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Lt. Gen. John Thompson explains how startups can interact with the Space Force

Space Force’s Lt. Gen. John Thompson spoke at TC Sessions: Space earlier this week. Throughout the wide-ranging interview, General Thompson explained the various ways and means for how private companies like startups should interact with Space Force.

Gen. Thompson knows what he’s talking about. As the commander of the Space and Missiles Systems Center, he oversees research, design, development and acquisition of satellites and their associated command and control systems for the U.S. Space Force. His role puts him in direct contact with some of the most ambitious and innovative startups.

He pointed to three things when asked what’s a good first step for interfacing with the Space Force:

1) Join the Space Enterprise Consortium (SpEC). He describes it as “a purpose-built consortium that values partnerships between government, traditional industry partners, and non-traditional partners like academia, small businesses and startups” that’s grown to more than 440 members in three years.

At the end of the interview, Gen. Thompson notes that he’s working on expanding the deployment of SpEC’s funds to reach more “game-changing technologies that those non-traditional small businesses and startups are bringing to SpEC.

2) Watch for Space Pitch Days. The next event is in the spring of 2021. These pitch days give startups an inside track to government contracts. Apparently, after the first event held with the Air Force, which Gen. Thompson hosted, contracts were offered within three minutes of the pitches.

3) Look into SpaceWERX; a program launched this December to help Space Force work with private sector companies to field new technology for military applications. Like its Air Force counterpart, this “werx” center is a key component for Space Force’s acquisition strategy.

“Dr. Roper just announced it last week at the Space and Missile System Center,” Gen. Thompson said, “[This] is an integral part of the acquisition enterprise of the United States. Space Force is a full partner in the SpaceWERX endeavor. And using the WERX model, we hope to inject more small businesses and startups into our innovation ecosystem.”


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Hibob raises $70M for its new take on human resources

Productivity software has been getting a major re-examination this year, and human resources platforms — used for hiring, firing, paying and managing employees — have been no exception. Today, one of the startups that’s built what it believes is the next generation of how HR should and will work is announcing a big fundraise, underscoring its own growth and the focus on the category.

Hibob, the startup behind the HR platform that goes by the name of “bob” (the company name is pronounced, “Hi, Bob!”), has picked up $70 million in funding at a valuation that reliable sources close to the company tell us is around $500 million.

“Our mission is to modernize HR technology,” said Ronni Zehavi, Hibob’s CEO, who co-founded the company with Israel David. “We are a people management platform for how people work today. Whether that’s remotely or physically collaborative, our customers face challenges with work. We believe that the HR platforms of the future will not be clunky systems, annoying, giant platforms. We believe it should be different. We are a system of engagement rather than record.”

The Series B is being led by SEEK and Israel Growth Partners, with participation also from Bessemer Venture Partners, Battery Ventures, Eight Roads Ventures, Arbor Ventures, Presidio Ventures, Entree Capital, Cerca Partners and Perpetual Partners, the same group that also backed Hibob in its last round (a Series A extension) in 2019. It has raised $124 million to date.

The company has its roots in Israel but these days describes its headquarters as London and New York, and the funding comes on the back of strong growth in multiple markets. In an interview, Zehavi said that Hibob specialises in the mid-market customers and says that it has more than 1,000 of them currently on its books across the U.S., Europe and Asia, including Monzo, Revolut, Happy Socks, ironSource, Receipt Bank, Fiverr, Gong and VaynerMedia. In the last year Hibob has had “triple-digit” year-on-year growth (it didn’t specify what those digits are).

Human resources has never been at the more glamorous end of how a company works, and it can sometimes even be looked on with some disdain. However, HR has found itself in a new spotlight in 2020, the year when every company — whether one based around people sitting at desks or in more interactive and active environments — had to change how it worked.

That might have involved sending everyone home to sign in from offices possibly made out of corners of bedrooms or kitchens, or that might have involved a vastly different set of practices in terms of when and where workers showed up and how they interacted with people once they did. But regardless of the implementations, they all involved a team of people who needed to be linked together, still feeling connected and managed; and sometimes hired, furloughed, or let go.

That focus has started to reveal the strains of how some legacy systems worked, with older systems built to consider little more than creating an employee identity number that could then be tracked for payroll and other purposes.

