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Job Today gets a $16M top up as it preps for Brexit bump

Accel-backed mobile-first jobs app Job Today has pulled in another $16M — an expansion to its November 2016 $20M Series B round. It raised a $10M Series A in January of the same year.

The 2015 founded startup offers a mobile app for job seekers that does away with the need for a CV.

Instead job seekers create a profile in the app and can apply to relevant jobs. Employers can then triage potential applicants via the app and chat to any they like the look of via its messaging platform.

The approach has been especially popular with fast turnover jobs in the service industry, such as hospitality and retail.

Job Today says it has more than five million job seekers registered on its platform, and claims to have delivered more than 100 million candidate applications to the 400,000+ predominantly small businesses posting jobs via the app to date (with 1M+ jobs posted). It currently operates in two markets: Spain and the UK.

The additional funding will be put towards expanding its presence in the UK market — where it says it’s seen “significant growth” in both job postings and candidate applications.

It says the overall volume of applications has increased by 46% year-on-year in the market, with the number of applications per candidate growing by 32% in the same period. The likes of Costa Coffee, Pret A Manger and Eat are named as among its “regular hirers”.

It’s also envisaging a Brexit bump for the local casual job market, as the UK’s decision to leave the European Union looks set to impact the supply of labor for employers…

Commenting in a statement, CEO Eugene Mizin, said: “The casual job market is often the first to experience the effects from macro-economic forces and Brexit will mean that many non-skilled and non-British workers will leave the UK. This will create a demand to fill casual jobs and create new opportunities for the less-skilled school, college and university leavers entering the workforce for the first time in 2019.”

The Series B expansion funds are coming from New York based investor 14W.

Job Today says it got additional growth uplift after integrating with Google Jobs — aka Google search’s built in AI-powered jobs engine. This launched in the UK in July 2018, and Job Today said it saw 101% growth in users in the first month of integration.

Europe’s Uber rival Taxify is launching itself into the e-scooter game

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The likes of Uber and Lyft are increasingly cosying up to scooters, and now one of the biggest ridesharing operators in Europe is joining the fray.

Estonian startup Taxify is rolling out an electric scooter sharing service in Paris this week, with plans to launch in other cities across Europe and Australia in the coming months. 

Much like Uber and Lyft’s vision, the scooters can be booked in the same Taxify app used to hail car rides. 

“One in five Taxify rides are less than 3 kilometres (1.8 miles), which is the perfect distance to cover with an electric scooter,” Markus Villig, CEO and co-founder of Taxify said in a statement.  Read more…

More about Tech, Europe, Scooters, Ridesharing, and Taxify

Shine grabs $9.3 million to build a bank for freelancers

French startup Shine is raising a $9.3 million (€8 million) Series A round. The company is building an alternative to traditional bank accounts for freelancers working in France.

XAnge is leading today’s round with existing investor Daphni also participating, as well as business angels Gilles Samoun and Ed Zimmerman. The company previously raised $3.3 million (€2.8 million) from Daphni, Kima Ventures and various business angels.

While it’s pretty easy to get started as a freelancer in many countries, France is not one of them. You need to register a “micro-company”, report your earnings for corporate taxes, report sales tax collection in some cases and more.

Arguably, it has gotten much easier recently with a ton of resources to get started. But Shine wants to go one step further and package everything you need in an app.

Shine starts by helping you register your company. After downloading the app, the company will guide you through the process — you need to take a photo of your ID and fill out a form. It feels like signing up to a social network. Compared to the official process, Shine’s process is less intimidating and easier to understand.

You can send and receive money from your Shine account just like in any banking app. Shine gives you your own banking information (IBAN) to receive payments and pay using direct debit. A few days later, you receive a debit card. You can temporarily lock the card or disable some features in the app, such as ATM withdrawals and online payments.

Shine doesn’t handle IBAN and cards directly. The company partners with Treezor for those banking features.

If you’re a rider on Deliveroo and UberEats, or if you work with a freelancer marketplace, such as Malt, Side, Upwork and Brigad, all you need to do is enter your Shine IBAN on those platforms. If you work with clients directly, Shine has an integrated invoicing system. It generates a web page and a PDF that you can send to your clients. When a client opens the page, you get a notification. They can pay with a card.

Finally, Shine reminds you when you have to pay your taxes and has a customer support team that can help you figure out what you need to do. They’re slowly building a comprehensive knowledge base on being a freelancer in France.

Shine is free for everything I just described except if you choose to accept card payments on your invoices. But even for that feature, it remains quite cheap.

The company plans to launch a premium plan in the coming months with advanced accounting features. So far, 25,000 freelancers are using Shine in France. And 10 percent of new freelancers (“micro-entrepreneurs”) register their company through Shine.

While challenger banks, such as N26 and Revolut are widely successful, it’s great to see some companies focus on niche markets with the same approach. Shine is a breath of fresh air for freelancers in France. The company is making the process so much easier for newcomers.

Walmart co-leads $500M investment in Chinese online grocery service Dada-JD Daojia

Walmart sold its China-based e-commerce business in 2016, but the U.S. retail giant is very much involved in the Chinese internet market through a partnership with e-commerce firm JD.com. Alibaba’s most serious rival, JD scooped up Walmart’s Yihaodian business and offered its own online retail platform to help enable Walmart to products in China, both on and offline.

Now that relationship is developing further after Walmart and JD jointly invested $500 million into Dada-JD Daojia, an online-to-offline grocery business which is part owned by JD, according to a CNBC report.

