All posts in “Startups”

Three of Apple and Google’s former star chip designers launch NUVIA with $53M in series A funding

Silicon is apparently the new gold these days, or so VCs hope.

What was once a no-go zone for venture investors, who feared the long development lead times and high technical risk required for new entrants in the semiconductor field, has now turned into one of the hottest investment areas for enterprise and data VCs. Startups like Graphcore have reached unicorn status (after its $200 million series D a year ago) while Groq closed $52M from the likes of Chamath Palihapitiya of Social Capital fame and Cerebras raised $112 million in investment from Benchmark and others while announcing that it had produced the first trillion transistor chip (and who I profiled a bit this summer).

Today, we have another entrant with another great technical team at the helm, this time with a Santa Clara, CA-based startup called NUVIA. The company announced this morning that it has raised a $53 million series A venture round co-led by Capricorn Investment Group, Dell Technologies Capital (DTC), Mayfield, and WRVI Capital, with participation from Nepenthe LLC.

Despite only getting started earlier this year, the company currently has roughly 60 employees, 30 more at various stages of accepted offers, and the company may even crack 100 employees before the end of the year.

What’s happening here is a combination of trends in the compute industry. There has been an explosion in data and by extension, the data centers required to store all of that information, just as we have exponentially expanded our appetite for complex machine learning algorithms to crunch through all of those bits. Unfortunately, the growth in computation power is not keeping pace with our demands as Moore’s Law slows. Companies like Intel are hitting the limits of physics and our current know-how to continue to improve computational densities, opening the ground for new entrants and new approaches to the field.

Finding and building a dream team with a “chip” on their shoulder

There are two halves to the NUVIA story. First is the story of the company’s founders, which include John Bruno, Manu Gulati, and Gerard Williams III, who will be CEO. The three overlapped for a number of years at Apple, where they brought their diverse chip skillsets together to lead a variety of initiatives including Apple’s A-series of chips that power the iPhone and iPad. According to a press statement from the company, the founders have worked on a combined 20 chips across their careers and have received more than 100 patents for their work in silicon.

Gulati joined Apple in 2009 as a micro architect (or SoC architect) after a career at Broadcom, and a few months later, Williams joined the team as well. Gulati explained to me in an interview that, “So my job was kind of putting the chip together; his job was delivering the most important piece of IT that went into it, which is the CPU.” A few years later in around 2012, Bruno was poached from AMD and brought to Apple as well.

Gulati said that when Bruno joined, it was expected he would be a “silicon person” but his role quickly broadened to think more strategically about what the chipset of the iPhone and iPad should deliver to end users. “He really got into this realm of system-level stuff and competitive analysis and how do we stack up against other people and what’s happening in the industry,” he said. “So three very different technical backgrounds, but all three of us are very, very hands-on and, you know, just engineers at heart.”

Gulati would take an opportunity at Google in 2017 aimed broadly around the company’s mobile hardware, and he eventually pulled over Bruno from Apple to join him. The two eventually left Google earlier this year in a report first covered by The Information in May. For his part, Williams stayed at Apple for nearly a decade before leaving earlier this year in March.

The company is being stealthy about exactly what it is working on, which is typical in the silicon space because it can take years to design, manufacture, and get a product into market. That said, what’s interesting is that while the troika of founders all have a background in mobile chipsets, they are indeed focused on the data center broadly conceived (i.e. cloud computing), and specifically reading between the lines, to finding more energy-efficient ways that can combat the rising climate cost of machine learning workflows and computation-intensive processing.

Gulati told me that “for us, energy efficiency is kind of built into the way we think.”

The company’s CMO did tell me that the startup is building “a custom clean sheet designed from the ground up” and isn’t encumbered by legacy designs. In other words, the company isn’t building on top of ARM or other existing chip architectures.

Building an investor syndicate that’s willing to “chip” in

Outside of the founders, the other half of this NUVIA story is the collective of investors sitting around the table, all of whom not only have deep technical backgrounds, but also deep pockets who can handle the technical risk that comes with new silicon startups.

Capricorn specifically invested out of what it calls its Technology Impact Fund, which focuses on funding startups that use technology to make a positive impact on the world. Its portfolio according to a statement includes Tesla, Planet Labs, and Helion Energy.

