VW plans to launch an all-electric car sharing service next year

Volkswagen Group is launching a car-sharing service called WE that only uses electric vehicles, following the lead of rivals such as Daimler and BMW that have operated their own on-demand car rental services for years.

VW’s car-sharing service will launch in Germany next year and then expand to major cities in Europe, North America and Asia beginning in 2020. The entire fleet will be electric vehicles, VW Group said Wednesday.

“We are convinced that the car sharing market still has potential,” Jürgen Stackmann, Volkswagen’s board member for sales said in a statement. “That is why we are entering this market with a holistic single-source concept covering all mobility needs from the short journey that takes just a few minutes to the long vacation trip.”

The German automaker’s WE business is designed to do more than car-sharing. The WE vehicle-on-demand platform will initially focus on car sharing. But eventually it will include other modes of transportation such as scooters.

Volkswagen showed off two electric concepts in March, an e-scooter it calls the Streetmate and Cityskater, which the company describes as a “last-mile electric street surfer.” Volkswagen sees the WE platform helping connect customers to car-sharing service, rent one of these micro-mobility vehicles, or even pay for parking.

Volkswagen introduced these mobility concepts in March 2018. The Streetmate, on the left, and Cityskater.

The automaker also sees the WE platform connecting to MOIA, the automaker’s mobility company that has launched a ride-sharing service with an all-electric shuttle vehicle. The all-electric car, which made its debut at TechCrunch Disrupt Berlin in December, is designed to provide space for up to six passengers.

The vehicle-on-demand services available on the Volkswagen WE platform will be managed by UMI Urban Mobility International, a subsidiary of Volkswagen AG that began operating in 2018.


Source: Tech Crunch

Deliveroo opens its first shared kitchen in Paris

Food delivery startup Deliveroo opened its first shared kitchen in Paris earlier today. Deliveroo first launched this concept of shared kitchens called Deliveroo Editions in London last year.

As the AFP reports, the company is starting with 12 kitchens in a warehouse in Saint-Ouen, right next to the north-western part of Paris. So far, 8 restaurants have agreed to make a deal with Deliveroo.

You’ll find top restaurants on Deliveroo, such as Blend, Petit Cambodge, Tripletta and Santosha. Restaurants can choose to pay a rent or get started for free and pay higher fees.

Deliveroo customers currently pay €2.50 per order for the delivery in Paris. But the company also gets a cut of the total order amount — customers don’t realize that Deliveroo gets a cut from both sides. It can be as much as 25 or 30 percent of what you order. It’s unclear how much Deliveroo is asking for those new kitchens.

But it makes sense for restaurants that can’t expand indefinitely. Deliveroo lets you accept orders without any additional table.

Gérard Julien / AFP / Getty Images

While there are multiple Blend or Petit Cambodge restaurants in Paris, they can’t deliver everywhere around the city. But opening a new restaurant also represents a huge investment.

That’s why those Deliveroo kitchens can be a good compromise. You can hire a handful of people and see if there’s enough demand in the area. It’s also a good way to differentiate Deliveroo from UberEats and other compatitors.

This is the first site in France. Let’s see if it gets out of control like in the U.K. The Guardian reported that Deliveroo Editions are now tiny containers with no window on car parks. It gets hot in the summer, cold in the winter, and you can hear a ton of mopeds getting orders from those metal boxes.

Deliveroo first started with the idea of helping regular restaurants accept online orders — not just pizza places with existing delivery persons. But containers on a car park don’t sound as attractive.

Gérard Julien / AFP / Getty Images


Source: Tech Crunch

Draper Esprit invests in and partners with German VC Earlybird

Draper Esprit, the publicly-listed VC firm based in London, is putting down further roots across Europe in cooperation with German VC Earlybird.

The “strategic partnership” sees Draper invest an initial €18 million in the latest Earlybird Fund VI (which closed this week at €175 million, above its initial target, apparently), with a commitment to invest a further €17 million or so per annum over the next four years.

The tie up will also mean the two VCs will work together beyond Draper simply being an LP in Earlybird, such as sharing deal-flow and investment resources. In addition, Draper is taking a minority stake in the management company of Earlybird Fund VI via the issuing of new Draper Esprit shares to Earlybird partners.

