Ketch raises another $20M as demand grows for its privacy data control platform

Six months after securing a $23 million Series A round, Ketch, a startup providing online privacy regulation and data compliance, brought in an additional $20 million in A1 funding, this time led by Acrew Capital.

Returning with Acrew for the second round are CRV, super{set} (the startup studio founded by Ketch’s co-founders CEO Tom Chavez and CTO Vivek Vaidya), Ridge Ventures and Silicon Valley Bank. The new investment gives Ketch a total of $43 million raised since the company came out of stealth earlier this year.

In 2020, Ketch introduced its data control platform for programmatic privacy, governance and security. The platform automates data control and consent management so that consumers’ privacy preferences are honored and implemented.

Enterprises are looking for a way to meet consumer needs and accommodate their rights and consents. At the same time, companies want data to fuel their growth and gain the trust of consumers, Chavez told TechCrunch.

There is also a matter of security, with much effort going into ransomware and malware, but Chavez feels a big opportunity is to bring security to the data wherever it lies. Once the infrastructure is in place for data control it needs to be at the level of individual cells and rows, he said.

“If someone wants to be deleted, there is a challenge in finding your specific row of data,” he added. “That is an exercise in data control.”

Ketch’s customer base grew by more than 300% since its March Series A announcement, and the new funding will go toward expanding its sales and go-to-market teams, Chavez said.

Ketch app. Image Credits: Ketch

This year, the company launched Ketch OTC, a free-to-use privacy tool that streamlines all aspects of privacy so that enterprise compliance programs build trust and reduce friction. Customer growth through OTC increased five times in six months. More recently, Qonsent, which developing a consent user experience, is using Ketch’s APIs and infrastructure, Chavez said.

When looking for strategic partners, Chavez and Vaidya wanted to have people around the table who have a deep context on what they were doing and could provide advice as they built out their products. They found that in Acrew founding partner Theresia Gouw, whom Chavez referred to as “the OG of privacy and security.”

Gouw has been investing in security and privacy for over 20 years and says Ketch is flipping the data privacy and security model on its head by putting it in the hands of developers. When she saw more people working from home and more data breaches, she saw an opportunity to increase and double down on Acrew’s initial investment.

She explained that Ketch is differentiating itself from competitors by taking data privacy and security and tying it to the data itself to empower software developers. With the OTC tool, similar to putting locks and cameras on a home, developers can download the API and attach rules to all of a user’s data.

“The magic of Ketch is that you can take the security and governance rules and embed them with the software and the piece of data,” Gouw added.

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Acrew Capital, Jeff Bezos back Colombia-based proptech La Haus’ $100M debt, equity round

La Haus, which has developed an online real estate marketplace operating in Mexico and Colombia, has secured $100 million in additional funding, including $50 million in equity and $50 million in debt financing.

The new capital was obtained as an extension to the company’s Series B, the first tranche of which closed in January. With the latest infusion, Medellin, Colombia-based La Haus has now secured $135 million total for the round and over $158 million in funding since its 2017 inception.

San Francisco Bay Area venture firms Acrew Capital and Renegade Partners co-led the round, which also included participation from Jeff Bezos’ Bezos Expeditions, Endeavor Catalyst, Moore Strategic Ventures, Marc Benioff’s TIME Ventures, Rappi’s Simon Borrero, Maluma, and Gabriel Gilinski. Existing backers who put money in this round include Greenspring Associates, Kaszek, NFX, Spencer Rascoff’s 75 & Sunny Ventures, Hadi Partovi and NuBank’s David Velez. 

Jerónimo Uribe (CEO), Rodrigo Sánchez-Ríos (president), Tomás Uribe (chief growth officer) and Santiago Garcia (CTO) founded the company after Jerónimo and Tomas met Sánchez-Ríos at Stanford University. Prior to La Haus they started and ran Jaguar Capital, a Colombian real estate development company with over $350 million of completed retail and residential projects. 

The company declined to reveal at what valuation the extension was raised, with Sánchez-Ríos saying only that it was “a significant increase” from January.

The Series B extension follows impressive growth for the startup, which saw the number of transactions conducted on its Mexico portal climb by nearly 10x in the second quarter of 2021 compared to the 2020 second quarter. With over 500 homes selling on its platform (via lahaus.com and lahaus.mx) the company is “the market leader in selling new housing in Spanish-speaking Latam by an order of magnitude,” its execs claim.  La Haus expects to have facilitated more than $1 billion in annualized gross sales by the end of the year. 

