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Smartphone maker Xiaomi has sued the United States government over its inclusion in a military blacklist. The filing, which was submitted on Friday, calls the decision “unlawful and unconstitutional.”
The Chinese smartphone maker adds:
It is not owned or controlled by, or otherwise affiliated with the Chinese government or military, or owned or controlled by any entity affiliated with the Chinese defense industrial base. Nor does the Chinese government or military, or any entity affiliated with the defense industrial base, possess the ability to exert control over the management or affairs of the company.
The filing reflects similar statements by the company in the wake of the listing. The designation came in the waning days of the Trump administration, less than a week before Biden’s inauguration. Huawei and DJI have also been caught up in U.S. blacklists in recent years, though those companies were tagged as part of the separate entity list maintained by the Commerce Department. Huawei filed suit against the government in March 2019.
The listing, which is set to go into effect on March 15, bars investment in the smartphone maker. It’s already had an impact on its bottom line. Xiaomi already has a massive global footprint, ranking No. 2 behind Apple and Samsung, according to the latest figures from Canalys. The company saw a 31% annual growth in market share y-o-y for Q4, as the larger industry continued to stall. Xiaomi hasn’t had much visibility in the U.S., but a potential ban in the world’s third-largest market could severely hamper the company’s growth.
It remains to be seen how the new U.S. administration will impact relations with both China and its hardware makers. Notably, the letter addresses Biden appointees Defense Secretary Lloyd Austin and Treasury Secretary Janet Yellen.
Source: https://techcrunch.com/2021/02/01/xiaomi-sues-the-us-government-over-blacklisting/
Poland-based Telemedico has closed a €5.5 million (~$6.6M) Series A round of funding. The round is led by Flashpoint Venture Capital, Uniqa Ventures, PKO VC, Black Pearls VC (an existing investor) and Adamed.
Telehealth services specifically, and digital health more broadly, have racked up plenty of growth during the pandemic as demand for remote consultations (and other types of support) has accelerated sectoral uplift.
Telemedico, which was founded back in 2014 — but only launched its current b2b model (which is primarily targeted at insurance firms) in 2017 — says 2020 was a record year for its business.
One million consultations were carried out via its platform during the 12-month period, it told us.
Pawel Sieczkiewicz, founder and CEO at Telemedico, says it’s fielding over 100,000 consultations per month at this stage — and is projecting that to increase to 250,000 by the end of 2021.
The platform has been used by more than 900,000 patients to date. While more than 600 doctors currently provide remote consultations for Telemedico.
Services its platform offers include consultations with a doctor via chat, video, telephone; AI-triaging and coordination; and booking of in-person visits and blood testing.
The business has been growing 3x YoY since 2018, per Sieczkiewicz, who says it has carried out more than 2.5 million appointments in total to-date, spanning 10 languages.
It’s expecting to double the size of its (60-strong) team this year, he adds.
The Series A funding will be put towards international expansion — including eyeing potential growth opportunities in LatAm.
Expanding supported languages is part of that plan. (Currently it supports consultations in English, Spanish, Polish, Czech, Russian, Ukrainian, Serbian, Portuguese, Turkish, Arabic; languages it’ll be adding next are: Italian, French, Greek, German, and Romanian.)
Telemedico’s best markets to date are Poland and Spain, per Sieczkiewicz, who says it’s active in 14 markets in total.
“We aim to increase our presence on the markets where we are already active: Spain, Russia, Portugal, Turkey, and launch on new markets, with new languages — mainly EU Countries, like France, Germany, Greece, Italy, and Romania,” he adds.
While there’s a lot of activity in the telehealth space, Telemedico bills itself as one of the only ‘plug and play’ platforms for insurance companies — offering a whitelabel service geared towards a sector that Sieczkiewicz argues may not want to relinquish so much control to brasher, brand-building ‘digital first’ competitors.
“We provide our enterprise customers with a platform they can customise to meet their needs and a network of over 600 doctors who speak 10 languages that they can mix with their own network,” he tells TechCrunch. “We help our customers strengthen their value chain, so they can stand up against digital-first insurance companies who have been emerging for the last couple of years.
“The top three competitors are Babylon Health, KRY, and Pushdoctor. They represent a B2C approach, with a strong local presence. They are also building strong brand awareness around the service, and force insurance companies to let their customers leave their ecosystem. From the feedback that we receive from insurance companies, this isn’t their favourite way of organizing the patient flow.”
“One major drawback for insurers using the Babylon-style setup is that in the future, Babylon might be able to begin offering insurance cover directly to consumers, cutting out the original insurance companies themselves — similar to how digital-first insurance companies like Oscar Health operate,” he adds.
