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Last week a select group of 20 employees and guests gathered at an event space on the San Francisco Bay, and, while looking out at the Bay Bridge, dined on a selection of choice elk sausages, Wagyu meatloaf and lamb burgers — all of which were grown from a petri dish.
The dinner was a coming out party for Orbillion Bio, a new startup pitching today in Y Combinator’s latest demo day, that’s looking to take lab-grown meats from the supermarket to high-end, bespoke butcher shops.
Instead of focusing on pork, chicken and beef, Orbillion is going after so-called heritage meats — the aforementioned elk, lamb and Wagyu beef to start.
By focusing on more expensive-end products, Orbillion doesn’t have as much pressure to slash costs as dramatically as other companies in the cellular meat market, the thinking goes.
But there’s more to the technology than its bougie beef, elite elk and luscious lamb meat.
“Orbillion uses a unique accelerated development process producing thousands of tiny tissue samples, constantly iterating to find the best tissue and media combinations,” according to Holly Jacobus, whose firm, Joyance Partners, is an early investor in Orbillion. “This is much less expensive and more efficient than traditional methods and will enable them to respond quickly to the impressive demand they’re already experiencing.”
The company runs its multiple cell lines through a system of small bioreactors. Orbillion couples that with a high throughput screening and machine learning software system to build out a database of optimized tissue and media combinations. “The key to making lab grown meat work scalably is choosing the right cells cultured in the most efficient way possible,” Jacobus wrote.
Orbillion is co-founded by a deeply technical and highly experienced team of executives that’s led by Patricia Bubner, a former researcher at the German pharmaceutical giant Boehringer Ingelheim. Joining Bubner is Gabriel Levesque-Tremblay, a former director of the American Institute of Chemical Engineers, who was a post-doc at Berkeley with Bubner and serves as the company’s chief technology officer. Rounding out the senior leadership is Samet Yildirim, the chief operating officer and a veteran executive of Boehringer Ingelheim (he actually served as Bubner’s boss).
Orbillion Bio co-founders Gabriel Levesque-Tremblay, CTO; Patricia Bubner, CEO; and Samet Yildirim, COO. Image Credit: Orbillion Bio
For Bubner, the focus on heritage meats is as much a function of her background growing up in rural Austria as it is about economics. A longtime, self-described foodie and a nerd, Bubner went into chemistry because she ultimately wanted to apply science to the food business. And she wants Orbillion to make not just meat, but the most delicious meats.
It’s an aim that fits with how many other companies have approached the market when they’re looking to commercialize a novel technology. Higher-end products, or products with unique flavor profiles that are unique to the production technologies available, are more likely to be commercially viable sooner than those competing with commodity products. Why focus on angus beef when you can focus on a much more delicious breed of animal?
For Bubner, it’s not just about making a pork replacement, it’s about making the tastiest pork replacement.
“I’m just fascinated and can see the future in us being able to further change the way we produce food to be more efficient,” she said. “We’re at this inflection point. I’m a nerd, I’m a foodie, and I really wanted to use my skills to make a change. I wanted to be part of that group of people that can really have an impact on the way we eat. For me there’s no doubt that a large percentage of our food will be from alternative proteins — plant based, fermentation and lab-grown meat.”
Joining Boehringer Ingelheim was a way for Bubner to become grounded in the world of big bioprocessing. It was preparation for her foray into lab-grown meat, she said.
“We are a product company. Our goal is to make the most flavorful steaks. Our first product will not be whole cuts of steak. The first product is going to be a Wagyu beef product that we plan on putting out in 2023,” Bubner said. “It’s a product that’s going to be based on more of a minced product. Think Wagyu sashimi.”
To get to market, Bubner sees the need not just for a new approach to cultivating choice meats, but a new way of growing other inputs as well, from the tissue scaffolding needed to make larger cuts that resemble traditional cuts of meat, or the fats that will need to be combined with the meat cells to give flavor.
That means there are still opportunities for companies like Future Fields, Matrix Meats and Turtle Tree Scientific to provide inputs that are integrated into the final, branded product.
Bubner’s also thinking about the supply chain beyond her immediate potential partners in the manufacturing process. “Part of my family were farmers and construction workers and the others were civil engineers and architects. I hold farmers in high respect… and think the people who grow the food and breed the animals don’t get recognition for the work that they do.”
She envisions working in concert with farmers and breeders in a kind of licensing arrangement, potentially, where the owners of the animals that produce the cell lines can share in the rewards of their popularization and wider commercial production.
That also helps in the mission of curbing the emissions associated with big agribusiness and breeding and raising livestock on a massive scale. If you only need a few animals to make the meat, you don’t have the same environmental footprint for the farms.
“We need to make sure that we don’t make the mistakes that we did in the past that we only breed animals for yield and not for flavor,” said Bubner.
