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With Atlanta rising as a new hub for tech, early stage firm Tech Square Ventures gets a new partner

Atlanta is coming up in the tech world with several newly minted billion-dollar businesses hailing from the ATL and the city’s local venture capital community is taking notice.

Even as later stage firms like the newly minted BIP Capital rebrand and  with increasingly large funds, earlier stage firms like Tech Square Ventures are staffing up and adding new partners.

The firm’s latest hire is Vasant Kamath, a general partner who joins the firm from Primus Capital, a later stage investment vehicle based out of Atlanta. Before that, he was managing investments for the private office of the Cox family.

Originally from Augusta, Ga. Kamath left the south to attend Harvard and then went out west for a stint at Stanford Business School.

In between his jaunts North and West Kamath spent time in Atlanta as an investment banker with Raymond James in the early 2000s, the beginnings of a lifelong professional career in technology. Before business school, Kamath worked at Summit Equity Partners in Boston investing in later stage technology companies.

Kamath settled in Atlanta in 2010 just as a second wave of technology companies began making their presence felt in the city.

The new Tech Square Village general partner pointed to Atlanta’s underlying tech infrastructure as one reason for the move to early stage. One pillar of that infrastructure is Georgia Tech itself. The school, whose campus abuts the Tech Square Ventures offices, is one of the top engineering universities in the country and the breadth of talent coming out of that program is impressive, Kamath said.

There’s also the companies like Airwatch, MailChimp, Calendly and others that represent the resurgence of Atlanta’s tech scene, Tech Square Ventures’ newest general partner said.

Not only are young companies reinvesting in the city, but big tech giants and telecom players like T-Mobile, Google, and Microsoft are also establishing major offices, accelerators, and incubators in Atlanta.

“There’s a lot of momentum here in early stage and i think it’s building. It’s the right time for a firm like TSV to take advantage of all of the things,” Kamath said. 

Another selling point for making the jump to early stage investing was the relationship that Kamath had established with Tech Square Ventures founder, Blake Patton. A serial entrepreneur who’s committed to building up Atlanta’s startup ecosystem, Patton has been the architect of Tech Square Ventures’ growth through two separate initiatives.

In all, the firm has $90 million in assets under management. What began with a small pilot fund, Tech Square Ventures Fund 1, (a $5 million investment vehicle) has expanded to include two larger funds raised in conjunction with major industrial corporate partners like AT&T, Chick-Fil-A, Cox Enterprises, Delta, Georgia-Pacific, Georgia Power, The Home Depot, UPS, Goldman Sachs, and Invesco. Those funds total $54 million in AUM and the firm is halfway toward closing a much larger second flagship fund under the Tech Square Ventures name with a $75 million target.

All this activity has led to a blossoming entrepreneurial community that early stage funds like Tech Square Ventures hopes to tap.

“We see a fair number of folks from these large corporations spinning out and starting things themselves,” said Kamath. “For a decade plus, you have multiple entrepreneurs doing really well and increasing acceleration in terms of climate and exits.”

And more firms from outside of the region are beginning to take notice.

“I think that is happening,” said Kamath. “You might seen investment from outside the region. At the seed stage it’s harder you do need to have feet on the ground right when they’re starting and building their business. Once they’ve been vetted and had that early round of investment you will definitely see a lot of activity. We’re seeing more investment at the Series A and B from out of town. That’s the strategy.”

It all points to a burgeoning startup scene that’s based in a collaborative approach, which should be good not only for Tech Square Ventures, but the other early stage funds like Atlanta Ventures, Outlander Labs, BLH Ventures, Knoll Ventures and Overline, that working to support the city’s entrepreneurs, Kamath said.

LA’s Splice gets $55 million for its software bringing beats from bedrooms to bandstands

Splice, the LA-based, AI-infused, beat-making software service for music producers created by the founder of GroupMe, has managed to sample another $55 million in financing from investors for its wildly popular service.

The github for music producers ranging from Hook N SlingMr Hudson, SLY, and Steve Solomon to TechCrunch’s own Megan Rose Dickey, Splice gained a following for its ability to help electronic dance music creators save, share, collaborate and remix music.

The company’s popularity has made it from bedroom djs to the Goldman Sachs boardroom as the financial services giant joined MUSIC, a joint venture between the music executive Matt Pincus and boutique financial services firm, Liontree, in leading the company’s latest $55 million round.  The company’s previous investors include USV, True Ventures, DFJ Growth, and Flybridge.

