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Valispace raises $2.4M lead by JOIN Capital to become the ‘Github for hardware’

Hardware engineering is mostly document-based. A typical satellite might be described in several hundred thousand PDF documents, spreadsheets, simulation files and more; all potentially inconsistent between each other. This can lead to costly mistakes. NASA lost a $125 million Mars orbiter because one engineering team used metric units while another used English units, for instance.

Germany-HQ’d Valispace, which also has offices in Portugal, dubs itself as “Github for hardware”. In other words, it’s a collaboration platform for engineers, allowing them to develop better satellites, planes, rockets, nuclear fusion reactors, cars and medical devices, you name it. It’s a browser-based application, which stores engineering data and lets the users interconnect them through formulas. This means that when one value is changed, all other values are updated, simulations re-run and documentation rewritten automatically.

That last point is important in this pandemic era, where making and improving medical ventilators has become a huge global issue.

Valispace has now raised a Seed Extension funding round of €2.2M / $2.4M lead by JOIN Capital in Berlin and was joined by HCVC (Hardware Club), based in Paris.

The funding will be used to expand into new industries (e.g. medical devices, robotics) and expansion of the existing ones (aeronautics, space, automotive, energy). The company is addressing the Systems Engineering Tool market in Europe which is worth €7Billion, while the US market is at least as big. It’s competitors include RHEA CDP4, Innoslate, JAMA and the largest player Status Quo.

Marco Witzmann, CEO of Valispace said: “Valispace has proven to help engineers across industries to develop better hardware. From drones to satellites, from small electronic boxes to entire nuclear fusion reactors. When modern companies like our customers have the choice, they chose an agile engineering approach with Valispace.”

Tobias Schirmer from JOIN Capital commented: “Browser-based collaboration has become a must for any modern hardware company, as the importance of communication across teams and offices increases.”

The company now counts BMW, Momentus, Commonwealth Fusion Systems and Airbus as customers.
Witzmann previously worked on Europe’s biggest Satellite Program (Meteosat Third Generation) as a Systems Engineer, while his Portugal-based co-founder Louise Lindblad (COO) worked at the European Space Agency, developing satellites and drones.

As satellite engineers, both were surprised that while the products they were working on were cutting edge, the tools to develop them seemed to be from the 80s. In 2016 they launched Valispace as a company, convincing Airbus to become one of their first customers.

On-demand shuttle startup Via hits $2.25 billion valuation on latest funding round led by Exor

On-demand shuttle startup Via has hit a $2.25 billion valuation following a Series E funding round led by Exor, the Agnelli family holding company that owns stakes in PartnerRe, Ferrari and Fiat Chrysler Automobiles.

The Series E funding round, which included other investors, totaled $400 million, according to a source familiar with the deal. Exor invested $200 million into Via as part of the round, both companies said in an announcement. Noam Ohana, who heads up Exor Seeds, the holding company’s early stage investment arm, will join Via’s board.

New investors Macquarie Capital, Mori Building and Shell also participated in the round as well as existing investors 83North, Broadscale Group, Ervington Investments, Hearst Ventures, Planven Ventures, Pitango and RiverPark Ventures.

Via, which employs about 700 people, plans to use most of these funds to expand its “partnerships,” the software services piece of its business. Via has two sides to its business. The company operates consumer-facing shuttles in Chicago, Washington, D.C. and New York. But the core of its business is really its underlying software platform, which it sells to cities and transportation authorities to deploy their own shuttles.

When the company first launched in 2012 there was little interest from cities in the software platform, according to co-founder and CEO Daniel Ramot . The company started by focusing on its consumer-facing shuttles. Over time, and using the massive amounts of data it collected through these service, Via improved its dynamic, on-demand routing algorithm, which uses real-time data to route shuttles to where they’re needed most.

Via landed its first city partnership with Austin in late 2017, after providing the platform to the transit authority for free. It was enough to allow Via to develop case studies and convince other cities to buy into the service. In 2019, the partnerships side of the business “took off,” Ramot said in a recent interview, adding that the company was signing on 2 to 3 cities a week before the COVID-19 pandemic.

Today, the Via platform is used by more than 100 partners, including cities such as Los Angeles, Cupertino, Calif., and Arriva Bus UK, a Deutsche Bahn Company that uses it for a first- and last-mile service connecting commuters to a high-speed train station in Kent, U.K.

Raising funds in a pandemic

Via managed to close the funding round during an inauspicious time for startups that have found it increasingly difficult to lock in capital due to the COVID-19 pandemic. COVID-19, a disease caused by the coronavirus, has upended markets along with every industrial and business sector from manufacturing and transportation to energy and real estate.

Via managed to raise a sizable fund, which just closed, despite the credit tightening and uncertainty. Ramot told TechCrunch that while he was worried the round might be delayed, he noted that Exor is a long-term and patient investor that shares the company’s “same vision of where transit is going.”

Even now, as nearly every category within transportation —including public transit, ride-hailing, shared micromobility and airlines — has seen ridership drop or dry up altogether, Ramot and Ohana see a promising future.

Ohana said that the market is starting to understand the limits of ride-hailing — hurdles such as poor unit economics and an uncertain path to profitability. “On the other hand, the size of the market for an on-demand dynamic shuttle service is large and underappreciated,” Ohana said. “When we look at public transit today, there is a significant opportunity for Via, which already has impressive experience working with municipal and public transit partners across the globe.”

That doesn’t mean Via is immune to the widespread tumult caused by the COVID-19 pandemic. Via’s consumer business has been negatively affected as ridership has dropped due to the spreading disease.

However, there has been some promise with its partnerships business, Ramot said.

