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Saturday, February 16, 2019

How to read fiction to build a startup

“The book itself is a curious artefact, not showy in its technology but complex and extremely efficient: a really neat little device, compact, often very pleasant to look at and handle, that can last decades, even centuries. It doesn’t have to be plugged in, activated, or performed by a machine; all it needs is light, a human eye, and a human mind. It is not one of a kind, and it is not ephemeral. It lasts. It is reliable. If a book told you something when you were 15, it will tell it to you again when you’re 50, though you may understand it so differently that it seems you’re reading a whole new book.”—Ursula K. Le Guin

Every year, Bill Gates goes off-grid, leaves friends and family behind, and spends two weeks holed up in a cabin reading books. His annual reading list rivals Oprah’s Book Club as a publishing kingmaker. Not to be outdone, Mark Zuckerberg shared a reading recommendation every two weeks for a year, dubbing 2015 his “Year of Books.” Susan Wojcicki, CEO of YouTube, joined the board of Room to Read when she realized how books like The Evolution of Calpurnia Tate were inspiring girls to pursue careers in science and technology. Many a biotech entrepreneur treasures a dog-eared copy of Daniel Suarez’s Change Agent, which extrapolates the future of CRISPR. Noah Yuval Harari’s sweeping account of world history, Sapiens, is de rigueur for Silicon Valley nightstands.

This obsession with literature isn’t limited to founders. Investors are just as avid bookworms. “Reading was my first love,” says AngelList’s Naval Ravikant. “There is always a book to capture the imagination.” Ravikant reads dozens of books at a time, dipping in and out of each one nonlinearly. When asked about his preternatural instincts, Lux Capital’s Josh Wolfe advised investors to “read voraciously and connect dots.” Foundry Group’s Brad Feld has reviewed 1,197 books on Goodreads and especially loves science fiction novels that “make the step function leaps in imagination that represent the coming dislocation from our current reality.”

This begs a fascinating question: Why do the people building the future spend so much of their scarcest resource — time — reading books?

Image by NiseriN via Getty Images. Reading time approximately 14 minutes.

Don’t Predict, Reframe

Do innovators read in order to mine literature for ideas? The Kindle was built to the specs of a science fictional children’s storybook featured in Neal Stephenson’s novel The Diamond Age, in fact, the Kindle project team was originally codenamed “Fiona” after the novel’s protagonist. Jeff Bezos later hired Stephenson as the first employee at his space startup Blue Origin. But this literary prototyping is the exception that proves the rule. To understand the extent of the feedback loop between books and technology, it’s necessary to attack the subject from a less direct angle.

David Mitchell’s Cloud Atlas is full of indirect angles that all manage to reveal deeper truths. It’s a mind-bending novel that follows six different characters through an intricate web of interconnected stories spanning three centuries. The book is a feat of pure M.C. Escher-esque imagination, featuring a structure as creative and compelling as its content. Mitchell takes the reader on a journey ranging from the 19th century South Pacific to a far-future Korean corpocracy and challenges the reader to rethink the very idea of civilization along the way. “Power, time, gravity, love,” writes Mitchell. “The forces that really kick ass are all invisible.”

The technological incarnations of these invisible forces are precisely what Kevin Kelly seeks to catalog in The Inevitable. Kelly is an enthusiastic observer of the impact of technology on the human condition. He was a co-founder of Wired, and the insights explored in his book are deep, provocative, and wide-ranging. In his own words, “When answers become cheap, good questions become more difficult and therefore more valuable.” The Inevitable raises many important questions that will shape the next few decades, not least of which concern the impacts of AI:

“Over the past 60 years, as mechanical processes have replicated behaviors and talents we thought were unique to humans, we’ve had to change our minds about what sets us apart. As we invent more species of AI, we will be forced to surrender more of what is supposedly unique about humans. Each step of surrender—we are not the only mind that can play chess, fly a plane, make music, or invent a mathematical law—will be painful and sad. We’ll spend the next three decades—indeed, perhaps the next century—in a permanent identity crisis, continually asking ourselves what humans are good for. If we aren’t unique toolmakers, or artists, or moral ethicists, then what, if anything, makes us special? In the grandest irony of all, the greatest benefit of an everyday, utilitarian AI will not be increased productivity or an economics of abundance or a new way of doing science—although all those will happen. The greatest benefit of the arrival of artificial intelligence is that AIs will help define humanity. We need AIs to tell us who we are.”

It is precisely this kind of an AI-influenced world that Richard Powers describes so powerfully in his extraordinary novel The Overstory:

“Signals swarm through Mimi’s phone. Suppressed updates and smart alerts chime at her. Notifications to flick away. Viral memes and clickable comment wars, millions of unread posts demanding to be ranked. Everyone around her in the park is likewise busy, tapping and swiping, each with a universe in his palm. A massive, crowd-sourced urgency unfolds in Like-Land, and the learners, watching over these humans’ shoulders, noting each time a person clicks, begin to see what it might be: people, vanishing en masse into a replicated paradise.”

Taking this a step further, Virginia Heffernan points out in Magic and Loss that living in a digitally mediated reality impacts our inner lives at least as much as the world we inhabit:

“The Internet suggests immortality—comes just shy of promising it—with its magic. With its readability and persistence of data. With its suggestion of universal connectedness. With its disembodied imagines and sounds. And then, just as suddenly, it stirs grief: the deep feeling that digitization has cost us something very profound. That connectedness is illusory; that we’re all more alone than ever.”

And it is the questionable assumptions underlying such a future that Nick Harkaway enumerates in his existential speculative thriller Gnomon:

“Imagine how safe it would feel to know that no one could ever commit a crime of violence and go unnoticed, ever again. Imagine what it would mean to us to know—know for certain—that the plane or the bus we’re travelling on is properly maintained, that the teacher who looks after our children doesn’t have ugly secrets. All it would cost is our privacy, and to be honest who really cares about that? What secrets would you need to keep from a mathematical construct without a heart? From a card index? Why would it matter? And there couldn’t be any abuse of the system, because the system would be built not to allow it. It’s the pathway we’re taking now, that we’ve been on for a while.” 

Machine learning pioneer, former President of Google China, and leading Chinese venture capitalist Kai-Fu Lee loves reading science fiction in this vein — books that extrapolate AI futures — like Hao Jingfang’s Hugo Award-winning Folding Beijing. Lee’s own book, AI Superpowers, provides a thought-provoking overview of the burgeoning feedback loop between machine learning and geopolitics. As AI becomes more and more powerful, it becomes an instrument of power, and this book outlines what that means for the 21st century world stage:

“Many techno-optimists and historians would argue that productivity gains from new technology almost always produce benefits throughout the economy, creating more jobs and prosperity than before. But not all inventions are created equal. Some changes replace one kind of labor (the calculator), and some disrupt a whole industry (the cotton gin). Then there are technological changes on a grander scale. These don’t merely affect one task or one industry but drive changes across hundreds of them. In the past three centuries, we’ve only really seen three such inventions: the steam engine, electrification, and information technology.”

