Airwallex raises $200M at a $4B valuation to double down on business banking

Business, now more than ever before, is going digital, and today a startup that’s building a vertically integrated solution to meet business banking needs is announcing a big round of funding to tap into the opportunity. Airwallex — which provides business banking services both directly to businesses themselves, as well as via a set of APIs that power other companies’ fintech products — has raised $200 million, a Series E round of funding that values the Australian startup at $4 billion.

Lone Pine Capital is leading the round, with new backers G Squared and Vetamer Capital Management, and previous backers 1835i Ventures (formerly ANZi), DST Global, Salesforce Ventures and Sequoia Capital China, also participating.

The funding brings the total raised by Airwallex — which has head offices in Hong Kong and Melbourne, Australia — to date to $700 million, including a $100 million injection that closed out its Series D just six months ago.

Airwallex will be using the funding both to continue investing in its product and technology, as well as to continue its geographical expansion and to focus on some larger business targets. The company has started to make some headway into Europe and the UK and that will be one big focus, along with the U.S.

The quick succession of funding, and that rising valuation, underscore Airwallex’s traction to date around what CEO and co-founder Jack Zhang describes as a vertically integrated strategy.

That involves two parts. First, Airwallex has built all the infrastructure for the business banking services that it provides directly to businesses with a focus on small and medium enterprise customers. Second, it has packaged up that infrastructure into a set of APIs that a variety of other companies use to provide financial services directly to their customers without needing to build those services themselves — the so-called “embedded finance” approach.

“We want to own the whole ecosystem,” Zhang said to me. “We want to be like the Apple of business finance.”

That seems to be working out so far for Airwallex. Revenues were up almost 150% for the first half of 2021 compared to a year before, with the company processing more than US$20 billion for a global client portfolio that has quadrupled in size. In addition to tens of thousands of SMEs, it also, via APIs, powers financial services for other companies like GOAT, Papaya Global and Stake.

Airwallex got its start like many of the strongest startups do: it was built to solve a problem that the founders encountered themselves. In the case of Airwallex, Zhang tells me he had actually been working on a previous start-up idea. He wanted to build the “Blue Bottle Coffee” of Asia out of Hong Kong, and it involved buying and importing a lot of different materials, packaging and of course coffee from all around the world.

“We found that making payments as a small business was slow and expensive,” he said, since it involved banks in different countries and different banking systems, manual efforts to transfer money between them and many days to clear the payments. “But that was also my background — payments and trading — and so I decided that it was a much more fascinating problem for me to work on and resolve.”

Eventually one of his co-founders in the coffee effort came along, with the four co-founders of Airwallex ultimately including Zhang, along with Xijing Dai, Lucy Liu and Max Li.

It was 2014, and Airwallex got attention from VCs early on in part for being in the right place at the right time. A wave of startups building financial services for SMBs were definitely gaining ground in North America and Europe, filling a long-neglected hole in the technology universe, but there was almost nothing of the sort in the Asia Pacific region, and in those earlier days solutions were highly regionalized.

From there it was a no-brainer that starting with cross-border payments, the first thing Airwallex tackled, would soon grow into a wider suite of banking services involving payments and other cross-border banking services.

“In last 6 years, we’ve built more than 50 bank integrations and now offer payments 95 countries payments through a partner network,” he added, with 43 of those offering real-time transactions. From that, it moved on the bank accounts and “other primitive stuff” with card issuance and more, he said, eventually building an end-to-end payment stack. 

Airwallex has tens of thousands of customers using its financial services directly, and they make up about 40% of its revenues today. The rest is the interesting turn the company decided to take to expand its business.

Airwallex had built all of its technology from the ground up itself, and it found that — given the wave of new companies looking for more ways to engage customers and become their one-stop shop — there was an opportunity to package that tech up in a set of APIs and sell that on to a different set of customers, those who also provided services for small businesses. That part of the business now accounts for 60% of Airwallex’s business, Zhang said, and is growing faster in terms of revenues. (The SMB business is growing faster in terms of customers, he said.)

A lot of embedded finance startups that base their business around building tech to power other businesses tend to stay arm’s length from offering financial services directly to consumers. The explanation I have heard is that they do not wish to compete against their customers. Zhang said that Airwallex takes a different approach, by being selective about the customers they partner with, so that the financial services they offer would never be the kind that would not be in direct competition. The GOAT marketplace for sneakers, or Papaya Global’s HR platform are classic examples of this.

However, as Airwallex continues to grow, you can’t help but wonder whether one of those partners might like to gobble up all of Airwallex and take on some of that service provision role itself. In that context, it’s very interesting to see Salesforce Ventures returning to invest even more in the company in this round, given how widely the company has expanded from its early roots in software for salespeople into a massive platform providing a huge range of cloud services to help people run their businesses.

For now, it’s been the combination of its unique roots in Asia Pacific, plus its vertical approach of building its tech from the ground up, plus its retail acumen that has impressed investors and may well see Airwallex stay independent and grow for some time to come.

“Airwallex has a clear competitive advantage in the digital payments market,” said David Craver, MD at Lone Pine Capital, in a statement. “Its unique Asia-Pacific roots, coupled with its innovative infrastructure, products and services, speak volumes about the business’ global growth opportunities and its impressive expansion in the competitive payment providers space. We are excited to invest in Airwallex at this dynamic time, and look forward to helping drive the company’s expansion and success worldwide.”


By Ingrid Lunden

Nuula raises $120M to build out a financial services ‘superapp’ aimed at SMBs

A Canadian startup called Nuula that is aiming to build a superapp to provide a range of financial services to small and medium businesses has closed $120 million of funding, money that it will use to fuel the launch of its app and first product, a line of credit for its users.

The money is coming in the form of $20 million in equity from Edison Partners, and a $100 million credit facility from funds managed by the Credit Group of Ares Management Corporation.

