Category: Startups

Vericool raises $19.1 million for its plant-based packaging replacement for plastic coolers

Vericool, a Livermore, Calif.-based startup that’s replacing plastic coolers and packaging with plant-based products, has raised $19.1 million in a new round of financing.

The company’s stated goal is to replace traditional packaging materials like polystyrene with plant-based insulating packaging materials.

Its technology uses 100% recycled paper fibers and other plant-based materials, according to the company, and are curbside recyclable and compostable.

Investors in the round include Radicle Impact PartnersThe Ecosystem Integrity FundID8 Investments and AiiM Partners, according to a statement.

“We’re pleased to support Vericool because of the company’s track record of innovation, high-performance products, well-established patent portfolio and focus on environmental resilience. We are inspired by the company’s social justice commitment to address recidivism and provide workplace opportunity to formerly incarcerated individuals,” said Dan Skaff, managing partner of Radicle Impact Partners and Vericool’s new lead director. 

John Borthwick & Matt Hartman of betaworks discuss coronavirus adaptation strategies

Yesterday, I had the pleasure of hopping on Zoom with betaworks’ John Borthwick and Matt Hartman to discuss the tech world’s adaptation to this new locked-down world, the future of new media and answer questions from the audience.

We discussed whether new media companies can raise capital right now, and touched on emerging trends around audio, voice, AR, live events, travel-related companies and many other topics.

It was a delight, and I’m excited to do more of these in the future.

For those of you who missed the Zoom, here’s a rundown of what we discussed (audio embed below).

Smart telescope startups vie to fix astronomy’s satellite challenge

Starlink, the satellite branch of Elon Musk’s SpaceX company, has come under fire in recent months from astronomers over concerns about the negative impact that its planned satellite clusters have reportedly had — and may continue to have — on nighttime observation.

According to a preliminary report released last month by the International Astronomical Union (IAU), the satellite clusters will interfere with the ability of telescopes to peer deep into space, and will limit the amount of observable hours, as well as the quality of images taken, by observatories.

The stakes involved are high, with projects like Starlink potentially being central to the future of global internet coverage, especially as new infrastructure implements 5G and edge computing. At the same time, satellite clusters — whether from Starlink or national militaries — could threaten the foundations of astronomical research.

Musk himself has been inconsistent in his response. Some days, he promises collaboration with scientists to solve the issue; on others, such as two weeks ago at the Satellite 2020 conference, he declared himself “confident that we will not cause any impact whatsoever in astronomical discoveries.” 

Critics have pointed fingers in many directions in search of a solution to the issue. Some astronomers demand that spacefaring companies like Musk’s look after the interests of science (Amazon and Facebook have also been developing satellite projects similar to SpaceX’s) . Others ask national or international governing bodies to step in and create regulations to manage the problem. But there’s another sphere altogether that may provide a solution: startups looking to develop “smart telescopes” capable of compensating for cluster interference.

Should they deliver on their promise, smart telescopes and shutter units will save observatories time and money by protecting images that are incredibly complicated to generate.

YC startup Felix wants to replace antibiotics with programmable viruses

Right now the world is at war. But this is no ordinary war. It’s a fight with an organism so small we can only detect it through use of a microscope — and if we don’t stop it, it could kill millions of us in the next several decades. No, I’m not talking about COVID-19, though that organism is the one on everyone’s mind right now. I’m talking about antibiotic-resistant bacteria.

You see, more than 700,000 people died globally from bacterial infections last year — 35,000 of them in the U.S. If we do nothing, that number could grow to 10 million annually by 2050, according to a United Nations report.

The problem? Antibiotic overuse at the doctor’s office or in livestock and farming practices. We used a lot of drugs over time to kill off all the bad bacteria — but it only killed off most, not all, of the bad bacteria. And, as the famous line from Jeff Goldblum in Jurassic Park goes, “life finds a way.”

Enter Felix, a biotech startup in the latest Y Combinator batch that thinks it has a novel approach to keeping bacterial infections at bay – viruses.

Phage killing bacteria in a petri dish

It seems weird in a time of widespread concern over the corona virus to be looking at any virus in a good light but as co-founder Robert McBride explains it, Felix’s key technology allows him to target his virus to specific sites on bacteria. This not only kills off the bad bacteria but can also halt its ability to evolve and once more become resistant.

But the idea to use a virus to kill off bacteria is not necessarily new. Bacteriophages, or viruses that can “infect” bacteria, were first discovered by an English researcher in 1915 and commercialized phage therapy began in the U.S. in the 1940’s through Eli Lilly and Company. Right about then antibiotics came along and Western scientists just never seemed to explore the therapy further.

However, with too few new solutions being offered and the standard drug model not working effectively to combat the situation, McBride believes his company can put phage therapy back at the forefront.

Already Felix has tested its solution on an initial group of 10 people to demonstrate its approach.

Felix researcher helping cystic fibrosis patient Ella Balasa through phage therapy

“We can develop therapies in less time and for less money than traditional antibiotics because we are targeting orphan indications and we already know our therapy can work in humans,” McBride told TechCrunch . “We argue that our approach, which re-sensitizes bacteria to traditional antibiotics could be a first line therapy.”

Felix plans to deploy its treatment in those suffering from cystic fibrosis first as there is no cure for this disease, which tends to require a near constant stream of antibiotics to combat lung infections.

The next step will be to conduct a small clinical trial involving 30 people, then, as the scientific research and development model tends to go, a larger human trial before seeking FDA approval. But McBride hopes his viral solution will prove itself out in time to help the coming onslaught of antibiotic resistance.