The startup was founded with the mission of making it easier for people to buy homes and helping “solve LatAm’s extreme housing inequality.” Its end goal is to accelerate access to new housing by both generating and curating supply and demand and then matching it with its technology, noted Sánchez-Ríos. 

“In the last six months, our chief product officer has built a product that allows this to happen 100% digitally,” he said. “Before it would take a lot of time, people involved and visits. We want to provide people looking for a home a similar experience as to people looking for their next flight at delta.com.”

It has done that by embedding its software to developers’ new projects so that it can bring that digital experience to its users. 

“They are able to view the projects on our sites, we match them and then they can see in real time which units of a particular tower are available, and then select, sign and pay for everything digitally,” Sánchez-Río said.

Image credit: La Haus

The need for new housing in the region and other emerging markets in general is acute, they believe. And the pace of building new homes is slow because small and mid-sized developers – who are responsible for building the majority of new homes in Latin America – are cash constrained. At the same time, mortgages are mostly not affordable for consumers, with banks extending only a fraction of the credit to individuals compared to the U.S., and often at far worse terms. 

What La Haus is planning to do with its new capital – particularly the debt portion – is go beyond selling homes via its marketplace to helping extend financing to both developers and potential buyers.It plans to take the proprietary data it has been able to glean from the thousands of real estate transactions conducted on it platform to extend capital to developers and consumers “more quickly, with much lower risk and at better terms.”

Already, what the startup has accomplished is notable. Being able to purchase a home 100% digitally is not that easy even in the U.S. Pulling that off in Latin America – which has historically trailed behind in digital adoption – is no easy feat. By year’s end, La Haus intends to be in every major metropolitan area in Mexico and Colombia. 

Its ultimate goal is to be able to help new, sustainable homes “to be built faster, alleviating the inequality caused by lack of access to inventory.”

To Acrew Capital’s Lauren Kolodny, La Haus is building a solution specific to the issues of Latin America’s housing market, rather than importing business models – such as iBuying – from the U.S.

“For many people in the United States home equity is their largest asset. In Latin America, however, consumers have been challenged with an impenetrable real estate market stacked against consumers,” she wrote via email. “La Haus is removing barriers to home ownership that stifles millions of people from achieving financial security. Specifically, Latin America has no centralized MLS, very costly interest rates, no transactional transparency, and few online informational tools.”

La Haus, Kolodny added, is breaking down these barriers by consolidating listings online, offering pricing transparency and educating consumers about their financing options.

Acrew first invested in the startup in its $10 million Series A and has been impressed with its growth over time.

“They have a unique focus on new housing — a massive industry worldwide, but especially in emerging markets where new housing is so necessary,” Kolodny said. “The management team…knows real estate in Latin America better than anyone we’ve met.”

For its part, the La Haus team is excited to put its new capital to work. As Sánchez-Río put it, “$50 million goes a lot further in Mexico and Colombia than in the U.S.”

“We are going to be very aggressive in Mexico and Colombia, and plan to go from four to at least 12 markets by the end of the year,” Jeronimo told TechCrunch. “We’re also excited to roll out our financing solution to developers and buyers.”

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Cybersecurity unicorn Exabeam raises $200M to fuel SecOps growth

Exabeam, a late-stage startup that helps organizations detect advanced cybersecurity threats, has landed a new $200 million funding round that values the company at $2.4 billion.

The Series F growth round was led by the Owl Rock division of Blue Owl Capital, with support from existing investors Acrew Capital, Lightspeed Venture Partners and Norwest Venture Partners.

The announcement of Exabeam’s latest funding, which the company says will help it on its mission to become “the number one trusted cloud SeCops platform in the market”, coincides with the news that CEO Nir Polak, who co-founded the company in 2013, will be replaced by former ForeScout chief executive Michael DeCesare.

DeCesare is a big name in the cybersecurity space, with more than 25 years of experience leading high-growth security companies. He joined ForeScout as CEO and president in February 2015 after four years as president of McAfee, which at the time was owned by Intel. Under his leadership, ForeScout raised nearly $117 million in an upsized IPO that valued the IoT security vendor at $800 million.

