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In latest JEDI contract drama, AWS files motion to stop work on project

When the Department of Defense finally made a decision in October on the decade-long, $10 billion JEDI cloud contract, it seemed that Microsoft had won. But nothing has been simple about this deal from the earliest days, so it shouldn’t come as a surprise that last night Amazon filed a motion to stop work on the project until the court decides on its protest of the DoD’s decision.

The company announced on November 22nd that it had filed suit in the U.S. Court of Federal Claims protesting the DoD’s decision to select Microsoft. Last night’s motion is an extension of that move to put the project on hold until the court decides on the merits of the case.

Sources tell us that AWS decided not protest the start of initial JEDI activities at the time of the court filing in November as an accommodation made at DoD’s request. DoD declined to comment on that.

As for why they are doing it now, an Amazon spokesperson had this to say in a statement last night: “It is common practice to stay contract performance while a protest is pending and it’s important that the numerous evaluation errors and blatant political interference that impacted the JEDI award decision be reviewed. AWS is absolutely committed to supporting the DoD’s modernization efforts and to an expeditious legal process that resolves this matter as quickly as possible.”

As we previously reported, the statement echoes sentiments AWS CEO Andy Jassy made at a press event during AWS re:Invent in December:

“I would say is that it’s fairly obvious that we feel pretty strongly that it was not adjudicated fairly,” he said. He added, “I think that we ended up with a situation where there was political interference. When you have a sitting president, who has shared openly his disdain for a company, and the leader of that company, it makes it really difficult for government agencies, including the DoD, to make objective decisions without fear of reprisal.”

This is just the latest turn in a contract procurement process for the ages. It will now be up to the court to decide if the project should stop or not, and beyond that if the decision process was carried out fairly.

As SaaS stocks set new records, Atlassian’s earnings show there’s still room to grow

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

SaaS stocks had a good run in late 2019. TechCrunch covered their ascent, a recovery from early-year doldrums and a summer slowdown. In 2020 so far, SaaS and cloud stocks have surged to all-time highs. The latest records are only a hair higher than what the same companies saw in July of last year, but they represent a return to form all the same.

Given that public SaaS companies have now managed to crest their prior highs and have been rewarded for doing so with several days of flat trading, you might think that there isn’t much room left for them to rise. Not so, at least according to Atlassian . The well-known software company reported earnings after-hours yesterday and the market quickly pushed its shares up by more than 10%.

Why? It’s worth understanding, because if we know why Atlassian is suddenly worth lots more, we’ll better grok what investors — public and private — are hunting for in SaaS companies and how much more room they may have to rise.

Xerox wants to replace HP board that rejected takeover bid

In Xerox’s latest effort to get HP to bend to its will and combine the two companies, it announced its intent today to try to replace the entire HP board of directors at the company’s stockholder’s meeting in April. That would be the same board that unanimously rejected Xerox’s takeover bid.

Xerox and HP have been playing a highly public game of tit for tat in recent months. Xerox wants very much to combine with HP, and offered $34 billion, an offer HP summarily rejected at the end of last year. Xerox threatened to take it to shareholders.

Now it wants to take over the board, announcing today that it had nominated 11 people to replace the current slate of directors.

As you might imagine, HP was none too pleased with this latest move by Xerox. “We believe these nominations are a self-serving tactic by Xerox to advance its proposal, that significantly undervalues HP and creates meaningful risk to the detriment of HP shareholders,” HP fired back in a statement today emailed to TechCrunch.

It went on to blame Xerox shareholder Carl Icahn for the continued pressure. “We believe that Xerox’s proposal and nominations are being driven by Carl Icahn, and his large ownership position in Xerox means that his interests are not aligned with those of other HP shareholders. Due to Mr. Icahn’s ownership position, he would disproportionately benefit from an acquisition of HP by Xerox at a price that undervalues HP,” the company stated.

The two companies exchanged increasingly harsh letters in November as Xerox signaled its intent to take over the much larger HP. HP questioned Xerox’s ability to raise the money, but earlier this month it announced had in fact raised the $24 billion it would need to buy the company. HP was still not convinced.

