Ockam, a two-year-old, Bay Area-based company that’s selling tools to developers to they can establish an “architecture for trust” within their connected device applications, has raised $3.2 million in seed funding, including from Core Ventures, Okta Ventures, SGH Capital, and Future Ventures.
This serverless platform for IoT development is being led by CEO Matthew Gregory and CTO Mrinal Wadhwa, two cofounders with noteworthy backgrounds.
Before launching Ockam in the fall of 2017, Gregory was an “intrapreneur” at Microsoft, where he says he helped lead Azure’s pivot into open source software and container services. He also spent a couple of years at Salesforce as a product manager. As interestingly, he spent a few years as as system engineer working for Stars & Stripes, a syndicate of the yacht-racing competition America’s Cup where he says he tells us he led an engineering effort to build the customer systems of sensors, analytics software and wireless communications tools needed to help the racing team make better decisions.
Madhwa was meanwhile the CTO of another privately held IoT company, Fybr, that promises real-time data analytics capable of decision making at the edge (versus in the cloud).
Some of what the startup is promising is that, using its technology, IoT systems developers will be able to build more scalable connected systems — as well, crucially, as more secure ones How? Partly through crytpographic keys and partly by assigning credentials to different entities, from devices to people to assets to services (among other things).
The company is one of a growing spate of companies hoping developers will increasingly turn to them instead of building out their own software infrastructure. For example, Particle, a seven-year-old, San Francisco-based platform for Internet of Things devices that has ambitions similar to those of Ockam, recently closed on $40 million in funding in a round that brought its total funding to $81 million).
Ockam has now raised $4.9 million in seed funding altogether, having raised a smaller amount of seed funding from Future Ventures back in May.
Storm Ventures, a now 19-year-old, Sand Hill Road venture firm in Menlo Park, Ca., has closed on $130.4 million, shows a new SEC filing. The outfit began its fundraising late last, according to an earlier filing. It had closed its previous fund with $180 million in 2015.
Storm distinguishes itself in numerous ways, including its exclusive focus on seed and Series A stage enterprise startups, including mobile, SaaS and cloud infrastructure companies.
The partners also have a penchant for helping far-flung startups grow the footprint around the blog. Tae Hea Nahm, for example, a founding managing director of the firm (and cofounder of four mobile companies before that, including Airespace and MobileIron), was born in Seoul, he has told us in the past that he spends a considerable amount of time in South Korea to attend startup board meetings but also to visit with Samsun and others of Storm’s LPs, which includes Korea Telecom.
Ryan Floyd, another of the firm’s cofounders, meanwhile recently posted about his “hunt” for European founders, partly because they are more focused on revenue from the outset than some of their U.S. peers (an increasingly attractive quality in all startups suddenly).
Some of Storm’s most notable bets at the moment include Workato, a Cupertino, Ca.-based work automation platform, which two weeks ago announced $70 million in Series C funding led by Redpoint.
Storm — which was involved in the company’s Series A and B rounds — also participated in the financing.
Another bet is Honeycomb, a three-year-old, San Francisco-based startup whose product promises developer teams that they can see production more clearly so they can resolve issues more quickly. The company raised $11.4 million in Series A funding led by Scale Venture Partners in September; Storm, which had participated in the company’s seed round, also participated among others.
Among Storm’s other, more recent first-time investments, the outfit joined the $6.75 million Series A round of Talview, a two-year-old, Palo Alto, Ca.-based talent assessment and hiring platform, that announced its newest funding in August. More on the company here.
Facebook added a correction notice to a post by a fringe news site that Singapore’s government said contained false information. It’s the first time the government has tried to enforce a new law against ‘fake news’ outside its borders.
The post by fringe news site States Times Review (STR), contained “scurrilous accusations” according to the Singapore government.
The States Times Review post contained accusations about the arrest of an alleged whistleblower and election-rigging.
Singapore authorities had previously ordered STR editor Alex Tan to correct the post but the Australian citizen said he would “not comply with any order from a foreign government”.
Mr Tan, who was born in Singapore, said he was an Australian citizen living in Australia and was not subject to the law. In a follow-up post, he said he would “defy and resist every unjust law”. He also posted the article on Twitter, LinkedIn and Google Docs and challenged the government to order corrections there as well.
On the note Facebook said it “is legally required to tell you that the Singapore government says this post has false information”. They then embedded the note at the bottom of the original post, which was not altered. Only social media users in Singapore could see the note.
In a statement Facebook said it had applied the label as required under the “fake news” law. The law, known as the Protection from Online Falsehoods and Manipulation bill, came into effect in October.
According to Facebook’s “transparency report” it often blocks content that governments allege violate local laws, with nearly 18,000 cases globally in the year to June.
