All posts in “funding”

Twistlock snares $33 million Series C investment to secure cloud native environments

As the world shifts to a cloud native approach, the way you secure applications as they get deployed is changing too. Twistlock, a company built from the ground up to secure cloud native environments, announced a $33 million Series C round today led by Iconiq Capital.

Previous investors YL Ventures, TenEleven, Rally Ventures, Polaris Partners and Dell Technologies Capital also participated in the round. The company reports it has received a total of $63 million in venture investment to date.

Twistlock is solving a hard problem around securing containers and serverless, which are by their nature ephemeral. They can live for fractions of seconds making it hard track problems when they happen. According to company CEO and co-founder Ben Bernstein, his company came out of the gate building a security product designed to protect a cloud-native environment with the understanding that while containers and serverless computing may be ephemeral, they are still exploitable.

“It’s not about how long they live, but about the fact that the way they live is more predictable than a traditional computer, which could be running for a very long time and might have humans actually using it,” Bernstein said.

Screenshot: Twistlock

As companies move to a cloud native environment using Dockerized containers and managing them with Kubernetes and other tools, they create a highly automated system to deal with the deployment volume. While automation simplifies deployment, it can also leave companies vulnerable to host of issues. For example, if a malicious actor were to get control of the process via a code injection attack, they could cause a lot of problems without anyone knowing about it.

Twistlock is built to help prevent that, while also helping customers recognize when an exploit happens and performing forensic analysis to figure out how it happened.

It’s is not a traditional Software as a Service as we’ve come to think of it. Instead, it is a service that gets installed on whatever public or private cloud that the customer is using. So far, they count just over 200 customers including Walgreens and Aetna and a slew of other companies you would definitely recognize, but they couldn’t name publicly.

The company, which was founded in 2015, is based in Portland, Oregon with their R&D arm in Israel. They currently have 80 employees. Bernstein said from a competitive standpoint, the traditional security vendors are having trouble reacting to cloud native, and while he sees some startups working at it, he believes his company has the most mature offering, at least for now.

“We don’t have a lot of competition right now, but as we start progressing we will see more,” he said. He plans to use the money they receive today to help expand their marketing and sales arm to continue growing their customer base, but also engineering to stay ahead of that competition as the cloud-native security market continues to develop.

To fight the scourge of open offices, ROOM sells rooms

Noisy open offices don’t foster collaboration, they kill it, according to a Harvard study that found the less-private floor plan led to a 73 percent drop in face-to-face interaction between employees and a rise in emailing. The problem is plenty of young companies and big corporations have already bought into the open office fad. But a new startup called ROOM is building a prefabricated, self-assembled solution. It’s the Ikea of office phone booths.

The $3495 ROOM One is a sound-proofed, ventilated, powered booth that can be built in new or existing offices to give employees a place to take a video call or get some uninterrupted flow time to focus on work. For comparison, ROOM co-founder Morten Meisner-Jensen says “Most phone booths are $8,000 to $12,000. The cheapest competitor to us is $6,000 — almost twice as much.” Though booths start at $4,500 from TalkBox and $3,995 from Zenbooth, they tack on $1,250 and $1,650 for shipping while ROOM ships for free. They’re all dividing the market of dividing offices.

The idea might seem simple, but the booths could save businesses a ton of money on lost productivity, recruitment, and retention if it keeps employees from going crazy amidst sales call cacophony. Less than a year after launch, ROOM has hit a $10 million revenue run rate thanks to 200 clients ranging from startups to Salesforce, Nike, NASA, and JP Morgan. That’s attracted a $2 million seed round from Slow Ventures that adds to angel funding from Flexport CEO Ryan Petersen. “I am really excited about it since it is probably the largest revenue generating company Slow has seen at the time of our initial Seed stage investment” says partner Kevin Colleran.

“It’s not called ROOM because we build rooms” Meisner-Jensen tells me. “It’s called ROOM because we want to make room for people, make room for privacy, and make room for a better work environment.”

Phone Booths, Not Sweatboxes

You might be asking yourself, enterprising reader, why you couldn’t just go to Home Depot, buy some supplies, and build your own in-office phone booth for way less than $3,500. Well, ROOM’s co-founders tried that. The result was…moist.