“The music creation process is going through a digital transformation. Artists are flocking to solutions that offer a user-friendly, collaborative, and affordable platform for music creation,” said Stephen Kerns, a VP with Goldman Sachs’ GS Growth, in a statement. “With 4 million users, Splice is at the forefront of this transformation and is beloved by the creator community. We’re thrilled to be partnering with Steve Martocci and his team at Splice.”

Splice’s financing follows an incredibly acquisitive 2020 for the company, which saw it acquiring music technology companies Audiaire and Superpowered.

In addition to the financing, Splice also nabbed Kakul Srivastava, the vice president of Adobe Creative Cloud Experience and Engagement as a director for its board.

The funding news comes on the heels of Splice’s recent acquisitions of music-tech companies Audiaire and Superpowered, creating more ways to improve and inspire the audio and music-making process. Splice is also pleased to announce that Kakul Srivastava has joined the company’s board.

Steve Martocci at TechCrunch Disrupt in 2016. Image Credits: Getty Images

Splice’s beefed up balance sheet comes as new entrants have started vying for a slice of Splice’s music-making market. These are companies like hardware maker Native Instruments, which launched the Sounds.com marketplace last year, and there’s also Arcade by Output that’s pitching a similar service. 

Meanwhile Splice continues to invest in new technology to make producers’ lives easier. In November 2019 it unveiled its artificial intelligence product that lets producers match samples from different genres using machine learning techniques to find the matches.

“My job is to keep as many people inspired to create as possible” Splice founder and chief executive, Steve Martocci told TechCrunch.

It’s another win for the serial entrepreneur who famously sold his TechCrunch Disrupt Hackathon chat app Group.Me to Skype for $85 million just a year after launching.

LA-based Metropolis raises $41 million to upgrade parking infrastructure

Metropolis is a new Los Angeles-based startup that’s looking to compete with BMW-owned ParkMobile for a slice of the automated parking lot management market.

Upgrading ParkMobile’s license plate-based service with a computer vision based system that recognizes cars as they enter and leave garages has been Metropolis’ mission since founder and chief executive Alex Israel first formed the business back in 2017.

Israel, a serial entrepreneur, has spent decades thinking about parking. His last company, ParkMe, was sold to Inrix back in 2015. And it was with those earnings and experience that Israel went back to the drawing board to develop a new kind of parking payment and management service.

Now, the company is ready for its closeup, announcing not only its launch, but $41 million in financing the company raised from investors including the real estate managers Starwood and RXR Realty; Dick Costolo’s 01 Advisors; Dragoneer; former Facebook employees Sam Lessin and Kevin Colleran’s Slow Ventures; Dan Doctoroff, the head of Alphabet’s Sidewalk Labs initiative; and NBA All star and early stage investor, Baron Davis. 

According to Alex Israel, the parking payment application is the foundation for a bigger business empire that hopes to reimagine parking spaces as hubs for a broad array of urban mobility services.

In this, the company’s goals aren’t dissimilar from the Florida-based startup, REEF, which has its own spin on what to do with the existing infrastructure and footprint created by urban parking spaces. And REEF’s $700 million round of funding from last year shows there’s a lot of money to be made — or at least spent — in a parking lot.

Unlike REEF, Metropolis will remain focused on mobility, according to Israel. “How does parking change over the next 20 years as mobility shifts?” he asked. And he’s hoping that Metropolis will provide an answer. 

The company is hoping to use its latest funding to expand its footprint to over 600 locations over the course of the next year. In all, Metropolis has raised $60 million since it was formed back in 2017.

While the computer vision and machine learning technology will serve as the company’s beachhead into parking lots, services like cleaning, charging, storage and logistics could all be part and parcel of the Metropolis offering going forward, Israel said. “We become the integrator [and] we also in some cases become the direct service provider,” Israel said.

The company already has 10,000 parking spots that it’s managing for big real estate owners, and Israel expects more property managers to flood to its service.

“[Big property owners] are not thinking about the infrastructure requirements that allow for the seamless access to these facilities,” Israel said. His technology can allow buildings to capture more value through other services like dynamic pricing and yield optimization as well.

“Metropolis is finding the highest and best use whether that be scooter charging, scooter storage, fleet storage, fleet logistics, or sorting,” Israel said.