Facebook — which has its Asia headquarters in Singapore — said it hoped assurances that the law would not impact on free expression “will lead to a measured and transparent approach to implementation”.
Anyone who breaks the law could be fined heavily and face a prison sentence of up to five years. The law also bans the use of fake accounts or bots to spread fake news, with penalties of up to S$1m (£563,000, $733,700) and a jail term of up to 10 years.
Critics say the law’s reach gives Singapore’s government could jeopardize freedom of expression both in the city-state and outside its borders.
Beyond our “Mandalorian” catch-up, Star Wars comes up again during our discussion of things from the streaming and entertainment world that we’re thankful for.
Despite some behind-the-scenes turmoil, the Disney era at Lucasfilm has brought us some delightful films, particularly “The Force Awakens” and “The Last Jedi.” It might seem kind of redundant to praise two of the most commercially successful films of all time, but it’s also an opportunity to address the online backlash and criticism directed primarily at Lucasfilm President Kathleen Kennedy.
Moving beyond the galaxy far, far away, we also discuss topics like Netflix shows (“Another Life”) that we’re excited to see return, plus the streaming series (“See”) and movies (“Marriage Story”) that we’re currently enjoying.
Welcome back to This Week in Apps, the Extra Crunch series that recaps the latest OS news, the applications they support and the money that flows through it all. What are developers talking about? What do app publishers and marketers need to know? How are politics impacting the App Store and app businesses? And which apps are everyone using?
This week, we’re discussing the impact of the CFIUS investigation into TikTok, the further fallout of Apple’s vaping app ban, updates to Apple Arcade and Google Play Pass subscription-based app stores, Apple’s breaking changes that rolled out without warning (thanks, Apple!) and a shady app that reached the top of the App Store thanks to a big Kardashians-led endorsement, among other things.
TikTok separates further from its Chinese parent
One of the world’s most downloaded and used apps, TikTok, is under a national security review in the U.S. because of its Chinese roots. TikTok parent company, ByteDance, is a China-based operation — something that has raised concerns because of its significant access to U.S. users’ personal data and potential censorship issues.
The company was already working to separate itself further from China before the Committee on Foreign Investment in the United States (CFIUS) began its investigation. For example, it separated the TikTok product, business development, marketing and legal teams from those of its Chinese app, Douyin, and hired consultants to audit how it’s storing U.S. users’ personal data. Following the investigation, it hired more U.S. engineers and set up a U.S.-based team to oversee data management, Reuters reported.
The question now is whether not these moves — along with a promise to not store U.S. user data in China — will be enough. The app collects data including profile information such as name, age, email and phone number, provided by users, as well as photos, videos, and location. Many of TikTok users are younger teens and college students.
Even if you’re “too old” to care about TikTok, CFIUS investigation’s conclusions here will have a larger impact on the global app industry, as they’ll set precedents as to how foreign powers can compete in U.S. app stores.
Oops: Apple releases breaking changes with no warning
Apple this week introduced new server-to-server notifications for subscriptions that allowed developers to receive real-time updates in a subscription’s status, so they could provide customized experiences for subscribers. Only one problem with the release: Apple broke most server notifications implementations as a result. Developers weren’t given any warning about the APIs that were “scheduled for deprecation,” either, which is not typically how web APIs are managed. To add icing to the cake, not only were the changes released without warning, they were also rolled out on a Friday — there goes the weekend. Thanks, Apple.
They mentioned it in their new docs. Apparently "scheduled for deprecation" meant today.
This is not how you manage web APIs. When Google deprecates an API they give months of warning, automated emails, and repeated communications.
Has Apple crossed the line between protecting its users from dangerous apps to just turning into an overbearing parent policing adults’ ability to make their own choices? Over the past couple of weeks, severalhave saidthe latter. Now concerning are arising about what this means for the overall industry and whether or not decisions like this should even be in Apple’s hands in the first place.
As you may recall, Apple earlier made a controversial decision to remove all 181 vaping-related apps from its App Store in wake of news from the CDC about the 47 vaping deaths and thousands of lung injuries. Some early studies point to Vitamin E acetate, an addictive used in THC oil, as the cause. But Apple isn’t worrying about the details of what’s dangerous and what’s not — it just wiped out anything vaping-related, including things like Bluetooth-connected apps that let users control aspects of their vaping devices, like the lights, heat, and updates to the firmware. There’s no backup plan here for those app makers, since web apps don’t offer the same level of functionality. Plus, the ban is also impacting devices used to distribute medication as well as apps designed to help people cut down and eventually quit smoking and vaping by tracking their nicotine usage.
For app entrepreneurs, Apple’s decision in one fell swoop also just destroyed half the vaping app market as their apps will now only run on Android.
