Scandit raises $80M as COVID-19 drives demand for contactless deliveries

Enterprise barcode scanner company Scandit has closed an $80 million Series C round, led by Silicon Valley VC firm G2VP. Atomico, GV, Kreos, NGP Capital, Salesforce Ventures and Swisscom Ventures also participated in the round — which brings its total raised to date to $123M.

The Zurich-based firm offers a platform that combines computer vision and machine learning tech with barcode scanning, text recognition (OCR), object recognition and augmented reality which is designed for any camera-equipped smart device — from smartphones to drones, wearables (e.g. AR glasses for warehouse workers) and even robots.

Use-cases include mobile apps or websites for mobile shopping; self checkout; inventory management; proof of delivery; asset tracking and maintenance — including in healthcare where its tech can be used to power the scanning of patient IDs, samples, medication and supplies.

It bills its software as “unmatched” in terms of speed and accuracy, as well as the ability to scan in bad light; at any angle; and with damaged labels. Target industries include retail, healthcare, industrial/manufacturing, travel, transport & logistics and more.

The latest funding injection follows a $30M Series B round back in 2018. Since then Scandit says it’s tripled recurring revenues, more than doubling the number of blue-chip enterprise customers, and doubling the size of its global team.

Global customers for its tech include the likes of 7-Eleven, Alaska Airlines, Carrefour, DPD, FedEx, Instacart, Johns Hopkins Hospital, La Poste, Levi Strauss & Co, Mount Sinai Hospital and Toyota — with the company touting “tens of billions of scans” per year on 100+ million active devices at this stage of its business.

It says the new funding will go on further pressing on the gas to grow in new markets, including APAC and Latin America, as well as building out its footprint and ops in North America and Europe. Also on the slate: Funding more R&D to devise new ways for enterprises to transform their core business processes using computer vision and AR.

The need for social distancing during the coronavirus pandemic has also accelerated demand for mobile computer vision on personal smart devices, according to Scandit, which says customers are looking for ways to enable more contactless interactions.

Another demand spike it’s seeing is coming from the pandemic-related boom in ‘Click & Collect’ retail and “millions” of extra home deliveries — something its tech is well positioned to cater to because its scanning apps support BYOD (bring your own device), rather than requiring proprietary hardware.

“COVID-19 has shone a spotlight on the need for rapid digital transformation in these uncertain times, and the need to blend the physical and digital plays a crucial role,” said CEO Samuel Mueller in a statement. “Our new funding makes it possible for us to help even more enterprises to quickly adapt to the new demand for ‘contactless business’, and be better positioned to succeed, whatever the new normal is.”

Also commenting on the funding in a supporting statement, Ben Kortlang, general partner at G2VP, added: “Scandit’s platform puts an enterprise-grade scanning solution in the pocket of every employee and customer without requiring legacy hardware. This bridge between the physical and digital worlds will be increasingly critical as the world accelerates its shift to online purchasing and delivery, distributed supply chains and cashierless retail.”


By Natasha Lomas

APIs are the next big SaaS wave

While the software revolution started out slowly, over the past few years it’s exploded and the fastest-growing segment to-date has been the shift towards software as a service or SaaS.

SaaS has dramatically lowered the intrinsic total cost of ownership for adopting software, solved scaling challenges and taken away the burden of issues with local hardware. In short, it has allowed a business to focus primarily on just that — its business — while simultaneously reducing the burden of IT operations.

Today, SaaS adoption is increasingly ubiquitous. According to IDG’s 2018 Cloud Computing Survey, 73% of organizations have at least one application or a portion of their computing infrastructure already in the cloud. While this software explosion has created a whole range of downstream impacts, it has also caused software developers to become more and more valuable.

The increasing value of developers has meant that, like traditional SaaS buyers before them, they also better intuit the value of their time and increasingly prefer businesses that can help alleviate the hassles of procurement, integration, management, and operations. Developer needs to address those hassles are specialized.

They are looking to deeply integrate products into their own applications and to do so, they need access to an Application Programming Interface, or API. Best practices for API onboarding include technical documentation, examples, and sandbox environments to test.

APIs tend to also offer metered billing upfront. For these and other reasons, APIs are a distinct subset of SaaS.

