Month: May 2018

Daily deals and local commerce site Groupon has announced an acquisition to ramp up its operations in discount offers and specifically those tied to loyalty programs. The company has acquired Bristol, UK-based Cloud Savings Company, the owner of Vouchercloud and Giftcloud, in a deal that Groupon said has an enterprise value of $65 million.

The deal will give Groupon a boost in two areas: via Giftcloud, building out loyalty programs for brands and retailers who are already using the Groupon platform; and via Vouchercloud, tapping into an extensive network of discount codes — and people who hunt for and use these — to complement and amplify the direct offers that Groupon already offers on its platform today.

Vouchercloud is active in 11 countries and Groupon says its biggest market is the UK, where it has over 5 million subscribers and 12,000 top retailers and brands using its platform. The mobile app is also popular and has clocked up 10 million downloads globally.

Cloud Savings Company was already profitable.

“We’re pleased to add two great, profitable brands and very talented teams to the Groupon family,” said Groupon CEO Rich Williams in a statement. “In Vouchercloud, we’re acquiring one of the most innovative brands in the online discount codes space, which we believe will accelerate our own efforts — particularly in International — and broaden our marketplace for consumers. In Giftcloud, we see interesting long-term potential in creating attractive customer loyalty programs with some of the biggest names in retail, as well as with great local merchants.”

Groupon has been somewhat quiet on the acquisition front lately after a spate of purchases several years ago to help the company move deeper into commerce solutions and working more directly with local merchants, and then a subsequent contraction of the business that saw Groupon move out of some of these newer areas (for example selling off its point-of-sale business) close and sell a number of international operations, and lay off staff.

This acquisition is notable because it’s a turn away from that strategy, focusing instead on offers that can apply irrespective of your specific city location. (Groupon’s core service and daily offers remain banked around a specific city or other location.)

On the side of Cloud Savings Company, the business has been in a transition of its own: gift cards have mainly been designed as physical objects, resembling credit or other payment cards, but as retailers work on ways of both bringing down those costs and better tracking who is buying what, in order to capitalize better on that purchasing history, “cards” are becoming virtual cards in mobile wallets. That is something that Giftcloud is also developing, and plans to continue with Groupon (which has built out its service in part by way of a popular mobile app).

“We’re very excited for Vouchercloud and Giftcloud to join the Groupon family. We recognize the potential in combining our expertise in the coupon sector to enhance our offerings for consumers in the UK and beyond,” said Greg Le Tocq, co-founder and director of Cloud Savings Company, in a statement. “In joining together, we can create even more — and more effective — ways for customers to save and businesses to grow. We equally look forward to working with Groupon to grow the Giftcloud business, as we continue to be at the forefront of innovation while the gift card industry moves from plastic to digital.”

Groupon will be bringing on Cloud Savings’ 100 employees and keeping them based out of their current offices in Bristol. It said that it expects the deal to contribute $5 million to $6 million in Adjusted EBITDA in 2018.

from TechCrunch

ZeroCater may have made its name in bringing restaurant food to offices for lunch (or other meals), but it has now raised a new fresh round of funding for the next perk it hopes to bring to companies: snacks.

While ZeroCater continues to expand from city to city with new restaurants as it tries to grow beyond just bringing lunch to startups in the Bay Area, it’s now looking to compete with the likes of Aramark to make sure it gains control of the fridges and pantries in offices as its next big line of business. And while it may seem like a perk, as competition for talent continues to heat up regardless of city, those perks are increasingly becoming table stakes to keeping the best people around. To do that, the company today said it has raised a new $12 million financing round led by Cleveland Avenue, with participation by Justin Kan, Romulus Capital and Struck Capital.

“You have more companies trying to compete for the same talent,” co-founder Arram Sabeti said. “When you’re looking at the cost of labor and recruiting great talent, all this stuff is a rounding error. When you’re looking at lunch, for example, the economic argument is pretty obvious.”