The Nuula app has been in a limited beta since June of this year. The plan is to open it up to general availability soon, while also gradually bringing in more services, some built directly by Nuula itself and but many others following an embedded finance strategy: business banking, for example, will be a service provided by a third party and integrated closely into the Nuula app to be launched early in 2022; and alongside that, the startup will also be making liberal use of APIs to bring in other white-label services such as B2B and customer-focused payment services, starting first in the U.S. and then expanding to Canada and the U.K. before further countries across Europe.

Current products include cash flow forecasting, personal and business credit score monitoring, and customer sentiment tracking; and monitoring of other critical metrics including financial, payments and eCommerce data are all on the roadmap.

“We’re building tools to work in a complementary fashion in the app,” CEO Mark Ruddock said in an interview. “Today, businesses can project if they are likely to run out of money, and monitor their credit scores. We keep an eye on customers and what they are saying in real time. We think it’s necessary to surface for SMBs the metrics that they might have needed to get from multiple apps, all in one place.”

Nuula was originally a side-project at BFS, a company that focused on small business lending, where the company started to look at the idea of how to better leverage data to build out a wider set of services addressing the same segment of the market. BFS grew to be a substantial business in its own right (and it had raised its own money to that end, to the tune of $184 million from Edison and Honeywell).  Over time, it became apparent to management that the data aspect, and this concept of a super app, would be key to how to grow the business, and so it pivoted and rebranded earlier this year, launching the beta of the app after that.

Nuula’s ambitions fall within a bigger trend in the market. Small and medium enterprises have shaped up to be a huge business opportunity in the world of fintech in the last several years. Long ignored in favor of building solutions either for the giant consumer market, or the lucrative large enterprise sector, SMBs have proven that they want and are willing to invest in better and newer technology to run their businesses, and that’s leading to a rush of startups and bigger tech companies bringing services to the market to cater to that.

Super apps are also a big area of interest in the world of fintech, although up to now a lot of what we’ve heard about in that area has been aimed at consumers — just the kind of innovation rut that Nuula is trying to get moving.

“Despite the growth in services addressing the SMB sector, overall it still lacks innovation compared to consumer or enterprise services,” Ruddock said. “We thought there was some opportunity to bring new thinking to the space. We see this as the app that SMBs will want to use everyday, because we’ll provide useful tools, insights and capital to power their businesses.”

Nuula’s priority to build the data services that connect all of this together is very much in keeping with how a lot of neobanks are also developing services and investing in what they see as their unique selling point. The theory goes like this: banking services are, at the end of the day, the same everywhere you go, and therefore commoditized, and so the more unique value-added for companies will come from innovating with more interesting algorithms and other data-based insights and analytics to give more power to their users to make the best use of what they have at their disposal.

It will not be alone in addressing that market. Others building fintech for SMBs include Selina, ANNA, Amex’s Kabbage (an early mover in using big data to help loan money to SMBs and build other financial services for them), Novo, Atom Bank, Xepelin, and Liberis, biggies like Stripe, Square and PayPal, and many others.

The credit product that Nuula has built so far is a taster of how it hopes to be a useful tool for SMBs, not just another place to get money or manage it. It’s not a direct loaning service, but rather something that is closely linked to monitoring a customers’ incomings and outgoings and only prompts a credit line (which directly links into the users’ account, wherever it is) when it appears that it might be needed.

“Innovations in financial technology have largely democratized who can become the next big player in small business finance,” added Gary Golding, General Partner, Edison Partners. “By combining critical financial performance tools and insights into a single interface, Nuula represents a new class of financial services technology for small business, and we are excited by the potential of the firm.”

“We are excited to be working with Nuula as they build a unique financial services resource for small businesses and entrepreneurs,” said Jeffrey Kramer, Partner and Head of ABS in the Alternative Credit strategy of the Ares Credit Group, in a statement. “The evolution of financial technology continues to open opportunities for innovation and the emergence of new industry participants. We look forward to seeing Nuula’s experienced team of technologists, data scientists and financial service veterans bring a new generation of small business financial services solutions to market.”


By Ingrid Lunden

Fractory raises $9M to rethink the manufacturing supply chain for metalworks

The manufacturing industry took a hard hit from the Covid-19 pandemic, but there are signs of how it is slowly starting to come back into shape — helped in part by new efforts to make factories more responsive to the fluctuations in demand that come with the ups and downs of grappling with the shifting economy, virus outbreaks and more. Today, a businesses that is positioning itself as part of that new guard of flexible custom manufacturing — a startup called Fractory — is announcing a Series A of $9 million (€7.7 million) that underscores the trend.

The funding is being led by OTB Ventures, a leading European investor focussed on early growth, post-product, high-tech start-ups, with existing investors Trind VenturesSuperhero CapitalUnited Angels VCStartup Wise Guys and Verve Ventures also participating.

Founded in Estonia but now based in Manchester, England — historically a strong hub for manufacturing in the country, and close to Fractory’s customers — Fractory has built a platform to make it easier for those that need to get custom metalwork to upload and order it, and for factories to pick up new customers and jobs based on those requests.

Fractory’s Series A will be used to continue expanding its technology, and to bring more partners into its ecosystem.

To date, the company has worked with more than 24,000 customers and hundreds of manufacturers and metal companies, and altogether it has helped crank out more than 2.5 million metal parts.

To be clear, Fractory isn’t a manufacturer itself, nor does it have no plans to get involved in that part of the process. Rather, it is in the business of enterprise software, with a marketplace for those who are able to carry out manufacturing jobs — currently in the area of metalwork — to engage with companies that need metal parts made for them, using intelligent tools to identify what needs to be made and connecting that potential job to the specialist manufacturers that can make it.

The challenge that Fractory is solving is not unlike that faced in a lot of industries that have variable supply and demand, a lot of fragmentation, and generally an inefficient way of sourcing work.

As Martin Vares, Fractory’s founder and MD, described it to me, companies who need metal parts made might have one factory they regularly work with. But if there are any circumstances that might mean that this factory cannot carry out a job, then the customer needs to shop around and find others to do it instead. This can be a time-consuming, and costly process.

