the tone and also to motivate your people — your IT, your business people — to adapt,” Denecken described. He also noted that in order for a digital transformation project to succeed, IT and business leaders and employees have to work together.

In part, that includes technology offerings and adopting robotic process automation (RPA), for example. As Denecken stressed, all of this builds on top of the work SAP has done with its customers over the years to define business processes and KPIs.

On the technical side, SAP is obviously offering its own services, including its Business Technology Platform, and cloud infrastructure, but it will also support customers on all of the large cloud providers. Also included in RISE is support for more than 2,200 APIs to integrate various on-premises, cloud and non-SAP systems, access to SAP’s low-code and no-code capabilities and, of course, its database and analytics offerings.

“Geopolitical tensions, environmental challenges and the ongoing pandemic are forcing businesses to deal with change faster than ever before,” said Christian Klein, SAP’s CEO, in today’s announcement. “Companies that can adapt their business processes quickly will thrive – and SAP can help them achieve this. This is what RISE with SAP is all about: It helps customers continuously unlock new ways of running businesses in the cloud to stay ahead of their industry.”

With this new offering, SAP is now providing its customers with a number of solutions that were previously available through its partner ecosystem. Denecken doesn’t see this as SAP competing with its own partners, though. Instead, he argues that this is very much a partner play and that this new solution will likely only bring more customers to its partners as well.

“Needless to say, this has been a negotiation with those partners,” he said. “Because yes, it’s sometimes topics that we now take over they [previously] did. But we are looking for scale here. The need in the market for digital transformation has just started. And this is where we see that this is definitely a big offering, together with partners. “

Jan
26
2021
--

Google’s BeyondCorp Enterprise security platform is now generally available

Google today announced that BeyondCorp Enterprise, the zero trust security platform modeled after how Google itself keeps its network safe without relying on a VPN, is now generally available. BeyondCorp Enterprise builds out Google’s existing BeyondCorp Remote Access offering with additional enterprise features. Google describes it as “a zero trust solution that enables secure access with integrated threat and data protection.”

Over the course of the last few years, Google — and especially its Cloud unit — has evangelized the zero trust model and built a large partner network around this idea. Those partners include the likes of Check Point, Citrix, CrowdStrike, Symantec and VMWare.

As part of BeyondCorp Enterprise, businesses get an end-to-end zero trust solution that includes everything from DDoS protection and phishing-resistant authentication, to the new security features in the Chrome browser and the core continuous authorization features that protect every interaction between users and resources protected by BeyondCorp.

“The rapid move to the cloud and remote work are creating dynamic work environments that promise to drive new levels of productivity and innovation. But they have also opened the door to a host of new security concerns and sparked a significant increase in cyberattacks,” said Fermin Serna, chief information security officer at Citrix. “To defend against them, enterprises must take an intelligent approach to workspace security that protects employees without getting in the way of their experience following the zero trust model.”

Jan
26
2021
--

Run:AI raises $30M Series B for its AI compute platform

Run:AI, a Tel Aviv-based company that helps businesses orchestrate and optimize their AI compute infrastructure, today announced that it has raised a $30 million Series B round. The new round was led by Insight Partners, with participation from existing investors TLV Partners and S Capital. This brings the company’s total funding to date to $43 million.

At the core of Run:AI’s platform is the ability to effectively virtualize and orchestrate AI workloads on top of its Kubernetes-based scheduler. Traditionally, it was always hard to virtualize GPUs, so even as demand for training AI models has increased, a lot of the physical GPUs often set idle for long periods because it was hard to dynamically allocate them between projects.

Image Credits: Run.AI

The promise behind Run:AI’s platform is that it allows its users to abstract away all of the AI infrastructure and pool all of their GPU resources — no matter whether in the cloud or on-premises. This also makes it easier for businesses to share these resources between users and teams. In the process, IT teams also get better insights into how their compute resources are being used.

“Every enterprise is either already rearchitecting themselves to be built around learning systems powered by AI, or they should be,” said Lonne Jaffe, managing director at Insight Partners and now a board member at Run:AI.” Just as virtualization and then container technology transformed CPU-based workloads over the last decades, Run:AI is bringing orchestration and virtualization technology to AI chipsets such as GPUs, dramatically accelerating both AI training and inference. The system also future-proofs deep learning workloads, allowing them to inherit the power of the latest hardware with less rework. In Run:AI, we’ve found disruptive technology, an experienced team and a SaaS-based market strategy that will help enterprises deploy the AI they’ll need to stay competitive.”