Hibob — Zehavi said they chose the name after the person who owned the bob.com domain wanted too much to sell it, but they liked “bob” for the actual product — takes an approach from the ground up that is in line with how many people work today, balancing different software and apps depending on what they are doing, and linking them up by way of integrations: its own includes Slack, Microsoft Teams and Mercer, and other packages that are popular with HR departments. 

While it covers all of the necessary HR bases like payroll and further compensation, onboarding, managing time off and benefits, it further brings in a variety of other features that help build out bigger profiles of users, such as performance and culture, with the ability for peers, managers and workers themselves to provide feedback to enhance their own engagement with the company, and for the company to have a better idea of how they are fitting into the organization, and what might need more attention in the future.

That then links into a bigger organizational chart and conceptual charts that highlight strong performers, those who are possible flight risks, those who are leaders and so on. While there have been a number of others in the HR world that have built standalone apps that cover some of these features (for example, 15five was early to spot the value of a platform that made it much easier to set goals and provide feedback), what’s notable here is how they are all folded into one system together.

The end effect, as you can see here, looks less like word salad and more interactive, graphic interfaces that are presumably a lot more enjoyable and at least easier to use for HR people themselves.

The importance for investors has been that the product and the startup has identified the opportunity, but has delivered not just more engagement, but a strong piece of software that still provides the essentials.

“This is certainly not a Workday,” said Adam Fisher, a partner at Bessemer, in an interview. “Our overall thesis has been that HR is only growing in importance. And while engagement is super important, that opportunity is not enough to create the market.”

The end result is a platform that has a significant shot at building in even more over time. For example, another large area that has been seeing traction in the world of enterprise and B2B software is employee training. Specifically, enterprise learning systems are creating another way to help keep people not only up to speed on important aspects of how they work, but also engaged at a time when connections are under strain.

“Training, a SuccessFactors -style offering, is definitely in our road map,” said Zehavi, who noted they are adding new features all the time. The latest has been compensation, sometimes known as merit increase cycles. “That is a very complex issue and requires deeper integrations finance and the CFO’s office. We streamlined it and made it easy to use. We launched two months ago and it’s on fire. After learning and development there are other modules also down the road.”

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Microsoft brings new process mining features to Power Automate

Power Automate is Microsoft’s platform for streamlining repetitive workflows — you may remember it under its original name: Microsoft Flow. The market for these robotic process automation (RPA) tools is hot right now, so it’s no surprise that Microsoft, too, is doubling down on its platform. Only a few months ago, the team launched Power Automate Desktop, based on its acquisition of Softomotive, which helps users automate workflows in legacy desktop-based applications, for example. After a short time in preview, Power Automate Desktop is now generally available.

The real news today, though, is that the team is also launching a new tool, the Process Advisor, which is now in preview as part of the Power Automate platform. This new process mining tool provides users with a new collaborative environment where developers and business users can work together to create new automations.

The idea here is that business users are the ones who know exactly how a certain process works. With Process Advisor, they can now submit recordings of how they process a refund, for example, and then submit that to the developers, who are typically not experts in how these processes usually work.

What’s maybe just as important is that a system like this can identify bottlenecks in existing processes where automation can help speed up existing workflows.

Image Credits: Microsoft

“This goes back to one of the things that we always talk about for Power Platform, which, it’s a corny thing, but it’s that development is a team sport,” Charles Lamanna, Microsoft’s corporate VP for its Low Code Application Platform, told me. “That’s one of our big focuses: how to bring people to collaborate and work together who normally don’t. This is great because it actually brings together the business users who live the process each and every day with a specialist who can build the robot and do the automation.”

The way this works in the backend is that Power Automate’s tools capture exactly what the users do and click on. All this information is then uploaded to the cloud and — with just five or six recordings — Power Automate’s systems can map how the process works. For more complex workflows, or those that have a lot of branches for different edge cases, you likely want more recordings to build out these processes, though.

Image Credits: Microsoft

As Lamanna noted, building out these workflows and process maps can also help businesses better understand the ROI of these automations. “This kind of map is great to go build an automation on top of it, but it’s also great because it helps you capture the ROI of each automation you do because you’ll know for each step how long it took you,” Lamanna said. “We think that this concept of Process Advisor is probably going to be one of the most important engines of adoption for all these low-code/no-code technologies that are coming out. Basically, it can help guide you to where it’s worth spending the energy, where it’s worth training people, where it’s worth building an app, or using AI, or building a robot with our RPA like Power Automate.”