As such, getting into that market will be a tricky one — hence the new financing. ZeroCater increasingly has to ingest a lot of new data and form those partnerships, which requires talent. The company already has more than 1,000 SKUs (or options, really) for products it can stock as snacks. ZeroCater is looking to create a suite of tools for managers to help give employees a level of granularity they might be used to when it comes to procuring office equipment, giving them the ability to give specific feedback as to what kind of drinks they might want in their fridge. Those options may even vary from floor to floor, and the goal is to keep track of all of this in a consistent way.

The theory of owning snacks is pretty similar to its goal with restaurants: figure out what employees actually want, and help those businesses get the right products in the building based on employee feedback. Rather than burying a line item in a spreadsheet somewhere, ZeroCater wants to help employers understand what they are buying, and why they are buying it. The goal in the end is to keep their employees happy.

ZeroCater got its start working with restaurants that were trying to either expand their business, or even get off the ground. The company offers an opportunity for restaurants to run a kind of test for their meals and businesses with companies, which get access to good food while enabling those restaurants to run a trial before either introducing new dishes, or even opening up an actual restaurant. The whole point is to create a feedback loop where employees can help inform businesses on what’s good, and what isn’t.

“[Managers] really don’t feel like employees get to participate [in the picking process],” Sabeti said. “They want a mechanism for employees to give feedback and tell the provider what they want to receive. The most feedback [vendors] get is from sending someone to sit with a facilities manager once a quarter. With our product, we have a dashboard where employees can see what’s coming, vote on different items, and then we can collect that feedback.”

Snacks may, indeed, serve as an interesting differentiator in a market that is increasingly complex. Square earlier this month acquired office-ordering startup Zesty as it looks to continue to expand its Caviar service. While that’s one example, it may indeed be a sort of harbinger of increased competition when it comes to office catering — and an example of having to move beyond just restaurants in order to remain competitive.

from TechCrunch

Paragraf, a Cambridge University graphene spin-out, has closed a £2.9M (~$3.9M) seed round. The funding is led by the university’s commercialization arm, Cambridge Enterprise, with Parkwalk Advisors, Amadeus Capital Partners, IQ Capital Partners and angel investors also participating.

Graphene refers to the one atom-thick latticed carbon material that’s been exciting scientists with its potential for more than a decade. Although turning a nanomaterial with transformative promise into practical and robust commercial products has not turned out to be a cake walk.

Paragraf reckons it’s onto something that can help accelerate developments though, having come up with what it says is a novel (and patent-protected) approach to manufacturing graphene for commercial use-cases — so in larger and better quantities and qualities than the small flakes that have typically been the production rule so far.

The team claims their technique overcomes a raft of problems which have stymied graphene developments to date, such as poor uniformity, reproducibility, limited size and material contamination.

Their wider focus is on producing atom-layer thick 2D materials — with graphene their starting points — for the development of a new generation of electronic devices. And early claims for the nanomaterial included suggestions that it could enable a new generation of flexible, transparent electronics.

“Harnessing the extremely high conductivity, superb strength, very low weight and ultimate flexibility of graphene, Paragraf’s technology is the first ever commercial-scale method validated to reproducibly deliver functionally active graphene with properties targeted to its final device-specific application, with both high quality and high throughput,” is the team’s claim for their approach.

The business has been spun out of the Centre for Gallium Nitride group of Professor Sir Colin Humphreys in the university’s department of materials science. According to Crunchbase Paragraf was founded in 2015.

So far they say they’ve produced layers of graphene with electrical characteristics optimized for producing “very sensitive detectors at commercial scale”, as well as “improved efficiency contact layers for common technologies such as LEDs”.

Among their targets for graphene devices are transistors, where they reckon the nanomaterial could deliver clock speeds several orders of magnitude faster than silicon-based devices; chemical and electrical sensors, where they say it could increase sensitivity by a factor of >1,000; and novel energy generation devices — arguing graphene could tap into “kinetic and chemical green energy sources yet to be exploited by any other technology” (so chalk up another wonder claim).

Of course those are all yet more miraculous sounding claims being made for graphene — the likes of which have been liberally attached to the substance for years. And Paragraf still faces the hard graft of proving out their claims. So it’s a pretty safe bet that multiple years of R&D are still needed before mass market graphene based devices are within the average consumer’s grasp.

