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Finesse, a startup promising to take the guesswork and waste out of fashion, is announcing that it has raised $4.5 million in seed and pre-seed funding.
Founder and CEO Ramin Ahmari said the tremendous waste in the fashion industry has become a badly-kept secret, with Burberry recently facing a backlash over its practice of burning unwanted products, and the industry as a whole producing an estimated 13 million tons of textile waste each year.
Finesse is looking to change that, Ahmari said, in part by taking advantage of the fact that that fashion trends are moving out of the “hermetically sealed” world of catwalks and onto social media, where new products take off “on the backs and bodies and posts” of influencers like Kylie Jenner.
“This is data we have access to,” he said. Noting that he previously worked in finance, Ahmari added that the stock market is “much more unpredictable” than the fashion industry — there just hasn’t been a tech startup applying tools like natural language processing and deep learning to fashion.
“In the simplest terms, you can think of what we do as seeing when Kylie posts a picture on Instagram and people go crazy about it … and then you see that happen not just on Kylie’s post but across Instagram, TikTok, Google Trends,” he said. “We predict the establishing of a trend before it goes super viral.”
Image Credits: Finesse
Finesse then uses this data to design new products. Ahmari said that by taking advantage of a “very fast supply chain,” along with tools like CLO 3D modeling software, Finesse can go from identifying a trend to having a product available for purchase in less than 25 days.
While the startup is officially launching today, it’s already been selling products through “drops,” where customers vote for and pre-order products that will only be available in limited quantities. Ahmari said Finesse focuses on selling unique pieces rather than staples, but because it’s confident about consumer demand, it can keep things much more affordable — the products currently for sale range from $8 to $116.
And unlike most fashion companies, Ahmari said that Finesse does not need to employ a giant design department, although he suggested that team members like Vice President of Product Andrea Knopf and Head of Product Development Brittany Fleck — who work in tandem with the startup’s algorithms —are “artists in their own right.”
“Unless we have true AI — which we’re very far from — you are never going to have a machine that’s purely creative,” he said. “You have to have feedback cycles … What we are eliminating is the job where it’s just an intern doing grunt work, all of these people just going through Instagram to find new fashion trends.”
Ahmari also said that with its emphasis on sustainability and connecting with the LGBTQ community (Ahmari identifies as queer and non-binary, and all of the startup’s products are designed for any gender), Finesse is aimed squarely at Gen Z consumers who are tired of fashion dictated by “white, older, cisgender men.”
The startup’s investors include former Twitter head of engineering Alex Roetter, Collective Health CEO Ali Diab, Hoxton Ventures, MaC Venture Capital, Mango Capital and Fab Fit Fun co-founder Sam Teller.
“We believe that FINESSE is truly the future of fashion, from its trend prediction to sustainable supply-chain and manufacturing,” said MaC Managing Partner Marlon Nichols in a statement. “We hope other fashion brands can learn from FINESSE’s disruption in the space and we’re eager to see what’s next.”
Source: https://techcrunch.com/2021/01/27/finesse-launch-seed-funding/
The top-line feature for Ring’s latest is no doubt its price. No way around that. At $60, it’s $40 cheaper than the standard Video Doorbell – and prices from there go up significantly, with the “Elite” running $350.
Perhaps the company is feeling some pressure from the race the bottom for smart home hardware pricing. Wyze, notably, has done the Wyze thing, launching a $30 doorbell along with a slew of other products in September. Though as of this writing, that device is still listed as a “pre-order.”
The Wyze device was expected to be available this month, but has since been pushed back to February. The Ring Video Doorbell Wired is also currently slated for next month, with a shipping date of the 24th. As the name suggests, the new product is only available in a hardwired option – which could be a deal breaker for some. Other standard features here include 1080p video with night vision, motion zones that trigger notifications and two-way audio with noise cancelation built-in. It’s also the company’s smallest doorbell to date.
The Amazon-owned company is, of course, not without its share of controversy. Earlier this month, we noted a security flaw that exposed the locations and home addresses of people using its Neighbors app. There has also been plenty of concern around the brand’s willingness to partner with the law enforcement. A number of civil rights penned an open letter in 2019. Earlier this year, Ring finally enabled end-to-end encryption that requires user opt-in.
The new doorbell will be available through Amazon (naturally) and will be a Home Depot in-store exclusively through late-March.