“It’s a very fragmented market and there are so many ways to manufacture products, and the connection between those two is complicated,” he said. “In the past, if you wanted to outsource something, it would mean multiple emails to multiple places. But you can’t go to 30 different suppliers like that individually. We make it into a one-stop shop.”

On the other side, factories are always looking for better ways to fill out their roster of work so there is little downtime — factories want to avoid having people paid to work with no work coming in, or machinery that is not being used.

“The average uptime capacity is 50%,” Vares said of the metalwork plants on Fractory’s platform (and in the industry in general). “We have a lot more machines out there than are being used. We really want to solve the issue of leftover capacity and make the market function better and reduce waste. We want to make their factories more efficient and thus sustainable.”

The Fractory approach involves customers — today those customers are typically in construction, or other heavy machinery industries like ship building, aerospace and automotive — uploading CAD files specifying what they need made. These then get sent out to a network of manufacturers to bid for and take on as jobs — a little like a freelance marketplace, but for manufacturing jobs. About 30% of those jobs are then fully automated, while the other 70% might include some involvement from Fractory to help advise customers on their approach, including in the quoting of the work, manufacturing, delivery and more. The plan is to build in more technology to improve the proportion that can be automated, Vares said. That would include further investment in RPA, but also computer vision to better understand what a customer is looking to do, and how best to execute it.

Currently Fractory’s platform can help fill orders for laser cutting and metal folding services, including work like CNC machining, and it’s next looking at industrial additive 3D printing. It will also be looking at other materials like stonework and chip making.

Manufacturing is one of those industries that has in some ways been very slow to modernize, which in a way is not a huge surprise: equipment is heavy and expensive, and generally the maxim of “if it ain’t broke, don’t fix it” applies in this world. That’s why companies that are building more intelligent software to at least run that legacy equipment more efficiently are finding some footing. Xometry, a bigger company out of the U.S. that also has built a bridge between manufacturers and companies that need things custom made, went public earlier this year and now has a market cap of over $3 billion. Others in the same space include Hubs (which is now part of Protolabs) and Qimtek, among others.

One selling point that Fractory has been pushing is that it generally aims to keep manufacturing local to the customer to reduce the logistics component of the work to reduce carbon emissions, although as the company grows it will be interesting to see how and if it adheres to that commitment.

In the meantime, investors believe that Fractory’s approach and fast growth are strong signs that it’s here to stay and make an impact in the industry.

“Fractory has created an enterprise software platform like no other in the manufacturing setting. Its rapid customer adoption is clear demonstrable feedback of the value that Fractory brings to manufacturing supply chains with technology to automate and digitise an ecosystem poised for innovation,” said Marcin Hejka in a statement. “We have invested in a great product and a talented group of software engineers, committed to developing a product and continuing with their formidable track record of rapid international growth


By Ingrid Lunden

Worksome pulls $13M into its high skill freelancer talent platform

More money for the now very buzzy business of reshaping how people work: Worksome is announcing it recently closed a $13 million Series A funding round for its “freelance talent platform” — after racking up 10x growth in revenue since January 2020, just before the COVID-19 pandemic sparked a remote working boom.

The 2017 founded startup, which has a couple of ex-Googlers in its leadership team, has built a platform to connect freelancers looking for professional roles with employers needing tools to find and manage freelancer talent.

It says it’s seeing traction with large enterprise customers that have traditionally used Managed Service Providers (MSPs) to manage and pay external workforces — and views employment agency giants like Randstad, Adecco and Manpower as ripe targets for disruption.

“Most multinational enterprises manage flexible workers using legacy MSPs,” says CEO and co-founder Morten Petersen (one of the Xooglers). “These largely analogue businesses manage complex compliance and processes around hiring and managing freelance workforces with handheld processes and outdated technology that is not built for managing fluid workforces. Worksome tackles this industry head on with a better, faster and simpler solution to manage large freelancer and contractor workforces.”

Worksome focuses on helping medium/large companies — who are working with at least 20+ freelancers at a time — fill vacancies within teams rather than helping companies outsource projects, per Petersen, who suggests the latter is the focus for the majority of freelancer platforms.

“Worksome helps [companies] onboard people who will provide necessary skills and will be integral to longer-term business operations. It makes matches between companies and skilled freelancers, which the businesses go on to trust, form relationships with and come back to time and time again,” he goes on.

“When companies hire dozens or hundreds of freelancers at one time, processes can get very complicated,” he adds, arguing that on compliance and payments Worksome “takes on a much greater responsibility than other freelancing platforms to make big hires easier”.

The startup also says it’s concerned with looking out for (and looking after) its freelancer talent pool — saying it wants to create “a world of meaningful work” on its platform, and ensure freelancers are paid fairly and competitively. (And also that they are paid faster than they otherwise might be, given it takes care of their payroll so they don’t have to chase payments from employers.)

The business started life in Copenhagen — and its Series A has a distinctly Nordic flavor, with investment coming from the Danish business angel and investor on the local version of the Dragons’ Den TV program Løvens Hule; the former Minister for Higher Education and Science, Tommy Ahlers; and family home manufacturer Lind & Risør.

It had raised just under $6M prior to thus round, per Crunchbase, and also counts some (unnamed) Google executives among its earlier investors.

Freelancer platforms (and marketplaces) aren’t new, of course. There are also an increasing number of players in this space — buoyed by a new flush of VC dollars chasing the ‘future of work’, whatever hybrid home-office flexible shape that might take. So Worksome is by no means alone in offering tech tools to streamline the interface between freelancers and businesses.

A few others that spring to mind include Lystable (now Kalo), Malt, Fiverr — or, for techie job matching specifically, the likes of HackerRank — plus, on the blue collar work side, Jobandtalent. There’s also a growing number of startups focusing on helping freelancer teams specifically (e.g. Collective), so there’s a trend towards increasing specialism.

