Canva introduces video editing, has big plans for 2020

Canva, the design company with nearly $250 million in funding, has today announced a variety of new features, including a video editing tool.

The company has also announced Canva Apps, which allows developers and customers alike to build on top of Canva. Thus far, Dropbox, Google Drive, PhotoMosh and Instagram are already in the Canva Apps suite, with a total of 30 apps available at launch.

The video editing tool allows for easy editing with no previous experience required, and also offers video templates, access to a stock content library with videos, music, etc., and easy-to-use animation tools.

Meanwhile, Canva is taking the approach of winning customers when they’re young, with the launch of Canva for Education. It’s a totally free product that has launched in beta with Australian schools, integrating with GSuite and Google Classroom to allow students to build out projects, and teachers to mark them up and review them.

Canva has also announced the launch of Canva for Desktop.

As design becomes more important to the way every organization functions and operates, one of the only barriers to the growth of the category is the pace at which new designers can emerge and enter the workforce.

Canva has positioned itself as the non-designer’s design tool, making it easy to create something beautiful with little to no design experience. The launch of the video editing tool and Canva for Education strengthen that stance, not only creating more users for the platform itself but fostering an environment for the maturation of new designers to join the ecosystem as a whole.

Alongside the announcement, Canva CEO Melanie Perkins has announced that Canva will join the 1% pledge, dedicating 1 percent of equity, profit, time and resources to making the world a better place.

Here’s what she had to say about it, in a prepared statement:

Companies have a huge role to play in helping to shape the world we live in and we feel like the 1% Pledge is an incredible program which will help us to use our company’s time, resources, product and equity to do just that. We believe the old adage ‘do no evil’ is no longer enough today and hope to live up to our value to ‘Be a Force for Good’.

Interestingly, Canva’s position at the top of the design funnel hasn’t slowed growth. Indeed, Canva recently launched Canva for Enterprise to let all the folks in the organization outside of the design department step up to bat and create their own decks, presentations, materials, etc., all within the parameter’s of the design system and brand aesthetic.

A billion designs have been created on Canva in 2019, with 2 billion designs created since the launch of the platform.


By Jordan Crook

AWS announces new enterprise search tool powered by machine learning

Today at AWS re:Invent in Las Vegas, the company announced a new search tool called Kendra, which provides natural language search across a variety of content repositories using machine learning.

Matt Wood, AWS VP of artificial intelligence, said the new search tool uses machine learning, but doesn’t actually require machine learning expertise of any kind. Amazon is taking care of that for customers under the hood.

You start by identifying your content repositories. This could be anything from an S3 storage repository to OneDrive to Salesforce — anywhere you store content. You can use pre-built connectors from AWS, provide your credentials and connect to all of these different tools.

Kendra then builds an index based on the content it finds in the connected repositories, and users can begin to interact with the search tool using natural language queries. The tool understands concepts like time, so if the question is something like “When is the IT Help Desk is open,” the search engine understands that this is about time, checks the index and delivers the right information to the user.

The beauty of this search tool is not only that it uses machine learning, but based on simple feedback from a user, like a smiley face or sad face emoji, it can learn which answers are good and which ones require improvement, and it does this automatically for the search team.

Once you have it set up, you can drop the search on your company intranet or you can use it internally inside an application and it behaves as you would expect a search tool to do, with features like type ahead.


By Ron Miller

Verizon and AWS announce 5G Edge computing partnership

Just as Qualcomm was starting to highlight its 5G plans for the coming years, Verizon CEO Hans Vestberg hit the stage at AWS re:Invent to discuss the carrier’s team up with the cloud computing giant.

As part of Verizon’s (TechCrunch’s parent company, disclosure, disclosure, disclosure) upcoming focus on 5G edge computing, the carrier will be the first to use the newly announced AWS Wavelength. The platform is designed to let developers build super low latency apps for 5G devices.

Currently, it’s being piloted in Chicago with a handful of high profile partners, including the NFL and Bethesda, the game developer behind Fallout and Elder Scrolls. No details yet on those specific applications (though remote gaming and live streaming seem like the obvious ones), but potential future uses include things like smart cars, IoT devices, AR/VR — you know, the sorts of things people cite when discussing 5G’s life beyond the smartphone.

“AWS Wavelength provides the same AWS environment — APIs, management console, and tools — that they’re using today at the edge of the 5G network,” AWS CEO Andy Jassy said on-stage. Starting with Verizon’s 5G network locations in the US, customers will be able to deploy the latency-sensitive portions of an application at the edge to provide single-digit millisecond latency to mobile and connected devices.”

As Verizon’s CEO joined Vestberg on stage, CNO Nicki Palmer joined Qualcomm in Hawaii, to discuss the carrier’s Mmwave approach to the next-gen wireless. The technology has raised some questions around its coverage area. Verizon has addressed this to some degree with partnerships with third-parties like Boingo.

