Supermercato24, an Italian same-day grocery delivery service, has raised €13 million in Series B funding. Leading the round is FII Tech Growth, with participation from new investor Endeavor Catalyst, and current investors 360 Capital Partners, and Innogest.
Similar to Instacart in the U.S. and claiming to the leader in Italy, Supermercato24 lets customers order from local supermarkets for delivery. The startup uses gig economy-styled personal shoppers who go into the store and ‘pick’ the products ordered and then deliver them same-day, or for an added cost within an hour.
The company charges a delivery fee to consumers, but also generates revenue from fees charged to partnering merchants, and, notably, through advertising. Supermercato24 says it has more than 15 partnerships with merchants, and has more than 50 consumer packaged goods customers (CPGs) advertising on its platform.
“Our customers represent that increasing share of the population that would love to spend their time differently rather than doing grocery shopping,” says Supermercato24 CEO Federico Sargenti, who was previously an Amazon Executive and launched the Amazon FMCG Business in Italy and Spain.
“Going to the store, pushing a cart through the alleys, queuing up, checking out and lifting heavy grocery shopping bags from the store’s register all the way up to your apartment can take lots of energy and up to 3 hours every week. Plenty of people would prefer to do all of that in a few minutes”.
Specifically, Sargenti says that Supermercato24’s customers span “hip youngsters to elderly people, single professionals to parents and working couples,” and that more than 65 percent of customers are women. “Customers have high expectations on their groceries, because they are used to choose from a wide product range at supermarkets, with competitive prices and qualitative fresh products; plus, they expect a comfortable, convenient and same-day delivery. And that’s what we offer them,” he adds.
The company’s grocery ordering and delivery service is active in more than 23 Italian cities, and Supermercato24 says a number of cities are already profitable at contribution margin level. That said, Sargenti concedes it is still early days in terms of the switch from offline grocery shopping to online. He also says that Southern Europe has been historically limited by a lack of supply and that the way to address this is a collaboration between traditional grocery retailers and tech companies like Supermercato24, a model that he insists can scale in both big and small cities.
The Italian grocery market is particularly fragmented, too, with the top 5 retailers owning less than 40 percent of the national grocery market, apparently. This arguably makes it more ripe for a marketplace rather than traditional e-grocery delivery model. One challenge is that the majority of people in Italy don’t live in large cities or other high population density areas of the country. It is Supermercato24’s ability to scale in low density areas — or so it claims — that gives it an edge.
Meanwhile, I’m told the new funding will be used to improve operations and product both for customers and for merchants, as well as to expand the service to new markets. “In Europe, Supermercato24 is already the biggest on-demand e-grocery marketplace in terms of revenues and it’s already in discussion with current and prospect retailers to expand the service across Europe to successfully replicate Instacart’s case,” says the company, unashamedly.
BitTorrent, an early mover (and currently the largest player) in decentralised computing architecture to distribute and store data, is being sold for $140 million in cash to Justin Sun and his blockchain media startup Tron, according to multiple sources close to the deal, who spoke to TechCrunch.
Variety earlier this week reported that a sale of the company to Sun closed last week, without naming a price, following rumors that circulated for at least a month that the two were in negotiations.
Shareholders have now been sent the paperwork to sign off on the deal, and that has detailed the $140 million price — which includes both a cash payment from Sun as well as cash in the company being distributed to shareholders alongside proceeds. Some are, we understand, still disputing the terms, as more than one person claims to have made the introduction between Sun and BitTorrent. A source says it’s unlikely that the disputes will actually kill the acquisition, given how long BitTorrent has been looking for a buyer.
BitTorrent most recently said it has about 170 million users of its products. Currently, these include its main client and BitTorrent Now. The latter is focused on video, music and other creative content. BitTorrent claims that its protocols move as much as 40 percent of the world’s Internet traffic on a typical day, making it the largest decentralised application around at the moment.
