Work Life Ventures raises $5M for debut enterprise SaaS seed fund

Brianne Kimmel had no trouble transitioning from angel investor to general partner.

Initially setting out to garner $3 million in capital commitments, Kimmel, in just two weeks’ time, closed on $5 million for her debut venture capital fund Work Life Ventures. The enterprise SaaS-focused vehicle boasts an impressive roster of limited partners, too, including the likes of Zoom chief executive officer Eric Yuan, InVision CEO Clark Valberg, Twitch co-founder Kevin Lin, Cameo CEO Steven Galanis, Andreessen Horowitz general partners’ Marc Andreessen and Chris Dixon, Initialized Capital GP Garry Tan and fund-of-funds Slow Ventures, Felicis Ventures and NFX.

At the helm of the new fund, Kimmel joins a small group of solo female general partners. Dream Machine’s Alexia Bonatsos is targeting $25 million for her first fund. Day One Ventures’ Masha Drokova raised an undisclosed amount for her debut effort last year. Sarah Cone launched Social Impact Capital, a fund specializing in impact investing, in 2016, among others.

Meanwhile, venture capital fundraising is poised to reach all-time highs in 2019. In the first half of the year, a total of $20.6 billion in new capital was introduced to the startup market across more than 100 funds.

For most, the process of raising a successful venture fund can be daunting and difficult. For well-connected and established investors in the Bay Area, like Kimmel, raising a fund can be relatively seamless. Given the speed and ease of fund one in Kimmel’s case, she plans to raise her second fund with a $25 million target in as little as 12 months.

“The desire for the fund is to take a step back and imagine how do we build great consumer experiences in the workplace,” Kimmel tells TechCrunch.

Kimmel has been an active angel investor for years, sourcing top enterprise deals via SaaS School, an invite-only workshop she created to educate early-stage SaaS founders on SaaS growth, monetization, sales and customer success. Prior to launching SaaS School, which will continue to run twice a year, Kimmel led go-to-market strategy at Zendesk, where she built the Zendesk for Startups program.

 

View this post on Instagram

 

✔ available offline #google #remote

A post shared by Work Life Ventures (@worklifevc) on

“You start by advising, then you start with very small angel checks,” Kimmel explains. “I reached this inflection point and it felt like a great moment to raise my own fund. I had friends like Ryan Hoover, who started Weekend Fund focused on consumer, and Alexia is one of my friends as well and I saw what she was doing with Dream Machine, which is also consumer. It felt like it was the right time to come out with a SaaS-focused fund.”

Emerging from stealth today, Work Life Ventures will invest up to $150,000 per company. To date, Kimmel has backed three companies with capital from the fund: Tandem, Dover and Command E. The first, Tandem, was amongst the most coveted deals in Y Combinator’s latest batch of companies. The startup graduated from the accelerator with millions from Andreessen Horowitz at a valuation north of $30 million.

Dover, another recent YC alum, provides recruitment software and is said to be backed by Founders Fund in addition to Work Life. Command E, currently in beta, is a tool that facilities search across multiple desktop applications. Kimmel is also an angel investor in Webflow, Girlboss, TechCrunch Disrupt 2018 Startup Battlefield winner Forethought, Voyage and others.

Work Life is betting on the consumerization of the enterprise, or the idea that the next best companies for modern workers will be consumer-friendly tools. In her pitch deck to LPs, she cites the success of Superhuman and Notion, a well-designed email tool and a note-taking app, respectively, as examples of the heightened demand for digestible, easy-to-use B2B products.

“The next generation of applications for the workplace sees people spinning out of Uber, Coinbase and Airbnb,” Kimmel said. “They’ve faced these challenges inside their highly efficient tech company so we are seeing more consumer product builders deeply passionate about the enterprise space.”

But Kimmel doesn’t want to bury her thesis in jargon, she says, so you won’t find any B2B lingo on Work Life’s website or Instagram.

She’s focusing her efforts on a more important issue often vacant from conversations surrounding investment in the future of work: diversity & inclusion.

Kimmel meets with every new female hire of her portfolio companies. Though it’s “increasingly non-scalable,” she admits, it’s part of a greater effort to ensure her companies are thoughtful about D&I from the beginning: “Because I have a very focused fund, it’s about maintaining this community and ensuring that people feel like their voices are heard,” she said.

“I want to be mindful that I am a female GP and I feel honored to have that title.”


By Kate Clark

Nvidia and VMware team up to make GPU virtualization easier

Nvidia today announced that it has been working with VMware to bring its virtual GPU technology (vGPU) to VMware’s vSphere and VMware Cloud on AWS. The company’s core vGPU technology isn’t new, but it now supports server virtualization to enable enterprises to run their hardware-accelerated AI and data science workloads in environments like VMware’s vSphere, using its new vComputeServer technology.

Traditionally (as far as that’s a thing in AI training), GPU-accelerated workloads tend to run on bare metal servers, which were typically managed separately from the rest of a company’s servers.

“With vComputeServer, IT admins can better streamline management of GPU accelerated
virtualized servers while retaining existing workflows and lowering overall operational costs,” Nvidia explains in today’s announcement. This also means that businesses will reap the cost benefits of GPU sharing and aggregation, thanks to the improved utilization this technology promises.

vComputeServer works with VMware Sphere, vCenter and vMotion, as well as VMware Cloud. Indeed, the two companies are using the same vComputeServer technology to also bring accelerated GPU services to VMware Cloud on AWS. This allows enterprises to take their containerized applications and from their own data center to the cloud as needed — and then hook into AWS’s other cloud-based technologies.

2019 08 25 1849

“From operational intelligence to artificial intelligence, businesses rely on GPU-accelerated computing to make fast, accurate predictions that directly impact their bottom line,” said Nvidia founder and CEO Jensen Huang . “Together with VMware, we’re designing the most advanced and highest performing GPU- accelerated hybrid cloud infrastructure to foster innovation across the enterprise.”