Polak, meanwhile, will shift to a chairman role at Exabeam and “will continue on as an active member of the executive team and remain at the company,” according to the funding announcement.

“Nir has built an incredibly robust, diverse and inclusive culture at Exabeam, and I am committed to helping it flourish,” said DeCesare. “I’m thrilled to join Nir and the whole leadership team to help drive the company through its next phase of growth.”

Exabeam, which has now raised $390 million in six rounds of outside funding, says it expects to use the new money to fuel scale, innovate and extend the company’s leadership. “It gives us the opportunity to triple down on our R&D efforts and continue engineering the most advanced UEBA, XDR and SIEM cloud security products available today,” commented Polak.

The company adds that it has made significant investments in its partner program over the last 12 months, which now includes more than 400 reseller, distributor, systems integrator, MSSP, MDR and consulting partners globally. Exabeam also has more than 500 technology integrations with cloud network, data lake and endpoint vendors including CrowdStrike, Okta and Snowflake.

It’s clearly expecting these investments to pay off, describing its “outcome-based approach” to external security as perfectly suited to support organizations as they manage exponential amounts of data and return to the post-COVID workplace in a variety of hybrid scenarios. After all, hackers are already beginning to target employees who have started making a return to the office, and this threat is only likely to increase as more companies begin to dial back on remote working and start welcoming staff back into workplaces.

“Exabeam is poised to be the next-gen leader in the cloud security analytics, XDR and SIEM markets,” Pravin Vazirani, Blue Owl Capital’s managing director and co-head of tech investing, said in a statement. “We led this round of funding to provide the company with the resources necessary to support its sustainable, long-term growth and value creation.”

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Pie Insurance raises $118M for data-driven workers’ comp coverage

Pie Insurance, a startup offering workers’ compensation insurance to small businesses, announced this morning that it has closed on $118 million in a Series C round of funding.

Allianz X — investment arm of German financial services giant Allianz — and Acrew Capital co-led the round, which brings the Washington, D.C.-based startup’s total equity funding raised to over $300 million since its 2017 inception. Pie declined to disclose the valuation at which its latest round was raised, other than to say it was “a significant increase.”

Return backers Greycroft, SVB Capital, SiriusPoint, Elefund and Moxley Holdings also participated in the Series C financing.

The startup, which uses data and analytics in its effort to offer SMBs a way to get insurance digitally and more affordably, has seen its revenues climb by 150% since it raised $127 million in a Series B extension last May. Its headcount too has risen — to 260 from 140 last year.

Pie began selling its insurance policies in March 2018. The company declined to give recent hard revenue numbers, saying it only has grown its gross written premium to over $100 million and partnered with over 1,000 agencies nationwide. Last year, execs told me that in the first quarter of 2020, the company had written nearly $19 million in premiums, up 150% from just under $7.5 million during the same period in 2019.

Like many other companies over the past year, Pie Insurance — with its internet-driven, cloud-based platform — has benefited from the increasing further adoption of digital technologies. 

“We are riding that wave,” said Pie Insurance co-founder and CEO John Swigart. “We believe small businesses deserve better than they have historically gotten. And we think that technology can be the means by which that better experience, that more efficient process, and fundamentally, that lower price can be delivered to them.”

Pie’s customer base includes a range of small businesses including trades, contractors, landscapers, janitors, auto shops and restaurants. Pie sells its insurance directly through its website and also mostly through thousands of independent insurance agents.

Workers’ compensation insurance is the only commercial insurance mandated for every company in the United States, points out Lauren Kolodny, founding partner at Acrew Capital.

“Historically, it’s been extremely cumbersome to qualify, onboard and manage workers’ comp insurance — particularly for America’s small businesses which haven’t been prioritized by larger carriers,” she wrote via email. 

Pie, Koldony said, is able to offer underwriting decisions “almost instantly,” digitally and more affordably than legacy insurance carriers.

“I have seen very few insurtech teams that come close,” she added.

Dr. Nazim Cetin, CEO of Allianz X, told TechCrunch via email that his firm believes Pie is operating in an “attractive and growing market that is ripe for digital disruption.”

The company, he said, leverages “excellent,” proprietary data and advanced analytics to be able to provide tailored underwriting and automation. 

“We see some great collaboration opportunities with Allianz companies too,” he added.