Meanwhile, DTC is the venture wing of Dell Technologies and its associated companies, and brings a deep background in enterprise and data centers, particularly from the group’s server business like Dell EMC. Scott Darling, who leads DTC, is joining NUVIA’s board, although the company is not disclosing the board composition at this time. Navin Chaddha, an electrical engineer by training who leads Mayfield, has invested in companies like HashiCorp, Akamai, and SolarCity. Finally, WRVI has a long background in enterprise and semiconductor companies.

I chatted a bit with Darling of DTC about what he saw in this particular team and their vision for the data center. In addition to liking each founder individually, Darling felt the team as a whole was just very strong. “What’s most impressive is that if you look at them collectively, they have a skillset and breadth that’s also stunning,” he said.

He confirmed that the company is broadly working on data center products, but said the company is going to lie low on its specific strategy during product development. “No point in being specific, it just engenders immune reactions from other players so we’re just going to be a little quiet for a while,” he said.

He apologized for “sounding incredibly cryptic” but said that the investment thesis from his perspective for the product was that “the data center market is going to be receptive to technology evolutions that have occurred in places outside of the data center that’s going to allow us to deliver great products to the data center.”

Interpolating that statement a bit with the mobile chip backgrounds of the founders at Google and Apple, it seems evident that the extreme energy-to-performance constraints of mobile might find some use in the data center, particularly given the heightened concerns about power consumption and climate change among data center owners.

DTC has been a frequent investor in next-generation silicon, including joining the series A investment of Graphcore back in 2016. I asked Darling whether the firm was investing aggressively in the space or sort of taking a wait-and-see attitude, and he explained that the firm tries to keep a consistent volume of investments at the silicon level. “My philosophy on that is, it’s kind of an inverted pyramid. No, I’m not gonna do a ton of silicon plays. If you look at it, I’ve got five or six. I think of them as the foundations on which a bunch of other stuff gets built on top,” he explained. He noted that each investment in the space is “expensive” given the work required to design and field a product, and so these investments have to be carefully made with the intention of supporting the companies for the long haul.

That explanation was echoed by Gulati when I asked how he and his co-founders came to closing on this investor syndicate. Given the reputations of the three, they would have had easy access to any VC in the Valley. He said about the final investors:

They understood that putting something together like this is not going to be easy and it’s not for everybody … I think everybody understands that there’s an opportunity here. Actually capitalizing upon it and then building a team and executing on it is not something that just anybody could possibly take on. And similarly, it is not something that every investor could just possibly take on in my opinion. They themselves need to have a vision on their side and not just believe our story. And they need to strategically be willing to help and put in the money and be there for the long haul.

It may be a long haul, but Gulati noted that “on a day-to-day basis, it’s really awesome to have mostly friends you work with.” With perhaps 100 employees by the end of the year and tens of millions of dollars already in the bank, they have their war chest and their army ready to go. Now comes the fun (and hard) part as we learn how the chips fall.

More layoffs at pivoting London edtech startup pi-top

London edtech startup pi-top has gone through another round of layoffs, TechCrunch has learned.

pi-top confirmed that eight jobs have been cut in the London office, saying the job losses resulted from a “restructuring our business to focus on the U.S. education market”.

In August we broke the news that the STEM hardware focused company had cut 12 staff after losing out on a major contract. pi-top told us then that its headcount had been reduced from 72 to 60.

The latest cuts suggest the workforce has been reduced to around 50 — although we have also heard that company headcount is now considerably lower than that.

One source told us that 12 jobs have gone in the London office this week, as well as additional cuts in the China office where the company’s hardware team is based — but pi-top denied there have been any changes to its China team.

pi-top said in August that the layoffs were related to implementing a new strategy.

Commenting on the latest cuts, it told us: “We have made changes within the company that reflect our business focus on the U.S. education market and our increasingly important SaaS learning platform.”

“The core of our business remains unchanged and we are happy with progress and the fantastic feedback we have received on pitop 4 from our school partners,” pi-top added.

Additionally, we have heard that a further eight roles at the UK office have been informed to staff as at risk of redundancy. Affected jobs at risk include roles in product, marketing, creative services, customer support and finance.

We also understand that a number of employees have left the company of their own accord in recent months, following an earlier round of layoffs.

pi-top did not provide comment on jobs at risk of redundancy but told us that it has hired three new staff “to accelerate the SaaS side of our education offering and will be increasing our numbers in the U.S. to service our growth in the region”.