Unlike most grocery delivery services, though, Dada-JD Daojia stands apart because it includes a crowdsourced element.

The business was formed following a merger between JD Daojia, JD’s platform for order from supermarkets online which has 20 million monthly users, and Daojia, which uses crowdsourcing to fulfill deliveries and counts 10 million daily deliveries. JD Daojia claims over 100,000 retail stores and its signature is one-hour deliveries for a range of products, which include fruit, vegetables and groceries.

Walmart is already part of the service — it has 200 stores across 30 Chinese cities on the Dada-JD Daojia service; as well as five online stores on the core JD.com platform — and now it is getting into the business itself via this investment.

JD.com said the deal is part of its ‘Borderless Retail’ strategy, which includes staff-less stores and retail outlets that mix e-commerce with physical sales.

“The future of global retail is boundaryless. There will be no separation between online and offline shopping, only greater convenience, quality and selection to consumers. JD was an early investor in Dada-JD Daojia, and continues its support, because we believe that its innovations will be an important part of realizing that vision,” said Jianwen Liao, Chief Strategy Officer of JD.com, in a statement.

Alibaba, of course, has a similar hybrid strategy with its Hema stores and food delivery service Ele.me, all of which links up with its Taobao and T-Mall online shopping platforms. The company recently scored a major coup when it landed a tie-in with Starbucks, which is looking to rediscover growth in China through an alliance that will see Ele.me deliver coffee to customers and make use of Hema stores.

Away from the new retail experience, JD.com has been doing more to expand its overseas presence lately.

The company landed a $550 million investment from Google this summer which will see the duo team up to offer JD.com products for sale on the Google Shopping platform across the world. Separately, JD.com has voiced intention to expand into Europe, starting in Germany, and that’s where the Google deal and a relationship with Walmart could be hugely helpful.

Another strategic JD investor is Tencent, and that relationship has helped the e-commerce firm sell direct to customers through Tencent’s WeChat app, which is China’s most popular messaging service. Tencent and JD have co-invested in a range of companies in China, such as discount marketplace Vipshop and retail group Better Life. Their collaboration has also extended to Southeast Asia, where they are both investors in ride-hailing unicorn Go-Jek, which is aiming to rival Grab, the startup that bought out Uber’s local business.

ezCater acquires GoCater to expand beyond the US

Catering marketplace company ezCater is already putting its big $100 million funding round to good use. The company is acquiring GoCater, a European marketplace that operates in the same field. This is ezCater’s first international expansion move.

If you’re in charge of ordering catered lunch at your office, you probably have heard about ezCater . The company lets you order breakfast, lunch or dinner for 10, 30 or maybe 100 people at once. This service could be particularly useful to impress a client, throw an office party, get lunch together during an off-site and more.

But ezCater doesn’t cook anything itself. The company is a marketplace and connects you with catering companies and big restaurants around you. In other words, ezCater lets you browse the menu of dozens of restaurants around you from the same website and place an order without picking up the phone.

Of course, ezCater didn’t invent catering. But catering is a fragmented industry with a lot of friction. It’s hard to know how much you’re going to pay in advance, it takes a lot of effort to find a new restaurant outside of your usual list. And restaurants could use a new way to promote their offering. Those are the perfect ingredients to create an online marketplace.

You may already know all the options around your office, but ordering through ezCater provides additional benefits. For instance, all your receipts are centralized in the same interface, which lets you get a clear overview of your spendings on catering.

You can also let other people order food for their clients and events. ezCater lets you set maximum amounts, tipping policies and more.

GoCater offers more or less the same thing, but in France and Germany. The company started as a spinoff from French startup La Belle Assiette. GoCater lets you create a whitelist of catering options. You can also set up an approval system so that the intern doesn’t order ice creams for everyone. Finally, GoCater clients only get billed once per month, even if companies order multiple times.

You pay the same price if you order through GoCater or the catering company directly. Catering companies end up paying a cut on GoCater orders. But the startup takes care of billing, accounting and accounts receivable. This way, you can focus on your core business instead of chasing money from past clients.

ezCater is an order of magnitude bigger than GoCater. ezCater works with 60,000 restaurants, while GoCater only has a few hundred restaurants on its platform. It’s worth noting that ezCater has been around for much longer.

But GoCater has one big advantage over ezCater — they have a team on the ground in Europe, ready to attract new restaurants and corporate clients. It’s clear that ezCater was looking for a way to get started in Europe, and GoCater seems like the right fit.

For now, the company will keep both brands after the acquisition. The teams will slowly merge the platforms into a single product.

“The entire GoCater team is staying, and we’re now going to rapidly expand the European team of the company — both the sales team for Europe and the tech and product team for the group,” GoCater founder and CEO Stephen Leguillon told me.

PayU acquires Zooz to take on international payment services

A week after PayPal led a $50 million round in the cross-border payment specialist PPRO, one of its big competitors in the developing world has announced an acquisition of its own in the same space. PayU — the payments division of Naspers that is sometimes described as the PayPal of the developing world — has acquired Zooz, a startup based out of Israel that provides an API to merchants that lets them accept a variety of payments depending on the market.

The two had already been working together — specifically to provide PayU payment options to merchants in markets where PayU is active — and the plan will be to integrate the services further to enable PayU to step deeper into the cross-border payment services space, potentially even by enabling the integration of the payment methods of competitors as part of the mix of payment options.

