& meet dozens of singles today!
User blogs
If you are a founder and launched a startup last February of 2020 just before the pandemic hit, then you may have felt like you were living the ultimate business nightmare. But if your company serves to stabilize the supply-chain business, then, in fact, you may have hit the ground running at just the right time. So is the story of Miami-based startup SmartHop, an AI-powered app that helps interstate truckers make their routes more efficient and lucrative, while removing a lot of the administrative hassle for drivers.
SmartHop announced today that it raised $12 million in a Series A round, bringing the company’s total funding to date to $16.5 million. The round was led by Union Square Ventures, whose past investments include Stripe, Twitter, Coinbase, Etsy, MeetUp, SkillShare and Duolingo, among others.
SmartHop takes a complex problem with lots of moving parts and offers a simple solution. To understand the gap in the market, you need to understand the hurdles that interstate truck drivers face. And since Garcia is a former truck driver himself (he was a pet food delivery driver while in college in his native Venezuela and scaled his business to a 500-person trucking company), he has a good grasp on the pain points and intricacies of the industry.
“I lived with my parents in Caracas and I asked my parents to empty their garage and that was my first distribution center,” said Guillermo Garcia, CEO and co-founder of SmartHop, of his experience starting his first trucking company. “The trucking market moves like the stock market,” he added, explaining that it’s ever-changing and therefore impossible to predict.
According to a 2019 study by The American Trucking Associations, the trucking industry is a $791.7 billion industry, representing 80.4% of the nation’s freight bill. Additionally, 91% of trucking companies are small businesses, meaning they have six trucks or fewer. Many are owner-operators. Traditionally, to get loads, truckers had to scour apps or websites of about 15,000 different brokers. It was a total uncoordinated, inefficient, free-for-all approach that left drivers unable to predict their monthly revenues, among many other things.
This is how SmartHop helps those drivers. Let’s say Bob lives in Atlanta and he has a single truck; he’s an owner-operator. He has a load that’s going to take him all the way to Seattle, and it’s going to take him several days to get there. Financially, it doesn’t make a lot of sense for Bob to start the trip without knowing what else he can pick up along the way, or if Seattle should really be his turnaround point. Maybe there’s not a lot of freight leaving Seattle these days, but there’s a lot going out of Chicago. There’s no way for Bob to know these things.
Before SmartHop, Bob had to pick up the phone, call brokers and make deals. Most of this work was done while on the road and Bob had no foresight into his next couple of weeks of work – or life, for that matter.
With SmartHop, Bob can enter details about his truck’s capacity, cities he doesn’t like driving through and other details, and SmartHop will recommend loads to him that optimize his profits and travel time. Think of it like when you’re driving and using Waze and it asks if you want to drive to Starbucks because it’s a couple of minutes out of the way. All you have to do is accept, and Waze does the rest. SmartHop operates similarly.
SmartHop technology giving a driver three load booking options, which the platform’s tech will negotiate and book (image: SmartHop).
“Some truckers don’t like to drive through New York City because there are a lot of tolls, bridges and traffic,” said Garcia, “So it doesn’t matter the value of the load, he’s just not going to pick it up,” he added.
But if you really want to go full autopilot, SmartHop can take over and autonomously book the loads for you – all you have to do is drive and take care of the truck, Garcia said.
The more a trucker uses SmartHop, the more the company learns the driver’s preferences and makes better suggestions or bookings.
SmartHop charges a transaction fee of 3% of the gross sale. “Our incentives are very aligned, so when they make money, we make money, and when they are taking days off, we don’t charge anything,” said Garcia.
“[Union Square Ventures] is focused on businesses that utilize technology to build networks and broaden access,” said Rebecca Kaden, managing partner at Union Square Ventures. “We were particularly excited to meet Guillermo and the SmartHop team, because that’s exactly what they are doing — software empowers the owner-operator trucking company to optimize their business and compete with players far bigger in number.”