Run:AI says that it is currently working with customers in a wide variety of industries, including automotive, finance, defense, manufacturing and healthcare. These customers, the company says, are seeing their GPU utilization increase from 25 to 75% on average.

“The new funds enable Run:AI to grow the company in two important areas: first, to triple the size of our development team this year,” the company’s CEO Omri Geller told me. “We have an aggressive roadmap for building out the truly innovative parts of our product vision — particularly around virtualizing AI workloads — a bigger team will help speed up development in this area. Second, a round this size enables us to quickly expand sales and marketing to additional industries and markets.”

Jul
30
2020
--

Buildots raises $16M to bring computer vision to construction management

Buildots, a Tel Aviv and London-based startup that is using computer vision to modernize the construction management industry, today announced that it has raised $16 million in total funding. This includes a $3 million seed round that was previously unreported and a $13 million Series A round, both led by TLV Partners. Other investors include Innogy Ventures, Tidhar Construction Group, Ziv Aviram (co-founder of Mobileye & OrCam), Magma Ventures head Zvika Limon, serial entrepreneurs Benny Schnaider and  Avigdor Willenz, as well as Tidhar chairman Gil Geva.

The idea behind Buildots is pretty straightforward. The team is using hardhat-mounted 360-degree cameras to allow project managers at construction sites to get an overview of the state of a project and whether it remains on schedule. The company’s software creates a digital twin of the construction site, using the architectural plans and schedule as its basis, and then uses computer vision to compare what the plans say to the reality that its tools are seeing. With this, Buildots can immediately detect when there’s a power outlet missing in a room or whether there’s a sink that still needs to be installed in a kitchen, for example.

“Buildots have been able to solve a challenge that for many seemed unconquerable, delivering huge potential for changing the way we complete our projects,” said Tidhar’s Geva in a statement. “The combination of an ambitious vision, great team and strong execution abilities quickly led us from being a customer to joining as an investor to take part in their journey.”

The company was co-founded in 2018 by Roy Danon, Aviv Leibovici and Yakir Sundry. Like so many Israeli startups, the founders met during their time in the Israeli Defense Forces, where they graduated from the Talpiot unit.

“At some point, like many of our friends, we had the urge to do something together — to build a company, to start something from scratch,” said Danon, the company’s CEO. “For us, we like getting our hands dirty. We saw most of our friends going into the most standard industries like cloud and cyber and storage and things that obviously people like us feel more comfortable in, but for some reason we had like a bug that said, ‘we want to do something that is a bit harder, that has a bigger impact on the world.’ ”

So the team started looking into how it could bring technology to traditional industries like agriculture, finance and medicine, but then settled upon construction thanks to a chance meeting with a construction company. For the first six months, the team mostly did research in both Israel and London to understand where it could provide value.

Danon argues that the construction industry is essentially a manufacturing industry, but with very outdated control and process management systems that still often relies on Excel to track progress.

Image Credits: Buildots

Construction sites obviously pose their own problems. There’s often no Wi-Fi, for example, so contractors generally still have to upload their videos manually to Buildots’ servers. They are also three dimensional, so the team had to develop systems to understand on what floor a video was taken, for example, and for large indoor spaces, GPS won’t work either.

The teams tells me that before the COVID-19 lockdowns, it was mostly focused on Israel and the U.K., but the pandemic actually accelerated its push into other geographies. It just started work on a large project in Poland and is scheduled to work on another one in Japan next month.

Because the construction industry is very project-driven, sales often start with getting one project manager on board. That project manager also usually owns the budget for the project, so they can often also sign the check, Danon noted. And once that works out, then the general contractor often wants to talk to the company about a larger enterprise deal.

As for the funding, the company’s Series A round came together just before the lockdowns started. The company managed to bring together an interesting mix of investors from both the construction and technology industries.

Now, the plan is to scale the company, which currently has 35 employees, and figure out even more ways to use the data the service collects and make it useful for its users. “We have a long journey to turn all the data we have into supporting all the workflows on a construction site,” said Danon. “There are so many more things to do and so many more roles to support.”

Image Credits: Buildots

Jul
01
2020
--

Vendia raises $5.1M for its multicloud serverless platform

When the inventor of AWS Lambda, Tim Wagner, and the former head of blockchain at AWS, Shruthi Rao, co-found a startup, it’s probably worth paying attention. Vendia, as the new venture is called, combines the best of serverless and blockchain to help build a truly multicloud serverless platform for better data and code sharing.

