Rocket Lab CEO Peter Beck explains why the company needs a bigger rocket, and why it’s going public to build it

Rocket Lab packed a ton of news into Monday to kick off this week: It’s going public via a SPAC merger, for one, and it’s also building a new, larger launch vehicle called Neutron to support heavier payloads. I spoke to Rocket Lab founder and CEO Peter Beck about why it’s building Neutron now, and why it’s also choosing to go public at the same time. Unsurprisingly, the two things are tightly linked.

“We have the benefit of flying Electron [Rocket Lab’s current, smaller launch vehicle] for a lot of customers. and we also have a Space Systems Division that supplies components into a number of spacecraft, including some of the mega constellations,” Beck told me. “So we have very strong relationships with, with a lot of different customers, and I think we get unique insight on where the industry is going, and where the where the pain points are.”

Those pain points informed Neutron, which is a two-stage reusable rocket. Rocket Lab already broke with Beck’s past thinking on what the launch market needed by developing partial reusability for Electron, and it’s going further still with Neutron, which will include a first-stage that returns to Earth and lands propulsively on a platform stationed at sea, much like SpaceX’s Falcon 9. But the market has shifted since Rocket Lab built Electron – in part because of what it helped unlock.

“The creation of Neutron came from from two discrete factors: One, the current need in the marketplace today. Also, if you project it forward a little bit, you know, Neutron will deliver the vast majority – over 90% of – all the satellites that, that are around or in some form of planning. And if you look at those satellites, 80% of them are mega constellations, by volume. So, in talking with, with a bunch of different customers, it was really, really apparent that a mega constellation-building machine is what the market really needs.”

Beck says that combining that market needs with a historical analysis that showed most large launch vehicles have taken off half-full resulted in them arriving at Neutron’s 8 metric ton (just over 17,600 lbs) total cargo mass capacity. it should put it in the sweet spot where it takes off full nearly every time, but also can still meet the mass requirement needs of just about every satellite customer out there, both now and in the future.

“We’re covered in scars and battle wounds from the development of Electron,” “The one thing that that Elon and I agree on very strongly is, by far the hardest part of a rocket is actually scaling it – getting to orbit is hard, but actually scaling manufacturing is ridiculously hard. Now, the good news is that we’ve been through all of that, and manufacturing ins’t just as product on the floor; it’s ERP systems, quality systems, finance, supply chain and so on and so forth. So all that infrastructure is is built.”

In addition to the factory and manufacturing processes and infrastructure, Beck notes that Electron and Neutron will share size-agnostic elements like computing and avionics, and much of the work done to get Electron certified for launch will also apply to Neutron, realizing further cost and time savings relative to what was required to get Electron up and flying. Beck also said that the process of making Electron has just made Rocket Lab extremely attuned to costs overall, and that will definitely translate to how competitive it can be with Neutron.

“Because electron has a $7.5 million sticker price, we’ve just been forced into finding ways to do things hyper efficiently,” he said. “If you’ve got a $7.5 million sticker price, you can’t spend $2 million on flight safety analysis, payload environmental analysis, etc – you just can’t do that. With a $60 or $80 million vehicle that you can amortize that. So we’ve kind of been forced into doing everything hyper, hyper efficiently. And it’s not just systems; it includes fundamental launch vehicle design. So when we apply all of those learnings to nNutron, we really feel like we’re gonna bring a highly competitive product to the marketplace.”

As for the SPAC merger, Beck said that the decision to go public now really boils down to two reasons: The first is to raise the capital required to build Neutron, as well as fund “other” projects. The other is to acquire the kind of “public currency” to pursue the kinds of acquisitions in terms of business that Rocket Lab is hoping to achieve. Why specifically pursue a SPAC merger instead of a traditional IPO? Efficiency and a fixed capital target, essentially.

“We were actually sort of methodically stepping towards an IPO at the time and, we were just sort of minding our own business, but it was clear we were pursued very vigorously by a tremendous number of potential SPAC partners,” Beck told me. “Ultimately, on the balance of timelines, this just really accelerated our ability to do the things we want to do. Because, yes, as you pointed out, that this kind of streamlined the process, but also provided certainty around proceeds.”

The SPAC transaction, once complete will result in Rocket Lab having approximately $750 million in cash to work with. One of the advantages of the SPAC route is that how much you raise via the public listing isn’t reliant on how the stock performs on the day – Beck and company know and can plan on that figure becoming available to them, barring any unexpected and unlikely barriers to the transaction’s closing.

