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February 24, 2019
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Helen Yiang and Andy Wheeler will be speaking at TC Sessions: Robotics + AI April 18 at UC Berkeley

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We’re just under two months out from this year’s TC Sessions: Robotics + AI event, and we’ve still got a lot left to announce. As noted, we’ll have Anca Dragan, Marc Raibert, Alexei Efros, Hany Farid, Melonee Wise, Peter Barrett, Rana el Kaliouby, Arnaud Thiercelin and Laura Major at the April event, and today we’ve got a pair of names to add to the ever-growing speaker list.

Today we’re excited to announce to additions to our VC panel, who will be discussing the wild world of robotics investments.

Founding and Managing Partner of FoundersX Ventures, Helen Liang will be joining us at the event to discuss the 20 early stage robotics and AI startups she has invested in. Liang brings a decade of product development to her work at her early-stage capital fund and also serves as Founding President at Tech for Good.

Andy Wheeler is a founding partner at GV (formerly Google Ventures), focusing on bringing early-stage tech to market. He is a co-founder of Ember Corporation and a veteran of MIT Media Lab. His list of early investments include Carbon, Farmer’s Business Network, Abundant Robotics and Orbital Insight.

Early bird tickets are now on sale – book your $249 ticket today and save $100 before prices go up. Students, did you know that you can save $45 with a heavily-discounted student ticket? Book your student ticket here.

News Source = techcrunch.com

Dandelion Energy, the Alphabet X spinout, raises another $16M led by GV and Comcast

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As tech companies continue their race to control the smart home, a promising energy startup has raised a round of funding from traditionally-tech and strategic investors, for a geothermal solution to heat and cool houses. Dandelion Energy, a spinout from Alphabet X, has raised $16 million in a Series A round of funding, with strategic investors Comcast Ventures leading the round along with GV, the investment arm of Alphabet formerly known as Google Ventures.

Lennar Corporation, the home building giant, is also coming in as an investor, as are previous backers NEA, Collaborative Fund, Ground Up, and Zhenfund, and other unnamed investors. Notably, Lennar once worked with Apple but is now collaborating with Amazon on smart homes.

As a side note, Dandelion’s investment is a timely reminder of how central “new home” startups are right now in smart home plays. Amazon just yesterday announced one more big move in its own connected home strategy with the acquisition of Mesh WiFi startup eero, which helps extend the range and quality of WiFi coverage in a property.

This is the second funding round for Dandelion in the space of a year, after the company raised a seed round of $4.5 million in March 2018, a mark of how the company has been seeing a demand for its services and now needs the capital to scale. In the past year, it had accrued a waitlist of “thousands” of homeowners requesting its services across America, where it is estimated that millions of homeowners heat their homes with fossil fuels, which are estimated to account for 11 percent of all carbon emissions.

The company is based out of New York, and for now New York is the only state where its services are offered. The funding may help change that. It will be used in part for R&D, but also to hire more people, open new warehouses for its equipment and supplies, and for business development.

Dandelion is not disclosing its valuation, but in its last round the company had a modest post-money valuation of $15 million, according to PitchBook. It has now raised $23 million in total since spinning out from Alphabet X, the company’s moonshot lab, in May 2017.

The premise of Dandelion’s business is that it provides a source of heating and cooling homes that takes people away from consuming traditional, energy grid-based services — which represent significant costs, both in terms of financial and environmental impact. If you calculate usage over a period of years, Dandelion claims that it can cut a household’s energy bills in half while also being significantly more friendly for the environment compared to conventional systems that use gas and fossil fuels.

While there have been a number of efforts over the years to tap geothermal currents to provide home heating and cooling, many of the solutions up to now have been challenging to put in place, with services typically using wide drills and digging wells at depths of over 1,000 feet.

“These machines are unnecessarily large and slow for installing a system that needs only a few 4” diameter holes at depths of a few hundred feet,” Kathy Hannun, cofounder and CEO of Dandelion, has said in the past. “So we decided to try to design a better drill that could reduce the time, mess and hassle of installing these pipes, which could in turn reduce the final cost of a system to homeowners.”

The smaller scale of what Dandelion builds also means that the company can do an installation in one day.