By putting money into Earlybird Fund VI, Draper has also indirectly acquired a minority stake in a number of startups that have already received investment from the fund. They include Shapeshift, Everoad, Movinga, Fraugster, Medidate, Xain, and Crossengage.

However, explained Draper Esprit CEO and co-founder Simon Cook in a call this morning, the partnership is really about the two firm’s leveraging the brand recognition of their broader and respective portfolios.

In aggregate, both firms say they count 100 “high growth” companies across Europe in their respective portfolios. They include the likes of Revolut, Graze, UI Path, N26, Transferwise, Ledger, Graphcore and Peak Games.

Meanwhile, in a European VC market where almost every local early-stage VC is becoming “pan-European,” the two firms met to discuss how they might work together. As the conversation progressed, it became clear that a more formal partnership fitted the ambitions of both VCs as they both attempt to have a larger presence across the continent.

In a corresponding blog post, Draper Esprit reiterates that it invests in series A, B and beyond, whereas Earlybird is focused on seed stage to series A. So, whilst there is some overlap, it won’t be hard for the two firms to divvy up deals and Cook told me Draper Esprit will share all relevant deal-flow with Earlybird and where it makes sense a partner at either firm will take the lead.

Draper Esprit is already an investor/LP in a number of other European early-stage funds, including pre-seed and seed investor Seedcamp, and Episode 1.

“We invest from offices in the U.K., Ireland, and Paris. They, from Berlin, Munich, Istanbul. We raise money via the public markets and through our EIS and VCT funds, they from traditional private LPs,” adds the VC firm.


Source: Tech Crunch

ISAI closes new $175 million fund

French venture capital firm ISAI just raised a new $175 million fund (€150 million) called ISAI Expansion II. This fund is designed for later stage investments.

The firm says that it managed to raise this fund in less than three months. This is a growth fund and the team plans to invest between $6 million and $35 million per deal (between €5 million and €30 million).

ISAI first started with a seed fund back in 2010. The company raised a $41 million fund (€35 million) and invested in BlaBlaCar shortly after that. The firm has raised a growth fund and another seed fund since then.

If you include today’s new fund, ISAI has raised over $350 million in total (€300 million). So ISAI Expansion II is by far the biggest fund to date.

Limited partners include dozens of successful tech entrepreneurs as well as institutional partners. Many existing investors invested once again in ISAI’s new fund. Some entrepreneurs joined the list for the first time.

With the previous ISAI Expansion fund, the firm invested in nine companies over five years. And ISAI already sold its shares in two companies, Hospimedia and Labelium.

ISAI also says that it can help entrepreneurs using owner buy-out transactions. By creating a holding company, this type of operations lets entrepreneurs cash out, buy shares from existing minor investors and work with a new investor.

More interestingly, ISAI doesn’t necessarily want to focus on Paris-based tech startups. The firm is also looking for investments in more traditional companies that aren’t yet taking advantage of digital opportunities.


Source: Tech Crunch

“Everyone is talking to everyone” — rideshare investor bypasses Uber-Careem rumor

Ride-hailing giant Uber is in talks over a possible merger with Middle East rival Careem, according to Bloomberg — citing three people familiar with the matter.

The report suggests various deal structures have been discussed, although it also says that no deal has been reached — nor may ever be reached, as discussions are ongoing and may not come to anything.

Bloomberg’s sources told it that Uber has said it would need to own more than half of the combined company, if not buy Careem outright.

Among the possible arrangements that have been discussed are for Careem’s current leaders to manage a new combined business, day to day, with potentially both brands being retained in local markets.

Another proposal would have Uber outright acquire Careem.

Bloomberg also reports that Dubai-based Careem is in talks with investors to raise $500 million, which it says could value the ride-hailing company at about $1.5BN. Careem is said to have held early talks with banks about a potential IPO in January.

Neither company has publicly confirmed any talks.

An Uber spokesman declined to comment when asked to confirm or deny talks with Careem.

While a Careem spokeswoman, Maha Abouelenein, told us: “We do not comment on rumors. Our focus remains to build the leading internet platform for the region, from the region. That means expanding to new markets and doubling down on our existing markets by adding new products and services to the platform. We are only getting started.”

Uber has been reconfiguring its global business for several years now, pulling out of South East Asia earlier this year after agreeing to sell its business to local rival Grab — while also taking a minority stake in the competitor.

