Iceland’s Crowberry Capital launches $90M Seed and Early-stage fund aimed at Nordics

Crowberry Capital, operating in Reykjavik and Copenhagen, has launched Crowberry II: a $90 million seed and early-stage fund aimed at startups in the Nordic region. A second close – bringing in an additional $40 million – is planned for July 2022.

The EIF (European Investment Fund) is the lead LP on the fund, after putting in €20 million from the EU’s “InnovFin Equity” program. This is InnovFin Equity’s first VC fund in Iceland.

Other investors include Icelandic Pension funds, several family offices, and angels including David Helgason, founder of Unity Technologies.

Crowberry II, which claims to be the largest VC fund operating out of Iceland, is headed up by three women founders, Hekla Arnardottir, Helga Valfells, and Jenny Ruth Hrafnsdottir.

The Crowberry I fund (a $40m fund launched in 2017), invested in startups in the areas of Gaming, SaaS, Healthtech, and Fintech.

Hekla Arnardottir said: “An incorrect assumption is that because we are women, we are only interested in supporting female founders. As our investment record shows, we support companies because they are game changers, irrespective of the gender of their senior team members. However, we also benefit, as an all-female team, from a circumspection which means that we can see potential in businesses and sectors which are typically overlooked by others in our space.”

She added: “Inclusivity is good for business, and through being open and approachable, your deal-flow multiplies in parallel to your talent pool, and businesses are built with a broader potential user base. It’s crazy that in 2020, female-led startups received just 2.3% of VC Funding, yet Crowberry considers this to be an opportunity: where the Nordics lead in gender equality on a societal level, we want to show that the region can also show the way in terms of inventive venture support.”

Crowberry’s previous fund (Crowberry I) featured 15 companies, of which 33% had female CEOs.

#articles, #copenhagen, #crowberry-capital, #economy, #entrepreneurship, #europe, #european-investment-fund, #european-union, #flo, #founder, #healthtech, #iceland, #private-equity, #startup-company, #tc, #unity-technologies

‘No code’ process automation platform, Leapwork, fires up with $62M Series B

Copenhagen-based process automation platform Leapwork has snagged Denmark’s largest ever Series B funding round, announcing a $62 million raise co-led by KKR and Salesforce Ventures, with existing investors DN Capital and Headline also participating.

Also today it’s disclosing that its post-money valuation now stands at $312M. 

The ‘no code’ 2015-founded startup last raised back in 2019, when it snagged a $10M Series A. The business was bootstrapped through earlier years — with the founders putting in their own money, garnered from prior successful exits. Their follow on bet on ‘no code’ already looks to have paid off in spades: Since launching the platform in 2017, Leapwork has seen its customer base more than double year on year and it now has a roster of 300+ customers around the world paying it to speed up their routine business processes.

Software testing is a particular focus for the tools, which Leapwork pitches at enterprises’ quality assurance and test teams.

It claims that by using its ‘no code’ tech — a label for the trend which refers to software that’s designed to be accessible to non-technical staff, greatly increasing its utility and applicability — businesses can achieve a 10x faster time to market, 97% productivity gains, and a 90% reduction in application errors. So the wider pitch is that it can support enterprises to achieve faster digital transformations with only their existing mix of in-house skills. 

Customers include the likes of PayPal, Mercedes-Benz and BNP Paribas.

Leapwork’s own business, meanwhile, has grown to a team of 170 people — working across nine offices throughout Europe, North America and Asia.

The Series B funding will be used to accelerate its global expansion, with the startup telling us it plans to expand the size of its local teams in key markets and open a series of tech hubs to support further product development.

Expanding in North America is a big priority now, with Leapwork noting it recently opened a New York office — where it plans to “significantly” increase headcount.

“In terms of our global presence, we want to ensure we are as close to our customers as possible, by continuing to build up local teams and expertise across each of our key markets, especially Europe and North America,” CEO and co-founder Christian Brink Frederiksen tells TechCrunch. “For example, we will build up more expertise and plan to really scale up the size of the team based out of our New York office over the next 12 months.

“Equally we have opened new offices across Europe, so we want to ensure our teams have the scope to work closely with customers. We also plan to invest heavily in the product and the technology that underpins it. For example, we’ll be doubling the size of our tech hubs in Copenhagen and India over the next 12 months.”

Product development set to be accelerated with the chunky Series B will focus on enhancements and functionality aimed at “breaking down the language barrier between humans and computers”, as Brink Frederiksen puts it

“Europe and the US are our two main markets. Half of our customers are US companies,” he also tells us, adding: “We are extremely popular among enterprise customers, especially those with complex compliance set-ups — 40% of our customers come from enterprises banking, insurance and financial services.

“Having said that, because our solution is no-code, it is heavily used across industries, including healthcare and life sciences, logistics and transportation, retail, manufacturing and more.”

Asked about competitors — given that the no code space has become a seething hotbed of activity over a number of years — Leapwork’s initial response is coy, trying the line that its business is a ‘truly special snowflake’. (“We truly believe we are the only solution that allows non-technical everyday business users to automate repetitive computer processes, without needing to understand how to code. Our no-code, visual language is what really sets us apart,” is how Brink Frederiksen actually phrases that.)

But on being pressed Leapwork names a raft of what it calls “legacy players” — such as Tricentis, Smartbear, Ranorex, MicroFocus, Eggplant Software, Mabl and Selenium — as (also) having “great products”, while continuing to claim they “speak to a different audience than we do”.

Certainly Leapwork’s Series B raise speaks loudly of how much value investors are seeing here.