While a pared-down approach this means a lower set of costs (half the price of traditional geothermal systems) and quicker installation, that doesn’t mean that upfront costs are non-existent. Dandelion installations run between $20,000 and $25,000, although home owners can subsequently rack up savings of $35,000 over 20 years. (Hannun noted that today about 50 percent of customers choose to finance the installation which removes the upfront cost and spreads it out across monthly payments.)

This is also where Lennar comes in. The company is in the business of building homes, and it has been investing in particular in the idea of building the next generation of homes by incorporating better connectivity, more services — and potentially alternative energy sources — from the ground up.

“We’re incredibly excited to invest in Dandelion Energy,” said Eric Feder, Managing General Partner for Lennar Ventures, in a statement. “The possibility of incorporating geothermal heating & cooling systems in our new homes is something we’ve explored for years, but the math never made sense. Dandelion Energy is finally making geothermal affordable and we look forward to the possibility of including it in the homes Lennar builds.”

The fact that Comcast is among the investors in Dandelion is a notable development.

The company has been acquiring, and taking strategic stakes in, a number of connected-home businesses as it builds its own connected home offering, where it not only brings broadband and entertainment to your TV and come computers, and also provides the tools to link up other connected devices to that network to control them from a centralised point.

Dandelion is “off grid” in its approach to providing home energy, and while you might think that it doesn’t make sense for a company that is investing in and peddling services and electronic devices connected to a centralised (equally electricity-consuming) internet to be endorsing a company that’s trying to build an alternative, it actually does.

For starters, Dandelion may be tapping geothermal energy but its pump uses electricity and sensors to monitor and moderate its performance.

“Dandelion’s heat pump is a connected device with 60 sensors that monitor the performance and ensures that the home owner is proactively warned if there are any issues,” Hannun said in an interview. “This paves the way to operate it in a smart way. It’s aligned with the connected home.” In other words, this positions Dandelion as one more device and system that could be integrated into Comcast’s connected home solution.

Aside from this, view in terms of the segment of customers that Comcast is targeting, it’s selling a bundle of connected home services to a demographic of users who are not afraid of using (and buying) new and alternative technology to do things a different way from how their parents did it. Dandelion may not be “connected” but even its approach to disconnecting will appeal to a person who may already be thinking of ways of reducing his or her carbon footprint and energy bills (especially since they may be consuming vast amounts of electricity to run their connected homes).

“The home heating and cooling industry has been constrained by lack of innovation and high-costs,” said Sam Landman, managing director of Comcast Ventures, in a statement. “The team at Dandelion and their modern approach to implementing geothermal technology is transforming the industry and giving consumers a convenient, safe, and cost-effective way to heat and cool their homes while reducing carbon emissions.”

Landman and Shaun Maguire, a partner at GV, will both be joining Dandelion’s board with this round.

“In a short amount of time, Dandelion has already proven to be an effective and affordable alternative for home heating and cooling, leveraging best-in-class geothermal technology,” said Maguire, in a statement. “Driven by an exceptional leadership team, including CEO Kathy Hannun, Dandelion Energy is poised to have a meaningful impact on adoption of geothermal energy solutions among homeowners.”

News Source = techcrunch.com

China is funding the future of American biotech

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Silicon Valley is in the midst of a health craze, and it is being driven by “Eastern” medicine.

It’s been a record year for US medical investing, but investors in Beijing and Shanghai are now increasingly leading the largest deals for US life science and biotech companies. In fact, Chinese venture firms have invested more this year into life science and biotech in the US than they have back home, providing financing for over 300 US-based companies, per Pitchbook. That’s the story at Viela Bio, a Maryland-based company exploring treatments for inflammation and autoimmune diseases, which raised a $250 million Series A led by three Chinese firms.

Chinese capital’s newfound appetite also flows into the mainland. Business is booming for Chinese medical startups, who are also seeing the strongest year of venture investment ever, with over one hundred companies receiving $4 billion in investment.

As Chinese investors continue to shift their strategies towards life science and biotech, China is emphatically positioning itself to be a leader in medical investing with a growing influence on the world’s future major health institutions.

Chinese VCs seek healthy returns

We like to talk about things we can interact with or be entertained by. And so as nine-figure checks flow in and out of China with stunning regularity, we fixate on the internet giants, the gaming leaders or the latest media platform backed by Tencent or Alibaba.

