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While you’d be hard pressed to find any startup not brimming with confidence over the disruptive idea they’re chasing, it’s not often you come across a young company as calmly convinced it’s engineering the future as Dasha AI.
The team is building a platform for designing human-like voice interactions to automate business processes. Put simply, it’s using AI to make machine voices a whole lot less robotic.
“What we definitely know is this will definitely happen,” says CEO and co-founder Vladislav Chernyshov. “Sooner or later the conversational AI/voice AI will replace people everywhere where the technology will allow. And it’s better for us to be the first mover than the last in this field.”
“In 2018 in the US alone there were 30 million people doing some kind of repetitive tasks over the phone. We can automate these jobs now or we are going to be able to automate it in two years,” he goes on. “If you multiple it with Europe and the massive call centers in India, Pakistan and the Philippines you will probably have something like close to 120M people worldwide… and they are all subject for disruption, potentially.”
The New York based startup has been operating in relative stealth up to now. But it’s breaking cover to talk to TechCrunch — announcing a $2M seed round, led by RTP Ventures and RTP Global: An early stage investor that’s backed the likes of Datadog and RingCentral. RTP’s venture arm, also based in NY, writes on its website that it prefers engineer-founded companies — that “solve big problems with technology”. “We like technology, not gimmicks,” the fund warns with added emphasis.
Dasha’s core tech right now includes what Chernyshov describes as “a human-level, voice-first conversation modelling engine”; a hybrid text-to-speech engine which he says enables it to model speech disfluencies (aka, the ums and ahs, pitch changes etc that characterize human chatter); plus “a fast and accurate” real-time voice activity detection algorithm which detects speech in under 100 milliseconds, meaning the AI can turn-take and handle interruptions in the conversation flow. The platform can also detect a caller’s gender — a feature that can be useful for healthcare use-cases, for example.
Another component Chernyshov flags is “an end-to-end pipeline for semi-supervised learning” — so it can retrain the models in real time “and fix mistakes as they go” — until Dasha hits the claimed “human-level” conversational capability for each business process niche. (To be clear, the AI cannot adapt its speech to an interlocutor in real-time — as human speakers naturally shift their accents closer to bridge any dialect gap — but Chernyshov suggests it’s on the roadmap.)
“For instance, we can start with 70% correct conversations and then gradually improve the model up to say 95% of correct conversations,” he says of the learning element, though he admits there are a lot of variables that can impact error rates — not least the call environment itself. Even cutting edge AI is going to struggle with a bad line.
The platform also has an open API so customers can plug the conversation AI into their existing systems — be it telephony, Salesforce software or a developer environment, such as Microsoft Visual Studio.
Currently they’re focused on English, though Chernyshov says the architecture is “basically language agnostic” — but does requires “a big amount of data”.
The next step will be to open up the dev platform to enterprise customers, beyond the initial 20 beta testers, which include companies in the banking, healthcare and insurance sectors — with a release slated for later this year or Q1 2020.
Test use-cases so far include banks using the conversation engine for brand loyalty management to run customer satisfaction surveys that can turnaround negative feedback by fast-tracking a response to a bad rating — by providing (human) customer support agents with an automated categorization of the complaint so they can follow up more quickly. “This usually leads to a wow effect,” says Chernyshov.
Ultimately, he believes there will be two or three major AI platforms globally providing businesses with an automated, customizable conversational layer — sweeping away the patchwork of chatbots currently filling in the gap. And of course Dasha intends their ‘Digital Assistant Super Human Alike’ to be one of those few.
“There is clearly no platform [yet],” he says. “Five years from now this will sound very weird that all companies now are trying to build something. Because in five years it will be obvious — why do you need all this stuff? Just take Dasha and build what you want.”
“This reminds me of the situation in the 1980s when it was obvious that the personal computers are here to stay because they give you an unfair competitive advantage,” he continues. “All large enterprise customers all over the world… were building their own operating systems, they were writing software from scratch, constantly reinventing the wheel just in order to be able to create this spreadsheet for their accountants.
“And then Microsoft with MS-DOS came in… and everything else is history.”
That’s not all they’re building, either. Dasha’s seed financing will be put towards launching a consumer-facing product atop its b2b platform to automate the screening of recorded message robocalls. So, basically, they’re building a robot assistant that can talk to — and put off — other machines on humans’ behalf.
Which does kind of suggest the AI-fuelled future will entail an awful lot of robots talking to each other… 


Chernyshov says this b2c call screening app will most likely be free. But then if your core tech looks set to massively accelerate a non-human caller phenomenon that many consumers already see as a terrible plague on their time and mind then providing free relief — in the form of a counter AI — seems the very least you should do.
Not that Dasha can be accused of causing the robocaller plague, of course. Recorded messages hooked up to call systems have been spamming people with unsolicited calls for far longer than the startup has existed.