“We know the antibiotic resistant challenge is large now and is only going to get worse,” McBride said. “We have an elegant technological solution to this challenge and we know our treatment can work. We want to contribute to a future in which these infections do not kill more than 10 million people a year, a future we can get excited about.”

Three travel startups tell us how they’re responding to the coronavirus crisis

With the globalized world going into partial or complete lock down over the Covid-19 pandemic, startups in the travel sector are facing a huge stress test and immediate disruption to business as usual as public health concern spirals and entire populations are encouraged or even forced not to travel.

The traditional travel hub of Europe has emerged as a secondary hotspot for the virus, after SARS-CoV-2 first emerged in China late last year.

Italy, France and Spain have all reported thousands of cases apiece, with the latter declaring a state of high alert today. Earlier this week Italy — the hardest hit EU country so far — imposed nationwide travel restrictions, with confirmed cases passing 12,000 as of yesterday. Several other EU countries have also implemented varying quarantine measures. More lockdowns are expected in the coming weeks.

In a further development, US President Trump sent shockwaves through EU institutions earlier this week by unilaterally announcing a 30-day ban on travel from most countries in the bloc.

Today the European Commission came out with its own response — laying out a $37BN package of measures intended to mitigate the socio-economic impact of Covid-19, including bringing forward €1BN out of the EU budget to act as a guarantee to the European Investment Fund to encourage banks to lend to SMEs in affected sectors.

“This is expected to mobilise €8BN of working capital financing and support at least 100,000 small and medium-sized businesses and small mid-cap companies in the EU,” the Commission said, suggesting banks will be in a position to act on the liquidity injection from April 2020.

Of course travel startups with investor capital in the bank aren’t waiting around to react to the coronavirus crisis. They’re already ripping up 2020 roadmaps and thinking again — swapping out marketing plans and doubling down on product and engineering, according to three businesses we spoke to.

We asked three European travel startups how they’re being impacted by the coronavirus crisis and what steps they’re taking to manage a demand crunch combined with ongoing — and potentially long term — uncertainty in the sector.

Berlin-based GetYourGuide, which has built a marketplace selling sightseeing tours and other travel experiences, and last year bagged a $484M Series E round; Omio, another Berlin-based startup that’s built a multi-modal travel aggregator and booking platform, backed by nearly $300M to-date; and Barcelona-based TravelPerk, a fast-growing business travel booking platform that’s pulled in more than $130M in VC funding as it shakes up a legacy space.

“Demand is dropping off a cliff”

All three told us they’ve seen a major drop in bookings combined with a rise in customer service demand as people with existing travel plans seek to get in touch to cancel or reschedule trips.

As of this week GetYourGuide said bookings for new experiences are down nearly 50% globally vs its demand forecasts for the past two weeks. While customer service enquiries have tripled in the past two weeks, and its global cancellation rate has ticked up by 20%.

Those that are still planning trips are doing so closer to home or with less advanced notice than normal — with bookings made within three days of the start time up 15%. 

“It’s the biggest nuclear winter I’ve ever seen in online travel,” co-founder and CEO Johannes Reck told TechCrunch. “Everyone goes and prepares for Easter break and that is not at all happening. All of the European countries seem to be in lockdown.

“None of our Italian customers are booking, the German customers have degraded rapidly. France and Spain have recently followed. The UK has been more stable but seems to follow the same course now. And the US since [Trump announced the travel ban] as well… The US travel ban is now sealing it. So this will be a year of extreme turbulence of the travel market.”

For Omio it’s a similar story — with bookings over the last two weeks down between 30-40% overall across all markets, according to founder and CEO Naren Shaam, and a big spike in demand for customer service as worried customers look to cancel trips.

“The whole company is actually stepping in to help customer service because we’ve seen a spike in cancellations,” he said. “In general the impact is heavy. Demand is dropping off a cliff but it’s not as bad as we thought — but it is definitely heavy.”

It’s seeing similar changes in booking behavior. “Advanced booking has come down drastically,” he noted. “But we see a spike in short term last minute trips when people feel comfortable on the region — so that’s gone up a lot.”

TravelPerk told us it’s currently dealing with a drop in business globally of around 50%. Though co-founder and CEO Avi Meir is braced for further drops if more of the West goes into lockdown forcing more companies to scrap business trips.  

“You would expect that it dropped to zero but right now people are still travelling,” he told us. “Everybody who can avoid traveling right now probably should and does but you have many people who just critically have to keep travelling — so we see around 50% drop right now.”

Regionally of course as expected APACS has been the most affected in terms of our volumes — Japan, South Korea, Hong Kong and China down north of 95%. 100% depending on which day you’re looking and what country you’re looking at,” he added. “China is actually starting to open up a little bit but at the peak we looked at 100% — nothing was being booked in terms of destination.

“In terms of the more core markets for us, Italy is 84% down right now… You also see significant impact in Belgium, Netherlands, Holland, Sweden.

“France, Spain and UK are down year-on-year but not significantly yet. In the Western part of the continent and the UK people are still traveling relatively more than other countries.”

Demand for TravelPerk’s customer support has also never been so busy, he also said.

“We actually are switching some of our sales team to customer support in the coming weeks just to support the volume of tickets,” he noted. “We’re very proud that our metrics are not declining — meaning specifically service level; how fast we solve cases; our ‘C-sats’, customer satisfaction. The metrics we really care about.  Are people happy and are we solving their cases fast?