By Frederic Lardinois

Enterprise software is hot — who would have thought?

Once considered the most boring of topics, enterprise software is now getting infused with such energy that it is arguably the hottest space in tech.

It’s been a long time coming. And it is the developers, software engineers and veteran technologists with deep experience building at-scale technologies who are energizing enterprise software. They have learned to build resilient and secure applications with open-source components through continuous delivery practices that align technical requirements with customer needs. And now they are developing application architectures and tools for at-scale development and management for enterprises to make the same transformation.

“Enterprise had become a dirty word, but there’s a resurgence going on and Enterprise doesn’t just mean big and slow anymore,” said JD Trask, co-founder of Raygun enterprise monitoring software. “I view the modern enterprise as one that expects their software to be as good as consumer software. Fast. Easy to use. Delivers value.”

The shift to scale out computing and the rise of the container ecosystem, driven largely by startups, is disrupting the entire stack, notes Andrew Randall, vice president of business development at Kinvolk.

In advance of TechCrunch’s first enterprise-focused event, TC Sessions: Enterprise, The New Stack examined the commonalities between the numerous enterprise-focused companies who sponsor us. Their experiences help illustrate the forces at play behind the creation of the modern enterprise tech stack. In every case, the founders and CTOs recognize the need for speed and agility, with the ultimate goal of producing software that’s uniquely in line with customer needs.

We’ll explore these topics in more depth at The New Stack pancake breakfast and podcast recording at TC Sessions: Enterprise. Starting at 7:45 a.m. on Sept. 5, we’ll be serving breakfast and hosting a panel discussion on “The People and Technology You Need to Build a Modern Enterprise,” with Sid Sijbrandij, founder and CEO, GitLab, and Frederic Lardinois, enterprise writer and editor, TechCrunch, among others. Questions from the audience are encouraged and rewarded, with a raffle prize awarded at the end.

Traditional virtual machine infrastructure was originally designed to help manage server sprawl for systems-of-record software — not to scale out across a fabric of distributed nodes. The disruptors transforming the historical technology stack view the application, not the hardware, as the main focus of attention. Companies in The New Stack’s sponsor network provide examples of the shift toward software that they aim to inspire in their enterprise customers. Portworx provides persistent state for containers; NS1 offers a DNS platform that orchestrates the delivery internet and enterprise applications; Lightbend combines the scalability and resilience of microservices architecture with the real-time value of streaming data.

“Application development and delivery have changed. Organizations across all industry verticals are looking to leverage new technologies, vendors and topologies in search of better performance, reliability and time to market,” said Kris Beevers, CEO of NS1. “For many, this means embracing the benefits of agile development in multicloud environments or building edge networks to drive maximum velocity.”

Enterprise software startups are delivering that value, while they embody the practices that help them deliver it.

The secrets to speed, agility and customer focus

Speed matters, but only if the end result aligns with customer needs. Faster time to market is often cited as the main driver behind digital transformation in the enterprise. But speed must also be matched by agility and the ability to adapt to customer needs. That means embracing continuous delivery, which Martin Fowler describes as the process that allows for the ability to put software into production at any time, with the workflows and the pipeline to support it.

Continuous delivery (CD) makes it possible to develop software that can adapt quickly, meet customer demands and provide a level of satisfaction with benefits that enhance the value of the business and the overall brand. CD has become a major category in cloud-native technologies, with companies such as CircleCI, CloudBees, Harness and Semaphore all finding their own ways to approach the problems enterprises face as they often struggle with the shift.

“The best-equipped enterprises are those [that] realize that the speed and quality of their software output are integral to their bottom line,” Rob Zuber, CTO of CircleCI, said.

Speed is also in large part why monitoring and observability have held their value and continue to be part of the larger dimension of at-scale application development, delivery and management. Better data collection and analysis, assisted by machine learning and artificial intelligence, allow companies to quickly troubleshoot and respond to customer needs with reduced downtime and tight DevOps feedback loops. Companies in our sponsor network that fit in this space include Raygun for error detection; Humio, which provides observability capabilities; InfluxData with its time-series data platform for monitoring; Epsagon, the monitoring platform for serverless architectures and Tricentis for software testing.

“Customer focus has always been a priority, but the ability to deliver an exceptional experience will now make or break a “modern enterprise,” said Wolfgang Platz, founder of Tricentis, which makes automated software testing tools. “It’s absolutely essential that you’re highly responsive to the user base, constantly engaging with them to add greater value. This close and constant collaboration has always been central to longevity, but now it’s a matter of survival.”

DevOps is a bit overplayed, but it still is the mainstay workflow for cloud-native technologies and critical to achieving engineering speed and agility in a decoupled, cloud-native architecture. However, DevOps is also undergoing its own transformation, buoyed by the increasing automation and transparency allowed through the rise of declarative infrastructure, microservices and serverless technologies. This is cloud-native DevOps. Not a tool or a new methodology, but an evolution of the longstanding practices that further align developers and operations teams — but now also expanding to include security teams (DevSecOps), business teams (BizDevOps) and networking (NetDevOps).

“We are in this constant feedback loop with our customers where, while helping them in their digital transformation journey, we learn a lot and we apply these learnings for our own digital transformation journey,” Francois Dechery, chief strategy officer and co-founder of CloudBees, said. “It includes finding the right balance between developer freedom and risk management. It requires the creation of what we call a continuous everything culture.”

Leveraging open-source components is also core in achieving speed for engineering. Open-source use allows engineering teams to focus on building code that creates or supports the core business value. Startups in this space include Tidelift and open-source security companies such as Capsule8. Organizations in our sponsor portfolio that play roles in the development of at-scale technologies include The Linux Foundation, the Cloud Native Computing Foundation and the Cloud Foundry Foundation.