The company plans to have coverage in 30 U.S. cities by end of year. That number is currently at 18.


By Brian Heater

AWS AutoPilot gives you more visible AutoML in SageMaker Studio

Today at AWS re:Invent in Las Vegas, the company announced AutoPilot, a tool that gives you greater visibility in automated machine learning model creation. This is available as part of the new SageMaker Studio also announced today.

As AWS CEO Andy Jassy pointed out on stage today, one of the problems with AutoML is that it’s basically a black box. “First they build this OK, simple model initially, but that is a total black box. If you want to improve a mediocre model or just evolve it for your business, you you have no idea how it was built.” he explained.

The idea behind AutoPilot is to give you the ease of model creation you get from and AutoML-generated model, but also giving you much deeper insight into how the system built the model. “AutoMl in a way to create a model automatically but give full visibility and control,” Jassy said.

You can look at the model’s parameters, and see 50 automated model, then the it provides you with a leader board of what models were the best. You can look at the notebook, and also see what trade-offs were made to generate that best model. It may be the most accurate, but sacrifices speed to get that.

Your company may have its own set of unique requirements and you can choose the best model based on whatever parameters you consider to be most important for your company, even though this was generated in an automated fashion.

With this insight and visibility into your automatically generated model, you can pick the best one based on you requirements. Once you have the model, you like best, you can go into SageMaker Studio, select it and launch it with a single click.


By Ron Miller

AWS’ CodeGuru uses machine learning to automate code reviews

AWS today announced CodeGuru, a new machine learning-based service that automates code reviews based on the data the company has gathered from doing code reviews internally.

Developers write the code and simply add CodeGuru to the pull requests. It supports GitHub and CodeCommit, for the time being. The CodeGuru uses its knowledge of reviews from Amazon and about 10,000 open source projects to find issues and then comments on the pull request as needed. It will obviously identify the issues, but it will also suggest remediations and offer links to the relevant documentation.

Encoded in CodeGuru are AWS’s own best practices. Among other things, it also finds concurrency issues, incorrect handling of resources, and issues with input validation.

AWS and Amazon’s consumer side have used the profiler part of CodeGuru for the last few years to find the ‘most expensive line of code.’ Over the last few years, even as some of the company’s applications grew, some teams were able to increase their CPU utilization by over 325 percent at 36 percent lower cost.


By Frederic Lardinois

Box looks to balance growth and profitability as it matures

Prevailing wisdom states that as an enterprise SaaS company evolves, there’s a tendency to sacrifice profitability for growth — understandably so, especially in the early days of the company. At some point, however, a company needs to become profitable.

Box has struggled to reach that goal since going public in 2015, but yesterday, it delivered a mostly positive earnings report. Wall Street seemed to approve, with the stock up 6.75% as we published this article.

Box CEO Aaron Levie says the goal moving forward is to find better balance between growth and profitability. In his post-report call with analysts, Levie pointed to some positive numbers.

“As we shared in October [at BoxWorks], we are focused on driving a balance of long-term growth and improved profitability as measured by the combination of revenue growth plus free cash flow margin. On this combined metric, we expect to deliver a significant increase in FY ’21 to at least 25% and eventually reaching at least 35% in FY ’23,” Levie said.

Growing the platform

Part of the maturation and drive to profitability is spurred by the fact that Box now has a more complete product platform. While many struggle to understand the company’s business model, it provides content management in the cloud and modernizing that aspect of enterprise software. As a result, there are few pure-play content management vendors that can do what Box does in a cloud context.


By Ron Miller

Xerox tells HP it will bring takeover bid directly to shareholders

Xerox fired the latest volley in the Xerox HP merger letter wars today. Xerox CEO John Visentin wrote to the HP Board that his company planned to take its $33.5 billion offer directly to HP shareholders.

He began his letter with hostile tone befitting a hostile takeover attempt, stating that their refusal to negotiate defied logic. “We have put forth a compelling proposal – one that would allow HP shareholders to both realize immediate cash value and enjoy equal participation in the substantial upside expected to result from a combination. Our offer is neither “highly conditional” nor “uncertain” as you claim,” Visentin wrote in his letter.

He added, “We plan to engage directly with HP shareholders to solicit their support in urging the HP Board to do the right thing and pursue this compelling opportunity.”

The letter was in response to one yesterday from HP in which it turned down Xerox’s latest overture, stating that the deal seemed beyond Xerox’s ability to afford it. It called into question Xerox’s current financial situation, citing Xerox’s own financial reports, and took exception to the way in which Xerox was courting the company.

“It is clear in your aggressive words and actions that Xerox is intent on forcing a potential combination on opportunistic terms and without providing adequate information,” the company wrote.

Visentin fired back in his letter, “While you may not appreciate our “aggressive” tactics, we will not apologize for them. The most efficient way to prove out the scope of this opportunity with certainty is through mutual due diligence, which you continue to refuse, and we are obligated to require.”