Even though the company is still in its earliest days, it already has one letter of intent, with one of San Francisco’s most famous butchers. Guy Crims, also known as “Guy the Butcher,” has signed a letter of intent to stock Orbillion Bio’s lab-grown Wagyu in his butcher shop, Bubner said. “He’s very much a proponent of lab-grown meat.”
Now that the company has its initial technology proven, Orbillion is looking to scale rapidly. It will take roughly $3.5 million for the company to get a pilot plant up and running by the end of 2022, and that’s in addition to the small $1.4 million seed round the company has raised from Joyant and firms like VentureSouq.
“The way I see an integrated model working later on is to have the farmers be the breeders of animals for cultivated meat. That can reduce the number of cows on the planet to a couple of hundred thousand,” Bubner said of her ultimate goal. “There’s a lot of talking about if you do lab-grown meat you want to put me out of business. It’s not like we’re going to abolish animal agriculture tomorrow.”
Image Credit: Getty Images
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Eco, which has built out a digital global cryptocurrency platform, announced Friday that it has raised $26 million in a funding round led by a16z Crypto.
Founded in 2018, the SF-based startup’s platform is designed to be used as a payment tool around the world for daily-use transactions. The company emphasizes that it’s “not a bank, checking account, or credit card.”
“We’re building something better than all of those combined,” it said in a blog post. The company’s mission has also been described as an effort to use cryptocurrency as a way “to marry savings and spending,” according to this CoinList article.
Eco users can earn up to 5% annually on their deposits and get 5% cash back when transacting with merchants such as Amazon, Uber and others. Next up: The company says it will give its users the ability to pay bills, pay friends and more “all from the same, single wallet.” That same wallet, it says, rewards people every time they spend or save.
After a “successful” alpha test with millions of dollars deposited, the company’s Eco App is now available to the public.
A slew of other VC firms participated in Eco’s latest financing, including Founders Fund, Activant Capital, Slow Ventures, Coinbase Ventures, Tribe Capital, Valor Capital Group and more than one hundred other funds and angels. Expa and Pantera Capital co-led the company’s $8.5 million funding round.
CoinList co-founder Andy Bromberg stepped down from his role last fall to head up Eco. The startup was originally called Beam before rebranding to Eco “thanks to involvement by founding advisor, Garrett Camp, who held the Eco brand,” according to Coindesk. Camp is an Uber co-founder and Expa is his venture fund.
For a16z Crypto, leading the round is in line with its mission.
In a blog post co-written by Katie Haun and Arianna Simpson, the firm outlined why it’s pumped about Eco and its plans.
“One of the challenges in any new industry — crypto being no exception — is building things that are not just cool for the sake of cool, but that manage to reach and delight a broad set of users,” they wrote. “Technology is at its best when it’s improving the lives of people in tangible, concrete ways…At a16z Crypto, we are constantly on the lookout for paths to get cryptocurrency into the hands of the next billion people. How do we think that will happen? By helping them achieve what they already want to do: spend, save, and make money — and by focusing users on tangible benefits, not on the underlying technology.”
Eco is not the only crypto platform offering rewards to users. Lolli gives users free bitcoin or cash when they shop at over 1,000 top stores.
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What is working in the office going to look like in a post-COVID-19 world?
That’s something one startup hopes to help companies figure out.
Saltmine, which has developed a web-based workplace design platform, has raised $20 million in a Series A funding round.
Existing backers Jungle Ventures and Xplorer Capital led the financing, which also included participation from JLL Spark, the strategic investment arm of commercial real estate brokerage JLL.
Notably, JLL is not only investing in Saltmine, but is also partnering with the San Francisco-based startup to sell its service directly to its clients — opening up a whole new revenue stream for the four-year-old company.
Saltmine claims its cloud-based technology does for corporate real estate heads what Salesforce did for CROs in digitizing and streamlining the office design process. It saw an 80% spike in ARR (annual recurring revenue) last year while doubling the number of companies it works with, according to CEO and founder Shagufta Anurag. Its more than 35 customers include PG&E, Snowflake, Fidelity and Workday, among others. Its mission, put simply, is to help companies “create the best possible workplaces for their employees.”
Saltmine claims to have a 95% customer retention rate and in 2020 saw 350% year over year growth in monthly active users of its SaaS platform. So far, the square footage of all the office real estate properties designed and analyzed by customers on Saltmine totals 50 million square feet across 1,500 projects.
Saltmine says it offers companies tools to do things like establish social distancing measures in the office. Its platform, the company says, houses all workplace data — including strategy, design, pricing and portfolio analytics — in one place. It combines and analyzes floor plans with project requirements with real-time behavioral data (aggregated through a combination of utilization sensors and employee feedback) to identify companies’ design needs. Besides aiming to improve the workplace design process, Saltmine claims to be able to help companies “optimize their real estate portfolios.”
The pandemic has dramatically increased the need for a digital transformation of how workplaces are designed and reimagined, according to Anurag.