For fast-moving developers building on a global-scale, APIs are no longer a stop-gap to the future—they’re a critical part of their strategy. Why would you dedicate precious resources to recreating something in-house that’s done better elsewhere when you can instead focus your efforts on creating a differentiated product?

Thanks to this mindset shift, APIs are on track to create another SaaS-sized impact across all industries and at a much faster pace. By exposing often complex services as simplified code, API-first products are far more extensible, easier for customers to integrate into, and have the ability to foster a greater community around potential use cases.

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Graphics courtesy of Accel

Billion-dollar businesses building APIs

Whether you realize it or not, chances are that your favorite consumer and enterprise apps—Uber, Airbnb, PayPal, and countless more—have a number of third-party APIs and developer services running in the background. Just like most modern enterprises have invested in SaaS technologies for all the above reasons, many of today’s multi-billion dollar companies have built their businesses on the backs of these scalable developer services that let them abstract everything from SMS and email to payments, location-based data, search and more.

Simultaneously, the entrepreneurs behind these API-first companies like Twilio, Segment, Scale and many others are building sustainable, independent—and big—businesses.

Valued today at over $22 billion, Stripe is the biggest independent API-first company. Stripe took off because of its initial laser-focus on the developer experience setting up and taking payments. It was even initially known as /dev/payments!

Stripe spent extra time building the right, idiomatic SDKs for each language platform and beautiful documentation. But it wasn’t just those things, they rebuilt an entire business process around being API-first.

Companies using Stripe didn’t need to fill out a PDF and set up a separate merchant account before getting started. Once sign-up was complete, users could immediately test the API with a sandbox and integrate it directly into their application. Even pricing was different.

Stripe chose to simplify pricing dramatically by starting with a single, simple price for all cards and not breaking out cards by type even though the costs for AmEx cards versus Visa can differ. Stripe also did away with a monthly minimum fee that competitors had.

Many competitors used the monthly minimum to offset the high cost of support for new customers who weren’t necessarily processing payments yet. Stripe flipped that on its head. Developers integrate Stripe earlier than they integrated payments before, and while it costs Stripe a lot in setup and support costs, it pays off in brand and loyalty.

Checkr is another excellent example of an API-first company vastly simplifying a massive yet slow-moving industry. Very little had changed over the last few decades in how businesses ran background checks on their employees and contractors, involving manual paperwork and the help of 3rd party services that spent days verifying an individual.

Checkr’s API gives companies immediate access to a variety of disparate verification sources and allows these companies to plug Checkr into their existing on-boarding and HR workflows. It’s used today by more than 10,000 businesses including Uber, Instacart, Zenefits and more.

Like Checkr and Stripe, Plaid provides a similar value prop to applications in need of banking data and connections, abstracting away banking relationships and complexities brought upon by a lack of tech in a category dominated by hundred-year-old banks. Plaid has shown an incredible ramp these past three years, from closing a $12 million Series A in 2015 to reaching a valuation over $2.5 billion this year.

Today the company is fueling an entire generation of financial applications, all on the back of their well-built API.

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Graphics courtesy of Accel

Then and now

Accel’s first API investment was in Braintree, a mobile and web payment systems for e-commerce companies, in 2011. Braintree eventually sold to, and became an integral part of, PayPal as it spun out from eBay and grew to be worth more than $100 billion. Unsurprisingly, it was shortly thereafter that our team decided to it was time to go big on the category. By the end of 2014 we had led the Series As in Segment and Checkr and followed those investments with our first APX conference in 2015.

Plaid, Segment, Auth0, and Checkr had only raised Seed or Series A financings! And we are even more excited and bullish on the space. To convey just how much API-first businesses have grown in such a short period of time, we thought it would be useful perspective to share some metrics over the past five years, which we’ve broken out in the two visuals included above in this article.

While SaaS may have pioneered the idea that the best way to do business isn’t to actually build everything in-house, today we’re seeing APIs amplify this theme. At Accel, we firmly believe that APIs are the next big SaaS wave — having as much if not more impact as its predecessor thanks to developers at today’s fastest-growing startups and their preference for API-first products. We’ve actively continued to invest in the space (in companies like, Scale, mentioned above).