Tron is one of the new kids on the block in the wide world of blockchain startups. Founded by Sun, who previously had worked for Ripple (a settlement system built on blockchain tech), Tron says its mission is to build “a truly decentralized Internet and its infrastructure.” That has included (no surprises here) the creation of its own cryptocurrency, the TRX. TRX, loosely, appears to be a cryptocoin for the entertainment industry. Tron has plans to use TRX as a way to pay for content on its network, according to this whitepaper.
TRX is also intended for simple trading. The company has launched a MainNet distributed ledger for transactions, with its own TRX migrating to the MainNet starting later this week. Tron says that the market cap for all TRX is currently valued at just under $4.6 billion with the value of a single TRX coin $0.045.
Neither Tron, Justin Sun, nor representatives for BitTorrent responded to our requests for comment, so it’s not completely confirmed how Tron plans to use BitTorrent.
But one shareholder we spoke to says there are two plans. First, it will be used to “legitimise” Tron’s business, which has met with some controversy: it has been accused of plagiarising FileCoin and Ethereum in the development of its technology. And second, as a potential network to help mine coins, using BitTorrent’s P2P architecture and wide network of users.
The acquisition will close off a tumultuous but also interesting life for BitTorrent, founded in 2004 by Bram Cohen and Ashwin Navin to commercialise peer-to-peer networking technology as a way to share and store files.
BitTorrent was a trailblazer in considering how decentralised network architectures using all the machines in a network as nodes — in contrast with the server-based architectures that dominate the tech world today — could be used to share, store and backup data. Some believe this is a more secure system overall because there is no central repository to hack.
Yet the company has also become synonymous with “file sharing” and all the pros and cons that have come with that. Most notably, it has fought long against a bad rap for torrenting technology — which can be used to share copyrighted files illegally — by positioning itself as creator-friendly, buying in content rights, and establishing a range of products built on the P2P protocol. It also used its architecture to take a stand on privacy on the web at the height of the NSA controversy.
But while BitTorrent makes revenues — it hadn’t raised money since 2008 — its strategy to build a long-term larger business on that technology never really took off as investors and others hoped it would. That resulted in a number of management changes and a couple of reshuffles of its product as its leaders looked for the killer app. Some of its earlier product efforts are still around: BitTorrent’s enterprise services were spun off into a standalone company now called Resilio, led by BitTorrent’s former CTO and CEO, Eric Klinger.
(Side note: Interestingly, both Cohen and Navin are still following the trajectory of decentralisation that has led to the rise of blockchain, and that led Tron to BitTorrent. Cohen is building “eco-friendly” cryptocurrency Chia, and Navin, as the CEO of measurement and analytics provider Samba TV, is building a cryptocurrency to incentivise users to share more of their viewership data.)
Despite the current buzz for decentralised architectures around blockchain, we understand that BitTorrent had been looking for a buyer for a while. Long ago, one source told us, both Akamai and Rovi (which is now TiVo) had both considered buying BitTorrent but nothing came to pass. Akamai instead acquired Red Swoosh, a BitTorrent competitor that was Travis Kalanick’s first startup before Uber, and Rovi moved on in its own direction.
More recently, offers were less forthcoming, although there was interest from other crypto companies in addition to Tron. The company had raised around $60 million in funding in the last 14 years, according to PitchBook data, which notes that it had been valued around $145 million at its peak. Its investors have included DCM, Accel and DAG.
When Redpoint’s partners handed hims CEO Andrew Dudum the term sheet for the company’s early financing round, one of the most surprising part of that whole process was that the investment partners had actually figured out the font that the company used — and printed out the term sheet with that font.
“I have no idea how they even found it,” Dudum said. “I’ve obviously known these guys a long time. There’s this foundation of trust there, they were able to motivate the entire Redpoint partnership in 18 hours from a meeting at 6 p.m. at night on, like, a Thursday. We got a call that night an hour later saying, ‘are you free at 11 a.m. tomorrow morning,’ and the entire partnership showed up at our office, and they did what I’ve never seen done before which was present the term sheet right there on the spot that was printed on the Hims branded peach color with the Hims branded font.”