Dasha’s PR notes Americans were hit with 26.3BN robocalls in 2018 alone — up “a whopping” 46% on 2017.
Its conversation engine, meanwhile, has only made some 3M calls to date, clocking its first call with a human in January 2017. But the goal from here on in is to scale fast. “We plan to aggressively grow the company and the technology so we can continue to provide the best voice conversational AI to a market which we estimate to exceed $30BN worldwide,” runs a line from its PR.
After the developer platform launch, Chernyshov says the next step will be to open up access to business process owners by letting them automate existing call workflows without needing to be able to code (they’ll just need an analytic grasp of the process, he says).
Later — pegged for 2022 on the current roadmap — will be the launch of “the platform with zero learning curve”, as he puts it. “You will teach Dasha new models just like typing in a natural language and teaching it like you can teach any new team member on your team,” he explains. “Adding a new case will actually look like a word editor — when you’re just describing how you want this AI to work.”
His prediction is that a majority — circa 60% — of all major cases that business face — “like dispatching, like probably upsales, cross sales, some kind of support etc, all those cases” — will be able to be automated “just like typing in a natural language”.
So if Dasha’s AI-fuelled vision of voice-based business process automation come to fruition then humans getting orders of magnitude more calls from machines looks inevitable — as machine learning supercharges artificial speech by making it sound slicker, act smarter and seem, well, almost human.
But perhaps a savvier generation of voice AIs will also help manage the ‘robocaller’ plague by offering advanced call screening? And as non-human voice tech marches on from dumb recorded messages to chatbot-style AIs running on scripted rails to — as Dasha pitches it — fully responsive, emoting, even emotion-sensitive conversation engines that can slip right under the human radar maybe the robocaller problem will eat itself? I mean, if you didn’t even realize you were talking to a robot how are you going to get annoyed about it?
Dasha claims 96.3% of the people who talk to its AI “think it’s human”, though it’s not clear what sample size the claim is based on. (To my ear there are definite ‘tells’ in the current demos on its website. But in a cold-call scenario it’s not hard to imagine the AI passing, if someone’s not paying much attention.)
The alternative scenario, in a future infested with unsolicited machine calls, is that all smartphone OSes add kill switches, such as the one in iOS 13 — which lets people silence calls from unknown numbers.
And/or more humans simply never pick up phone calls unless they know who’s on the end of the line.
So it’s really doubly savvy of Dasha to create an AI capable of managing robot calls — meaning it’s building its own fallback — a piece of software willing to chat to its AI in future, even if actual humans refuse.
Dasha’s robocall screener app, which is slated for release in early 2020, will also be spammer-agnostic — in that it’ll be able to handle and divert human salespeople too, as well as robots. After all, a spammer is a spammer.
“Probably it is the time for somebody to step in and ‘don’t be evil’,” says Chernyshov, echoing Google’s old motto, albeit perhaps not entirely reassuringly given the phrase’s lapsed history — as we talk about the team’s approach to ecosystem development and how machine-to-machine chat might overtake human voice calls.
“At some point in the future we will be talking to various robots much more than we probably talk to each other — because you will have some kind of human-like robots at your house,” he predicts. “Your doctor, gardener, warehouse worker, they all will be robots at some point.”
The logic at work here is that if resistance to an AI-powered Cambrian Explosion of machine speech is futile, it’s better to be at the cutting edge, building the most human-like robots — and making the robots at least sound like they care.
Dasha’s conversational quirks certainly can’t be called a gimmick. Even if the team’s close attention to mimicking the vocal flourishes of human speech — the disfluencies, the ums and ahs, the pitch and tonal changes for emphasis and emotion — might seem so at first airing.
In one of the demos on its website you can hear a clip of a very chipper-sounding male voice, who identifies himself as “John from Acme Dental”, taking an appointment call from a female (human), and smoothly dealing with multiple interruptions and time/date changes as she changes her mind. Before, finally, dealing with a flat cancelation.
A human receptionist might well have got mad that the caller essentially just wasted their time. Not John, though. Oh no. He ends the call as cheerily as he began, signing off with an emphatic: “Thank you! And have a really nice day. Bye!”
If the ultimate goal is Turing Test levels of realism in artificial speech — i.e. a conversation engine so human-like it can pass as human to a human ear — you do have to be able to reproduce, with precision timing, the verbal baggage that’s wrapped around everything humans say to each other.
This tonal layer does essential emotional labor in the business of communication, shading and highlighting words in a way that can adapt or even entirely transform their meaning. It’s an integral part of how we communicate. And thus a common stumbling block for robots.
So if the mission is to power a revolution in artificial speech that humans won’t hate and reject then engineering full spectrum nuance is just as important a piece of work as having an amazing speech recognition engine. A chatbot that can’t do all that is really the gimmick.