“Modern enterprises … think critically about what they should be building themselves and what they should be sourcing from somewhere else,” said Chip Childers, CTO of Cloud Foundry Foundation . “Talented engineers are one of the most valuable assets a company can apply to being competitive, and ensuring they have the freedom to focus on differentiation is super important.”

You need great engineering talent, giving them the ability to build secure and reliable systems at scale while also the trust in providing direct access to hardware as a differentiator.

Is the enterprise really ready?

The bleeding edge can bleed too much for the likings of enterprise customers, said James Ford, an analyst and consultant.

“It’s tempting to live by mantras like ‘wow the customer,’ ‘never do what customers want (instead build innovative solutions that solve their need),’ ‘reduce to the max,’ … and many more,” said Bernd Greifeneder, CTO and co-founder of Dynatrace . “But at the end of the day, the point is that technology is here to help with smart answers … so it’s important to marry technical expertise with enterprise customer need, and vice versa.”

How the enterprise adopts new ways of working will affect how startups ultimately fare. The container hype has cooled a bit and technologists have more solid viewpoints about how to build out architecture.

One notable trend to watch: The role of cloud services through projects such as Firecracker. AWS Lambda is built on Firecracker, the open-source virtualization technology, built originally at Amazon Web Services . Firecracker serves as a way to get the speed and density that comes with containers and the hardware isolation and security capabilities that virtualization offers. Startups such as Weaveworks have developed a platform on Firecracker. OpenStack’s Kata containers also use Firecracker.

“Firecracker makes it easier for the enterprise to have secure code,” Ford said. It reduces the surface security issues. “With its minimal footprint, the user has control. It means less features that are misconfigured, which is a major security vulnerability.”

Enterprise startups are hot. How they succeed will determine how well they may provide a uniqueness in the face of the ever-consuming cloud services and at-scale startups that inevitably launch their own services. The answer may be in the middle with purpose-built architectures that use open-source components such as Firecracker to provide the capabilities of containers and the hardware isolation that comes with virtualization.

Hope to see you at TC Sessions: Enterprise. Get there early. We’ll be serving pancakes to start the day. As we like to say, “Come have a short stack with The New Stack!”


By Frederic Lardinois

Every TC Sessions: Enterprise 2019 ticket includes a free pass to Disrupt SF

Shout out to all the savvy enterprise software startuppers. Here’s a quick, two-part money-saving reminder. Part one: TC Sessions: Enterprise 2019 is right around the corner on September 5, and you have only two days left to buy an early-bird ticket and save yourself $100. Part two: for every Session ticket you buy, you get one free Expo-only pass to TechCrunch Disrupt SF 2019.

Save money and increase your ROI by completing one simple task: buy your early-bird ticket today.

About 1,000 members of enterprise software’s power-house community will join us for a full day dedicated to exploring the current and future state of enterprise software. It’s certainly tech’s 800-pound gorilla — a $500 billion industry. Some of the biggest names and brightest minds will be on hand to discuss critical issues all players face — from early-stage startups to multinational conglomerates.

The day’s agenda features panel discussions, main-stage talks, break-out sessions and speaker Q&As on hot topics including intelligent marketing automation, the cloud, data security, AI and quantum, just to name a few. You’ll hear from people like SAP CEO Bill McDermott, Aaron Levie, Box co-founder, Jim Clarke, Director of Quantum Hardware at Intel and many many more.

Customer experience is always a hot topic, so be sure to catch this main-stage panel discussion with Amit Ahuja (Adobe), Julie Larson-Green (Qualtrics) and Peter Reinhardt (Segment).

The Trials and Tribulations of Experience Management: As companies gather more data about their customers and employees, it should theoretically improve their experience, but myriad challenges face companies as they try to pull together information from a variety of vendors across disparate systems, both in the cloud and on prem. How do you pull together a coherent picture of your customers, while respecting their privacy and overcoming the technical challenges?

TC Sessions: Enterprise 2019 takes place in San Francisco on September 5. Take advantage of this two-part money-saving opportunity. Buy your early-bird ticket by August 16 at 11:59 p.m. (PT) to save $100. And score a free Expo-only pass to TechCrunch Disrupt SF 2019 for every ticket you buy. We can’t wait to see you in September!

Interested in sponsoring TC Sessions: Enterprise? Fill out this form and a member of our sales team will contact you.


By Emma Comeau

Monday.com raises $150M more, now at $1.9B valuation, for workplace collaboration tools

Workplace collaboration platforms have become a crucial cornerstone of the modern office: workers’ lives are guided by software and what we do on our computers, and collaboration tools provide a way for us to let each other know what we’re working on, and how we’re doing it, in a format that’s (at best) easy to use without too much distraction from the work itself.

Now, Monday.com, one of the faster growing of these platforms, is announcing a $150 million round of equity funding — a whopping raise that points both to its success so far, and the opportunity ahead for the wider collaboration space, specifically around better team communication and team management.

The Series D funding — led by Sapphire Ventures, with Hamilton Lane, HarbourVest Partners, ION Crossover Partners and Vintage Investment Partners also participating — is coming in at what reliable sources tell me is a valuation of $1.9 billion, or nearly four times Monday.com’s valuation when it last raised money a year ago.

The big bump is in part to the company’s rapid expansion: it now has 80,000 organizations as customers, up from a mere 35,000 a year ago, with the number of actual employees within those organizations numbering as high as 4,000 employees, or as little as two, spanning some 200 industry verticals, including a fair number of companies that are non-technical in their nature (but still rely on using software and computers to get their work done). The client list includes Carlsberg, Discovery Channel, Phillips, Hulu and WeWork and a number of Fortune 500 companies.

“We have built flexibility into the platform,” Roy Mann, the CEO who co-founded the company with Eran Zinman, which is one reason he believes why it’s found a lot of stickiness among the wider field of knowledge workers looking for products that work not unlike the apps that they use as average consumers.

All those figures are also helping to put Monday.com on track for an IPO in the near future, said Roy Mann, the CEO who co-founded the company with Eran Zinman.