That’s because Redpoint today, Dudum says, is staffed up with operators that just better understand those ins-and-outs because they have the actual experience. The firm brought in former Uber Freight operator and former CRV partner Annie Kadavy in April. Alex Bard joined last year after running email marketing startup Campaign Monitor and previously serving as an EVP and GM at Salesforce. It’s that fresh blood and team of partners that come from a history of running strategic elements of companies that will be responsible for Redpoint’s seventh fund, a new $400 million fund the firm has wrapped up as it looks to continue hunting down early-stage investments like the ones it has in Hims, Looker, Zuora and others. Redpoint says this is all part of a generational hand-off — a process each firm has to go through at some point — and hand off the fund to a new set of faces.
In the past decade, venture firms have found themselves looking for new younger partners — especially more diverse ones (the percentage of women partners hovers at around 8%) — as a way to not only widen the scope of the areas they understand, but also just have a more diverse set of partners that founders can relate to. That’s especially true as consumer trends rapidly shift and become considerably more arcane, especially with partners that have a lot of experience working with the Twitters and Facebooks of the world but might have missed out on next-generation consumer applications like Snap. But it’s also true for even enterprise products as consumer behavior and usage rapidly shifts over time.
“There’s speed, there’s conviction, and there’s relationships,” Redpoint partner Satish Dharmaraj said. “You want the younger partners who can feel the market and build relationships before the deal is done and be able to relate to those founders. That’s what younger partners bring — building those relationships early, hustling before everyone else. For Redpoint [fund] 7, none of the founders are involved in the fund, but they’re always there to support us and give us advice and help us think through issues.”
The whole process of running Redpoint, too, sometimes feels like a quasi-operating role, Brandless CEO Tina Sharkley said. Redpoint now has monthly all-hands stand-ups, a common feature of many startups to discuss what’s happening and where the business is going. Redpoint partners will often hop in and out of roles that a company might need at a time before they’re able to hire the right spot. Redpoint’s partners are expected to be ready to step in with their own experience where necessary, or help connect them with the right people who have that experience, or help hunt down the talent that they need.
“It’s just a very different sort of environment [today] when talking to other founders and operators,” Bard said. “A big part of the attraction was they’d been there and done that, versus just having academic experience. There’s more capital than there’s ever been, but founders are looking for people who can build businesses who have been there and done that.”
That doesn’t just end with talking about the ins and outs of a company. Investors, who are talking a little more publicly about it these days, also seek to serve as sounding boards for founders when crap hits the fan. Kadavy, Bard, and others have to serve as a kind of voice of reason when they get a call late on a Saturday night from a founder freaking out after some huge deal fell through or a business came to a complete halt, and talk them through that whole process based on their experiences — just be there to listen. At a time when mental health becomes a critical focus in the tech world, that’s essentially turned into a part of the job for any venture partner. Dharmaraj said the job is to stress to founders that it’s a marathon, not a sprint, and to not quickly get burnt out.
“I have a text me any time, call me any time policy,” Kadavy said. “It is wildly tumultuous and can be very quickly becoming very lonely. I know having been one myself, and having lots my friends who are founders. You’re completely captured by your company and employees, or product market fit, or investors, and your aperture isn’t necessarily wide enough to have an idea of what you’re doing. The problems are almost always solvable problems, which therein makes people feel better. We might not know the answer, but you have an inkling that you can do something. I like to go on walks with founders that are outside of South Park (where Redpoint is located), to get out and see what else is out there.”
For Dudum and Sharkley, the backstory is pretty similar — they both got to know Redpoint partners very early on before they ended up as investors in Hims and Brandless. Sharkley met Redpoint partner Jeff Brody through the process of becoming a board member at HomeAway, while Dudum met Tomash Tunguz at around age 20 because he liked his writing. They both got to know both founders over the course of many years and kept in constant communication with the firm. Dudum said when Redpoint turned down an investment in one of his companies, partner Ryan Sarver personally went to his office, printed out a memo with all the reasons they didn’t invest, and walked through every point with him. Bard, one of Redpoint’s new partners, handled Redpoint’s later investment in Hims.