He further pulled no punches writing that he believes the deal is good for both companies and good for the shareholders. “The potential benefits of a combination between HP and Xerox are self-evident. Together, we could create an industry leader – with enhanced scale and best-in-class offerings across a complete product portfolio — that will be positioned to invest more in innovation and generate greater returns for shareholders.”

Patrick Moorhead, founder and principal analyst at Moor Insights & Strategies, thinks HP ultimately has the upper hand in this situation. “I feel like we have seen this movie before when Carl Icahn meddled with Dell in a similar way. Xerox is a third of the size HP Inc., has been steadily declining in revenue, is running out of options, and needs HP more than HP needs it.”

It would seem Xerox has chosen a no-holds barred approach to the situation. The pen is now in HP’s hands as we await the next letter and see how the printing giant intends to respond to the latest missive from Xerox.


By Ron Miller

Instagram founders join $30M raise for Loom work video messenger

Why are we all trapped in enterprise chat apps if we talk 6X faster than we type, and our brain processes visual info 60,000X faster than text? Thanks to Instagram, we’re not as camera-shy anymore. And everyone’s trying to remain in flow instead of being distracted by multi-tasking.

That’s why now is the time for Loom. It’s an enterprise collaboration video messaging service that lets you send quick clips of yourself so you can get your point across and get back to work. Talk through a problem, explain your solution, or narrate a screenshare. Some engineering hocus pocus sees videos start uploading before you finish recording so you can share instantly viewable links as soon as you’re done.

“What we felt was that more visual communication could be translated into the workplace and deliver disproportionate value” co-founder and CEO Joe Thomas tells me. He actually conducted our whole interview over Loom, responding to emailed questions with video clips.

Launched in 2016, Loom is finally hitting its growth spurt. It’s up from 1.1 million users and 18,000 companies in February to 1.8 million people at 50,000 businesses sharing 15 million minutes of Loom videos per month. Remote workers are especially keen on Loom since it gives them face-to-face time with colleagues without the annoyance of scheduling synchronous video calls. “80% of our professional power users had primarily said that they were communicating with people that they didn’t share office space with” Thomas notes.

A smart product, swift traction, and a shot at riding the consumerization of enterprise trend has secured Loom a $30 million Series B. The round that’s being announced later today was led by prestigious SAAS investor Sequoia and joined by Kleiner Perkins, Figma CEO Dylan Field, Front CEO Mathilde Collin, and Instagram co-founders Kevin Systrom and Mike Krieger.

“At Instagram, one of the biggest things we did was focus on extreme performance and extreme ease of use and that meant optimizing every screen, doing really creative things about when we started uploading, optimizing everything from video codec to networking” Krieger says. “Since then I feel like some products have managed to try to capture some of that but few as much as Loom did. When I first used Loom I turned to Kevin who was my Instagram co-founder and said, ‘oh my god, how did they do that? This feels impossibly fast.’”


Systrom concurs about the similarities, saying “I’m most excited because I see how they’re tackling the problem of visual communication in the same way that we tried to tackle that at Instagram.” Loom is looking to double-down there, potentially adding the ability to Like and follow videos from your favorite productivity gurus or sharpest co-workers.

Loom is also prepping some of its most requested features. The startup is launching an iOS app next month with Android coming the first half of 2020, improving its video editor with blurring for hiding your bad hair day and stitching to connect multiple takes. New branding options will help external sales pitches and presentations look right. What I’m most excited for is transcription, which is also slated for the first half of next year through a partnership with another provider, so you can skim or search a Loom. Sometimes even watching at 2X speed is too slow.

But the point of raising a massive $30 million Series B just a year after Loom’s $11 million Kleiner-led Series A is to nail the enterprise product and sales process. To date, Loom has focused on a bottom-up distribution strategy similar to Dropbox. It tries to get so many individual employees to use Loom that it becomes a team’s default collaboration software. Now it needs to grow up so it can offer the security and permissions features IT managers demand. Loom for teams is rolling out in beta access this year before officially launching in early 2020.

Loom’s bid to become essential to the enterprise, though, is its team video library. This will let employees organize their Looms into folders of a knowledge base so they can explain something once on camera, and everyone else can watch whenever they need to learn that skill. No more redundant one-off messages begging for a team’s best employees to stop and re-teach something. The Loom dashboard offers analytics on who’s actually watching your videos. And integration directly into popular enterprise software suites will let recipients watch without stopping what they’re doing.

To build out these features Loom has already grown to a headcount of 45. It’s also hired away former head of growth at Dropbox Nicole Obst, head of design for Slack Joshua Goldenberg, and VP of commercial product strategy for Intercom Matt Hodges.


Still, the elephants in the room remain Slack and Microsoft Teams. Right now, they’re mainly focused on text messaging with some additional screensharing and video chat integrations. They’re not building Loom-style asynchronous video messaging…yet. “We want to be clear about the fact that we don’t think we’re in competition with Slack or Microsoft Teams at all. We are a complementary tool to chat” Thomas insists. But given the similar productivity and communication ethos, those incumbents could certainly opt to compete. Slack already has 12 million daily users it could provide with video tools.