Commenting in a statement, Patrick Devine, director at KKR, said: “Test automation has historically been very challenging at scale, and it has become a growing pain point as the pace of software development continues to accelerate. Leapwork’s primary mission since its founding has been to solve this problem, and it has impressively done so with its powerful no-code automation platform.”

“The team at Leapwork has done a fantastic job building a best-in-class corporate culture which has allowed them to continuously innovate, execute and push the boundaries of their automation platform,” added Stephen Shanley, managing director at KKR, in another statement.

In a third supporting statement, Nowi Kallen, principal at Salesforce Ventures, added: “Leapwork has tapped into a significant market opportunity with its no-code test automation software. With Christian and Claus [Rosenkrantz Topholt] at the helm and increased acceleration to digital adoption, we look forward to seeing Leapwork grow in the coming years and a successful partnership.”

The proof of the no code ‘pudding’ is in adoption and usage — getting non-developers to take to and stick with a new way of interfacing with and manipulating information. And so far, for Leapwork, the signs are looking good.

#bnp-paribas, #copenhagen, #denmark, #dn-capital, #enterprise, #europe, #fundings-exits, #leapwork, #no-code, #north-america, #process-automation, #salesforce-ventures, #software-testing, #startup-company, #tricentis

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.”

#adecco, #artificial-intelligence, #copenhagen, #covid-19, #employment, #enterprise, #europe, #european-union, #fiverr, #flexible-work, #freelance-marketplace, #freelancer, #fundings-exits, #kalo, #labor, #london, #new-york, #personnel, #remote-work, #saas, #telecommuting, #united-kingdom, #united-states, #upwork, #work, #worksome

Personal skin problems leads founder to launch skincare startup Nøie, raises $12M Series A

Inspired by his own problems with skin ailments, tech founder Daniel Jensen decided there had to be a better way. So, using an in-house tech platform, his Copenhagen-based startup Nøie developed its own database of skin profiles, to better care for sensitive skin.

Nøie has now raised $12m in a Series A funding round led by Talis Capital, with participation from Inventure, as well as existing investors including Thomas Ryge Mikkelsen, former CMO of Pandora, and Kristian Schrøder Hart-Hansen, former CEO of LEO Pharma’s Innovation Lab.

Nøie’s customized skincare products target sensitive skin conditions including acne, psoriasis and eczema. Using its own R&D, Nøie says it screens thousands of skincare products on the market, selects what it thinks are the best, and uses an algorithm to assign customers to their ‘skin family’. Customers then get recommendations for customized products to suit their skin.

Skin+Me is probably the best-known perceived competitor, but this is a prescription provider. Noie is non-prescription.

Jensen said: “We firmly believe that the biggest competition is the broader skincare industry and the consumer behavior that comes with it. I truly believe that in 2030 we’ll be surprised that we ever went into a store and picked up a one-size-fits-all product to combat our skincare issues, based on what has the nicest packaging or the best marketing. In a sense, any new company that emerges in this space are peers to us: we’re all working together to intrinsically change how people choose skincare products. We’re all demonstrating to people that they can now receive highly-personalized products based on their own skin’s specific needs.”

Of his own problems to find the right skincare provider, he said: “It’s just extremely difficult to find something that works. When you look at technology, online, and all our apps and everything, we got so smart in so many areas, but not when it comes to consumer skin products. I believe that in five or 10 years down the line, you’ll be laughing that we really used to just go in and pick up products just off the shelf, without knowing what we’re supposed to be using. I think everything we will be using in the bathroom will be customized.”

Beatrice Aliprandi, principal at Talis Capital, said: “For too long have both the dermatology sector and the skincare industry relied on the outdated ‘one-size-fits-all’ approach to addressing chronic skin conditions. By instead taking a data-driven and community feedback approach, Nøie is building the next generation of skincare by providing complete personalization for its customers at a massive scale, pioneering the next revolution in skincare.”

#ceo, #copenhagen, #europe, #talis-capital, #tc

Pivoting from offline into virtual events for enterprises nets Tame a $5.5M Seed round

In March 2020, Tame had a digital event suite for offline corporate events. But with the pandemic hitting, it did a hard pivot into providing a highly customizable virtual events platform, primarily used by companies for their sales events. The result is that it has now raised a seed round of $5.5m, a large round for its native Denmark, led by VF Venture (The Danish Growth Fund), along with byFounders and and three leading angels: Mikkel Lomholt (CTO & Co-founder, Planday); Sune Alstrup (Ex-CEO & Co-founder, The Eye Tribe); and Ulrik Lehrskov Schmidt.

The investment will be used to scale from 20 to 60 new employees across Copenhagen, London, and Krakow; expand to the UK, and grow revenues.

Founder Jasenko Hadzic, CEO and Co-founder said the pivot to virtual grew revenues “by 700% organically last year. No sales. No marketing. Organically. Therefore, Tame sees a huge opportunity and is going all-in on expanding aggressively to position itself as a market leader.”

Jacob Bratting Pedersen, Partner, VF Venture, said: “At VF Venture, we want to help develop and drive innovation. The corona crisis has brought digital momentum with it, and here Danish IT entrepreneurs have the opportunity to seize that agenda and bring Danish technology and expertise to the global market. Tame is a really good example of that. Tame has great potential to create a strong, global business for the benefit of growth and jobs in Denmark.”

Hadzic himself is already a success story – he eventually made it into the tech industry after arriving in Denmark as a child refugee from war-torn Bosnia during the Yugoslavian civil war.

