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Aptiv takes its self-driving car ambitions (and tech) to China

Posted by on Apr 17, 2019 in Aptiv, Automation, Automotive, automotive industry, boston, China, Co-founder, Delphi, Emerging-Technologies, Karl Iagnemma, Las Vegas, Lyft, manufacturing, NuTonomy, pittsburgh, president, Robotics, self driving cars, shanghai, Singapore, transport, Transportation, United States | 0 comments

Aptiv, the U.S. auto supplier and self-driving software company, is opening an autonomous mobility center in Shanghai to focus on the development and eventual deployment of its technology on public roads.

The expansion marks the fifth market where Aptiv has set up R&D, testing or operational facilities. Aptiv has autonomous driving operations in Boston, Las Vegas, Pittsburgh and Singapore. But China is perhaps its most ambitious endeavor yet.

Aptiv has never had any AV operations in China, but it does have a long history in the country including manufacturing and engineering facilities. The company, in its earlier forms as Delphi and Delco has been in China since 1993 — experience that will be invaluable as it tries to bring its autonomous vehicle efforts into a new market, Aptiv Autonomous Mobility President Karl Iagnemma told TechCrunch in a recent interview.

“The long-term opportunity in China is off the charts,” Iagnemma said, noting a recent McKinsey study that claims the country will host two-thirds of the world’s autonomous driven miles by 2040 and be trillion-dollar mobility service opportunity.

“For Aptiv, it’s always been a question of not ‘if’, but when we’re going to enter the Chinese market,” he added.

Aptiv will have self-driving cars testing on public roads by the second half of 2019.

“Our experience in other markets has shown that in this industry, you learn by doing,” Iagnemma explained.

And it’s remark that Iagnemma can stand by. Iagnemma is the co-founder of self-driving car startup nuTonomy, one of the first to launch a robotaxi service in 2016 in Singapore that the public—along with human safety drivers — could use.

NuTonomy was acquired by Delphi in 2017 for $450 million. NuTonomy became part of Aptiv after its spinoff from Delphi was complete.

Aptiv is also in discussions with potential partners for mapping and commercial deployment of Aptiv’s vehicles in China.

Some of those partnerships will likely mimic the types of relationships Aptiv has created here in the U.S., notably with Lyft . Aptiv’s self-driving vehicles operate on Lyft’s ride-hailing platform in Las Vegas and have provided more than 40,000 paid autonomous rides in Las Vegas via the Lyft app.

Aptiv will also have to create new kinds of partnerships unlike those it has in the U.S. due to restrictions and rules in China around data collection, intellectual property and creating high resolution map data.


Source: The Tech Crunch

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Polis, the door-to-door marketer, raises another $2.5 million

Posted by on Feb 26, 2019 in Alexis Ohanian, api, boston, Business, digital advertising, distribution, garry tan, initialized capital, Marketing, NRG Energy, polis, Recent Funding, sales, Semil Shah, Startups, targeted advertising, TC, texas | 0 comments

Polis founder Kendall Tucker began her professional life as a campaign organizer in local Democratic politics, but — seeing an opportunity in her one-on-one conversations with everyday folks — has built a business taking that shoe leather approach to political campaigns to the business world.

Now the company she founded to test her thesis that Americans would welcome back the return of the door-to-door salesperson three years ago is $2.5 million richer thanks to a new round of financing from Initialized Capital (the fund founded by Garry Tan and Reddit co-founder Alexis Ohanian) and Semil Shah’s Haystack.vc.

The Boston-based company currently straddles the line between political organizing tool and new marketing platform — a situation that even its founder admits is tenuous at the moment.

That tension is only exacerbated by the fact that the company is coming off one of its biggest political campaign seasons. Helping to power the get-out-the-vote initiative for Senatorial candidate Beto O’Rourke in Texas, Polis’ software managed the campaign’s outreach effort to 3 million voters across the state.

However, politically focused software and services businesses are risky. Earlier this year the Sean Parker-backed Brigade shut down and there are rumblings that other startups targeting political action may follow suit.

“Essentially, we got really excited about going into the corporate space because online has gotten so nasty,” says Tucker. “And, at the end of the day, digital advertising isn’t as effective as it once was.”

Customer acquisition costs in the digital ad space are rising. For companies like NRG Energy and Inspire Energy (both Polis clients), the cost of acquisitions online can be as much as $300 per person.

Polis helps identify which doors for salespeople to target and works with companies to identify the scripts that are most persuasive for consumers, according to Tucker. The company also monitors for sales success and helps manage the process so customers aren’t getting too many house calls from persistent sales people.

“We do everything through the conversation at the door,” says Tucker. “We do targeting and we do script curation (everything from what script do you use and when do you branch out of scripts) and we have an open API so they can push that out and they run with it through the rest of their marketing.”