Chernyshov claims Dasha’s conversation engine is “at least several times better and more complex than [Google] Dialogflow, [Amazon] Lex, [Microsoft] Luis or [IBM] Watson”, dropping a laundry list of rival speech engines into the conversation.
He argues none are on a par with what Dasha is being designed to do.
The difference is the “voice-first modelling engine”. “All those [rival engines] were built from scratch with a focus on chatbots — on text,” he says, couching modelling voice conversation “on a human level” as much more complex than the more limited chatbot-approach — and hence what makes Dasha special and superior.
“Imagination is the limit. What we are trying to build is an ultimate voice conversation AI platform so you can model any kind of voice interaction between two or more human beings.”
Google did demo its own stuttering voice AI — Duplex — last year, when it also took flak for a public demo in which it appeared not to have told restaurant staff up front they were going to be talking to a robot.
Chernyshov isn’t worried about Duplex, though, saying it’s a product, not a platform.
“Google recently tried to headhunt one of our developers,” he adds, pausing for effect. “But they failed.”
He says Dasha’s engineering staff make up more than half (28) its total headcount (48), and include two doctorates of science; three PhDs; five PhD students; and ten masters of science in computer science.
It has an R&D office in Russian which Chernyshov says helps makes the funding go further.
“More than 16 people, including myself, are ACM ICPC finalists or semi finalists,” he adds — likening the competition to “an Olympic game but for programmers”. A recent hire — chief research scientist, Dr Alexander Dyakonov — is both a doctor of science professor and former Kaggle No.1 GrandMaster in machine learning. So with in-house AI talent like that you can see why Google, uh, came calling…

But why not have Dasha ID itself as a robot by default? On that Chernyshov says the platform is flexible — which means disclosure can be added. But in markets where it isn’t a legal requirement the door is being left open for ‘John’ to slip cheerily by. Bladerunner here we come.
The team’s driving conviction is that emphasis on modelling human-like speech will, down the line, allow their AI to deliver universally fluid and natural machine-human speech interactions which in turn open up all sorts of expansive and powerful possibilities for embeddable next-gen voice interfaces. Ones that are much more interesting than the current crop of gadget talkies.
This is where you could raid sci-fi/pop culture for inspiration. Such as Kitt, the dryly witty talking car from the 1980s TV series Knight Rider. Or, to throw in a British TV reference, Holly the self-depreciating yet sardonic human-faced computer in Red Dwarf. (Or indeed Kryten the guilt-ridden android butler.) Chernyshov’s suggestion is to imagine Dasha embedded in a Boston Dynamics robot. But surely no one wants to hear those crawling nightmares scream…
Dasha’s five-year+ roadmap includes the eyebrow-raising ambition to evolve the technology to achieve “a general conversational AI”. “This is a science fiction at this point. It’s a general conversational AI, and only at this point you will be able to pass the whole Turing Test,” he says of that aim.
“Because we have a human level speech recognition, we have human level speech synthesis, we have generative non-rule based behavior, and this is all the parts of this general conversational AI. And I think that we can we can — and scientific society — we can achieve this together in like 2024 or something like that.
“Then the next step, in 2025, this is like autonomous AI — embeddable in any device or a robot. And hopefully by 2025 these devices will be available on the market.”
Of course the team is still dreaming distance away from that AI wonderland/dystopia (depending on your perspective) — even if it’s date-stamped on the roadmap.
But if a conversational engine ends up in command of the full range of human speech — quirks, quibbles and all — then designing a voice AI may come to be thought of as akin to designing a TV character or cartoon personality. So very far from what we currently associate with the word ‘robotic’. (And wouldn’t it be funny if the term ‘robotic’ came to mean ‘hyper entertaining’ or even ‘especially empathetic’ thanks to advances in AI.)
Let’s not get carried away though.
In the meanwhile, there are ‘uncanny valley’ pitfalls of speech disconnect to navigate if the tone being (artificially) struck hits a false note. (And, on that front, if you didn’t know ‘John from Acme Dental’ was a robot you’d be forgiven for misreading his chipper sign off to a total time waster as pure sarcasm. But an AI can’t appreciate irony. Not yet anyway.)
Nor can robots appreciate the difference between ethical and unethical verbal communication they’re being instructed to carry out. Sales calls can easily cross the line into spam. And what about even more dystopic uses for a conversation engine that’s so slick it can convince the vast majority of people it’s human — like fraud, identity theft, even election interference… the potential misuses could be terrible and scale endlessly.
Although if you straight out ask Dasha whether it’s a robot Chernyshov says it has been programmed to confess to being artificial. So it won’t tell you a barefaced lie.

How will the team prevent problematic uses of such a powerful technology?