“Having all the capital we need, sitting there ready to go, that really sets us up for a strong execution,” he said. “If you look at Rocket Lab’s history, we’ve only raised spend a couple of hundred million dollars to date, within all the things we’ve done. So capitalizing the company with $750 million – I would expect big things at that point.”


Early Stage is the premiere ‘how-to’ event for startup entrepreneurs and investors. You’ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, legal, PR, marketing and brand building. Each session also has audience participation built-in — there’s ample time included in each for audience questions and discussion.

Rocket Lab CEO Peter Beck explains why the company needs a bigger rocket, and why it’s going public to build it

Rocket Lab packed a ton of news into Monday to kick off this week: It’s going public via a SPAC merger, for one, and it’s also building a new, larger launch vehicle called Neutron to support heavier payloads. I spoke to Rocket Lab founder and CEO Peter Beck about why it’s building Neutron now, and why it’s also choosing to go public at the same time. Unsurprisingly, the two things are tightly linked.

“We have the benefit of flying Electron [Rocket Lab’s current, smaller launch vehicle] for a lot of customers. and we also have a Space Systems Division that supplies components into a number of spacecraft, including some of the mega constellations,” Beck told me. “So we have very strong relationships with, with a lot of different customers, and I think we get unique insight on where the industry is going, and where the where the pain points are.”

Those pain points informed Neutron, which is a two-stage reusable rocket. Rocket Lab already broke with Beck’s past thinking on what the launch market needed by developing partial reusability for Electron, and it’s going further still with Neutron, which will include a first-stage that returns to Earth and lands propulsively on a platform stationed at sea, much like SpaceX’s Falcon 9. But the market has shifted since Rocket Lab built Electron – in part because of what it helped unlock.

“The creation of Neutron came from from two discrete factors: One, the current need in the marketplace today. Also, if you project it forward a little bit, you know, Neutron will deliver the vast majority – over 90% of – all the satellites that, that are around or in some form of planning. And if you look at those satellites, 80% of them are mega constellations, by volume. So, in talking with, with a bunch of different customers, it was really, really apparent that a mega constellation-building machine is what the market really needs.”

Beck says that combining that market needs with a historical analysis that showed most large launch vehicles have taken off half-full resulted in them arriving at Neutron’s 8 metric ton (just over 17,600 lbs) total cargo mass capacity. it should put it in the sweet spot where it takes off full nearly every time, but also can still meet the mass requirement needs of just about every satellite customer out there, both now and in the future.

“We’re covered in scars and battle wounds from the development of Electron,” “The one thing that that Elon and I agree on very strongly is, by far the hardest part of a rocket is actually scaling it – getting to orbit is hard, but actually scaling manufacturing is ridiculously hard. Now, the good news is that we’ve been through all of that, and manufacturing ins’t just as product on the floor; it’s ERP systems, quality systems, finance, supply chain and so on and so forth. So all that infrastructure is is built.”

In addition to the factory and manufacturing processes and infrastructure, Beck notes that Electron and Neutron will share size-agnostic elements like computing and avionics, and much of the work done to get Electron certified for launch will also apply to Neutron, realizing further cost and time savings relative to what was required to get Electron up and flying. Beck also said that the process of making Electron has just made Rocket Lab extremely attuned to costs overall, and that will definitely translate to how competitive it can be with Neutron.

“Because electron has a $7.5 million sticker price, we’ve just been forced into finding ways to do things hyper efficiently,” he said. “If you’ve got a $7.5 million sticker price, you can’t spend $2 million on flight safety analysis, payload environmental analysis, etc – you just can’t do that. With a $60 or $80 million vehicle that you can amortize that. So we’ve kind of been forced into doing everything hyper, hyper efficiently. And it’s not just systems; it includes fundamental launch vehicle design. So when we apply all of those learnings to nNutron, we really feel like we’re gonna bring a highly competitive product to the marketplace.”

As for the SPAC merger, Beck said that the decision to go public now really boils down to two reasons: The first is to raise the capital required to build Neutron, as well as fund “other” projects. The other is to acquire the kind of “public currency” to pursue the kinds of acquisitions in terms of business that Rocket Lab is hoping to achieve. Why specifically pursue a SPAC merger instead of a traditional IPO? Efficiency and a fixed capital target, essentially.

“We were actually sort of methodically stepping towards an IPO at the time and, we were just sort of minding our own business, but it was clear we were pursued very vigorously by a tremendous number of potential SPAC partners,” Beck told me. “Ultimately, on the balance of timelines, this just really accelerated our ability to do the things we want to do. Because, yes, as you pointed out, that this kind of streamlined the process, but also provided certainty around proceeds.”

