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About one-fourth of the startups in Y Combinator’s summer batch had a female founder. Not the most disappointing statistic if you consider this: Companies with at least one female founder have raised only about 11% of venture capital funding in the U.S. in 2019, according to PitchBook. Companies with female founders exclusively have raised just 3%.
There is so much room for improvement.
To close the funding gap, programs tailored to female entrepreneurs are working tirelessly to mentor and incubate upstarts in hopes of impressing venture capitalists. Ready, Set, Raise, an accelerator program built for women, by women, is amongst the new efforts to help female and non-binary founders raise more dollars, or, at the very least, build relationships with investors.
The accelerator program, created by the Seattle-based network of startup founders and investors called the Female Founders Alliance, is today announcing its second batch of companies, a group that includes a sextech business, an AI-powered tool for podcasters and a line of workwear created for women who work on farms, construction sites and factory floors.
Ready, Set, Raise has partnered with Microsoft for Startups to provide entrepreneurs $120,000 in Azure credits, as well as technical and business mentoring from executives of the Redmond-based software giant. Other new partners include Brex and Carta, two well-funded companies that plan to lend the support of their executives to teach entrepreneurs about startup finance, valuation and fundraising terms.
“Both FFA and Microsoft recognize a major lapse in opportunities given to women and non-binary founders,” writes Ian Bergman, a managing director of Microsoft for Startups, in a statement. “We look forward to our continued work together to promote this necessary shift in the VC landscape.”
“My experience fundraising was undeniably shaped by the fact that I am a woman, and at the time was a new mom,” Feinzaig, who previously founded an edtech startup, told Seattle Business Magazine earlier this year. “A year later, I was about to give up. Instead, I started a Facebook group, including all of the founders and tech startup leaders I knew. It was the group that I needed, made up of people who knew exactly what I was going through. That’s how the Female Founders Alliance was born.”

FFA’s Ready, Set, Raise provides its companies childcare throughout the six-week program, in which companies work one-on-one with experienced coaches ahead of a demo day that will take place on October 16th.
Here’s a look at Ready, Set, Raise’s sophomore class of startups:
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Years ago, a mobile app for email launched to immediate fanfare. Simply called Mailbox, its life was woefully cut short — we’ll get to that. Today, its founders are back with their second act: An AI-enabled assistant called Navigator meant to help teams work and communicate more efficiently.
With the support of $12 million in Series A funding from CRV, #Angels, Designer Fund, SV Angel, Dropbox’s Drew Houston and other angel investors, Aspen, the San Francisco and Seattle-based startup behind Navigator, has quietly been beta testing its tool within 50 organizations across the U.S.
“We’ve had teams and research institutes and churches and academic institutions, places that aren’t businesses at all in addition to smaller startups and large four-figure-person organizations using it,” Mailbox and Navigator co-founder and chief executive officer Gentry Underwood tells TechCrunch. “Pretty much anywhere you have meetings, there is value for Navigator.”

Mailbox, a mobile email management system, was responsible for many of the features both Apple Mail and Gmail use today, including swipe to archive or delete.
It launched in 2013, as mentioned, to quick success. At the time, Apple’s App Store was much newer and there were few available options for mobile email, especially ones that prioritized design and efficiency, as Mailbox did.
As a result, Mailbox, created by a venture-capital backed Palo Alto startup by the name of Orchestra, exploded. Mere weeks after its launch, it attracted 1.25 million people to its waitlist. Shortly after that, it hit another milestone: It was acquired.
Dropbox paid $100 million to bring Mailbox and its 13 employees on board, including Underwood and his co-founder Scott Cannon. Dropbox CEO Drew Houston, still years away from leading his company through a successful IPO, told The Wall Street Journal his plan was to “help Mailbox reach a much different audience much faster.”
“That was a very special time,” Underwood said. “There were still a lot of opportunities for improvements for how email was being used on these tiny little devices.”
Two years later, in 2015, the worst happened. Dropbox made the unpopular decision to shut down Mailbox, despite its cult following, in order to focus more on its own core product and the development of other new productivity tools.