And Uber did a similar exit deal with another rival — Didi — in China back in 2016.

Last year it also threw its lot in with Yandex.Taxi in Russia, with the pair combining efforts via a joint venture — albeit one which gave Yandex the majority share.

But Uber has been talking up its position and potential in the Middle East — with CEO Dara Khosrowshahi telling a conference in May that he believes it can be the “winning player” in the market, as well as in India and Africa, and vowing it would “control our own destiny” in those markets.

That does not necessary take a Careem-Uber deal off the table, of course, though the (public) claim from Uber is that it’s not willing to settle for a minority stake in the region, as it has elsewhere.

Responding in April to a question from CNBC about whether it might acquire Careem, Uber’s COO Barney Harford ruled out doing any more transactions for minority stakes, saying: “It would be crazy for us as a hypergrowth company to not engage in conversations about potential partnerships. But we’ve been very clear, the markets that we remain in today are core markets for us.”

Harford also claimed Uber was positioned to be able to invest in its chosen growth markets on “an indefinite basis”, thanks to having reached profitability in other markets. It’s also targeting 2019 for an IPO.

In March the Financial Times reported that Uber was in talks with Indian rival Ola over another possible merger — and the newspaper’s sources poured cold water on the notion of Uber taking a minority stake there too.

Of course Uber may not want to have to shrink its already retrenched global ambitions. But it may have to if it gets out-competed in its chosen plum markets.

Hence Careem’s chest-puffing talk about just getting started — provided it can convince its investors to screw their courage to the sticking place and stay on board for the ride.

Investors in Careem, which closed a $500M Series E round a year ago at a $1BN+ valuation, include Saudi-based VC Kingdom Holding, German automaker Daimler, and Japanese tech giant Rakuten — which reportedly led the Series E.

Oskar Mielczarek de la Miel, a managing partner at Rakuten Capital who leads on its mobility investments and is also a Careem board member, declined to comment on the rumors of Uber-Careem merger talks when we asked to chat.

But he was happy to talk up the broader opportunity that investors seen coming down the road for ridesharing, telling us: “If you look at the industry everyone is talking to everyone, and while consolidation is an obvious trend, it won’t be limited to the ridesharing players but draw other tech companies, OEMs and payment companies, to name a few.”

According to Careem’s website, the ride-hailing firm operates in 15 countries, mostly (but not only) across the Middle East, offering its services in around 80 cities in all.

While Uber’s website lists it being active in 15 cities in the Middle East and 15 in Africa.


Source: Tech Crunch

The hottest new space to disrupt is immigration

Tech CEOs and founders are disrupting everything from travel to food, to space, to sleep. Now it’s time to disrupt a process that so many of us have relied on to get where we are today: immigration. According to a study by the National Foundation for American Policy, immigrants have founded more than half of U.S. startup companies that are valued at more than one billion dollars.

With all that is happening around us, now is the time for entrepreneurs to use their playbook for disrupting markets and apply it to immigration as a space — not for a financial upside, but for a more social, human upside.

  • Turning a Problem Into an Opportunity

One of the most important lessons you learn as an entrepreneur is outlining the problem you are trying to solve and turning it into an opportunity.

Economists generally agree that immigration has net positive effects on both the sending and receiving countries. Contrary to popular belief, immigration doesn’t increase crime rates or take jobs awayfrom native workers. In fact, according to The Silicon Valley Competitiveness and Innovation Project Report, almost every major tech hub has more foreign-born workers than domestic ones.

Before solving a problem, we have to agree on the facts. Research shows that people in many western countries greatly overestimate the number of immigrants — in this case, Muslim immigrants — coming into their country. Misinformation makes it difficult to pursue effective solutions.

Source: The Guardian

There’s an opportunity to educate ourselves and instead highlight the economic and innovation opportunity that immigration offers. Immigrants provide access to more talent, more diverse thinking, and more creativity.

Dr. Adrian Furnham, a professor of psychology at University College London who studies immigrants and entrepreneurship said, “What I’ve found is that immigrants not only have the qualities that help any entrepreneurs succeed—including aggressiveness and creative thinking—but they get a big boost because many of the skills they picked up coping with a new world are transferable to the entrepreneurial world.”