“We have an ethics framework and when we will be releasing the platform we will implement a real-time monitoring system that will monitor potential abuse or scams, and also it will ensure people are not being called too often,” he says. “This is very important. That we understand that this kind of technology can be potentially probably dangerous.”
“At the first stage we are not going to release it to all the public. We are going to release it in a closed alpha or beta. And we will be curating the companies that are going in to explore all the possible problems and prevent them from being massive problems,” he adds. “Our machine learning team are developing those algorithms for detecting abuse, spam and other use cases that we would like to prevent.”
There’s also the issue of verbal ‘deepfakes’ to consider. Especially as Chernyshov suggests the platform will, in time, support cloning a voiceprint for use in the conversation — opening the door to making fake calls in someone else’s voice. Which sounds like a dream come true for scammers of all stripes. Or a way to really supercharge your top performing salesperson.
Safe to say, the counter technologies — and thoughtful regulation — are going to be very important.
There’s little doubt that AI will be regulated. In Europe policymakers have tasked themselves with coming up with a framework for ethical AI. And in the coming years policymakers in many countries will be trying to figure out how to put guardrails on a technology class that, in the consumer sphere, has already demonstrated its wrecking-ball potential — with the automated acceleration of spam, misinformation and political disinformation on social media platforms.
“We have to understand that at some point this kind of technologies will be definitely regulated by the state all over the world. And we as a platform we must comply with all of these requirements,” agrees Chernyshov, suggesting machine learning will also be able to identify whether a speaker is human or not — and that an official caller status could be baked into a telephony protocol so people aren’t left in the dark on the ‘bot or not’ question.
“It should be human-friendly. Don’t be evil, right?”
Asked whether he considers what will happen to the people working in call centers whose jobs will be disrupted by AI, Chernyshov is quick with the stock answer — that new technologies create jobs too, saying that’s been true right throughout human history. Though he concedes there may be a lag — while the old world catches up to the new.
Time and tide wait for no human, even when the change sounds increasingly like we do.
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Founders need to get smart quickly about the many nuanced aspects of building a company, from understanding weird language in a big term sheet to hiring a key software developer.
But the best practical advice is scattered across blog posts, podcasts and books, and it gets outdated quickly as industry norms evolve. Even experienced founders spend a lot of time searching and still end up with the wrong information.
Holloway has an ambitious solution: Today, it’s launching a library of book-length online guides about work, written and regularly updated by teams of industry experts.
The flagship title is called Raising Venture Capital, which features 340 thoughtfully organized pages in 15 sections and three appendices on all aspects of the funding process. Designed for easy reading and easy searching in spite of the information density and length (it has a 14-hour total read-time), the guide could become a go-to resource for the startup world.
Some sections will be most appealing to newer founders, like the part on whether to raise VC in the first place. Other portions are relevant to even the most experienced serial entrepreneurs — like how to think through potential drag-along and pay-to-play provisions, full-ratchet anti-dilution clauses and other tricky terms one might find. Did you know that investors can include more than 20 types of conditions in a term sheet? Do you know how to handle each one?
With $4.6 million in seed funding from a combination of top tech investors and The New York Times that it is also announcing now, Holloway intends to expand to cover the wide variety of work-related topics about startups and technology, and beyond. The next guide, currently in progress, will be on technical hiring and recruiting. A relatively shorter sample guide on equity compensation is already available for free.
The goal is to democratize access to how the best are doing business today (and take on traditional publishing).
“We didn’t just do this for Silicon Valley and New York,” and other startup-heavy cities, co-founder and chief executive Andy Sparks tells me, “we did this for people in cities like Columbus and Atlanta where startup communities are growing, but knowledge is harder to come by.”
The lawyers and other experts who author and edit the guides could otherwise cost more than $800 an hour, he explains, and won’t have time for many clients in the first place. (The company estimates there are $40,000 worth of legal fees in the VC guide.)
Sparks, previously the co-founder of analytics platform Mattermark, is also the lead author on “Raising Venture Capital” — along with another 20 or so contributors, like Brad Feld of the Foundry Group, and Darby Wong, co-founder of the popular legal document startup Clerky . The lead author of the technical recruiting guide is Ozzie Osman, former head of product engineering at Quora, and a main contributor to it is Aditya Agarwal, the former CTO of Dropbox.
The current pricing is $100 per guide forever (including future updates), with a discount available if you pre-order. Sparks says this may change to ensure the guides stay affordable, as well as cover the very real costs of producing this quality of content.

The big-picture bet is that the startup market is large enough to create strong demand for the initial guides, in the same way that many successful tech startups of this decade have started out serving companies like themselves. Some of the topics that Holloway is working on, like tech recruiting, naturally blend in with the rest of the business world and those wider audiences. Eventually, through expansion into broader work-related topics, Holloway’s online-first approach could compete against the existing book publishing industry at a bigger scale.
