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Cheq raises $5M for a proactive, AI-driven approach to safe ad placement

While brand safety and fraud prevention have been big topics in the online ad industry over the past couple years, Cheq CEO Guy Tytunovich argued that “first generation solutions for ad verification” aren’t good enough.

The problem, Tytunovich said, is that existing products use sampling to alert advertisers to issues “after the fact.” Compare this to credit card fraud — if the credit card company only alerted you long after the fraud had occurred, “You’re not going to be happy with that kind of answer.”

At Cheq, Tytunovich and his team have developed an approach that uses artificial intelligence to deliver what he calls “autonomous brand safety” — the idea is that when an ad is being served, Cheq can detect whether it might be a fraudulent impression that will only be seen by bots, or if it might show up next to content that a brand doesn’t want to be associated with. If there’s an issue, Tytunovich said, “We block [the ad] from being served in real time.”

Beforehand, advertisers set up their own ad placement guidelines, and afterwards, they can see the reason why individual ads didn’t get served.

Cheq is announcing that it has raised $5 million in Series A funding led by Battery Ventures . Tytunovich said that 80 percent of the Cheq team consists of developers, and that most of the funding will go towards further product development.

If the Cheq approach really is so much better, why aren’t bigger, better-funded companies doing the same thing? Tytunovich pointed to his experience, and his team’s experience, in the Israel Defense Forces, where he said “they teach you to compensate for a lack of scale, of manpower, by focusing on automation and speed.”

Similarly, Tytunovich said that at Cheq, “the name of the game is speed.”

“A lot about our underlying technology lies around the speed of the data crunching,” he added. “We look at around 700 data parameters per impression … We need to be able to take all that data, analyze it and do it in real time.”

Cheq has offices in Tokyo, New York and Tel Aviv. Tytunovich said it’s currently focused on the American and Japanese markets — customers listed on the Cheq website include Coca Cola, Turner and Mercedes-Benz. Update: A spokesperson clarified that those companies are listed on the Cheq website because Cheq participated with them in The Bridge program.

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ServiceTitan is LA’s least likely contender to be the next billion-dollar startup

The city of Glendale, Calif. seems like an unlikely place to grow one of the next billion-dollar startups in the booming Los Angeles tech ecosystem.

Located at the southeastern tip of the San Fernando Valley, the Los Angeles suburb counts its biggest employers as the adhesive manufacturer Avery Dennison; the Los Angeles industrial team for the real estate developer CBRE; the International House of Pancakes; Disney Consumer Products; DreamWorks Studios; Walt Disney Animation and Univision. “Silicon Beach” this ain’t.

But it’s here in the (other) Valley’s southernmost edge that investors have found a startup they consider to be the next potential billion-dollar “unicorn” that will come out of Los Angeles. The company is ServiceTitan, and its market… is air conditioners.

More specifically, it’s the contractors that service equipment like the heating, ventilation and cooling systems at commercial and residential properties across the U.S.

Founded by Ara Mahdessian and Vahe Kuzoyan in 2012, ServiceTitan is very much an up-and-coming billion-dollar business that’s a family (minded) affair.

Mahdessian and Kuzoyan met on a ski trip organized by the Armenian student associations at Stanford and the University of Southern California back when both men were in college.

Both programmers, the two reconnected after doing stints as custom developers during and after college, and then when they were developing tools for their families’ businesses as residential contractors in the Los Angeles suburb of Glendale.

The two men built a suite of services to help contractors like their fathers manage their businesses. Now following a $62 million round of funding led by Battery Ventures last month, the company is worth roughly $800 million, according to people with knowledge of the investment, and is on its way to becoming Los Angeles’ next billion-dollar business.

Battery isn’t the only marquee investor to find value in ServiceTitan’s business developing software managing day labor.

Iconiq Capital, the investment firm managing the wealth of some of Silicon Valley’s most successful executives (the firm counts Facebook chief executive Mark Zuckerberg, and senior staff like Dustin Moskovitz and Sheryl Sandberg; Twitter chief Jack Dorsey; and LinkedIn founder and chief executive Reid Hoffman among its clients, according to a 2014 Forbes article), has also taken a shine to the now-gargantuan startup from Glendale.

It was Iconiq that put a whopping $80 million into ServiceTitan just last year — and while the 2017 cash infusion may have been larger, the company’s valuation has continued to rise.

That’s likely due to a continually expanding toolkit that now boasts a customer relationship management system, efficient dispatching and routing, invoice management, mobile applications for field professionals and marketing analytics and reporting tools.

“ServiceTitan’s incredibly fast growth is a testament to the brisk demand for new mobile and cloud-based technology that is purpose-built for the tradesmen and women in our workforce,” said Battery Ventures general partner Michael Brown — who’s taking a seat on the ServiceTitan board.