  • Rebranding the Word “Immigrant”

Another important step in an entrepreneur’s playbook relates to changing perceptions. Airbnb, for example, had to challenge people’s assumption that opening their home to strangers was a dangerous and risky endeavor. Now, facilitating these types of interactions is an act of hospitality and the beginning of a friendship.

More and more recently, the word “immigrant” has become a bad word. We have the responsibility to rebrand it to mean maker not taker. Look at Hamdi Ulukaya, the Turkish immigrant who created the Chobani yogurt empire. He employs 3,000+ people and has given them ten percent of the shares in the company.

When people research the word “immigrant” online, they need to find Ulukaya’s story. They need to find images of successful, eloquent, and positive entrepreneurs and leaders. That’s why it’s so important to speak as immigrants. To tell the story of how we came here and the challenges we’ve had to overcome. It’s tempting to try to blend in, but we have to infuse the word “immigration” with more positive visuals.

The University of North Carolina at Greensboro (UNCG) established the Center for New North Carolinians (CNNC), with the aim of supporting refugees and immigrants living in the local community. CNNC piloted a STEM club program for female refugees and immigrants using littleBits’ electronic building blocks. Photos from the CNNC STEM Club, courtesy of littleBits

  • Taking [Commercial] Risks

In January 2017 when the Trump Administration’s travel ban was first implemented, littleBits posted a billboard in Times Square that said in English and Arabic: “We Invent the World We Want to Live In.” We wanted people to associate Arabic script with a positive, inclusive message. It was the first time I decided to speak to my background as an Arab and Muslim immigrant. The public response, the impact on our team culture, and the feeling of having stood up for what’s right made me bolder about using my platform to speak out.

That’s why, when the debate around immigration rose up again in response to family separation at the border, I knew I had to say something.

At littleBits, being from “another” place is a reality; we are a company built on diversity. We have close to 20 languages in the office, a multitude of religions, and about 20 percent of us have visas or green cards or were born in other countries. I myself know firsthand the struggle that immigrants face, I’ve had to flee my country of Lebanon three times for my own safety

So, last week I joined leaders from Facebook, Twitter, AirBnB, and Microsoft and I made my voice heard. I announced a donation program and wrote a blog post which opened with: “We at littleBits strive to separate politics from our work. But when something touches human rights, it is no longer about politics. It becomes about justice.”

And you know what? Like most things in America today, the reaction we received was polarizing. Some people said that speaking out was an “admirable move” and that it was clear we were focused on “making a big difference.” On the other hand, 27% of respondents explicitly told us they would be less likely to purchase littleBits products as a result of us speaking out. One loyal customer told us they would now “actively discourage” their children from buying or using our products. Another said they would “throw [their] Bits in the trash.”

And yet, I stand by our statement.

The business risks involved with speaking out are real. But to me, putting a flag in the ground is always worth it. One email, one blog post, one donation at a time, I protect the diversity of my team, my company, and the country in which I reside. History will judge us if we quietly allow our government to strip us of the diversity and innovation that make America so amazing.

As entrepreneurs, we have a platform. Despite the potential costs, we must use this platform to put ourselves out there, to speak out the issues that matter to our country, our businesses, and ourselves. There may be financial downside and yes, it will be more difficult to quantify the human upside, but I for one am willing to take a gamble that net net, it will be a positive.


Source: Tech Crunch

The state of the IPO market

Sixteen months ago, I predicted 2017 would be “the best year for tech IPOs since the dot-com heyday almost two decades ago.” 

Well, that was not exactly what happened — though 2017 was a good year for IPOs compared to previous years. Despite strong public markets, where we saw the NASDAQ jump 28 percent and the Dow by 25 percent — there were 59 VC-backed IPOs, which was an improvement over the 41 we had in 2016 (2018 NVCA Yearbook) — last year was far from the torrent I expected. One key reason was concerns by private companies that public valuations might not give private investors a solid gain. At the same time, there was abundant private capital for those companies, so IPOs were not critical for raising capital.

2018 IPOs are off to a strong start

The highly anticipated and successful IPO by Dropbox (DBX) in March and Spotify’s (SPOT) direct listing in April have put a spotlight on the U.S. tech IPO market. Four recent tech IPOs — Avalara (AVLR), Carbon Black (CBLK), Smartsheet (SMAR) and DocuSign (DOCU) — all revised the filing ranges upward, priced at or above the high-end of the new range, and are trading up an average of 79 percent since their debuts in late April through mid June. This is consistent with tech IPOs so far this year, which have traded up 92 percent.

