Hit iPhone controller Backbone One scores Xbox Game Pass partnership at xCloud’s iOS launch today

Backbone One, the killer iPhone game pad I profiled here late last year has just scored the mother of all tie-ups for a gaming accessory. It’s getting bundled with Xbox Game Pass Ultimate as it launches on iOS today alongside the xCloud game streaming service.

As a part of the deal, Backbone is being bundled with Xbox Game Pass in a new retail packaging that gets the Designed for Xbox stamp, making a Backbone + iPhone combo the closest thing we’ve ever seen to a portable Xbox. 

In my last piece I noted how Backbone cleverly used the accessory APIs built into iOS to offer super slick functionality for its cross-game dashboard. It’s been updating that dashboard to get better about showing you games, exposing you to new games and letting you use its clipping features to share killer plays with your friends. It’s one of the best gaming apps I’ve seen on iOS in years, and it has big potential to create a cross-universe place to play for the biggest gaming audience in the world. 

The Capture Button on Backbone One works with Xbox Cloud Gaming and lets you share it as a link. There’s also a new Xbox Game Pass feed and a way to move between Xbox and iOS games in the same interface. There’s  also a big callout for Xbox Remote Play, a feature that’s still super-under-utilized and actually quite good on current gen consoles. 

And the package even makes use of an AppClip to display an AR version of Backbone running xCloud for people happening on the retail packaging at a store. 

The Backbone team continues to impress with its slick and clever integrations and solid instincts. The game controller pedigree of the team shows (some original Xbox 360 controller team members worked on Backbone) but the software aspects are the most impressive. The way that Backbone unifies gaming experiences across AAA iOS ports like Warzone or Minecraft, Xbox and Playstation Remote Play and now native xCloud games feels like the way of the future for mobile gaming in a way that none of the individual players, including Apple, has managed to get right. 

Even though xCloud games are web based they are treated and presented as native apps inside Backbone’s really well done dashboard. I’ve personally played a lot of Destiny 2 over Stadia on Backbone and it feels fantastic, I can’t wait for it to be more directly integrated into the dash with clipping and social like the Xbox cloud titles are today. 

The experience of discovering, downloading and playing a game is better with a Backbone installed than even Apple Arcade now that the team is getting more into curation. They’ve also got a really slick linking mechanism that allows you to download apps right from the App Store if you see a clip of them being shared on your feed. This is how internet native players want to find and play new games — a continuously hyperlinked world of games and streams that makes it possible to see, follow and play without having to stop to manually search for anything.  

It’s also making me yearn for a time when discovering games goes beyond ‘downloading’ them and into a world where I can see a clip shared by a friend, tap on it and be playing a single level or match that gets me hooked before having to go buy the game. It would be a killer acquisition onramp for new players. 

The Microsoft tie up means that someone who purchases the Backbone for $99 from its website or at Microsoft Stores today gets 3 months of Game Pass Ultimate, making this the absolute best deal for new customers considering GPU is $45 alone. That’s bound to be a huge boost for Backbone as a young gaming startup. 


Source: Tech Crunch

FTC’s antitrust case against Facebook falters but doesn’t quite fall in federal court

An antitrust suit against Facebook by the FTC and several states had the wind taken out of its sails today by a federal judge, who ruled that the plaintiffs don’t provide enough evidence that the company exerts monopoly control over social media. The court was more receptive, however, to revisiting the acquisitions of Instagram and WhatsApp, and the case was left open for regulators to take another shot at it.

The court decision was in response to a Facebook motion to dismiss the suit. Judge James Boesberg of the D.C. circuit explained that the provided evidence of monopoly and antitrust violations was “too speculative and conclusory to go forward.” In a more ordinary industry, it might have sufficed, he admits, but “this case involves no ordinary or intuitive market.”

It was incumbent on the plaintiffs to back up their allegation of Facebook controlling 60 percent of the market with clear and voluminous data and a convincing delineation of what exactly that market comprises — and it failed to do so, wrote Boesberg. Therefore he dismissed the complaints in accordance with Facebook’s legal argument. (I’ve asked the FTC and Facebook for comment and will update this post if I hear back.)

On the other hand, Boesberg is sensible that lack of evidence in the record does not mean that the evidence does not exist. So he his giving the FTC and states 30 days to amend their filing, after which the complaints will be reevaluated.

He also found that Facebook’s logic for dismissing the suit’s allegations regarding its controversial acquisitions of Instagram and WhatsApp was lacking.

Facebook argued that even supposing that these acquisitions were somehow problematic, the FTC is not authorized to prosecute such “long-past conduct” and is limited to more recent or imminent problems. Boesberg was not convinced, finding precedent that essentially says such mergers are legally considered current as long as they exist, and the government can revisit them any time it thinks it has cause. (That’s not the case for the state lawsuits, however, which he dismissed outright for coming too long after the fact.)

That may very well be the plan of the FTC’s new Chair, Lina Khan, who has taken a hawkish regulatory position regarding antitrust in general and past acquisitions specifically. At her confirmation hearing she commented that the approvals of the mergers may have been made without complete information and as such represented a “missed opportunity” to understand and build rules around.

We’ll likely know more following the upcoming FTC meeting on Thursday. The 30 day punt in fact may be a great opportunity for Khan to put her ideas into practice, as the judge practically literally invites them to rewrite the complaint with more information. Whether she and the FTC have enough material to put together a compelling case remains to be seen, but one thing is for certain: Facebook should put the champagne back in the fridge, for now at least. Khan may not stop at a slap on the wrist.


Source: Tech Crunch

Discord acquires augmented reality startup Ubiquity6

After raising tens of millions from investors and executing a pretty substantial pivot earlier this year, augmented reality startup Ubiquity6 and its team have been acquired by gaming chat app giant Discord.

The ambitious AR startup had raised $37.5 million from a series of top investors including Benchmark, First Round, Kleiner Perkins and Google’s Gradient Ventures who were betting on its vision of building a consumer-facing platform for hosting augmented reality content. Its most recent publicly disclosed financing was a $27 million Series B in October of 2018.

Terms of the Discord acquisition weren’t disclosed, though in recent months the startup seemed to abandon most of the products it had spent its first several years building, suggesting that Ubiquity6 had been having some issues finding wide audiences for its products.

Launching back in 2017, Ubiquity6 hoped to build an app that would be the central way mobile phone users would browse augmented reality content. In late 2019, the startup launched a product called Displayland, which aimed to gamify the process of 3D scanning physical environments with a smartphone’s camera.

The company’s efforts to find mass adoption were hampered by a mobile AR market which has largely failed to gain any momentum in recent years despite hefty investment from tech giants including Apple and Google.

In early 2020, CEO Anjney Midha told TechCrunch that the startup had some 65 employees.

In recent months, Ubiquity6 had executed a pretty drastic pivot, leaving augmented reality completely behind in favor of building out a desktop platform that allowed users to play simple online party games together remotely. The beta platform, called Backyard, was designed for pandemic era habits that seem to be on the decline as the US springs back into action. Backyard was discontinued this week as part of the acquisition announcement.