Looking ahead, the company plans to use its new capital to invest further in technology and automation, as well as to grow its core workers’ comp insurance business and “lay the groundwork for new business offerings in 2021 and beyond.”

#acrew-capital, #allianz, #allianz-x, #america, #financial-services, #funding, #fundings-exits, #insurance, #insurance-policies, #insurtech, #lauren-kolodny, #pie-insurance, #recent-funding, #startups, #svb-capital, #underwriting, #united-states, #venture-capital, #washington-d-c

Aqua Security raises $135M at a $1B valuation for its cloud native security service

Aqua Security, a Boston- and Tel Aviv-based security startup that focuses squarely on securing cloud-native services, today announced that it has raised a $135 million Series E funding round at a $1 billion valuation. The round was led by ION Crossover Partners. Existing investors M12 Ventures, Lightspeed Venture Partners, Insight Partners, TLV Partners, Greenspring Associates and Acrew Capital also participated. In total, Aqua Security has now raised $265 million since it was founded in 2015.

The company was one of the earliest to focus on securing container deployments. And while many of its competitors were acquired over the years, Aqua remains independent and is now likely on a path to an IPO. When it launched, the industry focus was still very much on Docker and Docker containers. To the detriment of Docker, that quickly shifted to Kubernetes, which is now the de facto standard. But enterprises are also now looking at serverless and other new technologies on top of this new stack.

“Enterprises that five years ago were experimenting with different types of technologies are now facing a completely different technology stack, a completely different ecosystem and a completely new set of security requirements,” Aqua CEO Dror Davidoff told me. And with these new security requirements came a plethora of startups, all focusing on specific parts of the stack.

Image Credits: Aqua Security

What set Aqua apart, Dror argues, is that it managed to 1) become the best solution for container security and 2) realized that to succeed in the long run, it had to become a platform that would secure the entire cloud-native environment. About two years ago, the company made this switch from a product to a platform, as Davidoff describes it.

“There was a spree of acquisitions by CheckPoint and Palo Alto [Networks] and Trend [Micro],” Davidoff said. “They all started to acquire pieces and tried to build a more complete offering. The big advantage for Aqua was that we had everything natively built on one platform. […] Five years later, everyone is talking about cloud-native security. No one says ‘container security’ or ‘serverless security’ anymore. And Aqua is practically the broadest cloud-native security [platform].”

One interesting aspect of Aqua’s strategy is that it continues to bet on open source, too. Trivy, its open-source vulnerability scanner, is the default scanner for GitLab’s Harbor Registry and the CNCF’s Artifact Hub, for example.

“We are probably the best security open-source player there is because not only do we secure from vulnerable open source, we are also very active in the open-source community,” Davidoff said (with maybe a bit of hyperbole). “We provide tools to the community that are open source. To keep evolving, we have a whole open-source team. It’s part of the philosophy here that we want to be part of the community and it really helps us to understand it better and provide the right tools.”

In 2020, Aqua, which mostly focuses on mid-size and larger companies, doubled the number of paying customers and it now has more than half a dozen customers with an ARR of over $1 million each.

Davidoff tells me the company wasn’t actively looking for new funding. Its last funding round came together only a year ago, after all. But the team decided that it wanted to be able to double down on its current strategy and raise sooner than originally planned. ION had been interested in working with Aqua for a while, Davidoff told me, and while the company received other offers, the team decided to go ahead with ION as the lead investor (with all of Aqua’s existing investors also participating in this round).

“We want to grow from a product perspective, we want to grow from a go-to-market [perspective] and expand our geographical coverage — and we also want to be a little more acquisitive. That’s another direction we’re looking at because now we have the platform that allows us to do that. […] I feel we can take the company to great heights. That’s the plan. The market opportunity allows us to dream big.”

 

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Ex-General Catalyst and General Atlantic VC announces $68M debut fund

As of 2019, the majority of venture firms — 65% — still did not have a single female partner or GP at their firm, according to All Raise.

So naturally, anytime we hear of a new female-led fund, our ears perk up.

Today, New York-based Avid Ventures announced the launch of its $68 million debut venture capital fund. Addie Lerner — who was previously an investor with General Catalyst, General Atlantic and Goldman Sachs — founded Avid in 2020 with the goal of taking a hands-on approach to working with founders of early-stage startups in the United States, Europe and Israel.

“We believe investing in a founder’s company is a privilege to be earned,” she said.