Halfway through 2018, VC-backed IPOs in the U.S. have reached $6.9 billion, second only to 2012 when Facebook made its debut. I am feeling bullish about the IPO environment over the next 18 to 24 months, with some new factors that merit close attention. As IPOs take off, we will also see an acceleration of M&A.

So what’s in store for the rest of 2018?

We see a pipeline of later-stage companies with strong fundamentals, and pent-up investor demand for fast growth investments. The pipeline of later-stage companies seems larger than ever, and tech IPOs are the strongest among industry sectors so far this year — and at double the pace of last year, according to Renaissance Capital. High-profile companies like Lyft, Sonos, Eventbrite and Airbnb are all in various stages that signal they may go public.

When venture-backed U.S. technology companies go public, it opens the doors for others.

Valuations, though still sky-high in some cases, may not be a roadblock. Some people were worried about whether these companies could sustain the valuations and be able to achieve a strong exit. We have quite a few vivid examples of highly valued private companies that marched forward to an IPO and trade at levels giving good returns to their private investors.

More companies are starting to realize that it is a good time to go public. Even with some temporary pullbacks like Facebook after the Cambridge Analytica incident, Zuck and team went on to blow out first quarter earnings. The markets are still at great levels by historic standards.

A very strong exit environment is good for the VC ecosystem. When venture-backed U.S. technology companies go public, it opens the doors for others.

Strong IPO market will fuel M&A

Robust M&A and IPO cycles tend to flow together, and we seem to be riding that wave already. The last strong joint cycle was in 2014, which saw 124 IPOs and 941 acquisitions (NVCA).

The new tax laws have lowered corporate tax rates, encouraged repatriation of massive offshore cash held by tech companies and brought the cash positions of large tech companies up to the highest levels they have ever been. Not only will there be an uptick in the number of acquisitions, but in the size of transactions as large tech companies become active buyers. Salesforce’s $6.5 billion acquisition of MuleSoft, which had gone public last year, and Microsoft’s acquisition of GitHub for $7.5 billion, are good examples. Expect Amazon, Facebook, Google and Microsoft to continue to be active.

We are seeing a number of acquisitions of private tech companies that are realistic IPO candidates. The most vivid example of this was the acquisition of AppDynamics by Cisco last year for $3.7 billion, which was announced at the “11th hour” before what would have been a successful IPO by AppDynamics (which had completed its roadshow and was poised to price).

An IPO filing, even the prepping for an IPO, can serve as a catalyst for an acquisition. The big tech acquirers are tracking all the great young private tech companies, and when an IPO is imminent, it can motivate them into action to acquire a company that is a great strategic fit.

Just recently, Glassdoor was acquired by Recruit Holdings for $1.2 billion and Walmart bought 77 percent of Flipkart for $16 billion — either company could have gone public, but once companies are either on file and preparing for an IPO or make a confidential filing, it becomes a catalyst for potential buyers that have been tracking them for a while to make an acquisition.

Not only will we see acquisitions by the big technology companies, but more traditional-sector companies as well. For example, in October, General Motors acquired Strobe, a startup focused on driverless technology, building on its earlier buy of Cruise Automation. Walmart’s acquisition of Flipkart, the Indian e-commerce giant, is another example.

Technology opportunity follows public demand

Growing concerns about privacy and security have created a lot of interesting opportunities, and emerging companies in those sectors are achieving scale rapidly. We are seeing a lot of demand for companies using technology to solve cybersecurity issues; for example, Zscaler saw its shares more than double on its first day of trading back in March. 2018 is projected to be a strong year for cybersecurity IPOs, with companies like Cloudflare, Illumio and Lookout.

Startups now have more options, including remaining private.

We have seen this movie before — back in the early 2000s when the tech industry was climbing its way out of the dot-com bust, cybersecurity companies were among the first to gain traction, along with startups using technology to help Fortune 500 companies cut costs — an early standout was VMware, which pioneered server virtualization and was quickly gaining market share before it was acquired by EMC in 2004.

Regulatory easing

The current administration’s relaxation of the JOBS act has made the regulatory environment more benign than it has been for a long time, which could make things easier for companies to go public.

