Author: Thomas Crown

Mixcloud, the London startup that offers an audio streaming platform designed for long-form content, has closed its first-ever funding round, TechCrunch has learned. According to a regulatory filing and since confirmed by co-founder Nico Perez, the ten-year old company has raised approximately $11.5 million led by WndrCo, the media and technology holding company based in Los Angeles and San Francisco.

As part of the investment, WndrCo partners Ann Daly (former president of DreamWorks Animation) and Anthony Saleh (an investor and artist manager of hiphop stars Nas and Future) have joined the Mixcloud board. The injection of capital will be used to scale the service globally and for product development, says the company.

This will include doubling down on the U.S., hence Mixcloud’s new backers, and growing the company’s 22-person team, both in London and New York (where Perez is now based). On the product side, I understand the plan is to “diversify the platform,” which would appear to point to a recent licensing deal with Warner and new paid Mixcloud consumer offerings, making the company less reliant on display advertising and other types of brand sponsorship alone.

That Mixcloud has raised a decent sized funding round isn’t surprising in itself. The music streaming site, which originally wanted to be something akin to ‘YouTube for long-form audio’ has carved out a decent following as a place to house archived radio shows and DJ mixes, and counts more than 1 million “curators” uploading content to the platform. However, aside from a couple of U.K. government grants in its formative years, the fact that the company hasn’t taken any outside funding since being founded in 2008 is no-less than remarkable. As is, perhaps, its survival. The history of consumer-facing music startups is littered with companies that raise significant venture capital, before ultimately crashing and burning or being litigated out of existence.

“We are fairly rare, if not unique,” Perez tells me, in his understated way. “We quit our jobs and incorporated the company in 2008 and then the next two years was the challenge of starting any new company, around building the team, trying to raise funding, and in our case doing these innovate types of [music] licenses. And, being straight up honest with you, we couldn’t fundraise. We couldn’t find anybody to put in money. It was a very different time back then”.

To put that period in context, the term ‘Silicon Roundabout,’ used to describe the emerging tech cluster in East London where Mixcloud would eventually relocate, only entered the public domain in July 2008. And although Spotify was founded the same year, it remained very much under the radar. Meanwhile, the spectacular rise and fall of Napster over the previous decade was still fresh in the memories of investors.

“There had been several major collapses — Napster being the largest but also other services like imeem — that had grown and ultimately failed. Investors were very, very wary of the space, or maybe we were just not very good at pitching. Either way we didn’t manage to raise in the early days… For better or worse, we had to figure out how to survive by ourselves”.

This saw Mixcloud initially set up home in a warehouse in an industrial estate near Wembley, a much less fashionable part of London, in a bid to keep costs low. The team also took on “small jobs on the side,” ploughing any surplus money they earned into keeping the service alive. Aside from bootstrapping and those early government grants, the key to survival was growing Mixcloud’s users at roughly the same speed as advertising revenue, alongside pioneering new content licenses and fingerprinting technology to ensure rights-holders were paid.

“Slowly, over the next few years, it started to get traction amongst users and listeners. Then we started to make a little bit of money from Google Adsense and a few different brand partnerships. And then it took a good five or six years until we could support a small team, and we never raised investment along the way”.

That journey instilled a culture at Mixcloud of “being lean and not splashing out huge amounts of money on launch parties”. This not only ensured the lights could be kept on, but in recent years and somewhat ironically, the same financial discipline and non-reliance on venture capital started to attract the attention of investors. As did the latent potential for Mixcloud to go international.

“The next step for us — and actually part of the fund-raise — is how do we move from bringing this very U.K.-centric streaming platform to being a global player,” adds Perez. “We looked at the wider marketplace and the time we’re in right now… and we kinda felt like if we really wanna go for it then we’re gonna need some firepower behind us. So that’s why we did the deal”.

from TechCrunch

More devices are coming onto the Internet every single day, and that’s especially true within organizations that have a fleet of devices with access to sensitive data — which means there are even more holes for potential security breaches.