So what’s different this time? Lee points out that “AI is inherently monopolistic: A company with more data and better algorithms will gain ever more users and data. This self-reinforcing cycle will lead to winner-take-all markets, with one company making massive profits while its rivals languish.” This tendency toward centralization has profound implications for the restructuring of world order:

“The AI revolution will be of the magnitude of the Industrial Revolution—but probably larger and definitely faster. Where the steam engine only took over physical labor, AI can perform both intellectual and physical labor. And where the Industrial Revolution took centuries to spread beyond Europe and the U.S., AI applications are already being adopted simultaneously all across the world.”

Cloud Atlas, The Inevitable, The Overstory, Gnomon, Folding Beijing, and AI Superpowers might appear to predict the future, but in fact they do something far more interesting and useful: reframe the present. They invite us to look at the world from new angles and through fresh eyes. And cultivating “beginner’s mind” is the problem for anyone hoping to build or bet on the future.



https://ift.tt/eA8V8J How to read fiction to build a startup https://tcrn.ch/2Iffkbv

Startups Weekly: Is Y Combinator’s latest cohort too big?

Greetings from Chittorgarh, one of my stops on a two-week excursion through Goa and Rajasthan, India. I’ve been a little too busy exploring, photographing cows and monkeys and eating a lot of delicious food to keep up with *all* the tech news, but I’ve still got the highlights.

For starters, if you haven’t heard yet, TechCrunch launched Extra Crunch, a paid premium subscription offering full of amazing content. As part of Extra Crunch, we’ll be doing deep dives on select businesses, beginning with Patreon. Read Patreon’s founding story here and learn how two college roommates built the world’s leading creator platform. Plus, we’ve got insights on Patreon’s product, business strategy, competitors and more.

Sign up for Extra Crunch membership here.

On to other news…

Y Combinator’s latest batch of startups is huge

So huge the Silicon Valley accelerator had to move locations and set up two stages at its upcoming demo days (March 18-19) to accommodate the more than 200 startups ready to pitch investors (who will have to hop between stages at the event). There will also be a virtual demo day live-streamed for some investors to watch “because there are so few seats.” Here’s what I’m wondering… At what point is a YC cohort too big? If investors aren’t even able to view all the companies at Demo Day, what exactly is the point? Send me your thoughts.

Deal of the week

Another week, another SoftBank deal. The Vision Fund’s latest bet is autonomous delivery. The Japanese telecom giant has invested $940 million in Nuro, the developer of a custom unmanned vehicle designed for last-mile delivery of local goods and services. The startup, also backed by Greylock and Gaorong Capital, will use the cash to expand its delivery service, add new partners, hire employees and scale up its fleet of self-driving bots. And while we’re on the subject of autonomous, TuSimple, a self-driving truck startup, has raised a $95 million Series D at a unicorn valuation.

Mamoon Hamid and Ilya Fushman

The future of KPCB

TechCrunch’s Connie Loizos spoke with Mamoon Hamid and Ilya Fushman, who joined Kleiner Perkins from Social Capital and Index Ventures, respectively. The pair talked about Kleiner Perkins, touching on people who’ve left the firm, how its decision-making process now works, why there are no senior women in its ranks and what they make of SoftBank’s Vision Fund.

Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

Facebook almost bought Unity

Facebook CEO Mark Zuckerberg considered a multi-billion-dollar purchase of Unity, a game development platform. This is according to a new book coming out next week, “The History of the Future,” by Blake Harris, which digs deep into the founding story of Oculus and the drama surrounding the Facebook acquisition, subsequent lawsuits and personal politics of founder Palmer Luckey. Here’s more on the acquisition-that-could-have-been from TechCrunch’s Lucas Matney.

Venture capital funds

Indonesia-focused Intudo Ventures raised a new $50 million fund this week to invest in the world’s fourth most populated country; InReach Ventures, the “AI-powered” European VC, closed a new €53 million early-stage vehicle; and btov Partners closed an €80 million fund aimed at industrial tech startups.

Xiaomi-backed electric toothbrush startup Soocas raises $30M

Startup cash

Jobvite raises $200M+ and acquires three recruitment startups to expand its platform play
Opendoor files to raise another $200M
DriveNets emerges from stealth with $110M for its cloud-based alternative to network routers
Figma gets $40M Series C to put design tools in the cloud
Xiaomi-backed electric toothbrush Soocas raises $30 million Series C
Malt raises $28.6 million for its freelancer platform
Elevate Security announces $8M Series A to alter employee security behavior
Massless raises $2M to build an Apple Pencil for virtual reality

Subscription scooters

Just when you thought the scooter boom and the subscription-boom wouldn’t intersect, Grover arrived to prove you wrong. The startup is launching an e-scooter monthly subscription service in Germany. Their big idea is that instead of purchasing an e-scooter outright, GroverGo customers can enjoy unlimited e-scooter rides without the upfront costs or commitment of owning an e-scooter.

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and General Catalyst’s Niko Bonatsos chat startups.

Want more TechCrunch newsletters? Sign up here.



https://tcrn.ch/2DMjYYR Startups Weekly: Is Y Combinator’s latest cohort too big? https://tcrn.ch/2TS9X3t

Friday, February 15, 2019

Apple acquires talking Barbie voicetech startup PullString

Apple has just bought up the talent it needs to make talking toys a part of Siri, HomePod, and its voice strategy. Apple has acquired PullString, also known as ToyTalk, according to Axios’ Dan Primack and Ina Fried. The company makes voice experience design tools, artificial intelligence to power those experiences, and toys like talking Barbie and Thomas The Tank Engine toys in partnership with Mattel. Founded in 2011 by former Pixar executives, PullString went on to raise $44 million.

Apple’s Siri is seen as lagging far behind Amazon Alexa and Google Assistant, not only in voice recognition and utility, but also in terms of developer ecosystem. Google and Amazon has built platforms to distribute Skills from tons of voice app makers, including storytelling, quizzes, and other games for kids. If Apple wants to take a real shot at becoming the center of your connected living room with Siri and HomePod, it will need to play nice with the children who spend their time there. Buying PullString could jumpstart Apple’s in-house catalog of speech-activated toys for kids as well as beef up its tools for voice developers.

PullString did catch some flack for being a “child surveillance device” back in 2015, but countered by detailing the security built intoHello Barbie product and saying it’d never been hacked to steal childrens’ voice recordings or other sensitive info. Privacy norms have changed since with so many people readily buying always-listening Echos and Google Homes.