What distinguishes the ServiceTitan business from other point solutions is that they’ve taken to targeting not mom-and-pop small businesses but franchises like Mr. Rooter and George Brazil. Gold Medal Service, John Moore Services, Hiller Plumbing, Casteel Air, Baker Brothers Plumbing and Air Conditioning and Bonney may not be household names, but they’re large providers of contractors who work under those brands.

The company counts 400 employees on staff, and will look to use the money to continue to grow out its suite of products and services, according to a March statement announcing the funding.

And as Battery Ventures investor Sanjiv Kalevar noted in a blog post last year, the opportunity for software companies serving blue-collar workers is huge.

For people sitting at our desks and working behind laptops on programs like Microsoft Office, it can be easy to overlook the large, sometimes forgotten, workforce out there in construction, manufacturing, transportation, hospitality, retail and many other multi-billion dollar industries. Indeed, more than 60% of U.S. workers and even more globally fall into these “blue collar” industries.

By and large, these workers have not benefitted much from recent technology improvements available to office-based workers—think new email and workplace-collaboration technologies, or advanced sales and HR systems. Never mind the long-term opportunities for companies in these sectors from technologies like artificial intelligence, drones, and virtual or augmented reality; hourly and field workers are dealing with much more basic on-the-job challenges, like finding work, getting their jobs done on time and getting paid. These more basic needs can be solved with seemingly simple technologies—software for billing, scheduling, navigation and many other business workflows. These kinds of technologies, unlike AI, don’t automate away workers. Instead, they empower them to be more efficient and productive.

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Pendo acquires Insert to add mobile apps to its user analytics and engagement platform

Pendo office Pendo helps businesses understand and assist their customers with tools like analytics, polls and walkthroughs. Until now, however, CEO Todd Olson said the company has been focused on the web (both desktop and mobile), with just a single mobile developer on the team. “We as a team constantly had a lot of internal debates about how much to invest in [mobile],” he said. “If… Read More

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Entelo steps up its AI game with $20M Series C 

 The race to crown a winner in the AI-powered recruiting software space is on. With both Workey and Mya nabbing rounds in the last few weeks, the timing is prime for a few players to seek advantage in the form of growth capital. This seems to be exactly what Entelo, a six-year-old player in the space, is doing. The company is announcing a $20 million Series C round of financing today led by U.S. Read More

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Workfit raises $5.5 million seed round to be your AI meeting assistant

Businessman leaning on conference room table and talking to co-workers at business meeting Conversational AI is pushing deeper into enterprise with Workfit, a new startup promising to make conference call follow-ups and mid-meeting CRM updates as easy as playing a song or checking the weather on Google Home or Amazon Echo. Battery Ventures, Greycroft Partners, Salesforce Ventures and a number of angels joined together to finance a $5.5 million seed investment in the… Read More

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Why the $3.7 billion AppDynamics acquisition happened right before IPO

appdynamics Applications management company AppDynamics was just wrapping up the final touches on its initial public offering when it learned that Cisco was interested in discussing a potential deal. Preliminary talks were abandoned in November, but the discussion just picked up again last week. The deal was announced today and the IPO was slated to price tomorrow. Although many companies seek… Read More

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In-app marketing startup Insert raises $10M

Insert office Insert is the new startup from the team behind app development company Worklight (which was acquired by IBM for $70 million). Today it’s announcing that it has raised $10 million in Series A funding. Insert CEO Shahar Kaminitz said that where Worklight (where he was founder and former CEO) was focused on “the core development of the application,” he’s come to realize… Read More

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Narvar raises $22 million to help internet retailers deliver physical goods without frustrating customers

A Sephora customer tracks their order with a Narvar-powered app. Battery Ventures led a $22 million, Series B investment in Narvar Inc., a company helping internet retailers keep their customers happy post-purchase, meaning until their packages are delivered, and if need be, successfully returned for an exchange or refund. Battery was joined by Fung Capital, a logistics-focused fund, and Narvar’s earlier backers Accel Partners and Freestyle… Read More

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Analytics startup Amplitude raises $15M

amplitude Amplitude announced this morning that it has raised $15 million in Series B funding.
In the past, the web and mobile analytics company has pitched itself as a more affordable alternative to Mixpanel. More recently, CEO Spenser Skates said the bigger vision is to make user data available to everyone in a company, not just data scientists.
“It’s so easy to look up any piece of… Read More

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Video Analytics Startup Vidyard Raises $35M

video greenscreen Vidyard, a startup that says it can improve companies’ video marketing and sales, has raised $35 million in Series C funding. The round was led by Battery Ventures, with participation from Bessemer Venture Partners, Salesforce Ventures, OMERS Ventures, iNovia Capital and SoftTech VC. The Y Combinator-incubated startup has now raised more than $60 million total. Vidyard offers a number… Read More

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