“In the choice between building a closed walled garden and open platform, we decided to go with the second model,” PayU’s CEO Laurent le Moal said in an interview. “The reality is that you need to be neutral and work with everyone.”

PayU will also invest in adding further features to the Zooz platform, such as fraud management (which you could argue is table stakes these days in payments), real-time reporting and smart routing.

Zooz’s whole team of 70 will be joining, including co-founders Oren Levy (CEO) and Ronen Morecki (CTO), who will respectively take senior roles at PayU as business development with larger merchants, and CTO of innovation.

Terms of the deal have not been disclosed, but that PayU has said that this deal brings its total spend on acquisitions and investments to about $350 million to date. That includes acquiring CitrusPay for $130 million, investing €100 million (between $120 million and $130 million) in Kreditech and several other investments. Doing the math, this potentially puts this deal at a range of between $50 million and $100 million.

Zooz was founded in 2010 and had raised around $33 million, from investors that include Target Global Ventures, Fang Fund, iAngels, Kreos Capital and existing investors Blumberg Capital, lool ventures, Rhodium, Claltech (Access Industries’ Israeli tech vehicle), XSeed Capital, CampOne Ventures and angel investor Eilon Tirosh.

Similar to PPRO, the company in which PayPal invested earlier this month, Zooz’s service addresses the widespread fragmentation that exists in payments globally. While credit cards are very much the norm in the US, globally they account for just under 20 percent of all e-commerce transactions, with consumers and businesses in different geographies developing their own localised payment methods and preferences. For example, cash on delivery or deposited with convenience stores, or bank transfers also play big roles.

This can be a problem for a merchant that is based in one country but interested in selling to people in another — an opportunity estimated to be worth $994 billion globally — if it doesn’t accept whatever the local payment method happens to be. Zooz addresses this by providing an API to merchants that gives them the option of a number of payment providing companies and methods so that they can enable the most popular variety of payment options to buyers depending on the market.

It will be worth watching whether payment companies will continue to be happy integrating with Zooz after its sale to PayU is complete. The fact that Zooz already integrates with different payment options, and itself is not a payment services provider, was one reason why PayU was interested in it.

At a time when there are multiple options for payment methods, including PayU itself, there is potentially an opportunity to be able to make revenues by trying to play in as many of those transactions as possible. Notably, PayU already lets people integrate some 250 methods into its own wallet, and it says it’s the leading online payment service provider in 16 markets out of the 17 in which it is active..

Zooz potentially will be boosting that footprint with more than just a platform that enables multiple payment options, but the transaction data and analytics that come with those transactions, which can become useful for other services in other parts of the business.

“The unique contribution we bring to PayU is an advanced technological layer which not only helps merchants worldwide to upscale their operations and provide a better customer experience, but also offers analytics and optimization capabilities that equip them with unprecedented insights,” noted Levy, Zooz’s CEO.

UK report warns DeepMind Health could gain ‘excessive monopoly power’

DeepMind’s foray into digital health services continues to raise concerns. The latest worries are voiced by a panel of external reviewers appointed by the Google-owned AI company to report on its operations after its initial data-sharing arrangements with the U.K.’s National Health Service (NHS) ran into a major public controversy in 2016.

The DeepMind Health Independent Reviewers’ 2018 report flags a series of risks and concerns, as they see it, including the potential for DeepMind Health to be able to “exert excessive monopoly power” as a result of the data access and streaming infrastructure that’s bundled with provision of the Streams app — and which, contractually, positions DeepMind as the access-controlling intermediary between the structured health data and any other third parties that might, in the future, want to offer their own digital assistance solutions to the Trust.

While the underlying FHIR (aka, fast healthcare interoperability resource) deployed by DeepMind for Streams uses an open API, the contract between the company and the Royal Free Trust funnels connections via DeepMind’s own servers, and prohibits connections to other FHIR servers. A commercial structure that seemingly works against the openness and interoperability DeepMind’s co-founder Mustafa Suleyman has claimed to support.

There are many examples in the IT arena where companies lock their customers into systems that are difficult to change or replace. Such arrangements are not in the interests of the public. And we do not want to see DeepMind Health putting itself in a position where clients, such as hospitals, find themselves forced to stay with DeepMind Health even if it is no longer financially or clinically sensible to do so; we want DeepMind Health to compete on quality and price, not by entrenching legacy position,” the reviewers write.

Though they point to DeepMind’s “stated commitment to interoperability of systems,” and “their adoption of the FHIR open API” as positive indications, writing: “This means that there is potential for many other SMEs to become involved, creating a diverse and innovative marketplace which works to the benefit of consumers, innovation and the economy.”

“We also note DeepMind Health’s intention to implement many of the features of Streams as modules which could be easily swapped, meaning that they will have to rely on being the best to stay in business,” they add. 

However, stated intentions and future potentials are clearly not the same as on-the-ground reality. And, as it stands, a technically interoperable app-delivery infrastructure is being encumbered by prohibitive clauses in a commercial contract — and by a lack of regulatory pushback against such behavior.

The reviewers also raise concerns about an ongoing lack of clarity around DeepMind Health’s business model — writing: “Given the current environment, and with no clarity about DeepMind Health’s business model, people are likely to suspect that there must be an undisclosed profit motive or a hidden agenda. We do not believe this to be the case, but would urge DeepMind Health to be transparent about their business model, and their ability to stick to that without being overridden by Alphabet. For once an idea of hidden agendas is fixed in people’s mind, it is hard to shift, no matter how much a company is motivated by the public good.”