“An IPO is something that we are considering for the future, he said in an interview. “We are just at 1% of our potential, and we’re in a position for huge growth.” In terms of when that might happen, he and Zinman would not specify a timeline, but Mann added that this potentially could be the last round before a public listing.

On the other hand, there are some big plans up ahead for the startup, including adding in a free usage tier (to date, the only free on Monday.com is a free trial, all usage tiers have been otherwise paid), expanding geographically and into more languages, and continuing to develop the integration and automation technology that underpins the product. The aim is to have 200 applications working with Monday.com by the end of this year.

While the company is already generating cash and it has just raised a significant round, in the current market, that has definitely not kept venture-backed startups from raising more. (Monday.com, which first started life as Dapulse in 2014, has raised $234.1 million to date.)

Monday.com’s rise and growth are coming at an interesting moment for productivity software. There have been software platforms on the market for years aimed at helping workers communicate with each other, as well as to better track how projects and other activity are progressing. Despite being a relatively late entrant, Slack, the now-public workplace chat platform, has arguably defined the space. (It has even entered the modern work lexicon, where people now Slack each other, as a verb.)

That speaks to the opportunity to build products even when it looks like the market is established, but also — potentially — competition. Mann and Zinman are clear to point out that they definitely do not see Slack as a rival, though. “We even use Slack ourselves in the office,” Zinman noted.

The closer rivals, they note, are the likes of Airtable (now valued at $1.1 billion) and Notion (which we’ve confirmed with the company was raising and has now officially closed a round of $10 million on an equally outsized valuation of $800 million), as well as the wider field of project management tools like Jira, Wrike and Asana — although as Mann playfully pointed out, all of those could also feasibly be integrated into Monday.com and they would work better…

The market is still so nascent for collaboration tools that even with this crowded field, Mann said he believes that there is room for everyone and the differentiations that each platform currently offers: Notion, he noted as an example, feels geared towards more personal workspace management, while Airtable is more about taking on spreadsheets.

Within that, Monday.com hopes to position itself as the ever-powerful and smart go-to place to get an overview of everything that’s happening, with low-chat noise and no need for technical knowledge to gain understanding.

“Monday.com is revolutionizing the workplace software market and we’re delighted to be partnering with Roy, Eran, and the rest of the team in their mission to transform the way people work,” said Rajeev Dham, managing partner at Sapphire Ventures, in a statement. “Monday.com delivers the quality and ease of use typically reserved for consumer products to the enterprise, which we think unlocks significant value for workers and organizations alike.”


By Ingrid Lunden

AlphaSense, a search engine for analysis and business intel, raises $50M led by Innovation Endeavors

Google and its flagship search portal opened the door to the possibilities of how to build a business empire on the back of organising and navigating the world’s information, as found on the internet. Now, a startup that’s built a search engine tailored to the needs of enterprises and their own quests for information has raised a round of funding to see if it can do the same for the B2B world.

AlphaSense, which provides a way for companies to quickly amass market intelligence around specific trends, industries and more to help them make business decisions, has closed a $50 million round of funding, a Series B that it’s planning to use to continue enhancing its product and expanding to more verticals.

Today, the company today counts some 1,000 clients on its books, with a heavy emphasis on investment banks and related financial services companies. That’s in part because of how the company got its start: Finnish co-founder and CEO Jaakko (Jack) Kokko he had been an analyst at Morgan Stanley in a past life and understood the labor and time pain points of doing market research, and decided to build a platform to help shorted a good part of the information gathering process.

“My experience as an analyst on Wall Street showed me just how fragmented information really was,” he said in an interview, citing as one example how complex sites like those of the FDA are not easy to navigate to look for new information an updates — the kind of thing that a computer would be much more adept at monitoring and flagging. “Even with the best tools and services, it still was really hard to manually get the work done, in part because of market volatility and the many factors that cause it. We can now do that with orders of magnitude more efficiency. Firms can now gather information in minutes that would have taken an hour. AlphaSense does the work of the best single analyst, or even a team of them.”

(Indeed, the “alpha” of AlphaSense appears to be a reference to finance: it’s a term that refers to the ability of a trader or portfolio manager to beat the typical market return.)

The lead investor in this round is very notable and says something about the company’s ambitions. It’s Innovation Endeavors, the VC firm backed by Eric Schmidt, who had been the CEO of none other than Google (the pace-setter and pioneer of the search-as-business model) for a decade, and then stayed on as chairman and ultimately board member of Google and then Alphabet (its later holding company) until just last June.

Schmidt presided over Google at what you could argue was its most important time, gaining speed and scale and transitioning from an academic idea into full-fledged, huge public business whose flagship product has now entered the lexicon as a verb and (through search and other services like Android and YouTube) is a mainstay of how the vast majority of the world uses the web today. As such he is good at spotting opportunities and gaps in the market, and while enterprise-based needs will never be as prominent as those of mass-market consumers, they can be just as lucrative.

“Information is the currency of business today, but data is overwhelming and fragmented, making it difficult for business professionals to find the right insights to drive key business decisions,” he said in a statement. “We were impressed by the way AlphaSense solves this with its AI and search technology, allowing businesses to proceed with the confidence that they have the right information driving their strategy.”

This brings the total raised by AlphaSense to $90 million, with other investors in this round including Soros Fund Management LLC and other unnamed existing investors. Previous backers had included Tom Glocer (the former Reuters CEO who himself is working on his own fintech startup, a security firm called BlueVoyant), the MassChallenge incubator, Tribeca Venture Partners and others. Kokko said AlphaSense is not disclosing its valuation at this point. (I’m guessing though that it’s definitely on the up.)

There have been others that have worked to try to tackle the idea of providing more targeted, and business focused search portals, from the likes of Wolfram Alpha (another alpha!) through to Lexis Nexis and others like Bloomberg’s terminals, FactSet, Business Quant and many more.