Larger private companies can now use the confidential filing provision of the JOBS Act that smaller tech companies have had access to over the last few years. The SEC is also proposing to allow the larger private equity companies to use the test-the-waters provision of the JOBS Act. These provisions dramatically reduce any perceived risk of a disappointing IPO.

New exit opportunities via private equity and direct listings

Startups now have more options, including remaining private. That said, times are even more interesting for private companies looking for liquidity. Private equity firms and sovereign wealth funds are coming into the game and buying up tech startups, thereby providing another exit opportunity.

Recently, Spotify turned heads with its unusual IPO by doing a direct listing. For companies that do not need primary capital and are already well-known by investors, the direct listing is a realistic option. For a company with these characteristics, the biggest reason a company would do a direct listing is to save on fees and redirect who benefits from the first day pop.

There is a lot of speculation whether more companies will choose a direct listing over the traditional IPO and how it impacts VC. I believe it is beneficial for the VC ecosystem as it is another way for companies to go public. However, I do not expect too many companies will follow the direct listing approach Spotify took, as they were in a somewhat unique position.

It’s exciting to see alternatives to the traditional IPO, and the second half of this year into 2019 will likely see a boom of IPOs. Going public enables startups to provide liquidity for employees and investors, as well as generate much-needed publicity and credibility, which in turn bring customers and revenue. It’s an exciting time to be in the technology VC space following a year of unexpected drama.


Source: Tech Crunch

Win cash and prizes in the Virtual Hackathon at Disrupt SF 2018

Our Startup Battlefield pitch competition may be legendary, but it’s not the only throw-down going on at TechCrunch Disrupt SF 2018 on September 5-7. This year, in honor of the largest Disrupt event ever, we’ve launched the Virtual Hackathon. Thousands of the best developers, coders and hackers will compete — from anywhere in the world — to build tech products that address and solve a range of challenges.

And we have even more contests, cash and prizes to share with you — more on that in a minute. Right now, you better sign up and get moving, because the deadline to submit your hacks is August 2.

Our team of judges will review every eligible project and assign each submission a score between 1-5. Score criteria include the idea quality, technical implementation and potential market impact.

The 100 highest-scoring teams will receive up to five Innovator Passes to attend TechCrunch Disrupt SF 2018. They can enjoy everything the show has to offer, including (for starters) Startup Alley, incredible speakers from four unique stages, Startup Battlefield, Q&A sessions and the TC After Party — the perfect place to network in a fun atmosphere.

The teams who make the top 30 will move on to compete in the semifinals at Disrupt SF, where they will demo their creation to a team of judges. Those judges will then select 10 teams to go on to the finals, where they will step onto The Next Stage and showcase their baby to an audience of thousands of Disrupt SF attendees.

Finally, one team will rise above the rest, win the $10,000 grand prize and become the first-ever TechCrunch Disrupt Virtual Hackathon champ.

OK, let’s get back to the bit about more contests, cash and prizes. You also can win some sweet cash from contests sponsored by BYTON, TomTom and Viond, plus Visa and HERE Mobility.

The Virtual Hackathon takes place at TechCrunch Disrupt SF 2018 on September 5-7, but you have only until August 2 if you want your hack to be eligible. Don’t miss the fun and excitement. Sign up to participate in the Virtual Hackathon and start hacking today.


Source: Tech Crunch

The brains behind one of marketing’s biggest hits are out to reshape the industry again… with direct mail

Postie, a new Los Angeles-based startup, has a vision for the future of advertising and marketing — and it’s direct mail.

Founded by some of the men responsible for the biggest hits in online marketing (like the Dollar Shave Club commercial that launched what became a billion-dollar acquisition) think that it’s time to take technology where it’s never gone before — into targeted, direct mail campaigns using the best ad-targeting that money can buy.

Postie uses a combination of online data collection and an on-demand print and mail technology to give its customers turnaround times on print orders in as little as 24 hours, and what the company boasts is the equivalent of online ad-targeting.

Using the service, customers can access demographic, interest and behavioral data of more than 320 million people; can use retargeting to provide direct mail campaigns; and integrate with existing customer relationship management tools.