We’ve reached out to Apple and PullString for more details. The startup raised its cash from investors including Khosla Ventures, CRV, Greylock, First Round, and True Ventures, with a Series D in 2016 as its last raise. While the voicetech space has since exploded, it can still be difficult for voice experience developers to earn money without accompanying physical products, and many enterprises still aren’t sure what to build with tools like those offered by PullString. That might have led the startup to see a brighter future with Apple, strengthening one of the most ubiquitous though also most detested voice assistants.



https://tcrn.ch/2SXm8yw Apple acquires talking Barbie voicetech startup PullString https://tcrn.ch/2S5WKSA

GoTrendier raises $3.5 million to take on Spanish-language fashion marketplaces

Thanks to environmentally conscious young buyers, throwaway culture is dying not only in the U.S., but also in Latin America — and startups are poised to jump in with services to help people recycle used clothing.

GoTrendier, a peer-to-peer fashion marketplace operative in Mexico and Colombia, has raised $3.5 million USD to do just that. And investors are eyeing the startup as the digital fashion marketplace growth leader in Spanish-speaking countries. 

GoTrendier, founded by Belén Cabido, is a platform that lets users buy and sell secondhand clothing. Cabido tells me that the new capital will enable GoTrendier to expand deeper into Mexico and Colombia, and launch in a new country: Chile. 

GoTrendier enables users to buy and sell used items through the GoTrendier site and app. The platform categorizes users as either salespeople or buyers. Salespeople create their own stores by uploading photos of garments along with a description and sale price. Buyers browse the platform for deals and once a buyer bites, the seller is given a prepaid shipping label. 

Sound familiar? Businesses like Poshmark and GoTrendier have no actual inventory, which allows the companies to take on less of a risk by having smaller overhead costs. In turn, the company acts as more of a social community for fashion exchanges.

In order to make money, Poshmark takes a flat commission of $2.95 for sales under $15. For anything more than that, the seller keeps 80 percent of their sale and Poshmark takes a 20 percent commission. Poshmark also owes its success to the socially connected shopping experience it created and the audience building features available to sellers — as detailed in this Harvard Business School study. GoTrendier has a similar commission pricing strategy, taking 20 percent off plus an additional nine pesos (about 48 cents in U.S. currency) for all purchases. The service also takes advantage of social media and sharing features to help connect and engage its fashion-loving community. 

But these companies are also largely venture-backed. In the case of GoTrendier, the round gave shareholder entry to Ataria, a Peruvian fund that invests in early-stage tech companies with high earning potential. Existing investors Banco Sabadell and IGNIA reinforced their position, along with Barcelona-based investors Antai Venture Builder, Bonsai Venture Capital and Pedralbes Partners.

GoTrendier amassed a user base of 1.3 million buyers and sellers throughout its four years of existence. The service operates in Mexico and Colombia, and will use its newest capital to launch in Chile — another market Cabido says is experiencing high demand for a secondhand fashion buying and selling service.

Online marketplace companies are growing in Latin America as smartphone adoption and digital banking services multiply in the region. But international expansion has proven to be an issue. Enjoei, a similar fashion marketplace that owns the market share in Brazil, had a botched attempt at expanding to Argentina due to Portugese-Spanish language barriers and eventually determined that Brazil was a large enough market in which to build its business — thus carving out an opportunity for companies like GoTrendier that offer the same services to dominate the surrounding Spanish-speaking markets in Latin America.

Many have remarked that Latin America’s tech scene is filled with copycats — or companies that emulate the business models of American or European startups and bring the same service to their home market. In order to secure bigger foreign investment checks, founders from growing tech regions like Latin America certainly must invent proprietary technologies. Yet there’s still value — and capital — in so-called copycat businesses. Why? Because the users are there and in some cases it’s just easier to start up.

According to investor Sergio Pérez of Sabadell Venture Capital, “The volume of the market for buying and selling second-hand clothes in the world was 360 million transactions in 2017 and is expected to reach 400 million in 2022.” A 2018 report from ThredUp also claimed that the size of the global secondhand market is set to hit $41 billion by 2022. The “throwaway” culture is disappearing thanks to environmentally conscious millennial buyers. As designer Stella McCartney famously said, “The future of fashion is circular – it will be restorative and regenerative by design and the clothes we love never end up as waste.” By buying on GoTrendier, the company claims its users have been able to save USD $12 million and have avoided more than 1,000 tons of CO2 emissions.

Founders building companies in Latin America aren’t necessarily as capital-hungry as Silicon Valley-based founders, (where a Series A can now equate to $68 million, apparently). Cabido tells me her company is able to fulfill operations and marketing needs with a lean staff of 30, noting that there’s a lot of natural demand for buying and selling used clothing in these regions, thus creating organic growth for her business. She wasn’t looking to raise capital, but investors had their eye on her. “[Investors] saw the tension of the marketplace, and we demonstrated that GoTrendier’s user base could be bigger and bigger,” she says. With sights set on new markets like Chile and Peru, Cabido decided to move forward and close the round.  

Poshmark, which benefits from indirect and same-side network effects, has raised $153 million to date from investors like Temasek Holdings, GGV and Menlo Ventures. Just like GoTrendier, Poshmark’s Series A was also a $3.5 million round.

Who’s to say that that amount of capital can’t boost a network effects growth model in Latin America too? The users are certainly waiting. 



https://tcrn.ch/2SSzwUv GoTrendier raises $3.5 million to take on Spanish-language fashion marketplaces https://tcrn.ch/2Ebb5tB

Even years later, Twitter doesn’t delete your direct messages

When does “delete” really mean delete? Not always or even at all if you’re Twitter.

Twitter retains direct messages for years, including messages you and others have deleted, but also data sent to and from accounts that have been deactivated and suspended, according to security researcher Karan Saini.

Saini found years-old messages found in a file from an archive of his data obtained through the website from accounts that were no longer on Twitter. He also filed a similar bug, found a year earlier but not disclosed until now, that allowed him to use a since-deprecated API to retrieve direct messages even after a message was deleted from both the sender and the recipient — though, the bug wasn’t able to retrieve messages from suspended accounts.

Saini told TechCrunch that he had “concerns” that the data was retained by Twitter for so long.

Direct messages once let users to “unsend” messages from someone else’s inbox, simply by deleting it from their own. Twitter changed this years ago, and now only allows a user to delete messages from their account. “Others in the conversation will still be able to see direct messages or conversations that you have deleted,” Twitter says in a help page. Twitter also says in its privacy policy that anyone wanting to leave the service can have their account “deactivated and then deleted.” After a 30-day grace period, the account disappears and along with its data.

But, in our tests, we could recover direct messages from years ago — including old messages that had since been lost to suspended or deleted accounts. By downloading your account’s data, it’s possible to download all of the data Twitter stores on you.

A conversation, dated March 2016, with a suspended Twitter account was still retrievable today. (Image: TechCrunch

Saini says this is a “functional bug” rather than a security flaw, but argued that the bug allows anyone a “clear bypass” of Twitter mechanisms to prevent accessed to suspended or deactivated accounts.

But it’s also a privacy matter, and a reminder that “delete” doesn’t mean delete — especially with your direct messages. That can open up users, particularly high-risk accounts like journalist and activists, to government data demands that call for data from years earlier.

