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  • StrictlyVC: April 24, 2015

    Good Friday morning, everyone! We hope you’re in for a terrific weekend.:)

    Quick note: Tickets are nearly sold out to our May 13 INSIDER event with Zenefits CEO Parker Conrad and many others. If you were going to grab a ticket, now’s the time. We’ll send a separate note to those of you who’ve RSVP’d at our Splash page.

    (Psst, if you’re reading this online, here’s an easier-to-read version of this morning’s email.)

    —–

    Top News in the A.M.

    It’s over. Comcast has terminated its $45 billion Time Warner Cable merger agreement.

    A new version of Google Glass is in the works and will be out soon, the CEO of Italian eyewear maker Luxottica said this morning.

    —–

    Need a Breather? This VC is Hoping So

    This week, StrictlyVC chatted with Steve Schlafman, a principal with RRE Ventures in New York who spends a fair amount of his time considering on-demand startup models. Among the deals he has led for RRE are Managed by Q, a 1.5-year-old, New York-based company that provides office cleaning and services like restocking to small businesses; and Shuddle, a year-old company in San Francisco that employs women to shuttle around children on behalf of their busy parents. (The proposed promise: the ride is safer than an Uber.)

    Along with Vayner/RSE, Schlafman also led a $6 million Series A last September inBreather, a company that provides on-demand rooms in cities so that visitors can pop in to relax with friends, finish a speech, or maybe make some calls that would be harder to execute from a crowded coffee shop.

    It may be Schlafman’s boldest, and riskiest, bet. Getting enough repeatable business to make profitable use of Breather’s rooms — which the company leases — would seem to be an enormous challenge. Breather also operates in a crowded sector with more than a handful of competitors, including LiquidSpace, which also invites users to find and book private spaces to rent by the hour, day or longer. (It’s raised more than $26 million, including from Shasta Ventures, Floodgate and Greylock Partners.)

    Schlafman, who says Breather might look for capital later this year, isn’t concerned, telling us that it’s all in the execution. Here’s more from our chat, edited for length.

    You call Breather the craziest idea you’d ever seen, yet you invested anyway. Why?

    I became a user, and they’ve just completely nailed the experience of creating a fourth space. Think about it. For a long time, people had their home space and work space and there wasn’t much in between. Then along came Starbucks and cafes and public spaces that had multifunctional uses, but we believe that people need another space, so when you’re in [San Francisco’s] SOMA [neighborhood], for example, and you have two hours, you can pull out your phone, book a room, and have a business meeting or [quietly decompress].

    A lot of startups now offer people an alternative to Starbucks.

    A lot of companies are focused on coworking on demand, including LiquidSpace, PivotDesk and WeWork; they’re very much catering to a business user. Breather is building a tightly controlled experience that’s aesthetically pleasing. You can sell to a business user or a consumer.

    How many rooms does it currently offer users?

    It has 60 spaces right now – something like 15 in San Francisco, almost 40 in New York. The company just opened in Boston, too. What’s nice is that as soon as they put a space on the map, it gets to breakeven. What I love about [cofounder and CEO] Julien [Smith] is that he’s scrappy. He isn’t a Silicon Valley-type operator in a tweed jacket. He’s a child of the Internet who believes in testing, including when it comes to developing relationships with landlords. I’m not sure he’d want me to spill the beans, but he’s looking at asset-light models where Breather isn’t necessarily taking on the lease.

    How many people are these rooms supposed to accommodate?

    These are fairly small rooms, with a couch and a desk and a conference table with chairs and WiFi, and you can fit 5 to 10 people in them, which is great as companies can use it for overflow space or small offsite events, instead of spending a sh_tload of money on a hotel. It’s hard to wrap your head around the concept, but once you use one, you get it.

    That’s a big challenge, though, getting people to think about heading somewhere new. I’d also think establishing repeatable business would be tricky. How is the company juggling that?

    They’ll be introducing a smart pricing algorithm, so that not every hour is created equally. [It’ll be] upwards of $35 to $40 an hour during peak times. You’ll also be able to unlock certain services eventually. In the meantime, based on early cohorts, the payback is very fast on our marketing spend.

    How does Breather ensure that there’s nothing funky going on in these rooms?

    Trust is a huge factor. Every single time a room is cleaned – and we partner with a well-known cleaning service right now — there are reviews coming from the cleaning side, as well as from [the next] consumer.

    Will the spaces always run on the smaller side?

    That’s where we think there’s a good opportunity to build a completely new category. The idea is to have a breather in every city in the world. Will that happen in the next year or two? I don’t know, but once I tried it, I was sold.

    —–

    New Fundings

    Dash Robotics, a two-year-old, Sunnyvale, Ca.-based maker of hand-held, bio-inspired robots, has raised $1.4 million in seed funding led by IronFire Capital. VentureBeat hasmore here.

    Datical, a three-year-old, Austin, Tx.-based company that creates database schema automation software, has raised $2.25 million in funding, extending its total Series A round to $5.9 million. The new funding was led by Mercury Fund, with participation from Austin Ventures and other investors.

    EatShopLove, a year-old, Bangalore, India-based fashion e-commerce company, has raised $3.5 million in angel funding from an unnamed investor in London. The company had previously raised $1 million in seed funding last fall. More here.

    Ferris, a three-year-old, Santa Monica, Ca.-based company whose app makes mobile videos more watchable — and shareable —  has raised $2 million in seed funding led by Upfront Ventures, with participation from Machinima founder Allen DeBevoise and other investors. TechCrunch has the story here.

    GoFundMe, a seven-year-old, San Diego-based crowdfunding and fundraising startup, is reportedly raising its first institutional round of funding, at a $500 million valuation, with “Accel Partners” in “the mix,” reports TechCrunch. More here.Happay, a three-year-old, Bangalore-based startup that makes software to manage business expense reports, has raised $500,000 in seed funding from AngelPrime. Tech In Asia has more here.

    Headout, a year-old, Mountain View, Ca.-based on-demand “mobile concierge” that helps travelers book local experiences at discounted prices, has raised $1.8 million in seed funding from Version One Ventures, Nexus Venture Partners, 500 Startups and Arena Ventures, along with individual investors, including WhatsApp vice president Neeraj Aroraand entrepreneur-investor Rick Marini. More here.

    iContainers, an eight-year-old, Barcelona, Spain-based freight forwarding company offering online ocean and air quotes and bookings, recently raised $1.4 million in Series B funding, including from Kibo Ventures, Vitamina K, and GrupoRomeu. More here.

    StrataCloud, a year-old, Atlanta, Ga.-based company that sells infrastructure management software for virtual, converged and cloud environments, has raised $3.4 million in Series A funding from Hallett Capital, BLH Venture Partners, Mosley Ventures and BIP Capital.

    TrackTik, a five-year-old, Montreal, Canada-based company that sells security operations management software, has raised $1.5 million in seed funding led by iNovia Capital, with participation from Klass Capital. More here

    ——

    New Funds

    Institutional Venture Partners has officially closed its newest fund with $1.4 billion, making it the second largest venture fund formed in the U.S. this year (right behind NEA’s mammoth new fund). Forbes has much more here.

    —–

    IPOs

    Apigee, an 11-year-old, San Jose, Ca.-based software platform that sells enterprise tools that helps companies build and scale apps, began trading publicly this morning. The company had priced its shares at $17, the midpoint of an expected range of $16 to $18, giving it a valuation of $494.5 million. The company had raised at least $173 million over the years, shows Crunchbase. Norwest Venture Partners is its largest shareholder with a 26.2 percent stake; Bay Partners meanwhile owns a 18.6 percent stake. More here.

    Laureate Education, the largest for-profit college network in the world, is interviewing banks for a $1 billion IPO, according to Bloomberg sources. The company was taken private in a management-led $3.8 billion buyout in 2007, backed by an investor group including KKR and Citigroup. It would be the the biggest school chain to go public, notes Bloomberg.

    Renaissance Capital offers a look at next week’s IPO calendar.

    —–

    Exits

    ClassPass, a two-year-old, New York-based subscription service for unlimited monthly fitness classes, has acquired two-year-old, San Francisco-based FitMob — a direct competitor — for undisclosed terms. ClassPass has raised more than $54 million, including from CRV, General Catalyst Partners, and Slow Ventures. FitMob had raised $14.8 million from investors, including QueensBridge Venture Partners, Silicon Valley Bank, and Mayfield Fund, where Fitmob CEO Raj Kapoor was formerly a managing director. TechCrunch has more here.

    The publicly traded cloud business software company Netsuite is paying $200 million to acquire Bronto Software, a 13-year-old, North Carolina-based marketing software company. The deal is NetSuite’s sixth acquisition and will be its largest yet. Forbes has more here.

    Publicly traded Synopsys is acquiring the 14-year-old, Oulu, Finland-based software security company Codenomicon, which had long ago raised $3.6 million from Prime Ventures and Eqvitec Partners Oy. Terms of the deal weren’t disclosed.

    —–

    People

    The file-sharing company BitTorrent laid off 40 of its 150 U.S.-based employees yesterday as part of an effort to streamline its operations and narrow its focus to a smaller suite of products. Buzzfeed has the news here.Zynga COO Clive Downie has resigned from the social gaming company and is joining the game development platform Unity Technologies as chief marketing officer, reports VentureBeat. Downie was hired by Don Mattrick, who resigned as CEO of Zynga two weeks ago. Unity is led by John Riccitiello, who says he goes back “a long ways” with Downie. (The two were executives together at Electronic Arts.)

    Robert Heath, a 64-year-old software engineer rejected for a job at Google, is suing it for age discrimination, saying that when he was interviewed for a job with the company, the recruiter called 10 minutes late, was barely fluent in English, and conducted the interview over a malfunctioning speakerphone, which made it hard for the two to communicate. According to Heath’s attorneys, “Google intentionally did not allow Mr. Heath to communicate or demonstrate his full technical abilities, and did not have a sincere interest in hiring Mr. Heath.” Several years ago, Google settled a separate age discrimination claim. The Recorder has more here.

    Kleiner Perkins Caufield & Byers is offering to let Ellen Pao — the former junior partner who famously lost her gender discrimination suit against the firm last month — off the hook if she promises not to pursue the case further. Otherwise, Kleiner will ask her, as the losing party in the suit, to repay the $972,815 in witness fees, deposition and court reporter costs that it spent on the case. The New York Times has more here.

    Amazon revealed yesterday that its Amazon Web Services unit is a nearly $5 billion business and is profitable.

    —–

    Detours

    Bizarre trends in Taiwanese pet grooming.Haunting photos of abandoned factories.

    How to set up your Apple Watch in 16 steps.

    Retail Therapy

    A look inside the Four Season’s private new jumbo jet.

    The Phantom Flex4K full-featured digital cinema camera. It’ll cost you an arm and a leg, but it can do this!

    Connie

    April 24, 2015
    Morning Summary
  • Need a Breather? This VC is Hoping So

    1c44283.how-iphone-spacesThis week, StrictlyVC chatted with Steve Schlafman, a principal with RRE Ventures in New York who spends a fair amount of his time considering on-demand startup models. Among the deals he has led for RRE are Managed by Q, a 1.5-year-old, New York-based company that provides office cleaning and services like restocking to small businesses; and Shuddle, a year-old company in San Francisco that employs women to shuttle around children on behalf of their busy parents. (The proposed promise: the ride is safer than an Uber.)

    Along with Vayner/RSE, Schlafman also led a $6 million Series A last September in Breather, a company that provides on-demand rooms in cities so that visitors can pop in to relax with friends, finish a speech, or maybe make some calls that would be harder to execute from a crowded coffee shop.

    It may be Schlafman’s boldest, and riskiest, bet. Getting enough repeatable business to make profitable use of Breather’s rooms — which the company leases — would seem to be an enormous challenge. Breather also operates in a crowded sector with more than a handful of competitors, including LiquidSpace, which also invites users to find and book private spaces to rent by the hour, day or longer. (It has raised more than $26 million, including from Shasta Ventures, Floodgate and Greylock Partners.)