Ryder, the Miami-based logistics company, also participated in the round through its new venture arm, RyderVenture. SmartHop is its first investment. Equal Ventures and Greycroft, from SmartHop’s seed round, also invested.
“A lot of startups have a lot of good technology and no one to test it on,” said Karen Jones, Ryder executive VP, CMO and head of new product innovation. “And the software doesn’t go very far if there is no one in the real world to try it.” Prior to the RyderVenture investment, Ryder partnered with SmartHop to test the product on its own trucks, of which they have 275,000.
The company, which was part of the 2019 New York City Techstars cohort, currently has 50 full-time employees and 100 trucks using the product. Each truck, on average, grosses between $10K – $15K per month.
The latest funding round will go toward product development as well as embedded financial products. Unlike big companies, smaller trucking companies don’t have the leverage to negotiate better rates on fuel or insurance, but with SmartHop’s volume of drivers, it can change that. Additionally, they’ll be offering to factor invoices, so drivers can sell a 45-day invoice and get paid within just 24 hours by SmartHop. “Because we have so much data, we become the ultimate underwriter so I’m able to underwrite in advance, and much smarter,” said Garcia.
Source: https://techcrunch.com/2021/02/10/smarthop-raises-a-12m-series-a-to-ease-trucking-logistics/
This morning Ramp, a startup that competes in the corporate spend market, announced that it has secured a $150 million debt facility with Goldman Sachs. Ramp previously raised a $30 million Series B in late December 2020, after raising a $23 million Series A earlier in the same year.
TechCrunch spoke with Ramp co-founder and CEO Eric Glyman about its new credit access. Glyman said that until it was secured, his company had previously financed customer corporate spend off its own balance sheet. That effort would have become more difficult and inefficient as Ramp secured more customers, something that its rapid-fire fundraising implies that it has.
Its larger startup category is growing, as TechCrunch has reported. Ramp, Brex, Airbase, Divvy, Teampay and others compete for the custom of companies’ spend; the startups provide credit to businesses usually on a charge-card basis, collecting interchange revenues and, in some cases, software incomes as well.
Ramp intends on using its new credit facility to boost its product work, Glyman said, noting that its new access to revolving debt will free up capital that it can invest into software.
So far Ramp’s model appears to be working. The company told TechCrunch that it saw 47% growth from November to December, a figure that measures not revenue but transaction volume. However, as Ramp monetizes off of transaction volume, we can infer that its revenue scaled rapidly during the same period.
The tingling feeling you have on the back of your neck is correct; Ramp is now big enough to share harder numbers than mere percentage growth metrics. We do know that the company reached the $100 million spend threshold — an aggregate metric, not a rate — in the fall of 2020 after being founded around 18 months earlier. From there you can math your way to an estimate of the company’s current spend base.
Ramp is betting its software package, wrapped around corporate cards, on a focus on savings; the startup helps customers root out repeat payments and other mal expense.
It has competition. Ramp’s rivals are also layering software on top of corporate card offerings. A question that TechCrunch has raised is whether all players in the maturing corporate spend space will wind up charging for their software layer on top of their credit offerings (TeamPay, for example, reported both software revenues and transaction volume results to TechCrunch.)
Corporate spend TAM would rise if so.
To grok what’s going on in the corporate spend management space, recall the changes in the world of venture capital over the last decade or so. In olden times, venture firms had money to invest in startups. There wasn’t much by current standards, and it was concentrated in only a few hands. It was rare. So, venture capitalists were able to make you come to them, charge more equity per dollar of investment and not offer modern-level services. Today, however, in venture-land money is plentiful, so investing terms are more generous. And, on top of merely offering access to capital, your local VC probably wants to help startups hire, and more.
Corporate spend is the same. Offering credit and corporate cards is now barely table stakes; the value of the software on top of the revolving charge card is the competition.