Tali Vogelstein — a former investor at Bessemer Venture Partners — joined the firm as a founding investor soon after its launch and the pair were able to raise the capital in 10 months’ time during the 2020 pandemic.

The newly formed firm has an impressive list of LPs backing its debut effort. Schusterman Family Investments and the George Kaiser Family Foundation are its anchor LPs. Institutional investors include Foundry Group, General Catalyst, 14W, Slow Ventures and LocalGlobe/Latitude through its Basecamp initiative that backs emerging managers. 

Avid also has the support of 50 founders, entrepreneurs and investors as LPs — 40% of whom are female — including Mirror founder Brynn Putnam; Getty Images co-founder Jonathan Klein; founding partner of Acrew Capital Theresia Gouw and others.

Avid invests at the Series A and B stages, and so far has invested in Alloy, Nova Credit, Rapyd, Staircase, Nava and The Wing. Three of those companies have female founders — something Lerner said happened “quite naturally.”

“Diversity can happen and should happen more organically as opposed to quotas or mandates,” she added.

In making those deals, Avid partnered with top-tier firms such as Kleiner Perkins, Canapi Ventures, Zigg Capital and Thrive Capital. In general, Avid intentionally does not lead its first investments in startups, with its first checks typically being in the $500,000 to $1 million range. It preserves most of its capital for follow-on investments.

“We like to position ourselves to earn the right to write a bigger check in a future round,” Lerner told TechCrunch. 

In the case of Rapyd, Avid organized an SPV (special-purpose vehicle) to invest in the unicorn’s recent Series D. Lerner had previously backed the company’s Series B round while at General Catalyst and remains a board observer.

Prior to founding Avid, Lerner had helped deploy more than $450 million across 18 investments in software, fintech (Rapyd & Monzo) and consumer internet companies spanning North America, Europe and Israel. 

When it comes to sectors, Avid is particularly focused on backing early-stage fintech, consumer internet and software companies. The firm intends to invest in about 20 startups over a three-to-four year period.

“We want to take our time, so we can be as hands-on as we want to be,” Lerner said. “We’re not looking to back 80 companies. Our goal is to drive outstanding returns for our LPs.”

The firm views itself as an extension of its portfolio companies’ teams, serving as their “Outsourced Strategic CFO.” Lerner and Vogelstein also aim to provide the companies they work with strategic growth modeling, unit economics analysis, talent recruiting, customer introductions and business development support.

“We strive to build deep relationships early on and to prove our value well ahead of a prospective investment,” Lerner said. Avid takes its team’s prior data-driven experience to employ “a metrics-driven approach” so that a startup can “deeply understand” their unit economics. It also “gets in the trenches” alongside founders to help grow a company.

Ed Zimmerman, chair of Lowenstein Sandler LLP’s tech group in New York and adjunct professor of VC at Columbia Business School, is an Avid investor.

He told TechCrunch that because of his role in the venture community, he is often counsel to a company or fund and will run into former students in deals. Feedback from numerous people in his network point to Lerner being “extraordinarily thoughtful about deals,” with one entrepreneur describing her as “one of the smartest people she has met in a decade-plus in venture.”

“I’ve seen it myself in deals and then I’ve seen founders turn down very well branded funds to work with Addie,” Zimmerman added, noting they are impressed both by her intellect and integrity. “…Addie will find and win and be invited into great deals because she makes an indelible impression on the people who’ve worked with her and the data is remarkably consistent.”

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Two new efforts push to transform more people into limited partners of VC funds

Venture funds have historically counted on a few types of investors — or limited partners — for their investing capital. One of these groups is institutional investors — think pension funds, university endowments, hospital systems and the like. Another is corporations. A third bucket centers on the family offices of wealthy individuals.

It’s a fairly small universe, in other words, but two new initiatives, both announced this week and both very different, are looking to change the equation — and could usher in similar efforts soon.

Arlan Hamilton came out with her news first. Hamilton is the founder of Backstage Capital, a venture firm focused on investing in startups founded by people of color, women, and teams with members from the LGBTQ community. In short, diversity is at its very core. But Hamilton, who is herself Black, isn’t interested in funding diverse founders alone; she is also interested in enabling more people from diverse backgrounds — including socioeconomically — to invest in venture capital as an asset class.