Lamanna likened this to the advent of digital advertising, which for the first time helped marketers quantify the ROI of advertising.

The new process mining capabilities in Power Automate are now available in preview.

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From surviving to thriving as a hardware startup

When a friend forwarded this tweet from Paul Graham, it hit close to home:

Startups are subject to something like infant mortality: before they’re established, one thing going wrong can kill the company. Hardware companies seem to be subject to infant mortality their whole lives.
I think the reason is that the evolution of the product is so discontinuous. The company has to keep shipping, and customers to keep buying, new products. Which in practice is like relaunching the company each time.
I don’t know if there is an answer to this, but if there were a way for hardware companies to evolve more the way software companies do, they’d be a lot more resilient.

Looking back on our startup journey at Minut, I remember several moments when we could have died. However, surviving several near misses we learned to tackle these challenges and have become more resilient over time. While there will never be one fully exhaustive answer, here are some of the lessons we learned over the years:

Subscription revenue is the only revenue that counts

While you can sell hardware with a margin and make important early revenue, it’s not a sustainable business model for a company that requires both software and hardware. You can’t cover an indefinite commitment with a finite amount of money.

Many hardware companies don’t consider subscriptions early enough. While it can be hard to command a subscription from the start (if you can, you might have waited too long to launch), it needs to be in the plan from the beginning. Look for markets where paying subscriptions is the norm rather than markets that operate on a one-time sale model.

Set high margins and earn them over time

It’s tempting to set low prices for hardware to attract customers, but in the beginning you should do the opposite. Margins allow for mistakes to be rectified. A missed deadline might mean you have to opt for freight by air rather than boat. You might have to scrap components or buy them expensively in a supply crunch. Surprises are seldom positive, and you don’t want to use your venture capital to pay for them.

Healthy margins can also be used to cover marketing costs while you learn what kind of messaging works and what channels you can sell through. If that wasn’t enough reason, starting with relatively high prices will help you avoid another common mistake, selling too much at launch.

This might seem counterintuitive — why wouldn’t you want great success out of the gate? The reason is that you will inevitably make mistakes with your early launches, and the bigger the launch, the bigger the blow. There are plenty of companies who achieved amazing crowdfunding success and then failed to deliver even the first units. Startups tend to chase growth at all costs, but for hardware startups in the first few years there is such a thing as too much of a good thing.

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Fylamynt raises $6.5M for its cloud workflow automation platform

Fylamynt, a new service that helps businesses automate their cloud workflows, today announced both the official launch of its platform as well as a $6.5 million seed round. The funding round was led by Google’s AI-focused Gradient Ventures fund. Mango Capital and Point72 Ventures also participated.

At first glance, the idea behind Fylamynt may sound familiar. Workflow automation has become a pretty competitive space, after all, and the service helps developers connect their various cloud tools to create repeatable workflows. We’re not talking about your standard IFTTT- or Zapier -like integrations between SaaS products, though. The focus of Fylamynt is squarely on building infrastructure workflows. While that may sound familiar, too, with tools like Ansible and Terraform automating a lot of that already, Fylamynt sits on top of those and integrates with them.

Image Credits: Fylamynt

“Some time ago, we used to do Bash and scripting — and then [ … ] came Chef and Puppet in 2006, 2007. SaltStack, as well. Then Terraform and Ansible,” Fylamynt co-founder and CEO Pradeep Padala told me. “They have all done an extremely good job of making it easier to simplify infrastructure operations so you don’t have to write low-level code. You can write a slightly higher-level language. We are not replacing that. What we are doing is connecting that code.”

So if you have a Terraform template, an Ansible playbook and maybe a Python script, you can now use Fylamynt to connect those. In the end, Fylamynt becomes the orchestration engine to run all of your infrastructure code — and then allows you to connect all of that to the likes of DataDog, Splunk, PagerDuty Slack and ServiceNow.

Image Credits: Fylamynt

The service currently connects to Terraform, Ansible, Datadog, Jira, Slack, Instance, CloudWatch, CloudFormation and your Kubernetes clusters. The company notes that some of the standard use cases for its service are automated remediation, governance and compliance, as well as cost and performance management.

The company is already working with a number of design partners, including Snowflake.

Fylamynt CEO Padala has quite a bit of experience in the infrastructure space. He co-founded ContainerX, an early container-management platform, which later sold to Cisco. Before starting ContainerX, he was at VMWare and DOCOMO Labs. His co-founders, VP of Engineering Xiaoyun Zhu and CTO David Lee, also have deep expertise in building out cloud infrastructure and operating it.