Worksome says it differentiates vs other players (legacy and startups) by combining services like tax compliance, background and ID checks and handling payroll and other admin with an AI powered platform that matches talent to projects.

Although it’s not the only startup offering to do the back-office admin/payroll piece, either, nor the only one using AI to match skilled professionals to projects. But it claims it’s going further than rival ‘freelancer-as-a-service’ platforms — saying it wants to “address the entire value chain” (aka: “everything from the hiring of freelance talent to onboarding and payment”).

Worksome has 550 active clients (i.e. employers in the market for freelancer talent) at this stage; and has accepted 30,000 freelancers into its marketplace so far.

Its current talent pool can take on work across 12 categories, and collectively offers more than 39,000 unique skills, per Petersen.

The biggest categories of freelancer talent on the platform are in Software and IT; Design and Creative Work; Finance and Management Consulting; plus “a long tail of niche skills” within engineering and pharmaceuticals.

While its largest customers are found in the creative industries, tech and IT, pharma and consumer goods. And its biggest markets are the U.K. and U.S.

“We are currently trailing at +20,000 yearly placements,” says Petersen, adding: “The average yearly spend per client is $300,000.”

Worksome says the Series A funding will go on stoking growth by investing in marketing. It also plans to spend on product dev and on building out its team globally (it also has offices in London and New York).

Over the past 12 months the startup doubled the size of its team to 50 — and wants to do so again within 12 months so it can ramp up its enterprise client base in the U.S., U.K. and euro-zone.

“Yes, there are a lot of freelancer platforms out there but a lot of these don’t appreciate that hiring is only the tip of the iceberg when it comes to reducing the friction in working with freelancers,” argues Petersen. “Of the time that goes into hiring, managing and paying freelancers, 75% is currently spent on admin such as timesheet approvals, invoicing and compliance checks, leaving only a tiny fraction of time to actually finding talent.”

Worksome woos employers with a “one-click-hire” offer — touting its ability to find and hire freelancers “within seconds”.

If hiring a stranger in seconds sounds ill-advised, Worksome greases this external employment transaction by taking care of vetting the freelancers itself (including carrying out background checks; and using proprietary technology to asses freelancers’ skills and suitability for its marketplace).

“We have a two-step vetting process to ensure that we only allow the best freelance talent onto the Worksome platform,” Petersen tells TechCrunch. “For step one, an inhouse-built robot assesses our freelancer applicants. It analyses their skillset, social media profiles, profile completeness and hourly or daily rate, as well as their CV and work history, to decide whether each person is a good fit for Worksome.

“For step two, our team of talent specialists manually review and decline or approve the freelancers that pass through step one with a score of 85% or more. We have just approved our 30,000th freelancer and will be able to both scale and improve our vetting procedure as we grow.”

A majority of freelancer applicants fail Worksome’s proprietary vetting processes. This is clear because it says it has received 80,000 applicants so far — but only approved 30,000.

That raises interesting questions about how it’s making decisions on who is (and isn’t) an ‘appropriate fit’ for its talent marketplace.

It says its candidate assessing “robot” looks at “whether freelancers can demonstrate the skillset, matching work history, industry experience and profile depth” deemed necessary to meet its quality criteria — giving the example that it would not accept a freelancer who says they can lead complex IT infrastructure projects if they do not have evidence of relevant work, education and skills.

On the AI freelancer-to-project matching side, Worksome says its technology aims to match freelancers “who have the highest likelihood of completing a job with high satisfaction, based on their work-history, and performance and skills used on previous jobs”.

“This creates a feedback loop that… ensure that both clients and freelancers are matched with great people and great work,” is its circular suggestion when we ask about this.

But it also emphasizes that its AI is not making hiring decisions on its own — and is only ever supporting humans in making a choice. (An interesting caveat since existing EU data protection rules, under Article 22 of the GDPR, provide for a right for individuals to object to automated decision making if significant decisions are being taken without meaningful human interaction.) 

Using automation technologies (like AI) to make assessments that determine whether a person gains access to employment opportunities or doesn’t can certainly risk scaled discrimination. So the devil really is in the detail of how these algorithmic assessments are done.

That’s why such uses of technology are set to face close regulatory scrutiny in the European Union — under incoming rules on ‘high risk’ users of artificial intelligence — including the use of AI to match candidates to jobs.

The EU’s current legislative proposals in this area specifically categorize “employment, workers management and access to self-employment” as a high risk use of AI, meaning applications like Worksome are likely to face some of the highest levels of regulatory supervision in the future.

Nonetheless, Worksome is bullish when we ask about the risks associated with using AI as an intermediary for employment opportunities.

“We utilise fairly advanced matching algorithms to very effectively shortlist candidates for a role based solely on objective criteria, rinsed from human bias,” claims Petersen. “Our algorithms don’t take into account gender, ethnicity, name of educational institutions or other aspects that are usually connected to human bias.”

“AI has immense potential in solving major industry challenges such as recruitment bias, low worker mobility and low access to digital skills among small to medium sized businesses. We are firm believers that technology should be utilized to remove human bias’ from any hiring process,” he goes on, adding: “Our tech was built to this very purpose from the beginning, and the new proposed legislation has the potential to serve as a validator for the hard work we’ve put into this.

“The obvious potential downside would be if new legislation would limit innovation by making it harder for startups to experiment with new technologies. As always, legislation like this will impact the Davids more than the Goliaths, even though the intentions may have been the opposite.”

Zooming back out to consider the pandemic-fuelled remote working boom, Worksome confirms that most of the projects for which it supplied freelancers last year were conducted remotely.

“We are currently seeing a slow shift back towards a combination of remote and onsite work and expect this combination to stick amongst most of our clients,” Petersen goes on. “Whenever we are in uncertain economic times, we see a rise in the number of freelancers that companies are using. However, this trend is dwarfed by a much larger overall trend towards flexible work, which drives the real shift in the market. This shift has been accelerated by COVID-19 but has been underway for many years.

