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Scratchpad is an early stage startup that wants to make it easier for sales people to get information into Salesforce by placing a notation layer on top of it. Today, it announced a $13 million Series A led by Craft Ventures with participation from Accel.
The company has now raised a total of $16.6 million including the $3.6 million seed round we covered in October. Co-founder and CEO Pouyan Salehi says that he wasn’t really looking to add capital, but the investors understood his vision and the money will help accelerate the product roadmap.
“To be honest, it actually wasn’t on our radar to raise again so soon after we raised what I consider a substantial seed. We had plenty of runway, but we started to see a lot of bottom-up user growth, this bottom-up motion just really started to take hold,” Salehi told me.
He says that lead investor David Sacks, who has built some successful startups himself, really got what they were trying to do, and the deal came together fairly easily. In fact, the company caught the attention of Craft because they were hearing about Scratchpad from their portfolio companies.
The bottoms up approach is certainly something we have seen with developer tools and with software for knowledge workers, but companies often take aim at sales through the sales manager, rather than trying directly to get salespeople to use a particular tool. This approach of getting the end users involved early allows them to gain traction with members of the sales team before approaching management about paid versions.
Traditionally, sales teams don’t like the tools that are thrust upon them. They are essentially databases and even with a visual interface, it doesn’t really match up with the way they work. Scratchpad gives them an interface like a spreadsheet or notes application that they are typically using to hack together a workflow, but with a direct connection to Salesforce.
What the paid tiers provide is a way to bring all this data together and get a bigger picture view of what’s happening on the sales team, and it helps ensure that people are using Salesforce because the data in Scratchpad links to the Salesforce database automatically.
The company has completed the initial work of building the individual salesperson’s workspace, but the next phase, and part of what this capital is going to fund, is building the team workspace and seeing how this data can flow from individuals to a team view to give management more insight into what their individual reps are doing. This includes notes, which usually don’t make it into Salesforce, but provide a lot of context about interactions with customers.
It’s resonating with thousands of users (although Salehi didn’t want to share an exact customer number just yet). Customers include Autodesk, Brex, Lacework, Snowflake and Twilio.
Sacks says that he liked the viral way the product has been spreading. “Once a rep starts using Scratchpad, two things tend to happen: it becomes a daily habit, and they share it with their teammates. This phenomena of viral spread is rare and indicates a very strong product-market fit,” he said in a statement.
Source: https://techcrunch.com/2021/02/03/scratchpad-snags-13m-series-a-to-simplify-salesforce-data-entry/
Training AIs is essential to today’s tech sector, but handling the amount of data needed to do so is intrinsically dangerous. DARPA hopes to change that by tapping the encryption experts at Duality to create a hardware-accelerated method of using large quantities of data without decrypting it — a $14.5 million contract.
Duality specializes in what’s called fully homomorphic encryption. Without descending into the technical details, the main issue with everyday encryption methods — though it’s also sort of the point of them — is that they render the encrypted data totally unreadable, essentially noise unless you have the key to reverse the process. Doing that is computationally expensive with large datasets, and of course once the data is in the clear, it’s vulnerable to hackers, abuse, and other dangers.
There are methods, however, of encrypting data such that it can be analyzed and manipulated without decrypting it, and one of those is fully homomorphic encryption. Unfortunately FHE is even more computationally intense than ordinary encryption, ruling it out for applications where gigabytes or terabytes of data are called for. There are other methods of accomplishing the same ends but no one would cry if FHE suddenly became ten times easier.
DARPA is as interested as anyone else in this field, though it has considerably deeper pockets than your garden variety encryption wonk. This contract is part of a broader effort called DPRIVE, or Data Protection in Virtual Environments, and the stated goal is to develop a special purpose chip — an ASIC pre-assigned the code name TREBUCHET — to accelerate FHE by, hopefully, an order of magnitude or more.
The Duality team will bring in experts from USC, NYU, CMU, SpiralGen, Drexel University, and TwoSix Labs. The company has been in the game for a long time and has actually worked with DARPA before, so this is not new territory for them.
“Duality team members have been supporting DARPA-funded innovation and application of FHE for over a decade. Some members of our team developed the first ever prototype HE hardware accelerators under the DARPA PROCEED program starting in 2010 and are lead developers for the PALISADE open source FHE library, first developed for the DARPA SAFEWARE program in 2015,” said Duality Labs director and principal investigator for the contract, David Bruce Cousins, in a press release.
As you can see, they’re not short on acronyms either.
It’s not totally clear what the timeline is on this, but considering the state of the technologies involved I wouldn’t expect results before at least two or three years from now.
If you’re at all interested in wine, chances are you’ve turned to Vivino at least a few times for recommendations. The app and the company behind it have been helping people enjoy better wine since 2010, and now the startup has raised $155 million with its Series D round – a sum over twice as large as all of its previous funding to date. Spurred by rapid growth that has seen its user base grow from 29 million in 2018, to 50 million currently, Vivino wants to use the large cash injection to significantly boost its core tech and personalized recommendation engine, while also expanding its presence in key growth markets globally.