That’s despite Twitter’s claim that once an account has been deactivated, there is “a very brief period in which we may be able to access account information, including tweets,” to law enforcement.

A Twitter spokesperson said the company was “looking into this further to ensure we have considered the entire scope of the issue.”

Retaining direct messages for years may put the company in a legal grey area ground amid Europe’s new data protection laws, which allows users to demand that a company deletes their data.

Neil Brown, a telecoms, tech and internet lawyer at U.K. law firm Decoded Legal, said there’s “no formality at all” to how a user can ask for their data to be deleted. Any request from a user to delete their data that’s directly communicated to the company “is a valid exercise” of a user’s rights, he said.

Companies can be fined up to four percent of their annual turnover for violating GDPR rules.

“A delete button is perhaps a different matter, as it is not obvious that ‘delete’ means the same as ‘exercise my right of erasure’,” said Brown. Given that there’s no case law yet under the new General Data Protection Regulation regime, it will be up to the courts to decide, he said.

When asked if Twitter thinks that consent to retain direct messages is withdrawn when a message or account is deleted, Twitter’s spokesperson had “nothing further” to add.



from Social – TechCrunch https://tcrn.ch/2V2LOY1 Even years later, Twitter doesn’t delete your direct messages Zack Whittaker https://tcrn.ch/2EcA3Zy
via IFTTT

3DEN raises $2M to create pay-as-you-go urban spaces

3DEN is building spaces for what it calls the “in-between moments” of your day.

The name (pronounced “Eden”) comes from the idea of the “third place” — a space that’s neither home nor work. Founder and CEO Ben Silver told me the idea is to create a space that people can use if, say, they’ve got 45 minutes to fill between meetings, or if they’ve just gotten off a red eye flight and need somewhere to freshen up.

Coffee shops, coworking spaces, gyms or hotels might serve some of those functions, but Silver said 3DEN is “aggregating many different services” and bringing them together into “a very reliable space.” He suggested that the closest analogue might be a members-only clubhouse — except that instead of charging a steep membership fee, 3den requires no commitment, with pricing start at $6 for each 30 minutes of your visit.

Earlier this week, I dropped by the site of the first 3den, located in the shopping area of New York City’s Hudson Yards development. The space is still being built, but I saw booths for phone calls, private showers and even swings for relaxing.

Silver said there will be a meditation space and Casper nap pods, too. He emphasized the nature-inspired design, with plenty of trees and plants, as well as the space’s “acoustic zoning,” with some areas designated for socializing and others designed to be quieter and more restful.

So if you want to catch up on some work, make some calls or even host a meeting (you can invite and pay for up to two guests), you can do that. If you just want to chill out and relax, you can do that, too.

Silver said that while the space will be staffed with a few hosts, technology will be key to the experience, with most transactions being handled via smartphone app. If you’re interested in visiting an 3den space, you check-in via the app (which will tell you the current crowd level, and put you on the waiting list if the space is at capacity) and you can also reserve a shower and make purchases.

3DEN’s core services will be included in that $6-per-half-hour price, but Silver said there will be a retail element as well, with visitors able to buy products in categories like food and health/beauty. He also said he’s exploring additional pricing models (such as corporate memberships) for regular guests, but he emphasized the importance of “no commitments” pricing that makes the space accessible to a wide swath of visitors.

The seed round was led by b8ta and Graphene Ventures, with participation from Colle Capital Partners, The Stable, JTRE, InVision CEO Clark Valberg, Target’s former Chief Strategy and Innovation Officer Casey Carl and Firebase founder Andrew Lee.

The first 3DEN location has a planned opening of March 15, and Silver said the company is also negotiating for four additional locations across New York City.



https://ift.tt/eA8V8J 3DEN raises $2M to create pay-as-you-go urban spaces https://tcrn.ch/2tk9OKq

ChargedUp picks up £1.2M seed to grow its mobile charging network across UK

{rss:content:encoded} ChargedUp picks up £1.2M seed to grow its mobile charging network across UK https://tcrn.ch/2GGGh5w https://tcrn.ch/2to5M3G February 15, 2019 at 10:00AM

ChargedUp, a U.K. startup that offers a mobile charging network that takes inspiration from bike-sharing, has closed £1.2 million in seed investment. Leading the round is Sir John Hegarty’s fund The Garage, and the ex-Innocent Smoothie founders fund JamJar. The funding will be used to grow the offering across the U.K. and for international expansion.

Founded by Hugo Tilmouth, Charlie Baron, Hakeem Buge and Forrest Skerman Stevenson, ChargedUp has set out to solve the dead mobile phone battery problem with a charging network. However, rather than offer fixed charging points, the team has developed a solution that lets you rent a mobile charging pack from one destination and return it at different location if needed. That way, mobile phone use remains mobile.

“It’s annoying and inconvenient to be out and about with a dying phone battery,” says CEO Hugo Tilmouth. We’ve all been there and I was inspired to do something about it through my own experiences. I was at a cricket match at London’s Lord’s Cricket Ground and waiting for a call for a last round interview with a large tech firm, and was running very low on charge! I ended up having to leave the cricket ground, buy a power bank and then rode a Boris Bike home and the light bulb went off in my head! Why not combine the flexibility of the sharing economy with the need of a ‘ChargedUp’ phone!”.

The solution was to create multiple distribution points across a city, located in the venues where people spend most of their time. This includes cafes, bars and restaurants. “Our solution uses an app to enables users to find the nearest stations, unlock a sharable power bank, and then return it to any station in the network and only pay for the time they use. Our goal is to be never five minutes from a charge,” adds Tilmouth

In the next six months, ChargedUp says it will expand its network of over 250 vending stations in London’s bars, cafes and restaurants across to other large metropolitan areas in the U.K. Last month, the young startup partnered with Marks and Spencer to trial the platform in its central London stores. If the trial is successful, ChargedUp says it could lead to providing its phone charging solution to all M&S customers by the end of 2019.

“Since launch we have delivered over 1 million minutes of charge across the network, and our customers love the service,” says Tilmouth. “Like the sharing scooter and bike companies, we operate a time based model. We simply charge our users a simple price of 50p per 30 mins to charge their phones. We also make revenue from the advertising space both on our batteries and within our app”.

With regards to competition, Tilmouth says ChargedUp’s most direct competitor is the charging lockers found in some public spaces, such as ChargeBox. “We do not see this as a viable alternative to ChargedUp as users are forced to lock their phones away preventing them from using them while it charges. They are also prone to theft and damage. We are also differentiated by our use of green energy offsetting throughout the network,” he says.

Meanwhile, in a statement investor Sir John Hegarty talks up the revenue opportunities beyond rentals, which includes advertising, rewards and loyalty. “At its simplest, ChargedUp addresses a massive need in the market, mobile devices running out of power. But more than that, ChargedUp provides advertisers with a powerful medium that connects directly with their audience at point of purchase,” he says.