In a Medium post announcing the acquisition, Midha seems to downplay any expectations that Ubiquity6’s augmented reality technology will be living on inside Discord.

“Our mission at Ubiquity6 has always been to unlock new ways for people to connect through shared experiences,” Midha wrote. “Joining Discord today allows us to accelerate that mission — Ubiquity6’s team, Backyard product and multiplayer technology will be integrated into Discord.”


Source: Tech Crunch

Ending the mental health stigma in the tech community

The road to entrepreneurship is never easy. The process is stressful and requires a tremendous amount of hustle, risk-taking and comfort with ambiguity. The sacrifices are innumerable, and they sometimes come at the expense of a person’s mental health.

Founders often find themselves in situations where they are under-resourced and overcommitted. While it’s exciting to chase a dream, the weight of responsibility — to employees, investors and customers — can feel overwhelming.

Compounding this issue is the reluctance many founders have to disclose how they’re feeling to those closest to them for fear that they will be perceived as a “failure” or ill-equipped to perform their job. Imagine for a moment that a founder is struggling with addiction or substance abuse because of the demands and pressures of running their company. Now imagine compounding the worry and anxiety by having to reveal something like this to investors.

Michael Freeman, a psychiatrist and former CEO who serves on the faculty of the University of California San Francisco School of Medicine, investigated the prevalence and characteristics of mental health conditions among entrepreneurs.

Founders are twice as likely to suffer from depression, six times more likely to suffer from ADHD, three times more likely to suffer from substance abuse and twice as likely to have suicidal thoughts than a demographically matched comparison.

He concluded founders are twice as likely to suffer from depression, six times more likely to suffer from ADHD, three times more likely to suffer from substance abuse and twice as likely to have suicidal thoughts than a demographically matched comparison. Freeman found that entrepreneurs are 50% more likely to report having a mental health condition, with some specific conditions being incredibly prevalent among founders.

The statistics are eye-opening, but the real, tangible impact can be truly devastating.

I say all the time that if I have a sore arm or a sore shoulder, I’ll come into work and I’ll whine about it. But if I couldn’t sleep last night or I’m paranoid about going outside or I’ve been taking too many sleeping pills or drinking too much wine, I won’t talk about it.

I’ll say that I’m going to my doctor to get my shoulder fixed, but I won’t say that I’m going to talk to my therapist.

At QED Investors, we experienced the terrible results of this silence firsthand. In 2018, we lost our partner Greg Mazanec after a long battle with substance abuse. Since then, we’ve been working with Greg’s family to determine how we can do our part to prevent others in the VC and startup worlds from suffering the same fate.

I can’t speak highly enough of Greg, both as a personal friend and a colleague. He was the definition of an amazing human being — an orthogonal thinker, tenacious, brilliant, quirky. We lost him far too soon. Today, we carry him around on our shoulders.

We had a team of 15 people at the time, so you can imagine how close everyone was. I swore to myself and to his family that I would talk about him wherever I had the chance. So, whenever I get in front of LPs or my portfolio companies, I bring this issue out into the open to tackle this corrosive stigma head-on.

Taking mental health discussions out of the shadows can massively change the trajectory of outcomes. Our world of venture capital is replete with people who are going through these kinds of difficulties, even before the COVID-19 pandemic exacerbated people’s fears and worries. People have felt increasingly isolated, depressed, anxious and helpless. Some may have turned to opioids or another form of addiction or substance misuse.

The research is clear — support from friends, peers and colleagues is pivotal in conquering mental illness. As companies start returning to the office or adopting a home-office hybrid, organizations have a real chance to refocus their company cultures, destigmatize addiction and make mental wellness a priority. This is a unique window to focus on this disease.

The Mazanec family created Operation Lighthouse to address substance abuse and addiction in the ecosystem most dear to Greg — the founder and entrepreneur community. It was the easiest of decisions for QED to lean in heavily to support this wonderful initiative.

Earlier this year, QED piloted a program called Just Five with three of our portfolio companies. Created by national mental health nonprofit Shatterproof, Just Five delivers, in 5 minutes per lesson, the most important concepts and facts regarding addiction.

Today, we are excited to roll out that same self-paced and anonymous educational program free of charge to more than 16,000 employees across all 50 of QED’s U.S.-based portfolio companies.

This program’s intent is to provide mental health education and catalyze informed discussion to ultimately reduce stigma.

Over the course of the year, we intend to expand the reach of this program to our international portfolio companies, as well as to other VCs who might wish to support their founders. A Spanish-language version is already planned.

Each of the six lessons has a specific theme. The first two lessons touch on the science of addiction and how certain factors such as age of first use, genetics and environment can explain why some people become addicted and others do not.

The middle lessons explain the dangers of opioids and the signs, symptoms and treatment options for substance abuse, while the final topics touch on ways people can help. The majority of the overwhelmingly positive feedback we have received so far has been centered around those final two lessons. We learned something that we anecdotally already knew — people want to help, but those who need help the most don’t always know how to ask for it.

I’ve taken every opportunity I’ve had to discuss mental health over the past few years. I truly believe that if you destigmatize it, people can deal with it. It’s a solvable problem. Just like your sore shoulder, it can be fixed. We just have to do a better job at creating a culture where people can take the first step and speak openly about it.

We can — we must — make a difference. Have your voice join mine.


Source: Tech Crunch

Facebook to target Nigerian learners with educational app Sabee, created by its R&D team

Last fall, Facebook announced it was opening an office in Lagos, Nigeria, which would provide the company with a hub in the region and the first office on the continent staffed with a team of engineers. We’ve now spotted one of the first products to emerge from this office: an education-focused mobile app called Sabee, which means “to know” in Nigerian Pidgin. The app aims to connect learners and educators in online communities to make educational opportunities more accessible.

The app was briefly published to Google Play by “NPE Team,” the internal R&D group at Facebook, which has typically focused on new social experiences in areas like dating, audio, music, video, messaging and more.

While the learnings from the NPE Team’s apps sometimes inform broader Facebook efforts, the group hasn’t yet produced an app that has graduated to become a standalone Facebook product. Many of its earlier apps have also shut down, including (somewhat sadly), the online zine creator Eg.g, video app Hobbi, calling app CatchUp, friend-finder Bump, podcast community app Venue, and several others.

Sabee, however, represents a new direction for the NPE Team, as it’s not about building yet another social experiment.

Instead, Sabee is tied to Facebook’s larger strategy of focusing more on serving the African continent, starting with Nigeria. This is a strategic move, informed by data that indicates a larger majority of the world’s population will be in urban centers by 2030, and much of that will be on the African continent and throughout the Middle East. By 2100, Africa’s population is expected to have tripled, with Nigeria becoming the second-most populated country in the world, behind China.

Image Credits: Facebook NPE Team

To address the need to connect these regions to the internet, Facebook teamed with telcos on 2Africa, a subsea cable project that aims to serve the over 1 billion people still offline in Africa and the Middle East. These aren’t altruistic investments, of course — Facebook knows its future growth will come from these demographics.