    Schlafman, who says Breather might look for capital later this year, isn’t concerned, telling us that it’s all in the execution. Here’s more from our chat, edited for length.

    You call Breather the craziest idea you’d ever seen, yet you invested anyway. Why?

    I became a user, and they’ve just completely nailed the experience of creating a fourth space. Think about it. For a long time, people had their home space and work space and there wasn’t much in between. Then along came Starbucks and cafes and public spaces that had multifunctional uses, but we believe that people need another space, so when you’re in [San Francisco’s] SOMA [neighborhood], for example, and you have two hours, you can pull out your phone, book a room, and have a business meeting or [quietly decompress].

    A lot of startups now offer people an alternative to Starbucks.

    A lot of companies are focused on coworking on demand, including LiquidSpace, PivotDesk and WeWork; they’re very much catering to a business user. Breather is building a tightly controlled experience that’s aesthetically pleasing. You can sell to a business user or a consumer.

    How many rooms does it currently offer users?

    It has 60 spaces right now – something like 15 in San Francisco, almost 40 in New York. The company just opened in Boston, too. What’s nice is that as soon as they put a space on the map, it gets to breakeven. What I love about [cofounder and CEO] Julien [Smith] is that he’s scrappy. He isn’t a Silicon Valley-type operator in a tweed jacket. He’s a child of the Internet who believes in testing, including when it comes to developing relationships with landlords. I’m not sure he’d want me to spill the beans, but he’s looking at asset-light models where Breather isn’t necessarily taking on the lease.

    How many people are these rooms supposed to accommodate?

    These are fairly small rooms, with a couch and a desk and a conference table with chairs and WiFi, and you can fit 5 to 10 people in them, which is great as companies can use it for overflow space or small offsite events, instead of spending a sh_tload of money on a hotel. It’s hard to wrap your head around the concept, but once you use one, you get it.

    That’s a big challenge, though, getting people to think about heading somewhere new. I’d also think establishing repeatable business would be tricky. How is the company juggling that?

    They’ll be introducing a smart pricing algorithm, so that not every hour is created equally. [It’ll be] upwards of $35 to $40 an hour during peak times. You’ll also be able to unlock certain services eventually. In the meantime, based on early cohorts, the payback is very fast on our marketing spend.

    How does Breather ensure that there’s nothing funky going on in these rooms?

    Trust is a huge factor. Every single time a room is cleaned – and we partner with a well-known cleaning service right now — there are reviews coming from the cleaning side, as well as from [the next] consumer.

    Will the spaces always run on the smaller side?

    That’s where we think there’s a good opportunity to build a completely new category. The idea is to have a breather in every city in the world. Will that happen in the next year or two? I don’t know, but once I tried it, I was sold.

    (Readers: We’ll be talking with Schlafman and other investors about the fast-changing on-demand economy next month in San Francisco.)

    Connie

    April 24, 2015
    Entrepreneurs, Investment Opportunities
  • StrictlyVC: April 23, 2015

    Hi, everyone, happy Thursday! We’ve run out of time for a column this morning, but more tomorrow! (Psst, web visitors, here’s an easier-to-read version of this morning’s email.)

    —–

    Top News in the A.M.

    When Amazon reports its quarterly earnings today, it will, for the first time, provide financial information on an important division: Amazon Web Services.

    The Apple Watch arrives in stores tomorrow. (Just not Apple stores.)

    —–

    New Fundings

    3D Robotics, the six-year-old, San Diego-based personal drone manufacturer co-founded by former Wired magazine editor Chris Anderson, has added $14 million to its Series C round led by WestSummit Capital, with participation from SanDisk Ventures and Atlantic Bridge Ventures. At February’s end, the company had announced $50 million in Series C funding led by Qualcomm. The company has now raised roughly $100 million in funding, including from Ooga Labs, True Ventures, Foundry Group, SK Ventures, O’Reilly AlphaTech Ventures, and Mayfield Fund.BurstIQ, a Colorado Springs, Co.-based technology advisory services company, has raised an undisclosed amount of funding from the Colorado Springs-based firm PV Ventures.

    Chef, a 6.5-year-old, Seattle-based company that allows its users to automate how they build, deploy, and manage their infrastructure, has raised $32 million as part of a larger Series E round that’s expected to close later this year. The company has now raised $63 million altogether, including from Scale Venture Partners, Citi Ventures, Battery Ventures, DFJ and Ignition. Total funding now stands at $63 million. GeekWire has more here.

    Craftsvilla, a four-year-old, Mumbai, India-based, Etsy-like e-commerce site for ethnic products, has raised $18 million in Series B funding led by Sequoia Capital, with participation from Nexus Venture Partners, Lightspeed Venture Partners and Global Founders Capital. TechCrunch has more here.

    Deep Information Sciences, a five-year-old Waltham, Ma-based database science startup, has raised $8 million in Series A funding led by Sigma Prime Ventures and Stage 1 Ventures, with participation from AlphaPrime Ventures. The company has now raised $18 million altogether.DNAnexus, a six-year-old, Mountain View, Ca.-based company that says it accelerates the development of genomic medicine through a global network for sharing and managing genomic data and tools, has raised $15 million in Series D funding from WuXi PharmaTech, a laboratory and manufacturing services company. Genomeweb has more on the deal here.

    Folsom Labs, a nearly four-year-old, San Francisco-based developer of a PV design tool that simplifies the process of engineering and selling solar projects, has raised $1 million in funding from individual investors, includng REC Solar founder Tim Ball. More here.

    Funding Circle, a six-year-old, London-based online marketplace that lets individuals and organizations to loan money to small businesses online, has raised a whopping $150 million in funding led by DST Global, BlackRock, and Temasek Holdings. The company has now raised $300 million altogether, including from Accel Partners, Union Square Ventures, Ribbit Capital, and Index Ventures.

    Jounce Therapeutics, a two-year-old, Cambridge, Ma.-based company that’s developing cancer immunotherapies that harness individuals’ immune systems, has raised $56 million in Series B funding from Wellington Management Company, Redmile Group, Nextech Invest, Pharmstandard International, Cormorant Asset Management, Omega Funds,Casdin Capital, Foresite Capital Management and an undisclosed investment fund. The company had launched out of Third Rock Ventures in early 2013 with $47 million in Series A funding.

    Knotch, a three-year-old, San Francisco-based still-in-beta company that’s building what it hopes will become a  standard digital means of tracking the impact of advertising content, has raised $4 million from Greylock Partners, Allen & Co. and Stanford University, as well as individual investors, including entrepreneur Michael Birch. The WSJ has more here.

    LiveStories, a two-year-old, Seattle-based company whose software makes it easier for governments and nonprofits to analyze and visualize data, has received $1 million in seed funding from Founder’s Co-op and Social Leverage among others. More here.

    Minube, an eight-year-old  Madrid, Spain-based travel startup whose site and mobile app help travelers decide where to go, then plan their trips and share photos and reviews afterward, has raised $1.6 million in funding led by FIDES, with participation from earlier investors Kibo Ventures and Bonsai Venture Capital. The company has now raised $2.9 million altogether, shows Crunchbase.

    Mpirica Health, a year-old, Bellevue, Was.-based  healthcare startup that scores surgeries at more than 4,800 U.S. hospitals based on a methodology developed by Harvard-trained cardiologist Michael Pine (the scores reveal relationships between procedure cost and quality), has raised $1.6 million in Series A funding from McQuinn Trust. Geekwire has more here.

    New Signature, a 12-year-old, Washington, D.C.-based systems integrator that works closely with Microsoft, has raised $35 million in funding from Columbia Capital. More here.

    OpenFin, a 4.5-year-old, New York-based company that provides runtime technology for financial desktops, has raised $3 million in funding from Bain Capital Ventures, Pivot Investment Partners, Nyca Partners, Cris Conde and Tom Glocer. Crunchbase shows the company has now raised $9.6 million altogether. More here.

    Peloton Technology, a four-year-old, Mountain View, CA-based company that sells radar and dedicated short-range communication-based safety systems to trucking fleets (it keeps them in close formation on the highway, reducing collisions), has raised $16 million in Series A funding led by Denso International America and Intel Capital. Other participants in the round include Magna International, Castrol innoVentures, Volvo Group Venture Capital, UPS Strategic Enterprise Fund, Sand Hill Angels, Band of Angels, and Birchmere Ventures.

    Perseus, a six-year-old, New York-based high-frequency trading technology firm, has raised  $20.5 million in funding from Goldman Sachs. The International Business Times has more here.

    PingThings, a year-old, San Juan Capistrano, Ca.-based company that’s building its predictive intelligence software for the electric utility industry, has raised an undisclosed amount of funding from earlier backers GE Capital and Frost Data Capital.

    Raise Labs, a three-year-old, San Francisco-based company that enables students to earn micro “scholarships” throughout high school, has raised $4.5 million in Series A funding led by Owl Ventures, with participation from First Round Capital, SJF Ventures and individual angel investors. The company had previously raised $1 million in seed funding, as well as $200,000 in cash awards from education tech and business plan competitions. The WSJ has its story here.

    RadPad, a two-year-old, L.A.-based mobile rental marketplace, has raised $9 million in Series A funding led by Altpoint Ventures, with participation from Goldcrest Investments. The company has now raised $12.8 million altogether. Business Insider has more here.

    Simplilearn, a 5.5-year-old, Houston, Tx.-based company helping customers get certified in areas like Android development, has raised $15 million in Series C funding led by Mayfield Fund, with participation from earlier backers Kalaari Capital and Helion Venture Partners. Simplilearn has reportedly now raised a total of $27 million. TechCrunch has more here.

    SiteZeus, a two-year-old, Tampa, Fla.-based company whose technology automates the process of choosing physical sites for the restaurant, retail and hospitality industries, has raised $2.2 million in funding from Baldwin Beach Capital and Outback Steakhouse cofounder Chris Sullivan. The Tampa Bay Business Journal has more here.

    Smule, a seven-year-old, San Francisco-based company whose apps enable users to play or sing along with musical arrangements by professional artists, as well as to record music and invite others to layer in their voices or instruments, has quietly raised $26 million in funding led by Adams Street Partners. The round brings the company’s total funding to $68 million. It also has $12 million line of credit. Venture Capital Dispatch has the story here.

    SnowShoe, a five-year-old, San Francisco-based company whose plastic “stamps” interact with the touch sensors on mobile phones, unlocking content from video game characters to gift cards, has raised $1 million in seed funding led by Lowercase Capital, with participation from Collaborative Fund and MESA+ Capital. SnowShoe had raised an earlier $2.5 million in seed funding from Foundry Group’s AngelList Syndicate, 500 Startups, TechStars, Ludlow Ventures, Queensbridge Capital, BAM.vc, Scott Banister, Hiten Shah, and other angels. TechCrunch has the story here.

    SureCash, a five-year-old, Bangladesh, India-based mobile banking and payment platform that allows users to deposit cash, send money, make purchases, and pay bills, has raised $7 million in Series B funding from the Osiris Group. The company says it previously raised an undisclosed amount of Series A funding from a “group of Japanese investors.”

    Swirl Networks, a four-year-old, Boston-based micro-location marketing startup, has raised $18 million in Series C funding at a $150 million valuation led by Twitter Ventures, with participation from two unnamed groups. Venture Capital Dispatch has more here.

    —–

    New Funds

    Yesterday, the online storage company Box announced a $40 million fund for startups that are building their companies on top of its service. It’s partnering with Bessemer Venture Partners and Emergence Capital Partners in the endeavor. Business Insider has more here.

    —–

    Exits

    Lifecake, a three-year-old, London-based company whose photo-sharing app lets parents privately share photos of their young children with friends and family, has been acquired for undisclosed terms by Canon Europe. According to Crunchbase, Lifecake had raised just $1.4 million from investors, including Saber Growth Partners, EC1 Capital, and Balderton Capital.

    Milyoni, a six-year-old, Pleasanton, Ca.-based social video marketing platform for brands and artists, has been acquired for undisclosed terms by the photo-sharing site Photobucket, which itself recently raised $3.6 million in new funding. Milyoni had raised roughly $30 million from investors, including Oak Investment Partners, ATA Ventures, and Thomvest Ventures, shows CrunchBase. More here.