Telemedico says its system can be deployed within around 48 hours — letting insurance firms and other enterprise customers offer a telehealth platform that gives their users access to web and mobile white-label patient portals; online consultations; medical documentation storage; in person visits; automated triaging; and symptom checker tools.
The startup also offers insurance companies access to an ‘insurance product creator’ to manage variants of their current product suite for specific groups of users.
Telemedico says its platform is used by “a number” of health ministries around the world, as well as PZU, Allianz, AXA, Metrored, Compensa, TU Zdrowie and more than 50 other insurance and medical assistance companies (“mostly” within the telemedicine space).
It does also offer a direct-to-consumer telehealth service in Poland, via the public healthcare system — where consultation fees are covered by the insurance of the publicly funded National Health Fund of Poland (i.e. free at the point of use for patients).
It also offers consultations via a fee-for-service model. Sieczkiewicz says its USP is “that we are built on three foundations: B2B, whitelabel and cross-country services”.
“Telemedico is primarily a B2B company,” he continues. “The majority of our business comes from recurring enterprise customers, such as insurance companies, banks, pharmacies and other companies who either offer health services and want to improve them with a digital layer or want to offer health services to their digital offering.
“We see a huge trend among insurance companies, that add new healthcare products to their offers. We help create those products with our so-called ‘insurance product creator’, providing them with tools for setting up and management of their digital health services, patient flow, and more.”
He also says the ‘plug and play’ style SaaS platform supports a modular approach — enabling the target b2b users to zero in on the most useful aspects of its platform for their particular customer case (be it telemedicine, drug ordering or automated triage).
The software can be completely integrated into a customer’s platform or run as a stand-alone product, he adds.
“Telemedicine is no longer an add-on to insurance packages but in many countries the first touchpoint with medical services — a way to increase patients satisfaction and decrease costs for the insurer,” Sieczkiewicz suggests.
Commenting on the Series A funding in a statement, Michael Szalontay, general partner at Flashpoint VC, said: “We are convinced that telemedicine will become a primary distribution channel for medical services in the next decade and Telemedico is poised to become a European leader in this domain. We are proud to become Pawel’s partner in Telemedico, he has an amazing energy and conviction, and in our experience, such gumption is a prerequisite for success.”
“This decade will be the Golden Twenties for telemedicine,” added Dr. Andreas Nemeth, general partner at UNIQA Ventures, in another supporting statement. “The potential is enormous and telemedi.co is already setting standards here today. telemedi.co has the right product, the right team and the right culture to support insurers in providing seamless telemedicine services. We are therefore delighted and proud to be able to follow the path together in the future and pleased to be able to become a part of the company’s international growth story.”
Source: https://techcrunch.com/2021/02/01/telemedico-gets-6-6m-to-grow-the-reach-of-its-digital-health-saas/
Kleiner Perkins is one of the most prestigious venture firms in all of Silicon Valley. The firm has invested in startups like Twitter, Google, Square, Peloton, Spotify, Robinhood and many, many more. As such, the folks at Kleiner Perkins know a thing or two about what it takes to fundraise across the various stages of a company.
One of the more difficult jumps to make is going from raising a seed round to picking up a Series A. Rather than focusing on the idea and the product market fit, founders must show that their product can scale, with numbers to back it up.
It can be grueling and complicated, but Kleiner Perkins partner Bucky Moore is going to break it all down for us at TechCrunch Early Stage – Operations & Fundraising on April 1 & 2.
TC Early Stage – Operations & Fundraising is a virtual event focused squarely on early stage founders. The event will have dozens of breakout sessions led by investors and experts that break down the most difficult parts of building a business, focusing on startup core competencies like fundraising and operations.
Moore will lead a session called “4 things to think about before raising a Series A” at the event, which takes place on April 1 – 2 and is totally virtual. Plus, Moore will answer questions from the audience.
Here’s a look at what the presentation will focus on:
The most important part of raising a Series A is the decisions made before the fundraise. A shockingly common mistake founders make is not thinking through four critical areas before talking to investors. Bucky Moore will share how founders can prepare for a successful Series A, and discuss what investors are looking for when they write a Series A check. His advice will be valuable to all entrepreneurs looking to raise early-stage funding.
What are those four areas? You’ll have to pick up a ticket (which includes a year of Extra Crunch) to find out!
Moore sits on the boards of Netlify, Materialize, CodeSandbox, Opstrace and Stackbit, and tends to focus his energy on developer-facing software and infrastructure. Before Kleiner Perkins, he was an. investor at Costanoa Ventures, and prior to that he was at Battery.