“It comes back to a hunger and willingness to roll up their sleeves and move fast and help,” Dudum said. “This is kind of something I’ve thought about a lot in the last few years. Often, help as a VC isn’t super glamorous. It’s not some crazy strategic introduction, or one of those once-a-year type things. It’s actually doing things like energizing the founder when it’s been a tough week. Or it’s getting into the dirty of helping source candidates for a specific role that we’re really trying to fill. It’s things like these that are actually really tedious [but the most important]. These guys that I worked with are willing to do that and make an extra effort to do that.”
In the end, that generational transition will still probably be a tough one. Redpoint has to differentiate itself as a firm that can provide something that gives startups an edge over just going to another firm, especially as the size of funds — and valuations in even early financing rounds — explode. More and more money is flowing into fewer and fewer deals, and founders have gotten considerably more savvy in figuring out where to look for those investments. Kadavy, Bard, and the rest of the team are tasked with sourcing those best deals and ensuring that they can at least get the attention of founders early on even if they aren’t going to invest in them right away. But getting there in the middle of that transition is one of the things that got Kadavy excited to join Redpoint in the first place.
“I think most venture firms are talking about being in a generational transition and in our different stages, they’re actually taking action or just talking about it,” Kadavy said. “Generational transitions take at least two funds, so that’s conservatively six years or longer. It’s easy for people to talk about it for a long time but not actually happen. When I was at CRV, a fund that’s been around for 45 years, I learned a lot about how generation transitions can go quite well. They’ve been successful over many decades. I honestly believe having talked to many other firms and many friends, it’s the most unique point in time based on where they truly are in their generational transition.”
Crate.io, the winner of our Disrupt Europe 2014 Startup Battlefield competition, today announced that it has raised an $11 million Series A round. In addition, the company also launched its ‘Crate Machine Learning Platform’ today, a new hosted solution for businesses that want to use the company’s SQL-based database platform for working with IoT data.
The new funding round was led by Zetta Venture Partners and Deutsche Invest Equity, with participation from Chalfen Ventures, Momenta Partners and Charlie Songhurst. Existing investors, including Draper Espirit, Vito Ventures and Docker founder Solomon Hykes also participated.
Crate co-founder and CEO Christian Lutz told me that over the course of the last year or so, the company has seen a large increase in paying customers, which now tally up to about 30. That has also allowed Crate to grow its revenue beyond $1 million in annual run rate. He attributed the current success of the startup to its renewed focus on machine data, something the team wasn’t really focused on when it first launched its product.
It was also this focus that made fundraising easier, Lutz told me. “What made the difference no is that very strong focus on machine data — in combinate with delivering sales,” he said. The fact that Crate now also has a number of well-known reference customers, including the likes of Skyhigh Networks and ALPLA, a packaging manufacturer that you have probably never heard of but that produces virtually all the bottles for Coca-Cola and Unilever for the U.S. market (as well as a bunch of other bottles that you probably have at home).
Unsurprisingly, the company, which now has over 30 employees, plans to use the new funding to expand its marketing and sales efforts, as well as to expand its core engineering team.
Talking about engineering. With its Machine Platform, Crate also today launched its first hosted offering, which lives on Microsoft’s Azure platform. That’s not a major surprise for two reasons: a) many of Crate’s industrial customers are already betting on Azure anyway and, b) Crate was part of the 2017 class of the Microsoft Growth Accelerator in Berlin. The focus of the new platform is to provide businesses with a single solution for ingesting large amounts of data from IoT devices. The platform supports real-time analytics and allows users to set up their own rules to trigger workflows and alerts as necessary. The platform itself handles all of the scaling (which is handled by the popular Kubernetes container orchestration tool), as well as backup, archiving and the usual role-based security functions.
Crate also today launched version 3.0 of its open source offering. While the company’s commercial focus is obviously on the value-added features for enterprises, it continues to actively develop the open source version, too and Lutz noted that this new version offers a 100x performance increase for some types of queries.
Peek, a U.S. startup aiming to digitize the travel activities industry, has pulled a $23 million Series B round of financing and uncorked a partnership with Google that will help increase its visibility.