And much like how a robust ecosystem developed around SaaS, we believe that one will continue to develop around APIs. Given the amount of progress that has happened in just a few short years, Accel is hosting our second APX conference to once again bring together this remarkable community and continue to facilitate discussion and innovation.

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Graphics courtesy of Accel


By Arman Tabatabai

Segment CEO Peter Reinhardt is coming to TechCrunch Sessions: Enterprise to discuss customer experience management

There are few topics as hot right now in the enterprise as customer experience management, that ability to collect detailed data about your customers, then deliver customized experiences based on what you have learned about them. To help understand the challenges companies face building this kind of experience, we are bringing Segment CEO Peter Reinhardt to TechCrunch Sessions: Enterprise on September 5 in San Francisco (p.s. early-bird sales end this Friday, August 9).

At the root of customer experience management is data — tons and tons of data. It may come from the customer journey through a website or app, basic information you know about the customer or the customer’s transaction history. It’s hundreds of signals and collecting that data in order to build the experience where Reinhardt’s company comes in.

Segment wants to provide the infrastructure to collect and understand all of that data. Once you have that in place, you can build data models and then develop applications that make use of the data to drive a better experience.

Reinhardt, and a panel that includes Qualtrics’ Julie Larson-Green and Adobe’s Amit Ahuja, will discuss with TechCrunch editors the difficulties companies face collecting all of that data to build a picture of the customer, then using it to deliver more meaningful experiences for them. See the full agenda here.

Segment was born in the proverbial dorm room at MIT when Reinhardt and his co-founders were students there. They have raised more than $280 million since inception. Customers include Atlassian, Bonobos, Instacart, Levis and Intuit .

Early-bird tickets to see Peter and our lineup of enterprise influencers at TC Sessions: Enterprise are on sale for just $249 when you book here; but hurry, prices go up by $100 after this Friday!

Are you an early-stage startup in the enterprise-tech space? Book a demo table for $2,000 and get in front of TechCrunch editors and future customers/investors. Each demo table comes with four tickets to enjoy the show.


By Ron Miller

Verified Expert Growth Marketing Agency: Growth Pilots

Growth Pilots is one of the more exclusive performance marketing agencies in San Francisco, but they know how to help high-growth startups excel at paid marketing. CEO and founder Soso Sazesh credits his personal experiences as an entrepreneur along with his team’s deep understanding of high-growth company needs and challenges as to what sets Growth Pilots apart. Whether you’re a founder of a seed or Series D stage startup, learn more about Growth Pilots’ approach to growth and partnerships.

Advice to early-stage founders

“I think a lot of times, especially at the early stage, founders don’t have a lot of time so they’re willing to find the path of least resistance to get their paid acquisition channels up and running. If things are not properly set up and managed, this can lead to a false negative in terms of writing off a channel’s effectiveness or scalability. It’s worth talking to an expert, even if it’s just for advice, to ensure you don’t fall into this trap.”

On Growth Pilots’ operations

[pullquote align=”right” author=”Guillaume McIntyre, SF, Head of Acquisition Marketing, Instacart”]“They have good business acumen, move fast and work as an extension to your internal team.”[/pullquote]
“Something we pride ourselves on is working with relatively few clients at a time so we can really focus all of our team’s efforts and energy on doing the highest quality work. Each of our team members works on a maximum of two to three accounts, and therefore they’re able to get very invested in each client’s business and integrated into their team. We really try to simulate the internal team dynamics as much as possible and pairing that with our external capabilities and expertise.”

Below, you’ll find the rest of the founder reviews, the full interview, and more details like pricing and fee structures. This profile is part of our ongoing series covering startup growth marketing agencies with whom founders love to work, based on this survey and our own research. The survey is open indefinitely, so please fill it out if you haven’t already.


Interview with Growth Pilots Founder and CEO Soso Sazesh

Yvonne Leow: Tell me a little bit about your background and how you got into growth.

Soso Sazesh: I grew up in northern Minnesota where there is no tech industry whatsoever and then after high school, I came out to Silicon Valley and got exposed to the epicenter of the technology industry. I became very interested in startups and hustled to find startup internships so I could get experience and learn how they operated.