One interesting aspect of AlphaSense is how it’s both focused on pulling in requests as well as set up to push information to its users based on previous search parameters. Currently these are set up to only provide information, but over time, there is a clear opportunity to build services to let the engines take on some of the actions based on that information, such as adjusting asking prices for sales and other transactions.

“There are all kinds of things we could do,” said Kokko. “This is a massive untapped opportunity. But we’re not taking the human out of the loop, ever. Humans are the right ones to be making final decisions, and we’re just about helping them make those faster.”


By Ingrid Lunden

OneTrust raises $200M at a $1.3B valuation to help organizations navigate online privacy rules

GDPR, and the newer California Consumer Privacy Act, have given a legal bite to ongoing developments in online privacy and data protection: it’s always good practice for companies with an online presence to take measures to safeguard people’s data, but now failing to do so can land them in some serious hot water.

Now — to underscore the urgency and demand in the market — one of the bigger companies helping organizations navigate those rules is announcing a huge round of funding. OneTrust, which builds tools to help companies navigate data protection and privacy policies both internally and with its customers, has raised $200 million in a Series A led by Insight that values the company at $1.3 billion.

It’s an outsized round for a Series A, being made at an equally outsized valuation — especially considering that the company is only three years old — but that’s because, according to CEO Kabir Barday, of the wide-ranging nature of the issue, and OneTrust’s early moves and subsequent pole position in tackling it.

“We’re talking about an operational overhaul in a company’s practices,” Barday said in an interview. “That requires the right technology and reach to be able to deliver that at a low cost.” Notably, he said that OneTrust wasn’t actually in search of funding — it’s already generating revenue and could have grown off its own balance sheet — although he noted that having the capitalization and backing sends a signal to the market and in particular to larger organizations of its stability and staying power.

Currently, OneTrust has around 3,000 customers across 100 countries (and 1,000 employees), and the plan will be to continue to expand its reach geographically and to more businesses. Funding will also go towards the company’s technology: it already has 50 patents filed and another 50 applications in progress, securing its own IP in the area of privacy protection.

OneTrust offers technology and services covering three different aspects of data protection and privacy management.

Its Privacy Management Software helps an organization manage how it collects data, and it generates compliance reports in line with how a site is working relative to different jurisdictions. Then there is the famous (or infamous) service that lets internet users set their preferences for how they want their data to be handled on different sites. The third is a larger database and risk management platform that assesses how various third-party services (for example advertising providers) work on a site and where they might pose data protection risks.

These are all provided either as a cloud-based software as a service, or an on-premises solution, depending on the customer in question.

The startup also has an interesting backstory that sheds some light on how it was founded and how it identified the gap in the market relatively early.

Alan Dabbiere, who is the co-chairman of OneTrust, had been the chairman of Airwatch — the mobile device management company acquired by VMware in 2014 (Airwatch’s CEO and founder, John Marshall, is OneTrust’s other co-chairman). In an interview, he told me that it was when they were at Airwatch — where Barday had worked across consulting, integration, engineering and product management — that they began to see just how a smartphone “could be a quagmire of information.”

“We could capture apps that an employee was using so that we could show them to IT to mitigate security risks,” he said, “but that actually presented a big privacy issue. If [the employee] has dyslexia [and uses a special app for it] or if the employee used a dating app, you’ve now shown things to IT that you shouldn’t have.”

He admitted that in the first version of the software, “we weren’t even thinking about whether that was inappropriate, but then we quickly realised that we needed to be thinking about privacy.”

Dabbiere said that it was Barday who first brought that sensibility to light, and “that is something that we have evolved from.” After that, and after the VMware sale, it seemed a no-brainer that he and Marshall would come on to help the new startup grow.

Airwatch made a relatively quick exit, I pointed out. His response: the plan is to stay the course at OneTrust, with a lot more room for expansion in this market. He describes the issues of data protection and privacy as “death by 1,000 cuts.” I guess when you think about it from an enterprising point of view, that essentially presents 1,000 business opportunities.

Indeed, there is obvious growth potential to expand not just its funnel of customers, but to add in more services, such as proactive detection of malware that might leak customers’ data (which calls to mind the recently-fined breach at British Airways), as well as tools to help stop that once identified.

While there are a million other companies also looking to fix those problems today, what’s interesting is the point from which OneTrust is starting: by providing tools to organizations simply to help them operate in the current regulatory climate as good citizens of the online world.

This is what caught Insight’s eye with this investment.

“OneTrust has truly established themselves as leaders in this space in a very short timeframe, and are quickly becoming for privacy professionals what Salesforce became for salespeople,” said Richard Wells of Insight. “They offer such a vast range of modules and tools to help customers keep their businesses compliant with varying regulatory laws, and the tailwinds around GDPR and the upcoming CCPA make this an opportune time for growth. Their leadership team is unparalleled in their ambition and has proven their ability to convert those ambitions into reality.”

Wells added that while this is a big round for a Series A it’s because it is something of an outlier — not a mark of how Series A rounds will go soon.

“Investors will always be interested in and keen to partner with companies that are providing real solutions, are already established and are led by a strong group of entrepreneurs,” he said in an interview. “This is a company that has the expertise to help solve for what could be one of the greatest challenges of the next decade. That’s the company investors want to partner with and grow, regardless of fund timing.”


By Ingrid Lunden

Software development analytics platform Sourced launches an enterprise edition

Sourced, or source{d}, as the company styles its name, provides developers and IT departments with deeper analytics into their software development lifecycle. It analyzes codebases, offers data about which APIs are being used and provides general information about developer productivity and other metrics. Today, Sourced is officially launching its Enterprise Edition, which gives IT departments and executives a number of advanced tools for managing their software portfolios and the processes they use to create them.