“We’re keeping them although, so far, the past weeks have been the busiest in customer support since we started the company via number of tickets.”

TravelPerk has also seen radical changes to the usual booking window. “Most of the trips we see right now is somebody booking for tomorrow or for two days from now because they for know they can travel or have certainty they can travel,” said Meir. “Which is unusual compared to normal times. In normal times people book  20-21 days ahead on average. So you have a huge decrease in the booking window.”

While of its flagship products is actually seeing high demand in the current crisis situation, per Meir — given it’s designed to offer resilience against unforeseen changes to plans.

“We have this product, FlexiPerk, which allows the users to cancel or change for any reason and if they do they get at least 90% of the money back. FlexiPerk has been really, really on fire over the past few weeks — both in terms of users, those who are already on FlexiPerk and also new sign-ups which is actually driving a lot of our growth in terms of signs ups.

“It gives people the certainty — or it reduces the uncertainty — about the mid- term or long term future. So if you are planning a trip in September or in October it’s reasonable to expect to be able to travel but you don’t really know. And FlexiPerk really plugs this gap because it allows you to book now for September knowing that if you have to change your plans you can do so without losing the money.”

“Right now most of the airlines have changed their cancelation policies so we are able to get full refunds in many cases,” he added. 

All three European businesses said the changes in demand had hit extremely rapidly.

“Up until maybe 2-3 weeks ago we were still growing,” Meir told us. “Because most of our travellers — or at least the headquarters of the travellers — are concentrated in Europe and North America so the impact was kind of delayed.”

“Since we’re more a global business we already started noticing Chinese outbound dropping — because we have an office in China — it hit us already around January, February. So we already saw that in our Chinese outbound dropping by 90+%,” added Omio’s Shaam. 

GetYourGuide’s Reck said it was also forewarned of the looming crunch via their Asian business.

“We had already seen a significant decline in our Asian business,” he told us. “That was still so small and the overall growth in Europe and the US was so strong that it was negligible at that point in time — but it gave us a glimpse.”

Two of its investors, Japan-based Softbank and Singapore-based Temasek, also put GetYourGuide on early “red alert” over the novel coronavirus because other portfolio companies were suffering heavy impacts.

“We had two weeks to prepare which I guess put us ahead of the curve for most other US and European companies,” said Reck. “Then when corona hit, at the end of February, we’ve seen a very rapid decline and now the current global travel demand is roughly 60% down from where it should be at this point in time so we are massively depressed.”

The change is more marked for being set against “a tremendous start to the year” before the virus hit Europe — Reck dubs it “the best time in history of the company” — with January and February seeing it close to doubling business. 

Rerouting resources in a travel crunch

So how are the three founders coping with a sudden revenue crunch combined with spiralling global uncertainty falling over their sector?

All three described being relatively well cushioned — on account of recent financing.

“We are in an incredible position because we’ve raised this massive round last year and we haven’t spent a lot of it,” said GetYourGuide’s Reck. “We’ve been very frugal with it. In the early months after the fund raise SoftBank was very angry with us that we were so disciplined and we weren’t investing more in growth. Now they’re, I think, very, very happy — the new role model for the portfolio.

“The good news is that as we come from a position of strength and we will survive and prevail for sure. That’s the positive news.”

With plenty of capital still in the bank the team has been able to quickly redirect resources on servicing near-term customer needs during the travel crunch.

“The way we’re seeing this internally is with every major crisis comes major opportunity. At this point in time we believe there’s incredible opportunity to make a real different for our customers, our suppliers and our ecosystem broadly,” Reck added. “For instance, for customers we have pushed immediately after we saw the news coming full flexibility on bookings and cancelations.

“Customers can now cancel all of the experiences 24 hours in advance, no questions asked, for a refund. If you go under 24 hours you actually get a gift coupon so you can rebook of the full value in the future. And if you’re affected by a lockdown you will get the full amount back no questions asked.”

“We’ve been doing mass cancellations for Italy. We’re just doing it for France. We’re doing it for the US because of the travel ban now. We refund our customers fully, no questions asked,” he added.

Reck also said it’s doing what it can to support suppliers who will also clearly be struggling from the same demand crunch.

“Wherever there’s an opening where we see demand popping up again we make sure it gets as quickly as possible to our suppliers,” he told us, saying its doubling down on its GetYourGuide Originals in-house short tours product. “We want to be a good partner. We don’t go in now and start to negotiate on commission rates or anything like that.”

Another area it’s spending on right now is localization — in order that it can support suppliers by being able to cater to demand cropping up off the beaten track.

“We’re translating our offering into more languages,” he noted. “We’re making sure the offering itself has better terms for the customers in terms of cancelation policies and we’re educating the suppliers around that — and that will ultimately drive their bookings. So we are doing quite a bit in order to make sure that they survive and that they get the revenue through our platform that they deserve.”

Zooming out, Reck told us he’s taking “a really long term view” on travel.

“The travel landscape through this crisis will inevitably change,” he predicted. “When the corona crisis is over online travel will look very different and just survival is going to be an incredible competitive advantage vs the rest. We believe that a lot of players will go bust. And we see that already as we speak so over the next couple of days you’ll see major layoffs, you’ll see restructurings, you’ll see people scramble.”

“That’s what we always said when we raised the SoftBank round. Ironically I never knew that long term view would actually mean that we freeze down for a year… but if you look at online travel over the course of history and you look at the big dips — like 9/11 was a massive dip and the following recession; the financial crisis was a massive dip — you see overall travel is a long term trend. And I think if you look at a ten year timespan even this corona crisis will just be a small dip in a growth curve.

