Starship Technologies picks up €50M from the EU’s investment arm to expand its fleet of autonomous delivery robots
Starship Technologies, one of the bigger names in the world of autonomous delivery robots — those little caboose-like, boxy delivery vehicles that self-drive around cities — has been on a roll during Covid-19, providing extra (unmanned) horsepower to distribute food and other goods between stores or restaurants and consumers, at a time when consumers were either reluctant or being ordered to stay at home to minimize the spread of the virus. Now it’s picking up some funding along with an endorsement Europe to further its growth.
The startup has received €50 million (just under $57 million at today’s rates) from the European Investment Bank, the funding arm of the European Union. Starship Technologies is describing this as a “quasi-equity facility”, meaning there is a venture loan involved in the mix.
It is not disclosing its valuation with this investment, but Alastair Westgarth said that this doesn’t rule out raising further funding from investors. Starship raised $40 million Series A led by Morpheus Ventures back in 2019, and last January according to Pitchbook data also raised a further $17 million with strategic backers TDK Ventures (the investment arm of the Japanese electronics giant) and Goodyear Ventures among the investors. It has now made more than 2.5 million commercial deliveries (up from 2 million in October 2021) and travelled over 3 million miles globally. Westgarth said that on average, its fleet is making 10,000 deliveries per day.
Based out of Los Angeles, Starship initially made its name, back in 2017, running pilots with delivery companies in the U.S. — Doordash and Postmates (now part of Uber) — and then deployments in closed campus environments. It also butted heads around that time with city regulators in San Francisco, and it has yet to return to that city. It’s also had a significant presence in Europe, with its primary R&D operation based out of Tallinn, in Estonia (hence the financial endorsement from the EU), and its first substantial city deployment in Milton Keynes in the UK. Prices for the service can vary by city and location, but as an example a service that it provides to grocery chain Coop in Milton Keynes is made for a flat fee of 99 pence.
In the last two years, Starship’s name has been coming up a lot as a delivery partner helping companies get food order to customers at a time when delivery drivers were in shorter supply, people wanted to move around less, and generally come into less contact with humans. The Milton Keynes service alone saw hundreds of thousands of deliveries, and Starship started to sign on some significant partners. In the UK, the list includes the grocery chains Tesco, Coop and Budgens, which partner with Starship primarily as a delivery vehicle not for its mega grocery stores, but for its centrally-located, smaller-format shops, which act as ‘dark stores’ stocking the items that Starship delivers to smaller radiuses around them. People order Starship deliveries via the startup’s iOS and Android apps.
Today the campus deployments are a majority of Starship’s business — some 70% — but the signs are pointing to a likely shift, Westgarth said.
“Grocery will be larger in a year to 18 months,” he said. The addressable market for campuses that would likely use Starship’s services is around 400-500, he said, “but grocery is billions of dollars. We are chasing delivery services around the world. We can deliver like anyone on a bike, scooter or car, but we’re cheaper, and our robots get cheaper each year.” The average battery life is 18 hours and a typical robot can travel around 40km/day.
The company now operates its fleet as a level 4 autonomous system, meaning humans are monitoring at an operations center for issues, and can if need be take over if a vehicle finds itself in an unexpected pickle, but that is not the default.
“99% of the time our robots have nobody involved. We make many deliveries without anyone involved,” Westgarth said.
The funding from the EIB ticks a couple of different boxes for the EU. First, it has been looking to promote more sustainable forms of transportation, both to reduce emissions and to reduce traffic on the roads. Second, it’s had a long-term goal of backing tech startups to further its standing in the digital economy.
“Electric vehicles in all shapes and sizes will be part of our future, and can be a key part in the sustainable transport puzzle,” said EIB VP Thomas Östros in a statement. “Starship’s delivery robots are already proving their worth, and we are glad to support the company so that they can continue to develop their technology and scale-up their production.”
Tesla more than tripled its Austin gigafactory workforce in 2022
Tesla’s 2,500-acre manufacturing hub in Austin, Texas tripled its workforce last year, according to the company’s annual compliance report filed with county officials. Bloomberg first reported on the news.