This is why the company is investing heavily in its software, in addition to its content. The interface was inspired by the experiences of co-founder Joshua Levy, a veteran technologist who found himself writing popular third-party guides on GitHub about how to use common services like AWS. Features in the software include search results that break out sections and sources, a detailed left-hand index view, a hyperlinked in-house glossary of hundreds of key terms, notes of warning and importance from experts and numerous links to third-party sources.
“We decided to invest in a digital reading experience that makes reading book-length content in a browser a great experience,” Sparks said, “which also means you will land on the right guide when you go hunting for answers on search engines like Google .”
Holloway co-founders Joshua Levy (left) and Andy Sparks (right)
You’ll even see a number of links to TechCrunch and Extra Crunch articles in the guides. Sparks tells me that the company plans to continue to link to a wide variety of sources in the future — so when guest columnists write something great and practical on Extra Crunch, we will help them to get this work featured in Holloway as well. The company is also accepting a variety of contributor types for its guides going forward, which you can find more details about here.
(On that note, we’ve published an excerpt from Holloway’s “Raising Venture Capital” guide, about pro rata terms and issues, on Extra Crunch. Subscribers can go check it out here, and find a special discount to Holloway inside.)
Sparks is careful to say that the current guides are not literally finished, despite all the effort put into them so far. And indeed, they will never be. Holloway is named after the “hollow ways” seen in the European countryside, where well-used roads have gradually sunk through hundreds of years of regular use. The company intends for its guides to be the paths that people who build companies tread year after year, where the knowledge that accumulates from the usage of many forms the clear direction that those in the future take.
The company’s investors include NEA, South Park Commons, The New York Times Co., Precursor Ventures and Comcast Ventures as well as Day One Ventures, Social Capital, Abstract Ventures, 415, Royal Bank of Canada, Lightspeed Ventures, & Full Tilt Capital. Angels include Leo Polovets, Lee Linden, Raj De Datta, Neil Parikh, Mikhail Larionov, Danielle & Kevin Morrill, Srinath Sridhar, Dennis Phelps and Kevin Lee.
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WeWork chief executive officer Adam Neumann is already rich, but soon all of the early employees and investors of the co-working giant will be too.
The business, now known as The We Company, has accelerated its plans to go public, according to a new report from The Wall Street Journal. WeWork is expected to unveil is S-1 filing next month ahead of a September initial public offering.
WeWork declined to provide comment for this story.
The New York-based company, valued at $47 billion earlier this year, has long been rumored to be plotting a massive IPO. The WSJ reports it’s now in the process of meeting with Wall Street banks to secure an asset-backed loan upwards of $6 billion in what could be an effort to downsize its upcoming stock offering. WeWork disclosed massive 2018 net losses of $1.9 billion in March on revenue of $1.8 billion. To convince Wall Street it’s a business worthy of their investment will be a challenge, to say the least. Seeking capital elsewhere ahead of the IPO manages expectations and ensures WeWork ultimately has the cash it needs to continue its global expansion. Here’s a look at WeWork’s expanding revenues and losses:
WeWork has raised a total of $8.4 billion in a combination of debt and equity funding since it was founded in 2011. Its IPO is poised to become the second largest offering of the year behind only Uber, which was valued at $82.4 billion following its May IPO on the New York Stock Exchange.
WeWork is said to have initially filed paperwork with the U.S. Securities and Exchange Commission for an IPO in December, in part so it was ready to hit the public markets if other avenues for cash fell through. The business is one of several tech unicorns to attract billions from the SoftBank Vision Fund. Recently, the Japanese telecom giant eyed a majority stake in the company worth $16 billion, but scaled back their investment down to $2 billion at the last minute.
WeWork, despite mounting losses, is growing — fast. The company established a 90% occupancy rate in 2018 as membership totals rose 116%, to 401,000.
Still, whether WeWork, backed by SoftBank, Benchmark, T. Rowe Price, Fidelity and Goldman Sachs, will be able to match its $47 billion valuation when it goes public this fall is questionable. Early investors will be sure to see a nice return, but late-stage investors may be nervous about their prospects.
Neumann, for his part, has reportedly cashed out of more than $700 million from his company ahead of the IPO. The size and timing of the payouts, made through a mix of stock sales and loans secured by his equity in the company, is unusual, considering that founders typically wait until after a company holds its public offering to liquidate their holdings.
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Adam Neumann, the co-founder and chief executive of the international real estate co-working startup WeWork has reportedly cashed out of more than $700 million from his company ahead of its initial public offering.
The size and timing of the payouts, made through a mix of stock sales and loans secured by his equity in the company, is unusual, considering that founders typically wait until after a company holds its public offering to liquidate their holdings.