Let’s see how fast Ramp can grow its customer base, spend and revenue, while scaling its software. And how soon one of its rivals tries to one-up its latest with news of its own. This is a fun space to watch.
NeuReality, an Israeli AI hardware startup that is working on a novel approach to improving AI inferencing platforms by doing away with the current CPU-centric model, is coming out of stealth today and announcing an $8 million seed round. The group of investors includes Cardumen Capital, crowdfunding platform OurCrowd and Varana Capital. The company also today announced that Naveen Rao, the GM of Intel’s AI Products Group and former CEO of Nervana System (which Intel acquired), is joining the company’s board of directors.
The founding team, CEO Moshe Tanach, VP of operations Tzvika Shmueli and VP for very large-scale integration Yossi Kasus, has a background in AI but also networking, with Tanach spending time at Marvell and Intel, for example, Shmueli at Mellanox and Habana Labs and Kasus at Mellanox, too.
It’s the team’s networking and storage knowledge and seeing how that industry built its hardware that now informs how NeuReality is thinking about building its own AI platform. In an interview ahead of today’s announcement, Tanach wasn’t quite ready to delve into the details of NeuReality’s architecture, but the general idea here is to build a platform that will allow hyperscale clouds and other data center owners to offload their ML models to a far more performant architecture where the CPU doesn’t become a bottleneck.
“We kind of combined a lot of techniques that we brought from the storage and networking world,” Tanach explained. Think about traffic manager and what it does for Ethernet packets. And we applied it to AI. So we created a bottom-up approach that is built around the engine that you need. Where today, they’re using neural net processors — we have the next evolution of AI computer engines.”
As Tanach noted, the result of this should be a system that — in real-world use cases that include not just synthetic benchmarks of the accelerator but also the rest of the overall architecture — offer 15 times the performance per dollar for basic deep learning offloading and far more once you offload the entire pipeline to its platform.
NeuReality is still in its early days, and while the team has working prototypes now, based on a Xilinx FPGA, it expects to be able to offer its fully custom hardware solution early next year. As its customers, NeuReality is targeting the large cloud providers, but also data center and software solutions providers like WWT to help them provide specific vertical solutions for problems like fraud detection, as well as OEMs and ODMs.
Tanach tells me that the team’s work with Xilinx created the groundwork for its custom chip — though building that (and likely on an advanced node), will cost money, so he’s already thinking about raising the next round of funding for that.
“We are already consuming huge amounts of AI in our day-to-day life and it will continue to grow exponentially over the next five years,” said Tanach. “In order to make AI accessible to every organization, we must build affordable infrastructure that will allow innovators to deploy AI-based applications that cure diseases, improve public safety and enhance education. NeuReality’s technology will support that growth while making the world smarter, cleaner and safer for everyone. The cost of the AI infrastructure and AIaaS will no longer be limiting factors.”
Image Credits: NeuReality
Source: https://techcrunch.com/2021/02/10/neureality-raises-8m-for-its-novel-ai-inferencing-platform/
The Amazon Marketplace roll-up play is well and truly underway. In the latest development, Thrasio — one of the biggest and earliest movers in the market to consolidate third-party sellers on the platform, with the promise to provide better economies of scale to manage and grow those businesses — announced that it has raised another $750 million at a valuation that is likely to be over $3.75 billion.
The funding is being led by existing backers Oaktree and Advent, and it includes participation from previous unnamed investors. (That list of equity backers has included Peak6, Western Technology Investment, and Jason Finger, the co-founder of one of the early players in food delivery startups, Seamless.)
Thrasio said it will be using the money to continue its rapid pace of buying up more third-party sellers in the “Amazon FBA ecosystem”, a reference to smaller merchants that sell and distribute their products using the “Fulfilment By Amazon” service from the e-commerce giant.
“Thrasio continues its exceptional growth,” said Joshua Silberstein, who co-founded and co-leads the company with Carlos Cashman. “Over the past two months, we’ve been acquiring $1.5 million in revenue per day.” Those are his italics. “Thrasio is now closing two or three deals every week.”