Source: The Tech Crunch

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How students are founding, funding and joining startups

Posted by on Feb 6, 2019 in Accel, Accel Scholars, Alumni Ventures Group, Amanda Bradford, Artificial Intelligence, Bill Gates, boston, coinbase, Column, CRM, CrunchBase, distributed systems, Dorm Room Fund, Drew Houston, Dropbox, editor-in-chief, Energy, entrepreneurship, Facebook, Finance, FiscalNote, Forward, General Catalyst, Graduate Fund, greylock, harvard, Jeremy Liew, Kleiner Perkins, lightspeed, Mark Zuckerberg, MIT, Pear Ventures, peter boyce, Pinterest, Private Equity, Series A, stanford, Start-Up Chile, Startup company, Startups, TC, TechStars, True Ventures, Ubiquity6, uc-berkeley, United States, upenn, Venture Capital, venture capital Firms, Warby Parker, Y Combinator | 0 comments

There has never been a better time to start, join or fund a startup as a student. 

Young founders who want to start companies while still in school have an increasing number of resources to tap into that exist just for them. Students that want to learn how to build companies can apply to an increasing number of fast-track programs that allow them to gain valuable early stage operating experience. The energy around student entrepreneurship today is incredible. I’ve been immersed in this community as an investor and adviser for some time now, and to say the least, I’m continually blown away by what the next generation of innovators are dreaming up (from Analytical Space’s global data relay service for satellites to Brooklinen’s reinvention of the luxury bed).

Bill Gates in 1973

First, let’s look at student founders and why they’re important. Student entrepreneurs have long been an important foundation of the startup ecosystem. Many students wrestle with how best to learn while in school —some students learn best through lectures, while more entrepreneurial students like author Julian Docks find it best to leave the classroom altogether and build a business instead.

Indeed, some of our most iconic founders are Microsoft’s Bill Gates and Facebook’s Mark Zuckerberg, both student entrepreneurs who launched their startups at Harvard and then dropped out to build their companies into major tech giants. A sample of the current generation of marquee companies founded on college campuses include Snap at Stanford ($29B valuation at IPO), Warby Parker at Wharton (~$2B valuation), Rent The Runway at HBS (~$1B valuation), and Brex at Stanford (~$1B valuation).

Some of today’s most celebrated tech leaders built their first ventures while in school — even if some student startups fail, the critical first-time founder experience is an invaluable education in how to build great companies. Perhaps the best example of this that I could find is Drew Houston at Dropbox (~$9B valuation at IPO), who previously founded an edtech startup at MIT that, in his words, provided a: “great introduction to the wild world of starting companies.”

Student founders are everywhere, but the highest concentration of venture-backed student founders can be found at just 5 universities. Based on venture fund portfolio data from the last six years, Harvard, Stanford, MIT, UPenn, and UC Berkeley have produced the highest number of student-founded companies that went on to raise $1 million or more in seed capital. Some prospective students will even enroll in a university specifically for its reputation of churning out great entrepreneurs. This is not to say that great companies are not being built out of other universities, nor does it mean students can’t find resources outside a select number of schools. As you can see later in this essay, there are a number of new ways students all around the country can tap into the startup ecosystem. For further reading, PitchBook produces an excellent report each year that tracks where all entrepreneurs earned their undergraduate degrees.

Student founders have a number of new media resources to turn to. New email newsletters focused on student entrepreneurship like Justine and Olivia Moore’s Accelerated and Kyle Robertson’s StartU offer new channels for young founders to reach large audiences. Justine and Olivia, the minds behind Accelerated, have a lot of street cred— they launched Stanford’s on-campus incubator Cardinal Ventures before landing as investors at CRV.

StartU goes above and beyond to be a resource to founders they profile by helping to connect them with investors (they’re active at 12 universities), and run a podcast hosted by their Editor-in-Chief Johnny Hammond that is top notch. My bet is that traditional media will point a larger spotlight at student entrepreneurship going forward.

New pools of capital are also available that are specifically for student founders. There are four categories that I call special attention to:

  • University-affiliated accelerator programs
  • University-affiliated angel networks
  • Professional venture funds investing at specific universities
  • Professional venture funds investing through student scouts

While it is difficult to estimate exactly how much capital has been deployed by each, there is no denying that there has been an explosion in the number of programs that address the pre-seed phase. A sample of the programs available at the Top 5 universities listed above are in the graphic below — listing every resource at every university would be difficult as there are so many.

One alumni-centric fund to highlight is the Alumni Ventures Group, which pools LP capital from alumni at specific universities, then launches individual venture funds that invest in founders connected to those universities (e.g. students, alumni, professors, etc.). Through this model, they’ve deployed more than $200M per year! Another highlight has been student scout programs — which vary in the degree of autonomy and capital invested — but essentially empower students to identify and fund high-potential student-founded companies for their parent venture funds. On campuses with a large concentration of student founders, it is not uncommon to find student scouts from as many as 12 different venture funds actively sourcing deals (as is made clear from David Tao’s analysis at UC Berkeley).

