Roundup of news and ideas from the world of startups – Week ending 23rd June 2019
News you can use
Facebook’s ambitious cryptocurrency Libra: Opportunity for startups? This week, the tech giant Facebook made headlines when it announced its ambitious cryptocurrency programs Libra and Calibra that would create Digital Wallet for billions. As expected, the announcement got tech analysts and digirati buzzing about the possibility of a move that could “transform the global economy.” In this article, we look at a few factoids about Libra and Calibra.
New E-Tattoo Enables Accurate, Uninterrupted Heart Monitoring for Days – The leading cause of death in Texas is heart disease, according to the National Center for Health Statistics, accounting for more than 45,000 deaths statewide in 2017. A new wearable technology made from stretchy, lightweight material could make heart health monitoring easier and more accurate than existing electrocardiograph machines — a technology that has changed little in almost a century. Developed by engineers at The University of Texas at Austin and led by Nanshu Lu in the Cockrell School of Engineering, this is the latest incarnation of Lu’s electronic tattoo technology, a graphene-based wearable device that can be placed on the skin to measure a variety of body responses, from electrical to biomechanical signals.
Startup Merger and Acquisitions
iRobot acquires education startup Root Robotics – In a bid to expand its educational offerings, iRobot has acquired local Massachusetts-based startup, Root Robotics. The company is the creator of the eponymous coding robot, a two-wheeled device designed to draw on whiteboards and other surfaces, scanning colors, playing music and otherwise playing out coding instructions. We had the company at our CES stage last year, and it managed to stand out among a sea of educational ‘bots at the event. iRobot clearly sees a lot of value in the Wyss Institute at Harvard University spin-off, and will integrate the startup’s offering into its portfolio immediately. “The acquisition of Root Robotics allows iRobot to broaden the impact of its STEM efforts with a commercially available, educational robotic platform already being used by educators, students and parents,” iRobot CEO Colin Angle said in a press release. “Root also helps increase the reach of iRobot’s educational robot line by offering a proven system for people of all ages, including students in elementary school.”
Zomato is Unstoppable: Fifth Acquisition Of The Year – Post its recent funding of $60 Mn restaurant discovery app Zomato has acquired Italy’s leading restaurant search service Cibando for an undisclosed sum. The company now has a presence in 20 countries. A few other startups acquired by Zomato include MenuMania in New Zealand, Lunchtime in Czech Republic, Obedovat in Slovakia, and Gastronauci in Poland. Cibando hosts database for over 82,000 restaurants in Italy. Zomato plans to invest $6 Mn in Italy over the next 2 years to grow the team and the business in the country. The said acquisition is expected to be completed over the next week.
Apple Buys Nigerian entrepreneurs online mapping startup – Apple has acquired HopStop.com, an “online city transit guide” and mobile application founded in 2005 by Nigerian tech entrepreneur Chinedu Echeruo. Echeruo’s company, HotStop.com was acquired by Apple in a move to bolster the tech giant’s plan to upgrade its map offering, following Google’s recent $1.1 billion acquisition of Israeli mapping startup, Waze, which draws similarities with its new acquisition. Confirming the acquisition to ABC News, Apple spokeswoman Kristin Huguet said in a statement that the tech company “buys smaller technology companies from time to time” and it generally does not discuss its “purpose or plans”. HotStop.com is a mobile application that helps people get directions to subway stations and bus stops in over 300 cities. The company also makes apps available on iOS and Android platforms.
Startups failures
Task management startup RUSSSH shuts shop – Mumbai-based task management service startup RUSSSH recently announced that it was shutting down. Russsh.com was India’s first trusted online errand running service company and since 2012 it had grown to a workforce of 150. The only errand-running and delivery service in Mumbai, RUSSSH, began as GetMyPeon, before it rebranded as RUSSSH in 2015 and received a seed funding of $250,000 from undisclosed angels.
Amazon shuts down its food-delivery business – The hyper-competetive Food tech and delivery business is not easy to operate. A few recent shutdowns include Meal-delivery startup Munchery, Canadian FoodTech startup Food Starter, Indie Plate among others. Now, the tech giant Amazon is also discovering how tough the business segment is. Amazon sent an email on June 12th to Amazon Flex delivery drivers notifying them of the shutdown: “Amazon Restaurants will be closing later this month. After June 24th, you will no longer see offers for Restaurants deliveries,” the email reads. “You will continue to see blocks for all the other programs that Amazon Flex Delivery Partners support: Amazon.com, Prime Now, AmazonFresh, and Whole Foods.”
Another Legal Tech Startup Is Shutting Down – SupportHound, a spousal support calculator for Oregon attorneys that used real cases to calculate how much and how long a spousal support award should be. SupportHound was founded in 2016 by Julie Gentili Armbrust, an attorney and family law mediator in Oregon. The site uses data collected from actual cases to analyze the financial situations of parties going through a divorce and recommend a suggested support award. The suggestion forms a data-driven basis for negotiations with opposing counsel.In an email last week to SupportHound customers, Armbrust said that she had made the difficult decision to shut down the site.