We understand that the latest round of cuts have been communicated to staff as a cost reduction exercise and also linked to implementing a new strategy. Staff have also been told that the business focus has shifted to the U.S schools market.

As we reported earlier this year, pi-top appointed a new executive chairman of its board who has a strong U.S. focus: Stanley Buchesky served in the Trump administration as an interim CFO for the US department for education under secretary of state, Betsy DeVos. He is also the founder of a U.S. edtech seed fund.

Sources familiar with pi-top say the company is seeking to pivot away from making proprietary edtech hardware to focus on a SaaS learning platform for teaching STEM, called pi-top Further.

At the start of this year it crowdfunded a fourth gen STEM device, the pi-top 4, with an estimated shipping date of this month. The crowdfunder attracted 521 backers, pledging close to $200k to fund the project.

In the pi-top 4 Kickstarter pitch the device is slated as being supported by a software platform called Further — which is described as a “free social making platform” that “teaches you how to use all the pi-top components through completing challenges and contributing projects to the community”, as well as offering social sharing features.

The plan now is for pi-top to monetize that software platform by charging subscription fees for elements of the service — with the ultimate goal of SaaS revenues making up the bulk of its business as hardware sales are de-emphasized. (Hardware is hard; and pi-top’s current STEM learning flagship has faced some challenges with reliability, as we reported in August.)

We understand that the strategic change to Further — from free to a subscription service — was communicated to staff internally in September.

Asked about progress on the pi-top 4, the company told us the device began shipping to backers this week. 

“We are pleased to announce the release of pi-top 4 and pi-top Further, our new learning and robotics coding platform,” it said. “This new product suite provides educators the ability to teach coding, robotics and AI with step-by-step curriculum and an integrated coding window that powers the projects students build. With pi-top, teachers can effectively use Project Based Learning and students can learn by doing and apply what they learn to the real world.”

Last month pi-top announced it had taken in $4M in additional investment to fund the planned pivot to SaaS — and “bridge towards profitability”, as it put it today.

“The changes you see are a fast growing start-up shifting from revenue focus to a right-sized profit generating company,” it also told us.

Despite bans, Giphy still hosts self-harm, hate speech, and child sex abuse content

Image search engine Giphy bills itself as providing “fun and safe way” to search and create animated GIFs. But despite its ban on illicit content, the site is littered with self-harm and child sex abuse imagery, TechCrunch has learned.

A new report from Israeli online child protection startup L1ght — previously AntiToxin Technologies — has uncovered a host of toxic content hiding within the popular GIF-sharing community, including illegal child abuse content, depictions of rape, and other toxic imagery associated with topics like white supremacy and hate speech. The report, shared exclusively with TechCrunch, also showed content encouraging viewers into unhealthy weight loss and glamorizing eating disorders.

TechCrunch verified some of the company’s findings by searching the site using certain keywords. (We did not search for terms that may have returned child sex abuse content as doing so would be illegal.) Although Giphy blocks many hashtags and search terms from returning results, search engines like Google and Bing still cache images with certain keywords.

When we tested using several words associated with illicit content, Giphy sometimes showed content from its own results. When it didn’t return any banned materials, search engines often returned a stream of would-be banned results.

L1ght develops advanced solutions to combat online toxicity. Through its tests, one search of illicit material returned 195 pictures on the first search page alone. L1ght’s team then followed tags from one item to the next, uncovering networks of illegal or toxic content along the way. The tags themselves were often innocuous in order help users escape detection, but they served as a gateway to the toxic material.

Despite a ban on self-harm content, researchers found numerous keywords and search terms to find the banned content. We have blurred this graphic image. (Image: TechCrunch)

Many of the more extreme content — including images of child sex abuse — are said to have been tagged using keywords associated with known child exploitation sites.

We are not publishing the hashtags, search terms, or sites used to access the content, but we passed on the information to the National Center for Missing and Exploited Children, a national non-profit established by Congress to fight child exploitation.

Simon Gibson, Giphy’s head of audience, told TechCrunch that content safety was of the “utmost importance” to the company and that it employs “extensive moderation protocols.” He said that when illegal content is identified, the company works with the authorities to report and remove it.

He also expressed frustration that L1ght had not contacted Giphy with the allegations first. L1ght said that Giphy is already aware of its content moderation problems.

