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On a growth tear, DuckDuckGo reveals it picked up $100M in secondary investment last year

Privacy tech continues cooking on gas. To wit: Non-tracking search engine DuckDuckGo has just revealed that it beefed up its balance sheet at the back end of last year with $100 million+ in “mainly secondary investment” — from a mix of existing and new investors.

Its blog post name-checks Omers Ventures, Thrive, GP Bullhound, Impact America Fund, and also WhatsApp founder Brian Acton; inventor of the world wide web Tim Berners-Lee; VC and diversity activist Freada Kapor Klein; and entrepreneur Mitch Kapor as being among the participating investors. So quite the line up.

DuckDuckGo said the secondary investment allowed some of its early employees and investors to cash out a chunk of their equity while bolstering its financial position.

Although it also says its business — which has been profitable since 2014 — is “thriving”, reporting that revenues are now running at $100M+ a year. Hence it not needing to keep dipping into an external investor pot.

Its last VC raise was in 2018 when it took in $10M after being actively pursued by Omers Ventures — who convinced it to take the money to help support growth objectives (especially internationally).

DDG has a few other metrics to throw around now: Over the last 12 months it said its apps were downloaded over 50M times — more than in all prior years combined.

It’s also revealed that its monthly search traffic increased 55% and says marketshare trackers indicate that it grabbed the #2 spot for search engine on mobile in a number of countries, including the U.S., Canada, Australia, and the Netherlands. (StatCounter/Wikipedia).

“We don’t track our users so we can’t say for sure how many we have, but based on market share estimates, download numbers, and national surveys, we believe there are between 70-100 million DuckDuckGo users,” it added.

A looming shift to Google’s Android choice screen in Europe, where regulators have forced the company to present users of mobile devices that run its OS with rival options when they’re setting a default search engine, looks likely to further boost DuckDuckGo’s regional fortunes.

Google will be ditching the current paid auction model — so rivals which have a valuable alternative proposition for users (like privacy) combined with strong brand awareness (and, well, everyone likes ducks… ) have the best chance yet to take slices out of Google’s marketshare.

DuckDuckGo’s blog post confirms it’ll be dialling up its marketing in Europe and other regions.

“Our thriving business also gives us the resources to tell more people there is a simple solution for online privacy they can use right now. Over the last month, we’ve rolled out billboard, radio, and TV ads in 175 metro areas across the U.S., with additional efforts planned for Europe and other countries around the world,” it notes.

So it look like a good chunk of DDG’s secondary funding will be spent on growth marketing — as it seeks to capitalize on rising public attention to online privacy, tracking and creepy ads, itself fuelled by years of data scandals.

Awareness is also now being actively driven by Apple’s recent switch to inform iOS users of third party app tracking and give people a simple way to say no — which includes slick, Cupertino-funded ad campaigns (such as the one below) which are clearly intended to turn and engage mainstream heads…

It’s fair to say it’s probably never been easier to craft a simple and compelling marketing message around privacy — and that’s also a testament to how far privacy tech has come in terms of usability and accessibility.

So, yes, DuckDuckGo’s business sure looks like it’s sitting pretty at this juncture of the web’s evolution. And its blog post talks about “becoming a household name for simple privacy protection”. So the scale of its ambition is clear.

“Privacy skeptics have dominated the discussion about online privacy for too long. “Sure people care about privacy, but they’ll never do anything about it.” It’s time to lay this bad take to rest,” it adds.

More products are also on the slate from the 13-year veteran privacy player.

It already bolted on tracker-blocking back in 2018 but is looking to go further — saying that it will be rolling out additional privacy features to what it bills as its “all-in-one privacy bundle”, including an email protection tool that will be launched in beta “in a few weeks” and which it says will “give users more privacy without having to get a new inbox”.

“Later this summer, app tracker blocking will be available in beta for Android devices, allowing users to block app trackers and providing more transparency on what’s happening behind the scenes on their device. And Before the end of the year, we also plan to release a brand-new desktop version of our existing mobile app which people can use as a primary browser,” it goes on, adding: “By continuing to expand our simple and seamless privacy bundle, we continue to make our product vision, ‘Privacy, simplified.’ a reality.”

That’s another trend we’re seeing in privacy tech: Innovators who have carefully and credibly built up a solid reputation around one type of tech tool (such as search or email) find themselves — as usage grows — perfectly positioned to branch out into offering a whole bundle or suite of apps they can wrap in the same protective promise.

Another player, ProtonMail, for example, has morphed into Proton, a privacy-centric company which offers freemium tools for not just end-to-end encrypted email but also cloud storage, calendar and a VPN — all neatly positioned under its pro-privacy umbrella.

Expect more development momentum as privacy tech continues to accelerate into the mainstream.

 

Honey Insurance launches with $15.5M AUD, the largest seed round ever for an Australian tech startup

When Richard Joffe moved his family to Australia in 2019, he said applying for home insurance “was like traveling back in time 30 years.”

