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Oxwash bags $1.7M for a cleaner spin on laundry

Oxwash, a UK-based laundry startup that’s aiming to disrupt traditional but environmentally costly washing and dry-cleaning processes by using ozone to sterilize fabrics at lower temperatures, along with electric cargo bikes for hyper local pick ups and deliveries, has bagged a £1.4 million (~$1.7M) seed.

Backers in the funding round include TrueSight Ventures, Biz Stone (co-founder of Twitter), Paul Forster (founder of Indeed.com), Founders Factory and other unnamed angel investors.

Prior to this, Oxwash was working with a £300k pre-seed round — which it used to fund building its first washing hubs (which it calls “Lagoons”) and to test its reengineered washing process.

The startup’s pitch is that its applying “space age” technology to clean dirty laundry, burnished by the claim that its co-founder and CEO, Kyle Grant, is a former NASA engineer — having spent two years as a systems engineer where he researched the use and effect of microorganisms for extended space travel.

That said, it’s packing its reengineered cleaning system into standard (but “massively” modified) industrial washing machines. Just add coronavirus-safe ‘space suits’ (er, PPE)….

“Washing still has crazy carbon emissions, pollution and collection/delivery services cause large amounts of congestion. We saw a way to re-engineer the laundry process from the ground up and to be the first truly sustainable, space-age laundry company in the world,” says Grant, discussing the opportunity he and his co-founder spied to rethink laundry.

“We’re developing processes to have zero net carbon emissions for the whole laundry process — from collection to washing and back to delivery.”

The team is developing “chemistry that works at 20˚C better than at 40˚C or higher, integrating ozone disinfection to remove microorganisms by oxidation rather than using heat and developing water recycling and filtration systems to reduce water consumption and remove microfibre pollution at the same time”, per Grant.

It’s also structuring business operations to locate washing hubs in city centres, where its customers are based, so it can make use of electric bikes for moving the laundry around — allowing for a next day service with 30 minute collection and delivery windows.

“Traditional washing processes use huge amounts of water, energy to heat said water, harsh chemicals and normal petrol/diesel vans for the collections and deliveries. These process warehouses are usually located outside of cities and there are large lags in when items are returned to the customers (up to two weeks),” he further claims.

While ozone itself is a pollutant that degrades air quality, and can even be dangerous if released, Grant says the ozone used in its cleaning machines — which is produced from oxygen in the atmosphere — degrades back to oxygen “within minutes and is therefore inert and safe”.

“After extensive analysis ozone is far safer to use in commercial laundry processes than heat and harsh chemicals such as peroxides (bleach),” he suggests.

On safety, he also says their washing machines are modified to be sealed whilst “washing and disinfecting”, and can only be opened after the ozone has degraded. “Our lagoons are also fitted with ozone sensors that will cut off our generators if the ozone concentration in the air ever goes over the safe limit,” he adds. “Thankfully this has never occurred. The risks to our staff are far lower than when working with boiling water tanks, harsh chemicals and manual handling, the usual work flow in commercial laundries.”

Oxwash launched in the UK in early 2018 and now has more than 4,000 individual customers, per Grant, along with “several hundred” business customers — including the Marriott Hotel Chain, NHS GP practices, London Marathon and Universities of Oxford and Cambridge.

It’s executed a slight pivot of focus over the past two months — spying an opportunity to target risks related to the coronavirus. “We’ve developed a service in the last 2 months that is available to provide coronavirus disinfection,” he says in a statement. “We are working closely with [the UK’s National Health Service] NHS and vulnerable groups to provide support when needed.”

“We have adopted laboratory-grade PPE [personal protective equipment] processes, heavily inspired and adapted from my time working at NASA but also from guidelines from the NHS and HSE England,” Grant adds. “For example, we now perform contactless collections and deliveries whereby the customers pre-bag their items in supplied dissolvable bags. Our rider then has gloves, goggles and a respirator to perform the transfer back to the lagoon where a member of our team in full hazmat gear will load and unload the machines where disinfection is performed.”

Before the COVID-19 pandemic, he says the startup was getting traction from customers wanting to remove allergens that caused them allergic reactions.