He also published a list of the areas he’s most interested in as we head into 2021, which you can check out here. Unsurprisingly, data, ML/AI, and advances in cloud technology are front and center.
We’re amped to hear from Moore at TechCrunch: Early Stage. You can pick up a ticket to the show here.
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Hi friends and new readers, welcome back to The Station, a newsletter dedicated to all the present and future ways people and packages move from Point A to Point B.
Let’s get right to it.
Oh wait, one item first. Tesla earnings happened and as always a bunch of new promises and products and timelines were laid out, including a Knight Rider-inspired steering yoke in the “plaid” Model X.
Image Credits: Tesla
This stalkless yoke steering wheel is suboptimal. (yup I said it). And it’s already getting the attention of federal safety regulators.
Yes yes, you’ve seen these yokes in race cars. However, the steering ratio is vastly different between race cars and the vehicle sitting in your driveway.
I’m not the only who sees this as an awkward and potentially dangerous design choice.
Tim Stevens at CNET’s Roadshow, who has a deep background in automotive, notes that a race car needs as little as 180 degrees of rotation to turn from the left-most steering extent to the right, while the average passenger car has 900 degrees of rotation from full left to right.
That matters because daily driving requires you to change the positioning of your hands on the steering wheel while making U-turns and the like. When the steering wheel is a circle, it’s an easy task. This shape can make it awkward and prone to flubbing the maneuver.
It’s true that we don’t yet know if Tesla adjusted the steering ratio. Still, a higher steering ratio introduces other potential issues. You can read his complete thoughts here.
Lucid Motors jumped in and threw a little shade Tesla’s way with a tweet that shows a picture of the new Lucid Air steering wheel and this: “Take the wheel: The knurled metal turbines and capacitive touchbars provide intuitive control of #LucidAir DreamDrive ADAS functions. It’s also pretty nice to look at, too.”
Take the wheel: The knurled metal turbines and capacitive touchbars provide intuitive control of #LucidAir DreamDrive ADAS functions. It’s also pretty nice to look at, too. pic.twitter.com/7qua3LmNjj
— Lucid Motors (@LucidMotors) January 28, 2021
OK, y’all onward!
Email me at kirsten.korosec@techcrunch.com to share thoughts, criticisms, offer up opinions or tips. You can also send a direct message to me at Twitter — @kirstenkorosec
Micromobbin’
After a quiet few weeks, the micromobbin’ news floodgates opened. Perhaps, it was due to the three-day Micromobility World event that was held this past week.
First up, is Spin and the three-wheel scooter it rolled out with partners Segway-Ninebot and software startup Tortoise. (the scooter is pictured below) The scooter has the noteworthy addition of a third wheel to make it more stable and easier to ride, important features for any micromobility company hoping to appeal to a wider demographic.
The Spin S-200 scooter, as it’s call, is also equipped with repositioning software that allows remote operators thousands of miles away to move vehicles off the sidewalk and into a proper parking spot. A fleet of about 300 Spin S-200 scooters will be tested in Boise, Idaho this spring. But the goal is much grander. Spin ultimately wants to roll out remotely operated scooters to cities in North America and Europe in 2021.
Image Credits: Spin
Meanwhile, Lime is adding a whole new mode to its portfolio: electric mopeds. Lime CEO Wayne Ting first hinted late last year that a “third mode” of transport beyond scooters and bikes was in the works for the first quarter of 2021.
The addition of the mode can be viewed in two ways, depending on how bullish you are about Lime. Is this a desperate attempt to appeal to its investors and find new revenue streams? Or is this a long-planned strategy aimed at owning the spectrum of inner city travel from jaunts to the corner store to longer distance trips up to five miles?
For what it’s worth, it seems this plan has been in the works for some time, but was delayed due to COVID.
Lime plans to launch as many as 600 electric mopeds on its platform this spring in Washington D.C. The company is also working with officials to pilot the mopeds in Paris. Eventually, the mopeds will be offered in a “handful of cities” over the next several months.
Image Credits: Lime
One more interesting item …
Voi Technology, the European micromobility company, is aiming to secure a license to operate in New York City. It’s big selling point? The company said it has developed an electric scooter that can measure air quality as it travels through urban areas.
The Voiager 4 (V4) has been designed to contribute to lowering traffic congestion and fuels, as well as helping cities to collect data on the improvements, the company said. The scooter, which is coming out in spring, will have other features like antimicrobial handlebars, audible alarms to alert pedestrians and Near Field Communication technology that lets users unlock it with the tap of a smartphone or smart watch.
Deal of the week
Sila Nanotechnologies raised $590 million in capital the good old fashioned way: institutional investors and venture capital firms. (I couldn’t have a SPAC as ‘deal of the week,’ yet again.)