Existing partners, a list that includes transit authorities in Berlin, Germany, Ohio and Malta, have worked with Via to convert or adapt the software to meet new needs during the pandemic. A city might dedicate its shuttle service to transporting goods or essential personnel. For instance, Berlin converted its 120-shuttle fleet transport to an overnight service that provides free transit to healthcare workers traveling to and from work.

“There has been a real interest in emergency services,” Ramot said, adding he expects to see more demand for the software platform and the flexibility it provides as the pandemic unfolds.

Delivery Hero urges users to go cashless, no contact for food deliveries

Delivery Hero has switched to cash-less, non-contact for deliveries in areas it defines as “high risk” for the transmission of the SARS-CoV-2 virus to reduce personal contact between couriers and customers during the coronavirus pandemic. But it’s encouraging all customers to make the switch.

“By introducing contactless delivery, we can ensure that our service is safe and convenient for customers, riders and restaurants,” said CEO, Niklas Östberg, in a press release. “We now encourage customers to pay without cash everywhere, and decide when and how they want their order to be delivered. These are options designed to reduce interpersonal contact and make our customer journey even more secure.”

It has also implemented no-contact drop-offs in high risk areas and is asking restaurants to sanitize packages to further shrink the risk of spreading the virus.

While there is no evidence that people have become infected by eating food contaminated with the microscopic agent — SARS-CoV-2 is a respiratory virus; the primary transition route for infection appears to be via close contact with an infected person, when you might be more likely to breathe in tiny droplets that contain the virus, such as those expelled when someone coughs or sneezes — there could be a small risk posed by contaminated food packaging.

If, for example, an infected person, who had coughed into their hand, then touched a package which they gave to an uninfected person — who then touched their face without first washing their hands. Studies suggest the virus that causes COVID-19 can remain infectious for between several hours or days on certain surfaces.

To shrink the risk of such a scenario, Delivery Hero said it’s working closely with restaurant partners to ensure “the highest hygiene standards”.

The risk of infection via contaminated surfaces is reduced by everyone observing good hand hygiene — i.e. washing hands regularly and directly after touching things others may have touched — and by not touching their own face with unclean hands.

“Official health authorities around the world agree that there is a very limited chance of contracting COVID-19 through food,” said Delivery Hero today. “Neither the European Centre for Disease Prevention and Control (ECDC), nor the U.S. Food and Drug Administration (FDA), have any reports of Coronavirus COVID-19 transmitted via food or food packaging. However, we are working closely with our restaurant partners to ensure that they continue to operate in a secure kitchen environment and carry out food preparation and packaging according to the highest hygiene standards.”

The company is also providing riders in “high risk” zones with hand sanitisers, masks and other safety materials — “where and when it is locally and culturally accepted”.

The Berlin -based takeaway platform operates across 44 markets in Europe, Asia, LatAm and the Middle East, operating under a variety of brand names.

We’ve asked which areas it’s defining as “high risk”.

In recent weeks a number of US and European food delivery startups have turned on a contactless delivery option to shrink the risks around COVID-19 during the epidemic. Delivery Hero said it started taking precautionary measures “as soon as the situation started to evolve in January”.

The company is using its rider app to communicate updates and “instruct on hygiene requirements, especially for pick-up and drop-off”. “By having direct access to new information, our riders can make informed decisions when on the road,” it added.

While many startups face a demand crunch during the epidemic as people dial back some of their regular activities, the opposite looks to be true for food delivery — as large-scale quarantine measures mean many people are eating more meals at home. Food delivery is also being actively being encouraged by some governments, such as the UK, as a convenient lever to keep more citizens locked down at home where they can’t spread the virus or increase their chance of exposure.

Delivery Hero said it’s responded to growing demand by implementing free delivery options in the majority of its markets — “to make online ordering accessible to as many people as possible”, as it puts it.

It said “several” of these options are “focused on when ordering from restaurants nearby” — in what looks like an attempt to streamline demand for restaurants and delivery workers by incentivizing local food orders.

In another support step for restaurants it’s offering more frequent payment cycles for some partners — “according to local need”. “For new restaurants joining our platform, we aim to onboard as fast as possible, in order to support them in maintaining order levels as well as provide more choice for our customers,” it added.

Zooming out, Delivery Hero said it’s closely liaising with local governments — and continuing to follow official health and safety guidelines provided in its different markets. And it gave examples of how some of its different brands are working on relief efforts related to COVID-19 around the world.

“Our brand HungerStation in Saudi Arabia is partnering with the Saudi Ministry of Health and Saudi Food & Drug Authority to provide hand sanitizers for people in need,” it said. “In the Czech Republic, our brand Damejidlo has also been selected as one of the Red Cross’ official partners, bringing food to senior citizens. As a part of a broader initiative to support their communities, our Latin American brand PedidosYa is giving up to 1,000 free lunches per day to people who are at the forefront of fighting the virus, such as employees in the health sector.”

Another area the company is ramping up to meet demand for food delivery in the time of the coronavirus is grocery store onboarding. Currently, customers across 21 markets in the MENA region, Asia-Pacific and Latin America can order groceries from supermarkets via the company’s local delivery apps, in addition to takeout meals.

“We have seen an increase in demand from our global customer community and to meet the growing need, we have accelerated the onboarding of grocery stores,” Delivery Hero said. “We have also increased delivery through our cloud stores, another way to secure that our customers have access to everyday necessities.”

It’s not clear what — if any — financial provision the company is making to support delivery riders who do not have a contract that includes sick pay.

We’ve asked and will update this report with any response.

“During these turbulent times, our immediate efforts go into securing the wellbeing of all Delivery Hero customers, riders and employees,” the company said. “We are monitoring the development of COVID-19 minute by minute and will implement further measures as necessary. Our thoughts are with everyone who has been affected by the spread of the virus and to all who go the extra mile to keep our communities safe, healthy and fed.”