Shopify launches Shop, a new mobile shopping app

{rss:content:encoded} Shopify launches Shop, a new mobile shopping app https://ift.tt/35bmHbL https://ift.tt/3eZSYan April 28, 2020 at 12:00PM

While Shopify is best-known for powering the online stores of more than 1 million businesses, the company is launching a consumer shopping app of its own today, simply called Shop.

The app is actually an update and rebrand of Arrive, an app for tracking packages for Shopify merchants and other retailers, which the company says has been used by 16 million consumers already.

Shop includes those same package tracking capabilities, but it also allows consumers to browse a feed of recommended products, learn more about each brand and make purchases using the one-click Shop Pay checkout process.

Carl Rivera, the general manager of Shop, told me that the app is a response to a broader shift — not just from desktop to mobile commerce, but also from mobile web to native mobile apps. The challenge, he suggested, is that most of us only download and shop from a handful of native apps, so it can be hard for an independent brand to launch an app of their own.

“What we want to do with Shop is give them a place to call their own,” Rivera said.

Image Credits: Shop

Shop provides customized product recommendations to each shopper, but Rivera noted that these recommendations all come from brands that you’ve already shown an interested in, either by purchasing a product from their Shopify store or by following their profiles in the app.

He contrasted this with product recommendations on other online stores, which he said offer “a feed of products from brands you don’t know, brands you don’t care about — most these platforms are driven by advertising.” Shop, Rivera said, will not include any ads, and it will be available for free to both shoppers and brands.

He added that he’s been working on Shop “basically since I came on-board” in late 2018. However, the current COVID-19 pandemic and resulting economic crisis prompted his team (and Shopify at large) to ask “What are the things we can today to best support merchants?”

One of their answers: a feature that allows shoppers to browse local merchants, see which ones currently support delivery and in-store purchase, then make purchases to support them.

Shopify expands into email marketing

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Qoala raises $13.5M to grow its insurance platform in Indonesia

Online lending firms might be beginning to feel the heat of the coronavirus pandemic in Southeast Asia, but investors’ faith in digital insurance startups remains unflinching in the region.

Jakarta-based Qoala has raised $13.5 million in its Series A financing round, the one-year-old startup said Tuesday. Centauri Fund, a joint venture between funds from South Korea’s Kookmin Bank and Telkom Indonesia, led the round.

Sequoia India, Flourish Ventures, Kookmin Bank Investments, Mirae Asset Venture Investment, Mirae Asset Sekuritas and existing investors MassMutual Ventures Southeast Asia, MDI Ventures, SeedPlus and Bank Central Asia’s Central Capital Ventura participated in the round, which pushes the startup’s to-date raise to $15 million.

Qoala works with leading insurers including AXA Mandiri, Tokio Marine, Great Eastern to offer customers cover against phone display damage, e-commerce logistics and hotel-quality checks. The startup says it offers personalized products to customers and eases the burden while making claims by allowing them to upload pictures.

The startup maintains partnership with several e-commerce firms including Grabkios, JD.ID, Shopee and Tokopedia and hotel and travel booking firms PegiPegi and RedBus.

It uses machine learning to detect fraud claims. It’s a win-win scenario for customers, who can make claims easily and have more affordable and sachet insurance products to buy, and for insurers, who can reach more customers.

Qoala processes more than 2 million policies each month, up from 7,000 in March last year. The startup said it is working on insurance products to cover health and peer-to-peer categories. The startup, which employs about 150 people currently, plans to double its headcount in a year.

“As a relatively new entrant in the space we are delighted to partner with leading global investors whose tremendous thought leadership as well as operational experience will allow us to maintain our innovative edge. This truly demonstrates the ecosystem’s belief in what Qoala is trying to achieve — humanizing insurance and making it accessible and affordable to all,” said Harshet Lunani, founder and chief executive of Qoala, in a statement.

Kenneth Li, managing partner at Centauri Fund, said Qoala’s multi-channel approach has the potential to unlock Indonesia’s untapped insurance industry.

“Our thesis identified that Indonesia has a considerably low gross written premium (GWP) to GDP ratio in comparison to other emerging countries, coupled with the large growing middle class in need of more security in their financial planning which allows immense potential for the insurance sector to take off in Indonesia through innovative propositions,” he added.