Today’s exchange is just the latest between the two companies in an increasingly hostile bid by Xerox to combine the two companies.

Crisp, the demand forecast platform for the food industry, goes live

The food industry may be the biggest industry in the world, but it’s also one of the least efficient. BCG says 1.6 billions tons of food, worth $1.2 trillion, is wasted in food every year and those numbers are only expected to go up.

A number of players have stepped up to try and solve their own portion of the problem, and one such solution is Crisp. The company, which received $14 million in Series A funding last year led by FirstMark Capital, is today going live with its platform (which has been in beta).

Crisp aims to solve the global food waste problem via demand forecasts. Founder and CEO Are Traasdahl, a serial founder, believes that a lack of communication and data flow between the many players in the supply chain is a main cause for all this waste, a great deal of which happens long before the food reaches the consumer.

Right now, forecasting demand is no where close to a perfect science for many of these players. From food brands to distributors to grocery stores, the problem is usually solved by looking at a spreadsheet from last year’s sales for hours to try to determine the signals that played into this or that SKU’s sales performance.

And then there was Crisp.

Integrated with almost any ERP software a company might have, Crisp ingests historical data from these food brands and combines that data with signals around other demand drivers, such as seasonality, holidays, price sensitivity and other pricing information, marketing campaigns, competitive landscape, weather that might affect the sale or shipment of certain produce or other ingredients.

Using these data points, and historical sales data, Crisp believes it can give a much more accurate picture of demand over the next day, week, month or year.

But Crisp isn’t just for food brands, such as Nounós Creamery, a Crisp customer that says its reduced scrapped inventory by 80 percent since switching to the platform. Crisp serves almost every player in the food supply chain, from retailers to distributors to brands to brokers.

And the more customers it gets, the better it is at predicting demand on a very specific level. For instance, the demand forecasting Crisp offers for a particular grocery store, based on external data, will obviously get much better once that grocery store is a customer on the platform.

Traasdahl was initially concerned that his customers would be reluctant to hand over this type of sensitive sales data, and also that players within the industry might be anxious to hand over such data to a platform that’s aggregating everyone’s data, including their competitors. Turns out, the food industry has more of a “better together” mentality.

“Other industries are not as dependent on each other,” said Traasdahl. “If I am a creamery and need to buy blueberries for my yogurt, I may have five different vendors for those blueberries. And if they don’t get delivered on the right day, Costco will yell at me for being late with the yogurt. Everyone in the supply chain is somewhat dependent on each other.”

For that reason, it’s been easier to attract clients to the platform than expected. The prospect of a collaborative demand forecast platform, that’s pulling signals from across the entire industry, is going to be more accurate than siloed demand forecasts produced by a single vendor or brand.

During the beta program, which launched in October, Crisp brought on more than 30 companies to the platform, including Gilbert’s Craft Sausages, SunFed Perfect Produce, Nounós Creamery, Hofseth, REMA and Superior Farms.

TriggerMesh scores $3M seed from Index and Crane to help enterprises embrace ‘serverless’

TriggerMesh, a startup building on top of the open-source Kubernetes software to help enterprises go “serverless” across apps running in the cloud and traditional data centers, has raised $3 million in seed funding.

The round is led by Index Ventures and Crane Venture Partners. TriggerMesh says the investment will be used to scale the company and grow its development team in order to offer what it bills as the industry’s first “cloud native integration platform for the serverless era.”

Founded by two prominent names in the open-source community — Sebastien Goasguen (CEO) and Mark Hinkle (CMO), based in Geneva and North Carolina, respectively — TriggerMesh’s platform will enable organizations to build enterprise-grade applications that span multiple cloud and data center environments, therefore helping to address what the startup says is a growing pain point as serverless architectures become more prevalent.

TriggerMesh’s platform and serverless cloud bus is said to facilitate “application flow orchestration” to consume events from any data center application or cloud event source and trigger serverless functions.

“As cloud-native applications use a greater number of serverless offerings in the cloud, TriggerMesh provides a declarative API and a set of tools to define event flows and functions that compose modern applications,” explains the company.