Source: https://techcrunch.com/2021/01/27/rings-new-doorbell-is-60/
Pinecone, a new startup from the folks who helped launch Amazon SageMaker, has built a vector database that generates data in a specialized format to help build machine learning applications faster, something that was previously only accessible to the largest organizations. Today the company came out of stealth with a new product and announced a $10 million seed investment led by Wing Venture Capital.
Company co-founder Edo Liberty says that he started the company because of this fundamental belief that the industry was being held back by the lack of wider access to this type of database. “The data that a machine learning model expects isn’t a JSON record, it’s a high dimensional vector that is either a list of features or what’s called an embedding that’s a numerical representation of the items or the objects in the world. This [format] is much more semantically rich and actionable for machine learning,” he explained.
He says that this is a concept that is widely understood by data scientists, and supported by research, but up until now only the biggest and technically superior companies like Google or Pinterest could take advantage of this difference. Liberty and his team created Pinecone to put that kind of technology in reach of any company.
The startup spent the last couple of years building the solution, which consists of three main components. The main piece is a vector engine to convert the data into this machine-learning ingestible format. Liberty says that this is the piece of technology that contains all the data structures and algorithms that allow them to index very large amounts of high dimensional vector data, and search through it in an efficient and accurate way.
The second is a cloud hosted system to apply all of that converted data to the machine learning model, while handling things like index lookups along with the pre- and post-processing — everything a data science team needs to run a machine learning project at scale with very large workloads and throughputs. Finally, there is a management layer to track all of this and manage data transfer between source locations.
One classic example Liberty uses is an eCommerce recommendation engine. While this has been a standard part of online selling for years, he believes using a vectorized data approach will result in much more accurate recommendations and he says the data science research data bears him out.
“It used to be that deploying [something like a recommendation engine] was actually incredibly complex, and […] if you have access to a production grade database, 90% of the difficulty and heavy lifting in creating those solutions goes away, and that’s why we’re building this. We believe it’s the new standard,” he said.
The company currently has 10 people including the founders, but the plan is to double or even triple that number, depending on how the year goes. As he builds his company as an immigrant founder — Liberty is from Israel — he says that diversity is top of mind. He adds that it’s something he worked hard on at his previous positions at Yahoo and Amazon as he was building his teams at those two organizations. One way he is doing that is in the recruitment process. “We have instructed our recruiters to be proactive [in finding more diverse applicants], making sure they don’t miss out on great candidates, and that they bring us a diverse set of candidates,” he said.
Looking ahead to post-pandemic, Liberty says he is a bit more traditional in terms of office versus home, and that he hopes to have more in-person interactions. “Maybe I’m old fashioned but I like offices and I like people and I like to see who I work with and hang out with them and laugh and enjoy each other’s company, and so I’m not jumping on the bandwagon of ‘let’s all be remote and work from home’.”
SAP today announced a new offering it calls ‘RISE with SAP,’ a solution that is meant to help the company’s customers go through their respective digital transformations and become what SAP calls ‘intelligent enterprises.’ RISE is a subscription service that combines a set of services and product offerings.
SAP’s head of product success Sven Denecken (and its COO for S/4Hana) described it as “the best concierge service you can get for your digital transformation” when I talked to him earlier this week. “We need to help our clients to embrace that change that they see currently,” he said. “Transformation is a journey. Every client wants to become that smarter, faster and that nimbler business, but they, of course, also see that they are faced with challenges today and in the future. This continuous transformation is what is happening to businesses. And we do know from working together with them, that actually they agree with those fundamentals. They want to be an intelligent enterprise. They want to adapt and change. But the key question is how to get there? And the key question they ask us is, please help us to get there.”
With RISE for SAP, businesses will get a single contact at SAP to help guide them through their journey, but also access to the SAP partner ecosystem.
The first step in this process, Denecken stressed, isn’t necessarily to bring in new technology, though that is also part of it, but to help businesses redesign and optimize their business processes and implement the best practices in their verticals — and then measure the outcome. “Business process redesign means that you analyze how your business processes perform. How can you get tailored recommendations? How can you benchmark against industry standards? And this helps you to set the tone and also to motivate your people — your IT, your business people — to adapt,” Denecken described. He also noted that in order for a digital transformation project to succeed, IT and business leaders and employees have to work together.
In part, that includes technology offerings and adopting robotic process automation (RPA), for example. As Denecken stressed, all of this builds on top of the work SAP has done with its customers over the years to define business processes and KPIs.