“We were confident of moving into the healthcare market in the years to come but usually the tender process for such contracts is not conducive to a startup,” says Grant. “However since the advent of COVID-19 and our ongoing healthcare certification, we have seen a huge increase in the value of proper hygiene to both the individuals and businesses we serve. The Marriott Hotel chain and Airbnb have both expressed serious intent to work on a non-healthcare hygiene rating much like that of the Food Standards Authority. We are working with CINET (the international textile committee) to bring this to market with our technology and processes.”

The seed funding will be used to expand to more cities within the UK and Europe — with London and other European hubs, such as Paris and Amsterdam, in its sights. Its initial two locations are Oxford and Cambridge.

It’s also going to spin up on the hiring front, planning to add a head of growth and head of tech, as well as new operational roles in London.

Ploughing more resource into software dev is another focus, with funding going to expand the tech stack and the software systems which run its logistics and integrate with its digitised washing process. More work on its app is also planned. 

Asked what makes Oxwash a scalable business, Grant points to the development of this proprietary software alongside the reengineered washing service. “This iteration of technology and service allows us to develop our washing technology rapidly and get real-time feedback on the end-product and service from our customers,” he says. “The scalable technology element is the proprietary washing process driven by our bespoke software stack and process algorithms.”

On the labor side, Grant says Oxwash is “working towards a B Corp accreditation”.

“[We] have long held that our team should be properly reimbursed for their work but also as ambassadors for our brand out on our bikes. To that end all of our riders (couriers) are fully employed and like the rest of the team they are paid in excess of the national living wage,” he adds.

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Twitter co-founder Biz Stone backs tutoring platform Scoodle

Scoodle, a U.K.-based startup that, in its own words, wants to help tutors become influencers, is disclosing $760,000 in pre-seed funding.

Backing the round is Twitter co-founder Biz Stone, alongside Tiny VC, IFG Ventures and a number of unnamed angels. Scoodle is also the first ed tech company to join the University of Oxford’s accelerator, Oxford Foundry.

Launched in late 2018, Scoodle might be thought of as Quora-meets-tutoring. The platforms lets students post questions, which tutors are then invited to answer as a way of boosting their reputation and influence, from which they can generate more tutoring work.

Tutors also can create a comprehensive profile and share learning resources as a further way of demonstrating their expertise. And, crucially, take tutor bookings.

Co-founder and CEO Ismail Jeilani, who most recently worked at Google, says the idea was born from his own experience tutoring so that he could save up for university and avoid taking out a student loan.

“It’s difficult to find good tutors, because parents don’t know what to look for,” he tells me. “We solve this with a content-driven approach. Our tutors share content like learning resources on their profiles, which parents get to view before booking a lesson. Through this approach, tutors begin to develop their own brands, like ‘an educator’s LinkedIn.’ ”

Scoodle says it hosts thousands of tutors from the U.K.’s best educational institutions, including the University of Oxford, the University of Cambridge, Imperial College London and others.

Perhaps most noteworthy, Scoodle is operating like a content-led marketplace for tutor bookings, but doesn’t currently charge a booking fee.

Having grown to 100,000 users across mobile and web, the startup instead has introduced a subscription model: tutors pay £10 per month for boosted listings, and the company claims this secures tutors up to 30 times more enquiries.

Similarly, there is also a subscription option for students whereby anybody can book, message and access tutor content for free, but a higher tier Scoodle Pro membership lets you ask questions directly to tutors for a more on-demand service.

“It’s very common that a student discovers Scoodle on the back of a Google search,” adds Jeilani. “When they view an answer, they also see other answers from that tutor, along with how many students they’ve helped. This helps create trust.”

In the U.K., the tutoring space includes companies like Tutorful, Tutorhunt and myTutor, but remains fragmented. Jeilani argues that Scoodle’s key differentiator is its focus on tutor branding driven by content.

“Unique content gives us a different user acquisition channel along with long-term defensibility,” he says. “This tutor-focused approach also means we’re the first to have a 0% commission model. This keeps tutors on our platform longer than anywhere else.”

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Reliance Industries acquires a majority stake in SaaS startup NowFloats for $20M

Reliance Industries, one of India’s largest industrial houses, has acquired a majority stake in NowFloats, an Indian startup that helps businesses and individuals build online presence without any web developing skills.