Vivino is an interesting company for many reasons, but chief among them might be just how similar its vision today is to the one it started out with. Founder and CEO Heini Zachariassen told me in an interview that the app has been remarkably immune to the pivot – something as natural as breathing in the fast-flowing startup world.
“I can look at my slide, from when I pitched this 10 years ago,” he told me. “It says, ‘Hey, you scan a bottle of wine, then you can buy it.’ That just makes a lot of sense to anybody, so it really hasn’t changed much.”
“It’s been very, very difficult to build much – much harder to build than building that slide,” he joked. But it’s always been the same – we always knew that was going to be the model.”
That core value proposition is what leads to a lot of Vivino’s initial downloads and subsequent usage. The scenario is likely familiar: You’re sitting in a restaurant and browsing the wine menu, or staring at a crowded shelf in a wine store. For myself, I think I likely searched for something like ‘wine recommendation app’ and found Vivino via the App Store, installed it and was snapping photos of labels or menus within minutes. The recommendations provided somewhere to start, and since then the app has grown more personalized as I’ve provided input about my tastes.
Image Credits: Vivino
Vivino’s marketplace component means you can often buy the wines you find and enjoy directly from the app, via partnerships the company fosters and maintains with merchants large and small around the world. Zachariassen explained that they strive to maintain high standards when it comes to these partners, since the experience a user has with them is largely a reflection on Vivino itself because the app provides the means for the purchase.
Building more relationships with more merchants in more geographies is one part of their expansion goal for addressing their primary growth markets, but the company is also going to put a lot more capital behind improving and extending its recommendation engine. A lot of the building blocks are in place to make big improvements there, not least of which is the wine database that Vivino spent a decade building essentially from zero.
“Stage one of the hurdles we faced, even before we got commercial, was really building the data,” Zachariassen told me. “There is no aggregated data anywhere. So we’ve basically built this data totally from scratch. So it means taking a picture of bottle of wine, then having people just entering info every single day to fill it. We have 1.5 billion pictures of wine labels right now, so building that mass of data in a good and structured way really is 10 years of work.”
He adds that wine is a particularly long-tail marketplace, with highly individual tastes and very little indication in the company’s history that that’s likely to change in any significant way. Vivino’s marketplace approach, which is highly local on both the supply and the demand side, is particularly well-suited to addressing the sector’s needs, and Zachariassen believes Vivino has only really begun to scratch the surface on that thus far. I asked him why now was the right time to take on this sizeable round, given they’ve been very modest with prior funding amounts.
Vivino wine app in San Francisco. Photo Copyright Nader Khouri 2018.
“I think we we’ve reached sort of a critical mass,” he said. “We saw last year massive growth, and actually reaching […] like a quarter of a billion dollars in sales, and we’ve really seen that the unit economics are healthy for us. At the same time, unlike other marketplaces – you know, the order of things when you have a marketplace might be if you’re like Uber, is that you go into market, you spend money, do marketing, a lot of money to build up the demand, and then you build the supply on top. We’re a little bit different in the way that demand is already there, because we have 50 million users around the world. So we just follow our demand.”
“But the hardest thing about that is that we’re now a 200 person company that sells wine in 17 countries,” he continued. “Which means we’re relatively thin in all these markets. So so one of the big things here, is actually to go much deeper in each market and say, okay, we now know it works here, let’s put more resources in every single market.”
Zachariassen also added that the company spends very little on marketing to date, so it’s going to begin spending more on that to extend its organic growth. Finally, it wants to really build out product engineering, since he says that while users love the existing app, they really “want to do so much more with it.”
Vivino has worked to modernize a product category that has long relied on local expertise and individual storehouses of highly-specific information, with an approach that provides all the benefits of a connected and global marketplace, while retaining regional and particular appeal at the granola level of the individual user. Now, the company is read to tap the rest of the massive submerged demand it has identified, and this fresh fundings would help it do just that.
The $155 million series D round was led by Sweden’s Kinnevik, and also includes participation by Sprints Capital, GP BullHound, and existing investor Creandum which led its Series A. This brings the company’s total funding to $221 million to date.
Grocery delivery startup Good Eggs is announcing that it has raised $100 million in new funding, and that it’s planning to launch in Southern California in either the summer or fall of this year.
Parts of this story might sound familiar to readers familiar with Good Eggs — when the startup raised its most recent, $50 million funding round in 2018, CEO Bentley Hall also mentioned plans for geographic expansion.
It seems, however, that the company has found plenty of opportunity for growth while remaining focused on the San Francisco Bay Area. Good Eggs says that in the past year, revenue has grown to the nine figures (more than $100 million), hired more than 400 employees and nearly doubled its customer base.
Hall also noted that the company opened a new, larger warehouse in Oakland just a few days before shelter-in-place orders took effect last March. So the team was busy enough trying to operate a new warehouse, meet increased demand for grocery delivery and keep workers safe in the process.
Image Credits: Good Eggs
And while the grocery delivery market has become increasingly competitive, Hall argued that Good Eggs stands out thanks to the quality and breadth of its products — 70% of its products are locally sourced, and it often delivers them within 48 hours of harvesting.