Prior to today’s seed round, ChargedUp received investment from Telefonica via the Wayra accelerator and Brent Hoberman’s Founders Factory.

ChargedUp picks up £1.2M seed to grow its mobile charging network across UK

ChargedUp, a U.K. startup that offers a mobile charging network that takes inspiration from bike-sharing, has closed £1.2 million in seed investment. Leading the round is Sir John Hegarty’s fund The Garage, and the ex-Innocent Smoothie founders fund JamJar. The funding will be used to grow the offering across the U.K. and for international expansion.

Founded by Hugo Tilmouth, Charlie Baron, Hakeem Buge and Forrest Skerman Stevenson, ChargedUp has set out to solve the dead mobile phone battery problem with a charging network. However, rather than offer fixed charging points, the team has developed a solution that lets you rent a mobile charging pack from one destination and return it at different location if needed. That way, mobile phone use remains mobile.

“It’s annoying and inconvenient to be out and about with a dying phone battery,” says CEO Hugo Tilmouth. We’ve all been there and I was inspired to do something about it through my own experiences. I was at a cricket match at London’s Lord’s Cricket Ground and waiting for a call for a last round interview with a large tech firm, and was running very low on charge! I ended up having to leave the cricket ground, buy a power bank and then rode a Boris Bike home and the light bulb went off in my head! Why not combine the flexibility of the sharing economy with the need of a ‘ChargedUp’ phone!”.

The solution was to create multiple distribution points across a city, located in the venues where people spend most of their time. This includes cafes, bars and restaurants. “Our solution uses an app to enables users to find the nearest stations, unlock a sharable power bank, and then return it to any station in the network and only pay for the time they use. Our goal is to be never five minutes from a charge,” adds Tilmouth

In the next six months, ChargedUp says it will expand its network of over 250 vending stations in London’s bars, cafes and restaurants across to other large metropolitan areas in the U.K. Last month, the young startup partnered with Marks and Spencer to trial the platform in its central London stores. If the trial is successful, ChargedUp says it could lead to providing its phone charging solution to all M&S customers by the end of 2019.

“Since launch we have delivered over 1 million minutes of charge across the network, and our customers love the service,” says Tilmouth. “Like the sharing scooter and bike companies, we operate a time based model. We simply charge our users a simple price of 50p per 30 mins to charge their phones. We also make revenue from the advertising space both on our batteries and within our app”.

With regards to competition, Tilmouth says ChargedUp’s most direct competitor is the charging lockers found in some public spaces, such as ChargeBox. “We do not see this as a viable alternative to ChargedUp as users are forced to lock their phones away preventing them from using them while it charges. They are also prone to theft and damage. We are also differentiated by our use of green energy offsetting throughout the network,” he says.

Meanwhile, in a statement investor Sir John Hegarty talks up the revenue opportunities beyond rentals, which includes advertising, rewards and loyalty. “At its simplest, ChargedUp addresses a massive need in the market, mobile devices running out of power. But more than that, ChargedUp provides advertisers with a powerful medium that connects directly with their audience at point of purchase,” he says.

Prior to today’s seed round, ChargedUp received investment from Telefonica via the Wayra accelerator and Brent Hoberman’s Founders Factory.



https://tcrn.ch/2to5M3G ChargedUp picks up £1.2M seed to grow its mobile charging network across UK https://tcrn.ch/2GGGh5w

Thursday, February 14, 2019

StayTuned Digital helps video creators publish and measure everywhere

If you’re a video creator in 2019, you’re probably thinking about a long list of publishing destinations: YouTube, of course, but also Facebook, Instagram, Twitter, Snapchat and more.

StayTuned Digital is a new startup trying to help video creators and publishers push their content to multiple platforms. The company, which bills itself as “content’s best friend,” is officially unveiling its product today and announcing that it’s raised $2.5 million in funding.

StayTuned was founded by CEO Serge Kassardjian (previously the global head of media app business development for Google Play) and Randy Jimenez (previously CTO at SinglePlatform). Kassardjian told me he saw the need for a product like this during his time at Google, when he would talk to content creators becoming “overwhelmed” by the fragmentation across all the different devices and platforms available to them.

“What’s happened is every single one of the platforms is releasing new formats, new ways to optimize, it’s constantly changing every couple of months,” Kassardjian said.

So with StayTuned, publishers shouldn’t have to worry about all that. Kassardjian said the product focuses on three three major functions: optimizing the video so that it looks good and can perform well on each platform, pushing the video to each platform and then measuring the results, which feeds back into the optimization.

Kassardjian acknowledged that getting into the media business, even as a technology provider, might seem like a bad idea right now, but he said, “There’s a misconception that what’s happening in the world is that media and content is dead, but there’s more media and content ever before.”

Nor does Kassardjian believe that publishers can stop relying on Facebook and other platforms. Sure, they may want to drive more traffic to their own properties or launch their own subscription services, but unless they’re Netflix-sized, they can’t ignore the big platforms entirely.

“We provide ubiquity to where the audience is,” he said.

And when he talks about video publishers, he isn’t just just thinking about traditional media companies (although he’s looking to work with them too). He also said StayTuned could work with newer digital companies, ecommerce retailers and other brands that are created content — and eventually, small businesses.

As for the funding it was led by Bowery Capital, with participation CourtsideVC, Quaker Health, Social Leverage, Liquid 2 Ventures, The Fund, Hive Ventures, Grape Arbor and a number of angel investors. StayTuned is also part the current GCT Startup-in-Residence program.



https://ift.tt/eA8V8J StayTuned Digital helps video creators publish and measure everywhere https://tcrn.ch/2SxC2Al

TikTok spotted testing native video ads

TikTok is testing a new ad product: a sponsored video ad that directs users to the advertiser’s website. The test was spotted in the beta version of the U.S. TikTok app, where a video labeled “Sponsored” from the bike retailer Specialized is showing up in the main feed, along with a blue “Lean More” button that directs users to tap to get more information.

Presumably, this button could be customized to send users to the advertiser’s website or any other web address, but for the time being it only opened the Specialized Bikes (@specializedbikes) profile page within the TikTok app.

However, the profile page itself also sported a few new features, including what appeared to be a tweaked version of the verified account badge.

Below the @specializedbikes username was “Specialized Bikes Page” and a blue checkmark (see below). On other social networks, checkmarks like this usually indicate a user whose account has gone through a verification process of some kind.

Typical TikTok user profiles don’t look like this — they generally only include the username. In some cases, we’ve seen them sport other labels like “popular creator” or “Official Account” — but these have been tagged with a yellowish-orange checkmark, not a blue one.

In addition, a pop-up banner overlay appeared at the bottom of the profile page, which directed users to “Go to Website” followed by another blue “Learn More” button.

Oddly, this pop-up banner didn’t show up all the time, and the “Learn More” button didn’t work — it only re-opened the retailer’s profile page.