Toward that end, earlier this week, on the private investing platform Republic, she opened a new fund that anyone — including unaccredited investors — could back under a Securities and Exchange Commission rule called Reg CF, or Regulation Crowdfunding.

Hamilton hit the upper boundary of what Reg CF allows an outfit to raise — $1,070,000 within a 12-month period — in what seemed like hours from 2,790 investors who were invited to invest as little as $100. But more could be coming. The reason why: that rule underwent a change in November under former SEC chair Jay Clayton, and will next month begin allowing outfits to crowdsource up to $5 million. The process could be slowed down by the incoming SEC chief. (President Biden has appointed former regulator and former Goldman partner Gary Gensler, who must now receive Senate confirmation.) If it’s not, however, it’s easy to imagine more unaccredited investors being invited to fund other, and larger, venture funds soon.

Subhead

A second initiative this week has similar objectives to Hamilton — bringing more diverse investors into the ranks of limited partners — though it has a different approach and it’s targeting accredited investors only, which basically means individuals who are earning $200,000 a year and/or have a net worth of $1 million or more.

Launched by Acrew Capital — a Palo Alto- and San Francisco-based early-stage venture spearheaded by veteran VC Theresia Gouw — the firm revealed yesterday that it’s currently raising a traditional growth-stage fund with a twist. In addition to giving its current limited partners a crack at investing in the new fund, it is also opening the vehicle up to more women, people of color, and underrepresented individuals who may not have had a chance historically to invest in a later-stage private vehicle.

The key here is Acrew’s emphasis on growth-stage investing. While more women and people of color are breaking into the ranks of seed-stage investing, it takes a long time to make money with early-stage funding. Meanwhile, growth-stage funds are more exclusive because the companies they back are closer to an “exit” typically. That makes them very appealing to institutions — including mutual funds and hedge funds — which leaves a lot of room for the kinds of individuals who Acrew hopes to bring into the fold.

Like Backstage, diversity is in DNA of Acrew, which Gouw cofounded with Laura Kolodny, Vishal Lugani and Mark Kraynak, colleagues from their previous fund, Aspect Ventures.

It’s little surprise that the firm — which says 88% of its overall team is female and 63% comes from underrepresented backgrounds —  would be the first to publicly focus on pulling more women and people of color who are angel investors, board members, and C-level execs into the world of later-stage deals.

But it’s also strategic on the part of Acrew, which focuses largely on fintech and cybersecurity, and which has stakes in the highly valued challenger bank Chime, and the big data security analytics company Exabeam, among many others.

As Kolodny explains it, a growing number of companies is focused on enhancing diversity in the board room, and having an LP base filled individuals from underrepresented groups (with highly vetted networks), works out well for everyone involved.

In fact, it’s an approach that they hope won’t distinguish the firm for long, says Kolodny. “Our hope is that five years from now, a venture firm helping companies to add diverse independent board members and diverse executives won’t be a unique strategy.”

The hope,” she adds, “is [this effort] gets people to embrace a new standard around what is what is expected of venture firms.”

Pictured above: the members of Acrew Capital who are part of its first growth fund, which it has dubbed its Diversity Capital Fund.

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Cyber insurance startup At-Bay raises $34M Series C, adds M12 as a new investor

Cybersecurity insurance startup At-Bay has raised $34 million in its Series C round, the company announced Tuesday.

The round was led by Qumra Capital, a new investor. Microsoft’s venture fund M12, also a new investor, participated in the round alongside Acrew Capital, Khosla Ventures, Lightspeed Venture Partners, Munich Re Ventures, and Israeli entrepreneur Shlomo Kramer, who co-founded security firms Check Point and Imperva.

It’s a huge move for the company, which only closed its Series B in February.

The cybersecurity insurance market is expected to become a $23 billion industry by 2025, driven in part by an explosion in connected devices and new regulatory regimes under Europe’s GDPR and more recently California’s state-wide privacy law. But where traditional insurance companies have struggled to acquire the acumen needed to accommodate the growing demand for cybersecurity insurance, startups like At-Bay have filled the space.

At-Bay was founded in 2016 by Rotem Iram and Roman Itskovich, and is headquartered in Mountain View. In the past year, the company has tripled its headcount and now has offices in New York, Atlanta, Chicago, Portland, Los Angeles, and Dallas.