One feature TriggerMesh is specifically talking up and very relevant to legacy enterprises is its integration functionality with on-premise software. Via its wares, it says it is easy to connect SaaS, serverless cloud offerings and on-premises applications to provide scalable cloud-native applications at a low cost and quickly.

“There are huge numbers of disconnected applications that are unable to fully benefit from cloud computing and increased network connectivity,” noted Scott Sage, co-founder and partner at Crane Venture Partners, in a statement. “Most companies have some combination of cloud and on-premises applications and with more applications around, often from different vendors, the need for integration has never been greater. We see TriggerMesh’s solution as the ideal fit for this need which made them a compelling investment.”

Descartes Labs launches its new platform for analyzing geospatial data

Descartes Labs, a wellfunded startup based in New Mexico, provides businesses with geospatial data and the tools to analyze it in order to make business decisions. Today, the company announced the launch of its Descartes Labs Platform, which promises to bring its data together with all of the tools data scientists — including those with no background in analyzing this kind of information — would need to work with these images to analyze them and build machine learning models based on the data in them.

Descartes Labs CEO Phil Fraher, who took this position only a few months ago, told me that the company’s current business often includes a lot of consulting work to get its customers started. These customers span the range from energy and mining companies to government agencies, financial services and agriculture businesses, but many don’t have the in-house expertise to immediately make use of the data that Descartes Labs provides.

“For the most part, we still have to evangelize how to use geospatial data to solve business problems. And so a lot of our customers rely on us to do consulting,” Fraher said. “But what’s really interesting is that even with some of our existing customers, we’re now seeing more early adopters, more business and analysis teams and data scientists being hired, that do focus on geospatial data. So what’s really exciting with this launch is we’re now going to put our platform tool in the hands of those particular individuals that now can do their own work.”

In many ways, this new platform gives these customers access to the tools and data that Descartes Labs’ own team uses and allows them to collaborate with the company to solve their problems and use the new modeling tools to build solutions for their individual businesses.

“Previously, a data science team at a company that’s interested in this kind of analysis would also have to know how to wrangle very large-scale or petabyte-scale Earth observation data sets,” Fraher said. “These are very unique and specific skillsets and because of that kind of barrier to entry, the adoption of some of this technology and data sources has been slow.”

To enable more businesses to get started with working with this data (and become Descartes Labs customers), the company is betting on the standard tools in the industry, with hosted Jupyter notebooks, Python support and a set of APIs. It also includes tools to transform and clean the incoming data from Descartes’ third-party partners in order to make it usable for data scientists.

“It’s not just like some simple ETL-like data processing pipeline,” Descartes Labs’ head of Engineering Sam Skillman noted. “It’s something where we have to combine very in-depth data science, remote sensing and large-scale compute capabilities to bring all of that data in in a way that normalizes it and gets it ready for analysis.”

All of this analysis is handled in the cloud, of course.

The new platform is now available to businesses that want to give it a try.

Shared inbox startup Front raises $59 million round led by other tech CEOs

Front is raising a $59 million Series C funding round. Interestingly, the startup hasn’t raised with a traditional VC firm leading the round. A handful of super business angels are investing directly in the productivity startup and leading the round.

Business angels include Atlassian co-founder and co-CEO Mike Cannon-Brookes, Atlassian President Jay Simons, Okta co-founder and COO Frederic Kerrest, Qualtrics co-founders Ryan Smith and Jared Smith and Zoom CEO Eric Yuan. Existing investors including Sequoia Capital, Initialized Capital and Anthos Capital are participating in this round as well.

While Front doesn’t share its valuation, the company says that the valuation has quadrupled compared to the previous funding round. Annual recurring venue has also quadrupled over the same period.

The structure of this round is unusual, but it’s on purpose. Front, like many other startups, is trying to redefine the future of work. That’s why the startup wanted to surround itself with leaders of other companies who share the same purpose.

“First, because we didn’t need to raise (we still had two years of runway), and it’s always better to raise when we don’t need it. The last few months have given me much more clarity into our go-to-market strategy,” Front co-founder and CEO Mathilde Collin told me.