“Sourced enables large engineering organizations to better monitor, measure and manage their IT initiatives by providing a platform that empowers IT leaders with actionable data,” said the company’s CEO Eiso Kant. “The release of Sourced Enterprise is a major milestone towards proper engineering observability of the entire software development life cycle in enterprises.”

Engineering Effectiveness Efficiency

Since it’s one of the hallmarks of every good enterprise tools, it’s no surprise that Sourced Enterprise also offers features like role-based access control and other security features, as well as dedicated support and SLAs. IT departments can also run the service on-premise, or use it as a SaaS product.

The company also tells me that the enterprise version can handle larger codebases so that even complex queries over a large dataset only takes a few seconds (or minutes if it’s a really large codebase). To create these complex queries, the enterprise edition includes a number of add-ons to allow users to create these advanced queries. “These are available upon request and tailored to help enterprises overcome specific challenges that often rely on machine learning capabilities, such as identity matching or code duplication analysis,” the company says.

Cloud Migration

The service integrates with most commonly used project management and business intelligence tools, but it also ships with Apache Superset, an open-source business intelligence application that offers built-in data visualization capabilities.

These visualization capabilities are also now part of the Sourced Community Edition, which is now available in private beta.

“Sourced Enterprise gave us valuable insights into the Cloud Foundry codebase evolution, development patterns, trends, and dependencies, all presented in easy-to-digest dashboards,” said Chip Childers, the CTO of the open-source Cloud Foundry Foundation, which tested the Enterprise Edition ahead of its launch. “If you really want to understand what’s going on in your codebase and engineering department, Sourced is the way to go.”

To date, the company has raised $10 million from Frst VC, Heartcore Capital, Xavier Niel and others.

Talent Assessment Managment


By Frederic Lardinois

Apollo raises $22M for its GraphQL platform

Apollo, a San Francisco-based startup that provides a number of developer and operator tools and services around the GraphQL query language, today announced that it has raised a $22 million growth funding round co-led by Andreessen Horowitz and Matrix Partners. Existing investors Trinity Ventures and Webb Investment Network also participated in this round.

Today, Apollo is probably the biggest player in the GraphQL ecosystem. At its core, the company’s services allow businesses to use the Facebook-incubated GraphQL technology to shield their developers from the patchwork of legacy APIs and databases as they look to modernize their technology stacks. The team argues that while REST APIs that talked directly to other services and databases still made sense a few years ago, it doesn’t anymore now that the number of API endpoints keeps increasing rapidly.

Apollo replaces this with what it calls the Data Graph. “There is basically a missing piece where we think about how people build apps today, which is the piece that connects the billions of devices out there,” Apollo co-founder and CEO Geoff Schmidt told me. “You probably don’t just have one app anymore, you probably have three, for the web, iOS and Android . Or maybe six. And if you’re a two-sided marketplace you’ve got one for buyers, one for sellers and another for your ops team.” Managing the interfaces between all of these apps quickly becomes complicated and means you have to write a lot of custom code for every new feature. The promise of the Data Graph is that developers can use GraphQL to query the data in the graph and move on, all without having to write the boilerplate code that typically slows them down. At the same time, the ops teams can use the Graph to enforce access policies and implement other security features.

“If you think about it, there’s a lot of analogies to what happened with relational databases in the 80s,” Schmidt said. “There is a need for a new layer in the stack. Previously, your query planner was a human being, not a piece of software, and a relational databased is a piece of software that would just give you a database. And you needed a way to query that database and that syntax was called SQL.”

Geoff Schmidt, Apollo CEO, and Matt DeBergalis, CTO.

GraphQL itself, of course, is open source. Apollo is now building a lot of the proprietary tools around this idea of the Data Graph that make it useful for businesses. There’s a cloud-hosted graph manager, for example, that lets you track your schema, as well as a dashboard to track performance, as well as integrations with continuous integration services. “It’s basically a set of services that keep track of the metadata about your graph and help you manage the configuration of your graph and all the workflows and processes around it,” Schmidt said.

The development of Apollo didn’t come out of nowhere. The founders previously launched Meteor, a framework and set of hosted services that allowed developers to write their apps in JavaScript, both on the front-end and back-end. Meteor was tightly coupled to MongoDB, though, which worked well for some use cases but also held the platform back in the long run. With Apollo, the team decided to go in the opposite direction and instead build a platform that makes being database agnostic the core of its value proposition.

The company also recently launched Apollo Federation, which makes it easier for businesses to work with a distributed graph. Sometimes, after all, your data lives in lots of different places. Federation allows for a distributed architecture that combines all of the different data sources into a single schema that developers can then query.

Schmidt tells me that the company started to get some serious traction last year and by December, it was getting calls from VCs that heard from their portfolio companies that they were using Apollo.

The company plans to use the new funding to build out its technology to scale its field team to support the enterprises that bet on its technology, including the open source technologies that power both the service.

“I see the Data Graph as a core new layer of the stack, just like we as an industry invested in the relational databased for decades, making it better and better,” Schmidt said. “We’re still finding new uses for SQL and that relational database model. I think the Data Graph is going to be the same way.”


By Frederic Lardinois

RealityEngines.AI raises $5.25M seed round to make ML easier for enterprises

RealityEngines.AI, a research startup that wants to help enterprises make better use of AI, even when they only have incomplete data, today announced that it has raised a $5.25 million seed funding round. The round was led by former Google CEO and Chairman Eric Schmidt and Google founding board member Ram Shriram. Khosla Ventures, Paul Buchheit, Deepchand Nishar, Elad Gil, Keval Desai, Don Burnette and others also participated in this round.

The fact that the service was able to raise from this rather prominent group of investors clearly shows that its overall thesis resonates. The company, which doesn’t have a product yet, tells me that it specifically wants to help enterprises make better use of the smaller and noisier datasets they have and provide them with state-of-the-art machine learning and AI systems that they can quickly take into production. It also aims to provide its customers with systems that can explain their predictions and are free of various forms of bias, something that’s hard to do when the system is essentially a black box.