As for the video itself, it features a Valentine’s Day heart that you can send to a crush, and, of course, some bikes.

The music backing the clip is Breakbot’s “By Your Side,” but is labeled “Promoted Music.” Weirdly, when you tap on the “Promoted Music” you’re not taken to the soundbite on TikTok like usual, but instead get an error message saying “Ad videos currently do not support this feature.”

The glitches indicate this video ad unit is still very much in the process of being tested, and not a publicly available ad product at this time.

TikTok parent ByteDance only just began to experiment with advertising in the U.S. and U.K. in January.

So far, public tests have only included an app launch pre-roll ad. But according to a leaked pitch deck published by Digiday, there are four TikTok ad products in the works: a brand takeover, an in-feed native video ad, a hashtag challenge and a Snapchat-style 2D lens filter for photos; 3D and AR lens were listed as “coming soon.”

TikTok previously worked with GUESS on a hashtag challenge last year, and has more recently been running app launch pre-roll ads for companies like GrubHub, Disney’s Kingdom Hearts and others. However, a native video ad hadn’t yet been spotted in the wild until now.

According to estimates from Sensor Tower, TikTok has grown to nearly 800 million lifetime installs, not counting Android in China. Factoring that in, it’s fair to say the app has topped 1 billion downloads. As of last July, TikTok claimed to have more than 500 million monthly active users worldwide, excluding the 100 million users it gained from acquiring Musical.ly.

That’s a massive user base, and attractive to advertisers. Plus, native video ads like the one seen in testing would allow brands to participate in the community, instead of interrupting the experience the way video pre-rolls do.

TikTok has been reached for comment, but was not able to provide one at this time. We’ll update if that changes. Specialized declined to comment.



from Social – TechCrunch https://tcrn.ch/2X3fZQI TikTok spotted testing native video ads Sarah Perez https://tcrn.ch/2UUXPyA
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TikTok spotted testing native video ads

{rss:content:encoded} TikTok spotted testing native video ads https://tcrn.ch/2UUXPyA https://tcrn.ch/2X3fZQI February 14, 2019 at 10:51PM

TikTok is testing a new ad product: a sponsored video ad that directs users to the advertiser’s website. The test was spotted in the beta version of the U.S. TikTok app, where a video labeled “Sponsored” from the bike retailer Specialized is showing up in the main feed, along with a blue “Lean More” button that directs users to tap to get more information.

Presumably, this button could be customized to send users to the advertiser’s website or any other web address, but for the time being it only opened the Specialized Bikes (@specializedbikes) profile page within the TikTok app.

However, the profile page itself also sported a few new features, including what appeared to be a tweaked version of the verified account badge.

Below the @specializedbikes username was “Specialized Bikes Page” and a blue checkmark (see below). On other social networks, checkmarks like this usually indicate a user whose account has gone through a verification process of some kind.

Typical TikTok user profiles don’t look like this — they generally only include the username. In some cases, we’ve seen them sport other labels like “popular creator” or “Official Account” — but these have been tagged with a yellowish-orange checkmark, not a blue one.

In addition, a pop-up banner overlay appeared at the bottom of the profile page, which directed users to “Go to Website” followed by another blue “Learn More” button.

Oddly, this pop-up banner didn’t show up all the time, and the “Learn More” button didn’t work — it only re-opened the retailer’s profile page.

As for the video itself, it features a Valentine’s Day heart that you can send to a crush, and, of course, some bikes.

The music backing the clip is Breakbot’s “By Your Side,” but is labeled “Promoted Music.” Weirdly, when you tap on the “Promoted Music” you’re not taken to the soundbite on TikTok like usual, but instead get an error message saying “Ad videos currently do not support this feature.”

The glitches indicate this video ad unit is still very much in the process of being tested, and not a publicly available ad product at this time.

TikTok parent ByteDance only just began to experiment with advertising in the U.S. and U.K. in January.

So far, public tests have only included an app launch pre-roll ad. But according to a leaked pitch deck published by Digiday, there are four TikTok ad products in the works: a brand takeover, an in-feed native video ad, a hashtag challenge and a Snapchat-style 2D lens filter for photos; 3D and AR lens were listed as “coming soon.”

TikTok previously worked with GUESS on a hashtag challenge last year, and has more recently been running app launch pre-roll ads for companies like GrubHub, Disney’s Kingdom Hearts and others. However, a native video ad hadn’t yet been spotted in the wild until now.

According to estimates from Sensor Tower, TikTok has grown to nearly 800 million lifetime installs, not counting Android in China. Factoring that in, it’s fair to say the app has topped 1 billion downloads. As of last July, TikTok claimed to have more than 500 million monthly active users worldwide, excluding the 100 million users it gained from acquiring Musical.ly.

That’s a massive user base, and attractive to advertisers. Plus, native video ads like the one seen in testing would allow brands to participate in the community, instead of interrupting the experience the way video pre-rolls do.

TikTok has been reached for comment, but was not able to provide one at this time. We’ll update if that changes. Specialized declined to comment.

Why your startup may not be as great as everyone says

One of the very first things we ask Israeli entrepreneurs who are hoping to break into the U.S. market is to tell us how their product or service is being received by their target market. What is the feedback? Are potential customers hungry for what the team is selling?

Validation, both of the broader vision and the early product itself, has to be a key focus for any aspiring entrepreneur. Testing your product and getting specific feedback is the only way to know if the company is on the right track or wasting its time chasing down the wrong path. However, even for seasoned founders who understand how vital market validation is to the success of their company, it can be all too easy to get distracted chasing the wrong kind of validation.

Not all validation is created equal. It is crucial that founders differentiate between meaningful validation and vanity “wins” that do little more than make you feel good. Fake validation is everywhere. Here are some common traps founders need to beware of.

Not all customers are born equal

Founders need to be careful about soliciting customers that are either too small or too big for their entry point into the market, or not even in the actual market segment they are targeting. If your early customers are different from those you eventually hope to acquire, then the things they ask for and feedback they provide will skew your short-term goals and put your business on the wrong path.

The best companies and founders are the ones that aren’t afraid to go out and get real, tangible feedback from potential customers.

This is especially common when targeting companies outside the U.S., where startups build long lists of customers in their home market that may or may not have the same set of needs as U.S.-based customers. But by the time these startups are “ready” to expand beyond their home country, they have a hard time selling investors and foreign customers on a product that has only been validated by unfamiliar brands in a small domestic market. Many times, these early customers do not have exposure to competing products in the larger U.S. market, or they have a different set of problems they are aiming to solve altogether, which sends misleading signals to the startup.

Securing customers is obviously crucial to any startup’s success, and can be helpful in shaping how a startup markets itself in the early days. Yet founders must be able to properly contextualize the pedigree of those customers, and always keep the long-term vision front and center. The product isn’t truly validated until you have the right type of customers validating your product.

Corporate guidance?