But don’t mistake Tame for a Hopin. Hadzic told me: “We’re not interested in getting TechCrunch Disrupt as a customer or, or the big trade fairs. We just want to focus on those enterprise companies which we sell to a marketing department or an HR department.”

#copenhagen, #countries, #denmark, #europe, #krakow, #london, #market-leader, #planday, #tame, #tc, #the-eye-tribe, #united-kingdom

Expenses startup Pleo preps $100M Series C funding, launches new bill payments service

Late-stage Fintech startup Pleo, which offers expense management tools and ‘smart’ company Mastercards, says it plans to raise a Series C round of funding this summer. It’s also launching a B2B bill payments service this week.

Co-founder and CEO Jeppe Rindom told me via a call: “We have money until 2022, but we’ve seen incredible momentum in the past couple of quarters, and we are getting a lot of inbound interest so we will be fundraising a Series C round in the Summer and will be raising around $100 million.”

Pleo has raised $78.8 million to date. Its last funding round was $56M in May 2019. Its main investors include Speedinvest, Creandum, Kinnevik, Stripes and Founders.

The startup competes on some levels with Dext, Soldo, Spendesk and Expensify.

Pleo is today launching Bills, a platform to consolidate, track and pay business-to-business bill payments and a supplier’s terms of service. It will offer free-of-charge domestic transfers.

Bills are automatically processed using Pleo’s OCR technology and cross-referenced for duplication and validated for authenticity before being approved for payment

In addition, it will offer approval control for admins and free domestic transfers.

Rindom added: “Since 66% of admins told us that they spent half their time on processing bills as well as authenticating the validity of them, it became our mission to simplify this complicated process and provide an end-to-end overview of it.”

Pleo was founded in Copenhagen in 2015 by Rindom and Niccolo Perra, who were early team members Tradeshift.

#computing, #copenhagen, #europe, #expensify, #kinnevik, #pleo, #robotics, #robots, #tc, #tradeshift

Aldea Ventures creates ‘hybrid’ European €100M fund to invest both in Micro VCs, plus follow-on

The historical trajectory of venture capital has been to move to earlier and earlier finding rounds in order to capture the greatest potential multiple on exit. In the US, we’ve seen an explosion of Pre-series A funds, and similarly in Europe. But there’s been an opportunity to tie a lot of that activity together and also produce data that can feed into decision-making about growth rounds, further up the funding pipeline. Now, newly-formed Aldea Ventures intends to do just that.

Today’s it’s announcing a €60M first close of its Pan-European fund with the aim of reaching its target €100M first fund. The idea is ambitious: to invest in 700 startups across Europe, but with an unusual, “hybrid” strategy. First up, it will operate as a fund-of-funds, investing in up to 20 early-stage ‘micro VC funds’ across Europe. Second of all, it will act as a co-investment platform from Series A upwards.  So far it has invested in London-based Job and Talent and most recently, Copenhagen-based Podimo.

The model is more common in Silicon Valley than in Europe, so Aldea Ventures hopes to capitalize on this trend as one of the earlier players with this strategy. Aldea is also effectively stepping into the gap where corporate VCs in the US would normally fill, but in Europe is generally a gaping hole.

Aldea Ventures is led by managing partners Carlos Trenchs, formerly at Caixa Capital Risc; Alfonso Bassols, previously at Nauta Capital; Josep Duran, formerly with the European Investment Fund; and Gonzalo Rodés, Chairman. Aldea Ventures is partnering with Meridia Capital, a leading Spanish alternative investment fund manager.

Carlos Trenchs, managing partner of Aldea Ventures, said: “We believe Europe will continue to grow in influence and play an integral part in the next decade of technology… Our dual model as a fund of funds and co-investor into scaleups is the first of its kind in Europe. Seen only in Silicon Valley until today, we’re putting this model to work to fuel the next generation of growth across the European ecosystem.”

Aldea will look for five factors to selecting micro VCs: the firm’s thesis (specialist, thematic or generalist); location (pan-European or local); the experience of the partners; the size of the fund, and whether the fund is emerging or established. The fund will also take a long hard look at AI, Blockchain and DeepTech companies.

Trenchs explained to me during an interview that “we will have exposure to seed capital in different geographies with the 700 companies, and we reserve the other half of the fund to invest directly on the growth stage in the best performers in their portfolios.” This, he says, will establish a roadmap from direct investing all the way up to later-stage rounds.

Aldea has so far made investments into six micro VCs; Air Street Capital and Moonfire in London; Helloworld in Luxembourg; Inventures in Munich; Mustard Seed Maze in Lisbon; and Nina Capital in Barcelona. 

Nathan Benaich, Founding Partner of Air Street Capital, commented: “Investing in  European AI-first companies is a huge opportunity, with almost one-quarter of top global AI talent earning their university degrees here.. Our partnership with Aldea demonstrates a shared conviction that specialist managers with deep sector-specific knowledge will accelerate the success of tomorrow’s category-defining European companies that are AI-first by design.”

There’s clearly also a data play here because Aldea is likely to end up with a lot of data across companies, sectors and also across various stages.

And that was confirmed by Trenchs: “We want to make the VC world more transparent. If you have the 700 companies, in a few years from now, we’ll be able to collect a lot of data about what’s going on at seed stage in European valuations, geographies and sectors. Our intention is of course to use it as intelligence.” He also said the firm intended to share a lot of anonymized data with the wider European ecosystem.

“There is a funnel of few thousands of companies that get funded, but only a few make it through the funnel. As investors, we are looking for venture capitalists that can transform their seed portfolio into a portfolio that graduates from Series A to Series B,” he added.