Facebook confirmed its plans for Sabee to TechCrunch after we discovered it, noting it was still a small test for the time being.

“There are 50 million learners, but only 2 million educators in Nigeria,” said Facebook Product Lead, Emeka Okafor. “With this small, early test, we’re hoping to understand how we can help educators build communities that make education available to everyone. We look forward to learning with our early testers, and deciding what to do from there.”

Image Credits: Facebook NPE Team

The disparity between learners and educators in Nigeria greatly impacts women and girls, which is another key focus for Sabee — and the NPE Team’s efforts in the region as a whole. The company also wants to explore how to better serve groups who are often left behind by technology. On this front, Sabee is working to create an experience that works with low connectivity, like 2G.

We understand the app is currently in early alpha testing with fewer than 100 testers who are under NDA agreements with Facebook. It’s not available for anyone else beyond that group at present, but the company hopes to scale Sabee to the next stage before the end of the year.

There is no way to sign up for a Sabee waitlist, and the app is no longer public on Google Play. It was available so briefly that it was never ranked on any charts, app store intelligence firm Sensor Tower confirmed to us.

We should note that “sabee” and “sabi/sabis” have other, less-polite meanings in different languages, per Urban Dictionary. But the team has no plans to change the name for now as it makes sense in the Nigerian market where the app is targeted.

 


Source: Tech Crunch

Egypt’s Minly raises $3.6M to connect celebrities and fans through personalized experiences

In the past couple of years, we’ve seen a growing trend of creators adopting digital and social media, not just as a supplement to their media presence but also as a cornerstone of their personal brand.

The pandemic has surely accelerated creator economy trends. Many popular artists and figures have had to postpone concerts and live events, subsequently using social media to carry out these activities and engage their fans. Proliferating through Western and far East markets, the creator economy bug, which has made platforms like Cameo and Patreon unicorns, is beginning to take center stage in MENA.

Today, Minly, an Egypt-based creator economy platform, is announcing that it has closed a $3.6 million seed round to allow stars across the MENA region to create authentic, personalized connections with their fans.

The round, which Minly says was oversubscribed, was co-led by 4DX Ventures, B&Y Venture Partners and Global Ventures. It also included participation from unnamed regional funds and angel investors like Scooter Braun, founder of SB Projects, and Jason Finger, co-founder of Seamless and GrubHub. 

Experts say time spent viewing social media surpassed time spent viewing TV within the MENA region. But one shortcoming with social media is that its content often feels mass-produced. When creators make posts, it’s most times void of personalization. In a way, this dilutes the fan experience and limits the extent and number of ways the creator can monetize.

This is where Minly, founded last year by Mohamed El-Shinnawy, Tarek Hosny, Tarek ElGanainy, Ahmed Abbas, and Bassel El-Toukhy, comes in. It provides tools for creators to craft what it calls ‘authentic connections’ with their superfans and audience at scale. “In short, our goal is to eventually deliver tens of millions of unique, unforgettable experiences to fans each year,” El-Shinnawy told TechCrunch.

Shinnawy, who brings more than 15 years of media and technology experience to the table, is the chief technology officer at Minly. He sold his first company, Emerge Technology, to a U.S.-based media company. He has also delivered work for Hollywood’s top studios, such as Sony Pictures, Universal, Disney, Fox and Warner Brothers, while playing a role in the global expansion of Apple TV+, Disney+, and Netflix to the MENA region.

Minly

Mohamed El-Shinnawy (co-founder and CTO, Minly)

Minly has experienced rapid growth since launching late last year. It has more than 50,000 users and an impressive list of popular regional celebrities ranging from actors and athletes like Fifi Abdou and Mahmoud Trezeguet to musicians and internet influencers like Assala Nasri and Tamer Hosny.

On the platform, users can buy personalized video messages and shoutouts from these celebrities, and they, in turn, connect with their fans on a more personal level.

We think that we have already differentiated ourselves from other creator economy platforms in the region. We do this by offering the best catalogue of stars and user experience. And our entire team is working hard to grow this gap even further,” said El-Shinnawy on the crop of celebrities Minly has onboarded to the platform

Some of the instances where celebrities connected with their fans on Minly include when actress and dancer Fifi Abdou sent a personal message to one of her biggest fans who has Down syndrome and when Egyptian singer Tamer Hosny made a surprise appearance at two fans’ engagement party in March.

Minly takes a small commission on transactions made through its platform. However, the majority of the transaction price, a figure Minly didn’t disclose, goes directly to creators. And at the same time, Minly urges celebrities to automatically donate a portion of their earnings to partner charities on the platform.

Minly’s knack for creating a personalized experience is why Pan-African VC firm 4DX Ventures invested. The firm’s co-founder and general partner Peter Orth, who will be joining Minly’s board, said the company is fundamentally changing the relationship between celebrities and fans in the MENA region. “The team has both the ambition and the expertise to build a full-stack digital interaction platform that could change the way digital content is created and consumed in the region,” he added. 

The creator economy market surpassed $100 billion in value this year and is still growing at an impressive rate. The pace of content creation will only speed up since surveys suggest that being a YouTuber or TikTokker or the most common term, vlogger, is one the most desirable careers among Gen Zs. VC heavyweights like Andreessen Horowitz, Kleiner Partners, and Tiger Global have also heralded this growth considerably, contributing to the more than $2 billion invested in creator economy platforms this year.

In MENA, there’s a huge opportunity for Minly. The region has over 450 million people, of which 30% are between the ages of 18 to 30. This demographic is known to have a deep connection with social media, and El-Shinnawy believes MENA will soon contribute to a large part of the total creator economy.

For Minly, the goal is to capture a huge portion of that spend and become a multibillion-dollar, category-leading company. The creator platform has a case to do so. As it stands, the opportunity to build a creator economy one-stop-shop in MENA is huge compared to other regions that already have multiple entrenched incumbents. Also, Minly is one of the few platforms in the region with meaningful venture funding.

“The creator economy is in its infancy and growing at lightning speed. We have the opportunity to build this category’s first unicorn in MENA,” the CTO remarked.

With this investment, Minly is doubling down on building local celebrity acquisition teams in Egypt and other parts across MENA and the GCC, where it has seen significant traction. The company will also scale its engineering team to churn out more products to build a horizontal creator platform.

 


Source: Tech Crunch

Do tech mafias need a modern refresh?

Rumor has it, if you whisper mafia to a venture capitalist or tech reporter, a seed investment and headline appears within minutes. That process quickly turns into seconds if the mafia reference includes the letters S, T, R, I, P and E before it.

Tech mafias, otherwise known as a group of early employees within a company who spin out to start their own, independently successful companies, became a popularized term thanks to PayPal in the early 2000s. As my lede alludes, the term has since become a cliche of sorts. Everything is a mafia, including you, dear Startups Weekly newsletter subscribers. Jokes aside, I’d argue the term is still a helpful way to track the way talent moves in the ever-growing world of startups.