Loom co-founder and CEO Joe Thomas

Hodges, Loom’s head of marketing, tells me “I agree Slack and Microsoft could choose to get into this territory, but what’s the opportunity cost for them in doing so? It’s the classic build vs. buy vs. integrate argument.” Slack bought screensharing tool Screenhero, but partners with Zoom and Google for video chat. Loom will focus on being easily integratable so it can plug into would-be competitors. And Hodges notes that “Delivering asynchronous video recording and sharing at scale is non-trivial. Loom holds a patent on its streaming, transcoding, and storage technology, which has proven to provide a competitive advantage to this day.”

The tea leaves point to video invading more and more of our communication, so I expect rival startups and features to Loom will crop up. Vidyard and Wistia’s Soapbox are already pushing into the space. As long as it has the head start, Loom needs to move as fast as it can. “It’s really hard to maintain focus to deliver on the core product experience that we set out to deliver versus spreading ourselves too thin. And this is absolutely critical” Thomas tells me.

One thing that could set Loom apart? A commitment to financial fundamentals. “When you grow really fast, you can sometimes lose sight of what is the core reason for a business entity to exist, which is to become profitable. . . Even in a really bold market where cash can be cheap, we’re trying to keep profitability at the top of our minds.”


By Josh Constine

Coralogix announces $10M Series A to bring more intelligence to logging

Coralogix, a startup that wants to bring automation and intelligence to logging, announced a $10 million Series A investment today.

The round was led by Aleph with participation from StageOne Ventures, Janvest Capital Partners and 2B Angels. Today’s investment brings the total raised to $16.2 million, according to the company.

CEO and co-founder Ariel Assaraf says his company focuses on two main areas: logging and analysis. The startup has been doing traditional applications performance monitoring up until now, but today, it also announced it was getting into security logging, where it tracks logs for anomalies and shares this information with security information and event management (SEIM) tools.

“We do standard log analytics in terms of ingesting, parsing, visualizing, alerting and searching for log data at scale using scaled, secure infrastructure,” Assaraf said. In addition, the company has developed a set of algorithms to analyze the data, and begin to understand patterns of expected behavior, and how to make use of that data to recognize and solve problems in an automated fashion.

“So the idea is to generally monitor a system automatically for customers plus giving them the tools to quickly drill down into data, understand how it behaves and get context to the issues that they see,” he said.

For instance, the tool could recognize that a certain sequence of events like a user logging in, authenticating that user and redirecting him or her to the application or website. All of those events happen every time, so if there is something different, the system will recognize that and share the information with DevOps team that something is amiss.

The company, which has offices in Tel Aviv, San Francisco and Kiev, was founded in 2015. It already has 1500 customers including Postman, Fiverr, KFC and Caesars Palace. They’ve been able to build the company with just 30 people to this point, but want to expand the sales and marketing team to help build it out the customer base further. The new money should help in that regard.


By Ron Miller

Vivun snags $3M seed round to bring order to pre-sales

Vivun, a startup that wants to help companies keep better track of pre-sales data announced a $3 million seed round today led by Unusual Ventures, the venture firm run by Harness CEO Jyoti Bansal.

Vivun founder and CEO Matt Darrow says that pre-sales team works more closely with the customer than anyone else, delivering demos and proof of concepts, and generally helping sales get over the finish line. While sales has CRM to store knowledge about the customer, pre-sales has been lacking a tool to track info about their interactions with customers, and that’s what his company built.

“The main problem that we solve is we give technology to those pre-sales leaders to run and operate their teams, but then take those insights from the group that knows more about the technology and the customer than anybody else, and we deliver that across the organization to the product team, sales team and executive staff,” Darrow explained.

Darrow is a Zuora alumni, and his story is similar to that company’s founder Tien Tzuo, who built the first billing system for Salesforce, then founded Zuroa to build a subscription billing system for everyone else. Similarly, Darrow built a pre-sales tool for Zuroa after finding there wasn’t anything else out there that was devoted specifically to tracking that kind of information.

“At Zuora, I had to build everything from scratch. After the IPO, I realized that this is something that every tech company can take advantage of because every technology company will really need this role to be of high value and impact,” he said.

The company not only tracks information via a mobile app and browser tool, it also has a reporting dashboard to help companies understand and share the information the pre-sales team is hearing from the customer. For example, they might know that x number of customers have been asking for a certain feature, and this information can be organized and passed onto other parts of the company.

Screenshot: Vivun

Bansal, who was previously CEO and co-founder at AppDynamics, a company he sold to Cisco for $3.7 billion just before its IPO in 2017, saw a company filling a big hole in the enterprise software ecosystem. He is not just an investor, he’s also a customer.

