Category Archives: Recent Funding

Postmates lines up another $100M ahead of IPO

Postmates, one of the earlier entrants to the billion-dollar food delivery wars, has raised an additional $100 million in equity funding at a $1.85 billion valuation, as first reported by Recode and confirmed to TechCrunch by Postmates. The round comes four months after the eight-year-old startup drove home a $300 million investment that finally knocked it into “unicorn” territory.

New investor BlackRock has joined the funding round alongside Tiger Global, which served as the lead investor of Postmates’ September financing. Led by co-founder and chief executive officer Bastian Lehmann, the company has garnered a total of $681 million in venture capital funding from investors, including Spark Capital, Founders Fund, Uncork Capital and Slow Ventures.

In line with several other tech unicorns, Postmates has begun prep for an initial public offering that could come this year, including tapping JPMorgan to advise the float. As Recode pointed out, the $100 million capital infusion was probably less of a necessary funding event but rather an opportunity for existing investors to liquidate stock ahead of an exit.

Postmates, which completes 3.5 million deliveries per month, reportedly expected to record $400 million in revenue in 2018 on food sales of $1.2 billion. The company has not confirmed that figure nor disclosed any other 2018 revenue numbers. The company currently operates in more than 500 cities, recently tacking on another 100 markets to reach an additional 50 million customers.

It will be interesting to see how Wall Street responds to a Postmates public listing. Though it was an early player in what has become an extremely crowded market, Postmates never emerged as the leader in food delivery. Now, with supergiants like Uber dominating via Uber Eats and SoftBank funneling loads of capital into Postmates competitor DoorDash, it shouldn’t count on an oversubscribed IPO.

Devo scores $25 million and cool new name

Logtrust is now known as Devo in one of the cooler name changes I’ve seen in a long time. Whether they intended to pay homage to the late 70s band is not clear, but investors probably didn’t care, as they gave the data operations startup a bushel of money today.

The company now known as Devo announced a $25 million Series C round led by Insight Venture Partners with participation from Kibo Ventures. Today’s investment brings the total raised to $71 million.

The company changed its name because it was about much more than logs, according to CEO Walter Scott. It offers a cloud service that allows customers to stream massive amounts of data — think terabytes or even petabytes — relieving the need to worry about all of the scaling and hardware requirements processing this amount of data would require. That could be from logs from web servers, security data from firewalls or transactions taking place on backend systems, as some examples.

The data can live on prem if required, but the processing always gets done in the cloud to provide for the scaling needs. Scott says this is about giving companies this ability to process and understand massive amounts of data that previously was only in reach of web scale companies like Google, Facebook or Amazon.

But it involves more than simply collecting the data. “It’s the combination of us being able to collect all of that data together with running analytics on top of it all in a unified platform, then allowing a very broad spectrum of the business [to make use of it],” Scott explained.

Devo dashboard. Photo: Devo

Devo sees Sumo Logic, Elastic and Splunk as its primary competitors in this space, but like many startups they often battle companies trying to build their own systems as well, a difficult approach for any company to take when you are dealing with this amount of data.

The company, which was founded in Spain is now based in Cambridge, Massachusetts, and has close to 100 employees. Scott says he has the budget to double that by the end of the year, although he’s not sure they will be able to hire that many people that rapidly

Virtru secures $37 million Series B led by Iconiq

Virtru, the security startup that came out of research at the NSA, announced a $37 million Series B financing round today led by Iconiq Capital.

The company also announced the formation of Virtru Labs, an entity to be led by company co-founder and CTO Will Ackerly. The Lab will act as an innovation engine for the company, while trying to make Virtru’s underlying technology, Trusted Data Format (TDF), an industry standard for exchanging data securely in a similar manner that PDF developed into a standard way of exchanging documents.

CEO and co-founder John Ackerly (and brother of Will) says this has been a goal since the earliest days of the company and starting the lab is one of the reasons they wanted to raise this round. “My brother and I firmly believe you need an open framework in order to achieve the vision of true default security,” he told TechCrunch.

They believe by investing time and dollars to get third parties to adopt the TDF and adopting all tiers of this data format, it could remove the friction we have today when data is being shared across systems, while eliminating vendor lock-in.

The company currently offers tools for end-to-end email encryption in G-Suite and Office 365, but they hope to expand to file sync and share applications and chat. They also want to promote technical partnerships through the SDK they launched earlier this year. Finally, they want to expand globally by growing a channel partner system.

Ackerly says all of that takes money and that’s why they went looking for this round. It didn’t hurt that the company has experienced explosive growth over the last year adding 3000 new customers for a total of over 8000 using their products, while tripling revenue (they did not provide an exact figure).

Ackerly says one of the reasons for this growth is an increasing desire on the part of users to have a trust mechanism for sharing information online. “If you look at our partnership with Google, with Microsoft, with Amazon; these are all platform companies that are coming to grips with this privacy imperative. We are in a crisis of trust as a society and Virtru has always taken the approach of partnering closely because these workflows matter to end users,” he said. He adds that this really wouldn’t work if the company tried to create a new set of tools.

Vitru has around 80 employees today and Ackerly expects that to grow by around 50 percent over the coming year as they move into new markets, grow the lab and expand channel and partner support.

The round was led by Iconiq Capital with participation from returning investors Bessemer Venture Partners, New Enterprise Associates, Samsung, Blue Delta Capital, and Soros Capital. Today’s round brings the total raised to over $76 million since the company was founded in 2011.