Founded in 2012 by Ruzwana Bashir (CEO) and Oskar Bruening (CTO), the startup describes itself as “OpenTable for the activities market” in that it aims to make booking activities as seamless and straightforward as a restaurant or even a flight.
Peek raised $10 million two years ago, and this new round is led by Cathay Innovation with participation from existing backers that include ex-Yelp COO Geoff Donaker, Kayak founder Paul English, 2BF and Manta Ray. Peek has plenty of well-known angel backers, including Pete Flint — founder of Trulia and NFX — former Google executive chairman Eric Schmidt and Twitter CEO Jack Dorsey. This new round takes it to $40 million from investors to date.
In addition to the money, the startup has announced a tie-up with Google that will see its inventory added to Google Search, Google Maps and Google Trips. That’s sure to help visibility and spike bookings, and it adds to other partnerships that Peek has struck with platforms that include Yelp.
Peek is taking aim at the global activities market which Bashir estimates is worth some $150 billion, with the U.S. being the most lucrative market on the planet.
“It hasn’t gone through the analog-to-digital transition like other industries,” she told TechCrunch in an interview. “So we’re building the infrastructure and software that emerged in other industries ten years ago.”
“When you look at businesses in the U.S., over 70 percent don’t have real-time online booking, you still have to call the business or email them,” she explained.
That’s an important point, and it underlines the approach that Peek has taken. Unlike its Asia-based rivals, the company has a double-sided business which starts by offering booking software that allows travel companies to enable bookings and sales on their own website. It also allows them to run their businesses from mobile, which is increasingly important for businesses that exist outdoors, as is common in travel and activities.
That’s the hook that gets them into Peek, and from there the company offers more services under its ‘Pro’ service and also the consumer-facing platform that service providers can join. That’s the platform that travelers (or, rather, action-seekers) use to book activities. That distinction on ‘travelers’ is important since Bashir said that around one-third of Peek bookings come from people doing things in their own town, so not everyone is traveling.
Peek founders Oskar Bruening and Ruzwana Bashir.
Peek claims to offer 10,000 experiences in the U.S. and Mexico, as well as spots like Paris and London. It has 500,000 reviews and ratings, each of which is verified since users can only leave them if they have booked, paid-for and completed their activity.
Bashir said, in addition, that the company’s software has scaled to handle “hundreds of millions of dollars” in booking volume. She declined to give specific financial details, including revenue and profit/loss, but did say that the company’s unit economics are “highly profitable” but it is seeking growth right now.
“Part of this round is allowing ourselves to go out and reach more businesses,” she added.
For now, Peek is keeping its focus on the U.S. but it has also expanded into Mexico since that is a well-trodden destination for U.S.-based travelers. That focus will continue following this round, with Bashir adamant that with an estimated two percent of activity spend booked online, there’s plenty of potential growth to be had at home before tackling international markets.
She did, however, say that the decision to work with Cathay Innovation — which raised its inaugural $320 million fund last year — was partly borne out of an awareness that when it is time to venture overseas, the firm has experience and networks that will be helpful.
While Henrique Dubugras and Pedro Franceschi were giving up on their augmented reality startup inside Y Combinator and figuring out what to do next, they saw their batch mates struggling to get even the most basic corporate credit cards — and in a lot of cases, having to guarantee those cards themselves.
Brex, their new startup, aims to try to fix that by offering startups a way to quickly get what’s effectively a credit card that they can use without having to personally guarantee that card or wade through complex processes to finally get a charge card. It’s geared initially towards smaller companies, but Dubugras expects those startups to grow up with it over time — and that Brex is already picking up larger clients. The company, coming out of stealth, said it has raised a total of $57 million from investors including the Y Combinator Continuity fund, Peter Thiel, Max Levchin, Yuri Milner, financial services VC Ribbit Capital and former Visa CEO Carl Pascarella. Y Combinator Continuity fund partner Anu Hariharan and Ribbit Capital managing partner Meyer Malka are joining the company’s board of directors.
“We want to be the best corporate credit card fro startups,” Dubugras said. “We’re don’t require a personal guarantee or deposit, and we can give people a credit limit that’s as much as ten times higher. We can get you a virtual credit card in literally 5 minutes, versus traditional banks, in which you’d have to personally guarantee the card and get a low limit and it takes weeks to approve.”