“That was a hard time for us and Mailbox users,” Underwood said. “It was a tough decision for Dropbox as well … Ultimately, Mailbox didn’t meet the focus criteria for Dropbox and I understood the decision. It was in every sense their right to do with it what they thought was best.”
About a year later, in 2016, the Mailbox team had licked their wounds and begun work on an entirely new venture.
Much like Slack disrupted the frequency and efficiency of workplace communication, Navigator hopes to reimagine meetings, an essential element of business that’s often dreaded the most.
“What we saw with Mailbox was that really great processes were an effective way to help teams be creative; yet, lots of teams don’t make use of great processes,” Underwood explained. “After Mailbox, we really wanted to find a way to help teams be more effective and Navigator is a teamwork assistant whose job is really to help teams basically make the most of working together.”
According to Doodle’s 2019 state of the meeting report, 71% of working professionals lose time every week because of unnecessary meetings, most often because those meetings are ineffective or poorly organized. This is a cause of frustration and a loss of time and money; in fact, Doodle estimates nearly $400 billion is lost annually as a consequence of botched meetings.
Still, meetings aren’t going away. Workers in corporate America spend roughly five hours per week in meetings and another four hours per week preparing for meetings. Managers spend double that. There’s a big opportunity here to leverage technology to improve, even eliminate, this pain point.
The video conferencing business Zoom, for example, is hyperfocused on refining the video meeting, specifically for the remote worker. Its recent initial public offering and subsequent performance on the public markets has proven its value and the demand for technology that makes doing business easier. Slack’s direct listing today, which saw the business tripling in value at its debut, is further proof of the market opportunity for productivity tech.
Similar to Slack, which began as an artful online game, Aspen has prioritized design in building Navigator, the first of many products it plans to launch.
“We approached the problem of helping teams work together as a design problem,” Underwood said. “We tried over 200 different prototypes of different ways to encode and distribute best practices within a team. The concept of a virtual teammate was the one that finally began to show signs of working.”
Underwood says nothing was directly imported from Mailbox, aside from a dedication to human-centered design.
“We are solving a different problem but the way we are going about solving it, in trying to build something that resonates with people, is certainly consistent,” he said. “As a team, we seem to gravitate toward these ubiquitous, uncomfortable, painful problems, like email and meetings, and try to build solutions that transform people’s experiences of them.”

Navigator focuses on team meetings and one-on-ones, requesting information from meeting attendees before and after the meeting takes place.
First, it learns the topic of the meeting from participants and organizes them into a clear agenda complete with discussion topics. During the meeting, workers can use Navigator to quickly capture key takeaways that are later shared with every member of the meeting afterward. Later, the assistant checks in with attendees to learn whether they’ve completed their tasks.
“It’s sort of like a chief of staff focused on helping meetings run effectively,” Underwood said. “It helps people show up. They feel invited and welcome and like their voice is valued, which changes how it feels for them to enter that room.”
Currently, Navigator works with Google’s G suite, Microsoft’s Office 365 and Slack. Soon, it will offer task integration with Asana, Jira, Trello and others.
For now, it comes without a cost as the team continues to work out bugs with its first cohort of customers. Underwood says later this year they will begin to incorporate subscription-based feeds for the product.
“Navigator is another teammate, not another tool,” Underwood said. “It’s about turning meetings from painful, expensive wastes of time, to effective, meaningful moments of deep collaboration. They have that potential. When done well, they can be exceedingly powerful.”
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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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Here’s an interesting by-product of the news today that Salesforce would be acquiring Tableau for $15.7 billion: the company is going to make Seattle, Wash. (home of Tableau) the official second headquarters of San Francisco-based Salesforce, putting the company directly in the face of tech giants and Salesforce frenemies Microsoft and Amazon.
“An HQ2, if you will,” Salesforce CEO Marc Benioff quipped right after he dropped the news during the press and analyst call.
HQ2, of course, is a reference to Amazon and its year-long, massively publicised, often criticised and ultimately botched search (it eventually cancelled plans to build an HQ in NYC, but kept Arlington) for its own second headquarters, which it also branded “HQ2.”