The report filed with Travis County’s Economic Development Program shows that Tesla increased its Austin workforce from just 3,523 contingent and permanent employees in 2021 to 12,277 by the end of 2022. Bloomberg reports that just over half of Tesla’s workers reside in the county, with the average full-time employee earning a salary of at least $47,147. Outside of Tesla’s factory, the average salary of an Austin worker is $68,060, according to data from ZipRecruiter.
TechCrunch was unable to acquire a copy of the report, so it’s not clear if those workers are all full-time. If they are, Tesla has hired a far cry more full-time employees than it is contracted to do. According to the agreement between Tesla and Travis County, the company is obligated to create 5,001 new full-time jobs over the next four years.
The contract also states that Tesla must invest about $1.1 billion in the county over the next five years. Tesla’s compliance report shows that the automaker last year invested $5.81 billion in Gigafactory Texas, which officially launched a year ago at a “Cyber Rodeo” event. In January, Tesla notified regulators that it plans to invest another $770 million into an expansion of the factory to include a battery cell testing site and cathode and drive unit manufacturing site. With that investment will come more jobs.
Tesla’s choice to move its headquarters to Texas and build a gigafactory there has helped the state lead the nation in job growth. The automaker builds its Model Y crossover there and plans to build its Cybertruck in Texas, as well. Giga Texas will also be a model for sustainable manufacturing, CEO Elon Musk has said. Last year, Tesla completed the first phase of what will become “the largest rooftop solar installation in the world,” according to the report, per Bloomberg. Tesla has begun on the second phase of installation, but already there are reports of being able to see the rooftop from space. The goal is to generate 27 megawatts of power.
Musk has also promised to turn the site into an “ecological paradise,” complete with a boardwalk and a hiking/biking trail that will open to the public. There haven’t been many updates on that front, and locals have been concerned that the site is actually more of an environmental nightmare that has led to noise and water pollution. The site, located at the intersection of State Highway 130 and Harold Green Road, east of Austin, is along the Colorado River and could create a climate catastrophe if the river overflows.
The site of Tesla’s gigafactory has also historically been the home of low-income households and has a large population of Spanish-speaking residents. It’s not clear if the jobs at the factory reflect the demographic population of the community in which it resides.
Launch startup Stoke Space rolls out software tool for complex hardware development
Stoke Space, a company that’s developing a fully reusable rocket, has unveiled a new tool to let hardware companies track the design, testing and integration of parts. The new tool, Fusion, is targeting an unsexy but essential aspect of the hardware workflow.
It’s a solution born out of “ubiquitous pain in the industry,” Stoke CEO Andy Lapsa said in a recent interview. The current parts tracking status quo is marked by cumbersome, balkanized solutions built on piles of paperwork and spreadsheets. Many of the existing tools are not optimized “for boots on the ground,” but for finance or procurement teams, or even the C-suite, Lapsa explained.
In contrast, Fusion is designed to optimize simple inventory transactions and parts organization, and it will continue to track parts through their lifespan: as they are built into larger assemblies and go through testing. In an extreme example, such as hardware failures, Fusion will help teams connect anomalous data to the exact serial numbers of the parts involved.
“If you think about aerospace in general, there’s a need and a desire to be able to understand the part pedigree of every single part number and serial number that’s in an assembly,” Lapsa said. “So not only do you understand the configuration, you understand the history of all of those parts dating back to forever.”
While Lapsa clarified that Fusion is the result of an organic in-house need for better parts management – designing a fully reusable rocket is complicated, after all – turning it into a sell-able product was a decision that the Stoke team made early on. It’s a notable example of a rocket startup generating pathways for revenue while their vehicle is still under development.
Fusion offers particular relevance to startups. Many existing tools are designed for production runs – not the fast-moving research and development environment that many hardware startups find themselves, Lapsa added. In these environments, speed and accuracy are paramount.
Brent Bradbury, Stoke’s head of software, echoed these comments.
“The parts are changing, the people are changing, the processes are changing,” he said. “This lets us capture all that as it happens without a whole lot of extra work.”