According to one estimate (PDF), Southeast Asia’s digital insurance market is currently valued at $2 billion and is expected to grow to $8 billion by 2025. Last week, Singapore-based Igloo extended its Series A financing round to add $8.2 million to it.

https://ift.tt/eA8V8J Qoala raises $13.5M to grow its insurance platform in Indonesia https://ift.tt/3aMYDwR

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A full-time VC & part-time ER doctor shares his thoughts on COVID-19

An emergency room physician for the past 12 years, Dr. Robert Mittendorff joined Norwest Venture Partners eight years ago as a healthcare investor; the firm invests in a number of healthcare startups, including Talkspace, which raised a $50 million Series D last year, and TigerConnect.

As the COVID-19 pandemic spreads, Mittendorff is spending his weekdays with portfolio companies and weekends working with Kaiser Permanente in San Francisco. While he notes that his medical colleagues are “bearing the brunt” of the pandemic by working full time, we wanted to hear from someone who has a foot in both the investing and the healthcare world right now.

In this interview, he discusses what he’s learned from both roles, how it has influenced his healthcare investments, and offers his predictions regarding which companies will fare the best in the future.

This interview has been edited for length and clarity.

TechCrunch: How did you get to where you are today?

Dr. Robert Mittendorff: So, my journey to being a venture capitalist at Norwest and investing in healthcare companies as well as an emergency physician was really a parallel set of paths that overlapped and that cross every once in a while and now usually on a daily basis.

I started off life as a biomedical engineer really focused on wanting to be on the side of innovation and on the development of technologies to help human health. I knew early on that I wanted to be on the business side [of that], but it was important for me to understand and really be deeply in touch with what it was like to be a provider.

The journey started out going to engineering school, medical school, and then business school in the middle of medical school. I trained at Stanford, which really exposed me to county hospitals, which are probably going to be the more challenging situations as the weeks go on here, and then to Kaiser Permanente. And then, of course, Stanford, I was exposed to San Francisco General and then the Santa Clara Valley Hospital. I always practice part-time following up so it’s been 12 years as an attending, practicing part-time as an emergency physician.

In the venture space I saw an opportunity to really help select entrepreneurs and markets to grow them to a higher impact state.

https://ift.tt/eA8V8J A full-time VC & part-time ER doctor shares his thoughts on COVID-19 https://ift.tt/2xT7AYp

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Oriente raises $50 million to continue building its infrastructure for digital financial services

Oriente, a Hong Kong-based startup that develops tech infrastructure for digital credit and other online financial services, has raised $50 million for its ongoing Series B round. The funding was led by Peter Lee, co-chairman of Henderson Land, one of Hong Kong’s largest property developers, with participation from investors including website development platform Wix.com.

Launched in 2017 by Geoff Prentice (one of Skype’s co-founders), Hubert Tai and Lawrence Chu, Oriente focuses on markets that are underserved by traditional financial institutions. The new funding will be used for growth in Oriente’s existing markets, the Philippines and Indonesia, and expansion into new countries, including Vietnam.

It will also be used to continue building Oriente’s technology, which uses big data analytics to help merchants increase sales conversions and lower risk. Oriente has now raised more than $160 million in equity and debt, including a $105 million round in November 2018.

While many large tech companies, including Grab, Google, Facebook, Amazon, Uber, Apple and Samsung, are looking at digital payments and other online financial services, they need the tech infrastructure to do so, and partners that can also help them handle regulations in different markets.

Oriente doesn’t compete with payment providers. Instead, it is “innovating credit as a service,” Prentice told TechCrunch, by building technology that allows offline and online merchants to launch digital credit solutions quickly.

Oriente “is the only company that is focusing on building an end-to-end digital financial services infrastructure,” he added, with services created for consumers, online and offline merchants, and enterprise clients.

For consumers, the startup currently offers two apps, Cashalo in the Philippines and Finmas in Indonesia, which it says has a combined 5 million users and more than 1,000 merchants. Services include cash loans, online credit and working capital for small to medium-sized enterprises.

Oriente says that in 2019, it saw a 700% year-over-year growth in transactions and served more than 4 million new users, while merchant partners had a more than 20% increase in sales volume.

Over the next few months, Oriente plans to expand its Pay Later digital credit feature and launch new growth capital solutions for small businesses that need financing. Oriente also has several partnerships in the works to expand its enterprise solutions for larger businesses and corporations.