The SPAC transaction, once complete will result in Rocket Lab having approximately $750 million in cash to work with. One of the advantages of the SPAC route is that how much you raise via the public listing isn’t reliant on how the stock performs on the day – Beck and company know and can plan on that figure becoming available to them, barring any unexpected and unlikely barriers to the transaction’s closing.

“Having all the capital we need, sitting there ready to go, that really sets us up for a strong execution,” he said. “If you look at Rocket Lab’s history, we’ve only raised spend a couple of hundred million dollars to date, within all the things we’ve done. So capitalizing the company with $750 million – I would expect big things at that point.”


Early Stage is the premiere ‘how-to’ event for startup entrepreneurs and investors. You’ll hear firsthand how some of the most successful founders and VCs build their businesses, raise money and manage their portfolios. We’ll cover every aspect of company-building: Fundraising, recruiting, sales, legal, PR, marketing and brand building. Each session also has audience participation built-in — there’s ample time included in each for audience questions and discussion.

Space startup Gitai raises $17.1M to help build the robotic workforce of commercial space

Japanese space startup Gitai has raised a $17.1 million funding round, a Series B financing for the robotics startup. This new funding will be used for hiring, as well as funding the development and execution of an on-orbit demonstration mission for the company’s robotic technology, which will show its efficacy in performing in-space satellite servicing work. That mission is currently set to take place in 2023.

Gitai will also be staffing up in the U.S., specifically, as it seeks to expand its stateside presence in a bid to attract more business from that market.

“We are proceeding well in the Japanese market, and we’ve already contracted missions from Japanese companies, but we haven’t expanded to the U.S. market yet,” explained Gitai founder and CEO Sho Nakanose in an interview. So we would like to get missions from U.S. commercial space companies, as a subcontractor first. We’re especially interested in on-orbit servicing, and we would like to provide general-purpose robotic solutions for an orbital service provider in the U.S.”

Nakanose told me that Gitai has plenty of experience under its belt developing robots which are specifically able to install hardware on satellites on-orbit, which could potentially be useful for upgrading existing satellites and constellations with new capabilities, for changing out batteries to keep satellites operational beyond their service life, or for repairing satellites if they should malfunction.

Gitai’s focus isn’t exclusively on extra-vehicular activity in the vacuum of space, however. It’s also performing a demonstration mission of its technical capabilities in partnership with Nanoracks using the Bishop Airlock, which is the first permanent commercial addition to the International Space Station. Gitai’s robot, codenamed S1, is an arm–style robot not unlike industrial robots here on Earth, and it’ll be showing off a number of its capabilities, including operating a control panel and changing out cables.

Long-term, Gitai’s goal is to create a robotic workforce that can assist with establishing bases and colonies on the Moon and Mars, as well as in orbit. With NASA’s plans to build a more permanent research presence on orbit at the Moon, as well as on the surface, with the eventual goal of reaching Mars, and private companies like SpaceX and Blue Origin looking ahead to more permanent colonies on Mars, as well as large in-space habitats hosting humans as well as commercial activity, Nakanose suggests that there’s going to be ample need for low-cost, efficient robotic labor – particularly in environments that are inhospitable to human life.

Nakanose told me that he actually got started with Gitai after the loss of his mother – an unfortunate passing he said he firmly believes could have been avoided with the aid of robotic intervention. He began developing robots that could expand and augment human capability, and then researched what was likely the most useful and needed application of this technology from a commercial perspective. That research led Nakanose to conclude that space was the best long-term opportunity for a new robotics startup, and Gitai was born.

This funding was led by SPARX Innovation for the Future Co. Ltd, and includes funding form DcI Venture Growth Fund, the Dai-ichi Life Insurance Company, and EP-GB (Epson’s venture investment arm).

Astra awarded NASA launch contract for storm observation satellites

Astra, the Alameda-based space launch startup that recently announced its intent to go public via a SPAC merger, has secured a contract to deliver six cube satellites to space on behalf of NASA. Astra stands to be paid $7.95 million by the agency for fulfilment of the contract. This will be a key test of Astra’s responsive rocket capabilities, with a planned three-launch mission profile spanning up to four months, currently targeting sometime between January 8 and July 31 of 2022.