    Ozon, the e-commerce portal commonly referred to as the Amazon of Russia, is selling Sapato.ru, a Zappos-like business that it acquired three years ago. The buyer, for undisclosed terms, is online fashion retailer KupiVIP. Citing the Russian finance publication Vedomosti, TechCrunch writes that the deal was likely for hundreds of thousands of dollars , a far cry from the reported $60 million Ozon had spent on the company. (StrictlyVC had lunch last year with Ozon CEO Maelle Gavet, who, understandably, tried downplaying the challenges she faces as the head of a Russia-based company.)

    —–

    People

    Bloomberg takes a look at the “big business” of being Google cofounder Sergey Brin, saying that in addition to the ex-bankers and philanthropy experts working at Brin’s family office, Bayshore Global Management, Brin also has employed a former Navy SEAL for security, a yacht captain, a fitness coordinator, a photographer, and an archivist. More here.

    Google’s robotics unit is now reporting to former SVP or products and longtime advisor to CEO Larry Page, Jonathan Rosenberg, reports The Information. Rosenberg succeeds James Kuffner, a professor turned Google engineering director who oversaw the robotics unit after Andy Rubin left last year to start a fund called Playground Global. The move doesn’t appear to be permanent, adds the report.

    Joseph Tsai, Alibaba’s executive vice chairman, along with other early Alibaba executives, is setting up a multibillion-dollar family office to invest the wealth created by the e-commerce giant’s highly successful IPO. Tsai reportedly controls a roughly $6.5 billion stake in Alibaba. More here.

    Twitter has ended a program whereby top executives had been selling company stock at regular intervals and possibly depressing the stock’s price as a result, reports Fortune. Co-founder and director Ev Williams is reportedly the exception; according to Fortune, he has cashed out $45 million worth of Twitter stock since the broader moratorium went into effect.

    —–

    Essential Reads

    The online marketplace Jet talks an awfully big game for a company that hasn’t yet launched.

    In its first-quarter earnings call yesterday, Facebook said it now sees four billion video streams each day. It didn’t say much about its efforts to monetize video ads, though.

    The Verge reviews Jawbone‘s new Up3, and it’s not a ringing endorsement.

    More on the Pentagon‘s plans to open a Silicon Valley office, which is expected to be up and running at Moffett Field in a month.

    —–

    Detours

    Every question you’ve ever had about flying, answered by a pilot.

    Wanted: Style and design intern for up-and-coming instabrand.

    Can your relationship handle a trip to IKEA?

    —–

    Retail Therapy

    The Xiaomi Mi 4i. Says Business Insider: “On paper at least, it bests the iPhone 6 in most categories — for less than a third of the price.“

    Connie

    April 23, 2015
    Morning Summary
  • StrictlyVC: April 22, 2015

    Hi, all, good morning, and happy Earth Day! Hope it’s off to a good start.

    Quick mention: Highway1, the San Francisco-based accelerator program for hardware startups, has asked us to tell you it’s opening up applications today for its fall program. (It’ll accept 15 companies.) Teams can apply here

    —–

    Top News in the A.M.

    Google is set to unveil its new U.S. wireless service as early as today.Hope you like your Apple Watch; it’s reportedly going to be a pain to return it.Yahoo‘s first-quarter revenue fell short of analysts’ estimates. More here.

    —–
    As On-Demand Valet Battle Intensifies, Luxe CEO Shifts Gears

    The battle to baby your car is heating up. This morning, Zirx, a year-old, San Francisco-based company that will park your car, wash it, fill up its gas tank, and rotate its tires, is announcing $30 million in new funding. The round comes roughly a month after Luxe, another San Francisco-based valet app, raised $20 million. (Luxe has now raised roughly $25 million altogether, while Zirx has raised around $36 million.)Yesterday, we talked with Luxe CEO Curtis Lee – a former product manager at Zynga, YouTube, Google, Skype, and Groupon — about the competition, and whether and when these types of companies turn profitable. Our chat has been edited for length.You now have 40 full-time employees and hundreds of contract workers parking customers’ cars in San Francisco, L.A., and Chicago. Yet you say that parking cars is step one. What’s next?

    We’re more of a services platform than anything else. We happen to park your car, but we’re already doing gas fill-ups, car washes, and oil changes . . . Your car is effectively an urban locker, and we want to get stuff delivered to your car, as well as do things with it, like pick up your keys, get your groceries . . .

    How do you decide when to roll out new services?

    I’m a product manager. My cofounder [CTO Craig Martin] is a engineer. We worked at Zynga together, and we tend to like to do experimental things often. If they work, we double down. If they don’t, we won’t. And we saw that early on, the primary reason customers decided to use us was for our additional services.

    What are you charging for some of these services?

    Our rates vary depending on the city, but in San Francisco it’s $5 an hour [to have your car valet parked] and $15 per day. Car washes are $40. Gas fill-ups are the cost of the gas plus a $7.99 surcharge.

    Are you dealing with much poaching?

    Certainly, other companies are trying, especially because our guys are so obvious on the streets [wearing the Luxe uniform, which are bright-blue jackets]. We’re the only company that shows customers where our lots and our valets are on a map. That makes us vulnerable sometimes, but our retention remains very high. We think [our workforce] is fairly happy. We also have more demand than our competitors, and [valet pay] is hourly based, so [our valets are] not going to make as much money elsewhere. It’s like Uber; people want to work for Uber because it has the [consumer] demand.

    What of allegations that on-demand startups short-change workers by classifying them as independent contractors?

    We’re not obsessed or worried about it. I think it’s more a philosophy thing than the letter of the law. You treat employees – and independent contractors – with respect. It’s not as much about classifications. Who knows what will happen. [Any potential legal changes] aren’t in our hands. But we’re keeping an eye on it.

    Do you pay your valets minimum wage? Do they make much in tips?

    It’s completely optional, but our customers can give tips [via our app] because they were trying to do it regardless, through cash. Our guys make way more than minimum wage for sure because of the demand we get.

    Also, our guys don’t need to own cars. There’s no equipment necessary [beyond a scooter to get to customers more quickly]. Twenty percent of Uber drivers’ salaries go toward wear and tear and gas.

    It’s seems like potentially hazardous work, zipping around town to pick up and drop off customers’ cars as quickly as possible.

    We put [our valets] through extensive training so they understand where they need to drop off people’s cars, as well as make sure they aren’t doing anything that puts them at risk. Our bright blue jackets are also designed to ensure people see them. And we have a valet office where people can hang out and eat free food and relax and, if there are issues, go to office hours and talk with us.

    Your arrangement with city garages is pretty central to your future profitability. Are these typically monthly arrangements for spots?

    We have different agreements with different parking lots all the time — everything from monthly to yearly to daily arrangements. But parking lot owners take care of us and we take care of them, turning over the space enough times that we can make a profit on a per unit basis. The best analogy is to Priceline. For hotels, unused rooms are sunk costs. Priceline has created a billion-dollar business just by providing discounts to customers and getting [hotels paid] for their underutilized inventory.

    Still, some VCs think services businesses like yours are too cost intensive. What are they missing?

    We’re basically creating a behavioral change. Those days of searching for parking, wasting time, wasting gas – they’ll disappear in time. Also, parking alone is a $100 billion market globally and a $30 billion market in the U.S. And you’re seeing tremendous growth of car ownership internationally, including in Brazil, China, and India, all of which are undergoing massive urbanization without enough infrastructure to keep up. There are just huge opportunities for us.

    Will you be fundraising again this year?

    We’re open to raising [again] when the time is right.

    (Bay Area readers, to learn more about the shifts in on-demand startups, you might want to check this out next month. We’ll be there to moderate a panel.)

    —–

    New Fundings

    Alodokter, year-old, Jakarta, Indonesia-based health information site, has raised an undisclosed amount of seed funding led by Fenox Venture Capital, with participation from 500 Startups, Golden Gate Ventures, and Lim Der Shing, an entrepreneur and venture partner with Jungle Ventures. Tech In Asia has more here.

    Ariste Medical, an eight-year-old,  Memphis, Tn.-based company that’s developing drug-eluting surgical implants to prevent common causes of device failure, has raised $4.6 million from undisclosed sources. in funding. In 2012, the company raised $1.3 million, also from undisclosed backers.

    ClickMechanic, a three-year-old, London-based online marketplace of users to find and book mobile mechanics, has raised £320,000 ($481,424) from angel investors led by former Just Eat CEO Klaus Nyengaard. TechCrunch has more here.

    CompareAsiaGroup, a nearly two-year-old, Hong Kong-based, Asia-focused financial comparison platform, has raised $40 million in Series A funding led by Goldman Sachs Investment Partners, with participation from Nova Founders Capital, Jardine Pacific, Ace & Company, Route 66 Ventures, and individuals Mark Pincus and Owen Van Natta. The company has now raised roughly $45 million to date. More here.

    ConXtech, an 11-year-old, Pleasanton, Ca.-based modular building company that creates structures to enable the mass customization of buildings, has raised $25 million in Series D funding led by Saudi Aramco Energy Ventures and a venture fund associated with the George Kaiser Family Foundation. More here.

    Gengo, a 6.5-year-old, Tokyo, Japan-based crowdsourced translation service, has raised $5.4 million in Series C funding led by Recruit, with participation from SBI Investments, MUFJ Capital and CrowdWorks. The company has now raised $23 million altogether, including from Intel Capital, Atomico, and 500 Startups. TechCrunch has more here.

    Gravie, a two-year-old, Minneapolis, Mn.-based health insurance marketplace that helps employers transition their employees to the individual health insurance market, has raised $12.5 million in Series B funding led by new investor Split Rock Partners, with participation from earlier backers Aberdare Ventures and FirstMark Capital.The company has now raised $25.6 million to date, shows Crunchbase. The Minneapolis/St. Paul Business Journal has more here.

    Honey, a three-year-old, New York-based social intranet for employees to discover, discuss and archive content, has raised $1 million in seed funding led by Point Nine Capital. Honey was incubated by the ad giant Interpublic Group as part of its Labs program, which develops new technologies to solve client challenges. It has now raised $2.3 million altogether.

    Onfleet, a three-year-old, San Francisco, Ca.-based company that provides a white-label backend infrastructure to numerous on-demand and delivery services (helping them coordinate couriers with their assignments, for example), has raised $2 million in funding, including from CrunchFund, Winklevoss Capital, Playfair Capital, Stanford-StartX Fund, Lee Linden, Semil Shah, Fadi Ghandour and Andy Rachleff. More here.

    Poshmark, a four-year-old, Menlo Park, California-based fashion community marketplace where visitors can buy or sell their things, has raised $25 million in new funding from Mayfield, Menlo Ventures, Inventus Capital, Union Grove Venture Partners, Shea Ventures and SoftTech VC. The company has now raised $47.2 million altogether. TechCrunch has more here.

    ReShape Medical, a 6.5-year-old, San Clemente, Ca.-based company that develops non-surgical weight loss “balloons” to support the treatment of obese and overweight patients, has closed a $12 million senior secured term loan from Oxford Finance and Silicon Valley Bank. The company, which will reportedly seek out an equity round soon, has now raised $62.3 million in equity and debt, shows Crunchbase. Earlier investors include New Leaf Venture Partners, U.S. Venture Partners, and SV Life Sciences.

    Scalyr, a four-year-old, Portola Valley, Ca.-based log-monitoring service that gives developers more insight into how their applications are performing, has raised $2.1 million in seed funding led by Susa Ventures, with participation from Bloomberg Beta, Google Ventures and Sherpalo Ventures. TechCrunch has more here.

    SciFluor Life Sciences, a Cambridge, Ma.-based clinical stage biopharmaceutical company that develops fluorination technologies to improve drug properties like metabolic stability and potency, has raised $30 million in funding from Invesco Asset Management,Woodford Investment Management and earlier backer Allied Minds, a Boston firm that forms and funds startups. The company has now raised $35 million altogether, shows Crunchbase.
    Sendle, a year-old, Sydney, Australia-based parcel delivery startup, has raised $1.8 million in seed funding from the country’s National Road & Motorists Association (an earlier investor), along with high-net individuals. More here.

