sarah cannon
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Grid AI, a startup founded by the inventor of the popular open-source PyTorch Lightning project, William Falcon, that aims to help machine learning engineers work more efficiently, today announced that it has raised an $18.6 million Series A funding round, which closed earlier this summer. The round was led by Index Ventures, with participation from Bain Capital Ventures and firstminute.
Falcon co-founded the company with Luis Capelo, who was previously the head of machine learning at Glossier. Unsurprisingly, the idea here is to take PyTorch Lightning, which launched about a year ago, and turn that into the core of Grid’s service. The main idea behind Lightning is to decouple the data science from the engineering.
The time argues that a few years ago, when data scientists tried to get started with deep learning, they didn’t always have the right expertise and it was hard for them to get everything right.
“Now the industry has an unhealthy aversion to deep learning because of this,” Falcon noted. “Lightning and Grid embed all those tricks into the workflow so you no longer need to be a PhD in AI nor [have] the resources of the major AI companies to get these things to work. This makes the opportunity cost of putting a simple model against a sophisticated neural network a few hours’ worth of effort instead of the months it used to take. When you use Lightning and Grid it’s hard to make mistakes. It’s like if you take a bad photo with your phone but we are the phone and make that photo look super professional AND teach you how to get there on your own.”
As Falcon noted, Grid is meant to help data scientists and other ML professionals “scale to match the workloads required for enterprise use cases.” Lightning itself can get them partially there, but Grid is meant to provide all of the services its users need to scale up their models to solve real-world problems.
What exactly that looks like isn’t quite clear yet, though. “Imagine you can find any GitHub repository out there. You get a local copy on your laptop and without making any code changes you spin up 400 GPUs on AWS — all from your laptop using either a web app or command-line-interface. That’s the Lightning “magic” applied to training and building models at scale,” Falcon said. “It is what we are already known for and has proven to be such a successful paradigm shift that all the other frameworks like Keras or TensorFlow, and companies have taken notice and have started to modify what they do to try to match what we do.”
The service is now in private beta.
With this new funding, Grid, which currently has 25 employees, plans to expand its team and strengthen its corporate offering via both Grid AI and through the open-source project. Falcon tells me that he aims to build a diverse team, not in the least because he himself is an immigrant, born in Venezuela, and a U.S. military veteran.
“I have first-hand knowledge of the extent that unethical AI can have,” he said. “As a result, we have approached hiring our current 25 employees across many backgrounds and experiences. We might be the first AI company that is not all the same Silicon Valley prototype tech-bro.”
“Lightning’s open-source traction piqued my interest when I first learned about it a year ago,” Index Ventures’ Sarah Cannon told me. “So intrigued in fact I remember rushing into a closet in Helsinki while at a conference to have the privacy needed to hear exactly what Will and Luis had built. I promptly called my colleague Bryan Offutt who met Will and Luis in SF and was impressed by the ‘elegance’ of their code. We swiftly decided to participate in their seed round, days later. We feel very privileged to be part of Grid’s journey. After investing in seed, we spent a significant amount with the team, and the more time we spent with them the more conviction we developed. Less than a year later and pre-launch, we knew we wanted to lead their Series A.”
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The venture world is swimming in capital these days, and the flood doesn’t appear to be abating.
That’s changing the game for venture capitalists and their firms, which transformed from solo practitioners focused on one stage and a single geographical area to covering all startups in all geos in all industries in just a handful of years.
One firm that has navigated those changes for decades is Index Ventures, one of the first funds to launch in Europe that has evolved into a multi-stage firm in recent years. The firm last raised a total of $2 billion this past April to continue doubling down on all the deals springing up across the world.
This week on Extra Crunch Live, I interviewed Nina Achadjian and Sarah Cannon, two SF-based partners at Index, to discuss what they are seeing in the market, how VC fundraises have changed and continue to change and how they are adapting to the rise of rolling funds and other new seed vehicles. This was the first time that the two came together for a panel, and our conversation was a real blast.
Here’s an edited and condensed version of the conversation, with highlights of the best insights from the panel.
TechCrunch: September is traditionally a time for fundraises to kick off for the fall, but in this COVID-19 world, everything is different. Who is fundraising right now and what do you see going on?
Nina Achadjian: Well, there are two things. One, there was an incredible pull from the market for technology tools. So many businesses that had put off buying technology or investing in technology really all of a sudden found themselves in a digitally-first world or a digital-only world and therefore, there was a massive pull for technology products. It’s the reason why companies like Shopify and others in the public markets have had just amazing, record quarters.
The second thing is, in venture when we raise these funds, we have a certain time period to deploy them, usually anywhere from two years to five years. So for us as investors, it’s not easy to just sit on the sidelines and wait till things sort themselves out.