“So I’m very long on travel over a longer period of time. And that’s where we’re doubling down. So we’re rather taking the opportunity now to really focus on product and engineering — and that’s something really liberating to me. Of not really having a 2020 budget anymore.

“The conversion gains on the margin won’t matter. So we can really double down on significantly improving the product for our customer and that means giving a better search and discovery experience, more personalized, curating more GetYourGuide Originals with our suppliers… So that when we come out of this crisis we come out with a better technology product and a much better supply base.”

“I think, as I said, just surviving will be a competitive advantage. Surviving with a better product and better supply will be magic — and that’s really what we’re betting on.”

Omio, meanwhile, is also in a position to look beyond the current crisis in demand.

“We are lucky to be well funded and have raised a lot of capital,” said Shaam. “We’re lucky to have very long term investors when you think of Kinnevik and Temasek — both of them…. almost like a mutual fund so basically long term capital.”

Nonetheless, the business has responded to plunging demand by trimming variable costs — while also viewing the demand crunch as an opportunity to rechannel investment into the core product.

“We’re cutting all variable costs, managing the costs better, taking precautions — using the crisis as an opportunity… fixing all the systems we could never invest in in scale because every month there’s a metric to meet. And really then rearchitecting for scalability,” he told us.

“Because the main thing is if you think of travel, human inherent desire to travel is never going to go down. Right now what we’re doing is bottling that in for 3-4 months but you’ve got to open the lid at some point — I hope — and when that comes out the demand will grow even faster. And we want to be ready for that. So we’re using this, call it, crisis as an opportunity to really build scalability. All the underlying architecture, campaign structures, whatever data flows were not perfect before, product messaging etc.

“The cash position of course is something we have an eye on, as stewards of capital, but it’s more so that we’re also using this as an opportunity to really think long term and how we actually benefit.”

Duty of care

As a crisis response, Shaam said Omio has put together three internal task forces to respond to immediate challenges — one focused on supporting its customers; another on its own employees; and a third concentrating on business stability and figuring out where to invest and where to pull back during unusual times.

On the customer support side Omio’s suppliers define cancellation policies so there’s only so much it can do but Shaam said it’s been putting out messaging to help users — creating a spreadsheet of cancellation policies listing companies that give refunds and those that don’t, and publishing updates on things like cancelled flights. 

On the employee support side there’s a mix of well-being and practical issues being tackled. 

How can we protect safety regulations? Trigger points. We have clear guidelines… today we triggered that we work from home for 15 days,” he said. “How to protect mental health so nobody goes crazy sitting at home all day? Connectivity, all of that stuff. What if you have school shut down — how do you balance children at home alone with working at the same time? All of this stuff.

“There’s a lot of practical questions that come up — like the design team need to take their chunky monitors home so they can actually design. All of these things are being tackled by that task force.”

“As a startup you can actually bring these together very quickly,” Shaam added. “Today we had a small team — that team is now quite large, 10+ people going at all three workstreams. So let’s see how we survive.

“Again, there’s a lot of uncertainty but I feel that the best thing I can do is bring stability, bring confidence into the organization.”

TravelPerk’s Meir said the business is also most focused on responding to immediate challenges and needs — including keeping up with the demand it’s seeing.

Even though bookings are down new sign ups are up, he told us.

The focus right now as an organization is really on the day by day — we need to make sure we keep providing the service,” he said. “We keep actually selling and a lot of companies are signing up. Sign ups are actually dramatically up. People are signing up they’re just obviously not travelling so we have a lot of short term priorities that are extremely important.

“Maybe if we hadn’t raised a C round last year — $100+ million — we would be in a different situation but right now we are fortunate to be in this position so we have to focus on short term priorities without knowing where it’s going to end.”

The company is also using a moment of plunging sales to direct attention on product. And is hiring more engineers to be able to accelerate product dev — including to build crisis response features.

“I’m sure we’re not unique in the tech world but we’re actually investing more in the product. So we keep hiring — we actually increased our hiring plan for product and engineering. And so far we’re not reducing our burn let’s say but we’re shifting that towards really what matters for our customers.

“We’re already ahead of the curve in product but this is a really good opportunity to keep pushing on our strengths and another one we’re doing is adjusting the business and the business model as well.”

Meir gave the example of a premium concierge service which it’s just decided to provide for free for all its users for the next three months. “Although it’s going to increase dramatically our costs in customer care it’s the right thing to do for our customers,” he said of that particular coronavirus triggered business adjustment.

“You’ll see some really cool stuff coming out,” he added. “The product team, together with the commercial team is changing roadmaps. In a way we threw the roadmap of 2020 to the bin and we started working on a weekly basis.”

Another example he gave is a new feature it’s launched in partnership with medical and travel security company, International SoS, to help companies not only track where in the world their employees are but ensure they have the medical or other crisis expertise support available should the worst happen off-site.

“It’s the best company in the world for duty of care,” said Meir. “It’s one of those topics that in normal times people don’t really like to think about it — but this is probably the highest request we were getting in the past 2-3 weeks from customers.” 

“We went from idea to releasing it in less than 5 days of work,” he added. “So again reducing the risk, reducing the uncertainty piece. This is a thing that we’re going to do more and more as this situation evolves. If we have a request for a feature like ‘duty of care’ — which makes tonnes of sense right now — we’re going to shift the roadmap and do more of these kind of things.”