Investment Team at Rough Draft Ventures

In my opinion, the two institutions that have the most expansive line of sight into the student entrepreneurship landscape are First Round’s Dorm Room Fund and General Catalyst’s Rough Draft VenturesSince 2012, these two funds have operated a nationwide network of student scouts that have invested $20K — $25K checks into companies founded by student entrepreneurs at 40+ universities. “Scout” is a loose term and doesn’t do it justice — the student investors at these two funds are almost entirely autonomous, have built their own platform services to support portfolio companies, and have launched programs to incubate companies built by female founders and founders of color. Another student-run fund worth noting that has reach beyond a single region is Contrary Capital, which raised $2.2M last year. They do a particularly great job of reaching founders at a diverse set of schools — their network of student scouts are active at 45 universities and have spoken with 3,000 founders per year since getting started. Contrary is also testing out what they describe as a “YC for university-based founders”. In their first cohort, 100% of their companies raised a pre-seed round after Contrary’s demo day. Another even more recently launched organization is The MBA Fund, which caters to founders from the business schools at Harvard, Wharton, and Stanford. While super exciting, these two funds only launched very recently and manage portfolios that are not large enough for analysis just yet.

Over the last few months, I’ve collected and cross-referenced publicly available data from both Dorm Room Fund and Rough Draft Ventures to assess the state of student entrepreneurship in the United States. Companies were pulled from each fund’s portfolio page, then checked against Crunchbase for amount raised, accelerator participation, and other metrics. If you’d like to sift through the data yourself, feel free to ping me — my email can be found at the end of this article. To be clear, this does not represent the full scope of investment activity at either fund — many companies in the portfolios of both funds remain confidential and unlisted for good reasons (e.g. startups working in stealth). In fact, the In addition, data for early stage companies is notoriously variable in quality, even with Crunchbase. You should read these insights as directional only, given the debatable confidence interval. Still, the data is still interesting and give good indicators for the health of student entrepreneurship today.

Dorm Room Fund and Rough Draft Ventures have invested in 230+ student-founded companies that have gone on to raise nearly $1 billion in follow on capital. These funds have invested in a diverse range of companies, from govtech (e.g. mark43, raised $77M+ and FiscalNote, raised $50M+) to space tech (e.g. Capella Space, raised ~$34M). Several portfolio companies have had successful exits, such as crypto startup Distributed Systems (acquired by Coinbase) and social networking startup tbh (acquired by Facebook). While it is too early to evaluate the success of these funds on a returns basis (both were launched just 6 years ago), we can get a sense of success by evaluating the rates by which portfolio companies raise additional capital. Taken together, 34% of DRF and RDV companies in our data set have raised $1 million or more in seed capital. For a rough comparison, CB Insights cites that 40% of YC companies and 48% of Techstars companies successfully raise follow on capital (defined as anything above $750K). Certainly within the ballpark!

Source: Crunchbase

Dorm Room Fund and Rough Draft Ventures companies in our data set have an 11–12% rate of survivorship to Series A. As a benchmark, a previous partner at Y Combinator shared that 20% of their accelerator companies raise Series A capital (YC declined to share the official figure, but it’s likely a stat that is increasing given their new Series A support programs. For further reading, check out YC’s reflection on what they’ve learned about helping their companies raise Series A funding). In any case, DRF and RDV’s numbers should be taken with a grain of salt, as the average age of their portfolio companies is very low and raising Series A rounds generally takes time. Ultimately, it is clear that DRF and RDV are active in the earlier (and riskier) phases of the startup journey.

Dorm Room Fund and Rough Draft Ventures send 18–25% of their portfolio companies to Y Combinator or Techstars. Given YC’s 1.5% acceptance rate as reported in Fortune, this is quite significant! Internally, these two funds offer founders an opportunity to participate in mock interviews with YC and Techstars alumni, as well as tap into their communities for peer support (e.g. advice on pitch decks and application content). As a result, Dorm Room Fund and Rough Draft Ventures regularly send cohorts of founders to these prestigious accelerator programs. Based on our data set, 17–20% of DRF and RDV companies that attend one of these accelerators end up raising Series A venture financing.

Source: Crunchbase

Dorm Room Fund and Rough Draft Ventures don’t invest in the same companies. When we take a deeper look at one specific ecosystem where these two funds have been equally active over the last several years — Boston — we actually see that the degree of investment overlap for companies that have raised $1M+ seed rounds sits at 26%. This suggests that these funds are either a) seeing different dealflow or b) have widely different investment decision-making.