On the technical side, SAP is obviously offering its own services, including its Business Technology Platform, and cloud infrastructure, but it will also support customers on all of the large cloud providers. Also included in RISE is support for more than 2,200 APIs to integrate various on-premises, cloud and non-SAP systems, access to SAP’s low-code and no-code capabilities and, of course, its database and analytics offerings.
“Geopolitical tensions, environmental challenges and the ongoing pandemic are forcing businesses to deal with change faster than ever before,” said Christian Klein, SAP’s CEO, in today’s announcement. “Companies that can adapt their business processes quickly will thrive – and SAP can help them achieve this. This is what RISE with SAP is all about: It helps customers continuously unlock new ways of running businesses in the cloud to stay ahead of their industry.”
With this new offering, SAP is now providing its customers with a number of solutions that were previously available through its partner ecosystem. Denecken doesn’t see this as SAP competing with its own partners, though. Instead, he argues that this is very much a partner play and that this new solution will likely only bring more customers to its partners as well.
“Needless to say, this has been a negotiation with those partners,” he said. “Because yes, it’s sometimes topics that we now take over they [previously] did. But we are looking for scale here. The need in the market for digital transformation has just started. And this is where we see that this is definitely a big offering, together with partners. “
The pandemic has spelled economic setbacks for many people and industries, but the capital swirling about the technology world continues to roar along. In the latest development, TCV — the storied venture capital firm behind the likes of Airbnb, Spotify, Peloton and Facebook — has closed a record $4 billion for its latest fund.
This is not only the company’s biggest fund to date, but it also speaks to just how fast the tech industry is accelerating in terms of capital and how much of it tech is attracting. In 25 years of operations (a milestone it passed in 2020) TCV invested $14 billion across hundreds of startups. This latest $4 billion fund raised in a matter of months represents nearly 30% of that figure.
(It’s also more than the company originally targeted, which was $3.25 billion.)
Parter John Doran told TechCrunch the plan will be to use the money to continue backing existing portfolio companies, as well as make new bets, both in areas that have shown to be very strong winners in the last year — e-commerce, education, and tools to enable working in the cloud, for example — but also investments in areas that may not be doing as well right now, but TCV will believes will return, like travel.
“We have to take a long term view,” he said in an interview. “It’s about great founders and CEOs, and where those in areas like travel, you’ll still see the startups get funded at up rounds. Besides, who will be better positioned to grow and take advantage of a world that’s now more digital? That is a huge opportunity in the long term.”
As with other big capital events, the closing of a VC fund may not be intrinsically interesting news in itself, but it’s a significant bellwether that points to the level of confidence, interest and activity in the early stages of the funding process. That, in turn, has a direct knock-on effect for startups, and subsequently the technology industry at large.
In the case of TCV XI, as it is known, it’s a sign of strength in the market — it is $1 billion more than its previous fund, closed before the pandemic in 2019 — but also an endorsement of some of the less traditional processes and practices that have become the norm in many of our lives.
Notably, the raising (and closing) of the fund was done entirely virtually over the last year, Julia Roux, the company’s head of investor relations, told TechCrunch, from a mix of returning and new LPs. Going virtual is also, in many cases, the route that TCV (and other VCs) have taken in closing deals over the last year too, which looks like it may now be here to stay.
TCV has been very active in the past year, not just with private startup investments but seeing one of its most successful startups go public. Airbnb boldly went for an IPO in December, in the wake of a year that saw its business providing accommodation and other services to travellers come to a grinding halt.
The IPO was an example of the kind of more long-term investing that the firm is keen on doing (and very much has the funds to do now) despite current market conditions. Doran pointed out that TCV remains a “big believers in the Airbnb story,” investing in more shares in the company in the IPO.
Other big investments this year have included a lot of activity in commerce and fintech — including Mollie (raised $106 million), Spryker ($130 million), Revolut ($500 million), Klarna ($650 million), Nubank ($400 million) and Mambu ($135 million) — and Strava ($110 million). (Note how many of those rounds were outside the U.S.: almost all of them. The company says it has some $4 billion under management outside the U.S. now.)
Recent exits include AxiomSL, Genesys, Cradlepoint, and Silver Peak.
“We are humbled by the ongoing support of new and returning investors, which enabled us to raise a record sized fund,” said Jay Hoag, a founding general partner at TCV, in a statement. “Just as importantly, we are honored by all the great entrepreneurs we’ve worked with over the past 25 years, as their vision and relentless execution has been our foundation. We look forward to backing entrepreneurs with our new fund that we believe will become the next generation of iconic companies, in this incredibly fertile technology industry.”
