Tech Weekly Newsletter: July 17, 2016

Last week, today

  • 7/7 – Coupa Software* has hired an investment for an IPO later this year according to people familiar with the matter (Reuters)
  • 7/8 – HP Enterprise is reportedly considering selling some of its software assets as it looks to slide down its operations. These potential divestitures would include former acquisitions like Autonomy, Mercury Interactive and Vertica (Bloomberg)
  • 7/8 – IDC released a report on public and private cloud infrastructure spending and estimates that it will increase more than 15% this year to get to $37.1B (Information Week)
  • 7/8 – VMware has named Mike Wookey, former CTO at Sun Microsystems + VP at Oracle, as CTO of its cloud management business (Fortune)
  • 7/10 – This week in Theranos, amid the business falling apart and being banned from owning or running lab, according the WSJ, Elizabeth Holmes covered negative news internally and tried to it in a more positive light (WSJ $)
  • 7/11 – Facebook is being sued for $1B for allegedly allowing the militant group, Hamas, to use the platform to kill four Americans and wound one in Israel (Bloomberg)
  • 7/11 – Pokemon Go added $7.5B to Nintendo’s market cap over two days (Fortune) and the revenue growth is “unprecedented” according to a Japanese gaming analyst (VentureBeat). Re/Code has the story of why the Company spun off from Google (Re/Code)
  • 7/11 – Not truly tech, but interesting nonetheless, the UFC has sold itself to Silver Lake, KKR and Michael Dell’s investment firm for $4B (NYT)
  • 7/11 – One research analyst at SunTrust is speculating that there’s a chance that the Yahoo sale process will not go through at all if bidders do not meet a $10B price (Business Insider)
  • 7/11 – CEO of Dropbox, Drew Houston, indicates that the platform is close to 200,000 paying business users (Fortune). He also threw shade at Box when asked by Dan Primack to name one thing that Dropbox had done before Box – Houston replied “generate cash” (Business Insider). Aaron Levie fired back saying, “I recall Blockbuster was cash flow positive before Netflix” (Business Insider)
  • 7/11 – In a tough two weeks for Tesla, the SEC is now investigating whether the Company breached securities laws by failing to disclose to investors a fatal crash in May as a material event (WSJ)
  • 7/11 – GoPro shares jumped 13% on the news of the Company potentially releasing its long-awaited (/delayed) drone camera, Karma (Fortune)
  • 7/11 – Xerox was in talks to acquire RR Donnelley, and merge some of its copier, printer and related-services businesses with the Company founded in 1864. RRD stock jumped 12% on the news (Bloomberg), but the deal was apparently rejected (WSJ $)
  • 7/11 – Surprisingly, Congress is (actually, potentially, maybe, possibly) doing something beneficial for start-ups and their employees by introducing a bill that would let employees defer tax payments on unrealized stock gains for up to seven years (The Information $       )
  • 7/11 – Twitter is going long on live content and will livestream the Democratic and Republican convention (Re/Code)
  • 7/11 – PCs have declined again, but less than recent quarters and less than projected (4.5% vs. expected 7.4%) (WSJ $)
  • 7/11 – Imperva is said to be working with Qatalyst on a sale after receiving unsolicited interest and Elliott Management taking a 9.8% stake in the business. The Company also lowered its revenue estimates for the second straight quarter and projected a wider loss. The shares fell 10% on the news after gaining 7.6% on the news of Qatalyst’s involvement (Bloomberg)
  • 7/11 – Lyft and GM are expanding their car rental partnership to include additional cities (TechCrunch)
  • 7/11 – Evernote has a new CTO and its former GoDaddy and Yahoo executive, Anirban Kundu (VentureBeat)
  • 7/11 – eBay announced that it will acquire predictive analytics startup, SalesPredict, which had raised $5.1M from Yandex, Pitango, KGC Capital among others (VentureBeat)
  • 7/11 – Mobile events company, DoubleDutch, is laying off nearly 25% of its workforce (55 people), after raising $45M from KKR a little over a year ago (TechCrunch)
  • 7/12 – Facebook has signed a deal to use Microsoft’s Office 365 for email and calendar with its 13,000 employees. The Company previously used the on-premise versions (WSJ)
  • 7/12 – Vine isn’t growing, most of its top executives have left in the last few months and Twitter is executing on the acquisition fairly poorly according to Re/Code (Re/Code)