Startup executives go to Brex’s website, sign up, and then put in their bank account info. They then use that banking information to underwrite the card, with the idea being that the service can see that the start has raised millions of dollars and doesn’t have the kind of wild liability that those banks think they might have given how young they are. Once the application is done, companies get a virtual credit card, and they can start divvying up virtual cards with custom limits for their employees. The company says it has attracted more than 1,000 customers and is now opening up globally.
The cards are designed to have better spending limits, and also offer company executives more granular ways to assign those limits to employees. The cards have to be paid off by the end of the month, and the rolling balance for those cards is dependent on the amount of capital each startup has available. The total limit available is, instead, a percentage of the company’s cash balance available. So rather than having to go through the process of getting approved for a card, the service can look at how much money is in a startup’s bank account and adjust the spending limit for all those cards accordingly.
Another aspect is automating the whole expense and auditing process. Rather than just going through typical applications like Concur and inputting specifics, card users can send a text message of a receipt through Brex associated with each transaction. Users will just get a text message about a charge — like a cup of coffee for a meeting with a potential business partner — and reply to that text with a message of the receipt to log the whole process. Everything is geared toward simplifying the whole process for startups that have an opportunity to be a bit more nimble and aren’t bogged down with complex layers of enterprise software. Each expense is looped in with a vendor, so executives can see the total amount of spending that’s happening at that scale.
The ability to have those dynamic spending limits is just one example of what Dubugras hopes will make Brex competitive. Rather than slotting into existing systems, Brex has an opportunity to recreate the back-end processes that power those cards, which larger institutions might not be able to do as they’ve hit a massive scale and get less and less agile. Dubugras and Franceschi previously worked on and sold Pagar.me, a Brazilian payments processor, where they saw firsthand the complex nature of working with global financial institutions — and some of the holes they could exploit.
“It’s not like we’re two geniuses that came up with a lot of things that no one came up with,” Dubugras said. “Implementing them with third-party processors is hard, but we didn’t have any of [those integrations], so we can rebuild them from scratch. It’s hard for banks to throw money at a problem and build those tools. We’ve rebuilt the way that these things work internally — they’d have to change fundamentally how the system works.”
While there are plenty of startups looking to quickly offer virtual cards, like Revolut’s disposable virtual card service, Brex aims to be what’s effectively a corporate card — just one that’s easier to get and works basically the same as a normal card. Users still have to pay off the balance at the end of the month, but the idea there is that Brex can de-risk itself by doing that while still offering startups a way to get a card with a high limit to start paying for the services or tools they need to get started.
Talentry, a startup based in Munich that has developed a “social recruitment and marketing platform,” has closed €6 million in Series A funding.
Leading the round is Nauta Capital, the pan-European VC focused on SaaS, with participation from Rocket Internet’s GFC, Allgeier SE, and number of angel investors. I also understand that GFC previously backed Talentry’s €2 million seed round.
Relatively low-key to date, Talentry offers a SaaS to enable companies to utilise their employees’ social networks to help with recruitment. The platform powers employee referral and employee advocacy programs, including the ability for employees to easily share job openings and corporate content. The premise is that, although social recruitment is as old as recruitment itself, simply having employees post job openings on various social channels alone, is no longer going to cut it.
Instead, explained Talentry CEO Carl Hoffmann on a call last week, social recruitment combined with content marketing works much more effectively. For example, employees could share a company blog post about an upcoming product, which would also include relevant job postings. The landing pages generated by Talentry are personalised, too, so that the employee who shared the content is clearly signposted and the recruitment-related content can be further adapted for their audience accordingly.
More broadly, Hoffmann says that fierce competition for talent is changing the way companies recruit. This is seeing a marketing strategy comparable to winning customers. “To do this successfully — attracting candidates, building talent pools and nurturing them long-term — companies need the right technology,” he explains.