#accel, #air-street-capital, #barcelona, #chairman, #copenhagen, #corporate-finance, #entrepreneurship, #europe, #european-investment-fund, #finance, #investment, #lisbon, #london, #luxembourg, #managing-partner, #money, #munich, #nauta-capital, #partner, #private-equity, #tc, #united-states, #venture-capital

Nordetect’s system to monitor soil and water for indoor agriculture raises seed funding

As indoor farming expands, a number of new companies are cropping up to provide better data and monitoring tools for the businesses aimed at improving efficiencies and quality of indoor crops. 

One of these companies, the Copenhagen-based Nordetect, is entering the U.S. market with around $1.5 million in funding from government investment firms and traditional accelerators like SOS V, with a tech that the company claims can give vertical farms a better way to monitor and manage nutrients and water quality.

Controlled agriculture, whether in greenhouses or warehouses, benefits from its ability to administer every aspect of the inputs to ensure that plants have the optimal growing conditions. It is, however, far more expensive than just seeding the ground.

Proponents say that these farms can overcome the additional expense by improving efficiency around water use, reducing the application of pesticides and fertilizer, and cultivating for better, tastier produce.

That’s where Keenan Pinto and Palak Sehgal’s Nordetect comes in. The two co-founders have known each other since they were undergraduates in India eight years ago. They went on to do their masters work together and after working in bioengineering plants — Sehgal focused on flowering systems in plants and Pinto focused on roots — they both went into more digital fields — but maintained their fascination with plants and kept in touch with each other.

Professional work in medical diagnostics for Sehgal and lab instrumentation for Pinto kept both busy, but they continued their discussions around plant science and soil health.

Roughly three years ago, the two hit on the idea for a combined toolkit for water quality monitoring and soil health. Sehgal left the India Institutes of Technology, where she had been working, and joined Pinto in Copenhagen to begin developing the tech that would form the core of Nordetect’s business proposition full time.

The company’s technology consists of an analyzer and a cartridge, a microfluidic chip that users can insert into their water tank to take a sample. From the data that the device collects, farmers can control the nutrients they put into the water to optimize for traits like color and flavor, Pinto said.

Image Credit: Shutterstock/Francesco83

The company was accepted into SOSV’s Hax accelerator in 2017 and the two first time founders moved from Denmark to Shenzhen to begin developing the business. In late 2018 the company moved back to Denmark and raised a small amount of additional capital from SOSV and Rockstart.

By 2020, watching the expansion of vertical farming, the company took what had initially been a soil monitoring tool and added water quality monitoring features to support indoor farming. That’s when the business started taking off, according to Pinto.

“One of the interesting things is when i consider the outdoor vs. the indoor markets. The outdoor felt a bit conservative… the indoor seems much more forthcoming… and that traction allowed us to pull together this funding round $1.5 million,” Pinto said. 

The new round came from Rockstart, Preseed Ventures, SOSV, the government of Denmark’s growth fund, and Luminate, a Rochester, NY-based accelerator that focuses on optical electronics technology.

Luminate’s participation is one reason why Nordetect is coming to the U.S., but it’s hardly the only reason. There’s also the capital that has come in to finance indoor ag companies. The two largest vertical farming companies in the U.S., Plenty and Bowery Farming have raised $541 million and $167 million between them.

“The vertical movement has put people into the position where they are what I call data farmers,” said Pinto. “Each batch of produce is being used to learn and the data is more important than the output. We used this market as a beachhead.”

#agriculture, #articles, #copenhagen, #denmark, #electronics, #india, #new-york, #shenzhen, #shutterstock, #soil, #sosv, #tc, #united-states, #urban-agriculture, #vertical-farming

6 Copenhagen investors share their outlook on investing in 2021

While Denmark and Copenhagen don’t often come up as a destination for European startups, it has a thriving local tech scene that’s home to some of the better startup conferences. After all, who doesn’t want to visit Copenhagen?

A highly educated population, great universities, excellent healthcare and great transport links to Europe make the city as good a place as any to start up a company.

Amongst our investors, we found the trends they were most interested in included sustainable supply chain logistics, esports and gaming, enterprise SaaS, climate tech, deep tech hardware, agritech and edtech. And many said they are interested in the future of work and the transition to different ways of working.

Companies they are excited by included: Afresh Technologies, Seaborg Technologies (nuclear reactors), Labster (virtual science labs), Normative.io (social and environmental impact measurement) and DEMI (connecting with chefs).

In general, investors said they are focused on their home ground but are also spreading their wings to the “New Nordics” (Nordic and Baltic) region. Some are also investing in large European and North American hub cities.

The “green shoots” of recovery they see are appearing in anything digital that comes with a community, as well as among startups that are able to leverage the pandemic to generate new business models that are faster than incumbents.


Use discount code EXTRAKNASE to save 25% off a 1-year Extra Crunch membership.
This offer is only available to readers in Europe and expires on April 30, 2021.


We surveyed:


Sara Rywe, associate, byFounders

What trends are you most excited about investing in, generally?
Software and tech (I’m personally extra excited about the “future of work,” fintech, and “future of food”).

What’s your latest, most exciting investment?
Digitail (a veterinary software provider solving the gap between the ever-growing expectations of millennial pet parents and the experience offered by veterinarians with their current tools).

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
I would like to see more founders with global ambitions in the “uniquely transformative” software category (the same way Airbnb transformed the hotel industry and Uber transformed the taxi industry). Many startups we see today are building a feature instead of a full solution and their vision is about making industries incrementally better. So, here’s a callout to all of you Nordic or Baltic visionary founders out there: Write me!