Many venture capitalists have been making subtle, and not-so-subtle efforts, to back the next cohort of star employees turned star entrepreneurs. Wave Capital originally began as an institutional venture capital fund explicitly for Airbnb alumni starting new companies. Ross Fubini of XYZ Ventures introduced Palantir’s first business hire to its first engineer and now invests in the community out of his fund. Eric Tarczynski of Contrary Capital launched Contrary Talent, a program that helps early career professionals navigate the world of entrepreneurship.

This newsletter was going to be about the undercovered mafias that are brewing in tech, but a recent exchange with some of you on Twitter took me in an entirely new direction. Check out the thread if you want to know the next mafioso, but today, I want to explore a more modern way to think about these entities.

Glamorization of mafias

Image Credits: Britt Erlanson / Getty Images

Rebekah Bastian, the chief executive and founder of OwnTrail, isn’t the biggest fan of mafias — even though she’s technically a part of one herself. The first-time founder was the former Zillow VP of Product and VP of Community & Culture who thinks that the growing world of mafias comes with some problematic truths.

“While it’s true that these ‘mafias’ are good for the people within them and often touted with pride, there are reasons that they are problematic from an equity perspective,” she said. First, she pointed to how hiring from and funding employees from a given company, if that company doesn’t have diverse representation (particularly at the leadership level), propagates the inequitable cycles of who is getting hired and funded. Second, she thinks that the press focuses on startups coming out of these companies that serve a privileged subset of the population, instead of mission-focused ones.

What do you think? Her argument is essentially to not glamorize the concept of hiring within existing networks, because if white, male entrepreneurs only hire from within their existing networks, the resulting company will look and act white and male. On the flip side, and this is what gets me excited, underrepresented founders who raise millions of dollars, suddenly have the power to usher in an entirely different group of techies into this world. The Glossier mafia would look quite different than the PayPal mafia.

As I said before, I think “mafias” are certainly a compelling way to track how talent moves. I don’t think we should stop paying attention to the phenomenon or shame people for being opportunistic about alumni groups. It’s how the world works. Instead, I think that there’s hope that problems inherent to them are changing as founding groups themselves become more diverse. To Bastian’s point, I think there’s a way to be more intentional about what is idolized and what is not.

A new descriptor

A few people also mentioned that we should start using a different word to describe this dynamic instead of “mafia” due to its more nefarious connotations. Here’s a list of your best suggestions:

Let me know what you think about all of the above by responding to @nmasc_. In the rest of this newsletter, we’ll chat about BuzzFeed’s SPAC, the early-stage venture market and GM’s startup incubator strategy.

The public market gets buzzed

Image Credits: Malte Mueller / Getty Images

We kicked off Equity Live this week with a hot news item: BuzzFeed is going public via a SPAC and will merge with 890 Fifth Avenue Partners Inc., a publicly traded company. BuzzFeed also disclosed that it will purchase Complex, another media company, for $300 million in cash and shares in BuzzFeed itself; the SPAC deal will help finance its purchase of Complex.

Here’s what to know: Alex gave you five takeaways from BuzzFeed’s SPAC deck so you can better understand what’s going on, beyond the cat pictures and fun quizzes.

As for other public market news, subscribe to The Exchange written by Alex, which includes a smattering of the below:  

Late to the early-stage party?

the recycle logo recreated in folded US currency no visible serial numbers/faces etc.

Image Credits: belterz (opens in a new window) / Getty Images

No worries. Here’s what to put on your early-stage bingo board: emerging fund managers are popping off thanks to new capital support, Li Jin of Atelier Ventures has a must-read thread, and even as summer is in swing, deals still feel frenetic. 

Here’s what else to know: Kirsten took Extra Crunch readers inside GM’s startup incubator strategy, including how they take early concepts and turn them into startups and the company’s favorite messy-stage ideas.

Around TC

Next week, we’re taking you to Pittsburgh to hear from Karin Tsai, the head of engineering there, as well as Carnegie Mellon University President Farnam Jahanian, Mayor Bill Peduto and a smattering of local startups.

Our TC City Spotlight: Pittsburgh event will be held on June 29, so make sure to register here (for free) to listen to these conversations, enjoy the pitch-off and network with local talent.

Across the week

Seen on TechCrunch

Seen on Extra Crunch

Thanks all,

N


Source: Tech Crunch

Everyone wants to invest in open-source startups now

Welcome back to The TechCrunch Exchange, a weekly startups-and-markets newsletter. It’s broadly based on the daily column that appears on Extra Crunch, but free, and made for your weekend reading. Want it in your inbox every Saturday? Sign up here.

Ready? Let’s talk money, startups and spicy IPO rumors.

Happy weekend, everyone. I hope that your week wasn’t too hectic and that you are getting a good recharge in. That said, we have a lot to talk about.

Something that has been cropping up more and more in my inbox, SMS folder and Twitter DMs are venture rounds from startups with an open-source backbone. Essentially, startups have roots in an open-source project, often with the progenitors of that open tech inside the company itself.

A good example of this at the very end stage of the startup world was Confluent. The company went public this week to pretty good effect, pricing above its IPO range and later appreciating further. Confluent is predicated on the open-source tech Kafka, which you’ve probably heard of.

The Exchange caught up with Mike Volpi of Index Ventures, an early backer of Confluent, on the company’s IPO day. During our chat, we got to nibble on the open-source (OSS) startup world, which Volpi said changed dramatically in recent years. From his telling, venture investors back in 2015 weren’t too hyped about open-source startups, arguing that there already was one (Red Hat), and that that was going to be roughly about it.

If we did our math correctly, Index wound up with a stake worth in excess of $1 billion in Confluent at its IPO price. So, the haters were wrong about OSS.

That said, Volpi added that while he’s as bullish on open-source-focused startups as before, the market has become increasingly picked over as more investors pile into backing the model. That inventors are putting more money to work in the space is not a surprise if you’ve been reading startup funding coverage. BuildBuddy is an example that I wrote about last December. Ron covered Tecton and Airbyte recently.

The trend of venture interest in OSS has been building for some time. Hell, VCs wrote about an explosion of open-source startups for TechCrunch back in 2017. But the Confluent IPO and the recent wave of funding rounds for startups in the space seem to indicate that market appetite for such companies has reached a new, higher plateau. (If you are building an OSS-focused startup and recently raised capital, say hi.)

More on Confluent’s IPO

The Exchange also spoke with Confluent CEO Jay Kreps on his company’s IPO day. A few notes from that chat are worth our time. Here are our key takeaways:

  • Investing is never going back to “normal”: That venture capitalists were able to start doing deals over Zoom was only so surprising. After all, you’d expect your average VC to be somewhat technology savvy. But Kreps said that his IPO roadshow worked well over digital channels, and that he was able to talk to more folks, more quickly than if he had been jet-hopping around the country for face-to-face meetings. If the even more conservative public-market investor set is fine with Zoom, digital pitching is a done deal.
  • Public markets are still burn friendly: Confluent is a quickly growing software company that is not yet profitable. Its IPO reception is a good indication that losing money remains perfectly acceptable in today’s market. Per Kreps, if you have a huge market — he reckons that Confluent has a $50 billion market to attack — and can show that capital is being invested — CEO code for not being utterly torched by an inefficient business model and cost structure — then losses are just fine. This matters for Q3 IPO hopefuls who have more growth than net income. Which is most of them.
  • Even public investors like open source: The Exchange also asked Kreps about being an open-source company approaching the public markets. Was it a positive or negative? A positive, per the CEO, adding that technology has a history of being built around open standards, which means that OSS fits neatly into historical trends. And he added that because open-source projects can have strong organic momentum, it can help public investors see future growth at the corporate level. Neat.