Source: Crunchbase

Dorm Room Fund and Rough Draft Ventures should not just be measured by a returns-basis today, as it’s too early. I hypothesize that DRF and RDV are actually encouraging more entrepreneurial activity in the ecosystem (more students decide to start companies while in school) as well as improving long-term founder outcomes amongst students they touch (portfolio founders build bigger and more successful companies later in their careers). As more students start companies, there’s likely a positive feedback loop where there’s increasing peer pressure to start a company or lean on friends for founder support (e.g. feedback, advice, etc).Both of these subjects warrant additional study, but it’s likely too early to conduct these analyses today.

Dorm Room Fund and Rough Draft Ventures have impressive alumni that you will want to track. 1 in 4 alumni partners are founders, and 29% of these founder alumni have raised $1M+ seed rounds for their companies. These include Anjney Midha’s augmented reality startup Ubiquity6 (raised $37M+), Shubham Goel’s investor-focused CRM startup Affinity (raised $13M+), Bruno Faviero’s AI security software startup Synapse (raised $6M+), Amanda Bradford’s dating app The League (raised $2M+), and Dillon Chen’s blockchain startup Commonwealth Labs (raised $1.7M). It makes sense to me that alumni from these communities that decide to start companies have an advantage over their peers — they know what good companies look like and they can tap into powerful networks of young talent / experienced investors.

Beyond Dorm Room Fund and Rough Draft Ventures, some venture capital firms focus on incubation for student-founded startups. Credit should first be given to Lightspeed for producing the amazing Summer Fellows bootcamp experience for promising student founders — after all, Pinterest was built there! Jeremy Liew gives a good overview of the program through his sit-down interview with Afterbox’s Zack Banack. Based on a study they conducted last year, 40% of Lightspeed Summer Fellows alumni are currently active founders. Pear Ventures also has an impressive summer incubator program where 85% of its companies successfully complete a fundraise. Index Ventures is the latest to build an incubator program for student founders, and even accepts founders who want to work on an idea part-time while completing a summer internship.

Let’s now look at students who want to join a startup before founding one. Venture funds have historically looked to tap students for talent, and are expanding the engagement lifecycle. The longest running programs include Kleiner Perkins’<strong class=”m_1196721721246259147gmail-markup–strong m_1196721721246259147gmail-markup–p-strong”> KP Fellows and True Ventures’ TEC Fellows, which focus on placing the next generation’s most promising product managers, engineers, and designers into the portfolio companies of their parent venture funds.

There’s also the secretive Greylock X, a referral-based hand-picked group of the best student engineers in Silicon Valley (among their impressive alumni are founders like Yasyf Mohamedali and Joe Kahn, the folks behind First Round-backed Karuna Health). As these programs have matured, these firms have recognized the long-run value of engaging the alumni of their programs.

More and more alumni are “coming back” to the parent funds as entrepreneurs, like KP Fellow Dylan Field of Figma (and is also hosting a KP Fellow, closing a full circle loop!). Based on their latest data, 10% of KP Fellows alumni are founders — that’s a lot given the fact that their community has grown to 500! This helps explain why Kleiner Perkins has created a structured path to receive $100K in seed funding to companies founded by KP Fellow alumni. It looks like venture funds are beginning to invest in student programs as part of their larger platform strategy, which can have a real impact over the long term (for further reading, see this analysis of platform strategy outcomes by USV’s Bethany Crystal).

KP Fellows in San Francisco

Venture funds are doubling down on student talent engagement — in just the last 18 months, 4 funds have launched student programs. It’s encouraging to see new funds follow in the footsteps of First Round, General Catalyst, Kleiner Perkins, Greylock, and Lightspeed. In 2017, Accel launched their Accel Scholars program to engage top talent at UC Berkeley and Stanford. In 2018, we saw 8VC Fellows, NEA Next, and Floodgate Insiders all launch, targeting elite universities outside of Silicon Valley. Y Combinator implemented Early Decision, which allows student founders to apply one batch early to help with academic scheduling. Most recently, at the start of 2019, First Round launched the Graduate Fund (staffed by Dorm Room Fund alumni) to invest in founders who are recent graduates or young alumni.

Given more time, I’d love to study the rates by which student founders start another company following investments from student scout funds, as well as whether or not they’re more successful in those ventures. In any case, this is an escalation in the number of venture funds that have started to get serious about engaging students — both for talent and dealflow.

Student entrepreneurship 2.0 is here. There are more structured paths to success for students interested in starting or joining a startup. Founders have more opportunities to garner press, seek advice, raise capital, and more. Venture funds are increasingly leveraging students to help improve the three F’s — finding, funding, and fixing. In my personal view, I believe it is becoming more and more important for venture funds to gain mindshare amongst the next generation of founders and operators early, while still in school.