In a regulatory filing on Thursday, Reliance Strategic Business Ventures Limited said (PDF) it has acquired an 85% stake in NowFloats for 1.4 billion Indian rupees ($20 million).

Seven-and-a-half-year old, Hyderabad-headquartered NowFloats operates an eponymous platform that allows individuals and businesses to easily build an online presence. Using NowFloats’ services, a mom and pop store, for instance, can build a website, publish their catalog, as well as engage with their customers on WhatsApp.

The startup, which has raised about 12 million in equity financing prior to today’s announcement, claims to have helped over 300,000 participating retail partners. NowFloats counts Blume Ventures, Omidyar Network, Iron Pillar, IIFL Wealth Management, and Hyderabad Angels among its investors.

Last year, NowFloats acquired LookUp, an India-based chat service that connects consumers to local business — and is backed by Vinod Khosla’s personal fund Khosla Impact, Twitter co-founder Biz Stone, Narayana Murthy’s Catamaran Ventures and Global Founders Capital.

Reliance Strategic Business Ventures Limited, a wholly-owned subsidiary of Reliance Industries, said that it would invest up to 750 million Indian rupees ($10.6 million) of additional capital into the startup, and raise its stake to about 89.66%, if NowFloats achieves certain unspecified goals by the end of next year.

In a statement, Reliance Industries said the investment will “further enable the group’s digital and new commerce initiatives.” NowFloats is the latest acquisition Reliance has made in the country this year. In August, the conglomerate said it was buying a majority stake in Google-backed Fynd for $42.3 million. In April, it bought a majority stake in Haptik in a deal worth $100 million.

There are about 60 million small and medium-sized businesses in India. Like hundreds of millions of Indians, many in small towns and cities, who have come online in recent years thanks to world’s cheapest mobile data plans and inexpensive Android smartphones, businesses are increasingly building online presence as well.

But vast majority of them are still offline, a fact that has created immense opportunities for startups — and VCs looking into this space — and major technology giants. New Delhi-based BharatPe, which helps merchants accept online payments and provides them with working capital, raised $50 million in August. Khatabook and OkCredit, two digital bookkeeping apps for merchants, have also raised significant amount of money this year.

In recent years, Google has also looked into the space. It has launched tools — and offered guidance — to help neighborhood stores establish some presence on the web. In September, the company announced that its Google Pay service, which is used by more than 67 million users in India, will now enable businesses to accept digital payments and reach their customers online.

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Millennials don’t want to get drunk. What do they want? Apéritifs.

Gen Z doesn’t want to get drunk. Millennials are tired of the obligatory after-work drinks.

Haus, a new startup selling apéritifs online, has a solution for them. The company’s beverages have a lower alcohol content than standard hard liquors on the market, which means you can drink one, even a few, without getting wasted. Made from distilled grapes, fresh herbs and botanicals, its natural ingredients and A-plus branding are sure to appeal to the younger demographic.

Launching today with pre-seed backing from venture capital funds Combine, Haystack and Partners Resolute, customers can begin ordering Haus’ citrus & flower-flavored debut apéritif (15% ABV), priced at $70 apiece. The goal, co-founder Helena Price Hambrecht explains, is to be the first fully direct-to-consumer player in an industry dominated by digitally-novice incumbent alcohol brands and distributors.

Haus enters the market at an opportune time. VCs — more than ever — are funneling cash to innovative beverage projects. This year, Bev, a canned wine business, raised $7 million in seed funding from Founders Fund. Liquid Death, which sells canned water for the punk rock crowd, attracted nearly $2 million in funding from angel investors like Away co-founder Jen Rubio and Twitter co-founder Biz Stone. And More Labs, the company readying the launch of Liquid Focus, is backed with $8 million in VC funding, among others.

Haus is run by husband-and-wife duo Helena Price Hambrecht and Woody Hambrecht. The former has established herself in Silicon Valley, developing the brands of consumer-facing companies including the likes of Airbnb, Dropbox, Facebook, Fitbit and Instagram. Woody Hambrecht, for his part, has been a bona fide “booze guy” since a young age, making wine and managing 67 acres of wine grapes at the pair’s Sonoma County, Calif. ranch, where Haus is also headquartered.