The question now is whether or not any of this should be Apple’s decision? While you may personally applaud a vaping app ban — or simply not care because it doesn’t affect you — Apple has made other controversial choices that have a more serious impact. Like when it kicked out the app that aided Hong Kong protestors, for example.
Apple Arcade and Google Play Pass expand their collections
Apple’s subscription-based gaming store and Google’s rival subscription app store, Google Play Pass, have both added new apps since their debuts. Now, the two companies are making users aware of their ongoing efforts to beef up their respective collections. Apple this week shared a video that highlighted over a dozen new Apple Arcade releases that hit this month — the first time it’s released a compilation video featuring multiple titles since its launch.
What we don’t know yet, is how well the two services are working — or whether they will benefit developers in the long run. And because neither has a Top Charts section, it’s not even clear what apps are most popular or how many downloads they’re seeing.
Apple Arcade adds a “Top Games” chart… well, sorta… OK, not really
Apple took a step to address the above problem with a new section in Apple Arcade called “Top Arcade Games This Week.” We had argued earlier that the lack of visibility into the popularity of titles on Arcade was a disservice to users who wanted quickly and easily find the most popular titles.
But this new section, while fun, doesn’t solve the problem. Top Games, based on what? Downloads? Editorial curation? Both? Is there going to be an API for it?
It’s common knowledge that the App Store’s Top Charts are based on a combination of downloads and velocity. And that data is accessible to third parties like App Annie, Sensor Tower, Apptopia and others who use it to come up with download estimates.
But a “Top Games This Week” section is not the same thing as a real Top Charts section. And by limiting it to only a week’s time, it provides no real insight into whether or not the Arcade is able to produce a lasting hit the way the App Store can, or what those hit titles may be.
Apple has distanced itself from promoting the Top Charts as a means of app discovery for years now. With its big App Store makeover, it shifted its focus more to editorial, curation, and recommendations, rather than downloads. But for a smaller store like Arcade, Top Charts could have value as they would feature some of the best titles from an already exclusive collection — that’s something people would want to see.
Why was a shady photo editor the top app of October?
How can you be more productive with Visual Studio? Carl and Richard talk to Kendra Havens about all the built-in productivity gadgets in Studio – plus the ones you can build yourself! Kendra talks about putting those red and green squiggles, lightbulbs and screwdrivers to work communicating with developers about standards of development within your organization using Roslyn Analyzers, as well as taking advantage of the huge number of productivity features including regex completion, type recognition and many more!
As the Holiday Season approaches, new jobs for players in the tech ecosystem beckon. And this is no less true for investors. Two notable moves have recently happened that are worthy of note in the European scene.
The first is that GR Capital, a pan-European VC, is opening an office in London and has lured Jason Ball, who, earlier this year, left Qualcomm Ventures where had been European Managing Director for over a decade. Bad spent ten years as a mentor at Seedcamp and individually invested in more than ten companies. He was understood to be looking for new challenges, either building a new fund or joining another – so now we have our answer as to what he decided.
Founded in 2016 by Roma Ivaniuk in Ukraine, GR Capital specializes in late-stage VC investments. It has over $70M under management and has invested in Lime, Azimo, WeFox, McMakler, Glovo and Meero among others. The fund has traditionally been known for investing in Eastern Europe, but with a London office and the extremely well-networked Ball under its belt, we should be hearing more from them on the wider European scene in future.
Ivaniuk said in a statement that the move “means we can now drive our pan-European business activities from the continent’s most important VC hub, London.”
Ball said “We see a huge opportunity here to connect the dots between West and East. The London ecosystem is an exciting offering for investors in Eastern Europe, which in turn presents unique R&D and growth opportunities for portfolio companies.”
Meanwhile, Jon Bradford was most recently a partner of Motive Partners and a UK investment pioneer — having founded the Springboard Accelerator that merged with Techstars to become Techstars London, as well as helping to co-found F6S and Tech.eu. But he is also on the move, now joining Dynamo Ventures as its newest partner.
Bradford will be joining Dynamo on a full-time basis having previously been an advisor who helped launch the debut fund. He has invested in over 100 startups over the last decade including Apiary, Hassle, Tray.io, Flitto (that recently IPO’ed in Korea), Sendbird and Chainalysis. Dynamo is a US-EU based seed fund focused on B2B startups in supply chain and mobility. It has invested in 20 startups across the US and overseas, investing in including Sennder (Berlin), Skupos, Stord, Gatik and LEAF Logistics.
Hello and welcome back to Startups Weekly, a weekend newsletter that dives into the week’s noteworthy startups and venture capital news. Before I jump into today’s topic, let’s catch up a bit. Last week, I wrote about Airbnb’s issues. Before that, I noted Uber’s new “money” team.