“Given the need for social distancing capabilities and a greater emphasis on work-life balance in many office settings, few workers expect a complete ‘return to normal,’ ” she said. “There is now enormous pressure on corporate heads of real estate to adapt and modify their workplaces.”
Once companies identify their new needs, Saltmine uses “immersive” digital 3D renderings to help them visualize the necessary changes to their real estate properties.
Singapore-based Anurag has previous experience in the design world, having founded Space Matrix, a large interior design firm in Asia, as well as Livspace, a digital home interior design company.
“I saw the same pain points and unmet needs in office real estate that I did in the residential market,” she said. “Real estate is the second-largest cost for companies and has a direct impact on their largest cost — their people.”
Looking ahead, Saltmine plans to use its new capital to (naturally) do some hiring and continue to acquire customers — in particular, seeking to expand its portfolio of Global 2000 companies.
Saltmine has about 125 employees in five offices across Asia, Europe and North America. It expects to have 170 employees by year’s end and to be profitable by the end of fiscal year 2021.
The company’s initial focus has been in North America, but it is now beginning to expand into APAC and Australia.
JLL Technologies’ co-CEO Yishai Lerner said JLL Spark was drawn to Saltmine’s approach of making data and analytics accessible in one place.
“Having a single source of truth for data also facilitates collaboration across teams, which is important, for example, in workspace planning,” he told TechCrunch. “This reduces inefficiencies and improves workflows in today’s fragmented design, build and fit-out market.”
JLL Spark invests in companies that it believes can benefit from its distribution and network — hence the firm’s agreement to sell Saltmine’s software directly to its customers.
“As JLL tenants and clients continue to embrace the future of work, they are seeking technology solutions that keep their buildings running efficiently and effectively,” Lerner said. “Saltmine’s platform checks all of the boxes by streamlining stakeholder collaboration, increasing transparency and simplifying data management.”
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Hinge Health, the San Francisco-based company that offers a digital solution to treat chronic musculoskeletal (MSK) conditions — such as back and joint pain — has closed a $310 million in Series D funding, according to sources.
The round is led by Coatue and Tiger Global, and values 2015-founded Hinge at $3 billion post-money, people familiar with the investment tell me. It comes off the back of a 300% increase in revenue in 2020, with investors told to expect revenue to nearly triple again in 2021 based on the company’s booked pipeline.
I also understand that Hinge’s founders — Daniel Perez and Gabriel Mecklenburg — retain voting control of the board. I’ve reached out to CEO Perez for comment and will update this post should I hear back.
Hinge’s existing investors include Bessemer Venture Partners, which backed the company’s $90 million Series C round in February, along with Lead Edge Capital, Insight Partners (which led the Series B), Atomico (which led the Series A), 11.2 Capital, Quadrille Capital and Heuristic Capital.
Originally based in London, Hinge Health primarily sells into U.S. employers and health plans, billing itself as a digital healthcare solution for chronic MSK conditions. The platform combines wearable sensors, an app and health coaching to remotely deliver physical therapy and behavioral health.
The basic premise is that there is plenty of existing research to show how best to treat chronic MSK disorders, but existing healthcare systems aren’t up to the task due to funding pressures and for other systematic reasons. The result is an over tendency to use opioid-based painkillers or surgery, with poor results and often at even greater cost. Hinge wants to reverse this through the use of technology and better data, with a focus on improving treatment adherence.
Meanwhile, Hinge’s jump in valuation is significant. According to sources, the company’s February round produced a valuation of around $420 million, so the new valuation is more than a 6x increase.
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My big question for 2021, and the one that is on every startup’s mind, is how will a cataclysmic event such as a global pandemic show up in post-pandemic innovation? I think we’re in the early innings of seeing what “aha moments” have materialized into companies. And we won’t know the pandemic’s true impact on our psyches until the dust settles and we have an opportunity to reflect.
We do know it will be fascinating to watch. In 2020, innovators and investors were forced to stand still, and witness cracks, fractures and rubble in society in a way like never before. It was a humbling year that, for much of the tech community, was mostly spent inside, away and alone.
One reaction I’ve noticed so far — that isn’t necessarily new but comes with new weight — is a rush of innovation that focuses on reducing friction. Take trends like the rise of building in public or the unbundling of venture capital. Or remote work’s shift from enabling communication to now needing to enable passive and active collaboration. Apply the same idea to mental health, education and fitness. Heck, we’re even seeing people take the Y Combinator format and apply it to anything that makes sense, from helping operators turn into investors to helping employees try to turn their side gig into a full-time company.
While these movements didn’t begin because of the coronavirus, they all seem to have a huge, pandemic-sized asterisk next to it.
It would be easy to dismiss these movements as small and inconsequential. But, as my colleague and fellow Equity co-host Danny Crichton pointed out this week, “sometimes the most important changes in venture and startups more generally have come from lowering that last bit of friction to action.”