  • 7/12 – NetSuite traded up 13% on news that Oracle might buy out the rest of the Company (it currently owns 40%) (Bidness)
  • 7/12 – Polaris Partners is looking to raise $400M for its eight fund according to an SEC filing (WSJ $)
  • 7/12 – SoFi is considering becoming a traditional bank and offering credit cards and deposit accounts (+ requisite regulatory approval for a state banking charter in Utah) amid an overall struggle in the sector, growing concerns in consumer loan defaults and shifting preferences among debt investors (WSJ $)
  • 7/12 – Magic Leap CEO Rony Abovitz said that the product is “very real” and that it will launch its product “hopefully soonish” (TechCrunch)
  • 7/12 – All is not well at Hyerloop One and that’s even outside of the fact that they had a co-founder named Brogan BamBrogan (Fortune)
  • 7/12 – A report by TurboPatent on Yahoo’s patents indicates that 44% of the thousands of patents have “high severity” issues and nearly all of the patents have deficiencies that could invalidate them (Fortune)
  • 7/13 – Google and YouTube are fighting back against claims by music labels + artists that they aren’t paying enough, pointing to the fact that they paid out $1B last year to content owners (Re/Code)
  • 7/13 – The Information did a detailed analysis into which high profile start-ups gave the most investor friendly terms and which gave the most common shareholder friendly terms. The most common friendly companies in their analysis were Snapchat, Uber, Glassdoor*, Oscar, Palantir, Gusto, Airbnb, Compass, Tanium, GitHub, Palantir, Casper and Dropbox. The most investor friendly companies in their analysis were Adaptive Insights, Mirantis, SevOne, Kabbage and Alteryx (The Information $)
  • 7/13 – Intel’s McAfee business unit is drawing interest from private equity firms including Thoma Bravo, Permira, and Vista Equity (Bloomberg)
  • 7/14 – Line, the Japanese messaging app, debuted on the NYSE and the Tokyo stock exchange and traded up 27% making the Company worth ~$9B (Re/Code)
  • 7/14 – Amazon (AWS) has acquired Cloud9, a start-up focused on integrated development environments (IDE) for web and mobile developers to collaborate together (TechCrunch)
  • 7/14 – DCM has raised its eighth early stage fund, DCM VIII, a $500M fund (TechCrunch)
  • 7/14 – Microsoft won a ruling from the federal appeals court that said it cannot be forced to turn over customer emails stored on servers outside the U.S. to the government (Fortune)
  • 7/14 – A long list of technology executives (including Stewart Butterfield of Slack, Barry Diller of IAC, David Karp of Tumblr, Jeff Lawson of Twilio, Vinod Khosla of Khosla Ventures, Pierre Omidyar of eBay, Jeremy Stoppelman of Yelp) have written an open letter on Medium that calls Trump a “disaster for innovation” (Fortune). Here is the letter (Medium)
  • 7/14 – Facebook is already distancing itself from Peter Thiel’s GOP Convention speech (Fortune)
  • 7/14 – GSV, a Chicago-based merchant bank, has filed with the SEC for a new $250M venture fund (SEC)
  • 7/14 – Atlassian has acquired StatusPage, a service that allows businesses to notify users of the status of their online applications (TechCrunch)
  • 7/14 – T-Mobile is providing free data to customers that are playing Pokemon Go (Business Insider)
  • 7/14 – Facebook said that it only made meager progress in improving the number of women and minorities within the Company, unsatisfyingly blaming the problem on a weak hiring pipeline (WSJ)
  • 7/15 – Final bids for Yahoo are due on Monday (NYT) and then I hope we never hear about the Company again
  • 7/15 – WeWork cut forecasts earlier this year and told employees that it was going to change “its spending culture.” The start-up lowered its profit forecast by 78%, its revenue estimate by 14% and disclosed a 63% surge in negative cash flow.  The Company expects to finish the year at a $882M revenue run-rate and $385M in negative free cash flow. Buildings for the Company that are open at least 6 months apparently have 33% EBITDA margins (Bloomberg). Meanwhile, WeWork CEO, Adam Neumann, said that he is not scared of going public and plans to be at $1B in revenue next year (Fortune)
  • 7/15 – Sales start-up, Immediately (which had raised $2M from investors including Streamlined Ventures), is shutting down and a few of its core product team members are joining New Relic (TechCrunch)