If real estate sends a message — and if you’ve ever seen Salesforce Tower in San Francisco, you know it does for this company — Salesforce is sending one here. And that message is: Hello, Microsoft and Amazon, we’re coming at you.
As we pointed out earlier today, there is a clear rivalry between Microsoft and Salesforce that first began to simmer in the area of CRM but has over time expanded to a wider array of products and services that cater to the needs of enterprise knowledge workers.
The most well-known of these was the tug-of-war between the two to acquire LinkedIn, a struggle that Microsoft ultimately won. Over the years, as both have continued to diversify their products to bring in a wider swathe of enterprise users, and across a wider range of use cases, that competition has become a little more pointed. (Indeed, here’s some perfect timing: just today, Microsoft expanded its business analytics tools.)
I’d argue that the competitive threat of Amazon is a little more remote. At the moment, in fact, the two work very closely: specifically in September last year, Amazon and Salesforce extended an already years-long deal to integrate AWS and Salesforce products to aid in enterprise “digital transformation” (one of Salesforce’s catch phrases).
Placing Salesforce physically closer to Amazon could even underscore how the two might work closer together in the future — not least because cloud storage is now a notably missing jewel in Salesforce’s enterprise IT crown as it squares up to Microsoft, which has Azure. (And it’s not just a Seattle thing. Google, which has Google Cloud Platform, acquired Tableau competitor Looker last week.)
On the other hand, you have to wonder about the longer-term trajectory for Salesforce and its ambitions. The Tableau deal takes it firmly into a new area of business that up to now has been more of a side-gig: data and analytics. Coming from two different directions — infrastructure for AWS and customer management for Salesforce — enterprise data has been a remote battleground for both companies for years already, and it will be interesting to see how the two sides approach it.
Notably, this is not Salesforce’s first efforts to lay down roots in the city. It established an engineering office in the city in 2017 and, as Benioff pointed out today, putting deeper roots into what he described as a “unique market with tremendous talent” will open up the company to tapping it even more.
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On the heels of Google buying analytics startup Looker last week for $2.6 billion, Salesforce today announced a huge piece of news in a bid to step up its own work in data visualization and (more generally) tools to help enterprises make sense of the sea of data that they use and amass: Salesforce is buying Tableau for $15.7 billion in an all-stock deal.
The latter is publicly traded and this deal will involve shares of Tableau Class A and Class B common stock getting exchanged for 1.103 shares of Salesforce common stock, the company said, and so the $15.7 billion figure is the enterprise value of the transaction, based on the average price of Salesforce’s shares as of June 7, 2019.
This is a huge jump on Tableau’s last market cap: it was valued at $10.79 billion at close of trading Friday, according to figures on Google Finance. (Also: trading has halted on its stock in light of this news.)
The two boards have already approved the deal, Salesforce notes. The two companies’ management teams will be hosting a conference call at 8am Eastern and I’ll listen in to that as well to get more details.
This is a huge deal for Salesforce as it continues to diversify beyond CRM software and into deeper layers of analytics.
The company reportedly worked hard to — but ultimately missed out on — buying LinkedIn (which Microsoft picked up instead), and while there isn’t a whole lot in common between LinkedIn and Tableau, this deal will also help Salesforce extend its engagement (and data intelligence) for the customers that Salesforce already has — something that LinkedIn would have also helped it to do.
This also looks like a move designed to help bulk up against Google’s move to buy Looker, announced last week, although I’d argue that analytics is a big enough area that all major tech companies that are courting enterprises are getting their ducks in a row in terms of squaring up to stronger strategies (and products) in this area. It’s unclear whether (and if) the two deals were made in response to each other, although it seems that Salesforce has been eyeing up Tableau for years.
“We are bringing together the world’s #1 CRM with the #1 analytics platform. Tableau helps people see and understand data, and Salesforce helps people engage and understand customers. It’s truly the best of both worlds for our customers–bringing together two critical platforms that every customer needs to understand their world,” said Marc Benioff, chairman and co-CEO, Salesforce, in a statement. “I’m thrilled to welcome Adam and his team to Salesforce.”