The company differentiates itself from the pack by monitoring the perimeter of its customers’ networks and alerting them to security risks or vulnerabilities. By proactively looking for potential security issues, At-Bay helps its customers to prevent network intrusions and data breaches before they happen, avoiding losses for the company while reducing insurance payouts — a win-win for both the insurance provider and its customers.

“This modern approach to risk management is not only driving strong demand for our insurance, but also enabling us to improve our products and minimize loss to our insureds,” said Iram.

It’s a bet that’s paying off: the company says its frequency of claims are less than half of the industry average. Lior Litwak, a partner at M12, said he sees “immense potential” in the company for melding cyber risk and analysis with cyber insurance.

Now with its Series C in the bank, the company plans to grow its team and launch new products, while improving its automated underwriting platform that allows companies to get instant cyber insurance quotes.

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La Haus is bringing US tech services to Latin America’s real estate market

The alchemy for a successful startup can be hard to parse. Sometimes, it’s who you know. Sometimes it’s where you go to school. And sometimes it’s what you do. In the case of La Haus, a startup that wants to bring U.S. tech-enabled real estate services to the Latin American real estate market, it’s all three.

The company was founded by Jerónimo Uribe and Rodrigo Sánchez Ríos, both graduates of Stanford University who previously founded and ran Jaguar Capital, a Colombian real estate development firm that had built over $350 million worth of retail and residential projects in the country.

Uribe, the son of the controversial Colombian President Daniel Uribe (who has been accused of financing paramilitary forces during Colombia’s long-running civil war and wire-tapping journalists and negotiators during the peace talks to end the conflict) and Sánchez Ríos, a former private equity professional at the multi-billion-dollar firm Lindsay Goldberg, were exposed to the perils and promise of real estate development with their former firm.

Now the two entrepreneurs are using their know-how, connections and a new technology stack to streamline the home-buying process.

It’s that ambition that caught the attention of Pete Flint, the founder of Trulia and now an investor at the venture capital firm NFX. Flint, an early investor in La Haus, saw the potential in La Haus to help the Latin American real estate market leapfrog the services available in the U.S. Spencer Rascoff, the co-founder of Zillow, also invested in the company.

“Latin America is very early on in its infancy of having really professional agents and really professional brokerages,” said Flint.

La Haus guides home buyers through every stage of the process, with its own agents and salespeople selling properties sourced from the company’s developer connections.

“The average home in the U.S. sells in six weeks or less,” said La Haus chief financial officer Sánchez Ríos in an interview. “That timing in Latin America is 14 months. That’s the dramatic difference. There is no infrastructure in Latin America as a whole.”

La Haus began by reaching out to the founders’ old colleagues in the real estate development industry and started listing new developments on its service. Now the company has a mix of existing and new properties for sale on its site and an expanded geographic footprint in both Colombia and Mexico.

“We have a portal… that acts as a lead-generating machine,” said Sánchez Ríos. “We aggregate listings, we vet them. We focus on new developers.”

The company has about 500 developers using the service to list properties in Colombia and another 200 in Mexico. So far, the company has facilitated more than 2,000 transactions through its platform in three years.

“Real estate now is turning fully digital and also in this market professionalizing,” said Flint. “The publicly traded online real estate companies are approaching all-time highs. People are just prizing the space that they spend their time in… the technologies from VR and digital walkthroughs to digital closes become not just a nice to have but a necessity. “

Capitalizing on the open field in the market, La Haus recently closed on $10 million in financing led by Kaszek Ventures, one of the leading funds in Latin America. That funding will be used to accelerate the company’s geographic expansion in response to increasing demand for digital solutions in response to the COVID-19 epidemic.

“Because of Covid-19, consumers’ willingness to conduct real estate transactions online has gone through the roof,” said Sánchez Ríos, in a statement. “Fortunately we were in the position to enable that, and we expect to see a permanent shift online in how people conduct all, or at least most, of the home-buying process. This funding gives us ample runway to build the end-to-end real estate experience for the post-Covid Latin America.”

Joining NFX, Rascoff, and Kaszek Ventures are a slew of investors, including Acrew Capital, IMO Ventures and Beresford Ventures. Entrepreneurs like Nubank founder David Velez; Brian Requarth, the founder of Vivareal (now GrupoZap); and Hadi Partovi, CEO and founder of Code.org, also participated in the financing.

