Why is everyone making OKR software?

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

Today we’re taking a moment to discuss the amount of money going into startups building OKR software. After covering WorkBoard’s recent round, I’ve noticed OKR software and services everywhere, even in Twitter ads that I somehow can’t avoid.

But surely there can’t be too many startups focused on OKR-related software and services? To answer that, let’s take a moment to detail out some of the startups in the space and their venture history. Leaning on my own research and some work by G2, this should be an entertaining way to spend our morning. Doubly so as several startups that we’ll discuss below (WorkBoard and Gtmhub, among others) are growing their ARR by several hundred percent each year, at the moment.

We’ll start with the world’s fastest definition of what OKRs are, and then dive in.


Source: Tech Crunch

Huawei’s answer to life after Google Maps? TomTom

Losing access to Google software and services understandably threw Huawei for a loop. The Chinese hardware giant has clearly been working on a contingency plan to deal with the loss of access to things like Android and the Play Store, but Google’s offering formed so much of the devices’ software core — as they do so many of its competitors.

Huawei just lined up a pretty big name in its attempts to rebuild a competitive software suite. Dutch mapping giant TomTom has agreed to provide access to its navigation, mapping and traffic information. The two companies finalized a deal this week, per Reuters, letting Huawei use that information to build its own proprietary apps.

TomTom confirmed the deal, but declined to offer additional information. The move comes as the mapping company has taken a step back from hardware offerings, in favor of monetizing its software services. Given Huawei’s pretty massive footprint in the global smartphone market, this presents a pretty big deal for TomTom, which had previously provided info for AppleMaps.

Huawei was left reeling from U.S. sanctions that cut off access to U.S.-produced software and components. The company has been working to build its own Android competitor behind the scenes, though what we’ve seen of HarmonyOS has thus far been fairly muted. Rumors have also swirled around Huawei developing its own Maps competitor, so it’s hard to say how much it views this new deal as a stopgap. 


Source: Tech Crunch

Court rules Mike Rothenberg must fork over more than $31 million to settle SEC allegations

Mike Rothenberg, the once high-flying VC bent on bringing the party to Silicon Valley, must now pay a whopping $31.4 million to settle a California federal court ruling in favor of Security and Exchange Commission allegations.

TechCrunch deemed Rothenberg a ‘virtual gatsby’ back in 2016, when we first broke the news about the downfall of his venture capital firm, Rothenberg Ventures. It seemed he took it as a compliment, changing his instagram handle to @virtualgatsby. Indeed, the name seemed appropriate for a man who seemingly lived a party boy lifestyle and spent lavishly to woo startup founders — including going on Napa Valley wine tours, holding an annual ‘founder field day’ where he rented out the whole San Francisco Giants’ baseball stadium and spending unsparingly to executive produce a video for Coldplay.

But the party life came to a halt when top leadership jumped ship and the SEC started looking into the books. The SEC formally charged Rothenberg in August of 2018 for misappropriating millions of dollars of his investors’ capital and funneling that money into his own bank account. Rothenberg settled with the SEC at the time and, as part of the settlement, was barred from the brokerage and investment advisory business for five years.

Rothenberg was later caught up in several lawsuits, including one from Transcend VR for fraud and breach of contract, which ended in a settlement. Another suit between Rothenberg and his former CFO, David Haase, ended with Rothenberg being ordered to pay $166,000 in damages.

But there was more to come from the SEC, following a forensic audit in partnership with the firm Deloitte showing the misuse or misappropriation of $18.8 million in investor funding. Under that examination, Deloitte showed Rothenberg had used the money either personally, to float his flashy lifestyle, or for other extravagances such as building a race car team and a virtual reality studio. Rothenberg has now been ordered to pay back the $18.8 million he took from investors, another $9 million in civil penalties, plus $3.7 million in interest.

Neither the SEC nor Rothenberg have responded for comment. It’s also important to note none of the charges so far have been criminal but were handled in civil court, as the SEC does not handle criminal cases. 