The company was founded by Dave Fink and Jonathan Neddenriep, two former principals at the startup studio and early-stage investor, Science. At the early-stage investment firm, Fink said he was responsible for marketing activities for companies including Dollar Shave Club, DogVacay, SpringRole, Wishbone and Hello Society over the six years he worked at the company. Neddenriep served as the chief technology officer for Science — a role he’s continuing at Postie.

Where once Fink focused on reaching the widest possible audience with a viral message that could cut through the noise of online advertising, the scale of his messaging is now much smaller, even if the scope of the market he’s trying to capture remains just as vast.

“A highly targeted physical piece of mail, especially in today’s ephemeral world, elicits an emotional response that goes above and beyond what is possible online,” says Fink, in a statement. “It’s now possible to open up a whole new scalable media channel by leveraging the same data driven insights and quantitative approach as digital.”

According to study from the Direct Marketing Association, direct mail campaigns rang up $46 billion from advertisers and companies in 2014, and Fink and his co-founder are hoping that number will climb.

They aren’t the only ones. Postie has raised $3.5 million in seed funding from the Los Angeles-based firms Bonfire Ventures and Crosscut Ventures to expand its business (maybe through direct marketing?).

 


Source: Tech Crunch

Anthony Levandowski is back with a new self-driving startup, called Kache.ai

This is a comeback story. Or at least the first chapter to one.

Anthony Levandowski, the former Google engineer and serial entrepreneur who was at the center of a trade secrets lawsuit between Uber and Waymo, is back. And he is connected to an autonomous trucking company that is still in stealth mode, TechCrunch has learned.

The company, called Kache.ai (pronounced like cache), has kept a low profile since paperwork registering it as a corporation was first filed with the California Secretary of State nearly seven months ago. And at first glance, there’s no indication that Levandowski is even tied to the company.

Corporation documents, filed with the state, list a “Thomas S. Lee Jr” as its president. A search on LinkedIn showed Lee, a software developer whose previous experience includes co-founding two San Diego-based companies, as president of Kache.ai. Since reaching out to Kache.ai, all references of the company have been removed from LinkedIn.

However, the address listed on the corporation’s state filing tells a different story. Kache.ai’s documents filed with the state lists an address in St. Helena, California. The property is owned by Levandowski’s father and stepmother, according to property tax and title records reviewed by TechCrunch. Levandowski’s stepmother Suzanna Musick was CEO of another one of Levandowski’s startups called 510 Systems.

The company didn’t return calls for comment. However, other unnamed sources within the global autonomous vehicle ecosystem confirmed to TechCrunch that Levandowski is connected to the company.

Little is known about Kache.ai. The word “Kǎchē” in Chinese means truck, which could signal a connection to China. Although TechCrunch was not able to independently verify if Kache.ai has any outside partners or backers yet.

The company’s website, which at one point listed an email contact for Lee and described its mission, is now blank except for a single image of a jagged mountain ridge. TechCrunch was able to review and capture screenshots of the website prior to the changes, one of which is shown above. At that time, the Kache.ai website said the company was working on “the next generation of autonomous vehicle technology for the commercial trucking industry.” The employment opportunities section of the now erased website once said:

“We’re developing the solution for the next level of on-the-road self-driving trucks. Our development philosophy is based on a fast moving, very aggressive agile team approach and we’re seeking both software and hardware engineers that thrive in such an environment.”

It appears the company is hiring at every level, from mapping and database experts to people with robotics and simulation skills. The website also noted that the company is looking for software engineers with experience in convolutional neural networks as well as computer vision and machine learning algorithms.

The website said Kache.ai is located in the San Francisco area.

A not so unlikely return

To outsiders, Levandowski’s return to the autonomous vehicle stage might have seemed improbable just a year ago. To former colleagues and others who know him, it was inevitable. However, outside a few vague remarks that Levandowski was “working on something,” his return (until now) was mostly based on rumor and speculation.

Levandowski is part of the braintrust of autonomous vehicle technology that for years was largely confined to academic research.

That began to change on March 13, 2004 when 15 teams brought their autonomous vehicles to the desert outside of Barstow, California. They were there to compete in the Grand Challenge, a 142-mile race sponsored by the Defense Advanced Research Projects Agency to encourage development of autonomous vehicle technology. Levandowski’s “blue team” had the distinction of being the only one to bring a two-wheeled vehicle, an autonomous motorcycle they called Ghostrider. The vehicle is now at the Smithsonian National Museum of American History.