“If you look at any company — any company building a product — let’s say a SaaS product, and they want to run their operations, infrastructure operations very efficiently,” Padala said. “But there are always challenges. You need a lot of people, it takes time. So what is the bottleneck? If you ask that question and dig deeper, you’ll find that there is one bottleneck for automation: that’s code. Someone has to write code to automate. Everything revolves around that.”

Fylamynt aims to take the effort out of that by allowing developers to either write Python and JSON to automate their workflows (think “infrastructure as code” but for workflows) or to use Fylamynt’s visual no-code drag-and-drop tool. As Padala noted, this gives developers a lot of flexibility in how they want to use the service. If you never want to see the Fylamynt UI, you can go about your merry coding ways, but chances are the UI will allow you to get everything done as well.

One area the team is currently focusing on — and will use the new funding for — is building out its analytics capabilities that can help developers debug their workflows. The service already provides log and audit trails, but the plan is to expand its AI capabilities to also recommend the right workflows based on the alerts you are getting.

“The eventual goal is to help people automate any service and connect any code. That’s the holy grail. And AI is an enabler in that,” Padala said.

Gradient Ventures partner Muzzammil “MZ” Zaveri echoed this. “Fylamynt is at the intersection of applied AI and workflow automation,” he said. “We’re excited to support the Fylamynt team in this uniquely positioned product with a deep bench of integrations and a nonprescriptive builder approach. The vision of automating every part of a cloud workflow is just the beginning.”

The team, which now includes about 20 employees, plans to use the new round of funding, which closed in September, to focus on its R&D, build out its product and expand its go-to-market team. On the product side, that specifically means building more connectors.

The company offers both a free plan as well as enterprise pricing and its platform is now generally available.

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Salesforce applies AI to workflow with Einstein Automate

While Salesforce made a big splash yesterday with the announcement that it’s buying Slack for $27.7 billion, it’s not the only thing going on for the CRM giant this week. In fact, Dreamforce, the company’s customer extravaganza, is also on the docket. While it is virtual this year, there are still product announcements aplenty, and today the company announced Einstein Automate, a new AI-fueled set of workflow solutions.

Sarah Franklin, EVP & GM of Platform, Trailhead and AppExchange at Salesforce, says that she is seeing companies facing a digital imperative to automate processes as things move ever more quickly online, being driven there even faster by the pandemic. “With Einstein Automate, everyone can change the speed of work and be more productive through intelligent workflow automation,” she said in a statement.

Brent Leary, principal analyst at CRM Essentials, says that combined, these tools are designed to help customers get to work more quickly. “It’s not only about identifying the insight, it’s about making it easier to leverage it at the right time. And this should make it easier for users to do it without spending more time and effort,” Leary told TechCrunch.

Einstein is the commercial name given to Salesforce’s artificial intelligence platform that touches every aspect of the company’s product line, bringing automation to many tasks and making it easier to find the most valuable information on customers, which is often buried in an avalanche of data.

Einstein Automate encompasses several products designed to improve workflows inside organizations. For starters, the company has created Flow Orchestrator, a tool that uses a low-code, drag and drop approach for building workflows, but it doesn’t stop there. It also relies on AI to provide help to suggest logical next steps to speed up workflow creation.

Salesforce is also bringing into the mix MuleSoft, the integration company it bought for $6.5 billion in 2018. Instead of processes like a mortgage approval workflow, the MuleSoft piece lets IT build complex integrations between applications across the enterprise and the Salesforce family of products more easily.

To make it easier to build these workflows, Salesforce is announcing the Einstein Automate collection page available in AppExchange, the company’s application marketplace. The collection includes more than 700 pre-built connectors so customers can grab and go as they build these workflows, and finally it’s updating the OmniStudio, their platform for generating customer experiences. As Salesforce describes it, “Included in OmniStudio is a suite of resources and no-code tools, including pre-built guided experiences, templates and more, allowing users to deploy digital-first experiences like licensing and permit applications quickly and with ease.”

Per usual with Salesforce Dreamforce announcements, the Flow Orchestrator being announced today won’t be available in beta until next summer. The MuleSoft component will be available in early 2021, but the OmniStudio updates and the Einstein connections collection are available today.