Front is a collaborative inbox for your company. For instance, if you want to share an email address with your coworkers (support@mycompany.com or jobs@mycompany.com), you can integrate those shared inboxes with Front and work on those conversations as a team.

It opens up a ton of possibilities. You can assign conversations to a specific person, @-mention your coworkers to send them a notification, start a conversation with your team before you hit reply, share a draft with other people, etc.

Front also supports other communication channels, such as text messages, WhatsApp messages, a chat module on your website and more. As your team gets bigger, Front helps you avoid double replies by alerting other users when you’re working on a reply.

In addition to those collaboration features, Front helps you automate your workload as much as possible. You can set up automated workflows so that a specific conversation ends up in front of the right pair of eyes. You can create canned responses for the entire team as well.

Front also integrates with popular third-party services, such as Salesforce, HubSpot, Clearbit and dozens of others. Front customers include MailChimp, Shopify and Stripe.

While Front supports multiple channels, email represents the biggest challenge. If you think about it, email hasn’t changed much over the past decade. The last significant evolution was the rise of Gmail, G Suite and web-based clients. In other words, Front wants to disrupt Outlook and Gmail.

With today’s funding round, the company plans to iterate on the product front with Office 365 support for its calendar, an offline mode and refinements across the board. The company also plans to scale up its sales and go-to-market team with an office in Phoenix and a new CMO.

Snyk snags $150M investment as its valuation surpasses $1B

Snyk, the company that wants to help developers secure their code as part of the development process, announced a $150 million investment today. The company indicated the investment brings its valuation to more than $1 billion (although it did not share the exact figure).

Today’s round was led by Stripes, a New York City investment firm, with help from Coatue, Tiger Global, BoldStart,Trend Forward, Amity and Salesforce Ventures. The company reports it has now raised more than $250 million.

The idea behind Snyk is to fit security firmly in the development process. Rather than offloading it to a separate team, something that can slow down a continuous development environment, Snyk builds in security as part of the code commit.

The company offers an open-source tool that helps developers find open-source vulnerabilities when they commit their code to GitHub, Bitbucket, GitLab or any CI/CD tool. It has built up a community of more than 400,000 developers with this approach.

Snyk makes money with a container security product, and by making available to companies as a commercial product the underlying vulnerability database they use in the open-source product.

CEO Peter McKay, who came on board last year as the company was making a move to expand into the enterprise, says the open-source product drives the revenue-producing products and helped attract this kind of investment. “Getting to [today’s] funding round was the momentum in the open source model from the community to freemium to [land] and expand — and that’s where we are today,” he told TechCrunch.

He said the company wasn’t looking for this money, but investors came knocking and gave them a good offer, based on Snyk’s growing market momentum. “Investors said we want to take advantage of the market, and we want to make sure you can invest the way you want to invest and take advantage of what we all believe is this very large opportunity,” McKay said.

In fact, the company has been raising money at a rapid clip since it came out of the gate in 2016 with a $3 million seed round. A $7 million Series A and $22 million Series B followed in 2018, with a $70 million Series C last fall.

The company reports over 4X revenue growth in 2019 (without giving exact revenue figures), and some major customer wins, including the likes of Google, Intuit, Nordstrom and Salesforce. It’s worth noting that Salesforce thought enough of the company that it also invested in this round through its Salesforce Ventures investment arm.

Harvestr gathers user feedback in one place

Meet Harvestr, a software-as-a-service startup that wants to help product managers centralize customer feedback from various places. Product managers can then prioritize outstanding issues and feature requests. Finally, the platform helps you get back to your customers once changes have been implemented.

The company just raised a $650,000 funding round led by Bpifrance, with various business angels also participating, such as 360Learning co-founders Nicolas Hernandez and Guillaume Alary, as well as Station F director Roxanne Varza through the Atomico Angel Programme.

Harvestr integrates directly with Zendesk, Intercom, Salesforce, Freshdesk, Slack and Zapier. For instance, if a user opens a ticket on Zendesk and another user interacts with your support team through an Intercom chat widget, everything ends up in Harvestr.