OK, how about even more open source news?

Hope you like open-source software news, because I have even more for you. Earlier this month, Prefect raised a $32 million Series B. I didn’t get to cover the round when it happened, but did catch up with the company this week for a quick chat.

The company is based around the PrefectCore, an open-source project. PrefectCore helps companies make sure that their data inflow is set up correctly, focusing on things like scheduling, monitoring, logging and so forth. The company calls this sort of work negative engineering; it falls into a dead space of sorts. No one really wants to work on it, per the startup.

Notably, Prefect, instead of offering a hosted version of its open-source project, instead sells a monitoring service. It thinks that hosting OSS projects is a somewhat old-hat way of monetizing such projects. So, instead of selling hosting or feature-gating, the company’s commercial product is an API that tracks what PrefectCore is managing. If it reports all green lights, good shit, you’re in swell shape. If not, you have an issue.

But what matters is that Confluent shows that OSS startups can reach a huge scale and become big IPOs. And Prefect indicates that there may be even more ways to skin the OSS cat when it comes to making money off open-source software.

So, expect more OSS VCs deals to land this year.

Alex


Source: Tech Crunch

Startup leaders need to learn how to build companies ready for crisis

It’s been a tough year for business. From ransomware attacks and power outages to cloud downtime and supply-chain disruptions, it’s never been more important to communicate to customers and stakeholders about what’s going wrong and why. Yet, with partial data and misinformation often spreading faster than official word, it’s also never been harder to deliver accurate and timely messages.

Given the complexities of this environment, I wanted to convene a group of specialists to talk about what the future of crisis comms holds for startups, technology companies, and business more broadly. We had a great set of three folks discuss how to build resilient orgs, handle the decentralization going on in tech today, and how to prioritize crisis management over the mundane tasks every day.

Joining us were:

  • Admiral Thad Allen, who as commandant of the Coast Guard and during his career, was commander of the Atlantic coast during 9/11, and led federal responses during Hurricane Katrina, the Deepwater Horizon oil spill, and the 2010 Haiti earthquake.
  • Ana Visneski, who worked with Allen on building out the Coast Guard’s first digital presence as an officer and chief of media, is now senior director of communications and community at H20.ai and was formerly global principal of disaster communications for Amazon Web Services.
  • John Visneski is the chief information security officer (CISO) at Accolade, and was formerly director of information security at The Pokémon Company. He served 10 years in the U.S. Air Force, where he served as chief of executive communications, and yes, is Ana’s brother.

This discussion has been edited and condensed for clarity

Prepping an organization for catastrophe

Danny Crichton: You’ve all been in disaster communications, in some cases for decades. What are some of the top-level lessons you’ve learned about the field?

Admiral Thad Allen: Great communications and great communications people can’t save a dysfunctional organization. There’s only so much you can do with what you’ve got. I want to say that as a proviso because I’ve seen a lot of people try to communicate their way out of a problem.

The big difference between Katrina in 2005 and the Deepwater Horizon oil spill in 2010 was Katrina was before Twitter and Facebook and Deepwater was after it. In the old days, you went out and did your job. There might be an after-action report, but it was pretty much done within your organizational structure.

I’m going to really date myself. We sent forces into Somalia [around 1993]. It was the first time in history that CNN watched the people come to shore from the amphibious vehicles and I knew life had changed dramatically. There is no operation that takes place these days where the public is not part of the operation, part of the environment, part of the outcomes that are generated. If you fail to realize that, you’re going to fail right away. Anybody who’s got a cell phone enters your world of work.

So the question is, how do you think about that? That’s resulted in a significant Black Lives Matter movement with George Floyd and somebody happened to be there with a cell phone, and if that had not happened, that situation probably would not have turned out the way it did. So the question is what are we to make of that loop?

John Visneski: Generally speaking, your organizational hierarchies are not designed to be optimized for a crisis. They’re designed to build consensus. They’re designed to understand budgets. They’re designed for long-term planning. It’s the same in the military and it’s even worse in the private sector. And so there’s no concept of situational leadership. There’s no concept of who’s actually in charge during a particular crisis.

In recent attacks, the folks that were in my position, didn’t do a good enough job of explaining the technical aspects of what was going on in such a way that their organization could channel that into something that could then be translated to the public.

Ana Visneski: That’s actually called the theory of excellence in crisis communications, which is basically you have to have this transparency and this well-organized system before something goes wrong. And almost everyone doesn’t.

A good example is in 2017, when S3 broke for AWS, which is how I ended up doing crisis comms for them. I looked around and I said, “Well, why don’t we use our crisis comms plan?” And my boss said, “Our what?” And so I ended up building the critical event protocol and I built it based off the Incident Command System (ICS) that is used by federal agencies during a disaster. And essentially it was a big red button that says “Stop! Everyone get on a call, figure out who’s in charge of responding” that just unifies everyone.

Admiral Thad Allen: I’ll give you a classic antidote because I’ve written about it quite a bit. When I was going to the Sloan School at MIT, in December of ’88, we went down to New York and visited a bunch of CEO’s, and one of the days we went across the river to see the CEO at Exxon, a guy named [Lawrence G. Rawl]. During the discussion, I asked, “Bhopal was the biggest industrial accident in the history of the world today. As a CEO running a big corporation, have you thought about what happened if you had a similar Bhopal-type situation?” He spent 20 minutes going over their extremely well-thought-out communications plan and four months later, the Exxon Valdez ran underground and they actually failed at everything.

A Lockheed C-130 plane sprays dispersant over the Exxon Valdez oil spill in Prince William Sound, Alaska, USA. Image Credits: Natalie Fobes via Getty Images.

John Visneski: Your plan that you write down on paper is only as good as how much you practice it. Right? One of the things that the military typically is pretty good at is practicing before you play. Doing mock drills, doing tabletop exercises, having a red team that throws things at you that you might not expect.

Admiral Thad Allen: Yeah. I’ve dealt with a couple of large firms that have had very big problems. The default setting, if you haven’t thought about this ahead of time, is they go to a subject matter expert and hold them accountable for what the organization should do. That is not the way to do it. You need a designated person to create unity of effort. It’s got to involve the C-suite, and it’s got to involve not only your clients and your stakeholders, but your supply chain.

Ana Visneski: We keep talking about training, but just having a plan in the first place is critical. With some of these big companies, they’re so siloed that when something like this happens, everyone’s trying to do the right thing and running into each other. If you don’t have redundancies built in and backups for your backups, you’re going to go down hard.