So actually, a lot of venture investors have piggybacked off of this incredible pull from the market side and have been investing, I would say, at the same pace, or even a faster pace than we were before.
Are those paces the same for all stages?
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The venture capital world is rapidly changing, and thank heavens we have two of the smartest VCs on the future of investing, productivity tools and remote work joining us today to make sense of all the noise.
On Extra Crunch Live today, Sarah Cannon and Nina Achadjian, two VC partners based in Index Ventures’ SF office, will talk about these subjects and more. Plus, we will be taking questions from the audience, so come prepared. Login details are below the fold for EC members, and if you don’t have an Extra Crunch membership, click through to sign up.
As I wrote when we announced the slate last week:
First, we have Nina Achadjian, who officially joined Index Ventures several years ago out of the firm’s SF office and was promoted to partner earlier this year. Achadjian has been searching for and investing into some of the most interesting new collaborative companies that are rebuilding the enterprise from the ground up (which happens to have been a brilliant move given our remote-work world this year). Her investments include such companies as product-management service productboard, sales performance platform Gong, executive assistant marketplace Double and real estate services platform ServiceTitan.
Second, we have Sarah Cannon, who joined Index in 2018 from CapitalG, and who is also based officially out of SF. Cannon made a splash earlier this year with her bullish bet on note-taking and team productivity wunderkind Notion, and has also invested in productivity tools like collaborative presentation software Pitch and smart team messaging app Quill.
Join us today at 2 p.m. EDT/11 a.m. PDT/6 p.m. GMT.
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The novel coronavirus pandemic has rapidly moved companies into a remote-first world.
Nearly all of the world’s largest events have been canceled, put on pause or pivoted to online-only. In the tech world, event cancellations thus far have included SXSW, GDC, Mobile World Congress, Google I/O, Facebook F8, E3 and others.
As more and more hosts consider staging fully remote events as possible alternatives, we decided to take a deeper look into the venture-backed startups focused on supporting large-scale virtual gatherings, like Hopin and Run The World. To further understand the impact of COVID-19, we asked five leading VCs who have invested in or have knowledge of startups focused on remote events to update us on the state of the market and to share where they see opportunity in the sector:
Which trends in remote events/conferencing excite you the most from an investing perspective?
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Slack created a new solution for workplace communication, one copied by many, even Microsoft. But the product, which is meant to help individuals and businesses collaborate, has been critiqued for sending too many notifications, with some claiming it’s sabotaged workplace productivity.
Quill, a startup led by Ludwig Pettersson, Stripe’s former creative director and design aficionado, claims to offer “meaningful conversations, without disturbing your team.” The company has raised a $2 million seed round led by Sam Altman with participation from General Catalyst, followed by a $12.5 million Series A at a $62.5 million valuation led by Index Ventures partner and former Slack board observer Sarah Cannon, TechCrunch has learned.
Quill and Cannon declined to comment.
The company, based in San Francisco, has created a no-frills messaging product. Still in beta, Quill plans to encourage fewer, more focused conversations with a heavy emphasis on threads, sources tell TechCrunch . The product is less of a firehose than Slack, says former Y Combinator president Altman, where one can get stuck for extended periods of time filtering through direct messages, threads and channels.
“It’s relentlessly focused on increasing the bandwidth and efficiency of communication,” Altman tells TechCrunch. “The product technically works super well–it surfaces the right information in the feed and it’s pretty intelligent about how it brings the right people into conversations.”
Pettersson previously worked with Altman at his current venture, OpenAI, a research-driven business focused on development that steers artificial intelligence in a “friendlier” direction. Pettersson was a member of the company’s technical staff in 2016 and 2017, creating OpenAI’s initial design.
Index Ventures, for its part, appears to be doubling down on the growing workplace communications software category. The firm first invested in Slack, which completed its highly-anticipated direct listing earlier this year, in 2015. Slack went on to raise hundred millions more, reaching a valuation of over $7 billion in 2018.
Since going public, Slack has struggled to find its footing on the public markets, in large part due to the growing threat of Microsoft Teams, the software giant’s Slack-like product that debuted in 2016. Quickly, Microsoft has gobbled up market share, offering convenient product packages including beloved tools used by most businesses. As of July, Teams had 13 million daily active users and the title of Microsoft’s fastest-growing application in its history. Slack reported 12 million daily active users earlier this month.
Startups like Quill pose a threat to Slack, too. It created the playbook for workplace chat software and proved the massive appetite for such tools; companies are bound to iterate on the model for years to come.
Quill is also backed by OpenAI’s chairman and chief technology officer Greg Brockman and Elad Gil, a former Twitter executive and co-founder of Color Genomics.
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