    Shots, a 1.5-year-old, San Francisco-based mobile app for sharing selfies (Justin Bieber, an early investor, uses it regularly), has raised $8.5 million in new funding led by WI Harper. Other participants in the round include Launch Fund, Upfront Ventures, 500 Startups, music producer Rodney Jerkins and the venture arm of Major League Baseball. The WSJ has much more here.

    Shyp, a two-year-old, San Francisco-based on-demand shipping service, has officially raised $50 million in Series B funding led by Kleiner Perkins Caufield & Byers, with participation from earlier backers, including Homebrew, Sherpa Ventures, enterpreneur-investor Kevin Rose and Rent The Runway CEO Jennifer Hyman. The company has now raised $62.2 million altogether.

    Untapt, a 1.5-year-old, New York-base recruiting platform exclusively focused on connecting financial services companies with tech talent, has raised $3 million in Series A funding led by Tsai Capital, with participation from SenaHill Investment Group.
    Weimob, a two-year-old, Shanghai, China-based company whose software helps businesses without software development experience build e-commerce platforms tailored for the WeChat mobile app platform, has raised $24 million in Series B funding by the packaged food manufacturer Jinzi Ham Co., reports China Money Network. Earlier backer Meridian Capital China and an undisclosed individual investor also joined the round, which reportedly values the company at $130 million.

    Zirx, a year-old, San Francisco, Ca.-based provider of on-demand valet and related car services (like car washes, oil changes, and tire changes), has raised $30 million in Series B funding led by Bessemer Venture Partners, with participation from earlier backers Norwest Venture Partners and Trinity Ventures. The company has now raised $36.4 million altogether.

    —–

    New Funds

    Russian president Dmitry Medvedev’s Skolkovo Foundation for technical development and China’s Cybernaut Investment Group are teaming up to create a $200 million venture fund, a startup incubator for Russian businesses, and a new Chinese robotics center. Fortune has more here.

    ——

    Exits

    Path may sell its original social networking app, known as Path Classic, to the makers of South Korean messaging app KakaoTalk, according to Recode. According to its report: “The potential acquisition — the terms of which are still unknown — would give KakaoTalk’s parent company Daum Kakao a major foothold in Indonesia, where Path is a leading social app.” Recode’s sources add that Path, which has raised more than $75 million in funding, would continue to operate independently after selling off the social networking app.

    ——-

    People

    Peter Hazlehurst, who joined the delivery startup Postmates just seven months ago as COO, is out the door, saying CEO Bastian Lehmann isn’t quite ready to relinquish control of the company’s day-to-day operations.“The business is doing great and I’m very proud of being part of that,” Hazlehurst tells Recode. “But I also want to have a role where I have full control and autonomy to drive things, and Bastian was not quite ready for that and that’s cool.” Hazlehurt had previously spent two-and-a-half years at Google, where he was a senior product manager working on the company’s payments initiatives. Before that, he spent nearly eight years at Yodlee, where he was chief product officer.

    Venture capitalist Dmitry Kaminskiy of the Hong Kong-based venture firm Deep Knowledge Ventures, is offering a $1 million prize to the first person to reach his or her 123rd birthday. The goal of the prize, says Forbes, is “to get the public interested in longevity research and to motivate people to live longer live.” It has nothing to do with generating press for Kaminskiy, at all.

    Sources are telling Recode to expect “a lot of movement” at Yahoo as CEO Marissa Mayer “rejiggers her favorites” and slowly squeezes out others, including Americas head Ned Brody. In fact, according to Recode’s spies, Brody already “seems to have joined the witness protection program . . . after he lost much of his job to Americas ad sales head Lisa Utzschneider and waits around in what insiders describe as a fire-me-and-pay-me standoff with Mayer.”

    Jeff Rowbottom, the head of capital markets for North America at KKR, is leaving to join Israeli venture-capital firm Pontifax Group, which invests in biopharmaceutical companies and medical devices. Bloomberg has the story here.

    —–

    Jobs

    SRI International is looking for a managing director. The job is in Menlo Park, Ca.

    —–

    Data

    U.S. medical startups raised a record $3.9 billion in venture capital in the first quarter of this year, surpassing the previous high record of $3.42 billion invested in the second quarter of last year, according to Dow Jones VentureSource. The WSJ has more here.

    ——

    Essential Reads

    Facebook and Google are scrambling to reach people without web access. Meanwhile, the internet’s reach among new users is slowing.

    Europe’s plan to compete with Silicon Valley.

    The Department of Homeland Security is opening a satellite office in Silicon Valley. More here.
    —–

    Detours

    The Floyd Mayweather-Manny Pacquiao fight is less than two weeks away, yet no one has a ticket.

    A supercut of all 110(!) car crashes from the “Fast and the Furious” franchise.

    “Mad Men” cartoon countdown: The fifth-to-last episode.
    —–

    Retail Therapy

    High-tech “eco” homes, in just a few weeks.

    Shhh. Our kids must never learn about this car.

    Connie

    April 22, 2015
    Morning Summary
  • As On-Demand Valet Battle Intensifies, Luxe CEO Shifts Gears

    Curtis LeeThe battle to baby your car is heating up. This morning, Zirx, a year-old, San Francisco-based company that will park your car, wash it, fill up its gas tank, and rotate its tires, is announcing $30 million in new funding. The round comes roughly a month after Luxe, another San Francisco-based valet app, raised $20 million. (Luxe has now raised roughly $25 million altogether, while Zirx has raised around $36 million.)

    Yesterday, we talked with Luxe CEO Curtis Lee – a former product manager at Zynga, YouTube, Google, Skype, and Groupon — about the competition, and whether and when these types of companies turn profitable. Our chat has been edited for length.

    You now have 40 full-time employees and hundreds of contract workers parking customers’ cars in San Francisco, L.A., and Chicago. Yet you say that parking cars is step one. What’s next?

    We’re more of a services platform than anything else. We happen to park your car, but we’re already doing gas fill-ups, car washes, and oil changes . . . Your car is effectively an urban locker, and we want to get stuff delivered to your car, as well as do things with it, like pick up your keys, get your groceries . . .

    How do you decide when to roll out new services?

    I’m a product manager. My cofounder [CTO Craig Martin] is a engineer. We worked at Zynga together, and we tend to like to do experimental things often. If they work, we double down. If they don’t, we won’t. And we saw that early on, the primary reason customers decided to use us was for our additional services.

    What are you charging for some of these services?

    Our rates vary depending on the city, but in San Francisco it’s $5 an hour [to have your car valet parked] and $15 per day. Car washes are $40. Gas fill-ups are the cost of the gas plus a $7.99 surcharge.

    Are you dealing with much poaching?

    Certainly, other companies are trying, especially because our guys are so obvious on the streets [wearing the Luxe uniform, which are bright-blue jackets]. We’re the only company that shows customers where our lots and our valets are on a map. That makes us vulnerable sometimes, but our retention remains very high. We think [our workforce] is fairly happy. We also have more demand than our competitors, and [valet pay] is hourly based, so [our valets are] not going to make as much money elsewhere. It’s like Uber; people want to work for Uber because it has the [consumer] demand.

    What of allegations that on-demand startups short-change workers by classifying them as independent contractors?

    We’re not obsessed or worried about it. I think it’s more a philosophy thing than the letter of the law. You treat employees – and independent contractors – with respect. It’s not as much about classifications. Who knows what will happen. [Any potential legal changes] aren’t in our hands. But we’re keeping an eye on it.

    Do you pay your valets minimum wage? Do they make much in tips?

    It’s completely optional, but our customers can give tips [via our app] because they were trying to do it regardless, through cash. Our guys make way more than minimum wage for sure because of the demand we get.

    Also, our guys don’t need to own cars. There’s no equipment necessary [beyond a scooter to get to customers more quickly]. Twenty percent of Uber drivers’ salaries go toward wear and tear and gas.

    It’s seems like potentially hazardous work, zipping around town to pick up and drop off customers’ cars as quickly as possible.

    We put [our valets] through extensive training so they understand where they need to drop off people’s cars, as well as make sure they aren’t doing anything that puts them at risk. Our bright blue jackets are also designed to ensure people see them. And we have a valet office where people can hang out and eat free food and relax and, if there are issues, go to office hours and talk with us.

    Your arrangement with city garages is pretty central to your future profitability. Are these typically monthly arrangements for spots?

    We have different agreements with different parking lots all the time — everything from monthly to yearly to daily arrangements. But parking lot owners take care of us and we take care of them, turning over the space enough times that we can make a profit on a per unit basis. The best analogy is to Priceline. For hotels, unused rooms are sunk costs. Priceline has created a billion-dollar business just by providing discounts to customers and getting [hotels paid] for their underutilized inventory.

    Still, some VCs think services businesses like yours are too cost intensive. What are they missing?

    We’re basically creating a behavioral change. Those days of searching for parking, wasting time, wasting gas – they’ll disappear in time. Also, parking alone is a $100 billion market globally and a $30 billion market in the U.S. And you’re seeing tremendous growth of car ownership internationally, including in Brazil, China, and India, all of which are undergoing massive urbanization without enough infrastructure to keep up. There are just huge opportunities for us.

    Will you be fundraising again this year?

    We’re open to raising [again] when the time is right.

    Photo courtesy of Forbes.

    (Bay Area readers, to learn more about the shifts in on-demand startups, you might want to check this out next month. We’ll be there to moderate a panel.)

    Connie

    April 22, 2015
    Entrepreneurs, Fundraising
    Bessemer Venture Partners, Curtis Lee, Luxe, on-demand, Redpoint, valet, Venrock, Zirx
  • StrictlyVC: April 21, 2015

    H, everyone! So the good news: It looks like you received yesterday’s email. [Fist pump, karate kick.] The bad news (for us alone) is that our new email delivery partner is a bit more technical than what we’re accustomed to, so we spent much of yesterday figuring out what’s what. Put another way, no column. Hope you enjoy the rest, though.:)

    Also, just a quick mention that our San Francisco-based May event (with Parker Conrad of Zenefits, Jeremy Liew of Lightspeed Venture Partners and other terrific guests) is coming up in just three weeks. Around 150 of you are already planning to attend. If you’ve RSVP’d but not purchased a ticket, you might want to do that before we reach capacity. (We’d also like to get your T-shirt orders in, give our caterers a final head count, etc.) Thanks again to our valued sponsors Personal Capital, Amazon Web Services, and Galvanize for helping make the evening possible!

    —–

    Top News in the A.M.

    Twitter just announced a crackdown on abusive language, unveiling a new feature designed to filter out threatening messages. More here.

    Uber must defend against a lawsuit accusing it of discriminating against blind people by refusing to transport guide dogs, a federal judge has ruled. Among more than 40 instances cited by plaintiffs of drivers refusing to comply with the law, one Uber driver allegedly refused a blind woman’s plea to pull over once she realized he’d locked her guide dog in the trunk of his car.

    —–

    New Fundings

    eToro, an eight-year-old, Limassol, Cyprus-based social trading and investment platform that allows users to trade currencies, commodities, indices and stocks, has raised an undisclosed amount of funding from CommerzVentures, Russia’s Sberbank and Ping An Ventures of China, bringing the total amount that the company has raised to date to $39 million. Last year, eToro raised $27 million from Ping An Ventures and SBT Venture Capital. (The company also reportedly has a $10 million credit line from Silicon Valley Bank.)Bringhub, a 2.5-year-old, L.A.-based e-commerce platform that enables digital media companies to add shopping-cart capabilities to their sites, has raised $1.8 million in seed funding, including from Capital Union Investments Hong Kong, BAM Ventures, Canyon Creek Capital, Rachel Zoe Ventures, and others. Women’s Wear Daily has more here.