You’ve got a plan for what happens if your main spokesperson was the incident? Or what happens if there was an earthquake and, all of a sudden, you don’t have your C-suite to talk? And John can talk a lot about this, but the last mile is another problem with crisis comms. If it’s a big disaster, you’ve got to plan around your tech, how are you going to get the information from the field back to where you can actually broadcast it out to people?

Admiral Thad Allen: When I got called to go to Katrina, I was on my way to the airport and the last thing I did was I sent my son along to a Best Buy to get me a mobile handheld and a SiriusXM receiver, so I could have awareness of what was being done. As far as the communications, a thing like that was the smartest thing I did.

Thad Allen (center) in the disaster aftermath of Hurricane Katrina, September 2005. Image Credits: Justin Sullivan

John Visneski: One of the biggest challenges is this all needs to be resourced, right? Your company needs to actually dedicate resources to that prior planning. To being able to build out the infrastructure, to being able to have hot-swap data centers and locations and things like that. And sometimes whether it’s your board or whether it’s your CFO or whoever’s holding the purse strings for your organization, it’s really hard to justify the return on investment that a lot of folks see as sort of a rainy day fund.

So it’s incumbent upon the leadership of the organization, particularly the leadership that is going to be involved in some sort of a disaster response to get ahead of those conversations and understand how disaster response can do things to protect revenue.

Ana Visneski: Because of the pandemic, we’ve had almost two years of shit hitting the fan. So we’re seeing a lot more C-suite leaders going, “We need to know how to be prepared for what happens next.”

Communicating in a decentralized and flat world

Danny Crichton: If you think about the last 20 years, particularly in the private sector, we went from a model of headquarters buildings, large leadership structures all in one place, oftentimes a fairly hierarchical model of how to operate a company, etc. Today, we’re seeing decentralization, and a sort of horizontalness in a lot of companies. How does this new culture affect disaster communications?

Ana Visneski: Well, now that there is this decentralization, it’s incredibly difficult to wrangle all of your people and get everyone on the same page. And you have to think about what happens if Slack goes down. It goes back to redundancies — you have to have multiple ways of contacting your people.

Along that line, I am not a fan of companies saying is, “You can’t post on social media or you shouldn’t do this or that.” Because all that does is sows distrust. Instead, I am a big fan of training your people to do it right. Of course, you have to have company policy that if someone during a crisis is posting secure information or lies, or is just being a racist jerk, obviously there are consequences, but training your people to use the tool right, helps with transparency.

Admiral Thad Allen: My motto when I was commandant was transparency of information breeds self-correcting behavior. If you put enough information out and everybody holds it, organizational intent becomes embedded into how people see the environment they’re in. They’re going to understand what’s going on and you won’t have to give them a direct order to do the right thing. They’ll understand that. And I think that’s really important.

In the military, we have something called a “common operating picture,” and it’s basically a display where everybody’s at, what they’re doing at any one time. It’s not an order. It’s not hierarchical. Instead, it provides context and provides a window into what you’re doing.

So I think there’s a difference between creating a common operating picture and what actually constitutes authority. If you can separate those, the more you put into the former, the less of the latter you’re going to have to do.

John Visneski: I’m based in Seattle. We have an office in Philadelphia, an office in Houston, an office in San Francisco, and an office in Prague. There’s people in all those offices who are critical for our business. The advantage we have is the advantage that a lot of tech organizations take for granted, which is we were already going through a digital transformation, or we were already on the backside of digital transformation. Cloud focus, Software as a Service, Slack, email, Signal on my phone, a million different ways for me to communicate with my team, communicate with leadership and things like that.

What we take for granted is, there are a lot of organizations in the United States and worldwide that have not gone through that digital transformation. No offense to the military, but when I was at the Pentagon, if email went down, you might as well play hockey in the hallways because no work was going to get done.

Admiral Thad Allen: You can add losing GPS as well.

John Visneski: Exactly. So a lot of organizations have had to come to terms with how do they communicate when they’re distributed like that? The answer isn’t one-size-fits-all. It might be different for an Accolade, different from a Facebook, different from a Twitter, different from a Bank of America or a Bank of New York Mellon. Just based on what their architecture looked like pre-pandemic, what their architecture looks now, and what sort of investments they’ve made to future-proof themselves, should something this ever happen again.

Ana Visneski: I was on a Twitter Space recently, and I was talking that in the United States, especially those of us who are in the tech industry, we tend to take for granted all of this stuff. There are all of these assumptions that are made. In reality, not only do you have to deal with the last mile if a disaster happens, but you also have to deal with the fact that not everyone has one of these super computers in their pockets all over the world.

Residents walk past a downed cell network tower in Polangui, Albay province on December 26, 2016.
Image Credits: CHARISM SAYAT/AFP via Getty Images

Talking about technological arrogance, but people forget radio. People forget that there are these older technologies that in a disaster are still where you’re going to go. John makes fun of me all the time, because I’m trying the new thing every time it comes out, but you can’t forget the stuff that works like radio in the morning.

The crisis of crises and how to handle the infinite range of disasters today

Danny Crichton: The next subject I want to get to is the range and diversity of crises that are hitting organizations today. The Admiral had brought up Exxon and ’89. Okay, you’re an oil company, you have an oil spill — I wouldn’t call it predictable, but you can certainly create a plan. You can say, “Here’s how we need to communicate. Here’s how we handle this.”

But look at the range of stuff we’ve had to deal with in the last year. Everything from a pandemic to Texas power outages, wildfires in California, TSMC is dealing with a drought in Taiwan, you’ve got internal employee hostile workplace protests, external protests, ransomware attacks, bitcoin heists, and on and on.

Ultimately does the same toolbox work no matter what the crisis is? Or do different types of crises demand different kinds of responses? And how would you know the difference?

Admiral Thad Allen: I taught crisis leadership in large complex organizations for four years at George Washington University. In the last class, I told my students to write down the worst catastrophe they could ever think would happen that you have to go and wake up the president in the middle of the night. They all wrote it down on a piece of paper, folded it up and put it in a ball cap. I shook it up and pulled one of the pieces out.

I said to the class, “Just listen to what I’m about to say. Thanks for getting up and coming in early to the White House Press Corps office this morning. I want you to know the president was notified at 4:30 this morning about what happened. He and the First Lady were overwhelmed with grief for the loss of life and the impact on the community. We’ve set up a schedule where we’re going to brief the president every four hours and a meeting following the brief to the president. There’ll be a brief to the press 30 minutes after that. The cabinet’s been advised.” And I went on and on and on.

I finished and I said, “What do you think about that?” And James Carville, who was visiting, said, “It’s great” and he asked, “Well, what was the event?” And I said, “I never opened the paper.” So to your point there’s some things that are just a goddammed no-brainer.

Ana Visneski: I took the ICS [Incident Command System] structure and rebuilt it basically to work in the corporate setting. And the reason that’s so effective is it’s built to be flexible. You have someone who’s in charge overall, you have someone who’s in charge of communications. You have someone who’s in charge of logistics. You have someone who’s in charge of security, and it flexes up or down. And so no one can necessarily predict a “black swan” event. But you can build a core response system that is as close to all hazards as possible.