I can’t wait to see what’s next for student entrepreneurship in 2019. If you’re interested in digging in deeper (I’m human — I’m sure I haven’t covered everything related to student entrepreneurship here) or learning more about how you can start or join a startup while still in school, shoot me a note at sxu@dormroomfund.comA massive thanks to Phin Barnes, Rei Wang, Chauncey Hamilton, Peter Boyce, Natalie Bartlett, Denali Tietjen, Eric Tarczynski, Will Robbins, Jasmine Kriston, Alicia Lau, Johnny Hammond, Bruno Faviero, Athena Kan, Shohini Gupta, Alex Immerman, Albert Dong, Phillip Hua-Bon-Hoa, and Trevor Sookraj for your incredible encouragement, support, and insight during the writing of this essay.


Source: The Tech Crunch

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Whim, the all-in-one mobility app for ride sharing, public transit, and rentals is coming to the US

Posted by on Jan 24, 2019 in antwerp, as-a-service, Asia, austin, boston, car rentals, chicago, Dallas, Gett, helsinki, hertz, miami, North America, public transportation, Singapore, TC, transport, United Kingdom, United States, via, vienna | 0 comments

MaaS Global, the company behind the all-in-one mobility app Whim, which offers a subscription service for public transportation, ride-sharing, bike rentals, scooter rentals, taxis, or car rentals will be making its U.S. debut later this year.

The company will choose its American launch city from Austin, Boston, Chicago, Dallas, and Miami, according to Sampo Hietanan, the company’s chief executive.

The Whim app is currently available in Antwerp, Birmingham, UK, Helsinki, and Vienna, according to Hietanan, and offers a range of subscription options. The top of the line version is a EUR500 per month all-inclusive package giving users unlimited access to ride hailing, bike and car rentals, and access to public transportation.

“Cars take 70 percent of the market and it’s used 4 percent of the time so you’re paying for the optional capacity,” says Hietanan. Using Whim, which, at the high end costs about as much as a car in Europe, users can get all of the optionality without paying for the unused capacity. It should ideally reduce transportation costs and cut down on emissions, if Hietanan’s claims are accurate. 

The Helsinki-based company uses APIs to connect with the back end of a number of service providers. For car rentals, it’s working with businesses like Hertz, Enterprise, and EuropeCar; for ride share, the company has linked with Gett and local European taxi companies, according to Hietanan.

Users have already booked 3 million trips through the company’s app since its launch and the company is continuing to expand not just in North America, but in Asia as well. There are plans in the works for the company to launch operations in Singapore.

Giving consumers more options for transit through a single gateway could reduce demand for vehicles, but some analysts argue that it won’t do much to alleviate congestion on roads. Consumers, they argue, will choose the convenience of rideshare over mass transit and could actually increase.

As Richard Rowson, a mobility consultant from the UK noted in this post:

MaaS doesn’t implicitly mean a net decrease nor increase in the number of road vehicle miles. The changes are complex, but in balance look likely to result in an increase.

Factors such as migration from private car to public transport should cause a reduction, but migration from train and bus, to private hire and smaller demand responsive buses will cause an increase. Other factors such as ‘positioning’ movements as ‘on demand’ vehicles are positioned to exploit demand also create journeys.

Smart journey planning and navigation systems should make better use of available road capacity, such as identifying alternative routes – but at the expense of migrating through traffic to local access roads.

There is the potential that having a single point of access to mobility may actually help cities push riders to favor public transportation by offering a window into amount of time using each service would take and showing users the fastest route.

Last August the company said it had raised a EUR9 million round from undisclosed investors. It had previously received capital from Toyota Financial Services and its insurance partner Aioi Nissay Dowa Insurance.

 


Source: The Tech Crunch

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Apple plans major US expansion including a new $1 billion campus in Austin

Posted by on Dec 13, 2018 in Apple, apple inc, apple store, austin, boston, boulder, Colorado, computing, cupertino, Electronic Arts, Energy, Governor, iPhone, Los Angeles, Louisiana, New York, Oregon, pittsburgh, Portland, san diego, Seattle, Steve Jobs, TC, Technology, texas, United States | 0 comments

Apple has announced a major expansion that will see it open a new campus in North Austin and open new offices in Seattle, San Diego and Los Angeles as it bids to increase its workforce in the U.S. The firm said it intends also to significantly expand its presence in Pittsburgh, New York and Boulder, Colorado over the next three years.

The Austin campus alone will cost the company $1 billion, but Apple said that the 133-acre space will generate an initial 5,000 jobs across a broad range of roles with the potential to add 10,000 more. The company claims to have 6,200 employees in Austin — its largest enclave outside of Cupertino — and it said that the addition of these new roles will make it the largest private employer in the city.