In Vietnam, Oriente is currently beta testing a consumer platform similar to Cashalo and Finmas. It will offer online credit and financing, as well as other services in partnership with local companies.

Oriente has also started focusing on how to serve businesses during the COVID-19 pandemic, since many merchants are coping with revenue declines, loss of users and cash flow issues.

“Over the past few weeks, we’ve reprioritized our corporate strategy to focus on the top opportunities within each market. We have also taken various steps to rebuild our organizations for optimized operational and financial efficiency in line with current and forecasted market conditions and our more focused strategy,” Prentice said.

“Our aim is not only to mitigate anticipated headwinds on liquidity but to demonstrate that our business has the potential to overcome and outperform the market in a recession—unlocking value for all stakeholders for years to come.”

https://ift.tt/eA8V8J Oriente raises $50 million to continue building its infrastructure for digital financial services https://ift.tt/2KB7tn1

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OMERS Ventures announces a new $750M fund for investing in North America, Europe

OMERS Ventures, the venture capital arm of the Ontario Municipal Employees Retirement System (OMERS), has put together a new, $750 million fund to invest in both Europe and North America.

The capital vehicle is larger than the group’s preceding European and North American funds combined. In 2019 OMERS Ventures announced a €300 million fund Europe-focused fund (TechCrunch covered its launch here), and the venture group’s last North American fund was worth $300 million back in 2017. The new $750 million is a hybrid, acting as both the firm’s Europe-focused capital pool and the source of funds from which it can invest in North American startups.

According to Damien Steel, a managing partner at OMERS Ventures, the firm invested about CAD$100 million from the original Europe fund, with the rest now reserved for follow-on investments; Steel told TechCrunch that he doesn’t anticipate that the full amount will be used for that purpose.

But the remaining differential is somewhat immaterial as the venture collective has a new, three-quarters-of-a-billion-dollars capital pool to put to work. According to Steel, OMERS Ventures has “consolidated [its] efforts and made a new transatlantic fund.” The firm’s hope is that the shared capital will lead to a more cohesive investing group than having two funds for different teams engendered.

OMERS Ventures expects to deploy around $200 million a year across Europe and North America, a pace that Steel says will be similar to preceding efforts.

The COVID era

I wanted to chase down what Steel and company are doing that’s different in the new era. Something new is a slightly different mindset concerning runway. Instead of the usual 18-month expectation between rounds, Steel told TechCrunch that expectations and planning are lengthening to 24 months or longer between capital events — enough cash to get through whatever the current downturn winds up becoming.

Happily for Steel and his firm, some OMERS portfolio companies are well capitalized, with the venture capitalist telling TechCrunch during a call that “that the companies [his firm has] invested in a have really benefited from the exceptional amount of liquidity that’s been available in the market over the last two years,” with some of their startups winding up “sitting on quite a lot of cash because arguably they raised too much in 2019 and 2018.”

The capital was cheap, Steel notes, so lots of companies took what was on offer. The result? Many startups heading into 2020’s recession have well-stocked bank accounts. Not all, of course, raised right before things got worse. The firms that didn’t may struggle.

Given that the new OMERS Ventures fund intends to invest both in North America and Europe, I wanted to know what’s different between the two regions today as the COVID-19 pandemic continues to drive economic havoc. Notable to me was the fact that Europe is doing as well as it is, with Steel noting that “the funding environment has remained more active in Europe than it has in the US.”

He’s seeing “healthy” activity in Europe around the Series A and B stages. It’s perhaps unsurprising, then, that Steel told TechCrunch that the startup valuation pressure it’s easy to find in the North America venture scene isn’t quite as tough in Europe. Steel noted that 20% and 30% drops in valuation multiples in American and Canada from prior levels are common, while in Europe “it’s definitely less than that.”

For founders that there’s new funds of scale coming together at all is likely welcome. OMERS Ventures expects to have closed eight deals from its new fund “within a month,” a quick pace given its age.

Disclosure: OMERS Ventures invested in Crunchbase, my former employer. 

https://ift.tt/eA8V8J OMERS Ventures announces a new $750M fund for investing in North America, Europe https://ift.tt/2Y9FXEZ

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Indie.vc founder Bryce Roberts: Profitability is ‘more achievable than a Series A round’

Despite all evidence to the contrary, there’s more to building a startup than raising venture capital.