Lowering friction feels like the mantra with which we all need to enter 2021.
I already have hope that innovation will come from a more diverse set of people, whether it’s in a hacker house for undergraduate women or a student-founded service that matches undergraduate students to nonprofits. So, as we enter the new year — and bear with me here — I urge you to be optimistic.
The last year in tech hasn’t left people exhausted and hopeless, it’s left them energized and ready.
Maze, computer artwork. (Image Credits: Pasieka / Getty Images)
When SAP announced that Qualtrics was getting spun out in July, the full-circle moment made the Equity podcast crew jump to our mics with guesses around why. Now, months later, there’s a new S-1 filing, and more to color in. Alex Wilhelm broke down the Utah-based unicorn’s numbers, noting that it’s the second time Qualtrics has filed.
Will the second time be the charm that Qualtrics needs to actually go public this time around? I’ll let you make the call yourself once you sift through Alex’s analysis of the valuation and financials.
Blackboard Business Strategy Concept. (Image Credits: hanibaram / Getty Images)
If those three words in a single subhed elicit a certain reaction from you, Danny Crichton has a bone to pick with you. He wrote a piece this week about tech’s cynicism around anything new, underscoring how Miami’s future as a tech hub, Substack’s future as a replacement for traditional journalism and Clubhouse’s future as a social media disruptor have come under fire as expected:
The cynicism of immediate perfection is one of the strange dynamics of startups in 2020. There is this expectation that a startup, with one or a few founders and a couple of employees, is somehow going to build a perfect product on day one that mitigates any potential problem even before it becomes one. Maybe these startups are just getting popularized too early, and the people who understand early product are getting subsumed by the wider masses who don’t understand the evolution of products?
Danny’s argument is to give these companies a little more grace to execute on a vision they themselves are not even close to scratching the surface of. When it comes to holding specific decision-makers and businesses to a certain standard, I prefer a more fluid conversation. But I do agree that writing off a business because it hasn’t done everything correctly from the start can hurt progress. It’s easy to be grumpy, but why not choose to be an optimist? Tell me your optimistic bets by responding to this newsletter or tweeting me @nmasc_.
Skyline of downtown Miami, Florida looking toward the Brickell neighborhood on Biscayne Bay. Brickell is one of the largest financial districts in the United States and also has many high-rise residential condominium and apartment towers. (Image Credits: John Coletti / Getty Images)
Speaking of humbling moments and optimism, our own Sarah Perez wrote a piece this week about EarlyBird, an app that lets families and friends gift investments to children. While Acorns and Stash have similar offerings, EarlyBird is bringing a fresh UX play to financial literacy, freedom and education. There’s a ton of work left to be done, hurdles to deal with, and giant unicorns to compete with. EarlyBird, however, is only weeks old, so there’s much to watch out for.
VP Caleb Frankel, now EarlyBird COO, explained the early inspiration:
“This all started with a problem I experienced years ago when my beautiful baby niece was born. I found myself head over heels and spending hundreds and hundreds of dollars on just the most ridiculous stuff — pretty much just junk gifts,” he says. “I wanted to have a larger impact in her life and something that she could really use when she grew up.”
Image Credits: oxygen (opens in a new window) / Getty Images
Attending CES 2021? TechCrunch wants to meet your startup
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How artificial intelligence will be used in 2021
On the diversity front, 2020 may prove a tipping point
The 2020 boom in climate tech SPACs
2021 will be a calmer year for semiconductors and chips (except for Intel)
Understanding Europe’s big push to rewrite the digital rulebook
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China lays out ‘rectification’ plan for Jack Ma’s fintech empire Ant
NSO used real people’s location data to pitch its contact-tracing tech, researchers say
India’s slow 2020 told through dollars and cents
An earnest review of a robotic cat pillow
The Equity pod put together a 2021 predictions episode (with Chris Gates, our producer, making a guest appearance on the mic as well!). We talk about IPO candidates, San Francisco and the future of drugs.
2020 brought several million downloads to the podcast, and we’re super thankful to all of y’ all for tuning in. This year will be even bigger, better and, hey, maybe we’ll even get to make fun of each other in person too.
Till next week,
Natasha Mascarenhas
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Healthcare startup Color has raised a sizable $167 million in Series D funding round, at a valuation of $1.5 billion post-money, the company announced today. This brings the total raised by Color to $278 million, with its latest large round intended to help it build on a record year of growth in 2020 with even more expansion to help put in place key health infrastructure systems across the U.S. — including those related to the “last mile” delivery of COVID-19 vaccines.
This latest investment into Color was led by General Catalyst, and by funds invested by T. Rowe Price, along with participation from Viking Global investors as well as others. Alongside the funding, the company is also bringing on a number of key senior executives, including Claire Vo (formerly of Optimizely) as chief product officer, Emily Reuter (formerly of Uber, where she played a key role in its IPO process) as VP of Strategy and Operations, and Ashley Chandler (formerly of Stripe) as VP of Marketing.