Beyond a lot of new faces, the new campus will include more than 50 acres of open space and — as is standard with Apple’s operations these days — it will run entirely on renewable energy.

Apple already has 6,200 employees in Austin, but its new campus could add up to 15,000 more

The investment was lauded by Texas Governor Greg Abbott.

“Their decision to expand operations in our state is a testament to the high-quality workforce and unmatched economic environment that Texas offers. I thank Apple for this tremendous investment in Texas, and I look forward to building upon our strong partnership to create an even brighter future for the Lone Star State,” he said in a statement shared by Apple.

But Austin isn’t the only focal point for Apple growth in the U.S.

Outside of the Austin development, the iPhone-maker plans to expand to over 1,000 staff Seattle, San Diego and LA over the next three years, while adding “hundreds” of staff in Pittsburgh, New York, Boulder, Boston and Portland, Oregon.

More broadly, Apple said it added 6,000 jobs to its U.S. workforce this year to take its total in the country to 90,000. It said it remains on track to create 20,000 new jobs in the U.S. by 2023.


Source: The Tech Crunch

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Starry launches pilot program with Boston Housing Authority to expand affordable internet access

Posted by on Aug 9, 2018 in boston, isp, starry, Startups | 0 comments

Internet service provider Starry announced today the launch of its Starry Connect program with a pilot through Boston Housing Authority (BHA) to help provide free access to internet for residents living in one of the city’s public housing apartment complexes.

The Boston-based startup launched in 2016 with a plan to provide internet access through a spoke-and-wheel system of transmitters and access points. This point-to-multipoint system uses a phased array laser on top of a city building to send a 5G signal out that users can connect to via Starry Points that can be installed at a window or personal roof.

“Access to high-speed broadband is critical for education, communication, and personal and professional development, and yet today, many people still lack access to a basic, affordable, and reliable internet connection,” said Chet Kanojia, co-founder and CEO, in a statement. “That’s why we’re excited to partner with the Boston Housing Authority to devise creative solutions to help get more of their residents online and engaged with the critical services they need.”

With the program Starry launched today, residents of the public housing apartment building will be able to access free Wi-Fi in the building’s common area, hallways and new computer lab.

Virginia Lam Abrams, Starry senior vice president of communications and government relations, told TechCrunch that some residents may also be able to access the signal in their rooms, but the primary focus for this installation is to provide common area access for these primarily elderly and disabled residents.

Because Starry Connect’s pilot launch in the BHA building is part of the Boston public housing system, residents will receive free connection, but Starry also has plans to provide low-cost pricing options for residents living in affordable housing, as well.

The program has no set end date, says Abrams, but the company has plans to check in with residents in a few months to see where the program is succeeding and where it can be improved. Following this initial pilot launch, Abrams says that Starry has hopes to expand into other BHA communities, as well as public and affordable housing in other U.S. cities.

Since its launch, the startup has expanded into Los Angeles and Washington, D.C., and following a $100,000 million funding round it closed this July, has plans to scale and expand into more cities in the coming year, including Houston, Chicago, San Francisco and Portland, Ore.


Source: The Tech Crunch

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Boston-area startups are on pace to overtake NYC venture totals

Posted by on Aug 4, 2018 in Amazon, Atlas Venture, boston, Carbon Black, cargurus, Column, CRV, Demandware, enterprise software, HubSpot, Kensho, New York City, openview, PillPack, Rubius Therapeutics, San Francisco, Silicon Valley, Startups, Venture Capital, Wayfair | 0 comments

Boston has regained its longstanding place as the second-largest U.S. startup funding hub.

After years of trailing New York City in total annual venture investment, Massachusetts is taking the lead in 2018. Venture investment in the Boston metro area hit $5.2 billion so far this year, on track to be the highest annual total in years.

The Massachusetts numbers year-to-date are about 15 percent higher than the New York City total. That puts Boston’s biotech-heavy venture haul apparently second only to Silicon Valley among domestic locales thus far this year. And for New England VCs, the latest numbers also confirm already well-ingrained opinions about the superior talents of local entrepreneurs.

“Boston often gets dismissed as a has-been startup city. But the successes are often overlooked and don’t get the same attention as less successful, but more hypey companies in San Francisco,” Blake Bartlett, a partner at Boston-based venture firm OpenView, told Crunchbase News. He points to local success stories like online prescription service PillPack, which Amazon just snapped up for $1 billion, and online auto marketplace CarGurus, which went public in October and is now valued around $4.7 billion.

Meanwhile, fresh capital is piling up in the coffers of local startups with all the intensity of a New England snowstorm. In the chart below, we look at funding totals since 2012, along with reported round counts.

In the interest of rivalry, we are also showing how the Massachusetts startup ecosystem compares to New York over the past five years.

Who’s getting funded?