Talentry says it serves over 150 clients across all industries, including Henkel, Swiss Post, Vodafone, Axel Springer, and Universal Music Group. Meanwhile, the new funding will be used to develop further product features, such as a more powerful CRM for tracking recruitment leads, and to grow the team. Hoffmann says the company also plans to launch in international markets, including the U.K. and U.S., adding to the German-speaking countries it currently targets.
Guillem Sagué, who led the investment at Nauta Capital, says: “At Nauta we invest in capital-efficient global disruptors in the software space, and we believe Talentry has the potential to create a new software category focused on building and nurturing relationships with talented potential candidates at scale. As this is the first investment we made in Germany from our current €155 million fund this investment is the first building block of our German operations”.
Everyone at the office needs lunch (or in some cases dinner) — but for salespeople trying to entice a potential lead or convince an architect to pick up their project, they might need to use a free meal as a bit of a lure to get them in the room to make that pitch.
It was a problem that Stefania Mallett, CEO of ezCater, and co-founder Briscoe Rodgers ran into plenty of times — and decided to turn it into a full company. ezCater gives all those sales people, or financial advisors, or anything along those lines a way to quickly set up a catered meal and have an expectation that it’ll work without any kinds of bottlenecks all across the country. The company said it has raised a new round of funding led by Wellington Management Company, with existing investors ICONIQ capital and Insight Venture Partners also participating among others. This round brings ezCater’s total funding to around $170 million, at a valuation of $700 million, according to a source familiar with the matter.
“It’s a high stakes event, you’re ordering food for a sales call, you only get an hour with that customer,” Mallet said. ” When you’re ordering food for a company meeting, you have 1.5 hours. You have to make this work on time and make sure if there are any problems that you can jump in with really high class customer service. More than half of our staff are in customer service and we have a tremendous amount of automation that makes the customer service be effective for us. But without that, you’re not gonna get very far.”
Like the rest of the companies trying to woo offices looking for catered meals, ezCater looks to collect as much data as it can. That could be an analog situation, like one in its own office where employees tried to find the best setup to remove as many bottlenecks as possible for lunch on a Thursday — even timing the process with stopwatches. As more information comes in, like reviews or critiques of the whole process, ezCater can turn around and use that to adapt to any changing environments or office cultures and figure out how to provide the best experience.
Mallett says the company has more than 60,000 restaurants signed up to the service, and the hope with this new round of funding is to continue to expand that — especially as the company eyes growth abroad. While they’re able to sign on plenty of chains, ezCater also has to hit the ground to find high quality local restaurants and make sure they do a quality check on them before they end up on the catering platform. That certainly requires a lot of manpower, and Mallett said more than half of the company is centered around customer service. That, too, is still a pretty analog process even as the company looks to put out more of its tools and automate all these processes.
“We need to reach out to [independent restaurants] one at a time, and our marketing department has done a good job of turning the phones around,” Mallet said. “We still don’t accept many of the inbounds, we’re looking for people whom we believe can deliver quality. We curate for reliability, not for a price point or a type of food. Another thing we have to offer them is a catering management suite that allows them to handle all the orders we send them, as well as other orders they might get through other channels.”
Still, there’s plenty of activity when it comes to catering. Startups like ZeroCater are raising money to expand beyond just daily lunch orders and own other parts of the office dining experience, like providing snacks. Delivery apps like DoorDash too might see the opportunity for catering as a significant business model. But Mallet’s argument is that those organizations are either still pretty local, or they won’t have the kind of restaurant overlap that ezCater has as they look to capture business from larger clients that need to put together a quick meal for the office. ezCater, too, offers options for daily lunches or other meals with a white glove service.
“We can’t expand into the consumer business very fast, and they can’t expand into catering very fast,” Mallet said. “Restaurants have an internal flow that makes sense for being a restaurant, and in many restaurants if you fill in with a catering order for 25 people, the kitchen wants to kill you. They don’t even have space in the storage room for the big trays. If you take all the restaurants that DoorDash or GrubHub or any of the guys who are doing the individual orders, and you take all our restaurants, and you map them on top of each other, there will be a small amount of overlap.”
Veriff, the Estonian startup that wants to become something akin to the ‘Stripe for identity’, has raised $7.7 million in Series A funding.