Haus co-founders, husband-and-wife duo Helena Price Hambrecht (right) and Woody Hambrecht.

“We joke that it must have taken a Silicon Valley type to marry a wine & spirits guy because no one has done this before; it’s crazy,” Price Hambrecht tells TechCrunch. “I can make something that gets a shit load of users and press in my sleep and I married this wine & spirits guy who understands the compliance, fulfillment, legal and finance elements. The amount we can do together is insane.”

By “this,” she means launch a direct-to-consumer apéritif brand. It’s generally illegal to sell spirits online D2C aside from a small subset of liquors with lesser alcohol contents. Knowing this loophole, many restaurants across the U.S. have begun making cocktails using only this subset of liquors (thus avoiding the steep fees required to obtain a liquor license) but Price Hambrecht says no one has thought to create an online store for apéritifs for fear of going up against the old guard of the alcoholic beverage market.

Because Haus handles every part of the process, including a patent-pending production model, the old guard isn’t an issue, nor is scaling. Currently, Haus is making and bottling its beverages in a 3,000 square foot warehouse just North of the couple’s farm, with plans to purchase another 2,800 square foot warehouse as orders increase. Unlike wine or whiskey, which must age years before going to market, it only takes hours to make apéritifs, simplifying one of the more complex features of the wine & spirits business.

Later this year, Haus plans to raise additional seed capital to launch a subscription product in 2020, begin constructing brick-and-mortar apéritif shops for the millennial and Gen Z cohort and release a second and third product line. Ultimately, Haus wants not only to disrupt the liquor business but provide alternative beverages to young people looking for better options.

“I was going through my own dilemma of drinking,” Price Hambrecht said. “If you’re a person that is career-focused, you’re possibly drinking 4-plus nights per week. I love how it brings people together; it’s a foundation of society, but you’ve got all these downsides. I never want to be drunk, I never want to be hungover.”

“It’s a cultural problem that we are solving.”

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Startups Weekly: VCs are drunk on beverage startups

Hello and welcome back to Startups Weekly, a newsletter published every Saturday that dives into the week’s most noteworthy venture deals, fundraises, M&A transactions and trends. Let’s take a quick moment to catch up. Last week, I wrote about an alternative to venture capital called revenue-based financing and before that, I jotted down some notes on one of VCs’ favorite spaces: cannabis tech. Remember, you can send me tips, suggestions and feedback to kate.clark@techcrunch.com or on Twitter @KateClarkTweets.

This week, I want to share some thoughts — questions, rather — on beverages. Just as my inbox has been full of cannabis-related pitches, it’s also been packed with descriptions of new…drinks. Perhaps the most noted so far is Liquid Death, canned water for the punk rock crowd, because why not? Liquid Death has attracted nearly $2 million in funding from angel investors like Away co-founder Jen Rubio and Twitter co-founder Biz Stone. Before I tell you about a few other up-and-coming beverage makers, I must beg the question: Does the beverage industry need disrupting?

Founders say yes. Why? For one, because millennials, according to various studies, are consuming less alcohol than previous generations and are therefore seeking non-alcoholic beverage alternatives. Enter Seedlip, a non-alcoholic spirits company, for example. Or Haus, launching this summer, an all-natural apéritif distilled from grapes that has a lower alcohol content than most hard liquors. Haus, like any good consumer startup in 2019, is shipped directly to your door.

Beverages are being disrupted, there’s no stopping it. pic.twitter.com/DMEg88t4iO

— Kate Clark (@KateClarkTweets) May 21, 2019

Bev, a canned wine business that recently raised $7 million in seed funding from Founders Fund, thinks marketing in the alcohol industry is the problem. Founder Alix Peabody designed a line of female-focused canned rosé. If you’re wondering why alcohol needs to be gendered in such a way, you’re not alone. Peabody explained most alcohol brands cater to men, and that’s a problem.

“The joke I like to make is there’s a go-to type of alcohol for every type of bro and we just don’t have that for women,” Peabody told TechCrunch earlier this year.