That’s the goal of Kolide. The aim is to ensure that companies have access to tools that give them the ability to get a thorough analysis of every bit of data they have — and where they have it. The Kolide Cloud, its initial major rollout for Mac and Linux devices, turns an entire fleet of apps and devices into what’s basically a table that anyone can query to get an up-to-date look at what’s happening within their business. Kolide looks to provide a robust set of tools that help analyze that data. By doing that, companies may have a better shot at detecting security breaches that might come from even mundane miscalculations or employees being careless about the security of that data. The company said today it has raised $8 million in new venture financing in a round led by Matrix Partners.

“It’s not just an independent event,” Kolide CEO Jason Meller said. “The way I think about it, if you look at any organization, there’s a pathway to a massive security incident, and the pathway is rather innocuous. Let’s say I’m a developer that works at one of these organizations and I need to fix a bug, and pull the production database. Now I have a laptop with this data on this, and I did this and didn’t realize my disk wasn’t encrypted. I went from these innocuous activities to something existentially concerning which could have been prevented if you knew which devices weren’t encrypted and had customer data. A lot of organizations are focused on these very rare events, but the reality is the risk that they face is mishandling of customer data or sensitive information and not thinking about the basics.”

Kolide is built on top of Osquery, a toolkit that allows organizations to essentially view all their devices or operations as if it were a single database. That means that companies can query all of these incidents or any changes in the way employees use data or the way that data is structured. You could run a simple select query for, say, apps and see what is installed where. It allows for a level of granularity that could help drill down into those little innocuous incidents Meller talks about, but all that still needs some simpler approach or interface for larger companies that are frantically trying to handle edge cases but may be overlooking the basics.

Like other companies looking to build a business on top of open source technology, the company looks to offer ways to calibrate those tools for a company’s niche needs that they necessarily don’t actively cover. The argument here is that by basing the company and tools on open source software, they’ll be able to lean on that community to rapidly adapt to a changing environment when it comes to security, and that will allow them to be more agile and have a better sales pitch to larger companies.

There’s going to be a lot of competition in terms of application monitoring and management, especially as companies adopt more and more devices in order to handle their operations. That opens up more and more holes for potential breaches, and in the end, Kolide hopes to create a more granular bird’s-eye view of what’s happening rather than just creating a flagging system without actually explaining what’s happening. There are some startups attacking device management tools, like Fleetsmith does for Apple devices (which raised $7.7 million), and to be sure provisioning and management is one part of the equation. But Kolide hopes to provide a strong toolkit that eventually creates a powerful monitoring system for organizations as they get bigger and bigger.

“We believe data collection is an absolute commodity,” Meller said. “That’s a fundamentally different approach, they believe the actual collection tools are proprietary. We feel this is a solved problem. Our goal isn’t to take info and regurgitate it in a fancy user interface. We believe we should be paid based on the insights and help manage their fleet better. We can tell the whole industry is swinging this way due to the traction OSQuery had. It’s not a new trend, it’s really the end point as a result of companies that have suffered from this black box situation.”

from TechCrunch

Online coursework is exploding across all kinds of verticals and fields of expertise — but those courses inevitably end up on platforms like Udemy, and for Ankur Nagpal, that’s really not a way to build a true business.

That’s why Nagpal started Teachable, a platform for experts that want to create a business around their coursework that helps them build an entire online education suite beyond just platforms like Coursera or Udemy. Niche expertise can be way too valuable for just a simple marketplace like Coursera, Nagpal says, and experts in those areas — even seminars on mindfulness or Feng Shui — should be able to make more than just a few thousand dollars a year off that coursework. Nagpal said the company has raised an additional $4 million in equity from existing investors Accomplice Ventures and AngelList co-founder Naval Ravikant.