We have had detailed conversations about DeepMind Health’s evolving thoughts in this area, and are aware that some of these questions have not yet been finalised. However, we would urge DeepMind Health to set out publicly what they are proposing,” they add. 

DeepMind has suggested it wants to build healthcare AIs that are capable of charging by results. But Streams does not involve any AI. The service is also being provided to NHS Trusts for free, at least for the first five years — raising the question of how exactly the Google-owned company intends to recoup its investment.

Google of course monetizes a large suite of free-at-the-point-of-use consumer products — such as the Android mobile operating system; its cloud email service Gmail; and the YouTube video sharing platform, to name three — by harvesting people’s personal data and using that information to inform its ad targeting platforms.

Hence the reviewers’ recommendation for DeepMind to set out its thinking on its business model to avoid its intentions vis-a-vis people’s medical data being viewed with suspicion.

The company’s historical modus operandi also underlines the potential monopoly risks if DeepMind is allowed to carve out a dominant platform position in digital healthcare provision — given how effectively its parent has been able to turn a free-for-OEMs mobile OS (Android) into global smartphone market OS dominance, for example.

So, while DeepMind only has a handful of contracts with NHS Trusts for the Streams app and delivery infrastructure at this stage, the reviewers’ concerns over the risk of the company gaining “excessive monopoly power” do not seem overblown.

They are also worried about DeepMind’s ongoing vagueness about how exactly it works with its parent Alphabet, and what data could ever be transferred to the ad giant — an inevitably queasy combination when stacked against DeepMind’s handling of people’s medical records.

“To what extent can DeepMind Health insulate itself against Alphabet instructing them in the future to do something which it has promised not to do today? Or, if DeepMind Health’s current management were to leave DeepMind Health, how much could a new CEO alter what has been agreed today?” they write.

“We appreciate that DeepMind Health would continue to be bound by the legal and regulatory framework, but much of our attention is on the steps that DeepMind Health have taken to take a more ethical stance than the law requires; could this all be ended? We encourage DeepMind Health to look at ways of entrenching its separation from Alphabet and DeepMind more robustly, so that it can have enduring force to the commitments it makes.”

Responding to the report’s publication on its website, DeepMind writes that it’s “developing our longer-term business model and roadmap.”

“Rather than charging for the early stages of our work, our first priority has been to prove that our technologies can help improve patient care and reduce costs. We believe that our business model should flow from the positive impact we create, and will continue to explore outcomes-based elements so that costs are at least in part related to the benefits we deliver,” it continues.

So it has nothing to say to defuse the reviewers’ concerns about making its intentions for monetizing health data plain — beyond deploying a few choice PR soundbites.

On its links with Alphabet, DeepMind also has little to say, writing only that: “We will explore further ways to ensure there is clarity about the binding legal frameworks that govern all our NHS partnerships.”

“Trusts remain in full control of the data at all times,” it adds. “We are legally and contractually bound to only using patient data under the instructions of our partners. We will continue to make our legal agreements with Trusts publicly available to allow scrutiny of this important point.”

“There is nothing in our legal agreements with our partners that prevents them from working with any other data processor, should they wish to seek the services of another provider,” it also claims in response to additional questions we put to it.

We hope that Streams can help unlock the next wave of innovation in the NHS. The infrastructure that powers Streams is built on state-of-the-art open and interoperable standards, known as FHIR. The FHIR standard is supported in the UK by NHS Digital, NHS England and the INTEROPen group. This should allow our partner trusts to work more easily with other developers, helping them bring many more new innovations to the clinical frontlines,” it adds in additional comments to us.

“Under our contractual agreements with relevant partner trusts, we have committed to building FHIR API infrastructure within the five year terms of the agreements.”

Asked about the progress it’s made on a technical audit infrastructure for verifying access to health data, which it announced last year, it reiterated the wording on its blog, saying: “We will remain vigilant about setting the highest possible standards of information governance. At the beginning of this year, we appointed a full time Information Governance Manager to oversee our use of data in all areas of our work. We are also continuing to build our Verifiable Data Audit and other tools to clearly show how we’re using data.”

So developments on that front look as slow as we expected.

The Google-owned U.K. AI company began its push into digital healthcare services in 2015, quietly signing an information-sharing arrangement with a London-based NHS Trust that gave it access to around 1.6 million people’s medical records for developing an alerts app for a condition called Acute Kidney Injury.

It also inked an MoU with the Trust where the pair set out their ambition to apply AI to NHS data sets. (They even went so far as to get ethical signs-off for an AI project — but have consistently claimed the Royal Free data was not fed to any AIs.)

However, the data-sharing collaboration ran into trouble in May 2016 when the scope of patient data being shared by the Royal Free with DeepMind was revealed (via investigative journalism, rather than by disclosures from the Trust or DeepMind).

None of the ~1.6 million people whose non-anonymized medical records had been passed to the Google-owned company had been informed or asked for their consent. And questions were raised about the legal basis for the data-sharing arrangement.

Last summer the U.K.’s privacy regulator concluded an investigation of the project — finding that the Royal Free NHS Trust had broken data protection rules during the app’s development.

Yet despite ethical questions and regulatory disquiet about the legality of the data sharing, the Streams project steamrollered on. And the Royal Free Trust went on to implement the app for use by clinicians in its hospitals, while DeepMind has also signed several additional contracts to deploy Streams to other NHS Trusts.