Finally, the wellness movement is taking over, driving VCs toward some odd upstarts. From wellness chat and journaling apps to therapy substitutes to fitness companies, stick wellness in a pitch and investors will take a second look. More Labs, for example, is backed with $8 million in VC funding. The company is readying the launch of Liquid Focus, a biohacking-beverage that claims to “solve modern-day stressors without the negative side effects.” Finally, Elements, “an elevated functional wellness beverage formulated with clinical levels of adaptogens to give your body exactly what it needs in four categories (focus, vitality, calm, and rest) for specific cognitive functions” (damn, what copy), recently launched. It doesn’t appear to be funded yet, but let’s just give it a few months.

There’s more where that came from, but I’m done for now. On to other news.

IPO Corner

I almost skipped IPO corner this week because no big-name companies dropped or amended their S-1s or completed a highly anticipated IPO, as has been the case basically every week of 2019. But I decided I better give a quick update on Luckin Coffee’s tough second week on the stock market. Luckin Coffee, if you aren’t familiar, is Starbucks’ Chinese rival. The company raised more than $550 million after pricing at $17 per share a little over a week ago. Immediately the stock skyrocketed 20 percent to a roughly $5 billion market cap; then came concerns of the company’s lofty valuation, major cash burn and uncertain path to profitability.  Luckin has dropped around 25 percent since closing its debut trading day. It closed Friday down 3 percent.

More changes at Y Combinator

Y Combinator, the popular accelerator program and investment firm announced this week that it has promoted longtime partner Geoff Ralston to president. This comes two months after former president Sam Altman stepped down to focus his efforts full-time on OpenAI. The promotion of Ralston is an unsurprising choice for YC, an organization that employs roughly 60 people, many of whom have been affiliated with it in one way or another for years.

M&A

Automattic acquires subscription payment company Prospress

Shopify quietly acquires Handshake, an e-commerce platform for B2B wholesale purchasing 

Streem buys Selerio in an effort to boost its AR conferencing tech

As Amex scoops up Resy, a look at its acquisition history 

Fundraising

The Los Angeles ecosystem is $76 million stronger this week as Fika Ventures, a seed-stage venture capital firm, announced its sophomore investment fund. Fika invests roughly half of its capital exclusively in startups headquartered in LA, with a particular fondness for B2B, enterprise and fintech companies. The firm was launched in 2017 by general partners Eva Ho and TX Zhuo, formerly of Susa Ventures and Karlin Ventures, respectively. The pair raised $41 million for the debut effort, opting to nearly double that number the second time around as a means to participate in more follow-on fundings.

Startup capital

DoorDash raises $600M at a $12.7B valuation
TransferWise completes $292M secondary round at a $3.5B valuation
Auth0 raises $103M, pushes its valuation over $1B
Canva gets $70M at a $2.5B valuation
Payment card startup Marqeta confirms $260M round at close to $2B valuation
Modsy scores $37M to virtually design your home
Sun Basket whips up $30M Series E
Zero raises $20M from NEA for a credit card that works like debit
Nigeria’s Gokada raises $5.3M for its motorcycle ride-hail biz

Extra Crunch

Our premium subscription service had another great week of interesting deep dives. This week, TechCrunch’s Lucas Matney went deep on Getaround’s acquisition of Drivy for his latest installment of The Exit, a new series at TechCrunch where we chat with VCs who were in the right place at the right time and made the right call on an investment that paid off. Here are some of the other Extra Crunch pieces that stood out this week:

Equity

If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and I discuss how startups are avoiding IPOs and VC’s insatiable interest in food delivery startups.

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Biz Stone throws his weight behind the Polaroid Swing motion photo app

Polaroid The last couple of decades haven’t been particularly kind to the Polaroid brand. The once mighty king of instant photography (which had a heck of a mid-to-late 70s) declared bankruptcy in 2001 and again in 2008. These days, the brand name is licensed out and mostly shows up third-party products of varying degrees of quality. Polaroid Swing — available now as a download for iOS,… Read More

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Biz Stone’s Jelly Launches Super So You Can Express Your Best, Craziest, Sexiest Opinions

Screen Shot 2014-11-17 at 10.55.07 AM Twitter co-founder Biz Stone’s Q&A app Jelly didn’t quite blow up, so today he’s launching a much weirder app called Super where you can share colorful statements, opinions and recommendations. It’s a lot like the private beta version of Super I stumbled into and profiled in September, but now everyone on iOS and Android can start yelling in all caps about their… Read More

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