Through all of it, Rothenberg never admitted any guilt for his actions and it is important to note that, because of this in admission of any wrongdoing, he will be able to practice again after the bar is lifted in five years. He’s also made some decent early investments in startups like Robinhood and many investor sources TechCrunch spoke to over the years seemed quite loyal to him as an investor, despite the charges, employee mass exodus and fund implosion that followed. 

And it seems this saga is not over yet. Rothenberg told MarketWatch in a recent interview that he thought the ruling was, “historically excessive and vindictively punitive,” that he planned to appeal it and would be suing Silicon Valley Bank, which Rothenberg used to funnel several investments, over the matter. 

Rothenberg Ventures already filed suit against Silicon Valley Bank in August of 2018, the same day the SEC filed formal charges against Rothenberg himself. In that suit, Rothenberg alleged negligence, fraud and deceit on the part of the bank and sought a trial before jury. Silicon Valley Bank said it would defend against the case at the time.

We’ve reached out to Silicon Valley Bank and are waiting to hear back. The real question is, if Rothenberg were to come back to investing in Silicon Valley, would anyone still trust him? 


Source: Tech Crunch

Rocket Lab’s first launch of 2020 is a mission for the National Reconnaissance Office

Rocket Lab has announced its first mission for 2020 – a dedicated rocket launch on behalf of client the U.S. National Reconnaissance Office (NRO) with a launch window that opens on January 31. The Electron rocket Rocket Lab is using for this mission will take off from its Launch Complex 1 (LC-1) in New Zealand, and it’ll be the first mission Rocket Lab secured under a new contract the NRO is using that allows it to source launch providers quickly and at short notice.

This new Rapid Acquisition of a Small Rocket (RASR) contract model is pretty much ideal for Rocket Lab, since the whole company’s thesis is based around using small, affordable rockets that can be produced quickly thanks to carbon 3D printing used in the manufacturing process. Rocket Lab has already demonstrated the flexibility of its model by bumping a client to the top of the queue when another dropped out last year, and its ability to win an NRO mission under the RASR contract model is further proof that its aim of delivering responsive, timely rocket launch services for small payloads is hitting a market sweet spot.

The NRO is a U.S. government agency that’s in charge of developing, building, launching and operating intelligence satellites. It was originally established in 1961, but was only officially declassified and made public in 1992. Its mandate includes supporting the work of both the U.S. Intelligence Community, as well as the Department of Defense.

Increasingly, the defense industry is interested in small satellite operations, mainly because using smaller, more efficient and economical satellites means that you can respond to new needs in the field more quickly, and that you can also build resiliency into your observation and communication network through sheer volume. Traditional expensive, huge intelligence and military satellites carry giant price tags, have multi-year development timelines and offer sizeable targets to potential enemies without much in the way of redundancy. Small satellites, especially acting as part of larger constellations, mitigate pretty much all of these potential weaknesses.

One of the reasons that Rocket Lab opened its new Launch Complex 2 (LC-2) launch pad in Wallops Island, Virgina, is to better serve customers from the U.S. defense industry. Its first mission from that site, currently set to happen sometime this spring, is for the U.S. Air Force.


Source: Tech Crunch

Israel’s cybersecurity startup scene spawned new entrants in 2019

As the global cybersecurity market becomes increasingly crowded, the Start Up Nation remains a bulwark of innovation and opportunity generation for investors and global cyber companies alike. It achieved this chiefly in 2019 by adapting to the industry’s competitive developments and pushing forward its most accomplished entrepreneurs in larger numbers to meet them.

New data illustrates how Israeli entrepreneurs have seized on the country’s reputation for building radically cutting-edge technologies as the number of new Israeli cybersecurity startups addressing nascent sectors eclipses its more traditional counterparts. Moreover, related findings highlight how cybersecurity companies looking to expand beyond their traditional offerings are entering Israel’s cybersecurity ecosystem in larger numbers through highly strategic acquisitions.

Broadly, new findings also reveal the Israeli cybersecurity market’s overall coming of age, seasoned entrepreneurial dominance and greater appetite for longer-term visions and strategies — the latter of which received record-breaking investor backing in 2019.