More recently, the law firm Linklaters completed an audit of the Royal Free Streams project, after being commissioned by the Trust as part of its settlement with the ICO. Though this audit only examined the current functioning of Streams. (There has been no historical audit of the lawfulness of people’s medical records being shared during the build and test phase of the project.)

Linklaters did recommend the Royal Free terminates its wider MoU with DeepMind — and the Trust has confirmed to us that it will be following the firm’s advice.

“The audit recommends we terminate the historic memorandum of understanding with DeepMind which was signed in January 2016. The MOU is no longer relevant to the partnership and we are in the process of terminating it,” a Royal Free spokesperson told us.

So DeepMind, probably the world’s most famous AI company, is in the curious position of being involved in providing digital healthcare services to U.K. hospitals that don’t actually involve any AI at all. (Though it does have some ongoing AI research projects with NHS Trusts too.)

In mid 2016, at the height of the Royal Free DeepMind data scandal — and in a bid to foster greater public trust — the company appointed the panel of external reviewers who have now produced their second report looking at how the division is operating.

And it’s fair to say that much has happened in the tech industry since the panel was appointed to further undermine public trust in tech platforms and algorithmic promises — including the ICO’s finding that the initial data-sharing arrangement between the Royal Free and DeepMind broke U.K. privacy laws.

The eight members of the panel for the 2018 report are: Martin Bromiley OBE; Elisabeth Buggins CBE; Eileen Burbidge MBE; Richard Horton; Dr. Julian Huppert; Professor Donal O’Donoghue; Matthew Taylor; and Professor Sir John Tooke.

In their latest report the external reviewers warn that the public’s view of tech giants has “shifted substantially” versus where it was even a year ago — asserting that “issues of privacy in a digital age are if anything, of greater concern.”

At the same time politicians are also gazing rather more critically on the works and social impacts of tech giants.

Although the U.K. government has also been keen to position itself as a supporter of AI, providing public funds for the sector and, in its Industrial Strategy white paper, identifying AI and data as one of four so-called “Grand Challenges” where it believes the U.K. can “lead the world for years to come” — including specifically name-checking DeepMind as one of a handful of leading-edge homegrown AI businesses for the country to be proud of.

Still, questions over how to manage and regulate public sector data and AI deployments — especially in highly sensitive areas such as healthcare — remain to be clearly addressed by the government.

Meanwhile, the encroaching ingress of digital technologies into the healthcare space — even when the techs don’t even involve any AI — are already presenting major challenges by putting pressure on existing information governance rules and structures, and raising the specter of monopolistic risk.

Asked whether it offers any guidance to NHS Trusts around digital assistance for clinicians, including specifically whether it requires multiple options be offered by different providers, the NHS’ digital services provider, NHS Digital, referred our question on to the Department of Health (DoH), saying it’s a matter of health policy.

The DoH in turn referred the question to NHS England, the executive non-departmental body which commissions contracts and sets priorities and directions for the health service in England.

And at the time of writing, we’re still waiting for a response from the steering body.

Ultimately it looks like it will be up to the health service to put in place a clear and robust structure for AI and digital decision services that fosters competition by design by baking in a requirement for Trusts to support multiple independent options when procuring apps and services.

Without that important check and balance, the risk is that platform dynamics will quickly dominate and control the emergent digital health assistance space — just as big tech has dominated consumer tech.

But publicly funded healthcare decisions and data sets should not simply be handed to the single market-dominating entity that’s willing and able to burn the most resource to own the space.

Nor should government stand by and do nothing when there’s a clear risk that a vital area of digital innovation is at risk of being closed down by a tech giant muscling in and positioning itself as a gatekeeper before others have had a chance to show what their ideas are made of, and before even a market has had the chance to form. 

Shared housing startups are taking off

When young adults leave the parental nest, they often follow a predictable pattern. First, move in with roommates. Then graduate to a single or couple’s pad. After that comes the big purchase of a single-family home. A lawnmower might be next.

Looking at the new home construction industry, one would have good reason to presume those norms were holding steady. About two-thirds of new homes being built in the U.S. this year are single-family dwellings, complete with tidy yards and plentiful parking.

In startup-land, however, the presumptions about where housing demand is going looks a bit different. Home sharing is on the rise, along with more temporary lease options, high-touch service and smaller spaces in sought-after urban locations.

Seeking roommates and venture capital

Crunchbase News analysis of residential-focused real estate startups uncovered a raft of companies with a shared and temporary housing focus that have raised funding in the past year or so.

This isn’t a U.S.-specific phenomenon. Funded shared and short-term housing startups are cropping up across the globe, from China to Europe to Southeast Asia. For this article, however, we’ll focus on U.S. startups. In the chart below, we feature several that have raised recent rounds.

Notice any commonalities? Yes, the startups listed are all based in either New York or the San Francisco Bay Area, two metropolises associated with scarce, pricey housing. But while these two metro areas offer the bulk of startups’ living spaces, they’re also operating in other cities, including Los Angeles, Seattle and Pittsburgh.

From white picket fences to high-rise partitions

The early developers of the U.S. suburban planned communities of the 1950s and 60s weren’t just selling houses. They were selling a vision of the American Dream, complete with quarter-acre lawns, dishwashers and spacious garages.

By the same token, today’s shared housing startups are selling another vision. It’s not just about renting a room; it’s also about being part of a community, making friends and exploring a new city.