Founders are finding success without overly relying on VC dollars; some are even sharing profits with their respective employees and customers without the help of traditional funding and Silicon Valley power dynamics.

As some investors slow down their funding pace, it has become clear that profitability trumps funding and venture capital can only take a startup so far when the economy tanks and outside cash streams dry up.

In the Indie.vc portfolio, profitability is its driving force. In fact, its main criterion for funding is that a startup must be on a clear path to profitability with durable fundamentals like high gross margins or the ability to start charging for a product right away, as opposed to companies that need a significant amount of upfront investment for research and development.

Profitability, Indie.vc founder Bryce Roberts tells TechCrunch, needs to be a habit, and founders need to recognize that it’s not a switch they can just turn on. Startups looking to prioritize profitability need to start out as revenue-driven businesses that replace funding milestones with profitability goals.

“Genuinely, it’s not rocket science,” he says. “Profitability isn’t this crazy, elusive thing. It’s literally more achievable than a Series A round. It’s way more achievable than a Series B round. If you look at the kind of fall-off between those rounds, most entrepreneurs would be better off finding their path to profitability and scale.”

Indie.vc, which recently announced its latest batch of investments, advises founders to make sure they have what they need to be stable and then to create and measure value, Roberts says. That value, which differs depending on the company, must be quantifiable as some metric or revenue.

To do that, Roberts says founders should adopt a mindset where they’re focused on creating revenue opportunities, rather than cost savings. Indie.vc’s model also does not prioritize hiring ahead of growth, a strategy that seems to be working for its portfolio during the pandemic.

https://ift.tt/eA8V8J Indie.vc founder Bryce Roberts: Profitability is ‘more achievable than a Series A round’ https://ift.tt/2yO8oxP

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Understanding Duolingo’s quiet $10M raise

Earlier this month, edtech unicorn Duolingo raised $10 million in new venture capital from General Atlantic, per an SEC filing. With the raise, the online language learning platform accepted its first outside investor in almost three years. General Atlantic will take a board seat at the company, per Duolingo.

The company, which was last valued at $1.5 billion, says the round has increased its valuation, but it declined to share by how much.

General Atlantic has invested in a number of edtech companies around the world, like OpenClassrooms, Ruangguru and Unacademy. Duolingo said that General Atlantic’s global platform and experience with online education in Asia would help guide its own growth, specifically pointing to its plans to scale up the Duolingo English test.

The e-learning company last raised $30 million in December at that $1.5 billion valuation. To raise a smaller sum a few months later is uncommon. Historically, that type of raise could happen for a number of reasons: a company is accepting a later investment as part of the same funding round, it needs more cash and this is an easy way to raise it or the company tried to raise a new large round and failed to secure past $10 million.

So where does the language learning unicorn fit?

In Duolingo’s case, it said the $10 million was raised because it wanted to bring a new investor on, but didn’t need a massive amount of primary capital. Duolingo says it is cash-flow positive.

In the past few weeks, Duolingo launched a new app to help children read and write, passed one million paying subscribers for Duolingo Plus and disclosed that its annual bookings run rate is $140 million. The company also recently hired its first CFO and general counsel.

“Because our business has been growing very fast and we have more than enough capital, there was limited need for us to raise more primary capital. However, over the last year, we developed a relationship with General Atlantic,” the company said in a statement to TechCrunch.

Tanzeen Syed, a managing director for General Atlantic, said that Duolingo is a “market leader in the language learning space. Syed also said Duolingo has a “profitable, efficient business model while maintaining hyper-growth characteristics.”

Another key factoid here is that along with the $10 million, there was a larger secondary transaction, which occurs when an existing stockholder sells their stock for cash or to a third party, or to the company itself while the company is still private.

In this case, an existing investor in Duolingo sold a small portion of their existing stake to allow General Atlantic to have a bigger stake in the company.

The company declined to share the size of the secondary market transaction.

In light of this new information, Duolingo’s expansion to Asia, which has a robust market of English learners, welcomed one investor and lessened the stake of another.

Based on what we know, the transaction signals that a preexisting investor in Duolingo was looking for liquidity at a time where the public markets are tightening and private markets are pausing. And at a time when companies are staying private longer than ever before, secondary transactions are hardly rare.