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The hidden cost of being a founder

If I were to pick one thing that unites the global tech scene in terms of culture I would point to the respect and reverence accorded to startup founders.

After all, creating your own company is an ambition many of us harbor. It can bring with it unparalleled freedom, a lasting legacy, prestige, wealth and the ability to do good. Across social and traditional media the feats of founders big and small are lauded for their genius on a daily basis. Many entrepreneurs go to great lengths to showcase their backbreaking hard work and eye-popping success. An outsider would be forgiven for believing that every founder is living the dream as a result of their talent and toil.

Of course, as with nearly every image projected online, the reality is quite different. There is a seldom talked about price of being a founder — the impact on one’s mental health.

A recent study by the National Institute of Mental Health found that 72% of entrepreneurs are directly or indirectly impacted by mental health issues. This compares to 48% of the general population. The damage can also affect loved ones — 23% of entrepreneurs report that they have family members with problems, which is 7% higher than the relations of nonentrepreneurs.

I am in no way a mental health expert. But what I do know from both my own experience and speaking to scores of business owners I work with is that being a founder is an inherently lonely job. Pressure is high and uncertainty pervades every decision. Fear of failure is ever present. Unaddressed, these issues can take a serious toll.

The unpalatable truth is that the situation appears to be getting worse. A similar study conducted in 2015 by Dr. Michael A. Freeman found the rate of mental health issues among founders to be lower — at 50%. While comparing different research pieces is inexact, we only need to look at how the global recession has damaged many companies and how working from home has contributed to feelings of isolation, to know that the environment for startups has got harder this year. Added to this mix is how social media continues to promote an unhealthy fetishization of hustle culture and founding myths.

A number of founders have told me that they have constant feelings of inadequacy and guilt when they compare themselves to the startup gurus who celebrate working 24/7, are constantly selling, raising money or making their millions. They feel they should be working harder or be doing better — just like all the people they read about.

So how do we address this? The first step is talking about it. This means having an environment where we can be honest that not everything is always fine. Speaking to a fellow founder, not about commercial concerns, but about personal worries can be revelatory. I’ve seen it happen in our community. It’s like an “Emperor’s New Clothes” moment.

The myth of the bulletproof, genius, hustling founder can disappear in a puff of smoke as people suddenly realize they are not alone. They find that the concerns, anxieties and uncertainties they feel are almost universal.

Experienced founders can provide invaluable support to people new to the startup scene. They can share their experiences, both failures and success, and reveal some of their coping mechanisms. I would strongly advise founders who are experiencing some of the worries I’ve outlined to actively seek out advice from both their peers and potential mentors — much in the way they may seek out commercial guidance.

Next, we need to address how we tackle the culture and myths around being a founder. Business owners need to know that many of the extraordinary “success stories” they see celebrated online are exactly that — extraordinary.

Similarly, those that promote the principle that working all hours is the only way to be successful are at best talking about what works for them, and are at worst, engaging in a performance to achieve attention. We need to think carefully about how we respond to these posts. There is a fine line between being supportive and enabling unhealthy or damaging behavior and philosophy.

After all, success in the startup scene is all relative. For some owning a small business that makes them a decent income with a good work-life balance is the goal. For others, it is simply being able to do what they love in the way that they want. Very few will get the exit that makes them a millionaire, and an infinitesimally small minority will build the next Facebook . I cannot stress enough how important it is for founders to keep their aims and ambitions in perspective and ignore the noise they hear online.

More broadly, the industry, including the media, does need to get wiser about how it views and represents founders. For example, a pervasive myth is that some of the biggest tech companies in the world started in garages with no money, then through the genius and sheer bloodymindedness of their founder they were grown into a massive corporation.

The reality is that the vast majority of these tech companies benefited from substantial seed capital from family or connections almost from day one. These founders were also quickly surrounded by highly talented people who did a lot of the heavy lifting and, whisper it, a truckload of good luck. In short, the idea of the superhuman founder perpetuated in the industry is, in nearly all cases, nonsense.

In a similar vein, there are also issues around how we frame success and failure.

Success, as I’ve mentioned earlier, is nearly always couched in the most basic numerical terms. The “unicorn” label is bandied about so often that many people fail to realize that it’s simply a valuation that a few investors have given a company. It does not reflect whether the business is actually successful in the traditional sense, i.e., making money. Generally, the startup scene celebrates and idolizes founders who make big exits or achieve “unicorn status” — less is spoken about the thousands of SMEs that employ people, develop and patent new tech, make a tidy profit and pay taxes.