Today, the Vendia team announced that it has raised a $5.1 million seed funding round, led by Neotribe’s Swaroop ‘Kittu’ Kolluri. Correlation Ventures, WestWave Capital, HWVP, Firebolt Ventures, Floodgate and Future\Perfect Ventures also participated in this oversubscribed round.

Image Credits: Vendia

Seeing Wagner at the helm of a blockchain-centric startup isn’t exactly a surprise. After building Lambda at AWS, he spent some time as VP of engineering at Coinbase, where he left about a year ago to build Vendia.

“One day, Coinbase approached me and said, ‘Hey, maybe we could do for the financial system what you’ve been doing over there for the cloud system,’” he told me. “And so I got interested in that. We had some conversations. I ended up going to Coinbase and spent a little over a year there as the VP of Engineering, helping them to set the stage for some of that platform work and tripling the size of the team.” He noted that Coinbase may be one of the few companies where distributed ledgers are actually mission-critical to their business, yet even Coinbase had a hard time scaling its Ethereum fleet, for example, and there was no cloud-based service available to help it do so.

Tim Wagner, Vendia co-founder and CEO. Image Credits: Vendia

“The thing that came to me as I was working there was why don’t we bring these two things together? Nobody’s thinking about how would you build a distributed ledger or blockchain as if it were a cloud service, with all the things that we’ve learned over the course of the last 10 years building out the public cloud and learning how to do it at scale,” he said.

Wagner then joined forces with Rao, who spent a lot of time in her role at AWS talking to blockchain customers. One thing she noticed was that while it makes a lot of sense to use blockchain to establish trust in a public setting, that’s really not an issue for enterprise.

“After the 500th customer, it started to make sense,” she said. “These customers had made quite a bit of investment in IoT and edge devices. They were gathering massive amounts of data. They also made investments on the other side, with AI and ML and analytics. And they said, ‘Well, there’s a lot of data and I want to push all of this data through these intelligent systems. I need a mechanism to get this data.’” But the majority of that data often comes from third-party services. At the same time, most blockchain proof of concepts weren’t moving into any real production usage because the process was often far too complex, especially enterprises that maybe wanted to connect their systems to those of their partners.

Shruthi Rao, Vendia co-founder and CBO. Image Credits: Vendia

“We are asking these partners to spin up Kubernetes clusters and install blockchain nodes. Why is that? That’s because for blockchain to bring trust into a system to ensure trust, you have to own your own data. And to own your own data, you need your own node. So we’re solving fundamentally the wrong problem,” she explained.

The first product Vendia is bringing to market is Vendia Share, a way for businesses to share data with partners (and across clouds) in real-time, all without giving up control over that data. As Wagner noted, businesses often want to share large data sets but they also want to ensure they can control who has access to that data. For those users, Vendia is essentially a virtual data lake with provenance tracking and tamper-proofing built in.

The company, which mostly raised this round after the coronavirus pandemic took hold in the U.S., is already working with a couple of design partners in multiple industries to test out its ideas, and plans to use the new funding to expand its engineering team to build out its tools.

“At Neotribe Ventures, we invest in breakthrough technologies that stretch the imagination and partner with companies that have category creation potential built upon a deep-tech platform,” said Neotribe founder and managing director Kolluri. “When we heard the Vendia story, it was a no-brainer for us. The size of the market for multiparty, multicloud data and code aggregation is enormous and only grows larger as companies capture every last bit of data. Vendia’s serverless-based technology offers benefits such as ease of experimentation, no operational heavy lifting and a pay-as-you-go pricing model, making it both very consumable and highly disruptive. Given both Tim and Shruthi’s backgrounds, we know we’ve found an ideal ‘Founder fit’ to solve this problem! We are very excited to be the lead investors and be a part of their journey.”

May
20
2020
--

Directly, which taps experts to train chatbots, raises $11M, closes out Series B at $51M

Directly, a startup whose mission is to help build better customer service chatbots by using experts in specific areas to train them, has raised more funding as it opens up a new front to grow its business: APIs and a partner ecosystem that can now also tap into its expert network. Today Directly is announcing that it has added $11 million to close out its Series B at $51 million (it raised $20 million back in January of this year, and another $20 million as part of the Series B back in 2018).

The funding is coming from Triangle Peak Partners and Toba Capital, while its previous investors in the round included strategic backers Samsung NEXT and Microsoft’s M12 Ventures (who are both customers, alongside companies like Airbnb), as well as Industry Ventures, True Ventures, Costanoa Ventures and Northgate. (As we reported when covering the initial close, Directly’s valuation at that time was at $110 million post-money, and so this would likely put it at $120 million or higher, given how the business has expanded.)