What are you looking for in your next investment, in general?
We always look for competent, visionary and passionate founders building products that people love. As an industry-agnostic VC, we keep our eyes open for a range of different opportunities.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Some of the current trends that I see include:
Fintech: salary advances, factoring, sustainability reporting and measurements.
Food tech: alternative protein, pet food, food waste.
Future of work: virtual offices, collaboration, productivity tools.
If you decide to enter any of the above-mentioned industries, I therefore encourage you to really be thoughtful in how you differentiate yourself and/or how your team is better suited to execute on the mission.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
<50%. We invest across the Nordics and Baltics and I’m covering Sweden, Norway and Denmark.

Which industries in your city and region seem well positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Denmark is very well positioned to succeed in sustainability and energy (many good talents coming from e.g., Vestas and DTU), consumer goods (there’s a large history in the country around building brands such as Lego, Carlsberg, etc.), and biotech (Novo Nordisk among others playing a big part). Moreover, software scaleups such as Peakon, Pleo, and Templafy are really leading the way for a new generation of tech startups to thrive in Denmark. When looking at Danish founder particularly, I’m very excited to see companies such as Qvin revolutionizing healthcare for women by using period blood as an opportunity for a noninvasive blood test.

How should investors in other cities think about the overall investment climate and opportunities in your city?
They should be very excited! Just look at what we’ve seen in 2021 so far:
Exits: Peakon $700 million exit and Humio $400 million exit.
Large rounds: Public.com raising $220 million, Vivino raising $115 million and Labster raising $60 million led by Andreessen Horowitz

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
Somewhat. We already see a lot of innovation outside of Copenhagen in cities such as Aarhus and Odense.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
One industry that has been hit hard by COVID-19 is of course travel and hospitality. The flipside of this is that we see a lot of innovation due to that. Examples from our own portfolio include:
AeroGuest — a platform that allows for a “touch-free” travel experience (skipping lines and reception desks, direct online room booking, etc.).
BobW — a new type of sustainable travel accommodation bringing the best of both worlds: “home meets hotel.”

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
COVID-19 has not impacted our investment strategy massively and we have the same focus as before (investing in software and tech). With that said, we are happy to see some industries getting an uplift in these difficult times, such as sustainability and impact.
The biggest worries of our portfolio company founders have been around volatility and uncertainty. Since the first lockdown our advice has been simple: You can’t control the outcome. We’ve therefore worked together to ensure that they have some proper scenario planning in place and that we think creatively of how to mitigate eventual negative effects on their business.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Tame — one of our portfolio companies — expanded their event platform to also include virtual events, which made it really take off in COVID times.
Corti — another portfolio company of ours — could in less than four weeks build a product for helping fight COVID-19 with artificial intelligence.
Both of these companies are good examples of how “adapting their products” due to the pandemic led to great results.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
The sudden rise of awareness around impact and ESG among VCs! Several great conversations have been held on how to improve our ways of working.

Who are key startup people you see creating success locally, whether investors, founders or even other types of startup ecosystems roles like lawyers, designers, growth experts, etc. We’re trying to highlight the movers and shakers who outsiders might not know.
Some of the extraordinary founders that I look up to from Denmark include:
Jakob Jønck (Simple Feast), Andreas Cleve and Lars Maaløe (Corti), Sara Naseri and Søren Therkelsen (Qvin), Niels Martin Brochner, Jarek Owczarek and Viktor Heide (Contractbook), Jacob Hansen, Esben Friis-Jensen, Jakob Storm and Christian Hansen (Cobalt) among others.
There’s also a range of great investors in Denmark including Helle Uth, Christel Piron, Alexander Viterbo-Horten and Anders Kjær amongst others at PreSeed Ventures and Daniel Nyvang Mariussen with his team at Bumble Ventures. Also, the Danish tech ecosystem would not be what it is without all the work that Vækstfonden does.

Mads Hørlyck, associate, Maersk Growth

What trends are you most excited about investing in, generally?
Supply chain/logistics including sustainable supply chains.

What’s your latest, most exciting investment?
Afresh Technologies.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
In general there are still plenty of opportunities across various parts of the supply chain. We have no particular specific preferences as such at the moment.

What are you looking for in your next investment, in general?
Digital solution to drive efficiencies across one or more subparts of the supply chain, both upstream and downstream focus.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Freight forwarding has been maturing in Europe and North America with several large startups in both regions. However, the market is still large but it requires a strong new model as it’s also low margins.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Less/little focus on Denmark. Main priority in large European/North American hubs.

Which industries in your city and region seem well positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Startups with the medical and supporting functions tech are doing well. We are excited about Onomondo in the Danish scene — also a portfolio company of ours.

How should investors in other cities think about the overall investment climate and opportunities in your city?
As an upcoming opportunity. Several tech hubs have been created and there is a general good environment including state-backed loans/pre-seed investments and fairly many angels to get going.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
We don’t expect any significant changes to the founder-environment in Denmark (too little country).

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
We see an increased focus on our investment area: Supply chain/logistics as people throughout the pandemic have been much more exposed to and dependent on flexible and reliable supply chains. All the way from supply resilience, supply chain visibility, fulfillment and to last-mile delivery. Consumers have the power to drive changes in supply chains.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Sales conversion rates decreasing/pipelines drying out. Advice is, like everyone else, to minimize cost and extend runway by getting as close to profitability as model allows. Based on this funding needs can be discussed.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Yes, we have seen some startups being able to leverage the pandemic over incumbents due to their more flexible and digital structure.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
We have yet to see a default wave both globally within our investment area but also in general in Denmark.