“While remote work has unlocked an enormous potential for accessing talent everywhere, 70% of the executives expect to use more temporary workers and contractors onsite than they did before COVID-19, according to a recent McKinsey study. This shows that businesses really value the flexibility in using an on-demand workforce of highly skilled specialists that can interact directly with their own teams.”

Asked whether it’s expecting growth in freelancing to sustain even after we (hopefully) move beyond the pandemic — including if there’s a return to physical offices — Petersen suggests the underlying trend is for businesses to need increased flexibility, regardless of the exact blend of full-time and freelancer staff. So platforms like Worksome are confidently poised to keep growing.

“When you ask business leaders, 90% believe that shifting their talent model to a blend of full-time and freelancers can give a future competitive advantage (Source: BCG),” he says. “We see two major trends driving this sentiment; access to talent, and building an agile and flexible organization. This has become all the more true during the pandemic — a high degree of flexibility is allowing organisations to better navigate both the initial phase of the pandemic as well the current pick up of business activity.

“With the amount of change that we’re currently seeing in the world, and with businesses are constantly re-inventing themselves, the access to highly skilled and flexible talent is absolutely essential — now, in the next 5 years, and beyond.”


By Natasha Lomas

Vista Equity takes minority stake in Canada’s Vena with $242M investment

Vena, a Canadian company focused on the Corporate Performance Management (CPM) software space, has raised $242 million in Series C funding from Vista Equity Partners.

As part of the financing, Vista Equity is taking a minority stake in the company. The round follows $25 million in financing from CIBC Innovation Banking last September, and brings Vena’s total raised since its 2011 inception to over $363 million.

Vena declined to provide any financial metrics or the valuation at which the new capital was raised, saying only that its “consistent growth and…strong customer retention and satisfaction metrics created real demand” as it considered raising its C round.

The company was originally founded as a B2B provider of planning, budgeting and forecasting software. Over time, it’s evolved into what it describes as a “fully cloud-native, corporate performance management platform” that aims to empower finance, operations and business leaders to “Plan to Growtheir businesses. Its customers hail from a variety of industries, including banking, SaaS, manufacturing, healthcare, insurance and higher education. Among its over 900 customers are the Kansas City Chiefs, Coca-Cola Consolidated, World Vision International and ELF Cosmetics.

Vena CEO Hunter Madeley told TechCrunch the latest raise is “mostly an acceleration story for Vena, rather than charting new paths.”

The company plans to use its new funds to build out and enable its go-to-market efforts as well as invest in its product development roadmap. It’s not really looking to enter new markets, considering it’s seeing what it describes as “tremendous demand” in the markets it currently serves directly and through its partner network.

“While we support customers across the globe, we’ll stay focused on growing our North American, U.K. and European business in the near term,” Madeley said.

Vena says it leverages the “flexibility and familiarity” of an Excel interface within its “secure” Complete Planning platform. That platform, it adds, brings people, processes and systems into a single source solution to help organizations automate and streamline finance-led processes, accelerate complex business processes and “connect the dots between departments and plan with the power of unified data.”            

Early backers JMI Equity and Centana Growth Partners will remain active, partnering with Vista “to help support Vena’s continued momentum,” the company said. As part of the raise, Vista Equity Managing Director Kim Eaton and Marc Teillon, senior managing director and co-head of Vista’s Foundation Fund, will join the company’s board.

“The pandemic has emphasized the need for agile financial planning processes as companies respond to quickly-changing market conditions, and Vena is uniquely positioned to help businesses address the challenges required to scale their processes through this pandemic and beyond,” said Eaton in a written statement. 

Vena currently has more than 450 employees across the U.S., Canada and the U.K., up from 393 last year at this time.


By Mary Ann Azevedo

Ivanti has acquired security firms MobileIron and Pulse Secure

IT security software company Ivanti has acquired two security companies: enterprise mobile security firm MobileIron, and corporate virtual network provider Pulse Secure.

In a statement on Tuesday, Ivanti said it bought MobileIron for $872 million in stock, with 91% of the shareholders voting in favor of the deal; and acquired Pulse Secure from its parent company Siris Capital Group, but did not disclose the buying price.

The deals have now closed.

Ivanti was founded in 2017 after Clearlake Capital, which owned Heat Software, bought Landesk from private equity firm Thoma Bravo, and merged the two companies to form Ivanti. The combined company, headquartered in Salt Lake City, focuses largely on enterprise IT security, including endpoint, asset, and supply chain management. Since its founding, Ivanti went on to acquire several other companies, including U.K.-based Concorde Solutions and RES Software.

If MobileIron and Pulse Secure seem familiar, both companies have faced their fair share of headlines this year after hackers began exploiting vulnerabilities found in their technologies.

Just last month, the U.K. government’s National Cyber Security Center published an alert that warned of a remotely executable bug in MobileIron, patched in June, allowing hackers to break into enterprise networks. U.S. Homeland Security’s cybersecurity advisory unit CISA said that the bug was being actively used by advanced persistent threat (APT) groups, typically associated with state-backed hackers.

Meanwhile, CISA also warned that Pulse Secure was one of several corporate VPN providers with vulnerabilities that have since become a favorite among hackers, particularly ransomware actors, who abuse the bugs to gain access to a network and deploy the file-encrypting ransomware.


By Zack Whittaker

Microsoft launches new Cortana features for business users

Cortana may have failed as a virtual assistant for consumers, but Microsoft is still betting on it (or at least its brand) for business use cases, now that it has rebranded it as a ‘personal productivity assistant’ as part of Microsoft 365. Today, at its Ignite conference, Microsoft launched and announced a number of new Cortana services for business users.