Sometimes, however, secondary transactions signal a lack of faith from a preexisting investor in the company’s current trajectory.

Duolingo is full steam ahead on its goal to expand across the world — and now has new cash in the bank, and a new seat on the board, to prove it.

https://ift.tt/eA8V8J Understanding Duolingo’s quiet $10M raise https://ift.tt/3cTLe7W

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Josh Constine leaves TechCrunch for VC fund SignalFire

How do you leave the place that made you? You figure out what it made you for. TechCrunch made me a part of the startup ecosystem I love. Now it’s time to put that love into action to help a new generation of entrepreneurs build their dreams and tell their stories.

So it’s “TC to VC” for me. After 8.5 years at TechCrunch and 10 in tech journalism, I’m leaving today to join the venture team at VC fund SignalFire. I’m going to be a principal investor and their head of content.

I’ll be seeking out inspiring new companies, doing deals (when I’m eventually up to speed) and providing pitch workshops based on countless interviews for TechCrunch. Thankfully, I’ll also still get to write. We’re going to find out what founders really want to learn and produce that content to help them form, evolve and grow their companies. I’m doing my signature bounce & smile with excitement.

Where to follow my writing

You’ll still be able to follow my writing as well as my journey into VC on my newsletter Moving Product at constine.substack.com as well as on Twitter: @JoshConstine. No way I could just suddenly shut up about startups! If you’re building something, you can always reach me at joshsc [at] gmail.com

On the newsletter you can read a deeper explanation for why I picked SignalFire. I also just published the first real issue of Moving Product on how quarantine is “loaning” concurrent users to startups that will help the new wave of synchronous apps snowball to sustainability, plus commentary from top product thinkers on Facebook’s new Rooms.

Why I chose SignalFire?

I was drawn to SignalFire because it’s built like the startups I love writing about: to solve a need. Entrepreneurs need tactical advantages in areas like recruiting, where they spend most of their time, and expert advice on specific problems they’re facing.

SignalFire CEO and founder Chris Farmer

That’s why SignalFire spent six years in stealth building its recruitment prediction and market data analysis engine called Beacon. It can spot deal opportunities for SignalFire’s new $200 million seed and $300 million breakout funds while helping the portfolio hire smarter. Then SignalFire assembled more than 80 top experts, like Instagram’s founders, for its invested advisor network. Traditional funds need partners to exhaust their social capital asking for favors from friends to help their portfolio. SignalFire’s model sees its advisors share in the returns of the fund, so they’re sustainably motivated to assist.

SignalFire’s founder and CEO Chris Farmer was also willing to invest in me, figuratively. I’ve written about thousands of startups but I’ve never funded one. He and his team have offered to mentor me as I learn the art and science of investing. They also accept me for my opinionated, outspoken self. Instead of constricting my voice, the plan is to harness it to highlight new ideas and proven methods for building companies. I wrote this post on my newsletter with a deeper look at why I picked SignalFire and how its modernized approach to venture works.

What makes TechCrunch different

Of the 3,600 articles I’ve written for TechCrunch, this was the hardest.

TechCrunch gave me the platform to make an impact and the freedom to say what I believe. That’s a rare opportunity in journalism, but especially important for covering startups. TechCrunch writes about things that haven’t happened yet. There are often no objective facts by which to judge an early-stage company. Whether you decide to cover them or not, and the tone of your analysis, depends on having conviction about whether the world needs something or not, if the product is built right and if the team has what it takes.

If you rely on others’ signals about what matters, whether in the form of traction or investment, you’ll be late to the story. That means editors have to trust their writers’ intuition. At TechCrunch, that trust never wavered.

SAN FRANCISCO, CALIFORNIA – OCTOBER 04: (L-R) Snap Inc. Co-founder & CEO Evan Spiegel and TechCrunch editor-at-large Josh Constine speak onstage during TechCrunch Disrupt San Francisco 2019. (Photo by Steve Jennings/Getty Images for TechCrunch)

Eric Eldon, Alexia Tsotsis and Matthew Panzarino put their absolute faith in our team. That gave me a chance to write the first-ever coverage of startups like Robinhood before its seed round, and SnappyCam before it was acquired by Apple and turned into iPhone burst fire. My editors also never shied away from confrontations with the tech giants, like my investigation into Facebook paying teens for their data that caused it to shut down its Onavo tool, or my exposé on Bing suggesting child abuse imagery in search results that led it to overhaul its systems.