So what’s the reason for Boston’s 2018 successes? It’s impossible to pinpoint a single cause. The New England city’s startup scene is broad and has deep pockets of expertise in biotech, enterprise software, AI, consumer apps and other areas.

Still, we’d be remiss not to give biotech the lion’s share of the credit. So far this year, biotech and healthcare have led the New England dealmaking surge, accounting for the majority of invested capital. Once again, local investors are not surprised.

“Boston has been the center of the biotech universe forever,” said Dylan Morris, a partner at Boston and Silicon Valley-based VC firm CRV. That makes the city well-poised to be a leading hub in the sector’s latest funding and exit boom, which is capitalizing on a long-term shift toward more computational approaches to diagnosing and curing disease.

Moreover, it goes without saying that the home city of MIT has a particularly strong reputation for so-called deep tech — using really complicated technology to solve really hard problems. That’s reflected in the big funding rounds.

For instance, the largest Boston-based funding recipient of 2018, Moderna Therapeutics, is a developer of mRNA-based drugs that raised $625 million across two late-stage rounds. Besides Moderna, other big rounds for companies with a deep tech bent went to TCR2, which is focused on engineering T cells for cancer therapy, and Starry (based in both Boston and New York), which is deploying the world’s first millimeter wave band active phased array technology for consumer broadband.

Other sectors saw some jumbo-sized rounds too, including enterprise software, 3D printing and even apparel.

Boston also benefits from the rise of supergiant funding rounds. A plethora of rounds raised at $100 million or more fueled the city’s rise in the venture funding rankings. So far this year, at least 15 Massachusetts companies have raised rounds of that magnitude or more, compared to 12 in all of 2017.

Exits are happening, too

Boston companies are going public and getting acquired at a brisk pace too this year, and often for big sums.

At least seven metro-area startups have sold for $100 million or more in disclosed-price acquisitions this year, according to Crunchbase data. In the lead is online prescription drug service PillPack . The second-biggest deal was Kensho, a provider of analytics for big financial institutions that sold to S&P Global for $550 million.

IPOs are huge, too. A total of 17 Boston-area venture-backed companies have gone public so far this year, of which 15 are life science startups. The largest offering was for Rubius Therapeutics, a developer of red cell therapeutics, followed by cybersecurity provider Carbon Black.

Meanwhile, many local companies that went public in the past few years have since seen their values skyrocket. Bartlett points to examples including online retailer Wayfair (market cap of $10 billion), marketing platform HubSpot (market cap $4.8 billion) and enterprise software provider Demandware (sold to Salesforce for $2.8 billion).

New England heats up

Recollections of a frigid April sojourn in Massachusetts are too fresh for me to comfortably utter the phrase “Boston is hot.” However, speaking purely about startup funding, and putting weather aside, the Boston scene does appear to be seeing some real escalation in temperature.

Of course, it’s not just Boston. Supergiant venture funds are surging all over the place this year. Morris is even bullish on the arch-rival a few hours south: “New York and Boston love to hate each other. But New York’s doing some amazing things too,” he said, pointing to efforts to invigorate the biotech startup ecosystem.

Still, so far, it seems safe to say 2018 is shaping up as Boston’s year for startups.


Source: The Tech Crunch

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Scaling startups are setting up secondary hubs in these cities

Posted by on Jun 2, 2018 in Amazon.com, america, apttus, austin, boston, coinbase, Column, crowdstrike, Docker, GitHub, New York, north carolina, Orlando, Portland, raleigh, San Francisco, Silicon Valley, Startups, TC, Tennessee, texas, United States | 0 comments

America’s mayors have spent the past nine months tripping over each other to curry favor with Amazon.com in its high-profile search for a second headquarters.

More quietly, however, a similar story has been playing out in startup-land. Many of the most valuable venture-backed companies are venturing outside their high-cost headquarters and setting up secondary hubs in smaller cities.

Where are they going? Nashville is pretty popular. So is Phoenix. Portland and Raleigh also are seeing some jobs. A number of companies also have a high number of remote offerings, seeking candidates with coveted skills who don’t want to relocate.

Those are some of the findings from a Crunchbase News analysis of the geographic hiring practices of U.S. unicorns. Since most of these companies are based in high-cost locations, like the San Francisco Bay Area, Boston and New York, we were looking to see if there is a pattern of setting up offices in smaller, cheaper cities. (For more on survey technique, see Methodology section below.)

Here is a look at some of the hotspots.

Nashville

One surprise finding was the prominence of Nashville among secondary locations for startup offices.

We found at least four unicorns scaling up Nashville offices, plus another three with growing operations in or around other Tennessee cities. Here are some of the Tennessee-loving startups:

When we referred to Nashville’s popularity with unicorns as surprising, that was largely because the city isn’t known as a major hub for tech startups or venture funding. That said, it has a lot of attributes that make for a practical and desirable location for a secondary office.