Three African fintech startups; OPay, PalmPay and East African trucking logistics company Lori Systems, closed large fundraises this year. On their own, the deals aren’t particularly notable, but together, they expose a new trend within the African startup ecosystem.
This year, those three companies brought in a total of $240 million in venture capital funding from 15 different Chinese investors, who’ve become increasingly active in Africa’s tech scene. TechCrunch reporter Jake Bright, who covers African tech, writes that 2019 marks “the year Chinese investors went all in on the continent’s startup scene” — particularly its fintech projects. Why?
“The continent’s 1.2 billion people represent the largest share of the world’s unbanked and underbanked population — which makes fintech Africa’s most promising digital sector,” Bright notes. “In previous years, the country’s interactions with African startups were relatively light compared to deal-making on infrastructure and commodities. Chinese actors investing heavily in African mobile consumer platforms lends to looking at new data-privacy and security issues for the continent.”
Active Chinese investors in Africa include Hillhouse Capital, Meituan-Dianping, GaoRong, Source Code Capital, SoftBank Ventures Asia, BAI, Redpoint, IDG Capital, Sequoia China, Crystal Stream Capital, GSR Ventures, Chinese mobile-phone maker Transsion and NetEase .
Here’s more of TechCrunch’s recent coverage of Africa startup activity:
Last week, Facebook announced it was buying Beat Games, the game studio behind Beat Saber, a rhythm game that’s equal parts Fruit Ninja and Guitar Hero. Heard of the company? Maybe if you’re a gamer, but if you’re readying this newsletter because of your interest in VC, this company may not have come across your radar.
Why? It’s one of virtual reality’s biggest successes today, but it’s just an eight-person team with no funding.
“I’m really proud that we were able to build the company with this mindset of making decisions based on what is good for the game and not what is the most profitable thing,” Beat Games CEO told TechCrunch earlier this year. Read about Facebook’s acquisition here and an in-depth profile of the small team here.
If you like this newsletter, you will definitely enjoy Equity, which brings the content of this newsletter to life — in podcast form! Join myself and Equity co-host Alex Wilhelm every Friday for a quick breakdown of the week’s biggest news in venture capital and startups.
This week, we discussed Weekend Fund’s new vehicle, Cocoon’s new friend-tracking app and the unfortunate demise of a startup called Omni. You can listen here.
A new open-source project wants to provide an alternative to the Stack Exchange Network. While it is still a work in progress, Codidact is a “community-controlled, open-source Q&A platform.”
“This project was created to coordinate and keep track of current efforts by a group of (mostly unsatisfied) users of Stack Overflow and the Stack Exchange Network to develop an alternative to these platforms,” the project’s wiki stated.
The Codidact team began meeting in October. The goal is to devise a plan on how to make Codidact a reality and get enough people to make it reliable. The project will be funded through donations and work with individual communities.
In order to get involved, users can jump onto the forum, head to GitHub or use Discord to discuss ideas.
Currently on the project’s roadmap is whether or not to use a frontend framework, decide on site structure, agree on architectural and code style guidelines, coordinate attributions and roles, begin development, and decide on the community management approach.
A data breach at Mixcloud, a U.K.-based audio streaming platform, has left more than 20 million user accounts exposed after the data was put on sale on the dark web.
The data breach happened earlier in November, according to a dark web seller who supplied a portion of the data to TechCrunch, allowing us to examine and verify the authenticity of the data.
The data contained usernames, email addresses, and passwords that appear to be scrambled with the SHA-2 algorithm, making the passwords near impossible to unscramble. The data also contained account sign-up dates and the last-login date. It also included the country from which the user signed up, their internet (IP) address, and links to profile photos.
We verified a portion of the data by validating emails against the site’s password reset feature.
The exact amount of data stolen isn’t known. The seller said there were 20 million records, but listed 21 million records on the dark web. But the data we sampled suggested there may have been as many as 22 million records.
The data was listed for sale for $4,000, or about 0.5 bitcoin. We’re not linking to the dark web listing.
Mixcloud last year secured a $11.5 million cash injection from media investment firm WndrCo, led by Hollywood media proprietor Jeffrey Katzenberg.
It’s the latest in a string of high profile data breaches in recent months. The breached data came from the same dark web seller who also alerted TechCrunch to the StockX breach earlier this year. The apparel trading company initially claimed its customer-wide password reset was for “system updates,” but later came clean, admitting it was hacked, exposing more than four million records, after TechCrunch obtained a portion of the breached data.
An email to Mixcloud’s press mailbox bounced, and its last listed public relations agency told TechCrunch it no longer represents the company.
As a London-based company, Mixcloud falls under U.K. and European data protection rules. Companies can be fined up to 4% of their annual turnover for violations of European GDPR rules.