“This is a moment to be decisive and adaptable but also courageous and to invest in what makes TravelPerk stronger this year, next year and ten years,” he added. “This doesn’t change — we have great investors. We have a good cash position, great team. So we should keep hiring, we should keep investing in the product, we should keep investing in our service — so my biggest worry is that we [don’t] act out of panic or out of confusion — and that’s something we should be aware of and not do. But I’m happy to say that that’s not the case.”

As part of its own pro-active crisis response, TravelPerk has this week switched to 100% remote working — a radical change for Meir, who has deliberately required presence from his staff up to now for workplace culture reasons.

“We don’t do remote work. It’s something that’s one of these trendy things that we decided not to do yet for various reasons. We just think our culture is much stronger when people are physically in the same space and we switched from nobody does remote work to 100% remote,” he told us. 

“We thought that the government — especially in Spain where most of our team is — is not reacting fast enough and aggressively enough [to Covid-19]. This is really unfair for the elderly and those who have previous health conditions…So we decided to take action… And I was just amazed how fast we transitioned from a company that doesn’t do remote to full on remote.”

GetYourGuide has also gone fully remote. “We did that on Monday,” said Reck. “Everyone called me crazy and now on Friday everyone wants to have our best practices playbook.”

“The health and safety of our employees and most importantly of the community around us [is our biggest concern],” he added. “We are in constant contact with everyone — to make sure people feel safe.

“They are now at home, they follow the news all the time. There’s huge psychological pressure — the travel market’s going down, the stock market’s going down — so for me by biggest role is to keep that strong engagement and morale and that people don’t feel threatened by the situation around them.”

As it happens, Reck is a biochemist by education — so likely one of relatively few founders in the travel space with hands-on lab experience of viruses. He’s also braced for the longest ‘nuclear winter’ of business disruption of the three startups we spoke to.

“What we know about this virus is there is no immunity in the population — meaning that this will continue to spread,” he said. “Every potential person is a host. And it’s very infectious and it seems to stick around quite a bit. And it puts a lot of stress on public health systems. So I personally anticipate there will be a very long lockdown in a lot of countries. And there will be only a very slow recovery. If you’d ask me we might see some reopening of the travel landscape in summer but I think that will be far diminished from a typical season. We’ll only see a full recovery towards May, June, July 2021. I don’t think it will be earlier than that.”

“It will get worse,” he added. “We know now it’s very likely there will be a lockdown [across the West]. My biggest wish for the next couple of weeks will be that employees continue to be healthy, safe and continue to be able to work and contribute like they’ve done.” 

Omio’s Shaam is expecting at least several months of disruption to business as usual — pointing to the lack of a swift and coordinated response from governments to implement quarantine measures.

“We need a system-wide [response] like China or Singapore has done beautifully to really prevent it and I don’t believe that’s going to happen so we’re bracing for 3-4 months impact,” he told us. 

“I just went out last night in Berlin with my wife for dinner and the restaurants are full, it’s crowded, the subways are full — full! Like not even 20% lower. Completely full. We had to make a reservation to get a table etc. So unless governments, in a very coordinated way, shut down borders for a period of 4-6 weeks so everybody goes into isolation in one go and everybody comes out — it’s going to drip feed for a long time because people are acting in different points of time on their own means.”

On the question of whether there will be a lasting impact on the travel market as the pandemic undoes global supply chains and routines, Shaam said again that’s likely to depend on how co-ordinated or otherwise the response is. 

“There’s a lot of fixed costs part of travel. So I think the answer to that largely depends on how co-ordinated and how quickly we can contain. If we all actually manage to come back in 3-4 months I think we’re in a good place because it’ll bounce back quite strongly. If it’s drip feeding, and it takes the wind out for a very long time, then there will be a different situation but I hope not.”

In the meanwhile, with so many businesses getting au fait with virtual meetings and videoconferencing tools, the coronavirus crisis could also have a long term impact on demand for business travel — if lots of companies realize quite how much can be done remotely.

On this element of the crisis, TravelPerk’s Meir isn’t concerned. 

“It’s an interesting theory,” he said, deferring from hazarding a guess on whether it will come to pass or not. “It doesn’t really matter for us as a company. Because companies spend $1.6TR a year on business travel. And it’s a market that is growing. Before this crisis predicted growth of 6 or 7% in 2020 — which is huge compared to the size of the market. So even if we’re talking about 10-20%, let’s say, at the edges this doesn’t change the picture. You still will have a tonne of business travel when we come back out of it.”

“If we zoom out a bit from this situation — there is a trend for more sustainable approach to travel,” Meir added. “So if so many things can turn into a Zoom call I don’t think it’s a bad idea for the planet. And we will do well. We’re not worried about a scenario like this.”

Here TravelPerk isn’t worried because the startup has another product for that: GreenPerk — a carbon offset offering it launched earlier this month. It’s been developed in partnership with non-profit Atmosfair, which works on decarbonization via UN-endorsed carbon mitigation projects.

“Many companies asked us to help them offset and reduce the impact that their travel generates and we thought that just reporting on what harm you do is not good enough. We wanted actually to make a difference,” said Meir. “One of the projects that we chose is efficient cooking stoves in Rwanda.”

GreenPerk uses an algorithm to calculate the carbon footprint of a given trip and then applies a per booking fee proportional to the pollution created — with the fee going to fund the carbon offset project.

GreenPerk is an opt in product — and Meir says it’s already had “amazing traction”, with more than 50 companies already signed up and using it.