Breaking records


Source: Tech Crunch

Diligent’s Vivian Chu and Labrador’s Mike Dooley will discuss assistive robotics at TC Sessions: Robotics+AI

Too often the world of robotics seems to be a solution in search of a problem. Assistive robotics, on the other hand, are among one of the primary real-world tasks existing technology can seemingly address almost immediately.

The concept for the technology has been around for some time now and has caught on particularly well in places like Japan, where human help simply can’t keep up with the needs of an aging population. At TC Sessions: Robotics+AI at U.C. Berkeley on March 3, we’ll be speaking with a pair of founders developing offerings for precisely these needs.

Vivian Chu is the cofounder and CEO of Diligent Robotics. The company has developed the Moxi robot to help assist with chores and other non-patient tasks, in order to allow caregivers more time to interact with patients. Prior to Diligent, Chu worked at both Google[X] and Honda Research Institute.

Mike Dooley is the cofounder and CEO of Labrador Systems. The Los Angeles-based company recently closed a $2 million seed round to develop assistive robots for the home. Dooley has worked at a number of robotics companies including, most recently a stint as the VP of Product and Business Development at iRobot.

Early Bird tickets are now on sale for $275, but you better hurry, prices go up in less than a month by $100. Students can book a super discounted ticket for just $50 right here.

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Source: Tech Crunch

Soft Robotics raises $23 million from investors including industrial robot giant FANUC

Robotics startup company Soft Robotics has closed its Series B round of funding, raising $23 million led by Calibrate Ventures and Material Impact, and including participation from exiting investors including Honeywell, Yahama, Hyperplane and more. This round also brings in FANUC, the world’s largest maker of industrial robots and a recently announced strategic partner for Soft Robotics .

The company said in a press release announcing this latest round of funding that the round was oversubscribed, which suggests it isn’t looking to glut itself on capital investors, given that this $23 million follows a similarly sized $20 million round that closed in 2018 which it also referred to as “oversubscribed.” Prior to that, Soft Robotics had raised $5 million in a Series A round closed in 2015. It has plenty of large, global clients already, so it’s probably not hurting for revenue.

Soft Robotics is focused on developing robotic grippers that, as you might’ve guessed from the name, make use of soft material endpoints that can more easily grip a range of different objects without the kind of extremely specific and tolerance-allergic complex programming that’s required for most traditional industrial robotic claws.

With its 2018 funding raise, Soft Robotics said that it was expanding further into food and beverage, as well as doubling down on its presence in the retail and logistics industries. This round and its new partnership with FANUC (which involves a new integrated system that pairs its mGrip robotic gripper with a new Mini-P controller, all with simple integration to FANUC’s existing lineup of industrial robots) will give it strategic and functional access to what is the most influenentioal industrial robotics company in the world.

This round will specifically help Soft Robotics spend on growth, looking to increase its variability even further and work on expanding its food packaging and consumer goods applications, as well as diving into e-commerce and logistics – specifically to help automate and improve the returns process, a costly and ever-growing challenge as more retail moves online.


Source: Tech Crunch

SpaceX could catch future Crew Dragons with astronauts onboard using ships at sea

SpaceX demonstrated a safety system that will protect astronauts in the case of any unfortunate unforeseen accidents in future Crew Dragon flights, which included the spacecraft splashing down in the Atlantic Ocean, but during a post-mission press conference SpaceX CEO Elon Musk suggested future return trips for the human-rated spacecraft could look very different.

Musk suggested that SpaceX could eventually seek to recover the Crew Dragon capsule using ships at sea that ‘catch’ the spacecraft as it lands, rather than allowing it to splash down and recovering it from the water. SpaceX is in the process of testing a similar system to recover the fairings (large protective covers) it uses to enclose cargo during its existing Falcon 9 and Falcon Heavy launches.

“This requires ongoing discussions with with with NASA, but I think it’d be quite quite cool to use the boats that we are using to catch the fairing,” Musk said.
“Once that is really well-established, [we could attempt] to catch the catch Dragon as it’s coming in from orbit, and then that would alleviate some of the constraints around a water landing.”