“I think with the [COVID-19] crisis, it’s really shone the light on that lack of infrastructure. We saw it multiple times, with lab testing, with antigen testing and now with vaccines,” Color CEO and co-founder Othman Laraki told me in an interview. “The model that we’ve been developing, that’s been working really well and we feel like this is the opportunity to really scale it in a very major way. I think literally what’s happening is the building of the public health infrastructure for the country that’s starting off from a technology-first model, as opposed to, what ends up happening in a lot of industries, which is you start off taking your existing logistics and assets, and add technology to them.”
Color’s 2020 was a record year for the company, thanks in part to partnerships like the one it formed with San Francisco to establish testing for healthcare workers and residents. Laraki told me they did about five-fold their prior year’s business, and while the company is already set up to grow on its own sustainably based on the revenue it pulls in from customers, its ambitions and plans for 2021 and beyond made this the right time to help it accelerate further with the addition of more capital.
Laraki described Color’s approach as one that is both cost-efficient for the company, and also significant cost-saving for the healthcare providers it works with. He likens their approach to the shift that happened in retail with the move to online sales — and the contribution of one industry heavyweight in particular.
“At some point, you build Amazon — a technology-first stack that’s optimized around access and scale,” Laraki said. “I think that’s literally what we’re seeing now with healthcare. What’s kind of getting catalyzed right now is we’ve been realizing it applies to the COVID crisis, but also, we started actually working on that for prevention and I think actually it’s going to be applying to a huge surface area in healthcare; basically all the aspects of health that are not acute care where you don’t need to show up in hospital.”
Ultimately, Color’s approach is to rethink healthcare delivery in order to “make it accessible at the edge directly in people’s lives,” with “low transaction costs,” in a way that’s “scalable, [and] doesn’t use a lot of clinical resourcing,” Laraki says. He notes that this is actually very possible once you reasses the problem without relying on a lot of accepted knowledge about the way things are done today, which result in a “heavy stack” versus what you actually need to deliver the desired outcomes.
Laraki doesn’t think the problem is easy to solve — on the contrary, he acknowledges that 2021 is likely to be even more difficult and challenging than 2020 in many ways for the healthcare industry, and we’ve already begun to see evidence of that in the many challenges already faced by vaccine distribution and delivery in its initial rollout. But he’s optimistic about Color’s ability to help address those challenges, and to build out a “last mile” delivery system for crucial care that expands accessibility, while also making sure things are done right.
“When you take a step back, doing COVID testing or COVID vaccinations … those are not complex procedures at all — they’re extremely simple procedures,” he said. “What’s hard is doing them massive scale and with a very low transaction cost to the individual and to the system. And that’s a very different tooling.”
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Jio Platforms, the biggest telecom operator in India and which has raised over $20 billion from Facebook, Google and other high-profile investors this year, is leading a financing round of a San Francisco-based startup that develops augmented reality mobile games.
Jio has led the Series A fundraise of Krikey, founded by sisters Jhanvi and Ketaki Shriram, the Indian firm said on Wednesday. They did not disclose the size of Krikey’s Series A round, but Jio said Krikey has raised $22 million to date.
Krikey has previously not disclosed any financing rounds, according to their listings on Crunchbase, CBInsights and Tracxn. Jio also did not share who else participated in Krikey’s new round.
As part of the announcement, Krikey has launched Yaatra, a new AR game that invites users to step in an action-adventure story to defeat a monster army. “Using weapons such as the bow and arrow, chakra, lightning and fire bolts, players can battle through different levels of combat and puzzle games,” Krikey said.
Jio subscribers in India will get exclusive access to a range of features in Krikey, available on Android and iOS, including a 3D avatar, and entry to some game levels and weapons. Jio said Yaatra game would also be made available to JioPhone feature-phone users.
Krikey has developed two additional games, including Gorillas, a game the startup developed in partnership with Ellen DeGeneres’s wildlife foundation.
“We believe AR has a huge potential in not just gaming but in many other industries to disrupt the way people interact with the world around them. We are very excited to use the phone as the window back into the natural world and hope that people’s experiences in empathising with birds and guerrillas and different ecosystems will encourage them to start to take real-world conservation behaviour changes,” said Jhanvi in an interview with Cheddar last year.
“Our vision with Krikey is to bring together inspiration and reality in an immersive way. With augmented reality, we are able to bring fantasy worlds into your home, straight through the window of your mobile phone,” said Jhanvi and Ketaki Shriram in a joint statement today. They have previously participated in Apple’s female entrepreneur camp.
In a statement, Akash Ambani, director of Jio, said, “Krikey will inspire a generation of Indians to embrace Augmented Reality. Our vision is to bring the best experiences from across the world to India and the introduction of Yaatra is a step in that direction. Augmented Reality gaming takes the user into a world of its own, and we invite every Jio and non-Jio user to experience AR through Yaatra.”