With failure, there is an altogether different problem. The startup scene downplays failure as par for the course. It is, on the face of it, one of the industry’s great virtues. It enables people to try without fear of embarrassment. However, in practice, it can actually minimize real-world fears nearly all founders have. Failure cannot just be brushed off if you’ve devoted years of your life, spent a lot of money and have staff who rely on you. By simply thinking of failure as part of the process we cannot address and talk about this real source of concern in an open way. “Fail fast” only works for those who can afford it.

Individually, these issues may seem like nothing but white noise and the cure for suffering founders may simply be to get off social media. Unfortunately, it isn’t that simple. Social and traditional media is amplifying startup culture, not creating it. The same tropes are on display at every tech conference and meetup. To fit in, the founder is expected to be a fearless, genius visionary. Deviation from this norm, such as by displaying vulnerability around mental health, is by inference, failure.

Despite its shortcomings in relation to diversity, the startup scene is generally one of the most progressive, collaborative and open industries in the world. These virtues are ideally suited to tackling the reluctance to discuss mental health and creating the network of support that ensures people don’t suffer alone.

To make this happen, we need to dispense with the myths and hagiography around being a founder and be more honest about what the reality of running a business actually entails.

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Floww raises $6.7M for its data-driven marketplace matching founders with investors, based on merit

Floww — a data-driven marketplace designed to allow founders to pitch investors, with the whole investment relationship managed online — says it has raised $6.7 million (£5 million) to date in seed funding from angels and family offices. Investors include Ramon Mendes De Leon, Duncan Simpson-Craib, Angus Davidson, Stephane Delacote and Pip Baker (Google’s head of Fintech U.K.) and multiple family offices. The cash will be used to build out the platform designed to give startups access to more than 500 VCs, accelerators and angel networks.

The team consists of Martijn De Wever, founder and CEO of London-based VC Force Over Mass; Lee Fasciani, co-founder of Territory Projects (the firm behind film graphics and design including “Guardians of the Galaxy” and “BladeRunner 2049”); and CTO Alex Pilsworth, of various fintech startups.

Having made more than 160 investments himself, De Wever says he recognized the need for a platform connecting investors and startups based on merit, clean data and transparency, rather than a system built on “warm introductions,” which can have inherent cultural and even racial biases.

Floww’s idea is that it showcases startups based on merit only, allowing founders to raise capital by providing investors with data and transparency. Startups are given a suite of tools and materials to get started, from cap table templates to “How To” guides. Founders can then “drag and drop” their investor documents in any format. Floww’s team of accountants then cross-checks the data for errors and processes key performance metrics. A startup’s digital profile includes dynamic charts and tables, allowing prospective investors to see the company’s business potential.

Floww charges a monthly fee to VCs, accelerators, family offices and PE firms. Startups have free access to the platform, and a premium model to contact and send their deal to multiple VCs.

Floww’s pitch is that VCs can, in turn, manage deal-sourcing, CRM, as well as reporting to their investors and LPs. Quite a claim, given all VCs to date handle this kind of thing in-house. However, Floww claims to have processed 3,000 startups and says it is rolling out to more than 500 VCs.

In a statement, De Wever said: “In an age of virtual meetings and connections, the need for coffee meetings on Sand Hill Road or Mayfair is gone. What we need now are global connections, allowing VCs to engage in merit-based investing using data and metrics.” He says the era of the coronavirus pandemic means many deals will have to be sourced remotely now, so “the time for a platform like this is now.”

AngelList is perhaps its closest competitor from the startup perspective. And the VC application incorporates the kind of functionality seen in Affinity, Airtable, Efront and DocSend. But AngeList doesn’t provide data or metrics.

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US shopping app downloads on Black Friday reached a record 2.8M installs

Many U.S. consumers spent this year’s Black Friday sales event shopping from home on mobile devices. That led to first-time installs of mobile shopping apps in the U.S. to break a new record for single-day installs on Black Friday 2020, according to a report from Sensor Tower. The firm estimates that U.S. consumers downloaded approximately 2.8 million shopping apps on November 27th — a figure that’s up by nearly 8% over last year.