Despite the loans and sales of stock, first reported by The Wall Street Journal, Neumann remains the single largest shareholder in the company.
According to the Journal’s reporting, Neumann has already set up a family office to invest the proceeds and begun to hire financial professionals to run it.
He’s also made significant investments in real estate in New York and San Francisco, including four homes in the greater New York metropolitan area, and a $21 million, 13,000-square-foot house in the Bay Area, complete with a guitar-shaped room (I guess a fiddle would be too on the nose). In all, Neumann reportedly spent $80 million on real estate.
Neumann has also invested in commercial real estate (the kind that WeWork leases to provide work space with more flexible leases for companies and entrepreneurs), including properties in San Jose, Calif. and New York. Indeed, four of Neumann’s properties are leased to WeWork — to the tune of several million dollars in rent. According to the Journal, Neumann will transfer those property holdings to a WeWork-controlled fund.
The WeWork chief executive has also invested in startups in recent years. He’s got an equity stake in seven companies: Hometalk, Intercure, EquityBee, Selina, Tunity, Feature.fm and Pins, according to CrunchBase.
The rewards that Neumann is reaping from the loans and stock sales are among the highest recorded by a private company executive. In recent years, Evan Spiegel sold $8 million in stock and borrowed $20 million from Snap before its 2017 public offering, and Slack Technologies chief executive Stewart Butterfield sold $3.2 million of stock before Slack’s public offering in June.
The only liquidation of stock and other payouts that have been disclosed that come close to Neumann’s payouts are the $300 million that Groupn co-founder Eric Lefkofsky sold before his company’s IPO and the over $100 million that Mark Pincus took off the table ahead of Zynga’s offering.
WeWork declined to comment for this article.
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There comes a time for many startup companies where they either realize they need to do a nationwide rollout, or they need to actively target buyers in the middle of the country. If you are a startup on either the East or the West Coasts, it’s worth thinking about how this market might present its own set of unique challenges, and how you plan to overcome them.
There are a lot of misconceptions about what some people call “flyover country,” and as a San Francisco native who spent two decades in New York, Washington DC, and Boston before moving to Pittsburgh, I can assure you they are almost all wrong. Without getting into specifics, the reality of “middle America” is that it’s the same as anywhere else.
Income, education, world view, and waistlines are all varied. It’s pretty accurate that San Francisco possesses a culture obsessed with fitness and entrepreneurship, but California isn’t necessarily all like that, and if you think it is, I encourage you to go to Bakersfield, the Central Valley, or Eureka sometime.
In addition, just because the stereotypes are wrong doesn’t mean there’s nothing different about doing business here. As you think about how to conduct your rollout, here are some things you should consider:
As with any market, research is key since it informs every other aspect of the rollout. Start by looking into who your competition is.
Since there are fewer VC-backed startups in middle America, and smaller companies tend to get less press, the research may be harder. However, there are some major universities that are actively putting money into their own Entrepreneurship programs and those spinoffs often do very well.
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AllBright, the London-based women’s membership club backed by private real estate investment firm Cain International, has raised $18.8 million to expand into the U.S.
The company’s new round was led by Cain International and was designed to take AllBright into three U.S. locations — Los Angeles, New York and Washington, DC.
The company said that the new facilities would be opening in the coming months.
Coupled with the launch of a new networking application called AllBright Connect and the company’s AllBright Magazine, the women’s networking organization is on a full-on media blitz.
Other investors in the round include Allan Leighton, who serves as the company’s non-executive chairman; Gail Mandel, who acquired Love Home Swap (a company founded by AllBright’s co-founder Debbie Wosskow); Stephanie Daily Smith, a former finance director to Hillary Clinton; and Darren Throop, the founder, president and chief executive of Entertainment One.
A spokesperson for the company said that the new financing would value the company at roughly $100 million.
The club’s current members include actors, members of the House of Lords and other fancy pants, high-falutin folks from the worlds of politics, business and entertainment.
The club’s first American location will be in West Hollywood, and is slated to open in September 2019. The largest club, in Mayfair, has five floors and boasts more than 12,000 square feet and features rooftop terraces, a dedicated space for coaching and mentoring, a small restaurant and a bar.
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At the beginning of 2019, Techstars Mobility turned into Techstars Detroit. At the time of the announcement, Managing Director Ted Serbinski penned “the word mobility was becoming too limiting. We knew we needed to reach a broader audience of entrepreneurs who may not label themselves as mobility but are great candidates for the program.”
I always called it Techstars Detroit anyway.
With Techstars Detroit, the program is looking for startups transforming the intersection of the physical and digital worlds that can leverage the strengths of Detroit to succeed. It’s a mouthful, but makes sense. Mobility is baked into Detroit, but Detroit is more than mobility.