Once you have everything in the system, Harvestr helps you prioritize tasks that seem more urgent or that are going to have a bigger impact.

When you start working on a feature or when you’re about to ship it, you can contact your users who originally reached out to talk to you about it.

Eventually, Harvestr should help you build a strong community of power users around your product. And there are many advantages in pursuing this strategy.

First, you reward your users by keeping them in the loop. It should lead to higher customer satisfaction and lower churn. Your most engaged customers could also become your best ambassadors to spread the word around.

Harvestr costs $49 per month for five seats and $99 per month for 20 seats. People working for 360Learning, HomeExchange, Dailymotion and other companies are currently using it.

DigitalOcean is laying off staff, sources say 30-50 affected

After appointing a new CEO and CFO last summer, cloud infrastructure provider DigitalOcean is embarking on a wider reorganisation: the startup has announced a round of layoffs, with potentially between 30 and 50 people affected.

DigitalOcean has confirmed the news with the following statement:

“DigitalOcean recently announced a restructuring to better align its teams to its go-forward growth strategy. As part of this restructuring, some roles were, unfortunately, eliminated. DigitalOcean continues to be a high-growth business with $275M in [annual recurring revenues] and more than 500,000 customers globally. Under this new organizational structure, we are positioned to accelerate profitable growth by continuing to serve developers and entrepreneurs around the world.”

Before the confirmation was sent to us this morning, a number of footprints began to emerge last night, when the layoffs first hit, with people on Twitter talking about it, some announcing that they are looking for new opportunities, and some offering help to those impacted. Inbound tips that we received estimate the cuts at between 30 and 50 people. With around 500 employees (an estimate on PitchBook) that would work out to up to 10% of staff affected.

It’s not clear what is going on here — we’ll update as and when we hear more — but when Yancey Spruill and Bill Sorenson were respectively appointed CEO and CFO in July 2019 (Spruill replacing someone who was only in the role for a year), the incoming CEO put out a short statement that, in hindsight, hinted at a refocus of the business in the near future.

“My aspiration is for us to continue to provide everything you love about DO now, but to also enhance our offerings in a way that is meaningful, strategic and most helpful for you over time,” he said at the time.

The company provides a range of cloud infrastructure services to developers, including scalable compute services (“Droplets” in DigitalOcean terminology), managed Kubernetes clusters, object storage, managed database services, Cloud Firewalls, Load Balancers and more, with 12 datacenters globally. It says it works with more than 1 million developers across 195 countries. It’s also been expanding the services that it offers to developers, including more enhancements in its managed database services, and a free hosting option for continuous code testing in partnership with GitLab.

All the same, as my colleague Frederic pointed out when DigitalOcean appointed its latest CEO, while developers have generally been happy with the company, it isn’t as hyped as it once was, and is a smallish player nowadays.

And in an area of business where economies of scale are essential for making good margins on a business, it competes against some of the biggest leviathans in tech: Google (and its Google Cloud Platform), Amazon (which as AWS) and Microsoft (with Azure). That could mean that DigitalOcean is either trimming down as it talks investors for a new round; or to better conserve cash as it sizes up how best to compete against these bigger, deep-pocketed players; or perhaps to start thinking about another kind of exit.

In that context, it’s notable that the company not only appointed a new CFO last summer, but also a CEO with prior CFO experience. It’s been a while since DigitalOcean has raised capital. According to PitchBook, DigitalOcean last raised money in 2017, an undisclosed amount from Mighty Capital, Glean Capital, Viaduct Ventures, Black River Ventures, Hanaco Venture Capital, Torch Capital and EG Capital Advisors. Before that, it took out $130 million in debt, in 2016. Altogether it has raised $198 million and its last valuation was from a round in 2015, $683 million.

It’s been an active week for layoffs among tech startups. Mozilla laid off 70 employees this week; and the weed delivery platform Eaze is also gearing up for more cuts amid an emergency push for funding.

We’ll update this post as we learn more. Best wishes to those affected by the news.