Roundup of news and ideas from the world of startups – Week ending 9th Sept 2019
News you can use
Calgary startup develops tech that can turn CO2 emissions into cleaning products – Calgary-based startup CleanO2 has developed technology that can convert greenhouse gas emissions into cleaning products. Using refrigerator-sized ‘CARBiNX’ devices, CleanO2 has managed to capture and absorb CO2 with a type of hydroxide. This can then be turned into such products as soap and detergent. According to CleanO2, 14 CARBiNX units have been installed across Alberta and British Columbia so far. The company is also now expanding into the U.S. through a pilot project in Minneapolis
Startup Merger and Acquisitions
Cisco acquires Microsoft-backed customer analytics startup CloudCherry – Though best known for its networking and data center gear, Cisco Systems Inc. is also a major player in the contact center technology business. The company’s products support more than 3 million customer service agents worldwide, a market presence it hopes to further strengthen with the newly announced purchase of Customer Analytics Technologies Inc., better known as CloudCherry.
OptimizeRx acquires RMDY Health for $16M to expand digital messaging platform – OptimizeRx, a software company that enables digital health messaging between pharmaceutical companies and providers, plans to acquire New York-based RMDY Health for $16 million. Shareholders of RMDY Health—a software as a service platform for digital therapeutics products—will receive $8 million in cash and $8 million in equity when the transactions closes, according to a release. RMDY Health’s estimated annual revenue for 2019 is $3 million. OptimizeRX reported $21.2 million in revenue in 2018, up 75% from $12.1 million in 2018.
Prudential plans to acquire U.S. based tech startup Assurance IQ – The insurance company has signed a deal with Assurance IQ for $2.35 billion and is willing to pay extra $1.15 billion in equity and cash. Prudential Financial, Inc., a Fortune 500 company that offers investment management, insurance and other financial services, has recently signed a deal to acquire Assurance IQ, a Seattle-area insurance company for $2.35 billion. According to reliable sources, the acquisition will allow Prudential to reach more customers online with the help of the tech-focused insurance seller’s expertise. Meanwhile, Assurance IQ, which sells several insurance policies over the internet, is expected to bag an additional amount of $1.15 billion in equity and cash if it achieves some growth objectives set by Prudential, besides the upfront $2.35 billion.
Fintech Frollo acquires AI startup Hip Money – Digital finance platform Frollo is expanding its horizons into the world of artificial intelligence with a fresh acquisition. The Australian company has taken over Hip Money, a US-originated and Australian-based tech startup founded in 2017 that uses AI to help users eliminate debt and save money. Frollo expects Hip Money’s AI technology to perfectly complement its offering as a free personal finance and budget management app that lets users track their spending and savings.
Startups failures
Four years & two million dollars later: Lessons from a failed startup – Entrepreneur Bassel Idriss chronicles his journey in launching a startup, discusses how he struggled to get his business off the ground, and reveals all he’s learned over 4 years and 2 million dollars later. If you’re thinking of starting your own business because you’re after the ‘glorious’ end and not the journey getting there, don’t bother! … If you’re not tenaciously persistent; get excited by seemingly insurmountable challenges; easily swayed or care too much about what others think and say, don’t bother! … If you think failing will be the ‘end of you’, also, don’t bother!
5 Common Blunders That Every Failed Startup Makes – Startups’ obsession with their own products also manifests in their marketing and sales messages. Continuous learning is no longer an option. Nor can founders delegate it to their teams.