However, if we follow the money, it’s clear that the top venture firms in China have actually been turning their focus towards the country’s deficient health system.

A clear leader in China’s strategy shift has been Sequoia Capital China, one of the country’s most heralded venture firms tied to multiple billion-dollar IPOs just this year.

Historically, Sequoia didn’t have much interest in the medical sector.  Health was one of the firm’s smallest investment categories, and it participated in only three health-related deals from 2015-16, making up just 4% of its total investing activity. 

Recently, however, life sciences have piqued Sequoia’s fascination, confirms a spokesperson with the firm.  Sequoia dove into six health-related deals in 2017 and has already participated in 14 in 2018 so far.  The firm now sits among the most active health investors in China and the medical sector has become its second biggest investment area, with life science and biotech companies accounting for nearly 30% of its investing activity in recent years.

Health-related investment data for 2015-18 compiled from Pitchbook, Crunchbase, and SEC Edgar

There’s no shortage of areas in need of transformation within Chinese medical care, and a wide range of strategies are being employed by China’s VCs. While some investors hope to address influenza, others are focused on innovative treatments for hypertension, diabetes and other chronic diseases.

For instance, according to the Chinese Journal of Cancer, in 2015, 36% of world’s lung cancer diagnoses came from China, yet the country’s cancer survival rate was 17% below the global average. Sequoia has set its sights on tackling China’s high rate of cancer and its low survival rate, with roughly 70% of its deals in the past two years focusing on cancer detection and treatment.

That is driven in part by investments like the firm’s $90 million Series A investment into Shanghai-based JW Therapeutics, a company developing innovative immunotherapy cancer treatments. The company is a quintessential example of how Chinese VCs are building the country’s next set of health startups using their international footprints and learnings from across the globe.

Founded as a joint-venture offshoot between US-based Juno Therapeutics and China’s WuXi AppTec, JW benefits from Juno’s experience as a top developer of cancer immunotherapy drugs, as well as WuXi’s expertise as one of the world’s leading contract research organizations, focusing on all aspects of the drug R&D and development cycle.

Specifically, JW is focused on the next-generation of cell-based immunotherapy cancer treatments using chimeric antigen receptor T-cell (CAR-T) technologies. (Yeah…I know…) For the WebMD warriors and the rest of us with a medical background that stopped at tenth-grade chemistry, CAR-T essentially looks to attack cancer cells by utilizing the body’s own immune system.

Past waves of biotech startups often focused on other immunologic treatments that used genetically-modified antibodies created in animals.  The antibodies would effectively act as “police,” identifying and attaching to “bad guy” targets in order to turn off or quiet down malignant cells.  CAR-T looks instead to modify the body’s native immune cells to attack and kill the bad guys directly.

Chinese VCs are investing in a wide range of innovative life science and biotech startups. (Photo by Eugeneonline via Getty Images)

The international and interdisciplinary pedigree of China’s new medical leaders not only applies to the organizations themselves but also to those running the show.

At the helm of JW sits James Li.  In a past life, the co-founder and CEO held stints as an executive heading up operations in China for the world’s biggest biopharmaceutical companies including Amgen and Merck.  Li was also once a partner at the Silicon Valley brand-name investor, Kleiner Perkins.

JW embodies the benefits that can come from importing insights and expertise, a practice that will come to define the companies leading the medical future as the country’s smartest capital increasingly finds its way overseas.

GV and Founders Fund look to keep the Valley competitive

Despite heavy investment by China’s leading VCs, Silicon Valley is doubling down in the US health sector.  (AFP PHOTO / POOL / JASON LEE)

Innovation in medicine transcends borders. Sickness and death are unfortunately universal, and groundbreaking discoveries in one country can save lives in the rest.

The boom in China’s life science industry has left valuations lofty and cross-border investment and import regulations in China have improved.

As such, Chinese venture firms are now increasingly searching for innovation abroad, looking to capitalize on expanding opportunities in the more mature US medical industry that can offer innovative technologies and advanced processes that can be brought back to the East.

In April, Qiming Venture Partners, another Chinese venture titan, closed a $120 million fund focused on early-stage US healthcare. Qiming has been ramping up its participation in the medical space, investing in 24 companies over the 2017-18 period.