“In the past, if you wanted to teach courses, you could either put it in the marketplace or have it on your own website — with your brand and domain name and full control of everything — but there’s no easy way to do it,” Nagpal said. “It’s the difference between listing a physical good on Amazon and having your own storefront. While you could make a few thousand dollars on Udemy, you couldn’t build a sustainable business selling courses for $10 to $15.”

That fundraise, however, comes with a whopping $134 million valuation in the end as the company expects to be profitable by the end of Q4 this year. Teachable has around 10 million students across 125,000 courses, with 12,000 paying customers on the platform. Nagpal says it is aiming for a business that will generate more than $200 million in sales this year, which might not be so far off given the speed at which it has ramped up from just $5 million in 2015 to around $90 million in 2017.

In Teachable’s earliest days, instructors focused on marketing or programming, which is where a lot of online coursework got its start when the value of knowledge skills like Ruby or Python skyrocketed. But since then, Teachable has grown into a platform where users with niche skill sets can create robust coursework, and if they already have content ready to go like videos, can get their domain up and running in just a few hours. Teachable has a multi-tier pricing structure ranging from taking small transaction fees to a paid subscription of nearly $299 a month in order to manage its online domains, which is designed to appeal to a wide variety of potential instructors looking to get their start.

“If you look at our top 10 or 20 instructors, there’s virtually no pattern of verticals that are successful,” Nagpal said. “[The popular courses are based on] professional skills, or learning to play a musical instrument, or fly a drone, or even financial empowerment. There’s almost an anti-pattern.”

And again, these aren’t supposed to be courses that get wrapped up into a $49 per-month subscription. Courses in highly specific verticals — like something like Feng shui — can cost up to a hundred dollars or more. But the idea is that these seminars have so much value that students who are looking to dive deep into them are willing to go beyond the cost of just a Udemy in order to get the most valuable content. Teachable aims to make it easy to port the kind of content instructors might post on one of those marketplaces to quickly get them up and running with their own independent online course.

That free plan with a transaction fee is ultimately what at least piques the interest of potential instructors, and Teachable also hosts workshops to try to get them more excited about the opportunity — and then get them to start paying as they look to attract more and more students and need a more robust toolkit, like advanced reporting. or priority product support. The company doesn’t really focus on paid marketing because Nagpal says it’s “not very good at it,” as it primarily leans on word of mouth and affiliates.

“Courses on marketplaces are effectively commoditized,” he said. “I would buy the top-rated courses, but the first course is as valuable as the second or third. On our platform, if people are buying the Ruby on Rails course, it’s probably because they’ve followed an expert on that for a year. What I’m buying is not commoditized, I have a relationship with that person. Their content is much more valuable. All the sales are generated through an instructor.”

Nagpal said he got his start building a bunch of, well, bad Facebook apps like personality quizzes and really simple flash games in the early days of the Facebook Platform. Getting such an early glimpse at that behavior on the Facebook Platform is pretty controversial today with the massive privacy scandal Facebook faces after Cambridge Analytica, a political research firm, ended up with personal data of up to 87 million people through a simple app on the Facebook Platform. Nagpal, however, said what now seems like a treasure trove of data was at the time not really all that useful for that business.

“We got some of that data, but to us it was junk and we never stored it,” he said. “It just seemed like noise.”

The biggest challenge for Teachable, Nagpal says, is making sure instructors actually want to remain instructors. The free tier might attract them to getting started, but instructors might just get burnt out from being instructors in general — whether that’s on Teachable or a marketplace like Udemy. The real competition, he says, are platforms like YouTube and other time sinks for content creators. To keep them on board, Teachable hopes to expand to other verticals of content like coaching and services. That, too, might keep it ahead of marketplaces like Coursera and eventually woo instructors with the opportunity to build an entire online business on Teachable.