One of the slogans for HubHaus is “rent one of our rooms and find your tribe.” Founded less than three years ago, the company now manages about 80 houses in Los Angeles and the San Francisco Bay Area, matching up roommates and planning group events.

Starcity pitches itself as an antidote to loneliness. “Social isolation is a growing epidemic—we solve this problem by bringing people together to create meaningful connections,” the company homepage states.

The San Francisco company also positions its model as a partial solution to housing shortages as it promotes high-density living. It claims to increase living capacity by three times the normal apartment building.

Costs and benefits

Shared housing startups are generally operating in the most expensive U.S. housing markets, so it’s difficult to categorize their offerings as cheap. That said, the cost is typically lower than a private apartment.

Mostly, the aim seems to be providing something affordable for working professionals willing to accept a smaller private living space in exchange for a choice location, easy move-in and a ready-made social network.

At Starcity, residents pay $2,000 to $2,300 a month, all expenses included, depending on length of stay. At HomeShare, which converts two-bedroom luxury flats to three-bedrooms with partitions, monthly rents start at about $1,000 and go up for larger spaces.

Shared and temporary housing startups also purport to offer some savings through flexible-term leases, typically with minimum stays of one to three months. Plus, they’re typically furnished, with no need to set up Wi-Fi or pay power bills.

Looking ahead

While it’s too soon to pick winners in the latest crop of shared and temporary housing startups, it’s not far-fetched to envision the broad market as one that could eventually attract much larger investment and valuations. After all, Airbnb has ascended to a $30 billion private market value for its marketplace of vacation and short-term rentals. And housing shortages in major cities indicate there’s plenty of demand for non-Airbnb options.

While we’re focusing here on residential-focused startups, it’s also worth noting that the trend toward temporary, flexible, high-service models has already gained a lot of traction for commercial spaces. Highly funded startups in this niche include Industrious, a provider of flexible-term, high-end office spaces, Knotel, a provider of customized workplaces, and Breather, which provides meeting and work rooms on demand. Collectively, those three companies have raised about $300 million to date.

At first glance, it may seem shared housing startups are scaling up at an off time. The millennial generation (born roughly 1980 to 1994) can no longer be stereotyped as a massive band of young folks new to “adulting.” The average member of the generation is 28, and older millennials are mid-to-late thirties. Many even own lawnmowers.

No worries. Gen Z, the group born after 1995, is another huge generation. So even if millennials age out of shared housing, demographic forecasts indicate there will plenty of twenty-somethings to rent those partitioned-off rooms.

Job hunting service Glassdoor sold to Japan’s Recruit for $1.2 billion

U.S. job hunting service Glassdoor, which is best known for providing insight into company working cultures, has been acquired for $1.2 billion in cash by Recruit, a $39 billion Japanese corporate that specializes in HR and recruitment services.

The all-cash acquisition will see Glassdoor continue to maintain its brand, CEO Robert Hohman explained in a blog post.

“Our mission has been the same since day one: to help people everywhere find a job and company they love. That mission will not change as part of Recruit. Glassdoor will continue to operate as a distinct brand to fulfill this mission — and will be able to do so with greater speed and impact than we could achieve alone,” Hohman wrote.

Glassdoor raised a total of just over $200 million from investors, with its most recent round a $40 million Series H in March 2016. That last investment gave Glassdoor a valuation of around $1 billion. That’s not a huge amount more than what Recruit is paying, which suggests that the last couple of years haven’t been so spectacular for Glassdoor in terms of growth.

Nonetheless, this deal looks like a win for those backers, particularly the earlier stage investors such as Benchmark and Battery Ventures .

Ten-year-old Glassdoor says it is used by 59 million people each month, many of whom come to the service to read about how companies are rated by the people who work, or worked there. While it is headquartered in the U.S., Glassdoor says it has information on more than 770,000 companies across 190 countries worldwide, including 40 million reviews covering company culture, CEO ratings, salary information and more.

Glassdoor’s revenue comes from recruitment services, and it claims to work with some 7,000 employees and 40 percent of the Fortune 500.

Recruit may not be a well-known name in the U.S. but the Japanese firm is huge, and it is history as a purchaser of overseas businesses.

The firm — which was founded in 1960 — is listed on the Toyko Stock Exchange and it has 45,000 employees across 60 countries.

Beyond recruitment and HR services, it also operates in real estates, travel, dining and other segments. That’s reflected in its past acquisitions, which have included U.S. job sites Indeed.com (2012), Simply Hired (2016) and, in Europe, restaurant site Quandoo (2015)hair and beauty service Wahanda (2015) and education technology company Quipper (2015).

Russia’s Telegram ban that knocked out 15M Google, Amazon IP addresses had a precedent in Zello

Russia blocking access to Telegram after the messaging app refused to give it access to encrypted messages has picked up an unintended casualty: we’re now up to over 15 million IP addresses from Amazon and Google getting shut down by the regulators in the process, taking various other (non-Telegram) services down with it.

Telegram’s CEO Pavel Durov earlier today said that its reach in the country has yet to see an impact from the ban 24 hours on, with VPNs, proxies and third-party cloud services stepping in to pick up the slack for its roughly 14 million users in the country, and third parties refusing to buckle under requests from Roskomnadzor, the regulator, to remove the app from its stores and servers.

“Thank you for your support and loyalty, Russian users of Telegram. Thank you, Apple, Google, Amazon, Microsoft — for not taking part in political censorship,” Durov noted.