    Color Genomics, a two-year-old, Burlingame, Ca.-based company whose $249 saliva test kit for women  will check for 19 genetic variants known to be correlated with a higher risk of breast cancer or ovarian cancer, has raised $15 million led by Khosla Ventures and Formation 8, with participation from a long list of influential angel backers, including Laurene Powell Jobs,  Yahoo co-founder Jerry Yang, and Dropbox co-founder and CEO Drew Houston. Bloomberg has more here.
    Dimension Therapeutics, a two-year-old, Cambridge, Ma.-based company that’s developing treatments for disorders associated with the liver, has raised $65 million in Series B funding led by New Leaf Venture Partners, with participation from Jennison Associates, Partner Fund Management, RA Capital Management, Rock Springs Capital, and Tourbillon Global Ventures, along with earlier backers Fidelity Biosciences and OrbiMed. The company has now raised at least $124.5 million altogether, shows Crunchbase.

    Evoucher, a five-year-old, Jakarta, Indonesia-based daily deals company, has raised an undisclosed amount of seed funding (its first outside capital) from Value in Technology Indonesia. The outlet e27 has more here.

    Full Measure Education, a two-year-old, Washington D.C., company whose communications software for students aims to increase their engagement, has raised $5.5 million in Series B funding led by Safeguard Scientifics, with participation from Bull City Venture Partners.

    Glukos, a 10-year-old, Gresham, Or.-based natural performance energy foods brand, has raised an undisclosed amount of Series A funding led by EIF Fund.The company, whose products are available in liquid form, gel, powder, tablet, gummy and bars, was founded by former Nike executive Mark Jensen; he and his CFO, Kurt Peterson, reportedly bought the company back from 30 investors in 2009 with the help of M&K Acquisitions, a company formed exclusively to buy it.

    Grannus, a three-year-old, Tuscon, Az.-based producer of ammonia, urea, and other nitrogen fertilizer products, has raised $2 million in Series A funding from an undisclosed strategic investor. More here.

    HealthKartPlus, a two-year-old, Gurgaon, India-based drug e-store, has raised $6 million in fresh funding, including from Omidyar Network, Intel Capital, Sequoia Capital, Kae Capital, and MakeMyTrip founder Deep Kalra,  The company had previously raised $5.5 million across two rounds. Tech in Asia has more here.

    InTurn, a 1.5-year-old, New York-based marketplace that funnels excess inventory to retailers in private online showrooms, has raised $3.6 million in Series A funding led by Forerunner Ventures, with participation from Novel TMT Ventures, Lerer Hippeau Ventures, T5 Capital, Ariba cofounder Bobby Lent and earlier investor Beanstalk Capital.MyTime, a nearly four-year-old, San Francisco-based service for booking appointments online, has raised $9.3 million in Series B funding led by earlier backer Upfront Ventures, with participation from new investors Accelerator Ventures, Daher Capital, Khosla Ventures and Westfield Corp.

    Music Messenger, a year-old, Herzliya, Israel-based company whose app enables users to create playlists from more than 100 million songs, as well as to send and receive full music tracks on their smartphone from anyone on their contact list, has raised $30 million in new funding led by Russian billionaire Roman Abramovich, with participation from record producers Tiesto and David Guetta; singers Nicki Minaj and will.i.am; and others. The company had previously raised at least $5 million. (Forbes took a look at it in December.)

    Pathar, a three-year-old, Colorado Springs, Colo.-based social media intelligence company, has raised $6.5 million in Series A funding from the pooled angel investment fund Woodside O’Brien, with participation from OCA Ventures.

    SimplyInsured, a 2.5-year-old, San Francisco-based online health insurance platform for small businesses (it offers them comparison pricing and plan details and handles the paperwork involved in group health insurance), has raised roughly $1.8 million in seed funding from Starling Ventures, with participation from earlier backers Altair, NerdWallet co-founders Jake Gibson and Tim Chen, and others, including Y Combinator. More here.

    Spirox, a three-year-old, Menlo Park, Ca.-based company that makes medical devices for the surgical repair of nasal obstructions, has raised $18.5 million in Series B funding led by Aisling Capital and Venrock. Earlier backers Aperture Venture Partners, Correlation Ventures and Western Technology Investment also participated in the round. Spirox had previously raised at least $4 million, shows Crunchbase.Stringify, a year-old, Los Gatos, Ca.-based Internet of Things (IoT) startup that’s still operating in stealth mode, has raised $6.3 million in seed funding led by Artis Ventures, with participation from OurCrowd and other unnamed angel investors. Stringify was cofounded by Mike Yurochko, who previously ran the digital user experience team at JPMorgan Chase.

    Tal Medical, a four-year-old, Boston, Ma.-based clinical-stage medical device company that’s developing a new, non-invasive neuromodulation treatment for depression and other psychiatric disorders, has raised $14 million in funding from an unnamed institutional investor, several unnamed individual investors, and earlier backer PureTech, a Cambridge, Ma. firm that conceived the company. BetaBoston has more here.
    Tradegecko, a three-year-old, Singapore-based software-as-a-service startup that helps business owners manage inventory and orders, has raised $6.5 million in Series A  funding led by NSI Ventures and Jungle Ventures. TechCrunch has more here.

    Zhiguoguo, a young, Beijing, China-based company that provides its customers with free trademark registration, as well as (not free) legal services, has raised $3.7 million in Series A funding led by Matrix Partners China, with participation from earlier backer Legend Star. Tech In Asia has more here.
    —–
    New Funds
    Brandon Capital, a nine-year-old, Melbourne, Australia-based life sciences venture capital firm, has raised a new, $200 million Australian dollars ($154.7 million) fund, the largest life science venture fund ever to be raised in Australia, it says.
    CMEA Capital, the 26-year-old, San Francisco-based IT, life sciences, and energy-focused venture firm, has restructured several previously raised funds into a new investment vehicle and will relaunch it with the name Presidio Partners, it tells VentureWire. (The firm has moved into San Francisco’s Presidio park and former military base, where numerous other firms have set up shop over the last decade or so, including Founders Fund and IDG Ventures.) The firm says its original name, short for Chemical and Material Enterprise Association, is no longer representative of its identity. Presumably, the firm is also eager to move beyond a sexual harassment lawsuit that was brought against it in 2013 by three former employees. CMEA agreed last year to settle that case.

    The Michigan Angel Fund, a 95-member, Ann Arbor, Mi-based fund focused on early-stage companies located in Michigan, has closed its second fund with $2 million. The outfit backs startups that are seeking between $250,000 to $2,000,000.  It used its debut fund to back eight startups, including Arborlight.

    —–

    IPOs

    Blueprint Medicines, a seven-year-old, Cambridge, Ma.-based preclinical biotech that’s developing inhibitors for cancer and genetic diseases, revealed plans yesterday to raise $115 million in its IPO by offering 7.2 million shares at a price range of $15 to $17. At the midpoint of the proposed range, the company would have a market value of $421 million. Blueprint was founded with the help of Third Rock Ventures, which remains one of its largest shareholders.

    —–

    Exits

    WatchDox, a seven-year-old, Palo Alto, Ca.-based document-centric security platform that helps organizations control their critical documents via mobile devices, has been acquired by Blackberry for $150 million. The company had raised last least $35.8 million, shows Crunchbase, including from Blackstone Group, Gemini Israel Ventures, Shasta Ventures, and entrepreneur-investor Shlomo Kramer. Geektime has the story here.

    —–

    People

    Billionaire Paul Allen has joined the ranks of the those looking to make spaceflight more affordable and efficient with Vulcan Aerospace. Geekwire has more here.When the NBA Clippers sold 11 months ago to former Microsoft CEO Steve Ballmer, it acquired a “loud and proud leader,” reports the New York Times. “I didn’t know what to expect,” Doc Rivers, the Clippers’ coach, said. “The guy’s worth $24 billion. I have to think if I had $24 billion I probably would be different. I hope not, but I probably would be. He’s the most normal $24 billion guy I know.”

    Matthew Melymuka has cofounded a new, New York-based growth-stage firm focused on enterprise software companies called PeakSpan Capital. Melymuka previously spent seven months as a senior associate at Greycroft Partners and several years as an associate with the growth-stage venture firm Investor Growth Capital. You can learn more about PeakSpan here.

    Jeff Maters, a longtime VP at Chicago-based Pritzer Group Venture Capital (and an investor and analyst before that, including at UBS, GMV Capital, and Lehman Brothers), has left the firm. Maters didn’t respond by our press time regarding his next moves.
    —–
    Jobs
    Kapor Capital is looking for a partner of portfolio services, a new role at the firm. The job is in Oakland, Ca.
    —–
    Essential Reads
    Google will now let you see everything you’ve ever searched.Twitter has begun allowing users to receive direct messages from other users, regardless if they follow each other.

    How click farms have inflated social media currency.

    —–
    Detours
    The most luxurious airport lounges in the world.Why people love a good shower-cry.

    How an octopus controls its very complicated movements.

    —–
    Retail Therapy
    The Nike Zoom Terra Kiger, when hiking boots aren’t your thing.  (H/T: Bryce Roberts)Good enough for a coffee shop but built for your house, should you want a $7,000 espresso machine.

     

     

    Connie

    April 21, 2015
    Morning Summary
  • StrictlyVC: April 20, 2015

    Hi, and happy Monday, everyone! Hope you had a wonderful weekend.
    —–
    Top News in the A.M.
    Nokia is reportedly plotting a return to the consumer phone market in 2016.San Francisco denizens face an ugly reality. Phone numbers with 415 are running so low that phone companies have begun assigning numbers starting with area code 628.
    —–
    Wences Casares on the Future of Xapo (and Bitcoin)
    Wences Casares is among the most-trusted proponents of the digital currency bitcoin. Indeed, last year, Casares – a serial entrepreneur who previously ran the digital wallet service Lemon (acquired by LifeLock in late 2013) – raised $41 million for his now 40-person, Palo Alto, Ca.-based company, Xapo, including from Benchmark and Fortress Investment Group.
    That amount has since been dwarfed by other bitcoin startups – the payments processor and wallet startup Coinbase announced a $75 million round in January, for example – but Casares says he doesn’t need more capital any time soon. Despite a price crash last year and some high-profile security breaches, bitcoin’s growth, and Xapo’s, continues apace, he says. We talked the other day in a conversation that has been edited here for length.
    When you were raising money for Xapo last year, a single bitcoin equaled $650. Now, bitcoin are worth $225 a piece. How has that price fall impacted your business?
    For people who’ve been looking at bitcoin for three or four years, that’s not really the story. Bitcoin has done the same thing several times: [jump from], nine cents to $10; $1 to $17; $17 to $30 — all the way to $100. So those who’ve been around along time have seen it go from nine cents to $200.
    Also, when we raised that money, there were 3 million people using bitcoin. Today, there are 12 million. There were 20,000 transactions; today there are 100,000. Back then, bitcoin represented 50 percent of all cryptocurrency volume; today, it represents 96 percent.
    But are your customers transacting more now that it’s worth less, or are they continuing to sit on it?
    There are two very different markets. You have the California and New York market, [where people] own it as a speculative payment and who never do a payment, and [those 10 million people] account for most of the bitcoin. Then you have emerging markets where you see [2 million other] users with a lot less coins, and they’re using it because they don’t have credit cards and that hasn’t changed with the price.
    Where are people most actively using bitcoin in emerging markets, and is it becoming any easier to use in those places? 
    People are using it in India, Turkey, Indonesia, Brazil. The barriers remain enormous. It’s very hard to use it. But if you have no other way of paying online, you’re willing to go through enormous hurdles.
    You’ve said that establishing trust is the biggest hurdle that bitcoin faces. Isn’t simply understanding it an even bigger obstacle? 
    Bitcoin looks like the internet before there was a browser. A lot of us tried explaining PCP stack and how the protocol works [etc.] and nobody really started using it because of those explanations. It happened because someone wanted to keep in touch over email or Skype or Facebook.
    [Similarly], the main use case for bitcoin is micro-transactions, and the internet will look different five years from now when you can move cents and hundreds of users who don’t have credit cards but $5 of bits can unlock certain things that you can’t unlock any other way.
    Xapo’s business is centered on a bitcoin wallet whose users store the bitcoin in vaults – or physical servers — around the world. What are they like, how many does Xapo manage, and why are they located where they are?
    These are large facilities where there are sections owned by other companies, with sections that are exclusive to us that we don’t share with anyone else. We have five – one in Switzerland and the others on other continents. They’re not very close because you have to be able to lose one due to a disaster like an earthquake, flooding or nuclear war.
    Would you ever need more?
    No. Even if we were 10,000 times our current size, it isn’t like bitcoin take up more space. We have five [servers] because each bitcoin has five keys. Imagine a door that has five keys and you need three to open it. Basically, if you lose one or two facilities owing to natural disaster or theft, you can use the other three to move the bitcoin to a safe location.
    Many bitcoin companies are tackling numerous things, like Coinbase. It’s a wallet provider. It’s also an exchange. Why are you focused on the wallet alone?
    Because it’s hard enough to win at one business and do it really well. At the beginning, AOL gave you connectivity and weather and email addresses and financial news, and it didn’t win at any of those things. Bitcoin is the same. A lot of companies do many things; we’d rather build the best wallet in the market.
    ———
    New Fundings
    58.com, a 10-year-old, Chaoyang, China-based classifieds site (China’s biggest in terms of monthly unique visitors), has acquired a 43.2 percent stake in its Beijing-based rival Ganji for $412.2 million in cash and stock, reports TechCrunch. 58.com, which went public on the New York Stock Exchange in 2013, also disclosed that Tencent Holdings has provided it with $400 million in new funding to increase its ownership position in the company. Tencent now owns 25.1 percent of the business. More here.AllCampus, a 2.5-year-old, Chicago, Il.-based startup that collaborates with universities and helps them expand online enrollment programs, has raised $844,000 as part of a round that’s targeting $3 million, shows an SEC filing. The company has previously raised $1.5 million in debt and a separate, $6 million round from Noson Lawen Partners.Boombotix, a three-year-old, San Francisco-based maker of portable and Bluetooth-enabled loudspeakers, audio accessories and mobile apps, has raised $4 million as part of a $10.8 million round, shows an SEC filing. According to Crunchbase, the company had previously raised $4 million from a long list of investors, including Red Hills Ventures, Great Oaks Venture Capital, Grishin Robotics, Walden Venture Capital, Baseline Ventures, and The Social+Capital Partnership.