“To be successful, a technology company needs to understand three things: where it will be in five years, what its customers need right now, and what the market wants that it’s not currently providing. Pre-sales has answers to all three questions and is a strategically important department that needs management, analytics, and tools for accelerating deals. Yet, no one was making software for this critical department until Vivun,” he said in a statement.

The company was founded in 2018 and has been bootstrapped until now. It spent the first year building out the product. Today, the company has 20 customers including SignalFx (acquired by Splunk in August for $1.05 billion) and Harness.


By Ron Miller

Making sense of a multi-cloud, hybrid world at KubeCon

More than 12,000 attendees gathered this week in San Diego to discuss all things containers, Kubernetes and cloud-native at KubeCon.

Kubernetes, the container orchestration tool, turned five this year, and the technology appears to be reaching a maturity phase where it accelerates beyond early adopters to reach a more mainstream group of larger business users.

That’s not to say that there isn’t plenty of work to be done, or that most enterprise companies have completely bought in, but it’s clearly reached a point where containerization is on the table. If you think about it, the whole cloud-native ethos makes sense for the current state of computing and how large companies tend to operate.

If this week’s conference showed us anything, it’s an acknowledgment that it’s a multi-cloud, hybrid world. That means most companies are working with multiple public cloud vendors, while managing a hybrid environment that includes those vendors — as well as existing legacy tools that are probably still on-premises — and they want a single way to manage all of this.

The promise of Kubernetes and cloud-native technologies, in general, is that it gives these companies a way to thread this particular needle, or at least that’s the theory.

Kubernetes to the rescue

Photo: Ron Miller/TechCrunch

If you were to look at the Kubernetes hype cycle, we are probably right about at the peak where many think Kubernetes can solve every computing problem they might have. That’s probably asking too much, but cloud-native approaches have a lot of promise.

Craig McLuckie, VP of R&D for cloud-native apps at VMware, was one of the original developers of Kubernetes at Google in 2014. VMware thought enough of the importance of cloud-native technologies that it bought his former company, Heptio, for $550 million last year.

As we head into this phase of pushing Kubernetes and related tech into larger companies, McLuckie acknowledges it creates a set of new challenges. “We are at this crossing the chasm moment where you look at the way the world is — and you look at the opportunity of what the world might become — and a big part of what motivated me to join VMware is that it’s successfully proven its ability to help enterprise organizations navigate their way through these disruptive changes,” McLuckie told TechCrunch.

He says that Kubernetes does actually solve this fundamental management problem companies face in this multi-cloud, hybrid world. “At the end of the day, Kubernetes is an abstraction. It’s just a way of organizing your infrastructure and making it accessible to the people that need to consume it.

“And I think it’s a fundamentally better abstraction than we have access to today. It has some very nice properties. It is pretty consistent in every environment that you might want to operate, so it really makes your on-prem software feel like it’s operating in the public cloud,” he explained.

Simplifying a complex world

One of the reasons Kubernetes and cloud-native technologies are gaining in popularity is because the technology allows companies to think about hardware differently. There is a big difference between virtual machines and containers, says Joe Fernandes, VP of product for Red Hat cloud platform.

“Sometimes people conflate containers as another form of virtualization, but with virtualization, you’re virtualizing hardware, and the virtual machines that you’re creating are like an actual machine with its own operating system. With containers, you’re virtualizing the process,” he said.

He said that this means it’s not coupled with the hardware. The only thing it needs to worry about is making sure it can run Linux, and Linux runs everywhere, which explains how containers make it easier to manage across different types of infrastructure. “It’s more efficient, more affordable, and ultimately, cloud-native allows folks to drive more automation,” he said.

Bringing it into the enterprise

Photo: Ron Miller/TechCrunch

It’s one thing to convince early adopters to change the way they work, but as this technology enters the mainstream. Gabe Monroy, partner program manager at Microsoft says to carry this technology to the next level, we have to change the way we talk about it.


By Ron Miller

Linear takes $4.2M led by Sequoia to build a better bug tracker and more

Software will eat the world, as the saying goes, but in doing so, some developers are likely to get a little indigestion. That is to say, building products requires working with disparate and distributed teams, and while developers may have an ever-growing array of algorithms, APIs and technology at their disposal to do this, ironically the platforms to track it all haven’t evolved with the times. Now three developers have taken their own experience of that disconnect to create a new kind of platform, Linear, which they believe addresses the needs of software developers better by being faster and more intuitive. It’s bug tracking you actually want to use.

Today, Linear is announcing a seed round of $4.2 million led by Sequoia, with participation also from Index Ventures and a number of investors, startup founders and others that will also advise Linear as it grows. They include Dylan Field (Founder and CEO, Figma), Emily Choi (COO, Coinbase), Charlie Cheever (Co-Founder of Expo & Quora), Gustaf Alströmer (Partner, Y Combinator), Tikhon Berstram (Co-Founder, Parse), Larry Gadea (CEO, Envoy), Jude Gomila (CEO, Golden), James Smith (CEO, Bugsnag), Fred Stevens-Smith (CEO, Rainforest), Bobby Goodlatte, Marc McGabe, Julia DeWahl and others.