New firms diving into the space hasn’t frightened the Bay Area’s notable investors, who have doubled down in the US medical space alongside their Chinese counterparts.

Partner directories for America’s most influential firms are increasingly populated with former doctors and medically-versed VCs who can find the best medical startups and have a growing influence on the flow of venture dollars in the US.

At the top of the list is Krishna Yeshwant, the GV (formerly Google Ventures) general partner leading the firm’s aggressive push into the medical industry.

Krishna Yeshwant (GV) at TechCrunch Disrupt NY 2017

A doctor by trade, Yeshwant’s interest runs the gamut of the medical spectrum, leading investments focusing on anything from real-time patient care insights to antibody and therapeutic technologies for cancer and neurodegenerative disorders.

Per data from Pitchbook and Crunchbase, Krishna has been GV’s most active partner over the past two years, participating in deals that total over a billion dollars in aggregate funding.

Backed by the efforts of Yeshwant and select others, the medical industry has become one of the most prominent investment areas for Google’s venture capital arm, driving roughly 30% of its investments in 2017 compared to just under 15% in 2015.

GV’s affinity for medical-investing has found renewed life, but life science is also part of the firm’s DNA.  Like many brand-name Valley investors, GV founder Bill Maris has long held a passion for the health startups.  After leaving GV in 2016, Maris launched his own fund, Section 32, focused specifically on biotech, healthcare and life sciences. 

In the same vein, life science and health investing has been part of the lifeblood for some major US funds including Founders Fund, which has consistently dedicated over 25% of its deployed capital to the space since at least 2015.

The tides may be changing, however, as the recent expansion of oversight for the Committee on Foreign Investment in the United States (CFIUS) may severely impact the flow of Chinese capital into areas of the US health sector. 

Under its extended purview, CFIUS will review – and possibly block – any investment or transaction involving a foreign entity related to the production, design or testing of technology that falls under a list of 27 critical industries, including biotech research and development.

The true implications of the expanded rules will depend on how aggressively and how often CFIUS exercises its power.  But a lengthy review process and the threat of regulatory blocks may significantly increase the burden on Chinese investors, effectively shutting off the Chinese money spigot.

Regardless of CFIUS, while China’s active presence in the US health markets hasn’t deterred Valley mainstays, with a severely broken health system and an improved investment environment backed by government support, China’s commitment to medical innovation is only getting stronger.

VCs target a disastrous health system

Deficiencies in China’s health sector has historically led to troublesome outcomes.  Now the government is jump-starting investment through supportive policy. (Photo by Alexander Tessmer / EyeEm via Getty Images)

They say successful startups identify real problems that need solving. Marred with inefficiencies, poor results, and compounding consumer frustration, China’s health industry has many

Outside of a wealthy few, citizens are forced to make often lengthy treks to overcrowded and understaffed hospitals in urban centers.  Reception areas exist only in concept, as any open space is quickly filled by hordes of the concerned, sick, and fearful settling in for wait times that can last multiple days. 

If and when patients are finally seen, they are frequently met by overworked or inexperienced medical staff, rushing to get people in and out in hopes of servicing the endless line behind them. 

Historically, when patients were diagnosed, treatment options were limited and ineffective, as import laws and affordability issues made many globally approved drugs unavailable.

As one would assume, poor detection and treatment have led to problematic outcomes. Heart disease, stroke, diabetes and chronic lung disease accounts for 80% of deaths in China, according to a recent report from the World Bank

Recurring issues of misconduct, deception and dishonesty have amplified the population’s mounting frustration.

After past cases of widespread sickness caused by improperly handled vaccinations, China’s vaccine crisis reached a breaking point earlier this year.  It was revealed that 250,000 children had been given defective and fallacious rabies vaccinations, a fact that inspectors had discovered months prior and swept under the rug.

Fracturing public trust around medical treatment has serious, potentially destabilizing effects. And with deficiencies permeating nearly all aspects of China’s health and medical infrastructure, there is a gaping set of opportunities for disruptive change.

In response to these issues, China’s government placed more emphasis on the search for medical innovation by rolling out policies that improve the chances of success for health startups, while reducing costs and risk for investors.

Billions of public investment flooded into the life science sector, and easier approval processes for patents, research grants, and generic drugs, suddenly made the prospect of building a life science or biotech company in China less daunting. 