Sila Nanotechnologies is a Silicon Valley battery materials company that has spent the better part of a decade developing technology designed to pack more energy into a cell at a lower cost.
With demand for batteries climbing, automakers are looking for the next-generation tech that will give them a competitive edge. Sila Nano might just be the product automakers are looking for. The company, co-founded by Tesla alum Gene Berdichevsky, has already locked in partnerships with Amperex Technology Limited as well as automakers BMW and Daimler.
Sila Nano, which has a post-money valuation of $3.3 billion, plans to use the funds to hire another 100 people this year and begin to buildout a factory in North America capable of producing 100 gigawatt-hours of silicon-based anode material, which is used in batteries for the smartphone and automotive industries. Sila Nano said it plans to start production at the factory in 2024. Materials produced at the plant will be in electric vehicles by 2025, according to the company, which has yet to reveal the location of the factory.
The Series F funding round was led by Coatue with significant participation by funds and accounts advised by T. Rowe Price Associates, Inc. Existing investors 8VC, Bessemer Venture Partners, Canada Pension Plan Investment Board, and Sutter Hill Ventures also participated in the round.
Other deals that got my attention …
AUTO1, a used car trading platform based in German, set the share price for its initial per offering between 32 and 38 euros with an aim to raise at least 1.5 billion euros ($1.83 billion), Reuters reported.
Faraday Future, the electric vehicle startup that has come close to imploding numerous times in its short history, has found money where everyone else has: public markets via a SPAC. The company said it has reached an agreement to merge with Property Solutions Acquisition Corp in a deal valuing the combined entity at $3.4 billion. Bloomberg’s article included a quote from Jordan Vogel, chairman and c-CEO of Property Solutions, that answered one of my questions.
“There are no skeletons in the closet,” he said. “We have spent an exorbitant amount of time examining the history.”
Freewire Technologies, the electric vehicle charging and power solutions company, raised $50 million in a Series C funding round led by Riverstone Holdings with participation from current shareholders bp ventures, Energy Innovation Capital, TRIREC and Alumni Ventures Group. The company said the funds will be used to boost production of its Boost Charger product and speed up its expansion into international markets.
Starship Technologies, the autonomous delivery robot startup, has raised $17 million. Despite some struggles, the company has expanded its fleet five-fold since COVID-19 swept through the European and North American markets that it operates in. Starship now has 1,000 autonomous delivery bots in its fleet.
One item that I didn’t uncover until after publication: the company’s CEO Lex Bayer, a former sales leader from Airbnb, who took over the top spot at Starship in 2018, has left the company. Ahti Heinla, Starship Technologies’ co-founder and CTO, is serving as interim CEO while the company “conducts a thorough search for the best person to lead the company into the future,” a spokesperson told me.
Wheels Up, the jet charter company, is in talks to go public through a merger with special purpose acquisition company Aspirational Consumer Lifestyle Corp, Reuters reported.
Wingcopter, the German drone technology startup, raised $22 million in a Series A round led by Silicon Valley VC Xplorer Capital, as well as German growth fund Futury Regio Growth. As TechCrunch’s Darrell Etherington notes, the company has come a long way since its founding in 2017. In the past four year, Wingcopter has developed, built and flown its heavy-lift cargo delivery drone, which offers all the benefits of vertical take-off and landing with the advantages of fixed-wing aircraft for longer-distance horizontal flight.
Zadar Labs, an early stage startup that is developing high-resolution, low-cost imaging radars for autonomous systems raised $5.6 million in seed funding led by Tim Kentley Klay — yes the Tim Kentley Klay, who co-founded Zoox, was ousted as CEO by the board and has since gone on to found a new AV startup called HYPR. Other investors include Leslie Ventures, Jeff Rothschild, Plug and Play, and Mentors Fund.
GM charts its EV future
GM is hardly the first company to pledge to become carbon neutral by [insert some distant date]. But GM’s announcement this past week is different than other sustainability promises and platitudes.
I’m actually surprised it didn’t receive more attention. I guess Robinhood and Gamestop were too intriguing.
In short: GM pledged to be carbon neutral by 2040, a goal it will achieve by removing emissions from all of its products and global operations as well as offsetting those emissions through carbon credits or carbon capture.
The company also committed to produce only electric vehicles by 2035 — just 14 years away. In automaker years, thats just two, maybe three design cycles. In other words: that’s short.
To be clear, when I spoke to GM, I heard words like “hope” and “aspire to.” But when pressed, the company said ‘yes, this a real goal.’