Commenting on the funding in a statement, Hermann Hauser, co-founder of Amadeus Capital Partners, said: “Graphene has demonstrated some remarkable achievements in the lab, showing great promise for many future electronic technologies. However, without a pathway to commercial viability, scaling from proof of concept to end user accessible products remains beyond the horizon. Paragraf’s novel approach to two-dimensional materials fabrication brings the possibility of mass market graphene based devices a step closer to reality.”

In another supporting statement, Dr Simon Thomas, CEO and co-founder of Paragraf, added: “There’s no doubt that the electronic, mechanical and optical properties of two-dimensional materials such as graphene have the potential to significantly increase performance in a multitude of state of the art technologies. However, until materials like graphene can be delivered in commercially viable, device compatible, functionally targeted forms, the achievements demonstrated at lab scale will not be transferred to real-world products. At Paragraf we have developed the first production technique that allows true scaling of graphene based devices.”

from TechCrunch

When trying to figure out what to do after an extensive career at Google, Motorola, and Flipkart, Punit Soni decided to spend a lot of time sitting in doctors’ offices to figure out what to do next.

It was there that Soni said he figured out one of the most annoying pain points for doctors in any office: writing down notes and documentation. That’s why he decided to start Suki — previously Robin AI — to create a way for doctors to simply start talking aloud to take notes when working with patients, rather than having to put everything into a medical record system, or even writing those notes down by hand. That seemed like the lowest hanging fruit, offering an opportunity to make it easier for doctors that see dozens of patients to make their lives significantly easier, he said.

“We decided we had found a powerful constituency who were burning out because of just documentation,” Soni said. “They have underlying EMR systems that are much older in design. The solution aligns with the commoditization of voice and machine learning. If you put it all together, if we can build a system for doctors and allow doctors to use it in a relatively easy way, they’ll use it to document all the interactions they do with patients. If you have access to all data right from a horse’s mouth, you can use that to solve all the other problems on the health stack.”

The company said it has raised a $15 million funding round led by Venrock, with First Round, Social+Capital, Nat Turner of Flatiron Health, Marc Benioff, and other individual Googlers and angels. Venrock also previously led a $5 million seed financing round, bringing the company’s total funding to around $20 million. It’s also changing its name from Robin AI to Suki, though the reason is actually a pretty simple one: “Suki” is a better wake word for a voice assistant than “Robin” because odds are there’s someone named Robin in the office.

The challenge for a company like Suki is not actually the voice recognition part. Indeed, that’s why Soni said they are actually starting a company like this today: voice recognition is commoditized. Trying to start a company like Suki four years ago would have meant having to build that kind of technology from scratch, but thanks to incredible advances in machine learning over just the past few years, startups can quickly move on to the core business problems they hope to solve rather than focusing on early technical challenges.

Instead, Suki’s problem is one of understanding language. It has to ingest everything that a doctor is saying, parse it, and figure out what goes where in a patient’s documentation. That problem is even more complex because each doctor has a different way of documenting their work with a patient, meaning it has to take extra care in building a system that can scale to any number of doctors. As with any company, the more data it collects over time, the better those results get — and the more defensible the business becomes, because it can be the best product.

“Whether you bring up the iOS app or want to bring it in a website, doctors have it in the exam room,” Soni said. “You can say, ‘Suki, make sure you document this, prescribe this drug, and make sure this person comes back to me for a follow-up visit.’ It takes all that, it captures it into a clinically comprehensive note and then pushes it to the underlying electronic medical record. [Those EMRs] are the system of record, it is not our job to day-one replace these guys. Our job is to make sure doctors and the burnout they are having is relieved.”

Given that voice recognition is commoditized, there will likely be others looking to build a scribe for doctors as well. There are startups like Saykara looking to do something similar, and in these situations it often seems like the companies that are able to capture the most data first are able to become the market leaders. And there’s also a chance that a larger company — like Amazon, which has made its interest in healthcare already known — may step in with its comprehensive understanding of language and find its way into the doctors’ office. Over time, Soni hopes that as it gets more and more data, Suki can become more intelligent and more than just a simple transcription service.