For Chinese venture capitalists, on top of financial incentives and a higher-growth local medical sector, loosening of drug import laws opened up opportunities to improve China’s medical system through innovation abroad.

Liquidity has also improved due to swelling global interest in healthcare. Plus, the Hong Kong Stock Exchange recently announced changes to allow the listing of pre-revenue biotech companies.

The changes implemented across China’s major institutions have effectively provided Chinese health investors with a much broader opportunity set, faster growth companies, faster liquidity, and increased certainty, all at lower cost.

However, while the structural and regulatory changes in China’s healthcare system has led to more medical startups with more growth, it hasn’t necessarily driven quality.

US and Western investors haven’t taken the same cross-border approach as their peers in Beijing. From talking with those in the industry, the laxity of the Chinese system, and others, have made many US investors weary of investing in life science companies overseas.

And with the Valley similarly stepping up its focus on startups that sprout from the strong American university system, bubbling valuations have started to raise concern.

But with China dedicating more and more billions across the globe, the country is determined to patch the massive holes in its medical system and establish itself as the next leader in international health innovation.

News Source = techcrunch.com

The war over music copyrights

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VC firms haven’t been the only ones raising hundreds of millions of dollars to invest in a booming market. After 15+ years of being the last industry anyone wanted to invest in, the music industry is coming back, and money is flooding in to buy up the rights to popular songs.

As paid streaming subscriptions get mainstream adoption, the big music streaming services – namely Spotify, Apple Music, and Tencent Music, but also Pandora, Amazon Music, YouTube Music, Deezer, and others – have entered their prime. There are now over 51 million paid subscription accounts among music streaming services in the US. The music industry grew 8% last year globally to $17.3 billion, driven by a 41% increase in streaming revenue and 45% increase in paid streaming revenue.

The surge in music streaming means a surge in income for those who own the copyrights to songs, and the growth of entertainment in emerging markets, growing use in digital videos, and potential use of music in new content formats like VR only expand this further. Unsurprisingly, private equity firms, family offices, corporates, and pension funds want a piece of the action.

There are two general types of copyrights for a song: the publishing rights and the master rights. The musical composition of a song – the lyrics, melodies, etc. – comes from songwriters who own the publishing right (though generally they sign a publishing deal and their publisher gets ownership of it in addition to half the royalties). Meanwhile, the version of a song being performed comes from the recording artist who owns the master right (though usually they sign a record deal and the record label gets ownership of the masters and most of the royalties).

Popular songs are valuable to own because of all the royalties they collect: whenever the song is played on a streaming service, downloaded from iTunes, or covered on YouTube (a mechanical license), played over radio or in a grocery store (a performance license), played as soundtrack over a movie or TV show (a sync license), and for other uses. More royalty income from a song goes to the master owner since they took on more financial risk marketing it, but publishers collect royalties from some channels that master owners don’t (like radio play, for instance).

For a songwriter behind popular songs, these royalties form a predictable revenue stream that can amount to tens of thousands, hundreds of thousands, or even millions of dollars per year. Of course, most songs that are written or recorded don’t make any money: creating a track that breaks out in a crowded industry is hard. This scarcity – there are only so many thousands of popular musicians and a limited number of legendary artists whose music stays relevant for decades – means copyrights for successful musicians command a premium when they or their publisher decide to sell them.

Investing in streaming economics

In 2017, revenue from streaming services accounted for 38% of worldwide music industry revenue, finally overtaking revenue from traditional album sales and song downloads. Subscription streaming services hit a pivot point in gaining mainstream adoption, but they still have far to go. Goldman Sachs media sector analyst Lisa Yang predicted that by 2030, the global music industry will reach $41 billion in market size as the global streaming market multiplies in size to $34 billion (nearly all of it from paid subscriptions).

Merck Mercuriadis is seen on the left. (Photo by KMazur/WireImage for Conde Nast media group)

Earlier this week, I spoke with Merck Mercuriadis who has managed icons like Elton John, Guns N’ Roses, and Beyoncé and raised £200 million ($260 million) on the London Stock Exchange in June for an investment vehicle (Hipgnosis Songs) to acquire the catalogues of top songwriters. His plan is to raise and invest £1 billion over the next three to five years, arguing that the shift to passive consumers paying for music will take the industry to heights it has never seen before.