Admiral Thad Allen: Predict complexity.

Ana Visneski: Yes. And you predict that it will be complex and that nothing goes to plan. We’ve made a lot of jokes that nothing prepared me for a wedding during COVID like having been a first responder. Well, my brother got married last year too. And I did a little bit of help there with my background, but for my wedding, nothing was the same. And it’s the same thing during a disaster. Katrina is different from Gustaf. Gustaf was different from Sandy, but they’re all hurricanes at their core.

Admiral Thad Allen: I just spent an hour with a bunch of government employees earlier today on the same topic. What happens in a “complex” situation is that existing standard operating procedures, legal theories, frameworks, and governance break down and do not work, and they have to be replaced with some other way to deal with it.

ICS allows you to do, and with the right standard doctrine, you can get pretty close to a 50-60% solution that will get you headed in the right direction while you figure out the rest of it.

John Visneski: I’ll say at least from the tech side of things is those plans need to abstract technology almost entirely. Take it up to a level where it doesn’t matter what your communications method is from a technological standpoint. Don’t assume that you’re going to have the bits and bytes flowing the way that we do now. Don’t assume cell towers, don’t assume power, don’t assume any of those sorts of things, because the second that you predicate your plan on those assumptions is the second that the complexity is going to come in and tell you you’re wrong. The 40% that is not planned for is going to become what outweighs the 60%.

Ana Visneski: I think one of the things the tech industry kind of runs into is we are so reliant on the technology now that we can’t imagine what we’d do without it. At the end of the day, good crisis comms relies on good people, and good crisis and disaster response relies on the people doing it.

So you have to build your plan around the people and the structure there, and then use the technology at hand during the event to augment what plans you already have for people. Because by the time I’d write a crisis plan for something. If I included Twitter and blah, blah, blah, well, one like John just said, it’s going to break. Or by the time we have the crisis, the technology has changed and we’re using something else. So you got to write it from a perspective of people first and tech is the tool.

Prioritizing crisis management over the day-to-day metrics of a business

Four business people used ropes to tighten their money bags, economic austerity, reduced income, economic crisis

Image Credits: VectorInspiration via Getty Images

Danny Crichton: Okay, so obviously we should all spend more time figuring out how to communicate better during crises. But everyone is busy, and every person is trying to hit whatever metric they need for the quarter. How do you get a low-risk but huge-impact issue like crisis management on the priority list?

John Visneski: For a B2B organization or a B2C organization or really anybody that’s selling a particular service, typically you need to lean on compliance requirements first. So customer contracts are going to say, from a security perspective, your data security addendum, your privacy addendums, and things that are generally going to have some language that centers around having a business continuity plan, a disaster response plan, an incident response plan, a cyber incident response plan, and then the really good contracts are the ones that actually specify you’ll do it no less than two times a year. So the first thing to lean on is those compliance requirements, because those will actually directly tie to revenue.

Then the secret sauce and what a lot of us in the cyber community are trying to get better at is how do you take that next step? We know that compliance does not necessarily mean security. We know that just because we have a written business continuity plan and that we say we exercise it, we present a report that says we exercise it, doesn’t necessarily mean we’re going that next mile to make sure that we train our employees. The education piece of it is really what we need to advocate to get additional resources for.

Admiral Thad Allen: My pitch to these big companies is if you’ve got a regulatory requirement, you have a plan that’s required. Why would you fund that and not take the opportunity to add just a little bit of incremental effort and resources to take advantage of the natural cycle that you’re required to do anyway?

Ana Visneski: Hit them where the money is, because a good crisis plan can range in price. Let’s say you spend $200,000 getting your system set up. If you’re looking at these companies, a disaster or a crisis could tank your company. Or it could cost you millions and millions of dollars if you’re not prepared. So at the end of the day, the ROI is huge.

And like I said before, with COVID having just happened, I think more of leadership is aware that, “Hey, we’re not crisis proof just because we’re a gaming company or just because we’re whatever.” No, one’s crisis proof. So at the end of the day, you’re going to save money. If you just do it in the first place, because then you just have to update it every year, and you just have to do a little bit of training. The biggest cost is on the front end and then just maintaining it after that and updating it.

John Visneski: Everyone knows that if something bad happens, if you don’t have plans in place, you’re going to lose a shit load of money. But let’s think about it from a consumer standpoint. Generally speaking, your average consumer is becoming much more conversant when it comes to privacy.

Moving forward, it isn’t enough just to say, “If we don’t have this, things can go really bad.” It’s also to say, “We can leverage this if we do this really well. And if we can advertise to our customers, whether it’s another business or whether it’s the consumer that not only do we protect your data, but also we have all these plans in place in order to react to complex situations.” You can actually use that as something that separates you from your near-peer competitors in the business world.

Ana Visneski: At the end of the day, if the trust isn’t there in the tech and the trust isn’t there that you’re doing the right things, it doesn’t matter what you do when a crisis hits. You’re already in the trashcan.


Source: Tech Crunch

8 founders, leaders highlight fintech and deep tech as Bristol’s top sectors

The U.K. is gaining in popularity as a great place to start a tech firm. The country is quickly catching up to China on the tech investment front, with VC investments reaching a record of $15 billion in 2020, according to TechNation. A global health crisis notwithstanding, London remained a favorite for investors. U.K. cities made up a fifth of the top 20 European cities, with names such as Oxford, Dublin, Edinburgh and Cambridge rising to the fore in 2020.

Bristol proved especially popular among tech investors last year — local businesses raked in an impressive $414 million in 2020, making it the third-largest U.K. city for tech investment. The city also has the most fintech startups per head in the U.K. outside London, according to Whitecap’s 2019-2020 Ecosystem Report.

Efforts by the city’s private and public sectors to modernize the city have helped it rank among the top smart cities in the U.K., attracting a bevy of tech entrepreneurs. Its proximity to London has meant that it is a good alternative for founders looking for a more affordable stay while letting them tap the capital’s financial resources. The University of Bristol also has the largest robotics department in Europe.


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Bristol is also home to an important startup accelerator, SETsquared. A collaborative effort by the five universities of Bath, Bristol, Exeter, Southampton and Surrey, the accelerator has supported over 4,000 entrepreneurs and helped their startups raise a total of £1.8 billion. Other startup support players include the new Science Creates VC fund, set up by entrepreneur Harry Destecroix, and TechSPARK Engine Shed.

Key emerging startups from Bristol include Graphcore, Open Bionics, Ultraleap, Immersive Labs and Five AI.

To get a better idea of the state of the tech ecosystem and the investor outlook for this city, we surveyed founders, leaders and executives involved in nurturing Bristol’s startup ecosystem.

The survey revealed that the city has a robust renewable, zero-carbon and fintech startup landscape. Robotics, VR, bio, quantum, digital and deep tech are also areas showing promise. As for the investing scene, although Bristol has a healthy angel network, the city lacks institutional VC, but with London only a drive or train ride away, this has not proved a significant problem.