But Telegram’s Russia crisis is not the first time that an app banned by the Russian government has had to rely on third-party support to navigate its position with users. A recent precedent involving a much smaller communications app sheds some light on how all of this works. And ironically, its own run-in may have been the reason for why the government moved so quickly to block so many IP addresses around Telegram’s, affecting more than just the app itself.

A little over a year ago, the walkie-talkie app Zello received a notice from the Russian regulator Roskomnadzor. Zello was informed that it would be banned unless it started to host records of the conversations that were taking place on the app on Russian servers — in compliance with a hosting requirement that Russia put in place for ISPs back in 2014 as part of its efforts to tighten its control of digital information in the name of national security.

You might remember the name Zello from its bump of attention when a wave of people hit by Hurricane Harvey in Texas used it to communicate with each other when voice services went down or became too clumsy to use, but mobile internet connections stayed up. “Voice is how we most naturally communicate, and push-to-talk and radio-style communication is instant, no dialling or waiting,” said Zello CEO Bill Moore. “It can be with one person or large groups and build relationships and to solve problems.”

The startup itself is based out of Austin, Texas and has around 120 million registered users, with around four million monthly active users.

Moore — who had in the past also founded and run another Texas startup, TuneIn — said in an interview this week that Zello’s run-in with Russia started about a year ago, when the regulator started to block the application in Spring 2017, after Zello refused to cooperate with the hosting requirement, both on grounds of cost and principle.

(Cost: because it’s a small startup. And principle: because Zello is built in a way where messages are stored locally, both for direct messages and those sent in more widely-distributed channels, the feature that Moore believes might have been “why Zello annoyed Russia,” because protestors used these channels to coordinate activities.”)

Instead of buckling and leaving Russia, Zello decided to use to some software it had written years before, when the app had been issued with a block in Venezuela after it ran afoul of the government there — software “that let us change IP addresses for our service,” as Moore describes it. The change in IP addresses essentially meant that as Zello was shut down in one place, it was able to hop to another, using services from either AWS or Google Cloud.

Moore said that Zello — which originally hosted its service on IBM’s cloud before the ban — used its IP hopping tactic for nearly a year, moving first across IP addresses on Amazon and then hopping to Google Cloud when Amazon got too hot. By the time Zello started using Google Cloud, the government was well on to Zello’s ways, and it took only about 10 days before Google asked Zello to stop, Zello’s CTO and founder Alexey Gavrilov added.

“About a month ago, the press in Russia began to report that Roskomnadzor was threatening to block millions of addresses if that’s what it took to get Zello [to retreat]. That was when Amazon said, ‘you need to stop changing IP addresses,’” Gavrilov said. “We tried to get Amazon to reconsider, making the case that by asking us to stop, it is are really acting the same way that ISPs do that are controlled by Russia. Zello is not damaging, but Russia is by blocking. It’s not wise to go along with that threat.”

His argument echoes what Durov has been saying in defense of Telegram, although it didn’t appear to wash for the smaller app. “We lost that debate,” Gavrilov said.

Moore and Gavrilov say they believe Telegram may be using a similar kind of approach to move around Amazon- and Google-based IP addresses (I’ve tried to contact Durov to ask about this but have not had a reply; Google and Amazon also have not replied to my emails). However, now, with the Russian authorities well aware of the tactic, it simply decided to block large swathes of IPs to act more quickly, rather than negotiate with cloud companies to pick out which IP addresses were actually being used.

Partly because of the size of the service in question, and partly because of the blanket blocking, the difference between the IP addresses being blocked varied from just over 2,000 for Zello to more than 15 million by the time Telegram attempted its own IP hops.

Zello still believes that it was not in the wrong in its own encounters with the Russian government, although its appeals to Amazon and Google, and eventually Apple and others who host the app on their stores, ultimately didn’t wash.

“We believe that Zello doesn’t violate Russian law because originally the hosting requirement was written for ISPs, and Zello is not an ISP,” Moore said. “We cooperate with law enforcement on a consistent basis and do what we can under the law.” But like Telegram, Zello takes the view that the medium should not be attacked because of how it is used. “Terrorists drink water, but I don’t think we should outlaw water, either,” is how Moore describes his stance.

Since about two weeks ago, the only way that people in Russia can use Zello is by way of VPN proxies. Zello has a fairly even distribution of its several millon monthly active users across several countries, including the U.S., Mexico, Brazil, and Hong Kong. Russia had been one of its top markets until this happened, but the cost to Zello has been about half of its active users in the country, which now stand at 200,000.

“We don’t like to think about how we’ve lost half our users there,” Gavrilov said. “We like to think about how many we’ve managed to keep.”

Zello has always been ad-free and free to use by regular consumers. Moore said that the company is profitable, making its revenues through a premium tier for businesses to have their own private channels. So far, Zello is completely bootstrapped, although Moore said that it is likely it will want to raise money eventually to grow its consumer business.

Neither CTO nor CEO think that Russian bans impact the company’s wider business.

“In my opinion, incidents like these only help companies like Telegram and Zello on the global market,” Gavrilov (a native of Russia) said. “Realistically, Russia is a small share of the Telegram user base, and standing up to the demands in Russia just communicates to everyone else that you can trust these people. That only makes it more valuable.”