Henrik Møller Kristensen, associate, Bumble Ventures

What trends are you most excited about investing in, generally?
Some of the trends we’re excited about are (1) the growing market of digital media and entertainment, in particular esports and gaming, (2) enterprise SaaS, e.g., related to the future of work, (3) climate change solutions, e.g., deep tech hardware and software, and (4) e-commerce businesses, in particular digital native vertical brands and direct-to-consumer cases.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Products and services to satisfy the needs of the aging population. The number of elderly people will be growing significantly over the next decades, establishing a growing market for products and services to satisfy the needs from this demographic change and reduce the pressure on societies.

What are you looking for in your next investment, in general?
We highly value team and traction. We are looking for exceptional founders with strong competencies in engineering, product and commercial, preferably with years of experience from the industry they are entering with a new solution. We prefer some indication of product-market fit. We like methodical revenue growth driven by paying customers, rich cohort grids and controllable funnels that proves a robust core business. We don’t like products that are still 2-3 years away from monetization. This means that we will miss the next Facebook, but we are okay with that.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Traditional social media and apps that require millions of users before being able to turn on the business model. SaaS marketing tools also seem crowded.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
Next week we will announce our first investment outside Denmark. This is our first step toward being present not only in Denmark, but in the Nordics.

Which industries in your city and region seem well positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Well-positioned industries in Denmark are medtech, fintech, gaming and clean tech. We’re excited about GamerzClass, Pie Systems, LeadFamly, Omnigame, Organic Basics, Cap desk, Roccamore, Too Good To Go, Pleo, Tradeshift, SYBO, Unity and more. Exceptional founders are Victor Folmann from GamerzClass, Sunny Long from Pie Systems, Frederikke Antonie Schmidt from Roccamore and Christian Gabriel from Capdesk.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Historically, there has been a need for more capital and talent to keep successful growth-stage startups in Denmark and not have to move to foreign countries to attract talent and capital. However, the investment climate is getting better. Greater access to capital and talent go hand in hand, and what is really changing the investment climate for the better is founders of successful Danish startups turning back to Denmark and reinvesting in the startup community.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
I think we’ll see more attraction to remote work in the future. However, I believe it is important for startups to be close to other great like-minded startups, founders, advisors and investors, not only virtually but in real life. Establishing a great network and personal relationships are very important factors to succeed and remote is not suited very well for that in my opinion.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
The travel and hospitality industry look weaker and we’ll see a shift toward lower demand due to remote work and sustainability issues. On the other side, gaming, e-commerce and digital products and services are growing as you will have more people online behind the screens.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
We are still happy to invest despite COVID-19. Gaming has, for example, been positively affected by COVID-19, however, many startups are also struggling due to COVID-19. The best a startup can do is to manage the runway, have close dialogue with their investors, cut costs and try to pivot to the changes. Look for opportunities, not boundaries.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Not yet. Only a few of our portfolio companies are negatively affected by COVID-19.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
Investors are willing to make new investments and help out struggling portfolio companies. Founders are keeping their heads high and making the best out of the new circumstances. In some cases it actually stimulates new innovations.

Benjamin Ratz, partner, Nordic Makers

What trends are you most excited about investing in, generally?
Energy and the transition to a fossil fuel society, data as governance and the changing role of education.

What’s your latest, most exciting investment?
Seaborg — building modular, small and safe nuclear reactors.
Labster — virtual science labs that help students all over the world immerse in science and STEM.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Improving the public sector.

What are you looking for in your next investment, in general?
Views on how and if the world has permanently changed in behavior due to the pandemic.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
Micromobility, teledocs.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
100%.

What are companies you are excited about (your portfolio or not), which founders?
Willa. Corti.

How should investors in other cities think about the overall investment climate and opportunities in your city?
A lot of founders leaving success stories of the region.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come?
No but we expect the cities to produce more.

Mark Emil Hermansen, associate, Astanor

What trends are you most excited about investing in, generally?
Food and agrotech.

What’s your latest, most exciting investment?
DEMI.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
I’d love to see more food tech companies that “get food” — the human element of it that is. Too many startups focus only on the technology, less on the fact that it should be deeply human centered. This is so prevalent that I instinctively stay away from startups dubbing themselves as “food tech” — food is not tech and tech is not food and therein lies the challenge and the prize. Here’s a read that kind of sums it up.

What are you looking for in your next investment, in general?
Anything that reminds me of these first lines from “On The Road”: “They danced down the streets like dingledodies, and I shambled after as I’ve been doing all my life after people who interest me, because the only people for me are the mad ones, the ones who are mad to live, mad to talk, mad to be saved, desirous of everything at the same time, the ones that never yawn or say a commonplace thing, but burn, burn, burn …”.

Which areas are either oversaturated or would be too hard to compete in at this point for a new startup? What other types of products/services are you wary or concerned about?
DNVB.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
25% local (DK is still immature from a startup standout — yet the opportunity is that the VC footprint is small and relatively unsophisticated).

Which industries in your city and region seem well positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Companies: Online communities such as DEMI.
Founder: Erez Galonska of Infarm.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Tons of opportunity if you have access to the right deal flow/pedigree.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
Communities that transcend digital (like Tonsser and DEMI).

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
Worries: Uncertainty and recruitment strategy.
Advice: Survive and prepare.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Anything physical that has retail footprint. Anything digital that has a community footprint.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
That everyone’s pumped for what’s about to come (post-COVID) and the realization (or hope?) that nothing will be as before.