Jio has previously acquired music streaming service Saavn (which has since been rebranded to JioSaavn), and Haptik, a startup that develops conversational platforms and virtual assistants.
We have reached out to Jio and Krikey for more details.
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A lot of the focus in online education — and, let’s face it, education overall — has been about professional development for knowledge workers, education for K-12 and how best to deliver cost-effective, engaging higher learning to those in college and beyond. But in what might be a sign of the times, today a startup that’s focused on e-learning and the subsequent job market for a completely different end of the spectrum — home services — is announcing some funding to continue building out its business in earnest.
Nana, which runs a free academy to teach people how to fix appliances, and then gives students the option of becoming a part of its own marketplace to connect them to people needing repairs — has picked up $6 million.
The seed round is being led by Shripriya Mahesh of Spero Ventures; Next Play Ventures (ex-LinkedIn CEO Jeff Weiner’s new fund), Lachy Groom, Scott Belsky, Geoff Donaker of Burst Capital and Michael Staton of Learn Capital are among those also participating.
Nana has now raised $10.7 million, with past backers including Alpha Bridge Ventures, Bob Lee and the Uber Syndicate, an investment vehicle to back Uber alums in new ventures. Founder and CEO David Zamir is not actually an Uber alum, but one of his first employees, VP of Engineering Oliver Nicholas is an early Uber engineer and the company has also found a lot of traction of Uber drivers this year, after many found themselves out of work after the chilling effect that the pandemic had on ridesharing.
Nana — full name Nana Technologies (and not to be confused with Nana Technology, tech built for older adults) — is partly a labor/future of work play, partly an educational play, partly a tech/IoT play and partly an ecological play, in the eyes of Zamir, who himself trained as an appliance repairperson, running his own successful business in the Bay Area before pivoting it into a training platform and marketplace.
“There are 5.9 million tons of municipal solid waste [which includes lots of electronics like washing machines, blenders and everything in between] in the U.S.,” he said in an interview, “and only 50% of that is capable of getting recycled. We’re in a vicious cycle with appliances, and it’s partly because there aren’t enough people with the knowledge to repair them. But what if you had the liquidity to do that? We’re talking about creating jobs, but also saving the environment.”
Nana’s proposition starts with free lessons to fix a range of appliances — currently dishwashers, refrigerators, ovens, stoves, washers and dryers — and their typical breakdown/poor performance issues to anyone who wants to know how to repair them. These classes are available to anyone — an individual simply interested in learning how to fix a machine, but more likely someone looking to pick up a skill and then use it to make some money.
Once you take and pass a course — currently remote — you have the option (but not requirement) to register on Nana’s platform to become a repair person who picks up jobs through it to get jobs fixing that particular issue. Nana already has partnerships with major appliance and warranty companies, including GE, Miele, Samsung, Assurant, Cinch and First American Home Warranty, so this is how it gets most of its work in, but it also accepts direct requests from consumers for repair of dishwashers, refrigerators, ovens, stoves, washers and dryers.
Over time, Zamir said, the plan is not just to take in jobs and send out technicians to fix things in an Uber-style dispatch service — but to expand it to fit the kinds of next-generation appliances that are being built today, with IoT diagnostic monitoring and helping also to integrate these appliances into connected homes. It also seems to be slowly expanding into other home services too, alongside appliance repair (which remains its main business).
Nana has to date registered hundreds of technicians in 12 markets across the U.S. and said it expects to expand to 20 markets by the end of 2021.
Nana has an unlikely founder story that speaks to how so much of the tech world is still about hustle and finding opportunities in the margins.
Founder and CEO David Zamir hails from Israel, but unlike many of the transplants you may come across from there to the Bay Area tech world, he’s not a tech guy by education, training or work experience. He used to run clothing stores in Tel Aviv and vaguely liked the idea of being involved in a tech business at some point — Israel loves to call itself “startup nation,” so that bug is bound to bite even those who don’t study computer science or engineering — but he didn’t know what to do or where to begin.
“The clothing business didn’t make much money,” he said. So after a period Zamir and his American wife decided to move to the U.S. and try their luck there.
While initially based on the east coast near her family and wondering about what kind of job to pursue, Zamir spoke with a friend of his in Toronto who was working as an independent tradesperson fixing appliances, and the friend suggested this as an option, at least for a while.
“So I hopped on an airplane to shadow my friend,” he recalled. “The lightbulb went off. I thought, I should do this in San Francisco,” where he had been wanting to move to crack in to the tech world, somehow. “I thought that I’d start with fixing appliances while I figured out how to find my way into tech.”
That turned into more than a temporary income stopgap, of course. After finding that his business was taking off, Zamir saw that technology would be the avenue to growing it.