Thrasio to date has acquired nearly 100 FBA businesses says that it reached that number by way of evaluating 6,000 possible companies and 14,000 “category-leading products.”
Six thousand may sound like a big number, but one estimate puts the number of third-party sellers on Amazon at around 5 million, a number that appears to be growing exponentially at the moment, with more than 1 million sellers joining the platform last year.
The size of the opportunity, plus the Amazon-proven promise of economy of scale in the world of e-commerce, are likely two reasons why we have seen so many startups emerging looking to roll them up.
Thrasio’s $750 million fundraise is an all-equity venture round. Based on its $3 billion valuation in January (when it closed a debt round of $500 million), this latest cash injection appears to be coming in at a $3.75 billion valuation, but quite possibly more.
“Quite possibly more” because the news comes at a particularly overheated time in this specific area of e-commerce.
Thrasio’s news came out yesterday afternoon, only hours after we reported on a new rival called Branded, which launched its own roll-up business on $150 million in funding and with a critical detail: one of the “co-founders” is the deep-pocketed European VC firm Target Global.
And that comes on the heels of others in this space — they include, in addition to Thrasio and Branded, Berlin Brands Group, SellerX, Heyday, Heroes, Perch and more — collectively raising or committing from their own balance sheets well over $1 billion in aid of their own efforts to buy up small but promising third-party merchants.
For its part, Thrasio notes that the funding was raised quickly and diluted existing shareholders by 11.1%, and that it has now raised $1.75 in equity and debt.
We have asked Thrasio to confirm its valuation and will update as we learn more.
Thrasio products do not carry any kind of Thrasio branding. But I’m guessing that as Thrasio and its rivals look for a better edge and aim to give the impression of more quality (rather than the fly-by-night feeling that some of these sellers have today), we may see more of that coming out.
Brands that it owns include Vybe Percussion deep tissue massage gun, Circadian Optics bright light therapy lamps, and skincare products from Sdara Skincare, Thrasio said.
In the competition for the best of these, Thrasio claims its marketing and analytics can help these newcomers “compete with top household name labels, quickly becoming the trusted items that consumers turn to for their everyday needs.”
The feverish pace of fundraising in the area of FBA roll-ups feels very much like a bubble in the market — not least because none of these still-young companies have yet to prove that the strategy to buy up and consolidate these sellers is a useful and profitable one.
(The only one that has stated that it is profitable, Berlin Brands Group, has done so on its existing business model, which has involved building a variety of third-party sellers from the ground up itself, not buying up others, with whatever legacy baggage they may carry, good or bad.)
Thrasio is very much in the go-big-or-go-home stage of scaling with funding, and in its favor, although it’s only three years old (founded in 2018), that age has made it one of the oldest and more proven in this current wave.
“In ten years, omnichannel retail will be the backbone of the entire consumer products ecosystem – but today, it’s still in its genesis. Every day, the very fabric of this market is twisting as it continues to evolve,” said Cashman in a statement. “Our balance sheet isn’t built to win yesterday’s battles – it is designed to pursue the accelerating opportunities that accompany these kinds of seismic changes in an industry.”
Source: https://techcrunch.com/2021/02/10/thrasio-raises-750m-more-in-equity-for-its-amazon-roll-up-play/
Freelancers who work well together in teams are the target for Collective, a French startup that’s launching a software-as-a-service marketplace today. (Not to be confused with Collective, a US-based startup that offers back-office tools for the self employed running a business-of-one.)
Collective (the French ‘teams’ edition) is co-founded by Jean de Rauglaudre and Vianney de Drouas, and is backed by the SaaS-focused startup studio/venture builder, eFounders, which covers expenses during the first 18 months (so how much it ends up investing depends but typically runs to at least a few thousand euros.)