Today the program took the wraps off the first class of startups under the new direction.
Techstars has operated in Detroit since 2015 and has been a critical partner in helping the city rebuild. Since its launch, Serbinski and the Techstars Mobility (now Detroit) mentors have helped bring talented engineers and founders to the city.
Serbinski summed up Detroit nicely for me, saying, “No longer is Detroit telling the world how to move. The world is telling Detroit how it wants to move.” He added the incoming class represents the new Detroit, with 60% international and 40% female founders.
Airspace Link (Detroit, MI)
Providing highways in the sky for safer drone operations.
Alpha Drive (New York, NY)
Platform for the validation of autonomous vehicle AI.
Le Car (Novi, MI)
An AI-powered personal car concierge that matches you to your perfect vehicle fit.
Octane (Fremont, CA)
Octane is a mobile app that connects car enthusiasts to automotive events and to each other out on the road.
PPAP Manager (Chihuahua, Mexico)
A platform to streamline the approval of packets of documents required in the automotive industry, known as PPAP, to validate production parts.
Ruksack (Toronto, Canada)
Connecting travelers with local travel experts to help them plan a perfect trip.
Soundtrack AI (Tel Aviv, Israel)
Acoustics-based and AI-enabled Predictive Maintenance Platform.
Teporto (Tel Aviv, Israel)
Teporto is enabling a new commute modality with its one-click smart platform for transportation companies that seamlessly adapts commuter service to commuters’ needs.
Unlimited Engineering (Barcelona, Spain)
Unlimited develops modular Light Electric Vehicles as a fun, cheap and convenient solution to last-mile trips that are overserved by cars and public transportation.
Zown (Toronto, Canada)
Open up your real estate property to the new mobility marketplace.
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Knowledge is the fuel of business. Every decision requires a full understanding of the data underlying it, and that means reaching out not only to an organization’s own staff for insight, but also to experts in the wider world. Management consultants, research agencies, and data providers make hundreds of billions of dollars per year attempting to answer key questions for business executives.
Sometimes they are successful, but many times, finding the right expert can be vexing. For the most important decisions, having multiple experts or even hundreds of experts provide their opinion might be critical to success.
Germain Chastel and Sascha Eder know the problem well. Former McKinsey consultants, they worked with some of the top technology companies in the Valley attempting to answer their questions — but oftentimes struggled to do so given the unique problems that confront those organizations. “We realized it was really hard to find experts who could teach them something and had the insights that were relevant,” Chastel explained.
In early 2017, the two left McKinsey and eventually joined forces with Anuja Ketan, and together the trio formed NewtonX. NewtonX is a “knowledge access platform” which attempts to intelligently answer questions posed to it by business clients. Clients answer a carefully calibrated series of questions to properly vet and scope a query, and then NewtonX farms it out to it network of experts for insight.
That rapid-response network has now gotten the attention of Two Sigma Ventures, the venture wing of the high-flying algorithmic-trading hedge fund, which led a $12 million Series A round into New York City-based NewtonX. That’s a follow up to a $3 million seed round co-led by Third Prime Capital and Xfund last year.
Today, the company offers two main product lines. First is what it calls Expert Calls, which are similar to the traditional expert network offering of companies like GLG. Here, a client answers a series of structured questions to determine a single expert to talk to and get feedback from.
The more interesting product to me, and the one representing 70% of the startup’s revenue right now, is Expert Surveys. With this product, the goal is to ask a business question to a wider number of experts who might provide a variety of responses. So, for instance, NewtonX could potentially answer a query such as how CIOs at large Fortune 500 companies are budgeting for cybersecurity this year.
Where NewtonX gets interesting is that it doesn’t want to just casually facilitate these calls and surveys, but instead, the startup wants to build out a true knowledge graph that can better answer questions faster with each activity on the platform. As the platform gets smarter about knowledge, the idea is that on-boarding a new client or initiating a new survey or question will be faster since the platform will already know many of the nuances of that particular field of business.
Over the two and a half years since the company’s founding, it has found wide support among businesses. It counts Microsoft, 23&Me, and Gartner as public clients, and also has a list of 20 corporates already on the platform. Chastel told me that nine of the top ten management consulting firms have also used NewtonX services, and many top research firms have also used the product.
The NewtonX team. Courtesy of NewtonX
Early revenues has allowed the company to expand early. It has 32 employees at its offices near Grand Central, and Chastel noted to me that a majority of employees and a majority of managers are women. He said that the firm’s technology to identify experts on the web is also the basis for their own recruiting efforts.
With the new funding, the company intends to grow to 100 head count locally, and also expand out is client success and expert success teams.
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Nearly 8,000 Amazon employees, many in prestigious engineering and design roles, have recently signed a petition calling on Jeff Bezos and the Amazon Board of Directors to dramatically shift the giant company’s approach to climate change.