These include the general availability of Cortana for the new Microsoft Teams displays the company is launching in partnership with a number of hardware vendors. You can think of these as dedicated smart displays for Teams that are somewhat akin to Google Assistant-enabled smart displays, for example — but with the sole focus on meetings. These days, it’s hard to enable a device like this without support for a voice assistant, so there you go. It’ll be available in September in English in the U.S. and will then roll out to Australia, Canada, the UK and India in the coming months.

In addition to these Teams devices, which Microsoft is not necessarily positioning for meeting rooms but as sidekicks to a regular laptop or desktop, Cortana will also soon come to Teams Rooms devices. Once we go back to offices and meeting rooms, after all, few people will want to touch a shared piece of hardware, so a touchless experience is a must.

For a while now, Microsoft has also been teasing more email-centric Cortana services. Play My Emails, a service that reads you your email out aloud and that’s already available in the U.S. on iOS and Android is coming to n Australia, Canada, the UK and India in the coming months. But more importantly, later this month, Outlook for iOS users will be able to interact with their inbox by voice, initiate calls to email senders and play emails from specific senders.

Cortana can now also send you daily briefing emails if you are a Microsoft 365 Enterprise users. This feature is now generally available and will get better meeting preparation, an integration with Microsoft To Do and other new features in the coming months.

And if you’re using Cortana on Windows 10, this chat-based app now let you compose emails, for example (at least if you speak English and are in the U.S.). And if you so desire, you can now use a wake word to launch it.


By Frederic Lardinois

Cyber-skills platform Immersive Labs raises $40M in North America expansion

Immersive Labs, a cybersecurity skills platform, has raised $40 million in its Series B, the company’s second round of funding this year following an $8 million Series A in January.

Summit Partners led the fundraise with Goldman Sachs participating, the Bristol, U.K.-based company confirmed.

Immersive, led by former GCHQ cybersecurity instructor James Hadley, helps corporate employees learn new security skills by using real, up-to-date threat intelligence in a “gamified” way. Its cybersecurity learning platform uses a variety of techniques and psychology to build up immersive and engaging cyber war games to help IT and security teams learn. The platform aims to help users better understand cybersecurity threats, like detecting and understanding phishing and malware reverse-engineering.

It’s a new take on cybersecurity education, which the company’s founder and chief executive Hadley said the ever-evolving threat landscape has made traditional classroom training “obsolete.”

“It creates knowledge gaps that increase risk, offer vulnerabilities and present opportunities for attackers,” said Hadley.

The company said it will use the round to expand further into the U.S. and Canadian markets from its North American headquarters in Boston, MA.

Since its founding in 2017, Immersive already has big customers to its name, including Bank of Montreal and Citigroup, on top of its U.K. customers, including BT, the National Health Service, and London’s Metropolitan Police.

Goldman Sachs, an investor and customer, said it was “impressed” by Immersive’s achievements so far.

“The platform is continually evolving as new features are developed to help address the gap in cyber skills that is impacting companies and governments across the globe,” said James Hayward, the bank’s executive director.

Immersive said it has 750% year-over-year growth in annual recurring revenues and over 100 employees across its offices.


By Zack Whittaker

United Airlines CISO Emily Heath joins TC Sessions: Enterprise this September

In an era of massive data breaches, most recently the Capital One fiasco, the risk of a cyberattack and the costly consequences are the top existential threat to corporations big and small. At TechCrunch’s first-ever enterprise-focused event (p.s. early bird sales end August 9), that topic will be front and center throughout the day.

That’s why we’re delighted to announce United’s chief information security officer Emily Heath will join TC Sessions: Enterprise in San Francisco on September 5, where we will discuss and learn how one of the world’s largest airlines keeps its networks safe.

Joining her to talk enterprise security will be a16z partner Martin Casado and DUO / Cisco’s head of advisory CISO s Wendy Nather, among others still to be announced.

At United, Heath oversees the airline’s cybersecurity program and its IT regulatory, governance and risk management.

The U.S.-based airline has more than 90,000 employees serving 4,500 flights a day to 338 airports, including New York, San Francisco, Los Angeles and Washington D.C.

A native of Manchester, U.K., Heath served as a former police detective in the U.K. Financial Crimes Unit where she led investigations into international investment fraud, money laundering, and large scale cases of identity theft — and running join investigations with the FBI, SEC, and London’s Serious Fraud Office.

Heath and her teams have been the recipients of CSO Magazine’s CSO50 Awards for their work in cybersecurity and risk.

At TC Sessions: Enterprise, Heath will join an expert panel of cybersecurity experts to discuss security on enterprise networks large and small — from preventing data from leaking to keeping bad actors out of their network — where we’ll lear how a modern CSO moves fast without breaking things.

Join hundreds of today’s leading enterprise experts for this single-day event when you purchase a ticket to the show. $249 Early Bird sale ends Friday, August 9. Make sure to grab your tickets today and save $100 before prices go up.


By Zack Whittaker

Liberty’s challenge to UK state surveillance powers reveals shocking failures

A legal challenge to the UK’s controversial mass surveillance regime has revealed shocking failures by the main state intelligence agency, which has broad powers to hack computers and phones and intercept digital communications, in handling people’s information.

The challenge, by rights group Liberty, led last month to an initial finding that MI5 had systematically breached safeguards in the UK’s Investigatory Powers Act (IPA) — breaches the Home Secretary, Sajid Javid, euphemistically couched as “compliance risks” in a carefully worded written statement that was quietly released to parliament.

Today Liberty has put more meat on the bones of the finding of serious legal breaches in how MI5 handles personal data, culled from newly released (but redacted) documents that it says describe the “undoubtedly unlawful” conduct of the UK’s main security service which has been retaining innocent people’s data for years.

The series of 10 documents and letters from MI5 and the Investigatory Powers Commissioner’s Office (IPCO), the body charged with overseeing the intelligence agencies’ use of surveillance powers, show that the spy agency has failed to meet its legal duties for as long as the IPA has been law, according to Liberty.