Cofounders Karri Saarinen, Tuomas Artman, and Jori Lallo — all Finnish but now based in the Bay Area — know something first-hand about software development and the trials and tribulations of working with disparate and distributed teams. Saarinen was previously the principal designer of Airbnb, as well as the first designer of Coinbase; Artman had been staff engineer and architect at Uber; and Lallo also had been at Coinbase as a senior engineer building its API and front end.

“When we worked at many startups and growth companies we felt that the tools weren’t matching the way we’re thinking or operating,” Saarinen said in an email interview. “It also seemed that no-one had took a fresh look at this as a design problem. We believe there is a much better, modern workflow waiting to be discovered. We believe creators should focus on the work they create, not tracking or reporting what they are doing. Managers should spend their time prioritizing and giving direction, not bugging their teams for updates. Running the process shouldn’t sap your team’s energy and come in the way of creating.”

Linear cofounders (from left): KarriSaarinen, Jori Lallo, and Tuomas Artma

All of that translates to, first and foremost, speed and a platform whose main purpose is to help you work faster. “While some say speed is not really a feature, we believe it’s the core foundation for tools you use daily,” Saarinen noted.

A ⌘K command calls up a menu of shortcuts to edit an issue’s status, assign a task, and more so that everything can be handled with keyboard shortcuts. Pages load quickly and synchronise in real time (and search updates alongside that). Users can work offline if they need to. And of course there is also a dark mode for night owls.

The platform is still very much in its early stages. It currently has three integrations based on some of the most common tools used by developers — GitHub (where you can link Pull Requests and close Linear issues on merge), Figma designs (where you can get image previews and embeds of Figma designs), and Slack (you can create issues from Slack and then get notifications on updates). There are plans to add more over time.

We started solving the problem from the end-user perspective, the contributor, like an engineer or a designer and starting to address things that are important for them, can help them and their teams,” Saarinen said. “We aim to also bring clarity for the teams by making the concepts simple, clear but powerful. For example, instead of talking about epics, we have Projects that help track larger feature work or tracks of work.”

Indeed, speed is not the only aim with Linear. Saarinen also said another area they hope to address is general work practices, with a take that seems to echo a turn away from time spent on manual management and more focus on automating that process.

“Right now at many companies you have to manually move things around, schedule sprints, and all kinds of other minor things,” he said. “We think that next generation tools should have built in automated workflows that help teams and companies operate much more effectively. Teams shouldn’t spend a third or more of their time a week just for running the process.”

The last objective Linear is hoping to tackle is one that we’re often sorely lacking in the wider world, too: context.

“Companies are setting their high-level goals, roadmaps and teams work on projects,” he said. “Often leadership doesn’t have good visibility into what is actually happening and how projects are tracking. Teams and contributors don’t always have the context or understanding of why they are working on the things, since you cannot follow the chain from your task to the company goal. We think that there are ways to build Linear to be a real-time picture of what is happening in the company when it comes to building products, and give the necessary context to everyone.”

Linear is a late entrant in a world filled with collaboration apps, and specifically workflow and collaboration apps targeting the developer community. These include not just Slack and GitHub, but Atlassian’s Trello and Jira, as well as Asana, Basecamp and many more.

Saarinen would not be drawn out on which of these (or others) that it sees as direct competition, noting that none are addressing developer issues of speed, ease of use and context as well as Linear is.

“There are many tools in the market and many companies are talking about making ‘work better,’” he said. “And while there are many issue tracking and project management tools, they are not supporting the workflow of the individual and team. A lot of the value these tools sell is around tracking work that happens, not actually helping people to be more effective. Since our focus is on the individual contributor and intelligent integration with their workflow, we can support them better and as a side effect makes the information in the system more up to date.”

Stephanie Zhan, the partner at Sequoia whose speciality is seed and Series A investments and who has led this round, said that Linear first came on her radar when it first launched its private beta (it’s still in private beta and has been running a waitlist to bring on new users. In that time it’s picked up hundreds of companies, including Pitch, Render, Albert, Curology, Spoke, Compound and YC startups including Middesk, Catch and Visly). The company had also been flagged by one of Sequoia’s Scouts, who invested earlier this year

Sequoia Logo Natalie Miyake

Although Linear is based out of San Francisco, it’s interesting that the three founders’ roots are in Finland (with Saarinen in Helsinki this week to speak at the Slush event), and brings up an emerging trend of Silicon Valley VCs looking at founders from further afield than just their own back yard.

“The interesting thing about Linear is that as they’re building a software company around the future of work, they’re also building a remote and distributed team themselves,” Zahn said. The company currently has only four employees.