Tableau has about 86,000 business customers, including Charles Schwab, Verizon (which owns TC), Schneider Electric, Southwest and Netflix. Salesforce said Tableau will operate independently and under its own brand post-acquisition. It will also remain headquartered in Seattle, Wash., headed by CEO Adam Selipsky along with others on the current leadership team.
Indeed, later during the call, Benioff let it drop that Seattle would become Salesforce’s official second headquarters with the closing of this deal.
That’s not to say, though, that the two will not be working together.
On the contrary, Salesforce is already talking up the possibilities of expanding what the company is already doing with its Einstein platform (launched back in 2016, Einstein is the home of all of Salesforce’s AI-based initiatives); and with “Customer 360,” which is the company’s product and take on omnichannel sales and marketing. The latter is an obvious and complementary product home, given that one huge aspect of Tableau’s service is to provide “big picture” insights.
“Joining forces with Salesforce will enhance our ability to help people everywhere see and understand data,” said Selipsky. “As part of the world’s #1 CRM company, Tableau’s intuitive and powerful analytics will enable millions more people to discover actionable insights across their entire organizations. I’m delighted that our companies share very similar cultures and a relentless focus on customer success. I look forward to working together in support of our customers and communities.”
“Salesforce’s incredible success has always been based on anticipating the needs of our customers and providing them the solutions they need to grow their businesses,” said Keith Block, co-CEO, Salesforce. “Data is the foundation of every digital transformation, and the addition of Tableau will accelerate our ability to deliver customer success by enabling a truly unified and powerful view across all of a customer’s data.”
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Starbucks plans to double its store count in China to 5,000 in 2021 and Luckin, a one-year-old coffee startup, is matching up by aiming to reach 4,500 by the end of this year. Luckin’s upsized $651 million flotation has brought American investors’ attention to this potential Starbucks rival in China, where the Seattle giant controlled over half of the coffee market as late as 2017. But as soon as you make your first purchase with Luckin, you realize its ultimate goal may not be to topple Starbucks.
To get your caffeine intake from Luckin, the ordering process happens entirely on its app. First, you will decide how you want to fetch the drink: have it delivered within 30 minutes, pick it up at a nearby Luckin kiosk, or sit back and sip at one of its full-on cafes, or what it calls ‘relax stores.’
Say you’re tied up at the desk, you can input your location to check if you’re within Luckin’s delivery radius. Luckin has essentially built a vast coffee delivery network through its partnership with one of China’s biggest courier services SF Express, which dispatch staff to ferry the drinks on scoot fleets.
You then place the order, choosing from a range of drinks and customizing it — hot or cold, the amount of sugar and portions of creamer, the type of syrup flavor and the likes. When you get to the end, Luckin will ask you to pay via its app. If you’re a first-time user, you get a ‘first order free’ voucher, a common strategy for many Chinese consumer-facing apps to lure new users.
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Algorithmia, a Seattle-based startup that offers a cloud-agnostic AI automation platform for enterprises, today announced a $25 million Series B funding round led by Norwest Partners. Madrona, Gradient Ventures, Work-Bench, Osage University Partners and Rakuten Ventures also participated in this round.
While the company started out five years ago as a marketplace for algorithms, it now mostly focuses on machine learning and helping enterprises take their models into production.
“It’s actually really hard to productionize machine learning models,” Algorithmia CEO Diego Oppenheimer told me. “It’s hard to help data scientists to not deal with data infrastructure but really being able to build out their machine learning and AI muscle.”
To help them, Algorithmia essentially built out a machine learning DevOps platform that allows data scientists to train their models on the platform and with the framework of their choice, bring it to Algorithmia — a platform that has already been blessed by their IT departments — and take it into production.
“Every Fortune 500 CIO has an AI initiative but they are bogged down by the difficulty of managing and deploying ML models,” said Rama Sekhar, a partner at Norwest Venture Partners, who has now joined the company’s board. “Algorithmia is the clear leader in building the tools to manage the complete machine learning life cycle and helping customers unlock value from their R&D investments.”