“It’s unfair for us — people who live in very comfortable counties — to ask people in Rwanda to stop cooking their food but if we can help them transition to efficient and also faster ways of cooking then we should definitely do that… so the project funds efficient cooking stoves to replace the polluting ones.”

“If the world after this crisis looks like we are conscious about how we travel — when we do travel we try not to have an impact — and if, sometimes, making Zoom calls are better than face to face I think it’s not a bad scenario for the world. And we as a travel company will adapt like we always have,” he added. “It’s more interesting to look at the long term implication — rather than ‘is it good for our quarter or not’.”

Heartbeat Health raises $8.2M to improve cardiovascular care

While you’ve probably spent a lot of today thinking about the COVID-19 pandemic, it’s worth remembering that other health issues aren’t going away — and that heart disease remains the leading cause of death in the United States.

Heartbeat Health is a startup working to improve the way that cardiovascular care is delivered, and it announced today that it has raised $8.2 million in Series A funding.

Dr. Jeffrey Wessler, the startup’s co-founder and CEO, is a cardiologist himself, and he told me that he “stepped off the academic cardiology path” about three years ago because he “saw some of the work being done in digital health space and became incredibly enamored of doing this for heart health.”

Wessler said that the delivery methods for cardiovascular care remain almost entirely unchanged. To a large extent because that’s because the existing model works, but there’s still room to do better.

“As of the last seven or so years, we’re in a new era where we’ve figured out how to treat people well once they get sick,” he said. “But we’re doing a very bad job of keeping them healthy.”

To address that, Heartbeat Health has created what Wessler described as a “digital first” layer, allowing patients to talk with experts via telemedicine, who can then direct them to the appropriate provider — who might be a “preferred Heartbeat partner” or not — for in-person care.

This initial interaction can help patients avoid “a lot of inefficiencies,” he said, because it ensures they don’t get sent to the wrong place, and “kick[s] things off right with evidence-based, guideline-based testing, so that they’re not just falling into the individual practice habits of random doctors.”

In addition, Heartbeat Health tries to collect all of a patient’s relevant heart data (which might come from wearable consumer devices like an Apple Watch or Fitbit) in one place, and to track results about which treatments are most effective.

“Ultimately, we want to be the software, the technology powering it all, but we don’t want to leave any patient behind at the beginning,” Wessler said.

He added that the program works with most commercial insurance and is already involved in the care of 10,000 New York-area patients. And apparently it’s been embraced by the cardiologists, who Wessler said always tell him, “We’ve been waiting for that layer to come in and unify this incredibly fragmented system, as long as it works with us and not against us.”

The funding was led by .406 Ventures and Optum Ventures, with participation from Kindred Ventures, Lerer Hippeau, Designer Fund and Max Ventures.

Stocks fall again on continued coronavirus worries

Is it good news to say that stocks fell less sharply than they had on previous days?

That’s the bright side of another turbulent trading day across the Nasdaq and New York Stock Exchange. The major indices were down again — although their declines were less severe than they had been during the week.

Investors appeared to shake off positive labor statistics (the U.S. added 273,000 jobs, ahead of expectations), as the expanding number of coronavirus cases in the U.S. and lack of a coordinated response from the Trump Administration took their toll on investor confidence that the impact on the economy would be minimal.

With that said, things could have been worse?

The Dow fell 256.50 points, or just under 1%, to close at 25,864.78, while the S&P stumbled 51.57 points, or 1.7%, to close at 2,972.37 while the Nasdaq slid 1.8%, or 162.98 to close at 8,575.62. The benchmark indices are in the territory of a market correction — hovering at around a 10% loss already on the year.

For startups, it’s important to note that these market pressures can have implications for their businesses. Jittery buyers may be inclined to curb spending and save to conserve cash on their own balance sheets; consumers may rethink priorities and focus on essential purchases as they tighten their own belts.

Sequoia Capital warned in a blog post yesterday that things may change as time rolls along and the global economy stutters.

Here’s their take:

  • Drop in business activity. Some companies have seen their growth rates drop sharply between December and February. Several companies that were on track are now at risk of missing their Q1–2020 plans as the effects of the virus ripple wider.
  • Supply chain disruptions. The unprecedented lockdown in China is directly impacting global supply chains. Hardware, direct-to-consumer, and retailing companies may need to find alternative suppliers. Pure software companies are less exposed to supply chain disruptions, but remain at risk due to cascading economic effects.
  • Curtailment of travel and canceled meetings. Many companies have banned all “non-essential” travel and some have banned all international travel. While travel companies are directly impacted, all companies that depend on in-person meetings to conduct sales, business development, or partnership discussions are being affected.

This isn’t the first time that one of the country’s most successful venture capital firms has warned its portfolio about the possibility of an economic crisis. In the wake of the 2008 financial crisis the firm issued an infamous slide deck warning “RIP Good Times”.

For financial markets the funeral bells are already tolling in the early part of the year. Now, a reckoning may be coming for startups that were on the edge of the bubble.

Grab your ticket: Only one week to TC Sessions: Robotics + AI 2020

It’s T-minus one week to the big day, March 3, when more than 1,000 startuppers will convene in Berkeley, Calif. for TC Sessions: Robotics + AI 2020. We’re talking a hefty cross-section representing big companies and exciting new startups. We’re talking some of the most innovative thinkers, makers, researchers, investors and influencers — all focused on creating the future of these two world-changing technologies.