By deploying a kind of corporate social disobedience such as speaking out dramatically at shareholders meetings, and by engaging in a variety of community organizing tactics, the “Amazon Employees for Climate Justice” group has quickly become a leading example of a growing trend in the tech world: tech employees banding together to take strong ethical stances in defiance of their powerful employers.
The public actions taken by these employees and groups have been covered widely by the news media. For my TechCrunch series on the ethics of technology, however, I wanted to better understand what participating actively in this campaign has been like some of the individuals involved.
How are employees in high-pressure jobs balancing their professional roles and responsibilities with being actively, publicly in defiance of their employers on a high-profile issue? How do leaders in these efforts explain the philosophy underlying their ethical stance? And how likely are their ideas to spread throughout Amazon and beyond – perhaps particularly among younger tech workers?
I recently spoke with a handful of the Amazon employees most actively involved in the Employees for Climate Justice campaign, all of whom inspired me– in similar and different ways. Below is the first of two interviews I’ll publish here. This one is with Rajit Iftikhar, a young software engineer from New York who moved to Seattle to work for Amazon after earning his Bachelor’s of Engineering in Computer Science from Cornell in 2016.
Rajit Iftikhar
Rajit struck me as a humble and precociously wise young man who could be a role model — though he seems to have little interest in singling himself out that way — for thousands of other software engineers and technologists at Amazon and beyond.
Greg Epstein: Your personal story has been key to your organizing with Amazon Employees for Climate Justice. Can you start by saying a bit about why?
Rajit Iftikhar: A lot of why I care about climate justice is informed by me having parents from another country that is going to be very adversely affected by [climate change]. Countries like Bangladesh are going to suffer some of the worst consequences from climate change, because of where the country’s located, and the fact that it doesn’t have the resources to adapt.
Bangladesh is already feeling the effects of climate crisis; it is much harder for people to live in the rural areas, [people are] being forced into the cities. Then you have the cyclones that the climate crisis is going to bring, and rising sea levels and flooding.
So, my background [emphasizes, for me] how unjust our emissions are in causing all these problems for people in other countries. And even for communities of color within our country who are going to be disproportionately impacted by the emissions that largely richer people [cause].
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Slack wants to be the new operating system for teams, something it has made clear on more than one occasion, including in its recent S-1 filing. To accomplish that goal, it put together an in-house $80 million venture fund in 2015 to invest in third-party developers building on top of its platform.
Weeks ahead of its direct listing on The New York Stock Exchange, it continues to put that money to work.
Troops is the latest to land additional capital from the enterprise giant. The New York-based startup helps sales teams communicate with a customer relationship management tool plugged directly into Slack. In short, it automates routine sales management activities and creates visibility into important deals through integrations with employee emails and Salesforce.
Troops founder and chief executive officer Dan Reich, who previously co-founded TULA Skincare, told TechCrunch he opted to build a Slackbot rather than create an independent platform because Slack is a rocket ship and he wanted a seat on board: “When you think about where Slack will go in the future, it’s obvious to us that companies all over the world will be using it,” he said.
Troops has raised $12 million in Series B funding in a round led by Aspect Ventures, with participation from the Slack Fund, First Round Capital, Felicis Ventures, Susa Ventures, Chicago Ventures, Hone Capital, InVision founder Clark Valberg and others. The round brings Troops’ total raised to $22 million.
Launched in 2015 by New York tech veterans Reich, Scott Britton and Greg Ratner, the trio weren’t initially sure of Slack’s growth trajectory. It wasn’t until Slack confirmed its intent to support the developer ecosystem with a suite of developer tools and a fund that the team focused its efforts on building a Slackbot.
“People sometimes thought of us, at least in the early days, as a little bit crazy,” Reich said. “But now Slack is the fastest-growing SaaS company ever.”
“We think the biggest opportunity in the [enterprise SaaS] category is going to be tools oriented around the customer-facing employee (CRM), and that’s where we are innovating,” he added.
Troops’ tools are helpful for any customer-facing team, Reich explains. Envoy, WeWork, HubSpot and a few hundred others are monthly paying subscribers of the tool, using it to interact with their CRM in a messaging interface and to receive notifications when a deal has closed. Troops integrates with Salesforce, so employees can use it to search records, schedule automatic reports and celebrate company wins.
Slack, in partnership with a number of venture capital funds, including Accel, Kleiner Perkins and Index, has also deployed capital to a number of other startups, like Lattice, Drafted and Loom.
With Slack’s direct listing afoot, the Troops team is counting on the imminent and long-term growth of the company’s platform.
“We think it’s still early days,” Reich said. “In the future, we see every company using something like Troops to manage their day-to-day.”
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