15 May

MemSQL raises $30M Series D round for its real-time database

MemSQL, a company best known for the real-time capabilities of its eponymous in-memory database, today announced that it has raised a $30 million Series D round, bringing the company’s overall funding to $110 million. The round was led by GV (the firm you probably still refer to as Google Ventures) and Glynn Capital. Existing investors Accell, Caffeinated Capital, Data Collective and IA Ventures also participated.

The MemSQL database offers a distributed, relational database that uses standard SQL drivers and queries for transactions and analytics. Its defining feature is the combination of its data ingestions technology that allows users to push millions of events per day into the service while its users can query the records in real time. The company recently showed that its tools can deliver a scan rate of over a trillion rows per second on a cluster with 12 servers.

The database is available for deployments on the major public clouds and on-premises.

https://www.youtube.com/embed/emcsC_hmN8s?version=3&rel=1&fs=1&autohide=2&showsearch=0&showinfo=1&iv_load_policy=1&wmode=transparent

MemSQL recently announced that it saw its fourth-quarter commercial booking hit 200 percent year-over-year growth — and that’s typically the kind of growth that investors like to see, even as MemSQL plays in a very competitive market with plenty of incumbents, startups and even open-source projects. Current MemSQL users include the likes of Uber, Akamai, Pinterest, Dell EMC and Comcast.

“MemSQL has achieved strong enterprise traction by delivering a database that enables operational analysis at unique speed and scale, allowing customers to create dynamic, intelligent applications,” said Adam Ghobarah, general partner at GV, in today’s announcement. “The company has demonstrated measurable success with its growing enterprise customer base and we’re excited to invest in the team as they continue to scale.”


Source: TechCrunch – Startups

18 Apr

Funding Societies, a Southeast Asian lending platform, gets $25M Series B led by Softbank Ventures Korea

Funding Societies co-founders Reynold Wijaya and Kelvin Teo.

Funding Societies, a peer-to-peer lending platform in Southeast Asia, said today that it has raised a $25 million Series B led by Softbank Ventures Korea, the Japanese tech conglomerate’s early-stage venture capital unit. The round included returning investors Sequoia India, which led the Singapore-based startup’s Series A two years ago, Golden Gate Ventures and Alpha JWC Ventures, as well as new backers Qualgro and LINE Ventures.

Funding Societies also said it has raised credit lines from banks and financial institutions to lend to small- to medium-sized businesses. Founded in 2015 by Kelvin Teo and Reynold Wijaya, the startup’s name represents its “vision of financial inclusion in Southeast Asia.”

Its Series B was oversubscribed, says Funding Societies, which operates in Singapore, Indonesia, where it is called Modalku, and Malaysia.

When it announced its $7.5 million Series A in August 2016, Funding Societies had disbursed $8.7 million Singaporean dollars, a number that has since grown to $145 million SGD, chief executive officer Teo tells TechCrunch. Since its launch, the startup has increased its lender base to more than 60,000 and now claims a default rate of less than 1.5%, down from about 2% to 3% two years ago, thanks to improvements in its underwriting model.

In a press statement, Softbank Ventures Korea partner and managing director Sean Lee said the firm “has been actively investing across Southeast Asia. SME digital lending across Southeast Asia is where we saw huge growth potential. Among many players, we were most impressed with Funding Societies for what it has achieved in a short period of time and its potential to continue to become the number one player.”

Though Teo says Funding Societies is “always exploring other markets, there is still tons of work we need to do in our current three markets.” Despite its considerable growth over the past three years, the startup’s mantra is “slow and steady,” a phrase Teo repeated often during our interview.

“One of the key things we highlight is that it’s more important for us to grow slowly and steadily instead of fast and recklessly, because it’s a trust-based industry,” says Teo.

“We need to give out loans and be able to collect them back, so we focus on learning the market, understanding the market and solving key pain points instead of giving out a bunch of loans to chalk up high numbers and attract VCs.”

For example, though the platform may offer personal loans in the future, Teo said it currently only lends to SMEs because “we believe that we are strategically better suited to serving small businesses and, in terms of our company’s values, we think that serving SMEs is an expansionary effort. Consumer financing, in our personal view, is more consumptive finance. It doesn’t help grow economies.”

Many of the SMEs the company serves are very small. Some of its Indonesian borrowers, for example, make annual revenue of about $5,000 USD per year.

“Many of these borrowers are seeking their first business loan and do not have other sources of financing. A lot of financial institutions take a collateral underwriting approach and a lot of budding businesses would not be able to secure financing that way,” says Teo.

“But we also see some of them come to us as a form of top-up. They already have a bank loan, but it is insufficient for them, so they come to us because they are limited by the size of their collateral. Also, we are able to process financing faster than traditional institutions.”