Indeed, streaming music is a paradigm shift from the past. With all the world’s music available in one interface for free (with ads) or for an affordable subscription (without ads), consumers no longer have to actively choose which specific songs to buy (or even which to download illegally).

With it all in front of them and all included in the price, people are listening to a broader range of music: they’re exploring more genres, discovering more musicians who aren’t stars on traditional radio, and going back to music from past decades. Consumers who weren’t previously buying a lot of music are now subscribing for $120 per year and spreading it across more artists.

Retail businesses are doing the same: through streaming offerings like Soundtrack Your Brand (which spun out of Spotify), they’re using commercial licenses – which are more expensive – to stream a broader array of music in stores rather than putting on the radio or playing the same few CDs.

Much of the music industry’s market growth is happening in China, India, Latin America, and emerging markets like Nigeria where subscription apps are replacing widespread music piracy or non-consumption. Tencent Music Entertainment, whose three streaming services have roughly 75% market share in China (a music market that expanded by 34% last year), is preparing for an IPO that could give it roughly the same $29 billion valuation Spotify received in its IPO in April. Meanwhile, music industry revenue from Latin America grew 18% last year.

Western music is infused in pop culture worldwide, so as these countries enter the streaming era they are monetizing hundreds of millions of additional listeners, through ad revenue at a minimum but increasingly through paid subscriptions as well.

At the talent management, publishing, and production firm Primary Wave, founder Larry Mestel is seeing emerging markets drive more revenue to his clients (like Smokey Robinson, Alice Cooper, Melissa Etheridge, and the estate of Bob Marley) as new fan bases engage with their music online. He raised a new $300 million fund (backed by Blackrock and other institutions) in 2016 to acquire rights in music catalogues amid a market he says has improved substantially due to growth opportunities stemming from the streaming model.

It’s not just streaming music platforms that are driving growth either. Streaming video has exploded, whether it’s from short YouTube videos or the growing number of shows on platforms like Hulu and Amazon Prime Video, and with that comes growing sync licensing of songs for their soundtracks; global sync licensing revenue was up 10% year-over-year in 2017 alone. Over the last year, Facebook signed licenses with every large publisher to cover use of song clips by its users in Instagram Stories and Facebook videos as well.

The inflating valuations of songs catalogues

Catalogues are commonly valued based on the “net publisher’s share,” which is the average amount of annual royalty money left over after paying out any percentages owed to others (like a partial stake in the royalties still held by the artist).

When Round Hill Music acquired Carlin for $245 million in January to gain ownership in the catalogues of Elvis Presley, James Brown, AC/DC, and others, it paid a 16x multiple on net publisher share, which is high but not uncommon in the current market when trading catalogues of legendary artists. Just three years ago, multiples anchored in the 10-12 range (or less for newer or smaller artists whose music has not yet shown the same longevity).

Avid Larizadeh Duggan left her role as a general partner at GV to become Chief Strategy & Business Officer of Kobalt

Kobalt, which raised $205 million from VC firms like GV and Balderton Capital to become a technology-centric publisher and label services powerhouse, has also become an active player in the space. Aside from its core operating business (where it stands out from traditional publishers and labels for not taking control of clients’ copyrights), it has raised two funds ($600M for the most recent one) to help institutional investors like the Railpen pension fund in the UK gain exposure to music copyrights as an asset class. In December, their fund acquired the catalogue of publisher SONGS Music Publishing for a reported $160M in a sale process against 13 other bidders looking to buy ownership in songs by Lorde, The Weeknd, and other young pop and hip-hop artists.

Too high a price?

The natural question to ask when there’s a rapid surge of money (and a corresponding surge in prices) in an asset class is whether there’s a bubble. After all, last year’s industry revenues were still only 68% of those in 1999 and the rate of growth will inevitably slow once streaming has captured the early majority of consumers.

But the fundamentals driving this capital are in line with a secular shift – it’s evident that music streaming still has a lot of room to grow in a few short years, especially as a large portion of the human population is just coming online (and doing so over mobile first). Plus as new content formats like augmented and virtual reality come to fruition, new categories of music sync licensing will inevitably accompany them for their soundtracks.