Gibson said Giphy’s moderation system “leverages a combination of imaging technologies and human validation,” which involves users having to “apply for verification in order for their content to appear in our searchable index.” Content is “then reviewed by a crowdsourced group of human moderators,” he said. “If a consensus for rating among moderators is not met, or if there is low confidence in the moderator’s decision, the content is escalated to Giphy’s internal trust and safety team for additional review,” he said.

“Giphy also conducts proactive keyword searches, within and outside of our search index, in order to find and remove content that is against our policies,” said Gibson.

L1ght researchers used their proprietary artificial intelligence engine to uncover illegal and other offensive content. Using that platform, the researchers can find other related content, allowing them to find vast caches of illegal or banned content that would otherwise and for the most part go unseen.

This sort of toxic content plagues online platforms but algorithms only play a part. More tech companies are finding human moderation is critical to keeping their sites clean. But much of the focus to date has been on the larger players in the space, like Facebook, Instagram, YouTube, and Twitter.

Facebook, for example, has been routinely criticized for outsourcing moderation to teams of lowly paid contractors who often struggle to cope with the sorts of things they have to watch, even experiencing post-traumatic-like symptoms as a result of their work. Meanwhile, Google’s YouTube this year was found to have become a haven for online sex abuse rings, where criminals had used the comments section to guide one another to other videos to watch while making predatory remarks.

Giphy and other smaller platforms have largely stayed out of the limelight, during the past several years. But L1ght’s new findings indicate that no platform is immune to these sorts of problems.

L1ght says the Giphy users sharing this sort of content would make their accounts private so they wouldn’t be easily searchable by outsiders or the company itself. But even in the case of private accounts, the abusive content was being indexed by some search engines, like Google, Bing and Yandex, which made it easy to find. The firm also discovered that pedophiles were using Giphy as the means of spreading their materials online, including communicating with each other and exchanging materials. And they weren’t just using Giphy’s tagging system to communicate — they were also using more advanced techniques like tags placed on images through text overlays.

This same process was utilized in other communities, including those associated with white supremacy, bullying, child abuse and more.

This isn’t the first time Giphy has faced criticism for content on its site. Last year a report by The Verge described the company’s struggles to fend off illegal and banned content. Last year the company was booted from Instagram for letting through racist content.

Giphy is far from alone, but it is the latest example of companies not getting it right. Earlier this year and following a tip, TechCrunch commissioned then-AntiToxin to investigate the child sex abuse imagery problem on Microsoft’s search engine Bing. Under close supervision by the Israeli authorities, the company found dozens of illegal images in the results from searching certain keywords. When The New York Times followed up on TechCrunch’s report last week, its reporters found Bing had done little in the months that had passed to prevent child sex abuse content appearing in its search results.

It was a damning rebuke on the company’s efforts to combat child abuse in its search results, despite pioneering its PhotoDNA photo detection tool, which the software giant built a decade ago to identify illegal images based off a huge database of hashes of known child abuse content.

Giphy’s Gibson said the company was “recently approved” to use Microsoft’s PhotoDNA but did not say if it was currently in use.

Where some of the richest, largest and most-resourced tech companies are failing to preemptively limit their platforms’ exposure to illegal content, startups are filling in the content moderation gaps.

L1ght, which has a commercial interest in this space, was founded a year ago to help combat online predators, bullying, hate speech, scams, and more.

The company was started by former Amobee chief executive Zohar Levkovitz and cybersecurity expert Ron Porat, previously the founder of ad-blocker Shine, after Porat’s own son experienced online abuse in online game Minecraft. The company realized the problem with these platforms was something that had outgrown users’ own ability to protect themselves, and that technology needed to come to their aid.

L1ght’s business involves deploying its technology in similar ways as it has done here with Giphy— in order to identify, analyze, and predict online toxicity with near real-time accuracy.

Last chance for early-bird pricing on passes to Disrupt Berlin 2019

Trite as it may sound, all good things must come to an end. And the good thing that’s about to come to a grinding halt is early-bird pricing on passes to Disrupt Berlin 2019. You have mere hours to save — the deadline strikes tonight at 11:59 p.m. (CEST).

You can save up to €500, but only if you beat the clock. Buy your early-bird pass right now, otherwise you’ll pay more than necessary — how sad.