Funding Societies was created to give SMEs, many of which had previously relied mostly on friends and family loans, access to more means of financing. The company points to a recent study by Ernst & Young, UOB and Dun & Bradstreet that says 65.2% of SMEs in Southeast Asia do not have easy access to traditional business financing, even though most are open to other options, including peer-to-peer lending platforms.

The company says it was the first online peer-to-peer lending platform in Malaysia and that based on third-party data, it is now the leading SME lending platform there, as well as one of Singapore’s three largest peer-to-peer lending platforms. It also holds sizable market share in Indonesia.

Though its platform uses algorithms for initial application screening, a significant portion of work, depending on loan size, is still done by Funding Societies’ employees, who have grown in number from 70 in 2016 to 165 now (Teo says the company is currently hiring in earnest and willing to pay relocation costs for promising talent). Almost all applicants talk directly to someone from the company. Micro-loans, which range in size from $500 USD to $40,000 USD, usually take about two business hours to approve and disburse, while applicants for larger loans may have to wait a few days to about a week.

“We’ve debated and discussed internally a lot if we leave too much money on the table, because our default rate is lower than certain banks in the markets we are serving, but given that we are still at a relatively nascent stage in the lending market and have no control over financial crises, it is more important to stay prudent than to grow recklessly,” says Teo.

This methodical approach is also important when entering new markets. Though many outside observers take the umbrella term “Southeast Asia” a little too literally, ignoring cultural differences between each country, Teo says it is still a fragmented market, so financial service companies need to localize carefully. When Funding Societies enters a new market, it can probably port about 50% of its tech and business model from its previous market, but the other half has to be built from ground up to account for economic and cultural differences, he adds.

“SME financing is a very localized business. With sufficient capital you can win the market and it’s really driven by subsidies and strong marketing,” Teo says. “But for SMEs, you really, really need to understand the local market.”


Source: TechCrunch – Startups

21 Mar

Kyklo is bringing the billion-dollar electromechanical industry into digital sales

The electromechanical industry may not be the kind of sexy tech that you’ll regularly read about in TechCrunch, but we like solutions to problems, and that is why I am about to write about a company in the aforementioned industry. Add in that the startup is based in Asia — Thailand, to be precise — and we have the recipe for a young company to keep an eye on.

Kyklo is the company and it is aimed at bringing the electromechanical space, which is worth over $1 trillion per year across 100,000s of distributors and retailers worldwide, into the digital era. The company operates a service that brings sales channels, inventory and networks online to replace the existing system, which is largely offline.

As of now, for example, if an OEM is selling air conditioning units for a new building development — the industry touches 5-20 percent of every new building via electrical equipment — the process will typically be handled by a reseller who presents a paper-based inventory to the buyer. Kyklo is proposing to take things online by allowing OEMs to lay out their inventory in a web-based shop — like Shopify — which can then be used by the reseller to solicit sales.

The idea may seem elementary, but the benefits go beyond ease of use — a website obviously has plenty of benefits over a physical sales catalog — including increased visibility to the OEM, who previously relied on the reseller for sales data. Resellers themselves also have a more dynamic catalog of products to share with prospective sales leads, which is also designed to feature highly in search engine rankings to help bring in inbound sales leads.

Kyklo began as a Shopify-like solution when it was founded in 2015 by two former employees of Schneider Electric, the $50-billion electric and energy company that is listed in Paris, France. Over the past year, however, the startup refocused into a sales lead and management tool for both OEMs and resellers.

CEO Remi Ducrocq — who started Kyklo with fellow co-founder and CTO Fabien Legouic — told TechCrunch that there was an expectation that simply by launching a store sales leads would land. While Kyklo does optimize search ranking, it works best as an aid for teams by helping coordinate sales leads, giving greater transparency on data — for future sales predictions — making it easy to add new products quickly, and automating much of the process for repeat customers.

Kyklo CEO Remi Ducrocq and CTO Fabien Legouic (left and right) both formerly worked for Schneider Electric

Rather than spending time requests from existing customers with phone calls and emails, resellers can simply provide a link to the catalog and enable customers to handle the re-purchasing process by themselves. That frees up resources to chase new sales and more.

“When we pitch distributors on why they should digitize their sales operations, it is first about how you get your existing customers online. So you shift your business from offline to online and by doing so you’ll get better satisfaction and you’ll be able to saturate your customer base,” Ducrocq said, pointing out that the service has helped some customers add 20 percent more sales from existing customers.

“Considering a distributor has 10 sales guys covering 1,000 customers, the truth is they only spend time with 50 guys who do 80 percent of the orders,” Ducrocq added. “On existing customers, a lot of the work is really admin [so] that’s something you can take off by making it digital.”

Kyklo’s customer base includes Schneider Electric and Thailand-based Interlink, the latter of which told TechCrunch in a statement that it grew revenue from its online business five-fold “in a matter of months” after coming on the Kyklo platform.