Each catalogue is its own case, of course. As Shamrock Capital managing director Jason Sklar emphasized to me, the rising tide isn’t lifting all boats equally. The streaming revolution appears to be disproportionately benefiting hip-hop, rap, and pop given the youth skew of streaming service users and the digital-native social media engagement of the artists in those genres.

Beyond the purchase price, the critical variable for evaluating a deal in this market is also the operational value a potential buyer can provide to the catalogue: their ability to actively promote songs from the past by pitching them to new TV shows, ad campaigns, and any number of other projects that will keep them culturally relevant. This is where strategic investors have an advantage over purely financial investors in publishing rights, especially when it comes to the longer tail of middle-tier artist’s whose music doesn’t naturally get the inbound demand that the Beatles or Prince catalogues do.

With strong long-term market growth and a wide range of possible niches and strategies, music copyrights are an asset class where we’ll see a number of major new players develop.

News Source = techcrunch.com

Carmera, the mapping startup for autonomous vehicles, raises $20 million

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Autonomous vehicles need more than a brain to operate safely in a world filled with obstacles. They need maps. Or more specifically, self-driving vehicles need maps that constantly refresh and can deliver important information—like that sudden lane closure due to construction or a double parked vehicle—so they can take the safest and most efficient route possible.

This specific need has provided an opening for startups in what once looked like a locked up mapping market dominated by a few giants.

Carmera, a New York-based mapping and data analytics startup, is one of them. The company, which came out of stealth two years ago, has now raised $20 million in a Series B funding round led by GV, formerly known as Google Ventures. Carmera previously raised $6.5 million.

The company announced the funding raise Thursday along with a few other updates including a new feature on its autonomous mapping product and a partnership with New York City. The capital will be used to hire more talent and expand.

“We’ll be doing the most aggressive hiring we’ve ever done this next year,” Carmera co-founder and CEO Ro Gupta told TechCrunch, adding that the company will mostly focus on building out its New York and Seattle offices. Carmera, which has about 25 employees, plans to have more than 50 by the end of next year.

“The money also allows us to be more prospective than simply reacting to customer needs,” Gupta added.

In other words, Carmera can move into new markets where it suspects there will be a need in the future, not just wait for a call from their customers. One of those customers is Voyage, the autonomous driving startup that currently operates self-driving cars in retirement communities.

Carmera has an interesting business model, and one that’s likely attractive to investors looking for startups with a present-day revenue stream. The company  describes itself as a street intelligence platform for autonomy. It’s main product is the Carmera autonomous map, a high-definition map for autonomous vehicle customers like automakers, suppliers, and robotaxis.

The twist here is that the company uses data gleaned from its other product—a fleet monitoring service used by commercial customers with vehicles driven by humans—to keep those AV maps fresh. The fleet product is a telematics and video monitoring service used by professional fleets that want to manage risk with their vehicles and drivers.

These fleets of camera-equipped human-driven vehicles deliver new information to the autonomous map as they go about their daily business in cities. Carmera calls this a “pro-sourcing” swarm.

The startup has now added a real-time events and change management engine to its autonomous map that Gupta contends is a major leap forward because it not only provides more detailed information to self-driving vehicles, it gives these driverless vehicles a suggested path.

In some mapping products, there’s general a base map and then a dynamic overlay. The problem, Gupta explains, is that when things change like a lane closure, the dynamic map only flags it, leaving it up to the vehicle to figure out what to do next.

“That works fine when humans are driving, it just doesn’t go far enough for AVs,” Gupta said. “What they need to know is how do I path plan around it?”

Carmera’s real-time events and change management feature.

The map will detect a change in milliseconds, classify it within seconds and then validate and redraw the base map within minutes, according to Carmera. The company is giving companies deploying autonomous vehicles API access to this data at every stage.

Carmera also has a “site intelligence product,” a jargon term that means the company provides spatial data and street analytics (like how pedestrians move within a particular intersection) to urban planners.

Carmera announced Thursday it will begin sharing data such as historical pedestrian analytics and real-time construction detection with New York City’s Department of Transportation. Carmera will get access to key city data sets in return. The partnership with NYC DOT follows an earlier data sharing initiative with the Downtown Brooklyn Partnership.

News Source = techcrunch.com

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