Need more inspiration than saving significant euros? Okay, let’s talk speakers. Disrupt conferences always offers an awesome lineup of speakers, and this year Disrupt Berlin is no exception. We’re going to mix it up a bit in this post and feature just some of the impressive women who will hold forth on the various Disrupt stages.

Unnatural Language Processing with Emily Foges (CEO at Luminance) and Sofie Quidenus-Wahlforss (founder & CEO at omni:us). Legal contracts and insurance policies can be difficult even for experts to decipher. Hear from the founders how Luminance and omni:us use AI to take on jargon and save everyone time.

The New New Shop with Maria Raga (CEO of Depop). As shopping has moved from the web to apps, Depop has caught the Gen Z wave. We’ll hear from Raga, the CEO nurturing this “eBay for the 21st Century.”

What Does It Take to Raise a Series A? with Jessica Holzbach (co-founder & CCO at Penta), Louise Dahlborn Samet (partner at Blossom Capital) and Hannah Seal (principal at Index Ventures). Venture capital funds have boomed this decade, but raising money is still hard for young companies. What are investors today looking for in teams, metrics and products?

Up, Up and Away with Jen Rubio (co-founder & chief brand officer at Away). The D2C space is awfully crowded, but luggage brand Away has managed to rise above the noise to build one of the most successful consumer brands of this decade with a valuation of $1.4 billion as of earlier this year. Hear from CEO Jen Rubio about how the company got its start, grew and became the household name it is today.

Like we said, those are but a few of the amazing women you’ll hear at Disrupt Berlin. And the guys aren’t half bad either. Check out the full agenda here.

There’s more to explore at Disrupt Berlin — Q&A Sessions, the Startup Battlefield, the Hackathon finalists pitching on the Extra Crunch Stage and hundreds of startups in Startup Alley, including our recently announced TC Top Picks.

See and do it all at Disrupt Berlin 2019 on 11-12 December. You’ll see and do it all for less if you act now and buy an early-bird pass to Disrupt Berlin before early-bird pricing disappears tonight at 11:59 p.m. (CEST).

Is your company interested in sponsoring or exhibiting at Disrupt Berlin 2019? Contact our sponsorship sales team by filling out this form.

SoftBank Vision Fund’s Carolina Brochado is coming to Disrupt Berlin

SoftBank’s Vision Fund has single-handedly changed the game when it comes to tech startup investment. And that’s why I’m excited to announce that SoftBank Vision Fund investment director Carolina Brochado is joining us at TechCrunch Disrupt Berlin.

Carolina Brochado isn’t a newcomer when it comes to VC investment. She’s worked for years at Atomico in London. Originally from Brazil, she first joined Atomico as an intern in 2012 while studying her MBA at Columbia Business School.

After her MBA, she joined an e-commerce startup as head of operations. Unfortunately, that startup is now defunct. But she used that opportunity to join Atomico once again, as a principle. She became a partner at Atomico in 2016 and left the firm late last year.

At SoftBank’s Vision Fund, she focuses on fintech, digital health and marketplace startups. Just to give you an idea, some of her past investments with both Atomico and SoftBank include LendInvest, Gympass, Hinge Health, Ontruck and Rekki.

More generally, given the size of SoftBank’s Vision Fund ($100 billion), it has had a huge impact on the growth trajectory of some companies. I’m personally curious to know SoftBank’s approach as board members, whether they get involved in the strategy of those companies or let the executive teams make decisions on their own.

Buy your ticket to Disrupt Berlin to listen to this discussion and many others. The conference will take place on December 11-12.

In addition to panels and fireside chats, like this one, new startups will participate in the Startup Battlefield to compete for the highly coveted Battlefield Cup.


Carolina focuses on fintech, digital health and marketplaces. Prior to joining Softbank, Carolina was a Partner at Atomico, where she sourced and collaborated with portfolio companies for almost five years. Some of her investments included Lendinvest, Gympass, Hinge Health, Ontruck and Rekki.

Previously Carolina has worked as Head of Ops to a now defunct gifting e-commerce start-up, as an investor at Chicago-based private equity firm Madison Dearborn Partners and within Consumer/Retail Investment Banking at Merrill Lynch in New York.

Carolina has a Bachelor of Science degree in Foreign Service from Georgetown University and an MBA from Columbia Business School. She is originally from Brazil.