Large corporations are constantly looking for the next cutting-edge technology that will propel their next phase of growth. This is why countries like Israel, with its deep talent pool in AI, IoT, cybersecurity, etc., have become hotbeds for corporate innovation labs.

At first glance, this is a great thing for Israeli entrepreneurs because it gives them exposure and access to the biggest companies in the world. But proximity and feedback from these groups isn’t everything. Many of these innovation labs accept local startups into their program, which can obviously be exciting for those founders, especially at the early stage. The corporate will then aim to work on a pilot program with the startup to test their product, which could be beneficial for the startup. However, gaining just this one customer doesn’t always guarantee future success, nor does it truly validate the product.

Getting a pilot with a larger corporate can be a great opportunity, but diligent founders must also continue to pursue other pilots. First, pilot programs do not always translate to becoming real customers and founders need to avoid placing all their eggs in one basket. Second, the feedback founders receive from just one large customer may not be representative of the entire customer segment. Simply being in the innovation hub is often not enough by itself to signal long-term success.

All your startup friends say your product is cool

This one may seem obvious, but it remains just as pervasive as ever. It’s easy for first-time founders to drink their own Kool-Aid and get overly hung up on any positive feedback that’s heaped upon them or their product. An overwhelming number of new startups are created in heavily concentrated markets like Silicon Valley, which can make it difficult to find unbiased feedback outside the echo chamber.

It’s not only nice to be told your product is awesome, but it can become downright addicting.

This is especially true for startups that are just beginning to validate their product offering, or a specific piece of their technology. Afraid of approaching someone who “won’t get it,” we see founders chasing the feedback they want to hear, often from peer entrepreneurs, who will be excited by a piece of technology but obviously won’t be the ones who end up buying and using it as real customers.

By self-soliciting feedback from the wrong people, founders make the mistake of focusing on the wrong aspects of the product instead of taking it directly to potential customers in the market who will specifically tell you what they do and don’t like.

You just raised $10 million. That has to mean something, right?

Even raising a sizable round from VCs can be a form of fake momentum. Much has been written on the topic, but it’s easier than ever for some entrepreneurs in specific domains to raise significant capital these days. There are more seed funds out there than ever before. Valuations and deal sizes at the seed and Series A stages continue to climb. What this truly means is that bets on the success or failure of a startup are being made earlier in the life cycle of the company.

Just because a VC chooses to invest in a company does not mean that startup has reached the promised land. VCs are not your customers, and while capital they provide is a critical means to further the development of the business, it does not replace getting real validation from and selling to the target market.

Winning!

Founders often misunderstand or overestimate the tangible impact that awards and PR recognition will have on their businesses. We see this all the time when entrepreneurs come bragging about some competition they won, or a top 10 list they were included in. Don’t get me wrong, awards are nice to have and they can help with attracting talent and hiring into your startup. However, founders need to realize that the value is capped, does not serve as real validation and is typically meaningless to investors and potential customers alike in their evaluation of the startup.

There are several potential traps on the journey to validation, and it can be easy to fall victim if entrepreneurs take their eyes off the prize. It’s not only nice to be told your product is awesome, but it can become downright addicting. The best companies and founders are the ones that aren’t afraid to go out to market and get real, tangible feedback from potential customers. If you’re not doing that, you’re simply making yourself more susceptible to fake validation that can derail your vision.



http://bit.ly/2tpWCDy Why your startup may not be as great as everyone says https://tcrn.ch/2S1aVso

Peltarion raises $20M for its AI platform

Peltarion, a Swedish startup founded by former execs from companies like Spotify, Skype, King, TrueCaller and Google, today announced that it has raised a $20 million Series A funding round led by Euclidean Capital, the family office for hedge fund billionaire James Simons. Previous investors FAM and EQT Ventures also participated, and this round brings the company’s total funding to $35 million.

There is obviously no dearth of AI platforms these days. Peltarion focus on what it calls “operational AI.” The service offers an end-to-end platform that lets you do everything from pre-processing your data to building models and putting them into production. All of this runs in the cloud and developers get access to a graphical user interface for building and testing their models. All of this, the company stresses, ensures that Peltarion’s users don’t have to deal with any of the low-level hardware or software and can instead focus on building their models.

“The speed at which AI systems can be built and deployed on the operational platform is orders of magnitude faster compared to the industry standard tools such as TensorFlow and require far fewer people and decreases the level of technical expertise needed,” Luka Crnkovic-Friis, of Peltarion’s CEO and co-founder, tells me. “All this results in more organizations being able to operationalize AI and focusing on solving problems and creating change.”

In a world where businesses have a plethora of choices, though, why use Peltarion over more established players? “Almost all of our clients are worried about lock-in to any single cloud provider,” Crnkovic-Friis said. “They tend to be fine using storage and compute as they are relatively similar across all the providers and moving to another cloud provider is possible. Equally, they are very wary of the higher-level services that AWS, GCP, Azure, and others provide as it means a complete lock-in.”

Peltarion, of course, argues that its platform doesn’t lock in its users and that other platforms take far more AI expertise to produce commercially viable AI services. The company rightly notes that, outside of the tech giants, most companies still struggle with how to use AI at scale. “They are stuck on the starting blocks, held back by two primary barriers to progress: immature patchwork technology and skills shortage,” said Crnkovic-Friis.

The company will use the new funding to expand its development team and its teams working with its community and partners. It’ll also use the new funding for growth initiatives in the U.S. and other markets.



https://tcrn.ch/2N78xiS Peltarion raises $20M for its AI platform https://tcrn.ch/2SOJ0jP

Figma gets $40 million Series C to put design tools in the cloud

With more industries and organizations recognizing design as a pillar of business, a battle is brewing among makers of design tools. And with a fresh $40 million in Series C funding, Figma is ready to fight.

Co-founder and CEO Dylan Field explains that when he and co-founder Evan Wallace started the company, in 2012, IBM employed one designer for every 72 engineers. Today, IBM has eight engineers to every designer, and that ratio goes to 3:1 on mobile.

This shift, which is reflected more broadly across various industries, has led more people within their organizations to want to be involved in the design process. Which means that tools that once “got the job done” for small design teams and individual freelancers working in a silo stopped being useful.

Field saw the need for real-time collaborative design tools, and dropped out of Brown to join the Thiel fellowship to build Figma. Since launch, the company has grown to 1 million sign-ups, with a total of $82.9 million raised on a $440 million post-money valuation.

Figma offers a freemium model, with the product remaining free up to three editors. From there you bump into the Pro tier, which offers unlimited version history and the ability to create a Design System for $15/month/editor. The org tier bundles in an extra layer of security and content control for $45/month/editor.

A big part of what sets Figma apart is its home on the web. Figma allows designers and collaborators to take care of every part of the process — from initial design to collaboration to storage to prototyping — right within a web app.

“We set out to make a cloud version of these traditional design tools,” said Field. “And what we realized is that once you put it all in the cloud, and make it so that the entire workflow across design and storage and prototyping and developer hand-off and version control… once you connect all that, you’re not actually creating all those different products. You’re creating one integrated system.”