    Cnano, an eight-year-old, Santa Clara, Ca.-based maker of  multi-wall carbon nanotubes products for the energy storage, structural and electronics industries, has raised $15 million in Series C funding led by GRC SinoGreen Fund, with participation from Hotung Investment Holdings; several new, unnamed investors; and earlier investors Pangaea Ventures, Presidio Partners, WI Harper Group, IDG Capital Partners and Megatop Capital. The company has raised at least $27 million to date, shows Crunchbase.

    Contego Medical, a 10-year-old, Raleigh, N.C.-based maker of angioplasty balloon and stent delivery catheters, has raised $5.6 million in Series B funding led by Hatteras Venture Partners, with participation from Mountain Group Partners, Lookout Capital and Medical Mutual.

    Citified, a year-old, Portland, Or.-based peer-to-peer parking app startup, has raised $600,000 in seed funding, shows an SEC filing that lists a $900,000 target. The service appears to be available in Portland only right now. More here.

    Fanli, a nine-year-old, Shanghai, China-based online rebate and flash sale site, has raised an undisclosed amount of Series C funding at a $1 billion valuation led by Rakuten, says the company. According to Crunchbase, Fanli has raised at least $30 million from investors previously, including QiMing Venture Partners, SIG China, and Steamboat Ventures. China Money Network has more here.

    Flashpoint Global Partners, a 3.5-year-old, New York-based security service that provides its customers with data about areas on the internet where mainstream search engines are unable to penetrate (also known as “the Dark Web”),  has raised $5 million led byTechOperators, with participation from Bloomberg Beta, Cisco Investments, Greycroft Partners, and K2 Intelligence.

    Freshdesk, a five-year-old, San Francisco-based maker of cloud-based customer support software, has raised $50 million in new funding led by Tiger Global Management, with Accel Partners and Google Capital participating. The company has now raised roughly $95 million altogether. TechCrunch has more here.
    GamEffective, a 2.5-year-old, Tel Aviv, Israel-based enterprise gamification company (its graphics aim to improve sales, customer service, on-boarding and more), has raised $3 million in Series A funding led by Verint Systems, with participation from the company’s earlier backers, including 2B Angels and Shaked Ventures. The company had previously raised at least $1 million in seed funding, shows Crunchbase.KiteDesk, a 3.5-year-old, Tampa, Fl.-based sales intelligence platform, has raised $4 million in seed funding from unnamed angel investors. VentureBeat has more here.
    MX, a five-year-old, Provo, Ut.-based company that partners with financial institutions and online banking and payment network companies to help them create segments, deploy offers, and start tracking campaigns, among other things, has raised $20 million in new funding as part of a $30 million round, shows an SEC filing. The round doubles the amount that the company had previously raised across numerous rounds, shows Crunchbase. Earlier backers include Peak Ventures, Commerce Ventures, North Hill Ventures, TTV Capital.OneSignal, a year-old, San Francisco-based company that makes retention marketing tools and push notifications for mobile developers, has raised more than $2 million in seed funding, including from Rakuten Ventures, Y Combinator, Tamares Capital and numerous individual investors, including Justin Kan.Oscar, a nearly two-year-old health insurance company that focuses heavily on technology, design, and data, has raised a whopping $145 million in new funding led by Founders Fund at a valuation that TechCrunch sources peg at $1.5 billion. The company has now raised $295 million altogether, including from Li Ka-shing, Wellington Management, Goldman Sachs, Thrive Capital, Khosla Ventures, General Catalyst Partners, Red Swan Ventures, BoxGroup and others. More here.

    Samba TV, a 6.5-year-old, San Francisco-based startup that provides television analytics, is now partly owned by the ad giant Interpublic Group, which has acquired a minority stake as part an effort to understand how consumers are watching television. The companies aren’t disclosing the size of the investment. Samba had previously raised at least $8.2 million, including from August Capital, Gary Lauder, and Mark Cuban, shows Crunchbase. The New York Times has more here.

    Sulekha, a 15-year-old, Chennai, India-based local services classifieds company, has raised $28 million in Series C funding led by Singapore’s sovereign wealth fund GIC, with participation from earlier backer Norwest Venture Partners. The company had previously raised at least $16.5 million, including from Mitsui Global. The outlet Inc42 has more here.

    Widetronix, a 12-year-old, Ithaca, New York-based company that makes ultra-low power sensor platforms, has raised $1.2 million in equity and debt, shows an SEC filing. According to Crunchbase, the company has raised less than $1 million in the past, including from Gotham Ventures.

    —–
    New Funds
    Sep Kamvar, director of the Social Computing group at the MIT Media Lab, has raised a $2.5 million venture fund called Fireweed Fund, shows an SEC filing. Kamvar spent four years as the head of personalization at Google. He was also the founder and CEO of Kaltix, a personalized search company that was acquired by Google in 2003.
    —–
    IPOs
    Baozun, an eight-year-old, Shanghai, China-based e-commerce service company that helps smaller businesses with site design, development and hosting, IT infrastructure, customer service, warehousing and logistics, is planning to raise up to $200 million in a U.S. IPO, shows a new SEC filing. The company’s biggest shareholders include Alibaba, which holds a 23.5 percent stake in the company; Softbank, which owns 17.8 percent; funds owned by Goldman Sachs, which owns 9.8 percent; and the private equity firm Infinity Group, which owns 6.6 percent.Legend Holdings, the parent company of Chinese PC vendor Lenovo Group, is reportedly planning to launch an IPO in Hong Kong later this year that could be the biggest in Asia so far this year. More here.China’s government has just drafted rules for companies’ IPO applications to be reviewed by the nation’s two stock exchanges, rather than regulators. More here.

    Three IPOs planned this week.

    —–
    Exits
    SunGard Data Systems, the Wayne, Pa.-based financial tech company, is exploring a sale that could value it at as much as $10 billion, says Reuters. SunGard was acquired for $11.4 billion a decade ago by Silver Lake Partners, TPG Capital, Bain Capital, Blackstone Group, Goldman Sachs Capital Partners, KKR and Providence Equity Partners.
    —–
    People
    Klout co-founder and CEO Joe Fernandez has stepped down from his role leading the company, which sold to Lithium Technologies for a reported $164 million in cash and stock a little more than a year ago. According to Recode, Fernandez is off to pursue other startup ideas; as part of the transition, he’s also joining Lithium’s board of directors.According to a new book coming out next month, Elon Musk very nearly sold his car company, Tesla Motors, to Google in 2013. More here.Ellen Pao’s attorneys, Therese Lawless and Alan Exelrod, talk with the San Francisco Chronicle about losing, sexism and what’s wrong with the tech industry.

    —–
    Essential Reads
    Twitter has filed a “tweetstorm” of trademark applications.Late Friday, WhatsApp disclosed that it now has 800 million users. More here.
    —–
    Detours
    The quick trick one self-made billionaire uses when trying to make a tough decision.A winning Craigslist ad. (You try selling a 2002 Ford Taurus.)What 10 famous movie mansions would cost in real life.

    —–
    Retail Therapy
    Save your whiteboard ideas.You’ll be the coolest parent at the soccer match with this chair. (Also, good luck getting out of it!)

    Connie

    April 20, 2015
    Morning Summary
    bitcoin, Wences Casares, Xapo
  • Wences Casares on the Future of Xapo (and Bitcoin)

    Wences CasaresWences Casares is among the most-trusted proponents of the digital currency bitcoin. Indeed, last year, Casares – a serial entrepreneur who previously ran the digital wallet service Lemon (acquired by LifeLock in late 2013) – raised $41 million for his now 40-person, Palo Alto, Ca.-based company, Xapo, including from Benchmark and Fortress Investment Group.

    That amount has since been dwarfed by other bitcoin startups – the payments processor and wallet startup Coinbase announced a $75 million round in January, for example – but Casares says he doesn’t need more capital any time soon. Despite a price crash last year and some high-profile security breaches, bitcoin’s growth, and Xapo’s, continues apace, he says. We talked the other day in a conversation that has been edited here for length.

    When you were raising money for Xapo last year, a single bitcoin equaled $650. Now, bitcoin are worth $225 a piece. How has that price fall impacted your business?

    For people who’ve been looking at bitcoin for three or four years, that’s not really the story. Bitcoin has done the same thing several times: [jump from], nine cents to $10; $1 to $17; $17 to $30 — all the way to $100. So those who’ve been around along time have seen it go from nine cents to $200.

    Also, when we raised that money, there were 3 million people using bitcoin. Today, there are 12 million. There were 20,000 transactions; today there are 100,000. Back then, bitcoin represented 50 percent of all cryptocurrency volume; today, it represents 96 percent.

    But are your customers transacting more now that it’s worth less, or are they continuing to sit on it?

    There are two very different markets. You have the California and New York market, [where people] own it as a speculative payment and who never do a payment, and [those 10 million people] account for most of the bitcoin. Then you have emerging markets where you see [2 million other] users with a lot less coins, and they’re using it because they don’t have credit cards and that hasn’t changed with the price.

    Where are people most actively using bitcoin in emerging markets, and is it becoming any easier to use in those places?

    People are using it in India, Turkey, Indonesia, Brazil. The barriers remain enormous. It’s very hard to use it. But if you have no other way of paying online, you’re willing to go through enormous hurdles.

    You’ve said that establishing trust is the biggest hurdle that bitcoin faces. Isn’t simply understanding it an even bigger obstacle?

    Bitcoin looks like the internet before there was a browser. A lot of us tried explaining PCP stack and how the protocol works [etc.] and nobody really started using it because of those explanations. It happened because someone wanted to keep in touch over email or Skype or Facebook.

    [Similarly], the main use case for bitcoin is micro-transactions, and the internet will look different five years from now when you can move cents and hundreds of users who don’t have credit cards but $5 of bits can unlock certain things that you can’t unlock any other way.

    Xapo’s business is centered on a bitcoin wallet whose users store the bitcoin in vaults – or physical servers — around the world. What are they like, how many does Xapo manage, and why are they located where they are?