In that vein, we (and others, it seems) had heard that Sequoia — which today invests in several Europe-based startups, including Tessian, Graphcore, Klarna, Tourlane, Evervault  and CEGX — has been considering establishing a more permanent presence in this part of the world, specifically in London.

Sources familiar with the firm, however, tell us that while it has been sounding out VCs at other firms, saying a London office is on the horizon might be premature, as there are as yet no plans to set up shop here. However, with more companies and European founders entering its portfolio, and as more conversations with VCs turn into decisions to make the leap to help Sequoia source more startups, we could see this strategy turning around quickly.


By Ingrid Lunden

Celonis, a leader in big data process mining for enterprises, nabs $290M on a $2.5B valuation

More than $1 trillion is spent by enterprises annually on “digital transformation” — the investments that organizations make to update their IT systems to get more out of them and reduce costs — and today one of the bigger startups that’s built a platform to help get the ball rolling is announcing a huge round of funding.

Celonis, a leader in the area of process mining — which tracks data produced by a company’s software, as well as how the software works, in order to provide guidance on what a company could and should do to improve it — has raised $290 million in a Series C round of funding, giving the startup a post-money valuation of $2.5 billion.

Celonis was founded in 2011 in Munich — an industrial and economic center in Germany that you could say is a veritable petri dish when it comes to large business in need of digital transformation — and has been cash-flow positive from the start. In fact, Celonis waited until it was nearly six years old to take its first outside funding (prior to this Series C it had picked up less than $80 million, see here and here).

The size and timing of this latest equity injection is due to seizing the moment, and tapping networks of people to do so. It has already been growing at a triple-digit rate, with customers like Siemens, Cisco, L’Oreal, Deutsche Telekom and Vodafone among them. 

“Our tech has become its own category with a lot of successful customers,” Bastian Nominacher, the co-CEO who co-founded the company with Alexander Rinke and Martin Klenk, said in an interview. “It’s a key driver for sustainable business operations, and we felt that we needed to have the right network of people to keep momentum in this market.”

To that end, this latest round’s participants lines up with the company’s strategic goals. It is being led by Arena Holdings — an investment firm led by Feroz Dewan — with Ryan Smith, co-founder and CEO of Qualtrics; and Tooey Courtemanche, founder and CEO of Procore, also included, alongside previous investors 83North and Accel.

Celonis said Smith will be a special advisor, working alongside another strategic board member, Hybris founder Carsten Thoma. Dewan, meanwhile, used to run hedge funds for Tiger Global (among other roles) and currently sits on the board of directors of Kraft Heinz.

“Celonis is the clear market leader in a category with open-ended potential. It has demonstrated an enviable record of growth and value creation for its customers and partners,” said Dewan in a statement. “Celonis helps companies capitalise on two inexorable trends that cut across geography and industry: the use of data to enable faster, better decision-making and the desire for all businesses to operate at their full potential.”

The core of Celonis’ offering is to provide process mining around an organizations’ IT systems. Nominacher said that this could include anything from 5 to over 100 different pieces of software, with the main idea being that Celonis’s platform monitors a company’s whole solar system of apps, so to speak, in order to produce its insights — providing and “X-ray” view of the situation, in the words of Rinke.

Those insights, in turn, are used either by the company itself, or by consultants engaged by the organization, to make further suggestions, whether that’s to implement something like robotic process automation (RPA) to speed up a specific process, or use a different piece of software to crunch data better, or reconfigure how staff is deployed, and so on. This is not a one-off thing: the idea is continuous monitoring to pick up new patterns or problems.

In recent times, the company has started to expand the system into a wider set of use cases, by providing tools to monitor operations and customer experience, and to apply its process mining engine to a wider set of company sizes beyond large enterprises, and by bringing in more AI to its basic techniques.

Interestingly, Nominacher said that there are currently no plans to, say, extend into RPA or other “fixing” tools itself, pointing to a kind of laser strategy that is likely part of what has helped it grow so well up to now.

“It’s important to focus on the relevant parts of what you provide,” he said. “We one layer, one that can give the right guidance.”


By Ingrid Lunden

Google makes converting VMs to containers easier with the GA of Migrate for Anthos

At its Cloud Next event in London, Google today announced a number of product updates around its managed Anthos platform, as well as Apigee and its Cloud Code tools for building modern applications that can then be deployed to Google Cloud or any Kubernetes cluster.

Anthos is one of the most important recent launches for Google, as it expands the company’s reach outside of Google Cloud and into its customers’ data centers and, increasingly, edge deployments. At today’s event, the company announced that it is taking Anthos Migrate out of beta and into general availability. The overall idea behind Migrate is that it allows enterprises to take their existing, VM-based workloads and convert them into containers. Those machines could come from on-prem environments, AWS, Azure or Google’s Compute Engine, and — once converted — can then run in Anthos GKE, the Kubernetes service that’s part of the platform.