Meisner-Jensen has design experience from the Danish digital agency Revolt that he started befor co-founding digital book service Mofibo and selling it to Storytel. “In my old job we had to go outside and take the class, and I’m from Copenhagen so that’s a pretty cold experience half the year.” His co-founder Brian Chen started Y Combinator-backed smart suitcase company Bluesmart where he was VP of operations. They figured they could attack the office layout issue with hammers and saws. I mean, they do look like superhero alter-egos.

Room co-founders (from left): Brian Chen and Morten Meisner-Jensen

“To combat the issues I myself would personally encounter with open offices, as well as colleagues, we tried to build a private ‘phone booth’ ourselves” says Meisner-Jensen. “We didn’t quite understand the specifics of air ventilation or acoustics at the time, so the booth got quite warm – warm enough that we coined it ‘the sweatbox.’”

With ROOM, they got serious about the product. The 10 square foot ROOM One booth ships flat and can be assembled in under 30 minutes by two people with a hex wrench. All it needs is an outlet to plug into to power its light and ventilation fan. Each is built from 1088 recycled plastic bottles for noise cancelling so you’re not supposed to hear anything from outsides. The whole box is 100 percent recyclable plus ith can be torn down and rebuilt if your startup implodes and you’re being evicted from your office.

The ROOM One features a bar-height desk with outlets and a magnetic bulletin board behind it, though you’ll have to provide your own stool of choice. It actually designed not to be so comfy you end up napping inside. “To solve the problem with noise at scale you want to provide people with space to take a call but not camp out all day” Meisner-Jensen notes.

Booths by Zenbooth, Cubicall, and TalkBox (from left)

A Place To Get Into Flow

Couldn’t office managers just buy noise-cancelling headphones for everyone? “It feels claustrophobic to me” he laughs, but then outlines why a new workplace trend requires more than headphones. “People are doing video calls and virtual meetings much, much more. You can’t have all these people walking by you and looking at your screen. [A booth is] also giving you your own space to do your own work which I don’t think you’d get from a pair of Bose. I think it has to be a physical space.”

But with plenty of companies able to construct physical spaces, it will be a challenge for ROOM to convey to subtleties of its build quality that warrant its price. “The biggest risk for ROOM right now are copycats” Meisner-Jensen admits. “Someone entering our space claiming to do what we’re doing better but cheaper.” Alternatively, ROOM could lock in customers by offering a range of office furniture products. The co-founder hinted at future products, saying ROOM is already receiving demand for bigger multi-person prefab conference rooms and creative room divider solutions.

The importance of privacy goes beyond improved productivity when workers are alone. If they’re exhausted from overstimulation in a chaotic open office, they’ll have less energy for purposeful collaboration when the time comes. The bustle could also make them reluctant to socialize in off-hours, which could lead them to burn out and change jobs faster. Tech companies in particular are in a constant war for talent, and ROOM Ones could be perceived as a bigger perk than free snacks or a ping-pong table that only makes the office louder.

“I don’t think the solution is to go back to a world of cubicles and corner offices” Meisner-Jensen concludes. It could take another decade for office architects to correct the overenthusiasm for open offices despite the research suggesting their harm. For now, ROOM’s co-founder is concentrating on “solving the issue of noise at scale” by asking “How do we make the current workspaces work in the best way possible?”

Alphabet invests $375 million in Oscar Health

Google parent Alphabet has invested $375 million in next-gen health insurance company, Oscar Health. Google has been a longtime supporter of the six-year-old New York company, having previously invested in Oscar through its Capital G investment wing and Verily health and life sciences research wing.

Alphabet has invested in Oscar over many years and has seen the company and its team up close. We’re thrilled to invest further to help Oscar in its next phase of growth,” an Alphabet spokesperson told TechCrunch.

That $165 million round raised back in March valued the health startup at around $3 billion. The new round maintains a similar valuation, while giving Alphabet a 10 percent share in Oscar. The deal also has longtime Google employee and former CEO Salar Kamangar joining Oscar’s board.