Leading the round is Mosaic Ventures, joining an impressive list of backers that include Taavet Hinrikus, Ashton Kutcher, Paul Buchheit, Elad Gil, SV Angel, ACE Ventures, and Superangel. Mosaic’s Simon Levene, and Hinrikus, who co-founded and is chairman of TransferWise, have joined the Veriff board.
Founded by 23 year old Kaarel Kotkas — who is now on his third startup and has garnered quite a bit of publicity in his home country — Veriff has developed a SaaS and underlying technology to make it easy for companies, such as banks and fintechs, to easily verify a person’s identity online. In fact, Kotkas previously spent some time at TransferWise, where he solidified the idea, before founding the startup and going through Silicon Valley’s Y Combinator as part of its W18 batch.
Offered as a developer-friendly API — hence the Stripe comparison — Veriff says its solution can be implemented “in minutes”. It costs €49 per month, plus €2 per verification.
The aim, says Kotkas, is to make premium identity verification available to smaller companies and not just large corporations that can easily absorb high integration costs of incumbent offerings. However, what really sets Veriff apart from a number of competitors is its use of live video to verify you are who you say you are.
“Veriff has created an online identity verification service that is more secure than physical face to face verification and now we’re making it available to everyone,” he tells me. “We’re the first ones that understood that pictures never do them justice. It’s all about building up trust online and our service uses a unique video based approach to make sure the verification is done in real-time and voluntarily by the right person”.
Off the record, Kotkas divulged some of Veriff’s “secret sauce,” which — understandably — he wants to keep secret. The startup uses hundreds of data points collected through analysing the live video feed, including frame by frame, and from a user’s device and network. It then uses machine learning to sift through this data and, individually and in aggregate, spot patterns and anomalies that might otherwise be missed by a human.
“We know that pictures never do the justice so instead of analysing only pictures we record everything as a video and analyse frames from the video. Our fraud prevention has been built up combining device information, user behaviour, document validation & face comparison,” he says.
As a result of its video-based approach, Kotkas claims that Veriff has the highest conversion rate on the market, without compromising security. “We’ve created an online verification flow that is all about building up trust, so honest users can go through the flow conveniently, but fraudsters will drop”.
To that end, Kotkas says Veriff remains at least two steps ahead of fraudsters. Then, after an uncomfortably long pause and following prodding from me, he attempts to explain how the startup comes up with new techniques and tests them in the wild, again without disclosing too much information. “It’s a good question but a hard one to answer!” he says knowingly.
Meanwhile, Veriff says it has over 40 paying customers globally. They include financial enterprises, marketplaces, sharing economy companies and e-commerce sites. The company has its development and customer service team based in Tallinn, Estonia, and will soon move sales and marketing operations to the U.S.
SurveyMonkey can file confidentially with the SEC through the JOBS act signed in 2012, which allows those companies to test the waters before they formally release an S-1. It’s increasingly popular as it allows the companies an opportunity to get a gut check while investors appear to have at least some of an appetite for fresh IPOs, while not having to spill publicly the entire financial guts of the company. SurveyMonkey is also the latest of a wave of enterprise IPOs in the past six months or so. There’s still plenty that can change given that it’s a confidential filing. We won’t know how much money the company wants to raise, what its business even looks like or any of the other granular details of the IPO.
SurveyMonkey gives businesses a way to submit surveys to their customers and try to more seamlessly gather feedback about products, customer service or anything else that a company might be able to measure based on those responses. In an era where tracking all of that data becomes increasingly important thanks to more robust predictive tools and considerably more processing power to make those projections, SurveyMonkey’s data is likely even more valuable than it was when it raised funding in 2014. SurveyMonkey on its own end, too, might be easily able to understand how people are actually rating the companies they work with.
Dropbox and DocuSign are the most recent successful IPOs, both valued at more than $10 billion at this point. But there are companies like Zuora, which went public in April, zScalar and others that have seen significant success after they went public. That means there’s plenty of demand for companies that are about to go public, which is where the saying of the “IPO window being open” comes from.