While chatbots have now been around for years, a key focus in the tech world has been how to help them work better, after initial efforts saw so many disappointing results that it was fair to ask whether they were even worth the trouble.

Directly’s premise is that the most important part of getting a chatbot to work well is to make sure that it’s trained correctly, and its approach to that is very practical: find experts both to troubleshoot questions and provide answers.

As we’ve described before, its platform helps businesses identify and reach out to “experts” in the business or product in question, collect knowledge from them, and then fold that into a company’s AI to help train it and answer questions more accurately. It also looks at data input and output into those AI systems to figure out what is working, and what is not, and how to fix that, too.

The information is typically collected by way of question-and-answer sessions. Directly compensates experts both for submitting information as well as to pay out royalties when their knowledge has been put to use, “just as you would in traditional copyright licensing in music,” its co-founder Antony Brydon explained to me earlier this year.

It can take as little as 100 experts, but potentially many more, to train a system, depending on how much the information needs to be updated over time. (Directly’s work for Xbox, for example, used 1,000 experts but has to date answered millions of questions.)

Directly’s pitch to customers is that building a better chatbot can help deflect more questions from actual live agents (and subsequently cut operational costs for a business). It claims that customer contacts can be reduced by up to 80%, with customer satisfaction by up to 20%, as a result.

What’s interesting is that now Directly sees an opportunity in expanding that expert ecosystem to a wider group of partners, some of which might have previously been seen as competitors. (Not unlike Amazon’s AI powering a multitude of other businesses, some of which might also be in the market of selling the same services that Amazon does).

The partner ecosystem, as Directly calls it, use APIs to link into Directly’s platform. Meya, Percept.ai, and SmartAction — which themselves provide a range of customer service automation tools — are three of the first users.

“The team at Directly have quickly proven to be trusted and invaluable partners,” said Erik Kalviainen, CEO at Meya, in a statement. “As a result of our collaboration, Meya is now able to take advantage of a whole new set of capabilities that will enable us to deliver automated solutions both faster and with higher resolution rates, without customers needing to deploy significant internal resources. That’s a powerful advantage at a time when scale and efficiency are key to any successful customer support operation.”

The prospect of a bigger business funnel beyond even what Directly was pulling in itself is likely what attracted the most recent investment.

“Directly has established itself as a true leader in helping customers thrive during these turbulent economic times,” said Tyler Peterson, Partner at Triangle Peak Partners, in a statement. “There is little doubt that automation will play a tremendous role in the future of customer support, but Directly is realizing that potential today. Their platform enables businesses to strike just the right balance between automation and human support, helping them adopt AI-powered solutions in a way that is practical, accessible, and demonstrably effective.”

In January, Mike de la Cruz, who took over as CEO at the time of the funding announcement, said the company was gearing up for a larger Series C in 2021. It’s not clear how and if that will be impacted by the current state of the world. But in the meantime, as more organizations are looking for ways to connect with customers outside of channels that might require people to physically visit stores, or for employees to sit in call centres, it presents a huge opportunity for companies like this one.

“At its core, our business is about helping customer support leaders resolve customer issues with the right mix of automation and human support,” said de la Cruz in a statement. “It’s one thing to deliver a great product today, but we’re committed to ensuring that our customers have the solutions they need over the long term. That means constantly investing in our platform and expanding our capabilities, so that we can keep up with the rapid pace of technological change and an unpredictable economic landscape. These new partnerships and this latest expansion of our recent funding round have positioned us to do just that. We’re excited to be collaborating with our new partners, and very thankful to all of our investors for their support.”

May
20
2020
--

Identity management startup Truework raises $30M to help you verify your work history

As organizations look for safe and efficient ways of running their services in the new global paradigm of increased social distancing, a startup that has built a platform to help people verify their work details in a secure way is announcing a round of growth funding.

Truework, which provides a way for banks, apartment-rental agencies, and others to check the employment details of an applicant in a quick and secure manner online, has raised $30 million, money that CEO and co-founder Ryan Sandler said in an interview that it would use both grow its existing business, as well to explore adding more details — both via its own service and via third-party partnerships — to the identity information that it shares.

The Series B is being led by Activant Capital — a VC that focuses on B2B2C startups — with participation also from Sequoia Capital and Khosla Ventures, as well as a number of high profile execs and entrepreneurs — Jeff Weiner (LinkedIn); Tom Gonser (Docusign); William Hockey (Plaid); and Daniel Yanisse (Checkr) among them.