And while not a single team completed the course, it prompted DARPA to hold two more autonomous vehicle challenges. The endeavor fueled the interest and passion of a few dozen people who would later go onto to lead Google’s self-driving project, head AV R&D efforts at large companies, or looks for ways to move the autonomous vehicle needle forward. Levandowski was one of them.

In 2007, Levandowski joined Google, where he was one of the principal architects of Google Street View. The engineer had other projects too, notably a startup called 510 Systems that made and sold sensor systems to his employer, Google. 510 Systems was a pioneer of using light ranging and detection systems known as LiDAR to make maps. Google quietly bought 510 Systems and another one of his startups Anthony’s Robots in 2011.

(Photo: ANGELO MERENDINO/AFP/Getty Images)

A meteoric rise and fall

After nearly nine years at Google, Levandowski left the company with fellow Google employee Lior Ron. The pair founded Ottomotto, which later became Otto, along with Don Burnette and Claire Delaunay.

The timing couldn’t have been better. The race to deploy autonomous vehicles had heated up, creating a frenzied winner-takes-all environment. Competition between companies to attract talent pushed up salaries and incentives. For those, who had been on the ground floor at Google’s self-driving project and other high-profile startups and academic positions, the world was theirs for the taking. The venture capital community didn’t just take note; they poured money into the effort. Large automakers and Tier 1 suppliers looking for an edge started snapping up startups brimming with self-driving technology talent.

Uber’s purchase of Otto for an eye-popping $680 million in August 2016 — just months after its founding — was just one example of the feeding frenzy. As part of the acquisition, Levandowski became head of Uber’s self-driving car research. (Documents filed as part of the lawsuit between Waymo and Uber suggest the pay out might have been as low as $220 million.)

But the buzz around the size of the Otto deal would soon be replaced with a different, more unwelcoming kind of attention.

Nine months after the acquisition, Uber was embroiled in a trade secrets lawsuit with Waymo, the former Google self-driving project that spun out to become a business under Alphabet. And Levandowski was out of a job.

The lawsuit, filed against self-driving truck startup Otto and its parent company Uber in February 2017, alleged patent infringement and stealing trade secrets. The lawsuit made a number of allegations specifically against Levandowski, including that he downloaded more than 14,000 confidential and proprietary files shortly before his resignation. Waymo contended that Otto and Uber were using key parts of its self-driving technology, specifically related to its light detection and ranging radar. This technology, known in the industry as LiDAR, measures distance using laser light to generate highly accurate 3D map of the world around the car.

The case went to trial in February 2018. After days of titillating testimony, including from former Uber CEO Travis Kalanick, the two parties reached a settlement agreement. Uber agreed to not incorporate Waymo’s confidential information into their hardware and software. Uber also agreed to pay a financial settlement that includes 0.34% of Uber equity, per its Series G-1 round $72 billion valuation. In other words, Waymo got about $244.8 million in Uber equity.

Six weeks later, Uber would be grappling with the tragic fatal accident involving one of its self-driving test vehicles in Tempe, Arizona.

The other three Otto founders have all left Uber as well. Burnette, the last one to depart, founded an autonomous vehicle company in April called Kodiak Robotics with Paz Eshel, who formerly worked at Battery Ventures.

Kache.ai next chapter

Levandowski’s return will likely raise questions, and possibly even anger, people within Uber and Waymo. However, it’s unclear if Kache.ai will even use LiDAR, the sensing technology at the heart of the trade secrets lawsuit and one of Levandowski’s talents.

Some autonomous trucking startups have avoided LiDAR except for use in mapping because they argue that the sensors aren’t practical on a heavy duty autonomous truck traveling on highways at speeds in excess of 60 miles per hour. Instead, autonomous trucking companies like TuSimple use multiple cameras, which have better resolution. If Kache.ai bypasses LiDAR —which at this point is unclear — it could help alleviate IP concerns and attract investors.

For now, the beginning of Kache.ai’s story is tied to Levandowski’s past, which is marked by engineering prowess and ingenuity as well as legal and ethical missteps. The remaining chapters will reveal whether the unique value prop of what Kache.ai is developing is strong enough to render all of that moot.


Source: Tech Crunch