However, this number doesn’t necessarily represent faster growth than in 2019, which also saw about an 8% year-over-year increase in Black Friday shopping app installs, the report noted. This could be because mobile shopping and the related app installs are now taking place throughout the month of November, though, as retailers adjusted to the pandemic and other online shopping trends by hosting earlier sales or even month-long sales events.

Image Credits: Sensor Tower

The data seems to indicate this is true. Between November 1 and November 29, U.S. consumers downloaded approximately 59.2 million shopping apps from across the App Store and Google Play — an increase of roughly 15% from the 51.7 million they downloaded in Novenber 2019. That’s a much higher figure than the 2% year-over-year growth seen during this same period in 2019.

Another shift taking place in mobile shopping is the growing adoption of apps from brick-and-mortar retailers. During the first three quarters of 2020, apps from brick-and-mortar retailers grew installs 27%. This trend continued on Black Friday, when five out of the top 10 mobile shopping apps were those from brick-and-mortar retailers, led by Walmart.

Image Credits: Sensor Tower

Walmart saw the highest adoption this year, with around 131,000 Black Friday installs, followed by Amazon at 106,000, then Shopify’s Shop at 81,000. Combined, the top 10 apps saw 763,000 total new installs, or 27% of the first-time downloads in the Shopping category.

Because the firms are only looking at new app installs, they aren’t giving a full picture of the U.S. mobile shopping market, as many consumers already have these apps installed on their devices. And many more simply shop online via a desktop or laptop computer.

To give these figures some context, Shopify reported on Saturday it had seen record Black Friday sales of $2.4 billion, with 68% on mobile. And today, Amazon announced its small business sales alone topped $4.8 billion from Black Friday to Cyber Monday, a 60% year-over-year increase, but it didn’t break out the percentage that came from mobile.

Sensor Tower and rival app store analytics firm App Annie largely agreed on the top five shopping apps downloaded this Black Friday. They both saw Walmart again beating Amazon to become the most-downloaded U.S. shopping app on Black Friday — as it did in 2019. The two firms reported that Amazon remained No. 2 by downloads, followed by Shopify’s Shop app, then Target. However, Sensor Tower put Best Buy in fifth place, followed by Nike, while App Annie saw those positions swapped.

Image Credits: App Annie

The rest of Sensor Tower’s top 10 included SHEIN, Sam’s Club, Klarna, then Offer Up, while App Annie’s list was rounded out by SHEIN, Sam’s Club, Wish, then Offer Up.

The pandemic’s impact may not have been obvious given the growth in online shopping this year, but the recession it triggered has played a role in how U.S. consumers are paying for their purchases. “Buy Now, Pay Later” apps like Klarna were up this year, even breaking into the top 10 per Sensor Tower’s data. The firm also noted that many new shopping apps launched this year focused on discounts and deals, and retailers ran longer sales this year, as well.

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Novakid’s ESL app for children raises $4.25M Series A led by PortfoLion and LearnStart investors

With the pandemic playing havoc with children’s education, edtech startups have been on a roll. A new fundraising seems to come almost every week at this point.

Today it’s Novakid’s turn. This edtech startup is yet another “learning English as a second language for children” startup. But it at least has a chance among the plethora of solutions out there, having raised a $4.25 million Series A financing led by Hungary-based PortfoLion (part of OTP, a leading banking group in Eastern Europe), alongside a prominent edtech-focused U.S. fund, LearnStart. LearnStart is part of the LearnCapital VC which has previously backed VIPKID and Brilliant.org. TMT Investments and Xploration Capital also joined the round. Both seed investors — South Korea-based BonAngels as well as LETA Capital — took part in this financing round in January this year ($1.5 million).

Novakid’s teaching method is based around the ideas of language acquisition by Asher, Thornbury, Krashen and Chomsky, and it is specifically suited for children aged 4-12. It is incorporated in the U.S. with development and customer support around Europe.

Max Azarow, co-founder and CEO said: “Novakid is reinventing English learning for kids in countries where English is not a primary spoken language. There, English would usually be taught as an abstract subject, with focus on grammar and with little live practice offered. Novakid on the other hand implements a unique format that combines a highly-interactive digital curriculum with individual live tutor sessions where students and tutor only speak English for a 100% language immersion.”

Aurél Påsztor, partner at PortfoLion, commented: “Novakid attracted investor attention due to its excellent traction, which resulted in over 500% growth year-on-year both in terms of number of students and in terms of revenue. Other attractive points were strong customer retention, international business footprint and a solid monetization via paid subscriptions.”

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