“Every month we have 50 people getting more [than the top paid instructor on a platform like Skillshare],” he said. “The sustainability of the business is very different. It’s really hard to make a living selling $10 courses. On our platform, the average price point is closer to $100, which in turn gets reinvested to create actually good content. We’re finding most of the instructors don’t just sell courses, and they have multiple income streams. We’re trying to see if we can get our checkout product powering all that. That creates network lock-in.”

from TechCrunch

Online coursework is exploding across all kinds of verticals and fields of expertise — but those courses inevitably end up on platforms like Udemy, and for Ankur Nagpal, that’s really not a way to build a true business.

That’s why Nagpal started Teachable, a platform for experts that want to create a business around their coursework that helps them build an entire online education suite beyond just platforms like Coursera or Udemy. Niche expertise can be way too valuable for just a simple marketplace like Coursera, Nagpal says, and experts in those areas — even seminars on mindfulness or Feng Shui — should be able to make more than just a few thousand dollars a year off that coursework. Nagpal said the company has raised an additional $4 million in equity from existing investors Accomplice Ventures and AngelList co-founder Naval Ravikant.

“In the past, if you wanted to teach courses, you could either put it in the marketplace or have it on your own website — with your brand and domain name and full control of everything — but there’s no easy way to do it,” Nagpal said. “It’s the difference between listing a physical good on Amazon and having your own storefront. While you could make a few thousand dollars on Udemy, you couldn’t build a sustainable business selling courses for $10 to $15.”

That fundraise, however, comes with a whopping $134 million valuation in the end as the company expects to be profitable by the end of Q4 this year. Teachable has around 10 million students across 125,000 courses, with 12,000 paying customers on the platform. Nagpal says it is aiming for a business that will generate more than $200 million in sales this year, which might not be so far off given the speed at which it has ramped up from just $5 million in 2015 to around $90 million in 2017.

In Teachable’s earliest days, instructors focused on marketing or programming, which is where a lot of online coursework got its start when the value of knowledge skills like Ruby or Python skyrocketed. But since then, Teachable has grown into a platform where users with niche skill sets can create robust coursework, and if they already have content ready to go like videos, can get their domain up and running in just a few hours. Teachable has a multi-tier pricing structure ranging from taking small transaction fees to a paid subscription of nearly $299 a month in order to manage its online domains, which is designed to appeal to a wide variety of potential instructors looking to get their start.

“If you look at our top 10 or 20 instructors, there’s virtually no pattern of verticals that are successful,” Nagpal said. “[The popular courses are based on] professional skills, or learning to play a musical instrument, or fly a drone, or even financial empowerment. There’s almost an anti-pattern.”

And again, these aren’t supposed to be courses that get wrapped up into a $49 per-month subscription. Courses in highly specific verticals — like something like Feng shui — can cost up to a hundred dollars or more. But the idea is that these seminars have so much value that students who are looking to dive deep into them are willing to go beyond the cost of just a Udemy in order to get the most valuable content. Teachable aims to make it easy to port the kind of content instructors might post on one of those marketplaces to quickly get them up and running with their own independent online course.

That free plan with a transaction fee is ultimately what at least piques the interest of potential instructors, and Teachable also hosts workshops to try to get them more excited about the opportunity — and then get them to start paying as they look to attract more and more students and need a more robust toolkit, like advanced reporting. or priority product support. The company doesn’t really focus on paid marketing because Nagpal says it’s “not very good at it,” as it primarily leans on word of mouth and affiliates.

“Courses on marketplaces are effectively commoditized,” he said. “I would buy the top-rated courses, but the first course is as valuable as the second or third. On our platform, if people are buying the Ruby on Rails course, it’s probably because they’ve followed an expert on that for a year. What I’m buying is not commoditized, I have a relationship with that person. Their content is much more valuable. All the sales are generated through an instructor.”