We surveyed:


Coralie Hassanaly, innovation consultant, DRIAD

Which sectors is Bristol’s tech ecosystem strong in? What are you most excited by? What does it lack?
Bristol is strong in renewable and zero-carbon innovation, fintech and robotics. It’s weak in industry 4.0.

Which are the most interesting startups in Bristol?
Graphcore, LettUs Grow, Open Bionics, Ultraleap and YellowDog.

What are the tech investors like in Bristol? What’s their focus?
A lot of focus on fintech, I think.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
Bristol is a great middle ground between a large dynamic city (plus it’s not far from London) and access to nice countryside area. With remote working we can expect it will attract new residents in the next few years.

Who are the key startup people in the city (e.g., investors, founders, lawyers, designers)?
Aimee Skinner, Abigail Frear and Stuart Harrison.

Where do you think the city’s tech scene will be in five years?
Second major city in U.K. innovation.

Pete Read, CEO and founder, Persona Education

Which sectors is Bristol’s tech ecosystem strong in? What are you most excited by? What does it lack?
Bristol is strong in media/animation, edtech, social impact, health and science. I’m most excited by edtech and the possibility to reach and positively impact millions of students via online learning. It’s weaker in hardware and fintech.

Which are the most interesting startups in Bristol?
Kaedim, Persona Education and One Big Circle.

What are the tech investors like in Bristol? What’s their focus?
There are several very active tech investment networks coming from several angles, e.g., university-led, groups of private angels and tech incubators. The great thing is they all collaborate and share resources, ideas and expertise in initiatives such as The Engine Shed and Silicon Gorge.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
More people are moving in, as Bristol has a great urban lifestyle with easy access to the countryside and Southwest/Wales holiday spots, and an international airport 20 minutes from the center.

Who are the key startup people in the city (e.g., investors, founders, lawyers, designers)?
Jerry Barnes at Bristol PE Club; Abby Frear at TechSPARK; Briony Phillips at Rocketmakers; Jack Jordan-Connelly at SETsquared.

Where do you think the city’s tech scene will be in five years?
It’s developing rapidly with lots of support, so it will be bigger, attracting more investment and definitely more on the international scene five years from now.

Kiran Krishnamurthy, CEO, AI Labs

Which sectors is Bristol’s tech ecosystem strong in? What are you most excited by? What does it lack?
Our tech ecosystem is strong in the aerospace and defense sector. We are excited by the scope and scale of digital transformation opportunities with AI available in this sector. The main weakness in this sector is the slow pace of transformation, especially now due to the pandemic.

Which are the most interesting startups in Bristol?
Graphcore and YellowDog.

What are the tech investors like in Bristol? What’s their focus?
Compared to the U.K. tech sector average, Bristol has a very low proportion of established companies (4% versus 8%), a higher proportion of seed stage companies (42% versus 37%), and a higher death rate (21% versus 17%). It’s a particularly young ecosystem.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
It is possible that people moving out of London will come into Bristol due to the transport links, strong ecosystem and beautiful nature of the city.

Where do you think the city’s tech scene will be in five years?
I wouldn’t be surprised if Bristol turns out to be San Francisco of Europe!

Simon Hall, director, Airway Medical

Which sectors is Bristol’s tech ecosystem strong in? What does it lack?
Bristol is strong in the medtech, veterinary, industrial sectors.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
Others have moved in.

Who are the key startup people in the city (e.g., investors, founders, lawyers, designers)?
SETsquared.

Where do you think the city’s tech scene will be in five years?
We will see massive growth in five years.

Ben Miles, CEO, Spin Up Science

Which sectors is Bristol’s tech ecosystem strong in? What are you most excited by? What does it lack?
Our sector is weak in entrepreneurial ambition among researchers, and so suffers from low rates of deep tech spinout activity from leading universities. We are most excited by the step change in activity we have seen in the past two years and culture shift towards innovation.

Which are the most interesting startups in Bristol?
Rosa Biotech, Albotherm and CytoSeek.

What are the tech investors like in Bristol? What’s their focus?
Medium strength in shallow tech; currently weak in deep tech.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
People are moving in.

Who are the key startup people in the city (e.g., investors, founders, lawyers, designers)?
Spin Up Science, Science Creates and Science Angel Syndicate.

Where do you think the city’s tech scene will be in five years?
Very strong in deep tech with an invested local community of entrepreneurs, incubators and investors.

Rupert Baines, ex-CEO, UltraSoC

Which sectors is Bristol’s tech ecosystem strong in? What are you most excited by? What does it lack?
Bristol is strong in wireless (5G, 60 GHz, etc.), semiconductors (especially processors, AI/ML and parallel architectures), robotics and other hard tech/deep tech.

Which are the most interesting startups in Bristol?
Graphcore, Ultraleap, Blu Wireless and Five AI.

What are the tech investors like in Bristol? What’s their focus?
It’s limited. There are some angels, but few locally focused funds.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
Much the same: People choose to live in Bristol/Bath for quality of life. Much of the work is already external — commuting to London.

Who are the key startup people in the city (e.g., investors, founders, lawyers, designers)?
Nigel Toon, Simon Knowles, Stan Boland, David May and Nick Sturge.

Where do you think the city’s tech scene will be in five years?
Much stronger, with more processor and hardware activity.

Mathieu Johnsson, CEO and co-founder, Marble

Which sectors is Bristol’s tech ecosystem strong in? What are you most excited by? What does it lack?
Bristol has a strong robotics, aerospace and renewables scene. I’m most excited to see how the legacy in aerospace in Bristol will translate to future industry-defining companies. The ecosystem is weak on the investor side, though London VCs are less than a two-hour train journey away.

Which are the most interesting startups in Bristol?
Graphcore, Ultraleap and Open Bionics.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
I believe Bristol will become more attractive.

Who are the key startup people in the city (e.g., investors, founders, lawyers, designers)?
Tom Carter at Ultraleap, and Joel Gibbard at Open Bionics.

Where do you think the city’s tech scene will be in five years?
Getting closer to London and Cambridge.

Chris Erven, CEO, KETS Quantum Security

Which sectors is Bristol’s tech ecosystem strong in? What are you most excited by? What does it lack?
Bristol has a strong biotech, quantum, digital, science-based/deep tech ecosystem. I’m excited by this eclectic city with exciting people that think differently.

Which are the most interesting startups in Bristol?
Any QTEC, SETsquared, or UnitDX members and alumni.

What are the tech investors like in Bristol? What’s their focus?
Very early/nascent, mostly angels.

With the shift to remote working, do you think people will stay in Bristol or will they move out? Will others move in?
Probably move in! Beautiful green spaces around, lots of interesting, independent shops. And (just about) commutable from London.

Who are the key startup people in the city (e.g., investors, founders, lawyers, designers)?
The incubators — QTEC, QTIC, SETsquared and UnitDX; Bristol Private Equity Club; Harry Destecroix.

Where do you think the city’s tech scene will be in five years?
Buzzing. More great startups and VCs moving in.


Source: Tech Crunch