“You can see this arc where you’re going from an Alexa, to a smarter form of a digital assistant, to a device that’s a little bit like a chief resident of a doctor,” Soni said. “You’ll be able to say things like, ‘Suki, pay attention,’ and all it needs to do is listen to your conversation with the patient. I’m, not building a medical transcription company. I’m basically trying to build a digital assistant for doctors.”

from TechCrunch

Cleo, the London-based fintech that offers an AI-powered chatbot as a replacement for your banking apps, continues to put together an impressive list of backers. The startup’s early investors already include Entrepreneur First, Skype founder Niklas Zennström, Wonga founder Errol Damelin, and LocalGlobe, the seed VC firm founded by father and son duo Robin and Saul Klein, amongst others. Now TechCrunch can reveal that TransferWise founder Taavet Hinrikus has become a Cleo investor and advisor.

In a call with Hinrikus last week, he explained that the investment came about after he kept hearing of Cleo and its co-founder and CEO Barney Hussey-Yeo from various contacts in the London startup scene. The pair met up around 6 months ago and after learning more about the company’s vision, the TransferWise founder wanted in. “The guy is very low-key, hands on building, [and] focussed on solving a customer problem,” says Hinrikus, “so I was really impressed with that and said, ‘hey, if I can join the party, I’d love to’. And he said, ‘sure, come onboard’.

The customer problem Cleo has set out to solve, as articulated by the TransferWise founder, is helping millennials “live with their money”. The Facebook Messenger chatbot gives insights into your spending across multiple accounts and credit cards, broken down by transaction, category or merchant. In addition, Cleo lets you take a number of actions based on the financial data it has gleaned. You can choose to put money aside for a rainy day or specific goal, send money to your Facebook Messenger contacts, donate to charity, set spending and alerts, and more.

“It’s a proactive bank, it’s a bank that talks to you, and tells you on a Monday morning, ‘hey, you know, you can spend £100 this week’. And that’s really valuable for these people,” says Hinrikus. “I think there are a lot of millennials that are super happy with the product. What’s going to come of it, who the hell knows? It’s a long journey ahead, but it’s exciting. Starting by solving one pain-point for these people, there’s a ton of things you can do”.

Cleo’s recent (albeit tentative) U.S. launch hasn’t gone unnoticed, either, with Hinrikus describing growth across the pond as “super impressive”. I understand that Cleo hit 200,000 users in April, and is growing by 3,000 users a day, with the U.S. driving over half of that growth. The company is eyeing up further international moves, too, something the TransferWise founder is well-positioned to help with as one of the few European founders that has scaled a consumer-facing technology company globally.

“I get a kick out of helping the next generation of founders,” he says, citing recent investments in Juro, and Open Cosmos, along with Cleo. “There are lots of people building the next TransferWise, not in a sense of competing with us, but in a sense of building large successful companies that are doing something important. I just enjoy helping these founders navigate the journey. Maybe I think too highly of myself, but I think maybe sometimes I can give some good advice — sometimes bad advice, I’m sure — and I think that’s a way of giving back”.

One interesting aspect to Cleo’s global ambitions is the potential speed the U.K. startup can move at because of the decision not to become a bank in its own right, which would otherwise bring significant capital and regulatory friction. Cleo co-founder Barney Hussey-Yeo has always said that “nobody needs to be a bank to replace your banking app,” especially in light of Open Banking/PSD2 regulation, which is forcing banks to let customers share their data with third-party apps of their choosing.

“I think you can do a lot in the Open Banking way. I think the tools out there are still a couple of years away… [but] PayPal is not a bank, TransferWise is not a bank, Revolut is not a bank, and Cleo is not a bank. Yet you can still do a lot of great stuff,” says Hinrikus.

Meanwhile, although Cleo has begun to experiment with monetisation, including earning affiliate revenue when persuading users to switch gas and electricity providers, the startup’s latest investor describes those efforts as “peanuts” and says it is barely scratching the surface of what’s possible. “There’s a gazillion opportunities,” he says. “If you think about insurance, if you think about investing, if you think about credit, there’s so much you can do. It’s really about being smart and choosing which ones to double down on… If you want to build a really big business, then credit may be the most important”.

from TechCrunch