Nagpal said he got his start building a bunch of, well, bad Facebook apps like personality quizzes and really simple flash games in the early days of the Facebook Platform. Getting such an early glimpse at that behavior on the Facebook Platform is pretty controversial today with the massive privacy scandal Facebook faces after Cambridge Analytica, a political research firm, ended up with personal data of up to 87 million people through a simple app on the Facebook Platform. Nagpal, however, said what now seems like a treasure trove of data was at the time not really all that useful for that business.

“We got some of that data, but to us it was junk and we never stored it,” he said. “It just seemed like noise.”

The biggest challenge for Teachable, Nagpal says, is making sure instructors actually want to remain instructors. The free tier might attract them to getting started, but instructors might just get burnt out from being instructors in general — whether that’s on Teachable or a marketplace like Udemy. The real competition, he says, are platforms like YouTube and other time sinks for content creators. To keep them on board, Teachable hopes to expand to other verticals of content like coaching and services. That, too, might keep it ahead of marketplaces like Coursera and eventually woo instructors with the opportunity to build an entire online business on Teachable.

“Every month we have 50 people getting more [than the top paid instructor on a platform like Skillshare],” he said. “The sustainability of the business is very different. It’s really hard to make a living selling $10 courses. On our platform, the average price point is closer to $100, which in turn gets reinvested to create actually good content. We’re finding most of the instructors don’t just sell courses, and they have multiple income streams. We’re trying to see if we can get our checkout product powering all that. That creates network lock-in.”

from TechCrunch

Sword Health, a startup operating out of Portugal that has developed a digital physiotherapy solution to enable patients to be treated remotely in their own homes, has raised $4.6 million in seed funding. Backing the round is Green Innovations, Vesalius Biocapital III, and other unnamed investors in the U.S. and Europe.

The company says it will use the new capital, which adds to an earlier ~$1.2 million grant from the European Commission, to accelerate the development of new digital therapies and drive global growth.

Using what it describes as a combination of “high-precision motion tracking sensors” and the latest advances in AI, the Sword Health solution aims to make the delivery of physiotherapy infinitely more scalable, in recognition that there is a worldwide shortage of physiotherapists. Its flagship product “Sword Phoenix” provides patients with interactive physical rehabilitation exercises from the comfort of their own home, supervised by remote physiotherapists.

“Twenty years ago my brother had a car accident. What I realised then (and this is still true now) is that there is a huge gap between the demand for physical therapy and our ability, as a developed society, to deliver that therapy,” Sword Health co-founder and CEO Virgílio Bento tells me.

“The problem is that the physical rehabilitation industry has not changed in the last 50 years. We’re still very much dependent on the one-to-one patient-therapist interaction, which is the gold standard, but it is not a scalable model and is actually very costly for both patients and healthcare providers”.

To remedy this, Bento and the Sword team began work on what he calls a “digital physical therapist” concept. The idea is that by using motion sensors attached to the appropriate places of a patient’s body, combined with an AI-driven user interface that can take that motion data and give instant feedback, some of what a physiotherapist does can be augmented by machines.

“With Sword Phoenix, clinical teams extend their therapeutic footprint to each patient’s home, scale their reach and are able to devote more time to delivering the human touch,” he says.

To date, Bento says Sword is working with insurance companies, national health services, health maintenance organisations and providers in the U.S., Canada, Australia, Norway, and the startup’s home country, Portugal.

“These customers are able to provide higher quality physical therapy services directly in the patient’s home and decrease operational costs at the same time – an accomplishment that is only possible in healthcare through enlightened use of data analysis and technology,” he adds.

In terms of competitors, Bento argues that the majority of health tech companies are focused on developing technologies that improve the one-to-one patient therapist interaction (e.g., Tyromotion, Hocoma). “This incremental improvement is not the solution because it does not result in a paradigm shift,” he says.

With that said, Bento does conceded that there are other startups trying to create a digital therapist. One I’ve covered in detail is Atomico-backed Hinge Health, which has developed a digital solution for musculoskeletal (MSK) disorders.

from TechCrunch