Moving its portfolio, which today is dominated by internal combustion engine vehicles, will be a transition, a GM spokesperson told TechCrunch, adding that the main priority is to bring employees along in that shift.
A “transition” doesn’t adequately articulate what will need to happen to pull off a goal of this size and scope. Yes, there are new EVs coming in the pipeline. And GM has committed to spend $27 billion over the next five years on the development of electric vehicles and automated technology, a 35% increase that exceeds the automaker’s investment in gas and diesel.
But a look across its current portfolio and there’s no denying that GM is a maker of gas and diesel vehicles.
Will these vehicle models cease to exist or will they be “electrified?” How quickly will GM be able to transition its numerous factories to reflect its “only electric” mission? How will its workforce respond?
My questions abound. I am confident to make this prediction: the next decade at GM is going to be a wild ride.
AutoX’s next big move in China
I was just thinking to myself, ‘what is AutoX up to?’ when I saw their latest announcement. The Chinese autonomous vehicle company, which has also been developing and testing its tech in the U.S., opened its robotaxi pilot program to the public in Shenzhen. These robotaxis can be hailed and do not have a human safety operator behind the wheel.
It’s a milestone for the company and the country. AutoX said this is the first time that the general public will be able to book a completely autonomous robotaxi without accompanying safety drivers in China. Once a person registers, they can book rides through AutoNavi, the mapping and transportation-booking app owned by Alibaba, one of the startup’s investors.
You might recall that inAutoX opened in April 2020, an 80,000-square-foot Shanghai Robotaxi Operations Center, following a 2019 agreement with municipal authorities to deploy 100 autonomous vehicles in the Jiading District. The vehicles in the fleet were assembled at a factory about 93 miles outside of Shanghai.
The Shanghai operations center marked an escalation of AutoX’s ambitions that have expanded over the past year.
AutoX has now set up a robotaxi operations center in Shenzhen to support this new driverless program. The company says this new facility is more advanced than the previous operations centers it built in Shanghai.
Popular, highly-scrutinized trading app Robinhood has raised $2.4 billion to its balance sheet from shareholders, as first reported by the Wall Street Journal and then confirmed by the company. The private startup raised $1 billion on Friday, meaning that it has raised $3.4 billion in a handful of days as it seeks to support a flood of retail investors looking to invest in individual stocks on its app – spurred by Redditors investing in GameStop in a effort to frustrate short sellers, in part.
Per Robinhood, the new funds were “led by Ribbit Capital, with participation from existing investors including ICONIQ, Andreessen Horowitz, Sequoia, Index Ventures, and NEA with terms being finalized.” It’s somewhat unconventional to announce a raise that is still being sorted, but Robinhood wants to calm nerves, so shouting about the capital ahead of the paperwork being fully smoothed makes some sense.
The new capital comes at a challenging time for the unicorn, which could pursue an IPO this year – but also a time when it’s enjoying considerable public attention, likely introducing it to many potential new users.
Last week, Robinhood found itself overwhelmed by the demand of new investors looking to invest in meme-stocks such as GameStop and AMC. Robinhood had to temporarily ban trading on these stocks due to stiff financial requirements. As of right now, Robinhood users are limited to buying just a few shares of GameStop and other stocks despite the company haven taken on more capital since the GameStop run began.
TechCrunch emailed Robinhood asking for details of the $2.4 billion infusion, curious if it was raised as primary capital, convertible debt that could convert at the time of a public offering, or other mechanism. Update: Robinhood declined to comment on the record. Sources familiar, however, tell TechCrunch that the funds were raised in the form of a convertible note. Forbes initially broke the news that the financing was raised as a convertible note.
“[A]mid this week’s extraordinary circumstances in the market, we made a tough decision today to temporarily limit buying for certain securities. As a brokerage firm, we have many financial requirements, including SEC net capital obligations and clearinghouse deposits. Some of these requirements fluctuate based on volatility in the markets and can be substantial in the current environment. These requirements exist to protect investors and the markets and we take our responsibilities to comply with them seriously, including through the measures we have taken today,” the company wrote in a post.
In other words: Robinhood ran low on capital, which meant it had to limit the frenzy of activity on its app. While the reasons behind Robinhood’s limits were technical, investors largely saw the constriction as a slap in the face in favor of hedge funds. Late Friday, Robinhood released yet another blog post detailing what happened during what some see as a pivotal week in the company’s trajectory.
“Our goal is to enable purchasing for all securities on our platform. This is a dynamic, volatile market, and we have and may continue to take action to make sure we meet our requirements as a broker so we can continue to serve our customers for the long term,” the statement read.
Today’s new capital will likely help Robinhood add some much needed buffer room, to the delight of its customers and investors.