He was helped in part to build the idea and the business through his grit. Josh Elman, the famous tech investor, complained about a broken dryer back in April, and asked the Twitter hive mind whether he should get a new one or go through the pain of fixing it. Someone flagged the question to Zamir, who reached out and connected Elman with one of Nana’s online teaching technicians. Twelve hours later, Elman’s drier was diagnosed (by Elman), on its way to getting fixed, and Elman signed on as an advisor to the company.
The world of tech is all about building new things and solving problems, with “breaking” being more synonymous with disruption (= “good”) and fearlessness (see: Facebook’s old mantra to its early employees to move fast and break things). But behind that, there is an interesting disconnect between the tech version of “broken” and objects that are actually “broken” in the real world.
Many of us these days find using apps and other digital interfaces second-nature, but most of us would have no idea how to repair or work with much more basic electronic systems. And nor do most of us want to. More often than not, we give up on it, decide it’s not worth fixing and click on Amazon et al. to get a new shiny object.
Looked at on a wider scale, this is actually a big problem.
Electronics can be recycled, but in reality only about half the materials can be usefully reused. Meanwhile, Nana estimates that the appliance repair market is a $4 billion opportunity, with some 80 million appliances in need of being serviced annually in the U.S. But currently there are only some 31,000 trained technicians in the market. Nana estimates that to meet the demand of growing numbers, an additional 28,000 new technicians will be needed by 2025.
At the same time, the move to automation in many skilled labor jobs is putting people out of work: research from the Brookings Institution estimates that some 30 million people will lose their jobs in coming years because of it.
The idea here is that a platform like Nana can help some of those people retrain to fill the gap for appliance technicians, while at the same time extending the life of people’s appliances in a less painful way — putting less stuff into landfill — while at the same time expanding knowledge for anyone who cares for it.
Zamir said that Nana was named after his mother, who raised David as a single parent after his father passed away, a reference to working hard and being practical.
That sentimentality seems to motivate him in a bigger way, too: Zamir himself is a guy with a lot of heart and emotion vested into the concept of his startup. When I told him an anecdote of how our dishwasher broke down earlier this year and both a customer service rep from the maker (Siemens) and a separate repair person advised me to replace it, he got visibly agitated over our video call, as if the subject was something political or significantly more grave than a story about a dishwasher.
“I am not a supporter of what they told you,” he said in an angry voice. “It’s really upsetting me.” (I calmed him down a little, I think, when I told him that I myself uninstalled the broken dishwasher and installed the new one myself, because COVID.)
Zamir said that there are no plans to charge for its academy courses, nor to tie people into signing up with Nana to work once they take the courses. The fact that it provides a lot of inbound jobs attracts enough turnover — between 40% and 60% of those taking courses stay on to work when they took in-person classes, and for now the online figures are between 15% and 35%.
“It’s still early days,” he said, “but we’re finding the take up impressive… Most want to participate in the marketplace.” He says that there are other call-out services where they could register, but the tech that Nana has built makes its system more efficient, and that means better returns.
All of this has played well with those who have become Nana’s investors. People like Jeff Weiner — who in his time as CEO of LinkedIn led the company to acquire Lynda as part of a bigger emphasis on the importance of skills training and education — see the opportunity and need to provide an equivalent platform not just for knowledge workers but those who have more manual jobs, too.
“We are excited by Nana’s vision of providing training, access and opportunity for rewarding, satisfying work while also filling a critical gap in our economy,” said Shripriya Mahesh of Spero Ventures, in a statement. “Nana has created a new, scalable approach to giving people the agency, tools and support systems they need to build new skills and pursue fulfilling work opportunities.”
The round was oversubscribed in the end, and Nana shouldn’t find it too hard to raise again if it sticks to its plan and the market continues to grow as it has. That does not seem to be the motivation for Zamir, though.
“We just think it’s super important to build Nana for the people,” he said.
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As the COVID-19 pandemic continues to force teachers, students and parents to adopt new technologies, edtech’s total addressable market has massively grown in the last several months. The shift has urged venture capitalists to pour money into the sector accordingly, ushering a number of startups into the unicorn club.
But maturation doesn’t just mean bigger checks and high-flying unicorns — it also brings exits.
Edtech M&A activity is buzzier than usual: In the last week, Course Hero, a startup that sells Netflix-like subscriptions to students looking for learning and teaching content, bought Symbolab, an artificial intelligence-powered calculator. Saga Education, a tutoring nonprofit backed by Comcast, the Bill & Melinda Gates Foundation and others, acquired math software platform Woot Math. We also saw PowerSchool, which sells a suite of software services to manage schools, scoop up Hoonuit, a data management and analytics tool for educators. Finally, K-12 curriculum company Discovery Education bought K-5 science and stem curriculum upstart Mystery Science.
It’s a lot of news in a short period of time. Luckily, these consolidations offer some directional guidance regarding where some edtech businesses think the future of their industry is headed.