I met my wife Andee at a TechCrunch event. [Image Credit: Max Morse]

I’ll always be indebted to Eric Eldon, who gave a freshly graduated cybersociologist with no experience his first shot at blogging back at Inside Facebook. Editors like Alexia Tsotsis and Matthew Panzarino helped me develop a more critical voice without sterilizing my personality. And all my fellow writers over the years, including Zack Whittaker and Sarah Perez, pushed me to hustle, whether that meant pontificating on new product launches or exposing industry abuse. If my departure from journalism elicits a sigh of relief from the companies in my cross-hairs, I know I did my job. The TechCrunch business and events team have turned Disrupt into the tech industry’s reunion. I appreciate them giving me the chance to learn public speaking, from the most heartfelt moments to the cringiest. And really, I owe them the rest of my life, too, since I met my wife Andee at a Disrupt after-party.

Treating writing like a sport to be won kept me cranking all these years, and I’m grateful for Techmeme offering a scoreboard for extra motivation. I’ll unhumbly admit it’s nice to hang up my jersey while ranked No. 1. My gratitude to Jane Manchun Wong for furnishing so many scoops over the years, and to all my other sources. It’s been fun competing and collaborating with my favorite other reporters, and I know Taylor Lorenz, Casey Newton and Mike Isaac will keep a close eye on tech’s trends and travesties.

But most of all, I want to extend an enormous thank you to…you. To everyone who has read or shared my articles over the years. I woke up each day with a sense of duty to you, and felt proud to say “I fight for the user” like Tron. What makes this industry special is how the community refuses to treat it as zero-sum. We grow the pie together, and everyone knows their competitor today could be their future co-founder. That makes us willing to share and learn together. I believe no recession, correction or bubble-burst will change that. 

BERLIN, GERMANY – DECEMBER 12: Group Photo on stage at TechCrunch Disrupt Berlin 2019 at Arena Berlin on December 12, 2019 in Berlin, Germany. (Photo by Noam Galai/Getty Images for TechCrunch)

So I’ll leave you with a final thought that’s made my life so fulfilling: If you have the privilege or create the opportunity, turn your passion into your profession.

Specialize. Learn. Then make what you want. If you can find some niche you’re endlessly interested in, that’s growing in importance, and at least someone somewhere earns money from, you’ll become essential. Not necessarily today. But that’s the beauty of writing — it teaches you while proving to others what you’ve been taught. No matter what it is, blog about it once a week. In time you’ll become an expert, and be recognized as one. Then you’ll have the power to adapt to the future, however feels most graceful.

Personal news: It's TC to VC for me! I'm leaving TechCrunch to join SignalFire as a principal investor & head of content. I'm also launching my newsletter where I'm writing now: https://t.co/F7gvssC4Ky A "toast", to the future! pic.twitter.com/XRhDxdS5NF

— joshconstine (@JoshConstine) April 27, 2020

Keep up with my writing on my newsletter at constine.substack.com, stay in touch on Twitter, and reach out at joshsc [at] gmail.com

from Social – TechCrunch https://ift.tt/2zvdQG0 Josh Constine leaves TechCrunch for VC fund SignalFire Josh Constine https://ift.tt/3eTPead
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$4 million richer, Walrus.ai has a pitch for companies looking for QA-testing tools

The co-founders of Walrus.ai, a new software company that raised $4 million in a new round of financing from Homebrew, Felicis Ventures and Leadout Capital, started their business with one problem.

Jake Marsh, Ogden Nathan and Scott White had a problem. They left Wealthfront to launch a new service that would solve what they saw as a key problem with new business workflows. Their idea was to integrate the disparate software silos that different parts of their former business used to complete assignments.

The company was going to be called Monolist and it was going to aggregate tasks across every tool into a single actionable list. Unfortunately it wasn’t working.

They had founded the business back in 2018 and had gone on to raise seed capital from Homebrew and Leadout Capital, but they were hitting walls in their product development.

“Reliability was a huge problem for us,” said company co-founder, Scott White. “There were various frameworks that would let you test your automation so that before you launch your software, you catch bugs… There were some code languages that exist that can help you do this, but they didn’t work for us at all.”