The controversial surveillance legislation passed into UK law in November 2016 — enshrining a system of mass surveillance of digital communications which includes a provision that logs of all Internet users’ browsing activity be retained for a full year, accessible to a wide range of government agencies (not just law enforcement and/or spy agencies).

The law also allows the intelligence agencies to maintain large databases of personal information on UK citizens, even if they are not under suspicion of any crime. And sanctions state hacking of devices, networks and services, including bulk hacking on foreign soil. It also gives U.K. authorities the power to require a company to remove encryption, or limit the rollout of end-to-end encryption on a future service.

The IPA has faced a series of legal challenges since making it onto the statute books, and the government has been forced to amend certain aspects of it on court order — including beefing up restrictions on access to web activity data. Other challenges to the controversial surveillance regime, including Liberty’s, remain ongoing.

The newly released court documents include damning comments on MI5’s handling of data by the IPCO — which writes that: “Without seeking to be emotive, I consider that MI5’s use of warranted data… is currently, in effect, in ‘special measures’ and the historical lack of compliance… is of such gravity that IPCO will need to be satisfied to a greater degree than usual that it is ‘fit for purpose’”.”

Liberty also says MI5 knew for three years of failures to maintain key safeguards — such as the timely destruction of material, and the protection of legally privileged material — before informing the IPCO.

Yet a key government sales pitch for passing the legislation was the claim of a ‘world class’ double-lock authorization and oversight regime to ensure the claimed safeguards on intelligence agencies powers to intercept and retain data.

So the latest revelations stemming from Liberty’s legal challenge represent a major embarrassment for the government.

“It is of course paramount that UK intelligence agencies demonstrate full compliance with the law,” the home secretary wrote in the statement last month, before adding his own political spin: “In that context, the interchange between the Commissioner and MI5 on this issue demonstrates that the world leading system of oversight established by the Act is working as it should.”

Liberty comes to the opposite conclusion on that point — emphasizing that warrants for bulk surveillance were issued by senior judges “on the understanding that MI5’s data handling obligations under the IPA were being met — when they were not”.

“The Commissioner has pointed out that warrants would not have been issued if breaches were known,” it goes on. “The Commissioner states that “it is impossible to sensibly reconcile the explanation of the handling of arrangements the Judicial Commissioners [senior judges] were given in briefings…with what MI5 knew over a protracted period of time was happening.”

So, basically, it’s saying that MI5 — having at best misled judges, whose sole job it is to oversee its legal access to data, about its systematic failures to lawfully handle data — has rather made a sham of the entire ‘world class’ oversight regime.

Liberty also flags what it calls “a remarkable admission to the Commissioner” — made by MI5’s deputy director general — who it says acknowledges that personal data collected by MI5 is being stored in “ungoverned spaces”. It adds that the MI5 legal team claims there is “a high likelihood [of material] being discovered when it should have been deleted, in a disclosure exercise leading to substantial legal or oversight failure”.

“Ungoverned spaces” is not a phrase that made it into Javid’s statement last month on MI5’s “compliance risks”.

But the home secretary did acknowledge: “A report of the Investigatory Powers Commissioner’s Office suggests that MI5 may not have had sufficient assurance of compliance with these safeguards within one of its technology environments.”

Javid also said he had set up “an independent review to consider and report back to me on what lessons can be learned for the future”. Though it’s unclear whether that report will be made public. 

We reached out to the Home Office for comment on the latest revelations from Liberty’s litigation. But a spokesman just pointed us to Javid’s prior statement. 

In a statement, Liberty’s lawyer, Megan Goulding, said: “These shocking revelations expose how MI5 has been illegally mishandling our data for years, storing it when they have no legal basis to do so. This could include our most deeply sensitive information – our calls and messages, our location data, our web browsing history.

“It is unacceptable that the public is only learning now about these serious breaches after the Government has been forced into revealing them in the course of Liberty’s legal challenge. In addition to showing a flagrant disregard for our rights, MI5 has attempted to hide its mistakes by providing misinformation to the Investigatory Powers Commissioner, who oversees the Government’s surveillance regime.

“And, despite a light being shone on this deplorable violation of our rights, the Government is still trying to keep us in the dark over further examples of MI5 seriously breaching the law.”


By Natasha Lomas

Humio raises $9M Series A for its real-time log analysis service

Humio, a startup that provides a real-time log analysis service for on-premises and cloud infrastructures, today announced that it has raised a $9 million Series A round led by Accel. It previously raised its seed round from WestHill and Trifork.

The company, which has offices in San Francisco, the U.K. and Denmark, tells me that it saw a 13x increase in its annual revenue in 2018. Current customers include Bloomberg, Microsoft and Netlify .

“We are experiencing a fundamental shift in how companies build, manage and run their systems,” said Humio CEO Geeta Schmidt. “This shift is driven by the urgency to adopt cloud-based and microservice-driven application architectures for faster development cycles, and dealing with sophisticated security threats. These customer requirements demand a next-generation logging solution that can provide live system observability and efficiently store the massive amounts of log data they are generating.”

To offer them this solution, Humio raised this round with an eye toward fulfilling the demand for its service, expanding its research and development teams and moving into more markets across the globe.

As Schmidt also noted, many organizations are rather frustrated by the log management and analytics solutions they currently have in place. “Common frustrations we hear are that legacy tools are too slow — on ingestion, searches and visualizations — with complex and costly licensing models,” she said. “Ops teams want to focus on operations — not building, running and maintaining their log management platform.”

To build this next-generation analysis tool, Humio built its own time series database engine to ingest the data, with open-source tools like Scala, Elm and Kafka in the backend. As data enters the pipeline, it’s pushed through live searches and then stored for later queries. As Humio VP of Engineering Christian Hvitved tells me, though, running ad-hoc queries is the exception, and most users only do so when they encounter bugs or a DDoS attack.

The query language used for the live filters is also pretty straightforward. That was a conscious decision, Hvitved said. “If it’s too hard, then users don’t ask the question,” he said. “We’re inspired by the Unix philosophy of using pipes, so in Humio, larger searches are built by combining smaller searches with pipes. This is very familiar to developers and operations people since it is how they are used to using their terminal.”