Amid a boom in AI accelerators, a UC Berkeley-focused outfit, House Fund, swings open its doors
Companies at the forefront of AI would naturally like to stay at the forefront, so it’s no surprise they want to stay close to smaller startups that are putting some of their newest advancements to work.
Last month, for example, Neo, a startup accelerator founded by Silicon Valley investor Ali Partovi, announced that OpenAI and Microsoft have offered to provide free software and advice to companies in a new track focused on artificial intelligence.
Now, another Bay Area outfit — House Fund, which invests in startups with ties to UC Berkeley — says it is launching an AI accelerator and that, similarly, OpenAI, Microsoft, Databricks, and Google’s Gradient Ventures are offering participating startups free and early access to tech from their companies, along with mentorship from top AI founders and executives at these companies.
We talked with House Fund founder Jeremy Fiance over the weekend to get a bit more color about the program, which will replace a broader-based accelerator program House Fund has run and whose alums include an additive manufacturing software company, Dyndrite, and the managed app development platform Chowbotics, whose most recent round in January brought the company’s total funding to more than $60 million.
For founders interested in learning more, the new AI accelerator program runs for two months, kicking off in early July and ending in early September. Six or so companies will be accepted, with the early application deadline coming up next week on April 13th. (The final application deadline is on June 1.) As for the time commitment involved across those two months, every startup could have a different experience, says Fiance. “We’re there when you need us, and we’re good at staying out of the way.”
There will be the requisite kickoff retreat to spark the program and founders to get to know one another. Candidates who are accepted will also have access to some of UC Berkeley’s renowned AI professors, including Michael Jordan, Ion Stoica, and Trevor Darrell. And they can opt into dinners and events in collaboration with these various constituents.
As for some of the financial dynamics, every startup that goes through the program will receive a $1 million investment on a $10 million post-money SAFE note. Importantly, too, as with the House Fund’s venture dollars, its AI accelerator is seeking startups that have at least one Berkeley-affiliated founder on the co-founding team. That includes alumni, faculty, PhDs, postdocs, staff, students, dropouts, and other affiliates.
There is no demo day. Instead, says Fiance, founders will receive “directed, personal introductions” to the VCs who best fit with their startups.
Given the buzz over AI, the new program could supercharge House Fund, the venture organization, which is already growing fast. Fiance launched it in 2016 with just $6 million and it now manages $300 million in assets, including on behalf of Berkeley Endowment Management Company and the University of California.
At the same time, the competition out there is fierce and growing more so by the day.
Though OpenAI has offered to partner with House Fund, for example, the San Francisco-based company announced its own accelerator back in November. Called Converge, the cohort was to be made up of 10 or so founders who received $1 million each and admission to five weeks of office hours, workshops and other events that ended and that received their funding from the OpenAI Startup Fund.
Y Combinator, the biggest accelerator in the world, is also oozing with AI startups right now, all of them part of a winter class that will be talking directly with investors this week via demo days that are taking place tomorrow, April 5th, and on Thursday.
Interviews1 year ago
Interview with Jean-Francois Desormeaux, Real Estate Investor
Business News12 months ago
NFTMagazine.com Is Bringing NFTMag Conference 2022 to Miami this Year Says JetSetFly
Technology8 months ago
General Atlantic buys out SoftBank’s 15% stake in edtech Kahoot, now valued at about $152M vs the $215M SoftBank ponied up 2 years ago
Technology6 months ago
Amplio helps companies find components when supply chain breaks down
Interviews1 year ago
Paying it Forward — Meet Dr. Jonathan Kenigson, the Founder of the World’s Leading Think-Tank in the Quadrivium
Interviews6 months ago
Interview with Justice Mitchell, A 16-year-old Student-Athlete Who Received a Basketball Scholarship Offer from Pennsylvania University Greater Allegheny
Entrepreneurship1 year ago
600% In Under 5 Years, Financial Advisors Grow Business By Podcasting And YouTube
Entrepreneurship1 year ago
Muminovic Benjamin E-commerce on Shopify the Course of the Business Man