The benefit for OEMs is obvious, but initially some resellers were initially unsure of allowing a third-party into the relationship with their supplier (OEM). Kyklo CEO Ducrocq said his company has no interest in entering the reseller space. In fact, it has field agents who accompany resellers to meetings with their major buyers to help them come aboard while it jointly works on data and statistics to help reseller teams target new sales opportunities.

While it is sticking firmly to its position in the sales cycle, the startup does, however, have designs on international expansion. Right now, has customers in seven markets in Asia — Ducrocq is half-French, half-Thai hence the initial location in Bangkok — but already it is casting eyes on the European and North American markets.

U.S.-based Handshake, a B2B sales platform that has raised over $20 million from investors, is perhaps one of the most notable competitors it would come up against, but Kyklo believes its focus on the electromechanical space can help it conquer its niche. The startup is also looking to expand its relationship with existing global customers who it services in Asia to cover new markets that will give it a rolling start to its expansions.

“Right now we’re looking at which two countries we will do in Europe, and where we will go in the U.S.,” Ducrocq said.

In order to aid that expansion, Kyklo has raised funding from investors that include Singapore-based duo SeedPlus and Wavemaker Partners. Ducrocq declined to provide financial details of the round, while he also declined to give financial details on Kyklo’s business.

The company currently has 40 staff in its Bangkok HQ, with a number of remote business development and sales executives. While it plans to increase the number of staff it has outside of Thailand, there is no plan to relocate its main office from Bangkok.

The Kyklo office in Bangkok


Source: TechCrunch – Funding and Exits

21 Mar

CryptoKitties raises $12M from Andreessen Horowitz and Union Square Ventures

CryptoKitties, the virtual collectible kitten game that turned into a viral sensation has raised $12M in funding and will be spun out from Axiom Zen, the Vancouver and San Francisco-based design studio that originally built the game.

The round is being led by Andreessen Horowitz and Union Square Ventures, both of which have quickly developed a reputation for backing fast-growing cryptocurrency startups like Coinbase. A bunch of notable angels also participated, including Naval Ravikant (CEO and founder of AngelList), Mark Pincus (founder of Zynga) and Fred Ehrsam (founder of Coinbase) among others.

So what are CryptoKitties? They’re essentially digital collectibles built on top of the Ethereum blockchain. Each one is unique and has certain attributes that make them rare and desirable, almost like a digital beanie baby. And users are spending tons of real money on them, with some of the rarest kitties fetching over $100,000 when the game first launched.

While the startup is being pretty mum on what the future looks like and what they’re planning on using this funding for, it’s almost certain that the long term goal is to expand beyond CryptoKitties and use the same Ethereum ERC-721 collectible standard to create other game experiences, especially ones that can be played by regular people who are unfamiliar with cryptocurrency.

To this note, Fred Wilson of USV quickly outlined the firm’s thesis behind investing in CryptoKitties, saying “we think digital collectibles is one of many amazing things that blockchains enable that literally could not be done before this technology emerged. We also think digital collectibles and all of the games they enable will be one of the first, if not the first, big consumer use cases for blockchain technologies.” 

If you want to find out more about how CryptoKitties works check out our original story here.


Source: TechCrunch – Startups

23 Jan

Facebook acquires biometric ID verification startup Confirm.io

 Facebook has confirmed to TechCrunch that it’s acquired… Confirm.io. The startup offered an API that let other companies quickly verify someone’s government-issued identification card, like a driver’s license, was authentic. The Boston-based startup will shut down as both its team and technology are rolled into Facebook. Read More
Source: TechCrunch – Startups

26 Dec

HQ Trivia is coming soon to Android

 HQ Trivia is letting Android users pre-register for the live-streamed trivia game built by the makers of Vine, Rus Yusupov and Colin Kroll. Pre-registering means you’ll get notified the moment HQ Trivia is available for download. HQ, which opened up pre-registration on December 24, had previously marketed its Android app as being available “this Christmas.” To me, that means… Read More
Source: TechCrunch – Startups

23 Dec

Theranos gets $100 million in debt financing to carry it through 2018, with some caveats

 Theranos has secured $100 million in debt financing. Yes, someone gave the blood testing company known for handing out questionable test results money.
First reported by Business Insider, the company reportedly told investors it had secured the money from Fortress Investment Group, a New York-based private equity firm that was acquired by Softbank earlier this year.
Of course, this is debt… Read More
Source: TechCrunch – Funding and Exits

29 Nov

SoftBank says that Benchmark and Menlo intend to sell Uber shares

 SoftBank Group has confirmed that it has found likely sellers for the tender offer for Uber’s shares, which launched tonight. These are the shares from existing shareholders that will be sold at more than a 30% discount to Uber’s last private round.  The Japanese investment firm provided us with the following statement. “SoftBank and Dragoneer have received indications… Read More
Source: TechCrunch – Startups