“We backed La Haus because we saw many of the same ingredients that resulted in a fantastic outcome for many of our successful companies: A world-class team with complementary skills; a huge addressable market; and an almost religious zeal by the founders to solve a big problem with technology,” said Hernan Kazah, co-founder and managing partner of Kaszek Ventures. 

#acrew-capital, #colombia, #david-velez, #hadi-partovi, #kaszek-ventures, #la-haus, #latin-america, #mexico, #nfx, #nubank, #online-real-estate, #pete-flint, #real-estate, #recent-funding, #spencer-rascoff, #stanford-university, #startups, #tc, #trulia, #united-states, #vivareal, #zillow

Grain, a startup built expressly atop of Zoom for note-taking and video-clip making, raises $4 million

Whenever a platform breaks out, companies emerge to seize on its reach by building their services or products atop it. It happened with Facebook and Twitter and Slack. Now, it’s happening with Zoom, the video conferencing company that took the world by storm earlier this year as the coronavirus sent people around the globe indoors and into self-imposed isolation.

It’s not a brand-new trend. Plenty of companies are selling their wares through the Zoom App Marketplace, which launched in the fall of 2018 and now features 18 pages of providers. But Grain, founded in 2018 in San Francisco, is among the first to build its entire business around it, at least as a starting point.

What is that business? According to cofounder and CEO Mike Adams, the idea is to capture content in Zoom calls that can be saved and shared across platforms, including Twitter, DIscord, Notion, Slack and iMessages.

Say a student wants to take notes; he or she can record part of what a teacher is saying to save or share with classmates, without having to rewatch an entire lecture. The same is true in work setting. By using Grain, a colleague can flag the most important bits of information that was conveyed, then share just those bits via a clip that has its own unique URL.

Grain also transcribes content in clips and allows users to turn on closed captions if they choose.

The video clips can range from 30 seconds up to 10 minutes. They can also be strung together into reels to create summary highlights. (These have no time limit.) Not last, users can trim or adjust the length of the highlight after it has been recorded, as well as control who else can edit the video afterward to prevent nefarious actors from manipulating the snippets.

Adams says he and his brother, Jake — a former software engineer at Branch Metrics with whom he cofounded the company — are even using Grain to save snippets of precious moments on Zoom involving nieces and nephews, though the focus is very much on the companies and schools that will pay on a per-seat basis for the software.

Indeed, Adams says the idea for Grain was really born at the last company he cofounded: MissionU, a Zoom-based one-year alternative to a traditional college whose students weren’t asked for tuition but instead agreed to hand over up to 15 percent of their incomes for three years once they landed a job that paid $50,000 or more.

MissionU — which was founded in 2016 and raised $11.5 million from investors — sold to WeWork in 2018 in a stock deal before its students earned anything (they were released from their income-sharing agreements). Still, the experiment was long enough that Adams, who left MissionU at the time of the sale, says he saw firsthand the need for better tools to help students capture what’s important in their online content.

The question, of course, is whether Zoom also sees the opportunity. Relying so heavily on another company is always a risk. (See Facebook and Twitter and the long list of third party developers that have been burned by both companies.)

If Zoom, which is starting to make venture-like bets, were an investor in Grain, it might help inoculate it from potential competition down the road.

Still, that it isn’t didn’t dissuaded other investors who are betting that Zoom will prove friend and not foe. In fact, late last year, Grain raised $4 million over two seed rounds from a long list of notable investors, including Acrew Capital, Founder Collective, Peterson Partners, Slack Fund, Scott Belsky, Sriram Krishnan, Andreas Klinger, Scooter Braun and others.

Now its 11-person team is ready to take the wraps off what they’ve been building in beta with some of that capital.

Certainly, Grain — which plans to eventually integrate with numerous other companies — could do worse as springboards go than Zoom, one of the rare new breakout platform companies in memory and a tool that, early this week, Oracle cofounder Larry Ellison called an “essential service” that will change how work is done.

Zoom has long been powered by viral-end user adoption, enjoying growth internally and externally because of the nature of video conferencing across companies. Now, its pick-up as a consumer company is following a similar trajectory, with a high percentage of new users who are invited to Zoom calls eventually signing for the service so that they can themselves host a call.

If Grain gets lucky, some percentage of that percentage will also discover Grain.

#acrew-capital, #founder-collective, #grain, #missionu, #scooter-braun, #tc, #venture-capital, #video, #zoom