Oscar co-founder and CEO Mario Schlosser announced the news in an interview with Wired, telling the site, “We can hire more engineers, we can hire more data scientists, more product designers, more smart clinicians who can think about health care a different way. It’s the acceleration of that product roadmap that fascinates us the most. The second, more tangible piece, is that we’re launching new product lines.”

Part of that product expansion includes getting into Medicare Advantage in 2020, which is a deviation from the current offerings in the individual and employer insurance markets. Oscar started out by offering insurance for individuals, growing rapidly during the launch of the Affordable Care Act and then rolling into small business offerings with its product Oscar for Business. Medicare represents a new vertical for the company, adding to its existing focus on both the individual and employer insurance markets.

“Oscar will accelerate the pursuit of its mission: to make our health care system work for consumers,” Schlosser said in a statement provided to TechCrunch. “We will continue to build a member experience that lowers costs and improves care, and to bring Oscar to more people — deepening our expansion into the individual and small business markets while entering a new business segment, Medicare Advantage, in 2020.”

Wonderschool raises $20M to help people start in-home preschools

Educators already don’t get paid enough, and those that work in preschools or daycares often make 48% less. Meanwhile, parents struggle to find great early education programs where kids receive enough attention and there’s space, but they don’t need special connections or to pass grueling admissions interviews to get in.

Any time there’s a lousy experience people have an emotional connection to and spend a lot of money on, there’s an opportunity for a startup. Enter ‘Wonderschool‘, a company that lets licensed educators and caretakers launch in-home preschools or daycares. Wonderschool helps candidates get licensed, set up their programs, launch their websites, boost enrollment, and take payments in exchange for a 10 percent cut of tuition. The startup is now helping run 140 schools in the SF Bay, LA, and NYC where parents are happy to pay to give their kids an edge in life.

That opportunity to fill a lucrative gap in the education market has attracted a new $20 million Series A for Wonderschool led by Andreessen Horowitz . The round brings the startup to $24.1 million in total funding just two years after launch. With the cash and Andreessen partner Jeff Jordan joining its board, Wonderschool is looking to build powerful lead generation and management software to turn teachers into savvy entrepreneurs.

Finding good childcare has become one of the most difficult experiences for families. I’ve seen parents who are making a livable wage in urban cities like San Francisco and New York still struggle to find and afford quality childcare” says co-founder and CEO Chris Bennett. “We wanted to deliver a solution for parents that also had the potential to create jobs and empower the caregiver — that’s Wonderschool.”

By spawning and uniting programs across the country, Wonderschool could scale as the way software eats preschool. But without vigorous oversight of each educator, Wonderschool is also at risk of a safety mishap at one of its franchises ruining the brand for them all.

Airbnb For Schooling

Wonderschool started when co-founder Arrel Gray was having trouble finding childcare for his daughter close to home. “My little sister went to an in-home preschool, so I suggested he check them out” says Bennett. “But he wasn’t very satisfied with the options – the majority were full and some didn’t meet the expectations for his family. We also found that they didn’t use the internet much so they were hard to find and contact.”

The two were looking to pivot their social commerce startup Soldsie after Facebook algorithm changes had curtailed its growth. Their research led to the discovery of just how much lower preschool and daycare workers’ wages were. “When we had the idea we thought, ‘what the best way to test this?’ Why don’t we start a preschool ourselves’” says Bennett. “So we rented a home in the Berkeley Hills, hired an amazing educator, set up a school and started one. The school ended up being a huge success. Five-star reviews on Yelp. A high NPS. Parents loved the place.” It also scored the teacher a 3X higher salary than before.

With that proof, Wonderschool went on to raise $4.1 million from Josh Kopelman at First Round Capital, Omidyar Network, Cross Culture Ventures, Uncork Capital, Lerer Ventures, FundersClub, and Edelweiss. That let them flesh out the business. Wonderschool would recruit existing teachers and caregivers or guide people to get licensed so they could become “directors” of in-home schools. Wonderschool acts almost like Airbnb by turning them into small businesses earning money from home.

