utilities
Auto Added by WPeMatico
With $20M A round, Promise brings financial flexibility to outdated government and utility payment systems
The last year has been one of financial hardship for billions, and among the specific hardships is the elementary one of paying for utilities, taxes and other government fees — the systems for which are rarely set up for easy or flexible payment. Promise aims to change that by integrating with official payment systems and offering more forgiving terms for fees and debts people can’t handle all at once, and has raised $20 million to do so.
When every penny is going toward rent and food, it can be hard to muster the cash to pay an irregular bill like water or electricity. They’re less likely to be shut off on short notice than a mobile plan, so it’s safer to kick the can down the road… until a few bills add up and suddenly a family is looking at hundreds of dollars of unpaid bills and no way to split them up or pay over time. Same with tickets and other fees and fines.
The CEO and co-founder of Promise, Phaedra Ellis-Lamkins, explained that this (among other places) is where current systems fall down. Unlike buying a TV or piece of furniture, where payment plans may be offered in a single click during online checkout, there frequently is no such option for municipal ticket payment sites or utilities.
“We have found that people struggling to pay their bills want to pay and will pay at extremely high rates if you offer them reminders, accessible payment options and flexibility. The systems are the problem — they are not designed for people who don’t always have a surplus of money in their bank accounts,” she told TechCrunch.
“They assume for example that if someone makes their first payment at 10 PM on the 15th, they will have the same amount of money the next month on the 15th at 10 PM,” she continued. “These systems do not recognize that most people are struggling with their basic needs. Payments may need to be weekly or split up into multiple payment types.”
Even those that do offer plans still see many failures to pay, due at least partly to a lack of flexibility on their part, said Ellis-Lamkins — failure to make a payment can lead to the whole plan being cancelled. Furthermore, it may be difficult to get enrolled in the first place.
“Some cities offer payment plans but you have to go in person to sign up, complete a multiple-page form, show proof of income and meet restrictive criteria,” she said. “We have been able to work with our partners to use self-certification to ease the process as opposed to providing tax returns or other documentation. Currently, we have over a 90% repayment rate.”
Promise acts as a sort of middleman, integrating lightly with the agency or utility, which in turn makes anyone owing money aware of the possibility of the different payment system. It’s similar to how you might see various payment options, including installments, when making a purchase at an online shop.
Image Credits: Promise
The user enrolls in a payment plan (the service is mobile-friendly because that’s the only form of internet many people have) and Promise handles that end of it, with reminders, receipts and processing, passing on the money to the agency as it comes in — the company doesn’t cover the cost up front and collect on its own terms. Essentially it’s a bolt-on flexible payment mechanism that specializes in government agencies and other public-facing fee collectors.
Promise makes money by subscription fees (i.e. SaaS) and/or through transaction fees, whichever makes more sense for the given customer. As you might imagine, it makes more sense for a utility to pay a couple bucks to be more sure of collecting $500, than to take its chance on getting none of that $500, or having to resort to more heavy-handed and expensive debt collection methods.
Lest you think this is not a big problem (and consequently not a big market), Ellis-Lamkins noted a recent study from the California Water Boards showing there are 1.6 million people with a total of $1 billion in water debt in the state — one in eight households is in arrears to an average of $500.
Those numbers are likely worse than normal, given the immense financial pressure that the pandemic has placed on nearly all households — but like payment plans in other circumstances, households of many incomes and types find their own reason to take advantage of such systems. And pretty much anyone who’s had to deal with an obtusely designed utility payment site would welcome an alternative.
The new round brings the company’s total raised to over $30 million, counting $10 million it raised immediately after leaving Y Combinator in 2018. The funding comes from existing investors Kapor Capital, XYZ, Bronze, First Round, YC, Village, and others.
Powered by WPeMatico
Gridware is building early-detection sensors for power grid failures and wildfires
Like corporate financial accounting, the power grid never draws headlines when things are going well. No journalist writes “The power remains on,” or discusses the extensive work it takes to maintain the grid. Instead, it takes a record-breaking ice wave to knock out power to one of the largest states in America for it to start garnering front-page coverage, or perhaps massive wildfires in America’s most populous state like the Camp Fire in California in 2018.