After a couple of startup internships, I got accepted to UC Berkeley and that gave me even more exposure to the startup ecosystem with all of the startup events and resources that UC Berkeley had to offer. I worked on a couple of startup projects while I was at UC Berkeley, and I taught myself scrappy product management and how to get software built using contract developers.

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As I was graduating, I had just launched my second startup project and it was growing organically but very slowly, and I realized I didn’t know how to acquire users. So I joined an SEM agency and that’s where I learned and fell in love with digital marketing. I helped companies successfully acquire users at scale using Google AdWords and finally solved for the missing skills I needed. After a couple of years, I ventured off to try my hand at starting a company again, this time with more experience and a co-founder.

We went through the AngelPad accelerator and raised a small round of capital – what would be called a pre-seed round nowadays. It was an eye-opening experience. I gained a lot of appreciation for what it meant to be a startup operator hustling to build a product people wanted and trying to acquire customers.

Startups are a roller coaster and we had a lot of ups and downs. We ultimately we’re not able to raise our next round of funding due to lack of traction and decided to shut the company down. As we were winding down, people in my network started coming to me looking for help with their digital marketing channels.

I started consulting for a few startups and identified an interesting opportunity, which was that very few startups knew how to do paid acquisition well and very few agencies were well-suited to work with startups. There was a huge gap in the market.

Some of these founders would come to me after trying to get paid acquisition to work on their own, but they didn’t have the time or expertise to do it properly. Some of them would hire an agency and not see results, because most agencies don’t understand the needs and grow-or-die nature of fast-moving startups. These agencies wouldn’t allocate the time and resources needed to really understand these startups and work closely with them to make their paid channels work.

So that’s exactly what I did and I was able to achieve results for them. I combined my previous expertise as a digital marketer with my recent startup operator experience and this allowed me to successfully help the startups I was consulting for. Due to the network effects in the startup community, I soon had more companies who wanted to work with me than I could take on alone and that’s what led me to start Growth Pilots.

Yvonne Leow: Awesome. How does Growth Pilots differentiate itself from other agencies?

Soso Sazesh: Growth Pilots is “the” performance marketing agency for high-growth companies. We’ve worked with over 120 venture-backed companies over the past five and a half years, and we have really tailored our service offering around the unique needs and challenges of high-growth companies as they move from stage to stage. We’ve had this internal framework that breaks down paid acquisition needs based on company stage.

The first is what we call the early stage. At the early stage, companies are looking to establish and validate their paid marketing channels. These companies are typically seed stage or Series A startups looking to find channels that allow them to hit their metrics to achieve their goals for their next round of funding. These companies require a lot of time and attention, which is a bit paradoxical because their budgets are not very large.

The second stage is what we call the scaling stage. This is when companies are trying to achieve escape velocity and growth matters above everything else. This typically happens at the Series A through Series C stage. Their business model is working and ideally within sight of positive unit economics if not already there, but the main focus is acquiring customers at the fastest rate possible and less so on efficiency or profitability. This stage requires all hands on deck and non-stop testing and optimization to squeeze out as much velocity as possible from each channel. The stakes are very high at this stage and category-leading companies often emerge here.

Finally is the late stage. These companies are typically Series C or Series D and beyond and preparing for an exit or IPO. Growth often becomes slightly less important at this stage and the focus shifts to efficiency and improved unit economics. Optimization becomes even more critical at this stage and measurement and attribution get a lot more sophisticated to fully measure the impact of the paid channels.

The needs of companies are vastly different at each of these stages. Our focus is on helping companies achieve their goals within each stage and helping them move to the next stage.

Yvonne Leow: Cool. If I’m a founder and I’d like to work with Growth Pilots, what can I expect are our next steps?

Soso Sazesh: The first step is understanding the business and assessing if there’s a mutual fit. We’re very selective about the companies we take on because over the course of the five and a half years we’ve been able to establish which business models and verticals are conducive to paid marketing success.

For instance, marketplaces, e-commerce, B2B SaaS, mobile apps, and other business models where there is a transactional component is typically a good candidate for paid acquisition. We want to know what the goals are and we want to be able to confidently say that we believe we can achieve the goals at hand. If we can’t say that, we won’t take the company on.

Step two is determining what stage of our framework the company falls into and what the opportunity looks like. If it’s an early stage company, it’s more about assessing the product, the market, and how reachable their target customers are online.