The satellites are for NASA’s Time-Resolved Observations of Precipitation Structure and Storm Intensity with a Constellation of SmallSats (TROPICS) mission, which is a science mission that will collect data about hurricanes and their formation, including temperature, pressure and humidity readings. Like the extremely long, tortured-for-an-acronym name of the mission suggests, the data will be collected using a small constellation of satellites, each roughly the size of a shoebox.\

Astra completed its second of three planned launches designed to ultimately achieve orbit late last year, and exceeded its own expectations by reaching space and nearly achieving orbit. The company said that based on the data it collected from that mission, the final remaining barriers to actually making orbit are all fixable via changes to its software. Based on that, Astra CEO and founder Chris Kemp said that it believes it’s now ready to begin flying commercial payloads.

Kemp was formerly CTO of NASA, and has co-founded a number of technology companies over the years as well. This latest NASA mission isn’t its first contracted launch – far from it, in fact, since the company has said it currently has more than 50 total missions on its slate from both private and government customers, with a total value of over $150 million in revenue.

Relativity Space unveils plans for a new, much larger and fully reusable rocket

3D-printed rocket company Relativity Space has just revealed what comes after Terran 1, the small launch vehicle it hopes to begin flying later this year. It’s next rocket will be Terran R, a much larger orbital rocket with around 20x the cargo capacity of Terran 1, that will also be distinguished from its smaller, disposable sibling by being fully reusable – across both first and second-stages, unlike SpaceX’s Falcon 9.

I spoke to Relativity Space CEO and founder Tim Ellis about Terran R, and how long it’s been in the works for the space startup. Ellis said that in fact, the vision every since Relativity’s time at Y Combinator has included larger lift rockets – and much more.

“When I founded Relativity five years ago, it always was inspired by seeing SpaceX launching and landing rockets, docking with the International Space Station, and this idea that going to Mars was critically important for humanity’s future, and really expanding the possibilities for human experience, on Earth and beyond,” Ellis told me. “But that all of the animations faded to black right when people walked out [of spaceship landing on Mars], and I believed that 3D printing had to be this inevitable technology that was going to build humanity’s industrial base on Mars, and that we needed to really inspire dozens, or even hundreds of companies to work on making this future happen.”

The long-term goal for Relativity Space, Ellis said, has always been to become an “end-product 3D printing company,” with its original Terran 1 light payload rocket simply representing the first of those products it’s bringing to market.

“3D printing is our new tech stack for aerospace, and really is rewriting something that we don’t feel has fundamentally changed over the last 60 years,” he said. “It’s really bringing automation that replaces the factory fixed tooling, supply chains, hundreds of thousands of parts, manual labor and slow iteration speed, with something that I believe is needed for the future on Earth, too.”

Terran R, which will have a payload capacity of over 20,000 kg (more than 44,000 lbs) to low-Earth orbit, is simply “the next logical step” for Relativity in that long-term vision of producing a wide range of products, including aerospace equipment for use right here on Earth. Ellis says that a larger launch vehicle makes sense given current strong customer demand for Terran 1, which has a max payload capacity of 1,250 kg (around 2,755 lbs) to low-Earth orbit, combined with the average size of satellites being launched today. Despite the boon in so-called ‘small’ satellites, many of the constellations being build today have individual satellites that weigh in excess of 500 kilograms (1,100 lbs), Ellis points out, which means that Terran R will be able to delivery many more at once for these growing on-orbit spacecraft networks.

A test fire of the new engine that Terran R will use for higher thrust capabilities.

“It’s really the same rocket architecture, it’s the same propellant, same factory, it’s the same printers, the same avionics and the same team that developed Terran 1,” Ellis said about the forthcoming rocket. That means that it’s actually relatively easy for the company to spin up its new production line, despite Terran R actually being quite functionally different than the current, smaller rocket – particularly when it comes to its full reusability.

As mentioned, Terran R will have both a reusable first and second stage. SpaceX’s Falcon 9’s first stage (a liquid fuel rocket booster) is reusable, and detaches from the second stage before quickly re-orienting itself and re-entering Earth’s atmosphere for a propulsive landing just after entering space. The Falcon 9 second stage is expendable, which is the space term for essentially just junk that’s discarded and eventually de-orbits and burns up on re-entry.

SpaceX had planned to try to make the Falcon 9 second stage reusable, but it would’ve required too much additional mass via heat shielding for it to make sense with the economics it was targeting. Ellis was light on details about Terran R’s specifics, but he did hint that some unique use of fairly unusual materials made possible though 3D printing, along with some sparing use of generative design, will be at work in helping the Relativity rocket’s second stage reusable in a sustainable way.