Who are key startup people you see creating success locally?
Kasper Ottesen, Highbridge (legal).
Kasper Hulthin (entrepreneur and investor).
Christian Tang-Jespersen (investor).

Eric Lagier, managing partner, byFounders

What trends are you most excited about investing in, generally?
Future of work, productivity improvement platforms.

What’s your latest, most exciting investment?
Normative.

Are there startups that you wish you would see in the industry but don’t? What are some overlooked opportunities right now?
Future of recruiting.

What are you looking for in your next investment, in general?
Passionate founders, solving big problems to build a better tomorrow.

How much are you focused on investing in your local ecosystem versus other startup hubs (or everywhere) in general? More than 50%? Less?
We are focused on the New Nordics (Nordic and Baltic) region having shown the biggest growth potential in Europe.

Which industries in your city and region seem well positioned to thrive, or not, long term? What are companies you are excited about (your portfolio or not), which founders?
Climate tech, health tech, fintech. Normative, Corti, Lucinity.

How should investors in other cities think about the overall investment climate and opportunities in your city?
Copenhagen is booming and there is now a strong foundation of experienced founders building really transformative companies.

Do you expect to see a surge in more founders coming from geographies outside major cities in the years to come, with startup hubs losing people due to the pandemic and lingering concerns, plus the attraction of remote work?
No — but I expect to see much more diverse teams with a priority on remote first.

Which industry segments that you invest in look weaker or more exposed to potential shifts in consumer and business behavior because of COVID-19? What are the opportunities startups may be able to tap into during these unprecedented times?
An acceleration of online, remote, e-commerce and general faster pace of transactions.

How has COVID-19 impacted your investment strategy? What are the biggest worries of the founders in your portfolio? What is your advice to startups in your portfolio right now?
COvid-19 is a giant accelerator of future trends. Those founders that have adapted best will be the winners of tomorrow.

Are you seeing “green shoots” regarding revenue growth, retention or other momentum in your portfolio as they adapt to the pandemic?
Absolutely.

What is a moment that has given you hope in the last month or so? This can be professional, personal or a mix of the two.
How founders persevere in these times of massive change.

Who are key startup people you see creating success locally?
Jakob Jønck, founder, SimpleFeast; Kristian Rönn, founder, Normative; Andreas Cleve and Lars Maaløe, founders, Corti.

#byfounders, #copenhagen, #denmark, #ec-investor-surveys, #europe, #nordics, #tc

Calling Danish VCs: Be featured in The Great TechCrunch Survey of European VC

TechCrunch is embarking on a major project to survey the venture capital investors of Europe, and their cities.

Our <a href=”https://forms.gle/k4Ji2Ch7zdrn7o2p6”>survey of VCs in Copenhagen and Denmark will capture how the country is faring, and what changes are being wrought amongst investors by the coronavirus pandemic.

We’d like to know how Denmark’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and, generally, how your thinking will evolve from here.

Our survey will only be about investors, and only the contributions of VC investors will be included. More than one partner is welcome to fill out the survey. (Please note, if you have filled the survey out already, there is no need to do it again).

The shortlist of questions will require only brief responses, but the more you can add, the better.

You can fill out the survey here.

Obviously, investors who contribute will be featured in the final surveys, with links to their companies and profiles.

What kinds of things do we want to know? Questions include: Which trends are you most excited by? What startup do you wish someone would create? Where are the overlooked opportunities? What are you looking for in your next investment, in general? How is your local ecosystem going? And how has COVID-19 impacted your investment strategy?

This survey is part of a broader series of surveys we’re doing to help founders find the right investors.

https://techcrunch.com/extra-crunch/investor-surveys/

For example, here is the recent survey of London.

You are not in Denmark, but would like to take part? That’s fine! Any European VC investor can STILL fill out the survey, as we probably will be putting a call out to your country next anyway! And we will use the data for future surveys on vertical topics.

The survey is covering almost every country on in the Union for the Mediterranean, so just look for your country and city on the survey and please participate (if you’re a venture capital investor).

Thank you for participating. If you have questions you can email mike@techcrunch.com

(Please note: Filling out the survey is not a guarantee of inclusion in the final published piece).

#articles, #business, #copenhagen, #corporate-finance, #denmark, #economy, #entrepreneurship, #europe, #london, #mediterranean, #private-equity, #startup-company, #survey, #tc, #venture-capital

Unity’s IPO numbers look pretty … unreal?

Unity, the company founded in a Copenhagen apartment in 2004, is poised for an initial public offering with numbers that look pretty strong.

Even as its main competitor, Epic Games, is in the throes of a very public fight with Apple over the fees the computer giant charges developers who sell applications (including games) on its platform (which has seen Epic’s games get the boot from the App Store), Unity has plowed ahead narrowing its losses and maintaining its hold on over half of the game development market.

For the first six months of 2020, the company lost $54.2 million on $351.3 million in revenue. The company narrowed its losses compared to 2019, when the company lost $163.2 million on $541.8 million in revenue, and 2018 when the company lost $131.6 million on $380.8 million in revenue. As of June 30, 2020 the company had total assets of $1.29 billion and $453.2 million in cash.

Increasing revenue and narrowing losses are things that investors like to see in companies that they’re potentially going to invest in, as they point to a path to profitability. Another sign of the company’s success is the number of customers that contribute more than $100,000 in annual revenue. In the first six month of the year, Unity had 716 such customers, pointing to the health of its platform.