“That really helps customers think about a leapfrog strategy, where they can maintain the existing VMs but benefit from the operational model of Kubernetes,” Google VP of product management Jennifer Lin told me. “So even though you may not get all of the benefits of a cloud-native container day one, what you do get is consistency in the operational paradigm.”

As for Anthos itself, Lin tells me that Google is seeing some good momentum. The company is highlighting a number of customers at today’s event, including Germany’s Kaeser Kompressoren and Turkey’s Denizbank.

Lin noted that a lot of financial institutions are interested in Anthos. “A lot of the need to do data-driven applications, that’s where Kubernetes has really hit that sweet spot because now you have a number of distributed datasets and you need to put a web or mobile front end on [them],” she explained. “You can’t do it as a monolithic app, you really do need to tap into a number of datasets — you need to do real-time analytics and then present it through a web or mobile front end. This really is a sweet spot for us.”

Also new today is the general availability of Cloud Code, Google’s set of extensions for IDEs like Visual Studio Code and IntelliJ that helps developers build, deploy and debug their cloud-native applications more quickly. The idea, here, of course, is to remove friction from building containers and deploying them to Kubernetes.

In addition, Apigee hybrid is now also generally available. This tool makes it easier for developers and operators to manage their APIs across hybrid and multi-cloud environments, a challenge that is becoming increasingly common for enterprises. This makes it easier to deploy Apigee’s API runtimes in hybrid environments and still get the benefits of Apigees monitoring and analytics tools in the cloud. Apigee hybrid, of course, can also be deployed to Anthos.


By Frederic Lardinois

SocialRank sells biz to Trufan, pivots to a mobile LinkedIn

What do you do when your startup idea doesn’t prove big enough? Run it as a scrawny but profitable lifestyle business? Or sell it to a competitor and take another swing at the fences? Social audience analytics and ad targeting startup SocialRank chose the latter and is going for glory.

Today, SocialRank announced it’s sold its business, brand, assets, and customers to influencer marketing campaign composer and distributor Trufan which will run it as a standalone product. But SocialRank’s team isn’t joining up. Instead, the full six-person staff is sticking together to work on a mobile-first professional social network called Upstream aiming to nip at LinkedIn.

SocialRank co-founder and CEO Alex Taub

Started in 2014 amidst a flurry of marketing analytics tools, SocialRank had raised $2.1 million from Rainfall Ventures and others before hitting profitability in 2017. But as the business plateaued, the team saw potential to use data science about people’s identity to get them better jobs.

“A few months ago we decided to start building a new product (what has become Upstream). And when we came to the conclusion to go all-in on Upstream, we knew we couldn’t run two businesses at the same time” SocialRank co-founder and CEO Alex Taub tells me. “We decided then to run a bit of a process. We ended up with a few offers but ultimately felt like Trufan was the best one to continue the business into the future.”

The move lets SocialRank avoid stranding its existing customers like the NFL, Netflix, and Samsung that rely on its audience segmentation software. Instead, they’ll continue to be supported by Trufan where Taub and fellow co-founder Michael Schonfeld will become advisors.

“While we built a sustainable business, we essentially knew that if we wanted to go real big, we would need to go to the drawing board” Taub explains.

SocialRank

Two-year-old Trufan has raised $1.8 million Canadian from Round13 Capital, local Toronto startup Clearbanc’s founders, and several NBA players. Trufan helps brands like Western Union and Kay Jewellers design marketing initiatives that engage their customer communities through social media. It’s raising an extra $400,000 USD in venture debt from Round13 to finance the acquisition, which should make Trufan cash-flow positive by the end of the year.

Why isn’t the SocialRank team going along for the ride? Taub said LinkedIn was leaving too much opportunity on the table. While it’s good for putting resumes online and searching for people, “All the social stuff are sort of bolt-ons that came after Facebook and Twitter arrived. People forget but LinkedIn is the oldest active social network out there”, Taub tells me, meaning it’s a bit outdated.

Trufan’s team

Rather than attack head-on, the newly forged Upstream plans to pick the Microsoft-owned professional network apart with better approaches to certain features. “I love the idea of ‘the unbundling of LinkedIn’, ala what’s been happening with Craigslist for the past few years” says Taub. “The first foundational piece we are building is a social professional network around giving and getting help. We’ll also be focused on the unbundling of the groups aspect of LinkedIn.”

Taub concludes that entrepreneurs can shackle themselves to impossible goals if they take too much venture capital for the wrong business. As we’ve seen with SoftBank, investors demand huge returns that can require pursuing risky and unsustainable expansion strategies.

“We realized that SocialRank had potential to be a few hundred million dollar in revenue business but venture growth wasn’t exactly the model for it” Taub says. “You need the potential of billions in revenue and a steep growth curve.” A professional network for the smartphone age has that kind of addressable market. And the team might feel better getting out of bed each day knowing they’re unlocking career paths for people instead of just getting them to click ads.


By Josh Constine