This could be a major advantage for SpaceX in terms of cost and reusability of its Crew Dragon spacecraft, which it eventually hopes to be able to fly both for NASA and for other commercial clients. Still, Musk emphasized that this is a goal for considerably further out beyond Crew Dragon’s actual start of service life, since it both requires NASA’s buy-in and certification, and also requires that SpaceX actually demonstrate their ability to reliably catch the cargo fairing first. So far, it’s caught one half of one fairing, but has also had a number of failed attempts.

“We obviously need to recover [the fairing] very reliably before we we consider trying to catch the catch the Dragon,” he added. “But I think that would be also an improvement, as opposed to lightning in the water.”


Source: Tech Crunch

First crewed SpaceX Dragon spacecraft launch could happen in Q2 this year

SpaceX and NASA hosted a press conference following their successful test of the Crew Dragon’s in-flight abort system on Sunday to discuss the mission and next steps. The first question asked by media in attendance was about what this means for the timeline for a mission with actual crew on board, and SpaceX CEO Elon Musk provided an answer sketching out a rough schedule of events.

“The hardware necessary for the first crewed launch, we believe will be ready by the end of February,” he said. “However, there’s still a lot of work once the hardware is ready to just cross-check everything, triple-check, quadruple-check, go over everything everything again until every every stone has been turned over three or four times. And then there’s also the schedule for getting to the Space Station, because the Space Station has a lot of lot of things going to it, so what’s the right timing because, and the collective wisdom at this point is that we think that hardware will be ready in q1, most likely in February, but no later than March, and that we think it appears probable that the first crewed launch would occur in the second quarter.”

NASA Administrator Jim Bridenstine followed up with additional perspective from the agency’s side, noting that there could be some shifting mission parameters for that first trip that change the timing of when it actually goes up.

“I think, I think that’s a very fair assessment,” Bridenstine said. “I would also say we have to make some decisions on our end from a NASA perspective. Do we want that first crew to be a short duration, or do we want it to be a longer duration? If it’s going to be a longer duration, then we have to have some additional training for our astronauts to actually be prepared to do things on the International Space Station that we weren’t planning to have that initial test crew necessarily do.”

Bridenstine added that those decisions will be made in the “coming weeks,” and depending on whether they opt to make this first mission a quick trip, or a longer duration mission with more objectives, it could change their timing due to scheduling and training requirements for the astronauts actually going up aboard Crew Dragon.


Source: Tech Crunch

Shadows’ Dylan Flinn and Kombo’s Kevin Gould on the business of ‘virtual influencers’

In films, TV shows and books — and even in video games where characters are designed to respond to user behavior — we don’t perceive characters as beings with whom we can establish two-way relationships. But that’s poised to change, at least in some use cases.

Interactive characters — fictional, virtual personas capable of personalized interactions — are defining new territory in entertainment. In my guide to the concept of “virtual beings,” I outlined two categories of these characters:

  • virtual influencers: fictional characters with real-world social media accounts who build and engage with a mass following of fans.
  • virtual companions: AIs oriented toward one-to-one relationships, much like the tech depicted in the films “Her” and “Ex Machina.” They are personalized enough to engage us in entertaining discussions and respond to our behavior (in the physical world or within games) like a human would.

Part 2 of 3: the business of virtual influencers

Today’s discussion focuses on virtual influencers: fictional characters that build and engage followings of real people over social media. To explore the topic, I spoke with two experienced entrepreneurs:

  • Dylan Flinn is CEO of Shadows, an LA-based animation studio that’s building a roster of interactive characters for social media audiences. Dylan started his career in VC, funding companies such as Robinhood, Patreon and Bustle, and also spent two years as an agent at CAA.
  • Kevin Gould is CEO of Kombo Ventures, a talent management and brand incubation firm that has guided the careers of top influencers like Jake Paul and SSSniperWolf. He is the co-founder of three direct-to-consumer brands — Insert Name Here, Wakeheart and Glamnetic — and is an angel investor in companies like Clutter, Beautycon and DraftKings.


    Source: Tech Crunch