Earnings

  • 7/11 – As mentioned above, Imperva lowered its revenue estimates for the second straight quarter and projected a wider loss. The shares fell 10% on the news after gaining 7.6% on the news of Qatalyst’s involvement for a potential sell-side (Bloomberg)

Financings

  • 7/14 – Unity Technologies, a San Francisco-based software platform for mobile game developers, has raised $181 million in Series C funding at around a $1.5 billion post-money valuation. DFJ Growth led the round
  • 7/14 – Endotronix, a Woodridge, Ill.-based provider of reimbursable health management tools for patients suffering from advanced heart failure, has raised $32 million in Series C funding. Backers include   BioVentures Investors, SV Life Sciences, Lumira Capital, Aperture Venture Partners and OSF Ventures
  • 7/12 – Codecademy, a New York-based skills education company, has raised $30 million in Series C funding. Naspers Ventures led the round
  • 7/11 – CornerJob, a Barcelona-based mobile jobs marketplace, has raised $25 million in Series B funding. Northzone led the round, and was joined by e.ventures
  • 7/13 – True Fit, a Woburn, Mass.-based retail SaaS startup that provides an online discovery engine for consumers to find better-fitting clothes, has raised $25 million in new VC funding. Intel Capital led the round
  • 7/14 – Bay Dynamics, a San Francisco-based provider of cyber risk analytics, has raised $23 million in Series B funding. Carrick Capital Partners led the round
  • 7/12 – Freshly, a New York-based healthy meal delivery service, has raised $21 million in Series A funding. Insight Venture Partners led the round, and was joined by return backers Highland Capital Partners and White Star Capital
  • 7/13 – Redkix, a new collaboration startup that merges chat with email, has raised $17 million in seed funding from Salesforce Ventures, Wicklow Capital, SG VC and individual angels
  • 7/14 – Docent Health, a Boston-based healthcare experience platform, has raised $15 million in Series A funding from Bessemer Venture Partners, NEA and Maverick Ventures
  • 7/11 – 3scan, a San Francisco-based computational pathology platform company, has raised $14 million in Series B funding. Lux Capital and Data Collective co-led the round
  • 7/14 – Caremerge, a Chicago-based post-acute care coordination platform, has raised $14 million in new VC funding. Insight Venture Partners led the round
  • 7/12 – Data.world, an Austin, Texas-based data collaboration startup, has raised $14 million in Series A funding. Shasta Ventures led the round
  • 7/14 – Indegy, an Israeli provider of industrial cybersecurity solutions, has raised $12 million in Series A funding. Vertex Ventures led the round
  • 7/15 – Grow, a Provo, Utah-based business data analytics platform, has raised $11 million led by Toba Capital
  • 7/12 – Avizia, a Reston, Va.-based telehealth provider, has raised $11 million in Series A funding. Blue Heron Capital led the round
  • 7/12 – Universal Avenue, a Stockholm-based local salesforce on-demand startup, has raised $10 million in new Series A funding (bringing the round total to $15m). Eight Roads led the round
  • 7/13 – Flashpoint, a New York-based cybersecurity startup focused on the deep and dark web, has raised $10 million in Series B funding. Greycroft Partners led the round
  • 7/15 – CyberGRX, a Denver-based cyber risk management platform, has raised $9 million in Series A funding. Allegis Capital led the round
  • 7/15 – Amplero, a Seattle-based predictive customer lifetime value management platform, has raised $8 million in Series A funding. Wildcat Venture Partners led the round
  • 7/14 – Appthority, a San Francisco-based provider of enterprise mobile threat protection solutions, has raised $7 million in Series B funding. Trident Capital Cybersecurity led the round
  • 7/14 –  Snupps, a London-based visual organizer and social network, has raised $4.75 million in new VC funding from individual angels and family trusts
  • 7/13 – PostBeyond, a Toronto-based employee advocacy solution, has raised C$4 million in Series A funding co-led by Information Venture Partners and Export Development Canada
  • 7/15 –  Findo, a Menlo Park, Calif.-based smart search assistant, has raised $3 million in new seed funding from Flint Capital
  • 7/14 –  FiveAI, a London-based artificial intelligence startup, has raised $2.7 million in new VC funding. Amadeus Capital Partners led the round
  • 7/15 –  Freightera, a Vancouver-based online freight marketplace, has raised C$2.1 million in new VC funding from Robson Capital, Ted Snider Financial and individual angels in California
  • 7/15 –  GameOn, a San Francisco-based mobile engagement platform for sports fans, has raised $2 million in new seed funding from Quest Venture Partners, XG Ventures, Next News Ventures the DeBartolo family, Joe Montana and Snoop Dogg
  • 7/15 –  Zenrez, a San Francisco-based platform for last-minute fitness class bookings, has raised $2 million in VC funding from Artis Ventures, Summit Action Fund and Precursor Ventures

Random, long reads
Angels in America: The Complete Oral History (Slate) – Before there was Hamilton, there was Angels in America, which took Broadway by storm close to 25 years ago and HBO subsequently made a mini-series on it.  The story is a fantastical one, that brought the AIDS plight for the gay community to light in the mainstream for the first time. The Slate goes back and interviews all the major players involved about how this massive undertaking came to be. If you’ve never seen the HBO min-series, it’s well, well worth your time and available on-demand.

How Technology Disrupted the Truth (The Guardian) – The Guardian goes in-depth to figure out how we ended up in the news environment that we’re in today, where stories move so quickly and facts are seldom checked. The advent of social media has changed so many things in the world for the better, but there is the underlying issue of news and more importantly, factual accuracy, that is often being thrown out the window. As headlines and sensationalism generate clicks and, therefore, money, we’re being put in an awkward position where the onus for factual accuracy is being passed around like a hot potato.  An interesting and insightful piece by the Guardian.

The Refrigerator’s Stubborn Spiral (Sports Illustrated) – The tragic story of one of the most likeable and recognizable NFL defensive linemen of all-time, William “The Refrigerator” Perry, and his fall from the top after his football career ended.  One of the main stars of the 1985 Super Bowl winning Chicago Bears team, the Fridge, a man said to not have a single mean bone in his body, is now in bad shape after years of not appropriately caring for himself and seems to be in a position where there isn’t anyone around him truly looking out for his interest.

*Battery portfolio company. For a list of all Battery portfolio companies, please click here.