As RealityEngines CEO Bindu Reddy, who was previously the head of products for Google Apps, told me the company plans to use the funding to build out its research and development team. The company, after all, is tackling some of the most fundamental and hardest problems in machine learning right now — and that costs money. Some, like working with smaller datasets, already have some available solutions like generative adversarial networks that can augment existing datasets and that RealityEngines expects to innovate on.

Reddy is also betting on reinforcement learning as one of the core machine learning techniques for the platform.

Once it has its product in place, the plan is to make it available as a pay-as-you-go managed service that will make machine learning more accessible to large enterprise, but also to small and medium businesses, which also increasingly need access to these tools to remain competitive.


By Frederic Lardinois

Algorithmia raises $25M Series B for its AI automation platform

Algorithmia, a Seattle-based startup that offers a cloud-agnostic AI automation platform for enterprises, today announced a $25 million Series B funding round led by Norwest Partners. Madrona, Gradient Ventures, Work-Bench, Osage University Partners and Rakuten Ventures also participated in this round.

While the company started out five years ago as a marketplace for algorithms, it now mostly focuses on machine learning and helping enterprises take their models into production.

“It’s actually really hard to productionize machine learning models,” Algorithmia CEO Diego Oppenheimer told me. “It’s hard to help data scientists to not deal with data infrastructure but really being able to build out their machine learning and AI muscle.”

To help them, Algorithmia essentially built out a machine learning DevOps platform that allows data scientists to train their models on the platform and with the framework of their choice, bring it to Algorithmia — a platform that has already been blessed by their IT departments — and take it into production.

“Every Fortune 500 CIO has an AI initiative but they are bogged down by the difficulty of managing and deploying ML models,” said Rama Sekhar, a partner at Norwest Venture Partners, who has now joined the company’s board. “Algorithmia is the clear leader in building the tools to manage the complete machine learning lifecycle and helping customers unlock value from their R&D investments.”

With the new funding, the company will double down on this focus by investing in product development to solve these issues, but also by building out its team, with a plan to double its headcount over the next year. A year from now, Oppenheimer told me, he hopes that Algorithmia will be a household name for data scientists and, maybe more importantly, their platform of choice for putting their models into production.

“How does Algorithmia succeed? Algorithmia succeeds when our customers are able to deploy AI and ML applications,” Oppenheimer said. “And although there is a ton of excitement around doing this, the fact is that it’s really difficult for companies to do so.”

The company previously raised a $10.5 million Series A round led by Google’s AI fund. It’s customers now include the United Nations, a number of U.S. intelligence agencies and Fortune 500 companies. In total, over 90,000 engineers and data scientists are now on the platform.


By Frederic Lardinois

CloudBees acquires Electric Cloud to build out its software delivery management platform

CloudBees, the enterprise continuous integration and delivery service (and the biggest contributor to the Jenkins open-source automation server), today announced that it has acquired Electric Cloud, a continuous delivery and automation platform that first launched all the way back in 2002.

The two companies did not disclose the price of the acquisition, but CloudBees has raised a total of $113.2 million while Electric Cloud raised $64.6 million from the likes of  Rembrandt Venture Partners, U.S. Venture Partners, RRE Ventures and Next47.

CloudBees plans to integrate Electric Cloud’s application release automation platform into its offerings. Electric Flow’s 110 employees will join CloudBees.

“As of today, we provide customers with best-of-breed CI/CD software from a single vendor, establishing CloudBees as a continuous delivery powerhouse,” said Sacha Labourey, the CEO and co-founder of CloudBees, in today’s announcement. “By combining the strength of CloudBees, Electric Cloud, Jenkins and Jenkins X, CloudBees offers the best CI/CD solution for any application, from classic to Kubernetes, on-premise to cloud, self-managed to self-service.”

Electric Cloud offers its users a number of tools for automating their release pipelines and managing the application lifecycle afterward.

“We are looking forward to joining CloudBees and executing on our shared goal of helping customers build software that matters,” said Carmine Napolitano, CEO, Electric Cloud. “The combination of CloudBees’ industry-leading continuous integration and continuous delivery platform, along with Electric Cloud’s industry-leading application release orchestration solution, gives our customers the best foundation for releasing apps at any speed the business demands.”

As CloudBees CPO Christina Noren noted during her keynote at CloudBees’ developer conference today, the company’s customers are getting more sophisticated in their DevOps platforms, but they are starting to run into new problems now that they’ve reached this point.

“What we’re seeing is that these customers have disconnected and fragmented islands of information,” she said. “There’s the view that each development team has […] and there’s not a common language, there’s not a common data model, and there’s not an end-to-end process that unites from left to right, top to bottom.” This kind of integrated system is what CloudBees is building toward (and that competitors like GitLab would argue they already offer). Today’s announcement marks a first step into this direction toward building a full software delivery management platform, though others are likely to follow.

During his company’s developer conference, Labourey also today noted that CloudBees will profit from Electric Cloud’s long-standing expertise in continuous delivery and that the acquisition will turn CloudBees into a “DevOps powerhouse.”

Today’s announcement follows CloudBees’ acquisition of CI/CD tool CodeShip last year. As of now, CodeShip remains a stand-alone product in the company’s lineup. It’ll be interesting to see how CloudBees will integrate Electric Cloud’s products to build a more integrated system.

 


By Frederic Lardinois

Google Cloud brings on 27-year SAP veteran as it doubles down on enterprise adoption

Thomas Kurian, the newly-minted CEO of Google Cloud, used the company’s Cloud Next conference last week to lay out his vision for the future of Google’s cloud computing platform. That vision involves, in part, a hiring spree to give businesses that want to work with Google more people to talk to and get help from. Unsurprisingly, Kurian is also looking to put his stamp on the executive team, too, and today announced that former SAP executive Robert Enslin is joining Google Cloud as its new President of Global Customer Operations.