Power grids are going to be in the news more and more in the coming years as global climate change intensifies storm activity and grids come under increasingly harsh strain. As my colleague Jon Shieber wrote yesterday, “Whether it’s heavily regulated markets like California or a free market like Texas, current policy can’t stop the weather from wreaking havoc and putting people’s lives at risk.” The grid is at the center of one of the toughest challenges facing us this century.
What’s needed are better sensors and tech for identifying the source of outages — and also preventing them in the first place. With millions of power poles and hundreds of thousands of miles of transmission wires scattered across the United States, how can utilities reliably verify the quality of their systems? How can they do that in an efficient way to avoid rate increases on users?
Gridware, which is in the current batch of Y Combinator, is one company taking a shot at this critical need. Its approach is to use a small, sensor-laden box that can be installed to a power pole with just four screws. Gridware’s package contains microphones and other sensors to sense the ambient environment around a power pole, and it uses on-board AI/ML processing to listen for anomalies and report them to the relevant managers as appropriate.
It’s like “a guard standing next to the pole, listening to it, watching over it,” Tim Barat, CEO and co-founder, said, likening the box to a Fitbit for a power pole. When a tree branch breaks and cuts through a line, there’s “no way to detect them unless you are right next to the fault.” With Gridware, it’s “not the right place at the right time but the right place all the time,” he said.
What makes the founding team compelling here is the backgrounds of some of the company’s founders. Barat worked as a power pole worker himself in the field, evaluating equipment and searching for problems. “Every time we go up a pole, we hit it with a hammer, which tells us whether there is termite damage, etc. [ … and] that is still how inspectors investigate a pole,” he noted.
Barat eventually migrated to University of California, Berkeley, where he was mentored by Prabal Dutta, an electrical engineering professor who also joined the company early on as a co-founder. Dutta’s worked has focused on “industrial cyber-physical systems,” and he continues to research industrial control systems through digital interfaces via the iCyPhy center.
Gridware’s team clockwise from top left: Tim Barat, Abdulrahman Bin Omar, Dr. Prabal Dutta, Addison Chan, Riley Lyman, and Hall Chen. Image Credits: Gridware
Barat also met Abdulrahman Bin Omar, who had worked for a number of years in the energy sector, in a class that eventually had a one-week hiatus due to California wildfires. The two began working together in 2019, joining Berkeley’s startup incubator Citrus Foundry in 2020. The trio eventually linked up with co-founders Hall Chen and Riley Lyman as well, and snagged a $150,000 state grant from the California Energy Commission via the CalSEED program.
Today, the startup has seven employees, and it’s currently in talks with utility grids of all sizes about deploying its product. Grids can be very slow to adopt new technology with very long testing and sales cycles, but there might just be an opportunity for the company to accelerate those normal timelines given the extensive and visible power outages we have witnessed the past few years. We need to “transition our grid to face the challenges of the new century,” Barat said.
Powered by WPeMatico
The new electric utilities
An ideal electric utility costs less, is good for the planet and reduces the chances of losing power completely. And it doesn’t ask us to give up creature comforts like AC. New utilities are enabled by new technologies and business models, not fuels. Photomyne grabs $2.6 million to bring your old photos online
If you have albums and shoeboxes stuffed with old photos, a startup called Photomyne wants to help you scan those photos, in order to bring them online where they can be saved and shared. Now the Tel Aviv-based company has raised $2.6 million in seed funding to continue to grow its business, which today is closing in on its first million users, over half of whom are paying customers.… Read More
Powered by WPeMatico
Portal Lets You Use Your iPhone As A Wireless Thumbdrive
Portal, a recently launched Android app that lets you move large files between your computer and your smartphone via your Wi-Fi connection, has today made its way to iOS. The new version offers a better alternative to something like Apple’s AirDrop, for example, as it lets you transfer as many files as you’d like, with no file size limits, while also not counting against your data… Read More
Powered by WPeMatico