    These are large facilities where there are sections owned by other companies, with sections that are exclusive to us that we don’t share with anyone else. We have five – one in Switzerland and the others on other continents. They’re not very close because you have to be able to lose one due to a disaster like an earthquake, flooding or nuclear war.

    Would you ever need more?

    No. Even if we were 10,000 times our current size, it isn’t like bitcoin take up more space. We have five [servers] because each bitcoin has five keys. Imagine a door that has five keys and you need three to open it. Basically, if you lose one or two facilities owing to natural disaster or theft, you can use the other three to move the bitcoin to a safe location.

    Many bitcoin companies are tackling numerous things, like Coinbase. It’s a wallet provider. It’s also an exchange. Why are you focused on the wallet alone?

    Because it’s hard enough to win at one business and do it really well. At the beginning, AOL gave you connectivity and weather and email addresses and financial news, and it didn’t win at any of those things. Bitcoin is the same. A lot of companies do many things; we’d rather build the best wallet in the market.

    Connie

    April 20, 2015
    Entrepreneurs
    Benchmark, bitcoin, Blockchain, Coinbase, Fortress Investment Group, Ribbit Capital, Wences Casares, Winklevoss, Xapo
  • StrictlyVC: April 17, 2015

    Hi, happy Friday, everyone. No column today. (Psst, web visitors, you can find an easier-to-read version of this morning’s email here.)

    —–

    Top News in the A.M.

    Wikileaks published a searchable database of 30,000 leaked Sony documents yesterday. More here.

    —–

    New Fundings

    Assured Labor, a seven-year-old, New York-based company that helps low- and middle-income workers across Latin America find jobs through their mobile phones, has raised $6.8 million in Series B funding led by earlier backer Capital Indigo, a Mexico-based venture firm. The round also included new investors Mexico Ventures, Promotora Social Mexicoand San Francisco-based firm Thayer Ventures. The company had previously raised $5.5 million in Series A funding, including from Great Oaks Venture Capital, Nexus Venture Partners, Kima Ventures, Enzyme Venture Capital, and entrepreneur-investor Fabrice Grinda.

    Attivo Networks, a four-year-old, Fremont, Calif.-based company that’s been developing cyberthreat detection technology, has raised $8 million in Series A funding led by Bain Capital Ventures.

    COBI, a year-old, Frankfurt, Germany-based company whose hardware and “intelligent” software offerings create more than 100 ways to upgrade a traditional bike, has raised more than $4 million in funding from Capnamic Ventures, Iris Capital and Creathor Venture. More here.

    EyeEm, a four-year-old, Berlin, Germany-based online marketplace where photographers can showcase and sell their photos, has raised $18 million in new funding led by Valar Ventures, with participation from earlier backers Earlybird Ventures, Passion Capital, Wellington Partners, Atlantic Labs, and Open Ocean Capital. Fortune has more here.

    Flatiron School, a three-year-old, New York-based computer science educational platform for kids and young adults, has raised $9 million in Series B funding led by Thrive Capital, with participation from earlier backers CRV and Matrix Partners. Last year, the company raised $5.5 million in Series A funding.

    Hydra Biosciences, a 14-year-old, Cambridge, Ma.-based company that develops drugs to treat pain, inflammation, cardiovascular and other diseases, has raised $11 million in Series E funding from Abingworth, Advanced Technology Ventures, BioVentures Investors, and Lilly Ventures. According to Crunchbase, the company raised its last financing, a $22 million Series D round, in 2009.

    Ihiji, a five-year-old, Austin, Tex.-based remote monitoring tool developer, has raised $1.8 million in Series A funding from Jopeko, the Capital Factory, Silverton Partners, and Floodgate. Austin Business Journal has more here.

    MeQuilibrium, a five-year-old, Boston-based online platform for managing stress, has raised $9 million in Series B funding led by Safeguard Scientifics, with participation from earlier backer Chrysalis Ventures and others. According to Crunchbase, the company has now raised $14.3 million altogether.

    MoneyStream, a 2.5-year-old, Los Gatos, Ca.-based personal money management service, has raised $3.2 million in Series A funding led by H&R Block, with participation from angel investors, including entrepreneur and tech executive Kim Polese.

    Omeicos Therapeutics, a two-year-old, Berlin, Germany-based company developing small-molecule therapeutics to prevent and treat cardiovascular diseases, including atrial fibrillation, has raised 6.2 million euros ($6.7 million) in Series A financing led by Vesalius Biocapital Partners, with participation from High-Tech Gruenderfonds, KfW Group and VC Fonds Technologie Berlin.

    Peloton Cycle, a three-year-old, New York-based stationary bike startup with a built-in tablet for live streaming cycling classes, has raised $30 million in Series C funding led by Tiger Global Management and True Ventures. The company has now raised $44 million altogether. TechCrunch has more here.

    Phantom Cyber, a year-old, Palo Alto, Calif.-based startup that automates enterprise security operations, has raised $2.7 million in seed funding from Foundation Capital and Rein Capital, along with a long list of angel investors, including former Symantec CEO John Thompson and former Sourcefire CEO John Becker.

    Pledgeling, a year-old, Santa Monica, Ca.-based online platform that aims to make it easier to follow charitable influencers, create a philanthropic profile, and centralize one’s giving, has raised $4.1 million in seed funding from Double M Partners and a roster of angel investors, including “Wheel of Fortune” co-host Vanna White.

    Purch, a 12-year-old, Ogden, Ut.-based network of sites about technology, is raising between $50 million and $60 million at a valuation of between $175 million and $250 million, according to Fortune. The company has previously raised at least $40.5 million from Village Ventures, ABS Capital Partners, and Highway 12 Ventures, shows Crunchbase. More here.

    Recorded Future, a six-year-old, Somerville, Ma.-based analytics company that crawls more than 650,000 publicly available Web sources to identify possible cyber threats for its customers, has raised $12 million in Series D funding led by Reed Elsevier Ventures, with participation from MassMutual Ventures and previous backers Google Ventures, In-Q-Tel,Atlas Venture, IA Ventures, and Balderton Capital. BostInno has much more here.

    Relationship Science, a five-year-old, New York-based professional-networking startup that aims to connect top deal makers and power brokers on Wall Street and beyond, has raised $31 million in new funding from new and earlier backers, including hedge-fund manager William Ackman. The round brings the company’s total funding to date to $119 million, reports the WSJ. The company has also hired a new CEO: Jon Robson, a veteran of NYSE Euronext and Thomson Reuters. StrictlyVC talked with Relationship Science last year about its hopes to bring more VCs into its platform.

    Rethink Robotics, a seven-year-old, Boston-based maker of a robots for production and research settings, has increased the size of its Series D financing by $13.4 million, bringing the total round to $40 million. Goldman Sachs had led the earlier round; Wellington Management led the newest installment. Altogether, Rethink Robotics has raised $113.5 million. BostInno has more here.

    Robosoft, a 19-year-old, New Udupi, India-based mobile app and game developer, has raised $12 million in Series B funding from Ascent Capital and existing investor Kalaari Capital. According to Crunchbase, the company has raised at least $15.7 million in recent years (since retooling itself in 2008 from a desktop game developer). DealCurry has more here.

    Spring, a 1.5-year-old, New York-based shopping application for iOS devices, has raised $25 million in funding from BoxGroup, Yuri Milner, Google Ventures, Sound Ventures, Thrive Capital, and Groupe Arnault, the investment firm controlled by LVMH CEO Bernard Arnault. Fortune has more here.

    Vessel, the two-year-old, San Francisco-based online video platform cofounded by former Hulu head Jason Kilar, has raised $57.7 million in fresh funding led by Institutional Venture Partners, with participation from previous investors Greylock Partners, Benchmark and Bezos Expeditions. The company has now raised $132.5 million to date. The Guardian has the story here.

    —–

    New Funds

    .406 Ventures, the 10-year-old, Boston-based early-stage, tech focused venture firm, is raising up to $200 million for its third fund, according to an SEC filing. The company closed its most recent fund with $175 million in 2012. Boston Business Journal has more here.

    Atlas Venture, the 35-year-old, Cambridge, Ma.-based venture firm, has raised $280 million for its first biotechnology-only fund — its tenth fund altogether. The firm’s last fund, a $265 million pool closed in 2013, was used to fund both tech and biotech deals, but last fall (as some of you know) the tech and biotech teams went their own ways. Forbes has much more here.

    Helion Venture Partners, a nine-year-old, Mauritius-based venture firm focused on India-based startups, has closed its fourth fund with $300 million. TechCrunch has more here.

    —–

    IPOs

    Here are the biggest winners in the blockbuster IPO of Etsy, whose shares closed their opening day yesterday 86 percent higher than where they’d started.

    Shares of Virtu, the high-speed, computerized trading company, also debuted yesterday, ending the day 17 percent above their offering price of $19. More here.

    —–

    Exits

    Two of Washington D.C.’s tech networking and venture capital hubs are combining, with incubator and seed fund 1776 acquiring Crystal City’s Disruption Corp, launched more than a year ago by venture capitalist Paul Singh, reports the Washington Post. Singh had previously been a partner at 500 Startups. He left the outfit in 2013, enticing 500 Startups venture partner George Kellerman to join him last year. More here.

    India’s Snapdeal, e-commerce rival of Flipkart, has acquired Bangalore-based FreeCharge, a service that providers users with coupons for charging their mobile plans. Terms of the deal were not disclosed, though media outlets report the price at between $400 million and $450 million. If accurate, the deal would be the biggest M&A tie-up yet in India’s e-commerce sector — even beating out Flipkart’s $330 million acquisition of Myntra last year, notes India West.

    —–

    People

    Andrew Beebe has joined Obvious Ventures, the San Francisco-based seed-stage firm of Twitter co-founder Ev Williams, as a managing director. Beebe was previously a VP at NextEra Energy Resources and chief commercial officer at Suntech Power Holdings. He’s now focusing on renewables and clean tech opportunities for the outfit.

    Apple CEO Tim Cook apparently has the best pay-for-performance rating of any chief executive officer on the Bloomberg Pay Index, the first daily ranking of the highest-paid U.S. executives. More here.

    Steve Dowling has officially replaced Katie Cotton as Apple‘s head of public relations. Cotton stepped down from the role last year after an 18-year run. Dowling, a 12-year veteran of the company, was named interim head of PR about six months ago. Dowling is known to be more open and friendly with the press than was Cotton, possibly because of his background. Before joining the company, he was a producer and the Silicon Valley bureau chief for CNBC.

    Scott Forstall stands to make a windfall as an advisor to Snapchat, suggests a leaked email from that Sony Pictures hack that shows Snapchat set aside .11 percent of its stock for the former Apple head of iOS. Indeed, if Forstall completes his two-year vesting schedule (it kicked off in February 2014), his stake could be worth at least $16.5 million, given the $15 billion valuation that Snapchat is believed to currently wield. TechCrunch has the story here.

    —–

    Essential Reads

    Microsoft just took Android’s future out of Google’s hands.

    —–

    Detours

    Why CEO pay reform failed.

    Last month was the hottest March worldwide since record keeping began in 1880.

    Let your mind wander. It’s good for you.

    —–

    Retail Therapy

    “Game of Thrones” Horn Mug. (Pretty good, no?)

    Connie

    April 17, 2015
    Morning Summary
  • StrictlyVC: April 16, 2015

    Hi, everyone, hope your Thursday is off to a great start.

    If you missed yesterday’s newsletter (we chatted with Peter Denious of FLAG Capital Management about the 56 “unicorns” in his portfolio, and why they’re starting to make him nervous), it’s here.

    —–

    Top News in the A.M.

    It may be that few who’ve ordered an Apple Watch will receive it by the official launch date of April 24th. At least, Apple quietly removed the date from its site last night, reports 9to5mac.

    This morning, Yahoo and Microsoft announced an amended search relationship that keeps the basic framework of their original, 10-year deal in place while giving both companies — and primarily Yahoo — more autonomy, reports Search Engine Land.