Enslin’s hire is another clear signal that Kurian is focused on enterprise customers. Enslin, after all, is a veteran of the enterprise business, with 27 years at SAP, where he served on the company’s executive board until he announced his resignation from the company earlier this month. After leading various parts of SAP, including as president of its cloud product portfolio, president of SAP North America and CEO of SAP Japan, Enslin announced that he had “a few more aspirations to fulfill.” Those aspirations, we now know, include helping Google Cloud expand its lineup of enterprise customers.

“Rob brings great international experience to his role having worked in South Africa, Europe, Asia and the United States—this global perspective will be invaluable as we expand Google Cloud into established industries and growth markets around the world,” Kurian writes in today’s announcement.

For the last two years, Google Cloud already had a President of Global Customer Operations, though, in the form of Paul-Henri Ferrand, a former Dell exec who was brought on by Google Cloud’s former CEO Diane Greene . Kurian says that Ferrand “has decided to take on a new challenge within Google.”

 


By Frederic Lardinois

Pixeom raises $15M for its software-defined edge computing platform

Pixeom, a startup that offers a software-defined edge computing platform to enterprises, today announced that it has raised a $15M funding round from Intel Capital, National Grid Partners and previous investor Samsung Catalyst Fund. The company plans to use the new funding to expands its go-to-market capacity and invest in product development.

If the Pixeom name sounds familiar, that may be because you remember it as a Raspberry Pie-based personal cloud platform. Indeed, that’s the service the company first launched back in 2014. It quickly pivoted to an enterprise model, though. As Pixeom CEO Sam Nagar told me, that pivot came about after a conversation the company had with Samsung about adopting its product for that company’s needs. In addition, it was also hard to find venture funding. The original Pixeom device allowed users to set up their own personal cloud storage and other applications at home. While there is surely a market for these devices, especially among privacy conscious tech enthusiasts, it’s not massive, especially as users became more comfortable with storing their data in the cloud. “One of the major drivers [for the pivot] was that it was actually very difficult to get VC funding in an industry where the market trends were all skewing towards the cloud,” Nagar told me.

At the time of its launch, Pixeom also based its technology on OpenStack, the massive open source project that helps enterprises manage their own data centers, which isn’t exactly known as a service that can easily be run on a single machine, let alone a low-powered one. Today, Pixeom uses containers to ship and manage its software on the edge.

What sets Pixeom apart from other edge computing platforms is that it can run on commodity hardware. There’s no need to buy a specific hardware configuration to run the software, unlike Microsoft’s Azure Stack or similar services. That makes it significantly more affordable to get started and allows potential customers to reuse some of their existing hardware investments.

Pixeom brands this capability as ‘software-defined edge computing’ and there is clearly a market for this kind of service. While the company hasn’t made a lot of waves in the press, more than a dozen Fortune 500 companies now use its services. With that, the company now has revenues in the double-digit millions and its software manages more than a million devices worldwide.

As is so often the case in the enterprise software world, these clients don’t want to be named, but Nagar tells me that they include one of the world’s largest fast food chains, for example, which uses the Pixeom platform in its stores.

On the software side, Pixeom is relatively cloud agnostic. One nifty feature of the platform is that it is API-compatible with Google Cloud Platform, AWS and Azure and offers an extensive subset of those platforms’ core storage and compute services, including a set of machine learning tools. Pixeom’s implementation may be different, but for an app, the edge endpoint on a Pixeom machine reacts the same way as its equivalent endpoint on AWS, for example.

Until now, Pixeom mostly financed its expansion — and the salary of its over 90 employees — from its revenue. It only took a small funding round when it first launched the original device (together with a Kickstarter campaign). Technically, this new funding round is part of this, so depending on how you want to look at this, we’re either talking about a very large seed round or a Series A round.


By Frederic Lardinois

Scalyr launches PowerQueries for advanced log management

Log management service Scalyr today announced the beta launch of PowerQueries, its new tools for letting its users create advanced search operations as they manage their log files and troubleshoot potential issues. The new service allows users to perform complex actions to group, transform, filter and sort their large data sets, as well as to create table lookups and joins. The company promises that these queries will happen just as fast as Scalyr’s standard queries and that getting started with these more advanced queries is pretty straightforward.

Scalyr founder and chairman Steve Newman argues that the company’s competitors may offer similar tools, but that ” their query languages are too complex, hard-to-learn and hard-to-use.” He also stressed that Scalyr made a conscious decision not to use any machine learning tools to power this and its other services to help admins and developers prioritize issues and instead decided to focus on its query language and making it easier for its users to manage their logs that way.

“So we thought about how we could leverage our strengths — real-time performance, ease-of-use and scalability — to provide similar but better functionality,” he said in today’s announcement. “As a result, we came up with a set of simple but powerful queries that address advanced use cases while improving the user experience dramatically. Like the rest of our solution, our PowerQueries are fast, easy-to-learn and easy-to-use.”

Current Scalyr customers cover a wide range of verticals. They include the likes of NBC Universal, Barracuda Networks, Spiceworks, John Hopkins University, Giphy, OKCupid and Flexport. Currently, Scalyr has over 300 paying customers. As Newman stressed, more than 4,500 employees from these customers regularly use the service. He attributes this to the fact that it’s relatively easy to use, thank’s to Scalyr’s focus on usability.

The company raised it’s last funding round — a $20 million Series A round — back in 2017. As Scalyr’s newly minted CEO Christine Heckart told me, though, the company is currently seeing rapid growth and has quickly added headcount in recent months to capitalize on this opportunity. Given this, I wouldn’t be surprised if we saw Scalyr raise another round in the not-so-distant future, especially considering that the log management market itself is also rapidly growing (and has changed quite a bit since Scalyr launched back in 2011) as more companies start their own digital transformation projects, which often allows them to replace some of their legacy IT tools with more modern systems.

 


By Frederic Lardinois