|
AI Startup Layoffs; New Bio-Medical and Software Funds Close
|
|
By Marc Vartabedian, WSJ Pro
|
|
|
|
|
Good day. A record wave of job cuts sparked by the coronavirus pandemic has hit artificial intelligence technology startups, an area where job and spending forecasts have been relatively optimistic. DataRobot, Textio and Yonder have all faced layoffs since the pandemic crashed markets and led to frugality across startup sectors.
On the flip side, two new funds have closed amid the market turmoil. VenBio Partners LLC has raised $394 million to finance companies the life sciences venture-capital firm believes can generate returns quickly. The San Francisco-based firm began raising the fund last year and closed it last month without any limited partners backing out despite the new coronavirus, Managing Partner Aaron Royston said.
Meanwhile, Insight Partners has raised $9.5 billion for its newest and largest private-equity fund, which has flexibility to back a range of investments from venture-capital funding rounds to large multibillion-dollar buyout deals. Both firms say their strategies and target sectors could leave them less exposed to the turbulence.
And now on to the news...
|
|
|
|
|
Forecasts for artificial intelligence jobs during the coronavirus pandemic have been relatively optimistic, but some AI startups are tightening their belts. PHOTO: STEVEN SENNE/ASSOCIATED PRESS
|
|
|
A record surge of job cuts sparked by the coronavirus pandemic has touched technology startups that make use of artificial intelligence, an area where job and spending forecasts have been relatively optimistic, WSJ Pro's John McCormick reports.
-
DataRobot, an enterprise artificial-intelligence platform company, cut a number of jobs at the end of March. It declined to say how many people it laid off.
-
In late March, Seattle-based Textio Inc. laid off about 30 employees across the company, leaving it with a workforce of about 120 people. Textio offers AI software that helps recruiters write job postings and recruiting emails that attract candidates.
-
Austin, Texas-based Yonder laid off 18 employees last month, bringing its workforce to about 40 people. The company, whose software is designed to help spot disinformation campaigns on social media, said the cuts were across the board.
|
|
6.6 Million
|
The number of Americans that applied for unemployment the week ending March 29th.
|
|
|
New biomedical fund. VenBio Partners LLC has raised $394 million to finance companies the life sciences venture-capital firm believes can generate returns quickly, WSJ Pro's Brian Gormley reports. San Francisco-based venBio began raising venBio Global Strategic Fund III LP last year and closed it last month without any limited partners backing out despite the new coronavirus, Managing Partner Aaron Royston said. VenBio invests mostly in
biopharmaceuticals startups and typically aims to exit them through mergers and acquisitions because drug manufacturers are always looking for new products, Dr. Royston said.
|
|
New fund. Insight Partners has raised $9.5 billion for its newest and largest private-equity fund, despite the economic uncertainty created by the coronavirus pandemic, WSJ Pro's Laura Cooper reports. It has the flexibility to back a range of investments from venture-capital funding rounds to large multibillion-dollar buyout deals. New York-based Insight plans to invest the new fund in technology companies around the world, typically providing between $10 million and $350 million of equity capital to each deal, although it has the capacity to invest larger amounts. Software is largely viewed as more recession-resistant than other areas of the private-equity investing landscape. This is
largely attributed to the recurring revenue coming in from software-as-a-service companies.
|
|
|
|
|
|
|
People
Dedrone, a startup that helps customers such as data centers, prisons and airports secure their airspace from drones, appointed Aaditya Devarakonda as president and chief business officer. Mr. Devarakonda was previously a senior member of the technology investment banking group at Centerview Partners. San Francisco-based Dedrone was founded in 2014 and is backed by investors including Felicis Ventures and Menlo Ventures.
Locana Inc., an gene therapy startup, appointed Micah Mackison as chief business officer. He was previously senior vice president of corporate development and strategy at Assembly Biosciences. San Diego-based Locana counts Lightstone Ventures and Arch Venture Partners as backers.
|
|
|
|
Notion Labs Inc., a San Francisco-based workplace productivity tool, scored $50 million in funding from Index Ventures and others, giving the company a valuation of $2 billion. The news was first reported by the New York Times, and later confirmed through a company spokesperson.
98point6, a Seattle text-based primary-care provider, landed $43 million in Series D funding. Investors included Goldman Sachs’ merchant banking division, Frazier Healthcare Partners’ Nader Naini and BlackRock Inc. Chief Executive Larry Fink.
GPB Scientific Inc., a Vista, Calif.-based therapeutic cell production and bioprocessing startup, grabbed a $25.5 million investment. Vensana Capital led the round, which included participation from Amgen Ventures and others.
Juspay, an Indian payment startup, collected a $21.6 million Series B investment from Vostok Emerging Finance, Wellington Management and Accel.
OctoML, a Seattle-based startup that deploys machine learning and deep learning models as a service, raised $15 million in Series A funding from seed round investors Amplify Partners and Madrona Venture Group.
Pulse Inc., a San Francisco-based social research platform, secured $6.5 million in a Series A round led by AV8 Ventures.
JennyLife Inc., a Seattle-based life insurance startup, collected $3.5 million in Series A financing from CMFG Ventures and others.
|
|
|
|
German soldiers at a barracks in Berlin tested an app on Wednesday intended to track people’s interactions. PHOTO: ISMAEL AKBAR/AGENCE FRANCE-PRESSE/GETTY IMAGES
|
|
|
-
U.S. and Europe turn to phone-tracking strategies to slow spread of coronavirus.
-
In a pandemic, another worry: touching the payment screen at checkout.
-
Coronavirus poised to upend how boards consider data protection, privacy.
-
Universities get creative with technology because of coronavirus closures.
|
|
|
-
Disney+ streaming service surging in downloads. (TechCrunch)
-
America's small business bailout is off to a bad start. (Axios)
-
SoftBank Vision Fund is losing a partner it promoted last month. (Bloomberg)
-
Two U.S. state AGs seek info on Zoom's privacy practices. (Reuters)
|
|
|
We cover venture capital and the global startup ecosystem. WSJ Pro Venture Capital is a premium service of The Wall Street Journal. Share your tips, comments and questions: vcnews@wsj.com
The Team: Tomio Geron, Yuliya Chernova, Brian Gormley and Marc Vartabedian.
Follow us on Twitter: @wsjvc, @tomiogeron, @ychernova, @BrianPGormley, @marcvarta.
|
|