“As a former freelancer, I was really attracted by this new way of working,” says de Rauglaudre, discussing why Collective is focusing on “independents teaming up by mutualizing skills, networks and work methodology in a quest to go faster, think bigger, and find more meaning”, as he puts it.
The startup points to notable Collectives that have emerged in recent years — such as ProductLed.Org and Knackcollective.com in the US, and Mozza.io, Alasta.io and Lookoom.co in France, as feeding the idea.
It argues that the indie ‘collectives’ phenomenon has only been accelerated as a result of the coronavirus pandemic — with companies faced with more uncertainty looking for more resilient and flexible options.
The pair of founders worked with eFounders to hone their fledgling idea. “We understood that collective was the ultimate next step on this market. Though, we noticed that those forms today do not scale (because of so many admin issues), do not shine (because they do not thrive under a standardized reality), and work alone (while solo freelancers have a lot of tools and benefit from a legal existence, collectives are still undeserved). Therefore, we ‘imaginated’ Collective!” de Rauglaudre tells TechCrunch.
For teams of skilled indie workers the lure of Collective is a promise that it combines the benefits of working in an agency — because its SaaS platform automates a bunch of back-office functions like proposals, invoices, contracts and payments — with the flexibility of still being freelance and thus able to pick and choose projects and clients.
“Exhaustive” back-office is the promise from de Rauglaudre. (Which — yes — does include chasing clients for late/non payment of invoices. When we checked that detail he dubbed the service “a perfect combination of flexibility (inherent to collective models) and security (related to our back-office)”. Late freelancer payments are of course an infamous pain-point that’s been targeted by other startups over the years; but Collective is coming with the full back-office package.)
Additionally, Collective offers freelancer teams marketplace visibility — and thus help with their client pipeline.
It’s been soft launched for one month at this point and in that time says 18 collectives have been formed on its marketplace, comprising more than 150 freelancers in total.
Early collectives operating on its marketplace are offering “varied” expertise — from software development, design, product management, and growth — and are already working with five companies. Collective also says it’s speaking with more than 80 companies as it starts its push for scale.
“We did not expect such huge interest in so little time, coming both from independents and companies,” adds de Rauglaudre in a statement. “This confirms our initial realization: That people and companies are looking for more flexible ways of working and that it is by joining forces that we can reach higher. What we’re seeing is the very beginning of the teamwork revolution.”
“While solo freelancers benefit from a legal existence and have dedicated platforms, collectives are still under-served,” says eFounders co-founder Thibaud Elziere in another supporting statement. “They all operate under different legal structures and struggle to find work because they don’t have the right tools. Collective aims to become the go-to solution to help collectives exist, find work and scale.”
In terms of the underlying trends Collective is aiming to tap into, de Rauglaudre points to “skyrocketing” rates of independent work over the past decade (150%+).
As they investigated further, he says they noticed that more and more freelancers are working together in various forms — suggesting that around a fifth of independents “work as a collective consciously or not”.
“We estimate that +10M freelancers are merging in collectives worldwide but with very various forms (structured or not). They want to team up to increase their revenues (competing against agencies and not solo freelancers) while improving their working mode (not alone any more),” he suggests.
In terms of target sectors/skills for the marketplace to serve (and serve up), he doesn’t think there’s a single template — but Collective is starting by focusing development (on the ‘collectives’ supply side) on design, product, tech, data and growth marketing; and (on the client demand side) on large scale-ups and tech companies.
The business model at this stage is for it to a charge markup (5%-15%) on the client side. The lower fee is charged is the platform isn’t providing the client; while the higher figure is if it is, per de Rauglaudre.
Once all the bells and whistles are ready with the SaaS — in about another month — he says it will also charge a monthly fee on the collective side.
Given the branding clash with the SF-based back-office startup Collective, the French team may want to take that time to consider a name change — maybe ‘Collectif’ could work? 
Source: https://techcrunch.com/2021/02/10/collective-launches-a-saas-marketplace-for-freelancer-teams/