Don’t miss out on this one-day conference of interviews, panel discussions, Q&As, workshops and demos dedicated to every aspect of robotics and AI. General admission tickets cost $345. Snag your ticket now and save, because prices go up at the door. Want to save even more? Save 15% when you buy four or more tickets. Are you a student? Grab a ticket for just $50.

What do we have planned for this TC Session? Here’s a small sample of the fab programming that awaits you, and be sure to check out the full TC Session agenda here.

  • Q&A with Founders: This is your chance to ask questions of Sébastien Boyer, co-founder and CEO of FarmWise and Noah Ready-Campbell, founder and CEO of Built Robotics — some of the most successful robotics founders on our stage.
  • Disney Robotics: Imagineers from Disney will present state-of-the-art robotics built to populate its theme parks.
  • Investing in Robotics and AI: Lessons from the Industry’s VCs: Dror Berman, founding partner at Innovation Endeavors, Jocelyn Goldfein, managing director at Zetta Venture Partners and Eric Migicovsky, general partner at Y Combinator will discuss the rising tide of venture capital funding in robotics and AI. The investors bring a combination of early-stage investing and corporate venture capital expertise, sharing a fondness for the wild world of robotics and AI investing.

And — new this year — don’t miss watching the finalists from our Pitch Night competition. Founders of these early-stage companies, hand-picked by TechCrunch editors, will take the stage and have just five minutes to present their wares.

With just one more week until TC Sessions: Robotics + AI 2020 kicks off, you don’t have much time left to save on tickets. Why pay more at the door? Buy your ticket now and join the best and brightest for a full day dedicated to all things robotics.

Startups Weekly: What the E-Trade deal says about Robinhood

[Editor’s note: Want to get this weekly review of news that startups can use by email? Just subscribe here.] 

How well do Robinhood’s financials stack up against incumbent online brokerages? While we wait for the seven-year-old company’s long-planned IPO, Alex Wilhelm examined Morgan Stanley’s big $13 billion purchase of E-Trade for fresh data comparison points. Robinhood has 10 million accounts — twice what E-Trade has — but it also appears to make much less money per user and has far fewer assets under management, as he covered for Extra Crunch. So while its fee-free approach has destroyed a key revenue stream for competitors, it still has to grow its own “order-flow” business into its private-market valuation.

One solution is to make the platform stickier via social features. On the same day as the E-Trade deal announcement, Robinhood launched a new Profiles feature to encourage users to share stock tips. Josh Constine explored the offering and where it is headed on TechCrunch, concluding that “Profiles and lists, and then eventually more social features, could get Robinhood’s users trading more so there’s more order flow to sell and more reason for them to buy subscriptions.”

Alex also took a look at a new report on fintech funding, which found last year was a peak overall — but skewed towards later-stage companies. Certainly, the wealth management segment is looking mature.

But the category is massive, with many more incumbents left to disrupt. What are fintech investors looking for? Check out our popular investor survey on this topic from November.

How your startup can use TikTok for growth

You know that TikTok is where the cool kids are these days, but maybe… how do I say… it is not the social media platform you know best when it comes to growth. So Geneviève Patterson and Hannah Donovan, founders of TikTok-oriented video editing app TRASH, have published a two-part guide to help you figure it out.
The first part, freely available on TechCrunch, walks you through how to increase your authority ranking in the TikTok algorithm, its review process, and pointers for making your own content. The second part, for Extra Crunch subscribers, goes deep on how TikTok decides whose content gets featured more (and less).

Fifth Wall’s Brendan Wallace: the proptech sector is hot despite WeWork

“Our mandate is any technology that can be strategic to the real estate industry,” the prolific investor told Connie Loizos in an extended interview for Extra Crunch this week. While WeWork may have depressed some investor interest, plenty of models are working great across various segments — so he and his partners are raising more funds. One of the hottest sectors, perhaps surprisingly, is in sustainable buildings. As Wallace details, public pressure, large-tenant pressure, large-investor pressure and new metro requirements have removed any choice that the industry has in the matter:

Make no mistake; we are front-and-center to what is happening in the real estate industry and the collision with technology, and this is the single-most-important thing that has happened to the real estate industry in the last five decades. The real estate industry is going to have to go carbon-neutral and that is brand-new.

Is this sector also your focus? Be sure to check out our survey of investors in construction robotics from last week to find out some of the latest opportunities, plus our overview survey of real estate and prop tech investors from November.

The future of manufacturing and warehouse robotics

Ahead of our big robotics conference at UC Berkeley in early March, we have been producing a whole series of surveys on robotics verticals. This week, our resident financial analyst Arman Tabatabai teamed up with our hardware editor turned conference organizer, Brian Heater, to do a series of interviews with VCs who are focused on warehouse and manufacturing robotics. Investors include:

Read more here.

Tell TechCrunch about gaming startups and remote work

Our media columnist Eric Peckham wants to feature your advice in two upcoming articles. If you have relevant expertise, click the links below and share your opinions.

Across the week

Do AI startups have worse economics than SaaS shops? (EC)

Elon Musk says all advanced AI development should be regulated, including at Tesla (TC)

SpaceX alumni are helping build LA’s startup ecosystem (EC)

Dear Sophie: I need the latest details on the new H-1B registration process (TC)

Tracking China’s astounding venture capital slowdown (EC)

The rise of the winged pink unicorn (TC)

Voodoo Games thrives by upending conventional product design (EC)

Ex-YC partner Daniel Gross rethinks the accelerator (TC)

How companies are working around Apple’s ban on vaping apps (EC)

Rippling starts billboard battle with Gusto (TC)


This week was a fun combination of early-stage and late-stage news, with companies as young as seed stage and as old as PE-worthy joining our list of topics.