Nashville’s attractions include high quality of life ratings, a growing population and economy, mild climate and lots of live music. Home prices and overall cost of living are also still far below Silicon Valley and New York, even though the Nashville real estate market has been on a tear for the past several years. An added perk for workers: Tennessee has no income tax on wages.

Phoenix

Phoenix is another popular pick for startup offices, particularly West Coast companies seeking a lower-cost hub for customer service and other operations that require a large staff.

In the chart below, we look at five unicorns with significant staffing in the desert city:

 

Affordability, ease of expansion and a large employable population look like big factors in Phoenix’s appeal. Homes and overall cost of living are a lot cheaper than the big coastal cities. And there’s plenty of room to sprawl.

One article about a new office opening also cited low job turnover rates as an attractive Phoenix-area attribute, which is an interesting notion. Startup hubs like San Francisco and New York see a lot of job-hopping, particularly for people with in-demand skill sets. Scaling companies may be looking for people who measure their job tenure in years rather than months.

Those aren’t the only places

Nashville and Phoenix aren’t the only hotspots for unicorns setting up secondary offices. Many other cities are also seeing some scaling startup activity.

Let’s start with North Carolina. The Research Triangle region is known for having a lot of STEM grads, so it makes sense that deep tech companies headquartered elsewhere might still want a local base. One such company is cybersecurity unicorn Tanium, which has a lot of technical job openings in the area. Another is Docker, developer of software containerization technology, which has open positions in Raleigh.

The Orlando metro area stood out mostly due to Robinhood, the zero-fee stock and crypto trading platform that recently hit the $5 billion valuation mark. The Silicon Valley-based company has a significant number of open positions in Lake Mary, an Orlando suburb, including HR and compliance jobs.

Portland, meanwhile, just drew another crypto-loving unicorn, digital currency transaction platform Coinbase. The San Francisco-based company recently opened an office in the Oregon city and is currently in hiring mode.

Anywhere with a screen

But you don’t have to be anywhere in particular to score jobs at many fast-growing startups. A lot of unicorns have a high number of remote positions, including specialized technical roles that may be hard to fill locally.

GitHub, which makes tools developers can use to collaborate remotely on projects, does a particularly good job of practicing what it codes. A notable number of engineering jobs open at the San Francisco-based company are available to remote workers, and other departments also have some openings for telecommuters.

Others with a smattering of remote openings include Silicon Valley-based cybersecurity provider CrowdStrike, enterprise software developer Apttus and also Docker.

Not everyone is doing it

Of course, not every unicorn is opening large secondary offices. Many prefer to keep staff closer to home base, seeking to lure employees with chic workplaces and lavish perks. Other companies find that when they do expand, it makes strategic sense to go to another high-cost location.

Still, the secondary hub phenomenon may offer a partial antidote to complaints that a few regions are hogging too much of the venture capital pie. While unicorns still overwhelmingly headquarter in a handful of cities, at least they’re spreading their wings and providing more jobs in other places, too.

Methodology

For this analysis, we were looking at U.S. unicorns with secondary offices in other North American cities. We began with a list of 125 U.S.-based companies and looked at open positions advertised on their websites, focusing on job location.

We excluded job offerings related to representing a local market. For instance, a San Francisco company seeking a sales rep in Chicago to sell to Chicago customers doesn’t count. Instead, we looked for openings for team members handling core operations, including engineering, finances and company-wide customer support. We also excluded secondary offices outside of North America.

Additionally, we were looking principally for companies expanding into lower-cost areas. In many cases, we did see companies strategically adding staff in other high-cost locations, such as New York and Silicon Valley.

A final note pertains to Austin, Texas. We did see several unicorns based elsewhere with job openings in Austin. However, we did not include the city in the sections above because Austin, although a lower-cost location than Silicon Valley, may also be characterized as a large, mature technology and startup hub in its own right.


Source: The Tech Crunch

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Google Fiber’s wireless Internet service is leaving Boston

Posted by on Jan 31, 2018 in Biz & IT, boston, Google Fiber, webpass | 0 comments

Enlarge (credit: Getty Images | Snap Decision)

Google Fiber is ending its wireless home Internet service in Boston, and existing customers in the city will lose their service sometime in the next several months.

Google Fiber has had its struggles, but the Boston shutoff doesn’t necessarily mean that wireless customers in other cities will lose service. The service apparently fared poorly in Boston, but the company says it is still doing better in its other locations.

Google Fiber got into the wireless business in October 2016 when it purchased Webpass, which provides speeds ranging from 100Mbps to 1Gbps and mainly serves multi-unit residential buildings and businesses. Webpass started serving Boston in 2015 before it was bought by Google.

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Source: Ars Technica

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