The browser testing frameworks that White and his co-founders were using hadn’t kept up with the evolution of the software development industry and couldn’t adequately recreate the ways that actual users would interact with the software. “The stuff is super brittle,” said White.

Typically, according to White, these assurance tests break and then force engineers and developers to then investigate why the tests broke, to see if they can figure out what went wrong with the test even before they move on to any quality assurance of the actual changes made to a product.

“They weren’t designed to handle that much complexity,” White said of the existing testing tools.

So White and his co-founders thought about how they’d solve what they see as one of the critical problems that engineers face.

“The problem for engineers right now is that writing tests for your applications is hard because you have to write code and the frameworks are very inflexible and flaky,” White said. “Engineers spend tons of time running tests and if those tests fail then your code would not get shipped so you have to debut all those tests.”

Enter the new venture from White and his co-founders.

That would be Walrus.ai. “We’re outsourced engineering through an API,” said White. “We understand how to do testing and we can do it way better and more quickly.”

Using simple text descriptions of a planned user interface, Walrus.ai’s co-founder said his company can run diagnostics on just how effectively the code manages to execute its planned commands.

Given its status as a relatively new kind on the testing block, Walrus.ai only has tens of paying customers right now as it spins out from Monolist.

The company sees its competition coming primarily from outsourced quality assurance companies like Rainforest QA; test recorders like Mabel and Testim; and testing frameworks like Selenium and Cypress, but believes that its ability to take natural language prompts and run QA tests will be enough of a differentiator to capture a significant share of the market.

https://ift.tt/eA8V8J $4 million richer, Walrus.ai has a pitch for companies looking for QA-testing tools https://ift.tt/3eXi7m3

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Smart ring maker Motiv acquired by ‘digital identity’ company

We weren’t alone in being impressed by Motiv. The startup helped flip the script on wearables by essentially cramming a fitness tracker’s worth of technology into a ring. This week, San Francisco ‘digital identity’ startup Proxy announced that it’s acquiring the company.

The company’s site is littered in buzzwords, but Proxy specializes in digital key cards — essentially providing a way to use digital devices like smartphones to access businesses and homes. An odd fit for a company that makes exercise rings, until you look at what Motiv’s been up to in recent years.

Among the additions to the tiny hardware platform are NFC payments, lost phone tracking and two-factor device authentication through gait monitoring. Whether or not Proxy ultimately has interesting in manufacturing and selling a fitness ring, there’s plenty of underlying technology here that would be of interesting to a digital identity company.

Motiv crams a fitness band’s worth of functionality into a ring

“The demand for our technology is only going to increase and we saw a clear path forward in the importance of validating one’s identity in both the physical and digital worlds,” Motiv said in a blog post. “Keys, access cards and passwords are rapidly being replaced with a biometric identity which provides greatly improved security and convenience.”

While the app will continue to be available for download (no word on how long it will continue to offer support), the deal mark the end of Motiv’s online sales, while partner retailers will burn through the rest of their stock.

Proxy, on the other hand, says it’s committed to the ring as the future of the wearables category. “With this acquisition, Proxy plans to bring digital identity signals to smart rings for the first time and revolutionize the way people use technology to interact with the world around them,” the company writes. “We believe it’s possible to ignite a paradigm shift in how people use wearables to interface with the physical world, so they can do and experience things they never have before.”

While compelling, the fitness ring hasn’t exactly taken the wearable category by storm in the past three years, as the space continues to be almost exclusively dominated by smartwatches and headphones. For those who still believe in the form factor, Motiv has had some competition recently, from companies like Oura, a ring largely built around sleep tracking. 

https://ift.tt/eA8V8J Smart ring maker Motiv acquired by ‘digital identity’ company https://ift.tt/2KBta6b

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Factorial raises $16M to take on the HR world with a platform for SMBs

A startup that’s hoping to be a contender in the very large and fragmented market of human resources software has captured the eye of a big investor out of the US and become its first investment in Spain.

Barcelona-based Factorial, which is building an all-in-one HR automation platform aimed at small and medium businesses that manages payroll, employee onboarding, time off and other human resource functions, has raised €15 ($16 million) in a Series A round of funding led by CRV, with participation also from existing investors Creandum, Point Nine and K Fund.

The money comes on the heels of Factorial — which has customers in 40 countries — seeing eightfold growth in revenues in 2019, with more than 60,000 customers now using its tools.