Humio charges its customers based on how much data they want to ingest and for how long they want to store it. Pricing starts at $200 per month for 30 days of data retention and 2 GB of ingested data.


By Frederic Lardinois

DoJ charges Autonomy founder with fraud over $11BN sale to HP

UK entrepreneur turned billionaire investor, Mike Lynch, has been charged with fraud in US over the 2011 sale of his enterprise software company.

Lynch sold Autonomy, the big data company he founded back in 1996, to computer giant HP for around $11BN some seven years ago.

But within a year around three-quarters of the value of the business had been written off, with HP accusing Autonomy’s management of accounting misrepresentations and disclosure failures.

Lynch has always rejected the allegations, and after HP sought to sue him in UK courts he countersued in 2015.

Meanwhile the UK’s own Serious Fraud Office dropped an investigation into the Autonomy sale in 2015 — finding “insufficient evidence for a realistic prospect of conviction”.

But now the DoJ has filed charges in a San Francisco court, accusing Lynch and other senior Autonomy executives of making false statement that inflated the value of the company.

They face 14 counts of conspiracy and fraud, according to Reuters — a charge which carries a maximum penalty of 20 years in prison.

We’ve reached out to Lynch’s fund, Invoke Capital, for comment on the latest development.

The BBC has obtained a statement from his lawyers, Chris Morvillo of Clifford Chance and Reid Weingarten of Steptoe & Johnson, which describes the indictment as “a travesty of justice”.

The statement also claims Lynch is being made a scapegoat for HP’s failures, framing the allegations as a business dispute over the application of UK accounting standards. 

Two years ago we interviewed Lynch on stage at TechCrunch Disrupt London and he mocked the morass of allegations still swirling around the acquisition as “spin and bullshit”.

Following the latest developments, the BBC reports that Lynch has stepped down as a scientific adviser to the UK government.

“Dr. Lynch has decided to resign his membership of the CST [Council for Science and Technology] with immediate effect. We appreciate the valuable contribution he has made to the CST in recent years,” a government spokesperson told it.


By Natasha Lomas

Juro grabs $2M to take the hassle out of contracts

UK startup Juro, which is applying a “design centric approach” and machine learning tech to help businesses speed up the authoring and management of sales contracts, has closed $2m in seed funding led by Point Nine Capital.

Prior investor Seedcamp also contributed to the round. Juro is announcing Taavet Hinrikus (TransferWise’s co-founder) as an investor now too, as well as Michael Pennington (Gumtree co-founder) and the family office of Paul Forster (co-founder of Indeed.com).

Back in January 2017 the London-based startup closed a $750,000 (£615k) seed round, though CEO and co-founder Richard Mabey tells us that was really better classed as an angel round — with Point Nine Capital only joining “late” in the day.

“We actually could have strung it out to Series A,” he says of the funding that’s being announced now. “But we had multiple offers come in and there is so much of an explosion in demand for the [machine learning] that it made sense to do a round now rather than wait for the A. The whole legal industry is undergoing radical change and we want to be leading it.”

Juro’s SaaS product is an integrated contracts workflow that combines contract creation, e-signing and commenting capabilities with AI-powered contract analytics.

Its general focus is on customers that have to manage a high volume of contacts — such as marketplaces.

The 2016-founded startup is not breaking out any customer numbers yet but says its client list includes the likes of Estee Lauder, Deliveroo and Nested. And Mabey adds that “most” of its demand is coming from enterprise at this point, noting it has “several tech unicorns and Fortune 500 companies in trial”.

While design is clearly a major focus — with the startup deploying clean-looking templates and visual cues to offer a user-friendly ‘upgrade’ on traditional legal processes — the machine learning component is its scalable, value-added differentiator to serve the target b2b users by helping them identify recurring sticking points in contract negotiations and keep on top of contract renewals.

Mabey tells TechCrunch the new funding will be used to double down on development of the machine learning component of the product.

“We’re not the first to market in contract management by about 25 years,” he says with a smilie. “So we have always needed to prove out our vision of why the incumbents are failing. One part of this is clunky UX and we’ve succeeded so far in replacing legacy providers through better design (e.g. we replace DocuSign at 80% of our customers).

“But the thing we and our investors are really excited about is not just helping businesses with contract workflow but helping them understand their contract data, auto-tag contracts, see pattens in negotiations and red flag unusual contract terms.”

While this machine learning element is where he sees Juro cutting out a competitive edge in an existing and established market, Mabey concedes it takes “quite a lot of capital to do well”. Hence taking more funding now.

“We need a level of predictive accuracy in our models that risk averse lawyers can get comfortable with and that’s a big ask!” he says.

Specifically, Juro will be using the funding to hire data scientists and machine learning engineers — building out the team at both its London and Riga offices. “We’re doing it like crazy,” adds Mabey. “For example, we just hired from the UK government Digital Service the data scientist who delivered the first ML model used by the UK government (on the gov.uk website).

“There is a huge opportunity here but great execution is key and we’re building a world class team to do it. It’s a big bet to grow revenue as quickly as we are and do this kind of R&D but that’s just what the market is demanding.”

Juro’s HQ remains in London for now, though Mabey notes its entire engineering team is based in the EU — between Riga, Amsterdam and Barcelona — “in part to avoid ‘Brexit risk’”.

“Only 27% of the team is British and we have customers operating in 12 countries — something I’m quite proud of — but it does leave us rather exposed. We’re very open minded about where we will be based in the future and are waiting to hear from the government on the final terms of Brexit,” he says when asked whether the startup has any plans to Brexit to Berlin.

“We always look beyond the UK for talent: if the government cannot provide certainty to our Romanian product designer (ex Kalo, Entrepreneur First) that she can stay in the UK post Brexit without risking a visa application, tbh it makes me less bullish on London!”