Because of this, common design problems like file versioning and real-time collaboration aren’t really an issue for Figma. Designers can work together, or make changes on their own, and those changes are reflected across the file in real time with a complete revision history. To share something new, they can simply send over a link.

Adobe and InVision, the two other big players in the ring, have both built native apps to handle the same full-stack problem of bundling design tools, collaborative prototyping and file versioning. Adobe has addressed its growing competition through its collaborative design tool Adobe XD. InVision, which started as a collaborative prototyping platform in 2011, has either built or bought its products that expand up and downstream in the workflow.

And it seems that, for some big design teams, Figma’s web app has prevailed — which explains why Sequoia partner Andrew Reed changed his mind. Figma actually went to Sequoia when raising their Series B in 2018, and the VC firm passed up the opportunity.

“At the time, the product was interesting but the people we talk to about these products weren’t pointing to Figma as transforming their companies,” said Reed. “Over the past 12 months, things changed. We called people to ask their opinions and people were calling us proactively and telling us how impactful it was in their companies.”

After looking at the data, Reed said he discovered there were Figma users at half of Sequoia’s portfolio companies. He reached out to Field, sent over a cap table in Figma and within a week Figma closed on what could be seen as an opportunistic round, considering how recently Figma picked up its Series B.

But one perk of the deal is Reed’s experience from investing in GitHub, which is a great exemplar for design tool companies looking to bring some level of cohesiveness to a fragmented landscape.

“Collaboration is going to be embedded in the future of software,” said Reed.



https://ift.tt/eA8V8J Figma gets $40 million Series C to put design tools in the cloud https://tcrn.ch/2DHAObD

Biotech AI startup Sight Diagnostics gets $27.8M to speed up blood tests

Sight Diagnostics, an Israeli medical devices startup that’s using AI technology to speed up blood testing, has closed a  $27.8 million Series C funding round.

The company has built a desktop machine, called OLO, that analyzes cartridges manually loaded with drops of the patient’s blood — performing blood counts in situ.

The new funding is led by VC firm Longliv Ventures, also based in Israel, and a member of the multinational conglomerate CK Hutchison Group.

Sight Diagnostics said it was after strategic investment for the Series C — specifically investors that could contribute to its technological and commercial expansion. And on that front CK Hutchison Group’s portfolio includes more than 14,500 health and beauty stores across Europe and Asia, providing a clear go-to-market route for the company’s OLO blood testing device.

Other strategic investors in the round include Jack Nicklaus II, a healthcare philanthropist and board member of the Nicklaus Children’s Health Care Foundation; Steven Esrick, a healthcare impact investor; and a “major medical equipment manufacturer” — which they’re not naming.

Sight Diagnostics also notes that it’s seeking additional strategic partners who can help it get its device to “major markets throughout the world”.

Commenting in a statement, Yossi Pollak, co-founder and CEO, said: “We sought out groups and individuals who genuinely believe in our mission to improve health for everyone with next-generation diagnostics, and most importantly, who can add significant value beyond financial support. We are already seeing positive traction across Europe and seeking additional strategic partners who can help us deploy OLO to major markets throughout the world.”

The company says it expects that customers across “multiple countries in Europe” will have deployed OLO in actual use this year.

Existing investors OurCrowd, Go Capital, and New Alliance Capital also participated in the Series C. The medtech startup, which was founded back in 2011, has raised more than $50M to date, only disclosing its Series A and B raises last year.

The new funding will be used to further efforts to sell what it bills as its “lab-grade” point-of-care blood diagnostics system, OLO, around the world. Although its initial go-to-market push has focused on Europe — where it has obtained CE Mark registration for OLO (necessary for commercial sale within certain European countries) following a 287-person clinical trial, and went on to launch the device last summer. It’s since signed a distribution agreement for OLO in Italy.

“We have pursued several pilots with potential customers in Europe, specifically in the UK and Italy,” co-founder Danny Levner tells TechCrunch. “In Europe, it is typical for market adoption to begin with pilot studies: Small clinical evaluations that each major customers run at their own facilities, under real-world conditions. This allows users to experience the specific benefits of the technology in their own context. In typical progress, pilot studies are then followed by modest initial orders, and then by broad deployment.”

The funding will also support ongoing regulatory efforts in the U.S., where it’s been conducting a series of trials as part of FDA testing in the hopes of gaining regulatory clearance for OLO. Levner tells us it has now submitted data to the regulator and is waiting for it to be reviewed.

“In December 2018, we completed US clinical trials at three US clinical sites and we are submitting them later this month to the FDA. We are seeking 510(k) FDA clearance for use in US CLIA compliant laboratories, to be followed by a CLIA waiver application that will allow for use at any doctor’s office. We are very pleased with the results of our US trial and we hope to obtain the FDA’s 510(k) clearance within a year’s time,” he says.

“With the current funding, we’re focusing on commercialization in the European market, starting in the UK, Italy and the Nordics,” he adds. “In the US, we’re working to identify new opportunities in oncology and pediatrics.”

Funds will also go on R&D to expand the menu of diagnostic tests the company is able to offer via OLO.

The startup previously told us it envisages developing the device into a platform capable of running a portfolio of blood tests, saying each additional test would be added individually and only after “independent clinical validation”.

The initial test OLO offers is a complete blood count (CBC), with Sight Diagnostics applying machine learning and computer vision technology to digitize and analyze a high resolution photograph of a finger prick’s worth of the patient’s blood on device.

The idea is to offer an alternative to having venous blood drawn and sent away to a lab for analysis — with an OLO-based CBC billed as taking “minutes” to perform, with the startup also claiming it’s simple enough for non-professional to carry out, whereas it says a lab-based blood count can take several days to process and return a result.

On the R&D front, Levner says it sees “enormous potential” for OLO to be used to diagnose blood diseases such as leukemia and sickle cell anemia.

“Also, given the small amount of blood required and the minimally-invasive nature of the test when using finger-prick blood samples, there is an opportunity to use OLO in neonatal screening,” he says. “Accordingly, one of the most important immediate next steps is to tailor the test procedures and algorithms for neonate screening.”

Levner also told us that some of its pilot studies have looked at evaluating “improvements in operator and patient satisfaction”. “Clearly standing out in these studies is the preference for finger-prick-based testing, which OLO provides,” he claims. 

One key point to note: Sight Diagnostics has still yet to publish peer reviewed results of its clinical trials for OLO. Last July it told us it has a publication pending in a peer-reviewed journal.

“With regards to the peer-reviewed publication, we’ve decided to combine the results from the Israel clinical trials with those that we just completed in the US for a more robust publication,” the company says now. “We expect to focus on that publication after we receive FDA approval in the US.”



https://tcrn.ch/2STXbE8 Biotech AI startup Sight Diagnostics gets $27.8M to speed up blood tests https://tcrn.ch/2X5dVYf

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