Danny and Alex were back on hand to chat once again. Just in case you missed it, they had some fun talking Tesla yesterday, and there are new Equity videos on YouTube. Enjoy!

This week the team argued about org-chart companies, debt raises, some of the items mentioned above, and much more. Details here.

Peru’s startup scene is ready for more

Funding of Latin American startups has doubled each year over the past two years.

And while most of this capital has been directed toward Brazil and Mexico, this surge is starting to have an effect on startups in the region’s smaller markets. The increased availability of capital for later rounds is creating more opportunities for startups to scale both regionally and globally. And while it may not be one of the largest countries in Latin America, Peru continues to have one of the best-performing economies and fastest-growing startup scenes.

In 2019, a new record was set for the amount of capital invested into Peruvian startups, at least $11 million, a 24% increase compared to 2018. Most of the money went to fintech (47%) and edtech (37%) startups. Over the past four years, more than $22.7 million in public funds went toward startup-related projects as well.

The government-backed program Innóvate Perú awarded approximately $13.8 million of its total investments almost exclusively to startups. Total venture capital investment will likely exceed US$25 million in 2020, doubling what was achieved in 2019, and will continue to grow from there.

In 2019, Peru’s development bank, COFIDE, announced a new fund of funds to invest in venture capital firms, mirroring similar entities such as Chile’s CORFO, Colombia’s Bancoldex and Mexico’s NAFIN. While there are plenty of opportunities to secure seed-stage capital in Peru, many startups still have to look abroad for growth capital. Keynua, Xertica, Turismoi and Runa are just a few of the Peruvian startups that sought international investors to lead their rounds over $1 million. Following in the path of similar funds, the fund of funds will invest $20 million in half a dozen venture capital firms, which would in turn invest in approximately 120 startups.

As government support for entrepreneurs continues to pour in, the Peruvian startup ecosystem is entering a new phase. More and more startups are launching, graduating from accelerator programs and seeking ways to reach their next milestone. Local early-stage investors are stepping in to fill the financing gap and have teamed up to form the Peruvian Seed and Venture Capital Association, PECAP, to share investment opportunities and lay a strong foundation for venture capital in Peru. Here’s a look at just a few of the opportunities for more venture capital to step in.

Fueling Peru’s growing fintech sector

A massive fintech boom is playing out across Latin America, with the size of the industry expected to exceed $150 billion by 2021. Peru is home to an estimated 120 fintech startups actively tackling the issues of financial inclusion and better servicing the region’s small and medium-sized businesses. Peru’s economy is still largely informal, with approximately 14 million people underbanked. In 2017, María Laura Cuya started Peru’s Fintech Association to work alongside regulators, academics and other organizations to improve financial literacy and access to financial products, with a focus on Peruvian SMEs.

A few of Peru’s fintech sectors stand out, including factoring and foreign exchange, where a number of startups are quickly gaining traction and already branching out to neighboring markets. Innova Funding, Innova Factoring, Facturedo, Kambista and Rextie are just a few examples. Peru’s membership in the Pacific Alliance also makes it an attractive initial market prior to launching in other Pacific Alliance countries.

In 2019, Peruvian fintechs Keynua and Apurata were selected for the Y Combinator accelerator program, putting them on the international radar. Traditional banks in Peru are also shifting their mindsets and warming up to fintech partnerships. The publicly traded Peruvian bank, Credicorp, for example, recently set up a corporate venture fund called Krealo. The bank made its first investments in Culqi, a local payments gateway, and Independencia, a lending platform.

Impact investing opportunities

Latin America is a top destination for impact investment capital, outpacing many other regions in the world, with a 15% compound annual growth rate over the last five years, according to the Global Impact Investing Network. Edtech represents a rising entry point across the region for impact investors thanks to its potential for both financial and non-financial returns.

According to an OECD report, approximately 30 million young people in Latin America are not participating in any form of education, training or employment, and 76% of this total are women. Laboratoria, co-founded by edtech thought leader Mariana Costa Checa, helps women develop technical skills and has expanded across the region from its headquarters in Lima to train more than 1,000 women so far. The startup has received praise from global companies, including Walmart and Facebook. In 2019, the skills development platform Crehana raised the largest-ever round for a Peruvian startup ($4.5 million) from both regional and global funds.

Peru attracted more impact investment capital than Mexico, a longtime leader in the region, for the first time in 2018. Much of this investment is focused on improving Peru’s education system. Local startups are addressing everything from early childhood education to workforce training, and as more success stories emerge, more resources will be needed to fully tap into Latin America’s large markets for these solutions.

Supporting long-term startup growth

The government-backed program Innóvate Perú has financed more than 3,400 entrepreneurial projects to date, and more than 25 private institutions are now accelerating, incubating and investing in Peruvian startups. New startup creation is at its highest rate ever; however, these companies are outgrowing their angel and seed-stage supporters and are now seeking ways to take their ventures to the next level.

Over the past few years, Latin America has proven that it is a place where startups can scale and succeed. Now, with more startups coming out of the region’s smaller, underserved markets, like Peru, there is an opportunity to deploy capital effectively and bring impactful solutions to millions of people across the region.

*Angel Ventures was an investor in Culqi before it was sold to BCP. Neither Angel Ventures nor Greg Mitchell currently hold any shares.