“There’s lots of people offering groceries, meal kits, prepared meals, alcohol — we do all of that, with a certain sourcing criteria,” Hall said. As a result, Good Eggs has become the “primary source” for many of its consumers, representing 65% to 85% of their home food purchases.
It’s also worth noting that this represents a bit of a turnaround for the company, after the it shut down operations in Los Angeles, New York City and New Orleans in 2015, with Hall coming on as CEO shortly afterwards. And it sounds like he isn’t in a rush to launch in a bunch of new markets.
“I think of [Southern California] not as one big region, but as several small sub-regions,” Hall said. “There’s the LA region, northern San Diego, Orange County — those areas collectively are the size of two or three Bay Areas. That’s a meaningful increase in our addressable market.”
Good Eggs CEO Bentley Hall
The new funding was led by Glade Brook Capital Partners, with participation from GV, Tao Invest, Finistere Ventures and Rich’s, as well as previous investors Benchmark Partners, Index Ventures, S2G, DNS Capital and Obvious Ventures. Glade Brook’s J.P. Van Arsdale is joining the company’s board of directors.
“The grocery market is undergoing fundamental change and the shift to e-commerce and higher quality products and services is accelerating,” Van Arsdale said in a statement. “Good Eggs is experiencing rapid growth with strong unit economics and is well-positioned to become a category-defining leader. We are excited to partner with their team to help drive future growth and expansion.”
In addition to geographic expansion, Hall said the money will allow Good Eggs to continue adding new products and to find ways to improve the e-commerce experience.
In addition to the funding, Good Eggs is also announcing that it has hired Vineet Mehra as its chief growth and customer experience officer. Mehra was previously chief marketing officer and chief customer officer at Walgreens Boots Alliance, and before that as executive vice president and global chief marketing and revenue officer at Ancestry.
Source: https://techcrunch.com/2021/02/03/good-eggs-funding-2/
Finding, and retaining, frontline workers has likely never been as critical as it is in these pandemic days.
Enter WorkStep, a four-year-old startup that was founded with the mission of helping large supply chain employers do just that. The fully distributed company announced this morning that it has closed on a $10.5 million Series A round, building on top of a previously unannounced $6.7 million seed funding that included equity and a convertible note.
FirstMark Capital led the Series A financing, which included participation from returning backer and strategic partner Prologist Ventures.
Dan Johnston, co-founder and CEO of WorkStep, said the Employee Lifecycle Management (ELM) software platform was designed to not only help large supply chain employers source new frontline employers, but to also onboard, train, and keep them happier with the goal of them staying on board longer. Johnston experienced some of the challenges firsthand when he managed a warehouse in Portland, Oregon, more than a decade ago.
The COVID-19 pandemic has only highlighted the importance of the work frontline employees do – from serving food to delivering packages. But with the increasing dependence on supply chain labor came record turnover, points out Johnston – leaving many companies understaffed and remaining workers stretched thin.
WorkStep claims to provide human resources, recruiting and operations leaders “full transparency” across the employee lifecycle to help companies minimize that churn. The company had previously built out its cloud-based Hire
offering and then last fall, launched its Retain product.
“The pandemic has forced companies of all sizes to prioritize the health, safety and satisfaction of frontline teams,” he said.
Its customers include hundreds of industrial, logistics, transportation and warehousing employers across North America –– including regional 3PLs (third-party logistics companies) and distribution centers, as well as 16 of the Fortune 500. Customers include grocery chain Kroger, Alpine Food Distributing and TransPak, among others.
WorkStep says it has “reached” 500,000 supply chain workers over the years.
WorkStep claims that its Retain offering reduced turnover by up to 29 percent for a Fortune 100 food & beverage company with whom it conducted a case study. This saves companies money in replacement and retraining expenses, which can add up.
As a result of launching Retain last fall, according to Johnston, WorkStep saw its business more than double in the second half of 2020. This led the company to end the year as “bottom line profitable,” meaning that its revenue exceeded expenses in the last two months of the year.
And while WorkStep did not necessarily need to take on new capital, the company saw an opportunity to double down so it could continue to scale, Johnston said.
“This was an opportunistic round,” he told TechCrunch. “The turnover in this segment has become a core focus.”
WorkStep plans to use its new funding to more than double the size of its existing team of 14 employees across engineering, product, sales and customer success departments this year and triple it by the end of fiscal year 2022.
FirstMark Capital’s Adam Nelson was in the room with the company during its first whiteboard sessions and believes WorkStep is addressing a “massive” opportunity.
“We think the real differentiator between WorkStep and the existing solutions in the space is that WorkStep doesn’t see temporary staffing/gig liquidity as a solution,” Nelson told TechCrunch. “They see it as a symptom of a multi-hundred billion dollar deadweight loss that’s created when employers aren’t able to find, train and retain the right people.”
WorkStep, he added, is addressing the full employee lifecycle and leveraging the data “to give a voice to frontline workers while also making employers smarter and more proactive.”