The company will trade on the NYSE under the single-letter ticker ‘U’. The NYSE only has a few single letters left to offer, although Pandora gave up the letter P when it was bought by Liberty Media back in 2018.

Unlike Epic Games, Unity has long worked with the major platforms and gaming companies to get their engine in front of as many developers and gamers as possible. In fact, the company estimates that 53 percent of the top 1,000 mobile games on the Apple App Store and Google Play Store and over 50 percent of mobile, personal computer and console games were made with Unity.

Some of the top titles that the platform claims include Nintendo’s Mario Kart: Tour, Super Mario Run and Animal Crossing: Pocket Camp; Niantic’s Pokémon Go and Activision’s recent Call of Duty: Mobile are also Unity games.

The knock against Unity is that it’s not as powerful as Epic’s Unreal rendering engine, but that hasn’t stopped the company from making forays into industries beyond gaming – something that it will need to continue doing if it’s to be successful.

Unity already has a toehold in Hollywood, where it was used to recreate the jungle environment used in Disney’s Lion King remake (meanwhile, much of The Mandalorian was created using Epic’s Unreal engine).

Of course, Unity’s numbers also reveal that the size of its business is currently a bit smaller than its biggest rival. In 2019, Epic said it had earnings of $730 million on revenue of $4.2 billion, according to VentureBeat . And the North Carolina-based game developer is now worth $17.3 billion.

Still, the games market is likely big enough for both companies to thrive. “Historically there has been substantial industry convergence in the games developer tools business, but over the past decade the number of developers has increased so much, I believe the market can support two major players,” Piers Harding-Rolls, games analyst at Ampere Analysis, told the Financial Times.

Venture investors in the Unity platform have waited a long time for this moment, and they’re certainly confident in the company’s prospects.

The last investment round valued the company at $6 billion with the secondary sale of $525 million worth of the company’s shares.

#activision, #app-store, #apple, #computing, #copenhagen, #disney, #epic-games, #fundings-exits, #gaming, #google-play-store, #liberty-media, #mario-kart, #niantic, #nintendo, #north-carolina, #startups, #tc, #tencent, #the-financial-times, #unity, #unreal, #unreal-engine, #venturebeat, #video-gaming

Labster’s latest partnership, and what it tells us about the future of remote learning

Labster, a virtual science lab edtech company, today announced that it is partnering with California’s community college network to bring its software to 2.1 million students.

California Community Colleges claims to be the largest system of higher education in the country. The Labster partnership will provide 115 schools with 130 virtual laboratory simulations in biology, chemistry, physics and general sciences.

As COVID-19 has forced schools to shutter, edtech companies have largely responded by offering their software for free or through extended free trials. What’s new and notable about Labster’s partnership today is that it shows the first few signs of how that momentum can lead to a business deal.

Based in Copenhagen, Labster sells virtual STEM labs to institutions. The startup has raised $34.7 million in known venture capital to date, according to Crunchbase data. Labster customers include California State University, Harvard, Gwinnett Technical College, MIT, Trinity College and Stanford.

Lab equipment is expensive, and budget constraints mean that schools struggle to afford the latest technology. So Labster’s value proposition is that it is a cheaper alternative (plus, if students spill a testing vial in a virtual lab, there’s less clean up).

That pitch has slightly changed since COVID-19 forced schools across the world to shut down to limit the spread of the pandemic. Now, it’s pitching itself as the only currently viable alternative to science labs.

For many edtech companies, the surge of remote learning has been a large experiment. Often, edtech companies are giving away their product and technology for free to help as schools scramble to move operations completely digital.

For example, last week self-serve learning platforms Codecademy, Duolingo, Quizlet, Skillshare and Brainly launched a Learn From Home Club for students and teachers. Before that, Wize made its exam content and homework services available for free. And Zoom offered its video-conferencing software for free to K through 12 schools, which had mixed results.

Labster itself gave $5 million in free Labster credits to schools across the country. The list continues.  

Labster’s new deal shows edtech companies can secure new customers right now — without breaking the bank.

Labster CEO and co-founder Michael Bodekaer declined to give specifics on what the deal is worth. He did share that Labster works with schools one by one to understand how much they can, or want to, invest in teacher training and webinar support. He also confirmed that Labster does profit from the deal.

“We want to make sure that we set ourselves up for supporting our partners but still also make sure that Labster as a financial institution can pay our salaries,” Bodekaer said. “But again, heavy discounts that help us cover our costs.”

The long game for Labster, like many edtech companies, is that schools like the platform so much that these short-term stints have a better chance to lead to long-term relationships.

“We’ll be keeping these discounts as long as we possibly can sustain as a company,” he said. “It looks like initially the discount was until August and now we’re extending it until the end of the year. If that continues, we may extend it even further.”

Pricing aside, the real struggle toward implementation for Labster, and honestly any other edtech company focused on remote learning, is the digital divide. Some students do not have access to a computer for video conferencing or even internet connection for assignments.

The COVID-19 pandemic has highlighted how many households across America lack access to the technology needed for remote learning. In California, Google donated free Chromebooks and 100,000 mobile hotspots to students in need.

Bodekaer said that Labster is currently working on providing its software on mobile, and has worked with Google to make sure its product works on low-end computers like Chromebooks.

“We really want to be hardware agnostic and support any system or any platform that the students already have,” he said. “So that hardware does not become a barrier.”

While today’s partnership brings 2.1 million students access to Labster’s technology, it does not directly account for the percentage of that same group that might not have access to a computer in the first place. The true test, and perhaps success, of edtech will rely on a true hybrid of hardware and software, not one or the other.

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