Teachers can pick whatever schedule, curriculum, or format they want, like Montesori or nature-focused learning. Wonderschool now has over 500 directors working with its software, with some making as much as $150,000 or $200,000. In exchange for its 10 percent cut of tuition, Wonderschool provides directors with a “bootcamp” to prep them for the job. It pairs them with a mentor, then helps them build their website and figure out their pricing options. Coaching guides train the directors to scout for new leads, offer appealing tours, and track their fledgling business.

The $20 million from Andreessen, OmidyarGary Community Investments and First Round will go to expanding the Wonderschool software. Each student slot it can help director fill, the more it earns. The startup will also have to compete with  companies like Wildflower Schools, which Bennett admits has a similar business model but he says “We are focused on in home and they also focus on Montessori while we are curriculum agnostic.” There’s also Cottage Class which powers homeschooling for students up to age 18, Tinkergarten that concentrates on short-term outdoor education, and VIPKid connects kids in China with U.S. teachers over video chat.

They, like Wonderschool, are trying to scale up to meet the massive existing demand. “The challenge is that there aren’t enough programs for the number of children needing public or private schooling – 1st grade or earlier – and our goal is to provide enough supply for every child” Bennett explains.

Still, safety remains a top concern. Bennett notes that “Wonderschool has a support team that helps school Directors prepare their homes for operation. With regard to safety, each state’s licensing office covers this in their approval process for being granted a license to operate.” But could a problem at one school shake the businesses of all the rest of its franchises? “We have a system of checks in balances in place that we feel confident would allow us to anticipate any potential issues, including regular, weekly check-ins with Directors and a feedback loop with parents. We also email parents on a regular cadence to get feedback from parents and we step in and work with the Director if we find that there are issues” Bennett insists.

If Wonderschool can keep its brand clean through thorough oversight, it could both create better paying jobs in a field rife with undercompensated heroes, and open early schooling to a wider range of students. Bennett’s parents moved to the U.S. from Honduras, pouring their efforts into supporting his and his sister’s education. Now he’s building the next generation of teachers the tools to give more kids a head start in life.

Blissfully grabs $3.5 million seed investment to help companies get their SaaS in gear

Blissfully, a New York City startup that helps companies understand their SaaS usage inside their organizations, announced it has received a $3.5 million seed round.

The investment was led by Hummer Winblad Venture Partners. Hubspot, Founder Collective, and several unnamed pre-seed investors also participated. They got a $1.5 million pre-seed investment, bringing the total so far to $5 million, according the company.

Company co-founder and CEO Ariel Diaz says Blissfully actually helped him and his co-founder solve a problem they were having tracking the SaaS usage at their previous startups. Like many companies, they were using spreadsheets to track this information and they found it was untenable as the company grew beyond 30 or 40 people. They figured there had to be a better way, so they built one.

Their product is much more than simply a database of the SaaS products in use inside an organization. It can integrate with existing company systems like single sign-on tools such as Okta and OneLogIn, financial reporting systems and G Suite login information. “We are trying to automate as much of the data collection as possible to discover what you’re using, who’s using it and how much you are spending,” he said.

Blissfully SaaS report. Screenshot: Blissfully

Their scans often turn up products customers thought they had canceled or those that IT had asked employees to stop using. More than finding Shadow IT, the product also gives insight to overall SaaS spend, which many companies have trouble getting a grip on. They can find most usage with a scan. Some data such as customized contract information may have to be manually entered into the system, he says.

Hubspot CEO Brian Halligan, whose company is one of the investors in this round, sees a growing need for this kind of tool. “The widespread growth of SaaS across companies of all sizes is a leading indicator of the market need for Blissfully. As business’ investments in SaaS increase, they lose visibility into issues ranging from spending to security,” Halligan said in a statement.

The company offers a freemium and pay model and is available in the G Suite Marketplace. If you go for the free version, you can scan your systems for SaaS usage, but if you want to do more complex integrations with company systems, you have to pay. They currently have 10 employees and 500 customers with a mix of paying and free.

One interesting aspect of the Blissfully tool is that it is built entirely using Serverless architecture on AWS Lambda.