Amazon partners with French retailer Monoprix to launch Prime Now grocery deliveries in Paris

Amazon’s business in France is taking a big step forward after announcing a new deal today with retail giant Monoprix to deliver groceries through Prime Now. The service will begin serving Prime Now members in Paris this year and include products carried by Monoprix, including its own branded items and fresh produce.

Monoprix’s website already offers services including home deliveries in some areas and “click and collect,” which lets shoppers pre-order items online before picking them up at a nearby store.

Frédéric Duval, Amazon France’s country manager, told Journal du Dimanche earlier this month that the company wanted to launch grocery delivery there, though at the time he didn’t specify who Amazon would partner with. Monoprix competitors Systeme U, Leclerc and Intermarche were reportedly also considered potential candidates, while struggling big box store operator Carrefour was speculated to be an acquisition target.

Monoprix is owned by Casino Group, a French retail conglomerate that operates stores, including supermarkets, convenience stores and restaurants, in France, Latin America and Southeast Asia. It generated 38 billion Euros in consolidated net sales last year.

In press statement, Duval said “This commercial partnership, which further enlarges Prime Now service selection, will enable Amazon Prime customers to benefit from ultra-fast deliveries for their Monoprix orders.”

Maki.vc is a new early-stage VC out of Helsinki co-founded by the Chair of Slush

A new early-stage VC fund targeting tech startups in the Nordics is getting its official launch today. Founded by serial entrepreneur and Slush Chairman Ilkka Kivimäki​, and former F-Secure and startup executive Pirkka Palomäki​, Helsinki-based Maki.vc will invest in nascent and burgeoning companies in the region, both at seed and Series A stage. The VC […]

Revolut broke even in December, now has 1.5 million customers

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Day One Ventures launches fund which wraps VC and PR into one

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Badi bags $10M to build out its room rentals platform in Europe

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Sodexo acquires majority stake in French online restaurant FoodChéri

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Countingup, a startup from founder of Clear Books, raises ​$750K to merge banking and accounting

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BuddyGuard raises €3.4M for its home security camera powered by AI

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BridgeU raises $5.3m to close the gap between education and industry needs

 Students deciding on their next phase in higher education face a daunting choice and a array of options. Most schools have zero capability to deal with sifting 40,000 undergraduate courses in the UK, alone. Why not apply big data to the problem and create an ‘adaptive learning platform’ which actually helps students make these crucial decision, based on real data.
That’s… Read More

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AI-powered customer marketing platform Ometria raises $6M Series A

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Digital wealth manager Moneyfarm acquires tech behind fintech chatbot Ernest

 Moneyfarm, the U.K.-headquartered “digital wealth manager” has acquired the technology behind personal finance chatbot Ernest. Terms of the deal aren’t being disclosed, though I understand that, along with the tech, this is an acqui-hire of sorts, seeing London-based Ernest’s CTO Lorenzo Sicilia join Moneyfarm to oversee technology integration. Read More

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DogBuddy, the European dog sitting marketplace, scores €5M Series A

 DogBuddy, a pan-European online marketplace for dog sitting, has closed €5 million in Series A funding, money it plans for further expansion. Backing the London-headquartered startup in this round is existing investor Sweet Capital, the investment fund started by the founders of King.com, and a number of new unnamed private investors. It brings total raised by DogBuddy to €10 million. Read More

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Pointy, a startup that lets local retailers easily put stock online with a simple gadget, raises​ ​$6M

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Index Ventures is coming in force to TechCrunch Disrupt Berlin this December

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But before we outline the details, please just be aware that our final batch of Disrupt Berlin 2017 tickets at the deeply… Read More

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Acasa is building a platform for ‘Generation Rent’ to manage their homes

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Carspring, a London and Berlin startup that lets you buy a used car online, raises £5M Series B

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iRobot to acquire its biggest European distributor for $141M

 Consumer robot maker iRobot is to acquire its largest European distributor, Robopolis, in a cash deal worth $141 million. The company said it’s signed a definitive agreement to acquire the privately-held, French company, with the acquisition expected to close in October 2017. Read More

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Startup hub builder Factory plans gargantuan new campus in Lisbon

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The dream of Polish tech entrepreneurship is almost over

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Privitar raises $16M to help ensure privacy in big data analytics

Data flying over group of laptops to illustrate data integration/sharing. As data protection — a set of laws and practices created across different markets to ensure that our sensitive information does not get leaked or shared without our permission — continues to gain priority in our rapidly expanding digital world, a UK startup called Privitar that is building tools to help organizations keep that data private has picked up $16 million in funding… Read More

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Trainline now gives you real-time train information in France

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Inside Station F, the startup megacampus that just opened in Paris

 Station F is the world’s biggest startup campus. Thousands of entrepreneurs are currently moving into the new building here in Paris. But if you’re still wondering what it actually looks like, we visited Station F and interviewed the two persons behind it — Roxanne Varza and Xavier Niel. Station F is a massive building that has been completely renovated and now features… Read More

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Tonsser, the social app for youth soccer players, partners with Nike and raises new funding

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Construction tech company Aproplan closes €5 million Series A

 Not so long ago the administration needed to run a major construction project relied almost entirely on pen, paper, excel spreadsheets and faxes. That has provided a huge opportunity for startups to take a stab at digitising the construction industry. Brussels-based Aproplan, which bills itself as akin to “Salesforce for construction,” is one such company, and today is disclosing… Read More

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Twist is Slack without the annoying distractions

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Heresy, founded by ex-Stack Overflow Europe MD, wants to help sales teams close with better data

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