For scaling-stage and late-stage companies that are already up and running, we’ll dive into their current accounts and assess what the opportunity looks like and put together a strategy proposal based on our findings and outlook.

Yvonne Leow: What’s the typical length for each project or partnership?

Soso Sazesh: We’re not project-based so when a company comes to work with us we effectively become an extension of their marketing team. There’s no set duration. We’ve worked with some companies for five years and some companies we’ve worked with for 12 months.

If we work with a company less than 12 months, something is wrong and we probably shouldn’t have taken that company on as a client but you don’t always know how things will play out. Overall our goal is to work with companies in a long-term capacity as an integrated partner.  Something we pride ourselves on is working with relatively few clients at a time so we can really focus all of our team’s efforts and energy into doing the highest quality work.

Each of our team members only works on a maximum of two to three accounts, and therefore they’re able to get very invested in each client’s business and integrated into their team. We really try to simulate the internal team dynamics as much as possible while balancing and pairing that with our external capabilities and expertise.

Yvonne Leow: Are you at the point in your experience that you can apply certain growth strategies and guarantee success?

Soso Sazesh: Guarantee is a tough word, but having worked with more than 120 startups we are definitely at the point where we have enough data points where we can look at a given business and assess the viability of whether they’ll likely see success on paid channels. Success being a combination of scale and efficiency.

Yvonne Leow: Can you talk a little bit about how you and your team assess that?

Soso Sazesh: The first things we look at are business model, product quality, and whether or not product market fit exists or is likely to be achieved. Even a great business model in a large market combined with a poor product or lack of product market fit is unlikely to succeed with paid acquisition. In the absence of having a live product, or if a company is too early to assess product-market fit, we look at other data points that we have found to be good indicators of viability. Some of these include competitor success with paid marketing, the founders’ backgrounds, amount of capital raised, and who their investors are.

Yvonne Leow: What were some of your greatest lessons learned when you started Growth Pilots?

Soso Sazesh: In the early days of Growth Pilots, there was so much activity and growth that we ignored important things like team infrastructure and people operations. We saw the effects of this in the form of team morale taking a hit and people not seeing a future with us. We eventually took notice and course corrected by investing heavily in people operations and employee development. In an ideal world, we would have done this much earlier.

Another interesting reflection is how critical the work we do is. I think this is what a lot of agencies get wrong. You need the commitment to work with startups. You can’t be one foot in and one foot out when a company may live or die by the work you are doing. A lot of the companies that we work with explicitly outline what goals they need to hit in order to raise their next round of funding and it becomes very clear what part we play in that.

Yvonne Leow: What advice would you give to early-stage founders who are deciding whether or not to work with an agency?

Soso Sazesh: When you work with an agency it’s really important to have clear goals and expectations established up front. A lot of times early-stage companies hire agencies, and agencies will gladly take their money, but the agency isn’t really investing the time that’s needed to get results. So asking “What does it look like to work with your agency? Who’s going to be working on my account? How much attention can I expect to receive?” Those types of questions are really important to clarify and especially at the early stage.

Yvonne Leow: What’s a common mistake you see founders make when it comes to growth?

Soso Sazesh: The most common mistake I see is not doing the upfront work and investment required to get optimal results with paid acquisition. A lot of times you see the founder mentality of move fast and figure things out later kicks in, but this can be dangerous when it comes to paid marketing when you’re directly paying for traffic and customers. This leads to companies not seeing the performance and scalability that they actually could and it contributes to the negative perception of channels like Google Ads and Facebook Ads. VCs, for example, love to bash paid marketing channels as being too expensive or too saturated. There is certainly some truth to the channels getting more crowded but at the same time, you would be surprised how poorly setup and managed some of the accounts are that we look at, including companies that have raised tens to hundreds of millions of dollars.

Yvonne Leow: Thanks for sharing. Last question: what is your payment structure?

Soso Sazesh: We charge based on a tiered percentage of ad spend managed with a monthly minimum retainer fee of $10,000 at the lowest level. Our minimum fee is frankly much higher than a lot of other agencies and that’s by design. This goes back to what I was saying before about early-stage companies requiring a disproportionate amount of work relative to their budgets in order to be successful with paid acquisition. We apply a lot more focus and resources than other agencies and this allows us to achieve success where other agencies can’t. The tradeoff is that we need to charge more to deliver this higher quality of service.