“I found the sign-up process painful, the fine print was confusing and the insurance company was totally reactive, not proactive. They never contacted me aside from my renewal,” he told TechCrunch. Joffe, who founded parking sensor platform Park Assist and jobs platform Stella.ai in the United States, began researching and found many people in Australia shared the same frustrations. This was the impetus for him to found Honey Insurance, which launches today with $15.5 million AUD (about $11.9 million USD), the largest seed round ever raised by a tech startup in Australia, according to Crunchbase data.

The funding was led by institutional investors RACQ (the insurer that also underwrites Honey Insurance), PEXA, Metricon, ABN Group, Mirvac, AGL, SFG and Apex Capital. Individual investors include Zip founder and global CEO Larry Diamond; Afterpay co-founder and CEO Anthony Eisen; former MEBank CEO Jamie McPhee; former Corelogic CEO Graham Mirabito; Airtasker co-founder and CEO Tim Fung; former News Corp Australia and Foxtel CEO Peter Tonagh.

The capital will be used on hiring, with plans to fill 80 positions over the next 12 months, and research and development.

Honey Insurance is underwritten by RACQ, one of Australia’s largest insurance providers, and offers home, contents and landlord coverage. Customers get $250 AUD worth of smart sensors to monitor for the top three risks to homes: flooding, fire and theft. For example, the sensors look for things like leaky water pipes, smoke and open garage doors. Joffe said half of insurance claims are avoidable and the sensors help prevent incidents. As an incentive, Honey Insurance customers get 8% off their premiums if their sensors are switched on.

The sign-up process for Honey Insurance is also designed to be simple. Joffe said customers can purchase insurance in as little as three minutes and the company avoids using confusing jargon. Over the long-term, Honey Insurance will also use publicly available information and satellite data to automatically update policies if a customer makes changes to their home, like a new extension or pool.

Joffe said another problem in Australia is underinsurance, which affects about four out of five Australians. Last year, 183,000 home claims were declined or withdrawn, and the average claim size was $8,400, up 16% from the year before. As a result, each year customers need to pay a total of $1.5 billion out of pocket.

To address underinsurance, Honey Insurance has taken steps like a 30% safety margin for a customer’s sum insured and four time the usual home office coverage, to the value of $20,000.

“We have far more electronics in our houses than 20 years ago, and we work far more from home than before COVID—it makes sense your insurance policy should take this into account,” Joffe said.

In a statement, David Carter, CEO of RACQ, said, “Investing in Honey Insurance is an opportunity to share in the innovation and increase the scale of our insurance portfolio to benefit our 1.8 million members and their communities.”

Solar concentration startup Heliogen basks in $108M of new funding

Sunlight is a great source of energy, but it rarely gets hot enough to fry an egg, let alone melt steel. Heliogen aims to change that with its high-tech concentrated solar technique, and has raised more than a hundred million dollars to test its 1,000-degree solar furnace to a few game mines and refineries.

We covered Heliogen when it first made its debut in 2019, and the details in that article still get at the core of the company’s tech. Computer vision techniques are used to carefully control a large set of mirrors, which reflect and concentrate the sun’s light to the extent that it can reach in excess of 1,000 degrees Fahrenheit, almost twice what previous solar concentrators could do. “It’s like a death ray,” founder Bill Gross explained then.

That lets the system replace fossil fuels and other legacy systems in many applications where such temperatures are required, for example mining and smelting operations. By using a Heliogen concentrator, they could run on sunlight during much of the day and only rely on other sources at night, potentially halving their fuel expenditure and consequently both saving money and stepping toward a greener future.

Both goals hint at why utilities and a major mining and steel-making company are now investors. Heliogen raised a $25M A-2, led by Prime Movers Lab, but soon also pulled together a much larger “bridge extension round” in their terminology of $83M that brought in the miner ArcelorMittal, Edison International, Ocgrow Ventures, A.T. Gekko, and more.

The money will be used both to continue development of the “Sunlight Refinery,” as Heliogen calls it, and deploy some actual on-site installations that would work in real production workflows at scale. “We are constantly making design and cost improvements to increase efficiency and decrease costs,” a representative of the company told me.

One of those pilot sites will be in Boron, CA, where Rio Tinto operates a borates mine and will include Heliogen’s tech as part of its usual on-site processes, according to an MOU signed in March. Another MOU with ArcelorMittal will “evaluate the potential of Heliogen’s products in several of ArcelorMittal’s steel plants.” Facilities are planned in the U.S., MENA, and Asia Pacific areas.

Beyond mining and smelting, the technique could be used to generate hydrogen in a zero-carbon way. That would be a big step towards building a working hydrogen infrastructure for next-generation fuel supply, since current methods make it difficult to do without relying on fossil fuels in the first place. And no doubt there are other industrial processes that could benefit from a free and zero-carbon source of high heat.

“We’re being granted the resources to do more projects that address the most carbon-intensive human activities and work toward our goals of lowering the price and emissions of energy for everyone on the planet,” Gross said in a release announcing the round(s). “We thank all of our investors for enabling us to pursue our mission and offer the world technology that will allow it to achieve a post-carbon economy.”