With the new funding, the company will double down on this focus by investing in product development to solve these issues, but also by building out its team, with a plan to double its headcount over the next year. A year from now, Oppenheimer told me, he hopes that Algorithmia will be a household name for data scientists and, maybe more importantly, their platform of choice for putting their models into production.
“How does Algorithmia succeed? Algorithmia succeeds when our customers are able to deploy AI and ML applications,” Oppenheimer said. “And although there is a ton of excitement around doing this, the fact is that it’s really difficult for companies to do so.”
The company previously raised a $10.5 million Series A round led by Google’s AI fund. It’s customers now include the United Nations, a number of U.S. intelligence agencies and Fortune 500 companies. In total, more than 90,000 engineers and data scientists are now on the platform.
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In this section of my exploration into innovation in inclusive housing, I am digging into the 200+ companies impacting the key phases of developing and managing housing.
Innovations have reduced costs in the most expensive phases of the housing development and management process. I explore innovations in each of these phases, including construction, land, regulatory, financing, and operational costs.

This is one of the top three challenges developers face, exacerbated by rising building material costs and labor shortages.
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Greetings from Seattle, the land of Amazon, Microsoft, two of the world’s richest men and some startups.
I’m always surprised the Seattle startup ecosystem hasn’t grown to compete with the likes of Silicon Valley — or at least Boston and New York City — since the dot-com boom. Today, it’s the strongest it’s been due to the successes of companies like the newly minted unicorn Outreach, trucking business Convoy and, of course, the dog walking startup Rover. But the city still lags behind, failing to adopt the culture of entrepreneurship that defines San Francisco.
I spent a lot of time wondering why it hasn’t reached its full potential. Is it because Microsoft and Amazon pay their employees so well they don’t have the same urge to build something from the ground up? Is it a lack of access to capital? Is the city not attracting top talent? If you have thoughts, send them my way.
“We think part of the issue is a lack of capital and a lack of help,” Rover and Pioneer Square Labs co-founder Greg Gottesman told TechCrunch earlier this year. “If we can provide a little bit of both of those things, we can really put Seattle where it deserves to be, should be and will be.”
Despite its shortcomings, there is still some action in the city I want to highlight this week. A same-day delivery business, Dolly, is on the rise. The startup told me on Thursday it had raised a $7.5 million round from Unlock Venture Partners, Maveron and Jeff Wilke, the chief executive officer of Amazon Worldwide Consumer. Maveron, if you remember, is the VC fund co-founded by Starbucks founder Howard Schultz.
In other Seattle news, Madrona Venture Group, a well-regarded fund, raised an additional $100 million this week. Typically, Madrona focuses on companies based in the Pacific Northwest, but this fund will deploy capital throughout the entire U.S. Hmmm, that’s not necessarily a good sign for Seattle founders, but great progress for the ecosystem nonetheless.
If you’re interested in learning more about Seattle tech, I’ve covered it a bit because it’s my hometown! Start with this story, which dives deep into a Seattle accelerator that’s working hard to encourage entrepreneurship in the city. Alright, on to other news.
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WeWork: The co-working giant now known as The We Company submitted confidential IPO documents to the SEC, the company confirmed in a press release Monday. Is this the next massive startup win or a house of cards waiting to be toppled by the glare of the public markets? TechCrunch’s Danny Crichton investigates.
Slack: The business is in its final steps toward a much-anticipated direct listing, with one source telling TechCrunch the listing will be complete within 45 days. The WSJ reported this week that Slack will make an online presentation to potential shareholders on May 13. This week, we dug deep into Slack’s S-1 and decided to evaluate just how well the tech press, us included, did in covering the company. For the most part, the tech press did decently well, except for one curious, $162 million gap.
Uber: Finally! That ride-hailing company is going public next week. That latest news? Uber co-founder Travis Kalanick won’t be ringing the opening bell. Uber would not be where it is today without Kalanick, but him being there would surely be a reminder of Uber’s rocky past.