Jordi Romero, the CEO who co-founded the company with Pau Ramon (CTO) and Bernat Farrero (head of corporate), said in an interview that the investment will be used both to expand to new markets and add more customers, as well as to double down on tech development to bring on more features. These will include RPA integrations to further automate services, and to move into more back-office product areas such as handling expenses,

Factorial has now raised $18 million and is not disclosing its valuation, he added.

The funding is notable on a couple of levels that speak not just to the wider investing climate but also to the specific area of human resources.

In addition to being CRV’s first deal in Spain, the investment is being made at a time when the whole VC model is under a lot of pressure because of the global coronavirus pandemic — not least in Spain, which has a decent, fledgling technology scene but has been one of the hardest-hit countries in the world when it comes to COVID-19.

“It made the closing of the funding very, very stressful,” Romero said from Barcelona last week (via video conference). “We had a gentleman’s agreement [so to speak] before the virus broke out, but the money was still to be wired. Seeing the world collapse around you, with some accounts closing, and with the bigger business world in a very fragile state, was very nerve wracking.”

Ironically, it’s that fragile state that proved to be a saviour of sorts for Factorial.

“We target HR leaders and they are currently very distracted with furloughs and layoffs right now, so we turned around and focused on how we could provide the best value to them,” Romero said.

The company made its product free to use until lockdowns are eased up, and Factorial has found a new interest from businesses that had never used cloud-based services before but needed to get something quickly up and running to use while working from home. He noted that among new companies signing up to Factorial, most either previously kept all their records in local files or at best a “Dropbox folder, but nothing else.”

The company also put in place more materials and other tools specifically to address the most pressing needs those HR people might have right now, such as guidance on how to implement furloughs and layoffs, best practices for communication policies and more. “We had to get creative,” Romero said.

At $16 million, this is at the larger end of Series A rounds as of January 2020, and while it’s definitely not as big as some of the outsized deals we’ve seen out of the US, it happens to be the biggest funding round so far this year in Spain.

Its rise feels unlikely for another reason, too: it comes at a time when we already have dozens (maybe even hundreds) of human resources software businesses, with many an established name — they include PeopleHR, Workday, Infor, ADP, Zenefits, Gusto, IBM, Oracle, SAP, Rippling, and many others — in a market that analysts project will be worth $38.17 billion by 2027 growing at a CAGR of over 11%.

But as is often the case in tech, status quo breeds disruption, and that’s the case here. Factorial’s approach has been to build HR tools specifically for people who are not HR professionals per se: companies that are small enough not to have specialists, or if they do, they share a lot of the tasks and work with other managers who are not in HR first and foremost.

It’s a formula that Romero said could potentially see the company taking on bigger customers, but for now, investors like it for having built a platform approach for the huge but often under-served SME market.

“Factorial was built for the users, designed for the modern web and workplace,” said Reid Christian, General Partner at CRV, in a statement. “Historically the HR software market has been one of the most lucrative categories for enterprise tech companies, and today, the HR stack looks much different. As we enter the third generation of cloud HR products, with countless point solutions, there’s a strong need for an underlying platform to integrate work across these.”

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Seed investors take long view on promising enterprise startups

The job of an early-stage startup founder is challenging in good times, never mind a crash like the one we are experiencing today.

While most expect private investing to slow down, it’s clear that some investments are still happening in spite of the pandemic, if the stories we are writing on TechCrunch are any indication.

But the downturn is bound to have an impact on the types of deals that receive funding; any startup that offers a good or service requiring human interaction or installation will face an uphill battle, at least in the short term. That said, enterprise SaaS vendors, especially ones that solve hard problems, help with work-from-home or collaboration, or better yet, help increase efficiency and save money, are still very much in demand.

Nobody can do anything about the CIO who is hunkering down until things improve — but that’s not everyone. Companies might be thinking twice about where they spend money, but some are still helping drive the net-new, post-COVID-19 investments happening from seed to late stage across many sectors.

We looked at data and spoke to a couple of enterprise-focused, NYC-based seed investors to better understand their investing cadence. Nobody painted a rosy picture of today’s climate, but seed investors were never about immediate gratification, especially where enterprise startups are concerned. That means, if a seed-stage investor believes in the founders and their vision and the company can ride out today’s economic upset, there’s still money in the till — at least for now.

Seed investment generally in decline

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