    —–

    Heads Up: Navdy Raises $20 Million Series A Round

    Navdy, a 20-person, San Francisco-based company, has spent the last two years working on a head-up display that can be installed on the dashboard of any car and aims to make driving safer by getting people to look ahead at the road, rather than down at their phones.

    Its vision is about to be fulfilled, too. After taking more than 17,000 pre-orders for the product on its site, amounting to more than $6 million in sales, the company says it’s ready to start shipping the first version of the Navdy to customers in the second half of this year. (Pre-orders cost $299; the device will retail for $499.) In fact, investors are so excited about the company’s future that they’ve just given the company $20 million in Series A funding.

    Earlier this week, we spoke with Navdy founder and CEO Doug Simpson to learn more. Our chat has been edited for length.

    You’ve sold a lot of a product that hasn’t shipped yet. Did we miss your Kickstarter campaign, or did Navdy do this exclusively through its site?

    It was all done on our own site. We wanted to have more control over the user experience, and we have a [fun, product demonstration] video that’s done well, with more than 1.4 million views – that’s a big success factor. It’s a problem that people can identify with, and it’s an experience that feels magical, and I think that came across in the video and people got excited about it.

    How will big will the product run be, and did you always intend to begin shipping in the second half of this year?

    It was not always the plan. We were targeting the first half the year, but the preorder campaign was way more successful than we thought it would be, which made things more difficult, including [regarding] the supply chain. We’ve also continued to [integrate feedback] from a lot of usability testing and made iterations that have taken longer than we expected, but the result is that we’ve made some great improvements in the product. It was a difficult decision to disappoint people with a delay, but it would be worst to disappoint them with the product itself.

    As for production capacity, it will take less than a month to get through the orders we have now; after that, we’ll be producing between 20,000 to 30,000 units per month.

    And where will they sell?

    From a channel perspective, we’ll be able to take orders online this year, and next year, we’ll roll out to other channels, including traditional consumer retailers like Best Buy. We don’t have anything to announce, but the number of retailers and distributors who’ve [reached out out to us] is over 2,000.

    You’ve probably gotten a lot of feedback regarding which apps people want Navdy to include and those they don’t. Have you made any big changes based on that feedback?

    Not really. Our original plan was to focus on three use case: navigation; communication – meaning call control and text messages; and music control, and the feedback we’ve had is that those are the categories that are important to customers. Music control is a lower priority than the first two, so that’s helped us prioritize our development efforts.

    The obvious concern with Navdy is that it will be rendered obsolete by newer cars that have this kind of technology baked in.

    One of the surprises of the pre-order campaign is that lots of OEMS have already started contacting us about partnering. That’s always been our strategy, though we thought it would take time to get their interest. It will be a long process, but either way, we always plan to offer a direct-to-consumer product, too.

    What proof you have that your product will make driving safer?

    As part of user testing, we’ve taken a look at cognitive upload, the distraction of interacting with our product versus the phone. We’re also working with insurance companies and car companies on some of those aspects as well. There’s a lot of evidence to support that head-up display technology itself — developed by the military and used now by all commercial airlines – is safer.

    What’s next? Is there a product line in the pipeline?

    Yes, we really want to focus on making the in-car experience great, and we think we can expand beyond just this initial product, but right now, we’re very focused on [the first version] and the second version will build on that. I can’t really share more than that right now, though.

    —–

    New Fundings

    Appirio, an 8.5-year-old, San Francisco-based company that helps companies migrate to Salesforce, Workday and other cloud services companies, has raised $35 million in a still-open round led by Fidelity Management & Research Co. To date, the company has raised $111 million altogether, including from General Atlantic, GGV Capital, Sequoia Capital and Salesforce. Venture Capital Dispatch has the story here.

    Billtrust, a 14-year-old, Trenton, N.J.-based payment cycle management company, has raised $25 million in a new funding led by Goldman Sachs Private Capital, with participation from the company’s earlier backer Bain Capital Ventures.

    CurrencyFair, a six-year-old, Dublin, Ireland-based peer-to-peer currency transfer service, has raised $10.7 million in fresh funding led by Octopus Investments, with participation from earlier backer Frontline Ventures. The company has now raised at least $15.4 million altogether, shows Crunchbase.

    Frenzoo, a 7.5-year-old, Hong Kong-based 3D mobile game company, has raised $1 million in seed funding led by existing investors Fresco Capital, K5 Ventures and Anshe Chung. The company has now raised roughly $3 million altogether. The outlet e27 has more here.

    GreenLancer, a four-year-old, Detroit, Mi.-based solar design and permitting company, has raised $5 million in Series B funding from unnamed new and existing investors. The company had previously raised $500,000 from Bizdom, Start Garden, Blue Water Angels, and Northern Michigan Angels, shows Crunchbase.

    Jawbone, the 16-year-old, San Francisco-based maker of audio and wearable technologies, has reportedly raised $300 million from investment giant BlackRock at about a $3 billion valuation. The round closes as the company unveils two new fitness tracking bands and prepares to ship a third next week. (More about those here.)

    Kujiale, a 1.5-year-old, Hangzhou, China-based home decoration and furnishing online information and design platform, has raised $10 million in Series B funding led by GGV Capital, with participation from Matrix Partners, IDG Capital Partners, Yunqi Partners, and others. China Money Network has a bit more here.

    LocalOye, a two-year-old, Mumbai, India-based mobile marketplace for hiring local service professionals, has raised $5 million in Series A funding from Tiger Global Management and Lightspeed Venture Partners. The company had previously raised seed funding from local angel investors, including Sachin Bhatia, the cofounder of MakeMyTrip.

    Number26, a two-year-old, Berlin, Germany-based startup that lets users create a banking account in minutes from their smartphone, and provides them with a range of services like push notifications (as well as a traditional credit card), has raised $10.6 million in Series A fund led by Peter Thiel’s Valar Ventures, with participation from Swiss investor Daniel Aegerter and earlier backers Earlybird Venture Capital and Redalpine Venture Partners. The deal represents Valar Ventures’ second investment in a European fintech startup, notes VentureBeat.

    Maaxi, a nearly two-year-old, London-based iPhone and Android app that lets users order a black cab ride that’s then shared with others traveling on a similar route, has raised an undisclosed amount of seed funding from banking heir Nat Rothschild. More here.

    NSS Labs, a 24-year-old, Carlsbad, Ca.-based security research and testing organization, has raised $7 million in new funding from Chevron Technology Ventures and earlier investor LiveOak Venture Partners. LiveOak provided the company with $4 million in Series A funding in late 2013, shows Crunchbase.

    Ola, a four-year-old, Mumbai, India-based cab-hailing service, has officially announced that it has raised $400 million in Series E funding led by DST Global, with participation from GIC, Falcon Edge Capital, and earlier backers SoftBank, Tiger Global Management, Steadview Capital and Accel Partners. The company is now valued at $2.5 billion. (If this all sounds familiar, it’s because reports of the deal, which we’ve included in past newsletters, began leaking in early March.)

    Ortho Kinematics, a nine-year-old, Austin, Tex.-based diagnostic technology company focused on spine imaging informatics, has raised $9.6 million in Series C funding from Medtronic, TEXO Ventures, MB Venture Partners and other previous and new investors.

    Peak, a three-year-old, London-based maker of brain-training games and apps, has raised $7 million in Series A funding led by Creandum, with participation from earlier backers DN Capital, London Venture Partners and Qualcomm Ventures. The company has now raised $10 million altogether.

    Pepperdata, a three-year-old, Sunnyvale, Ca.-based company whose software runs on existing Hadoop clusters to give operators predictability, capacity, and visibility for their Hadoop jobs, has raised $15 million in Series B funding led by Wing Venture Partners, with participation Citi Ventures, Silicon Valley Data Capital, and earlier backers Signia Ventures and Webb Investment Network. The company has now raised roughly $20 million altogether.

    Plae, a three-year-old, San Francisco-based online children’s shoes retailer, has raised $7 million in Series A financing led by Partech Ventures, with participation from Cherubic Ventures, Finn Capital, Floodgate, Western Technology Investment and numerous angel investors.

    Sprig, a two-year-old, San Francisco-based mobile application that helps users find and order healthy meals and have them delivered quickly, has raised $45 million in Series B funding led by Social+Capital Partnership, with participation from earlier investor Greylock Partners. According to Crunchbase, the company has now raised $56.7 million altogether, including from Accel Partners, Battery Ventures, MHS Capital, and Great Oaks Venture Capital.

    StemBioSys, a five-year-old, San Antonio, Tex.-based company that’s developing proprietary stem cell technologies for the regenerative medicine market, has raised $8 million in Series A funding led by Targeted Technology Fund, with the rest of the capital coming from more than 50 angel investors.

    Tray.io, a three-year-old, London-based company whose platform promises to makes it easy for anyone to build and share SaaS integrations, has raised $2.2 million in seed funding led by True Ventures, with participation from Redpoint Ventures and Angelpad. The company has now raised just less than $3 million altogether, reports TechCrunch.

    Virtual Reality Co., an L.A. firm that’s been working on several immersive entertainment offerings that involve a stereoscopic headset display, is currently raising nearly $23 million in early funding, reports the WSJ.

    Vlocity, a year-old, San Francisco-based cloud startup, has raised $42 million led by Salesforce Ventures, with participation from Accenture. ZDNet has much more here.

    —–

    IPOs

    AshleyMadison, a dating website for terrible spouses, wants to pursue an IPO in London this year, after its parent company failed with a previous IPO attempt in Canada. “Europe is the only region where we have a real chance of doing an IPO” because of its more liberal attitudes toward infidelity, Christoph Kraemer, its head of international relations, tells Bloomberg.

    Etsy, the Brooklyn-based online marketplace for handmade and vintage goods, went public this morning, and its shares opened at $31 — nearly double their pricing last night at $16. More here.

    Virtu Financial, the high-speed trading firm, also went public this morning. After pricing its shares at $19 last night — the high end of their projected range — they’re right now trading at $22.

    —–

    Exits

    Volo, a German startup that lets users order take-out from restaurants that don’t traditionally offer it, has been acquired for undisclosed terms byRocket Internet, which just days ago announced its participation in the Series A funding of a Volo competitor called Take Eat Easy. TechCrunch has more here.

    —–

    People

    Longtime Yahoo executive and former Hightail CEO Brad Garlinghouse has joined Ripple Labs as its COO. More here.

    Ray Kurzweil, Google’s 67-year-old director of engineering, intends to live a very long time, reportedly eating a focused breakfast of berries (85 calories), smoked salmon and mackerel (100 calories), dark chocolate infused with espresso (170 calories), vanilla soy milk (100 calories) and porridge (150-350 calories). He also apparently spends $1,000 on a daily diet of 100 supplemental pills that target specific functions of the body. More here

    Business Insider looks at why Snapchat‘s stealthy real estate moves are worrying small business owners in Venice, Ca.

    One week after GetSatisfaction cofounder Lane Becker publicly revealed that he’d long ago lost the company to venture capitalists, another CEO has opened up about his “tactical mistake” in accepting venture funding.

    Ted Ullyot, Facebook’s top lawyer before stepping down in 2013, has joined venture capital firm Andreessen Horowitz as its first partner to focus on policy and regulatory affairs. Fortune has the story here.

    —–

    Happenings

    Our friend Semil Shah is cohosting what looks like a strong conference about the on-demand economy on May 19 in San Francisco. Guest speakers include Postmates CEO Bastian Lehmann, DoorDash CEO Tony Xu, and investor Sherwin Pishevar of Sherpa Ventures, among others. You can learn much more about it here.

    —–

    Essential Reads

    Google said yesterday that it’s readying a challenge to the EU’s antitrust case against it. But Recode sources who are familiar with earlier EU antitrust cases say Google’s best bet is to settle and soon.

    Clever. Snapchat has been using its own app with locale-specific features to recruit from a handful of companies, including Uber.

    —–

    Detours

    The man who makes the funniest people even funnier.

    The best — and the 10 worst — jobs of 2015.

    If it’s any consolation, this German shepherd can’t get her kid to take a nap, either.

    —–

    Retail Therapy

    Sporty “smart” glasses you might actually want.

    Connie

    April 16, 2015
    Morning Summary
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