Beyond Meat: Shares of the company surged up 135 percent in their market opener last week, valuing the company as high as $3.52 billion. Volatility was so high on the company’s stock that the Nasdaq had to pause trading of “BYND” shares.
Ofo has run into its fair share of issues, laying off hundreds of workers, shutting down its international division and more. Now, you can buy a piece of the startup’s history.
Now you can buy a piece of startup history… Ofo bikes for ~$60 https://t.co/LLJbDOXm0C
— Jon Russell (@jonrussell) April 29, 2019
In other micro-mobility news, Lyft’s head of scooter & bikes Liam O’Connor, who was hired to help transportation company Lyft build its bike and scooter operations, has left after seven months with the newly-public company. TechCrunch’s Ingrid Lunden has the scoop. Plus, Bird, the electric scooter unicorn doing its best to overcome regulatory barriers, has made its way back to San Francisco. Bird is using its business license in San Francisco to introduce monthly personal rentals in the city. The program enables people to rent a scooter for $24.99 a month with no cap on the number of rides. We’ll how that goes.
For some reason, people are giving Magic Leap more money. The company has secured another $280 million in a deal with Japan’s largest mobile operator, Docomo. Do you know what that means? The developer fo AR/VR headsets has raised a total of $2.6 billion. We’re just as confused as you.
Brand new venture capital funds:
Unshackled Ventures raised $20 million.
Exclusive: @UnshackledVC has a new $20M pre-seed fund to invest only in immigrants. Why? Because immigrants are “inherently more entrepreneurial:” https://t.co/ZLiZ1UczJV
— Kate Clark (@KateClarkTweets) May 2, 2019
Jungle Ventures closed on $175 million.
And Toyota AI Ventures launched a $100 million fund.
I have the inside story on Menlo Ventures early Uber stake and TechCrunch’s Connie Loizos goes deep with early Uber backer Bradley Tusk.
This week, we offer TechCrunch Extra Crunch subscribers exclusive tips on building extraordinary teams. Plus, the final piece in TechCrunch’s Greg Kumparak’s series on Niantic, the fast-growing developer of Pokemon Go. If you recall, we’ve captured much of Niantic’s ongoing story in the first three parts of our EC-1, from its beginnings as an “entrepreneurial lab” within Google, to its spin-out as an independent company and the launch of Pokémon GO, to its ongoing focus on becoming a platform for others to build augmented reality products upon.
If you enjoy this newsletter, be sure to check out TechCrunch’s venture-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and TechCrunch’s Danny Crichton chat about updates at the Vision Fund, Cheddar’s big exit and more of this week’s headlines.
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The microbiome testing service uBiome has placed its founders and co-chief executives, Jessica Richman and Zac Apte, on administrative leave following an FBI raid on the company’s offices last week.
The company’s board of directors have named John Rakow, currently the company’s general counsel, as its interim chairman and chief executive, the company said in a statement.
Directors of the company are also conducting an independent investigation into the company’s billing practices, which is being overseen by a special committee of the board.
It was only last week that the FBI went to the company’s headquarters to search for documents related to an ongoing investigation. What’s at issue is the way that the company was billing insurers for the microbiome tests it was performing on customers.
“As interim CEO of uBiome, I want all of our stakeholders to know that we intend to cooperate fully with government authorities and private payors to satisfactorily resolve the questions that have been raised, and we will take any corrective actions that are needed to ensure we can become a stronger company better able to serve patients and healthcare providers,” Rakow said in a statement.
”My confidence is based on the significant clinical evidence and medical literature that demonstrates the utility and value of uBiome’s products as important tools for patients, health care providers and our commercial partners.” added Mr. Rakow.
It’s been a rough few weeks for consumer companies working on developing microbiome testing services and treatments based on those diagnosis. In addition to the FBI raid, the Seattle-based company, Arivale, was forced to shut down its “consumer program” after raising more than $50 million from investors, including Maveron, Polaris Partners and ARCH Venture Partners.
UBiome is backed by investors including Andreessen Horowitz, OS Fund, 8VC, Y Combinator, DNA Capital, Crunchfund, StartX, Kapor Capital, Starlight Ventures and 500 Startups.
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