Content, to an extent, is commoditized. If you can find a free tutorial on Youtube or Khan Academy, buy a subscription to an edtech platform that offers the same solution? The commodification of education is good for end-users and is often why startups have a freemium model as a customer acquisition strategy. To convert free users into paying subscribers, edtech startups need to offer differentiated and targeted content.
The Course Hero and Mystery Science deals show us that edtech businesses are hungry for personalized, targeted content. Course Hero’s acquisition of Symbolab was essentially a deal for more than a decade’s worth of data that captured which math questions students found hardest.
Symbolab is a math calculator that is set to answer over 1 billion questions this year. With each answer, Symbolab adds information to its algorithm regarding students’ most common pain points and confusion. Course Hero, in contrast, is a broader service that focuses on Q&A from a variety of subjects. CEO Andrew Grauer says Symbolab’s algorithm isn’t something that Course Hero, which has been operating since 2006, can drum up overnight. That’s precisely why he “decided to buy, instead of build.”
“It made a lot of sense to move fast enough so it wouldn’t take up multiple years to get this technology,” Grauer said. The deal was made as big companies get in the Q&A game too, he noted. Google acquired homework helper app Socratic in 2019 and Microsoft built Microsoft Solver in the same year.
Discovery Education, a curriculum provider for K-12 classrooms, acquired San Francisco-based K-5 STEM curriculum provider, Mystery Science. Discovery Education has launched a series of other products focused on science education, including Discovery Education Experience, the Science Techbook series and STEM Connect. However, Mystery Science is largely focused on offering a creative digital solution to science education. The programming, a mix of videos, prompts and projects, cover a range of questions such as, “Where do rivers flow?” and “Could a volcano pop up where you live?” for young students.
Mystery Science CEO and founder Keith Schact explained how his product focuses on kids and educators, while Discovery Education focuses on educators and districts, making the deal feel like a “natural marriage.” Even as edtech goes directly to consumers, Schact remains bullish on the role that institutions play in true adoption of technology.
“You can go straight to teachers and get a certain market share,” he said. “But the institutions still do have a big role.” The founder likened the dynamic to the state of media: With the rise of blogs, you can publish directly and reach an engaged audience, but writers who want a bigger positioning tend to join larger platforms to grow their overall reach. Edtech is the same, in that some startups need an official sign-off from schools before they can reach venture-scale returns.
According to a source familiar with the transaction, Mystery Science was sold for $175 million after only raising $4 million in venture financing.
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Former Apple software engineer and designer Ken Kocienda, whose work included the original iPhone and the development of touchscreen autocorrect, has created his first iOS app, Up Spell. The fast-paced, fun word game challenges users to spell all the words you can in two minutes and uses a lexicon of words Kocienda built to allow for the inclusion of proper names. A portion of app revenues are also being donated to a local food bank, so you can help give back while relieving stress through gaming.
Kocienda says he had never before made a standalone iOS app.
When he worked at Apple, all the code he wrote was integrated into a bigger iOS release. So when Kocienda got the idea to develop a game, he looked to obvious sources of inspiration: his past experiences with typing, keyboards and autocorrect.
The game’s lexicon was built first with the New General Service List to serve as its foundation. This was followed by weeks of writing small programs to generate lists of candidate words — like, by adding an “S” to existing words to pluralize them, for example. And hours more were spent scanning lists to choose the words to include.
Kocienda says he also wanted the game to be fun, and personally found it frustrating that other word games wouldn’t allow proper names.
“Many games accept words like PHARAOH and PYRAMID, but not NILE or EGYPT. This doesn’t make sense to me. These are all words!,” he says.
So he built his own list that includes thousands of proper names, then added to it more slang and contractions to expand it even further. That means you can spell a word like S’MORES, which involves an apostrophe, for example.
Image Credits: Up Spell
While support for a variety of words, including proper names, is the key way the gameplay differentiates from rivals, the app’s business model is also one that’s becoming less common these days: it’s a one-time paid download.
The app is a $1.99 download that lets you pay once to play forever. Today, many games in this same space use a freemium model where the app download itself is free, but you’re then nagged with in-app hooks to buy coins or tokens to advance gameplay or unlock certain features.
Kocienda’s decision to forgo this model was intentional, he explains.
“I made Up Spell a two-minute game without much in the way of gameplay gimmicks,” says Kocienda. “You just spell words. 2020 has been a rough year for everyone, and sometimes taking out two minutes to think about nothing but spelling a few words is just the kind of right kind of stress reliever,” he adds. “I hope Up Spell brings people a little unexpected happiness to their 2020.”
Also of note, 25 cents per download is being donated to the San Francisco-Marin Food Bank, which works to get food to vulnerable people in Kocienda’s area.
If all goes well, Up Spell may be followed by other games with a similar model, like a sounds or color-matching games, for instance.
The new game is a one-time paid download on the App Store.
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