Founder Recommendations:

“They helped me raise $5M+ and ran one of the most successful pre-order campaigns in 2017.” – Roderick De Rode, Venice, CA, Founder & CEO, Spinn, Inc.

“They have helped us dramatically accelerate our growth and act as an extension of our internal team.” – Digital Advertising Manager in Corte Madera

“They helped us establish a low customer acquisition cost before we were even able to ship product and help us convert site visitors to customers when we had influxes of traffic from press we received.” – Stephen Kuhl, NYC, Co-founder & CEO, Burrow

“Largely instrumental in the way we optimize and measure success of our mobile app install campaigns.” – User Acquisition & Growth Strategist in Denver

“Growth Pilots is a great partner. I on-boarded them to build out, optimize and scale all paid search and social campaigns for Instacart. In a few months, paid search and social became some of our best performing channels. They have good business acumen, move fast and work as an extension to your internal team.” – Guillaume McIntyre, SF,  Head of Acquisition Marketing, Instacart


By Yvonne Leow

On-demand shipping startup Shyp is shutting down

After rocketing to a $250 million valuation in 2015 amid a massive hype cycle for on-demand companies, on-demand startup Shyp is shutting down today.

CEO Kevin Gibbon announced that the company would be shutting down in a blog post this afternoon. The company is ending operations immediately after, like many on-demand companies, struggling to find a scalable model beyond its launching point in San Francisco. Shyp missed targets for expanding to cities beyond its core base as well as pulled back from Miami. In July, Shyp said it would be reducing its headcount and shutting down all operations beyond San Francisco.

The company raised $50 million in a deal led by John Doerr at Kleiner Perkins back in 2015, one of his last huge checks as a variety of firms jumped onto the on-demand space. The thesis at the time was pretty sound: look at a strip mall, and see which businesses can come to you first. Shipping was a natural one, but there was also food, and eventually groceries. Today, there are only a few left standing, with Postmates, Instacart and DoorDash among the most prominent ones. Even then, Instacart is now under threat from Amazon, which is ramping up its own two-hour delivery after buying Whole Foods.

“At the time, I approached everything I did as an engineer,” Gibbon wrote. “Rather than change direction, I tasked the team with expanding geographically and dreaming up innovative features and growth tactics to further penetrate the consumer market. To this day, I’m in awe of the vigor the team possessed in tackling a 200-year-old industry. But, growth at all costs is a dangerous trap that many startups fall into, mine included.”

Shyp is now a casualty of the delivery space. Where it originally sought to make up the cost of delivery in the form of cheaper bulk costs for those deliveries, Shyp’s one-size-fits-all delivery — where you could deliver a computer or a bike — eventually ended up being one of the most challenging and frustrating elements of its business. It began adding fees to its online returns business and changing prices for its bulk shipments. As it turns out, a $5 carte blanche for delivery was not a model that really made sense.

Indeed, that growth-at-all-costs directive has cost many startups, with companies like Sprig shutting down and many companies getting slapped on the wrist for aggressive growth tactics like text spamming. It also meant that startups had to very quickly develop an effective playbook that, in the end, might not actually translate to markets beyond their core competency. Shyp pivoted to focusing on businesses toward the tail end of its lifetime, including a big deal with eBay, which we had heard at the time was doing well.

“We decided to keep the popular-but-unprofitable parts of our business running, with small teams of their own behind them,” he wrote. “This was a mistake—my mistake. While large, established companies have the financial freedom to explore new product categories for the sake of exploring, for startups it can be irresponsible.”

But Gibbon said the company kept parts of its popular but challenged models online – which may have also contributed to its eventual shut-down. The company expected to be in cities like Boston, Seattle and Philadelphia in early 2016, but that didn’t end up panning out. And Shyp increasingly felt the challenges of an on-demand model, trying to push the cost to the consumer as low as possible while handling the overheads and logistical headaches of a delivery business.

“My early mistakes in Shyp’s business ended up being prohibitive to our survival,” Gibbon wrote. “For that, I am sorry.”