The LinkedIn connection is an interesting one. Both Sandler and co-founder Victor Kabdebon were engineers at LinkedIn working on profile and improving the kind of data that LinkedIn sources on its users (the third co-founder, Ethan Winchell, previously worked elsewhere), and while Sandler tells me that the idea for Truework came to them after both left the company, he sees LinkedIn “as a potential partner here,” so watch this space.

The problem that Truework is aiming to solve is the very clunky, and often insecure, nature of how organizations typically verify an individual’s employment information. Details about salary and where you work, and the job you do, are typically essential for larger financial transactions, whether it’s securing a mortgage or another financing loan, or renting an apartment, or for others who might need to verify that information for other purposes, such as staffing agencies.

Typically that kind of information gathering is time-consuming both to reach out to get and to confirm (Sandler cites statistics that say on average an HR person spends over 1,000 hours annually answering questions like these). And some of the systems that have been put in place to do that work — specifically consumer reporting agencies — have been proven not be as watertight in their security as you would hope.

“Your data is flowing around lots of third party platforms,” Sandler said. “You’re releasing a lot of information about yourself and you don’t know where the data is going and if it’s even accurate.”

Truework’s solution is based around a platform, and now an API, that a company buys into. In turn, it gives its employees the ability to consent to using it. If the employee agrees, Truework sources a worker’s place of employment and salary details. Then when a third party wants to verify that information for the person in question, it uses Truework to do so, rather than contacting the company directly.

Then, when those queries come in, Truework contacts the individual with an email or text about the inquiry, so that he/she can okay (or reject) the request. Truework’s Sandler said that it uses ISO27001, SOC2 Type 1 & 2 protections, but he also confirmed that it does store your data.

Currently the idea is that if you leave your job, your next employer would need to also be a Truework customer in order to update the information it has on you: the startup makes money by charging both larger enterprises to make the platform accessible to employees as well as those organizations that are querying for the information/verifications (small business employers using the platform can use it for free).

Over time, the plan will be to configure a way to update your profiles regardless of where you work.

So far, the concept has seen a lot of traction: there are 20,000 small businesses using the platform, as well as 100 enterprises, with the number of verifiers (its term for those requesting information) now at 40,000. Customers include The College Board, The Real Real, Oscar Health, The Motley Fool, and Tuft & Needle.

While all of this was built at a time before COVID-19, the global health pandemic has highlighted the importance of having more efficient and secure systems for doing work, especially at a time when many people are not in the office.

“Our biggest competitor is the fax machine and the phone call,” Sandler said, “but as companies move to more remote working, no one is manning the phones or fax machines. But these operations still need to happen.” Indeed, he points out that at the end of 2019, Truework had 25,000 verifiers. Nearly doubling its end-user customers speaks to the huge boost in business it has seen in the last five months.

That is part of the reason the company has attracted the investment it has.

“Truework’s platform sits at the center of consumers’ most important transactions and life events – from purchasing a home, to securing a new job,” said Steve Sarracino, founder and partner at Activant Capital, in a statement. “Up until now, the identity verification process has been painful, expensive, and opaque for all parties involved, something we’ve seen first-hand in the mortgage space. Starting with income and employment, Truework is setting the standard for consent-based verifications and unlocking the next wave of the digital economy. We’re thrilled to be partnering with this exceptional team as they continue to scale the platform.” Sarracino is joining the board with this round.

While a big focus in the world of tech right now may be on building more and better ways of connecting goods and services to people in as contact-free a way as possible, the bigger play around identity management has been around for years, and will continue to be a huge part of how the internet develops in the future.

The fax and phone may be the primary tools these days for verifying employment information, but on a more general level, there are companies like Facebook, Google and Apple already playing a big role in how we “log in” and use all kinds of services online. They, along with others focused squarely on the identity and verification space (and Truework works with some of them), and using a myriad of approaches that include biometrics, ‘wallet’-style passports that link to information elsewhere, and more, will all continue to try to make the case for why they might be the most trusted provider of that layer of information, at a time when we may want to share less and especially share less with multiple parties.

That is the bigger opportunity that investors are betting on here.

“The increasing momentum Truework has seen since its founding in 2017 demonstrates the critical need for transformation in this space,” said Alfred Lin, partner at Sequoia, in a statement. “Privacy, especially around identity data, is becoming increasingly top of mind for consumers and how they make transactions online.”

Truework has now raised close to $45 million, and it’s not disclosing its valuation.

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