“Because it’s still entirely 3D-printed, we’re actually going to use more exotic materials, and design geometries that wouldn’t be possible at all, traditionally, to manufacture,” Ellis said. “It’s just too complicated looking; it would be way too difficult to manufacture traditionally in the ways that that Terran R is designed. And that will actually make it a much more reusable rocket, and really helped build the best reusable rocket possible.”

Terran R will also use a new upper stage engine that Relativity Space is designing, which is also unique compared to the existing engines used on Terran 1. It’s 3D printed as well, but uses a copper thrust chamber that will allow it to have higher overall power and thrust capabilities, according to Ellis. When I spoke to Ellis on Thursday evening, Relativity had just completed its first full success duration test of the new engine, a key step towards full production.

Ellis said that the company will share more about Terran R over the course of this year, but did note that the existing large 3D printers in its production facilities are already sized correctly to start building the new rocket – “the only change is software,” he said. He also added that some of the test sites Relativity has contracted to use at NASA’s Stennis Space Center are able to support testing of a rocket at Terran R’s scale, too, so it sounds like he’s planning for rapid progress on this new launch vehicle.

Relativity Space unveils plans for a new, much larger and fully reusable rocket

3D-printed rocket company Relativity Space has just revealed what comes after Terran 1, the small launch vehicle it hopes to begin flying later this year. It’s next rocket will be Terran R, a much larger orbital rocket with around 20x the cargo capacity of Terran 1, that will also be distinguished from its smaller, disposable sibling by being fully reusable – across both first and second-stages, unlike SpaceX’s Falcon 9.

I spoke to Relativity Space CEO and founder Tim Ellis about Terran R, and how long it’s been in the works for the space startup. Ellis said that in fact, the vision every since Relativity’s time at Y Combinator has included larger lift rockets – and much more.

“When I founded Relativity five years ago, it always was inspired by seeing SpaceX launching and landing rockets, docking with the International Space Station, and this idea that going to Mars was critically important for humanity’s future, and really expanding the possibilities for human experience, on Earth and beyond,” Ellis told me. “But that all of the animations faded to black right when people walked out [of spaceship landing on Mars], and I believed that 3D printing had to be this inevitable technology that was going to build humanity’s industrial base on Mars, and that we needed to really inspire dozens, or even hundreds of companies to work on making this future happen.”

The long-term goal for Relativity Space, Ellis said, has always been to become an “end-product 3D printing company,” with its original Terran 1 light payload rocket simply representing the first of those products it’s bringing to market.

“3D printing is our new tech stack for aerospace, and really is rewriting something that we don’t feel has fundamentally changed over the last 60 years,” he said. “It’s really bringing automation that replaces the factory fixed tooling, supply chains, hundreds of thousands of parts, manual labor and slow iteration speed, with something that I believe is needed for the future on Earth, too.”

Terran R, which will have a payload capacity of over 20,000 kg (more than 44,000 lbs) to low-Earth orbit, is simply “the next logical step” for Relativity in that long-term vision of producing a wide range of products, including aerospace equipment for use right here on Earth. Ellis says that a larger launch vehicle makes sense given current strong customer demand for Terran 1, which has a max payload capacity of 1,250 kg (around 2,755 lbs) to low-Earth orbit, combined with the average size of satellites being launched today. Despite the boon in so-called ‘small’ satellites, many of the constellations being build today have individual satellites that weigh in excess of 500 kilograms (1,100 lbs), Ellis points out, which means that Terran R will be able to delivery many more at once for these growing on-orbit spacecraft networks.

A test fire of the new engine that Terran R will use for higher thrust capabilities.

“It’s really the same rocket architecture, it’s the same propellant, same factory, it’s the same printers, the same avionics and the same team that developed Terran 1,” Ellis said about the forthcoming rocket. That means that it’s actually relatively easy for the company to spin up its new production line, despite Terran R actually being quite functionally different than the current, smaller rocket – particularly when it comes to its full reusability.

As mentioned, Terran R will have both a reusable first and second stage. SpaceX’s Falcon 9’s first stage (a liquid fuel rocket booster) is reusable, and detaches from the second stage before quickly re-orienting itself and re-entering Earth’s atmosphere for a propulsive landing just after entering space. The Falcon 9 second stage is expendable, which is the space term for essentially just junk that’s discarded and eventually de-orbits and burns up on re-entry.

SpaceX had planned to try to make the Falcon 9 second stage reusable, but it would’ve required too much additional mass via heat shielding for it to make sense with the economics it was targeting. Ellis was light on details about Terran R’s specifics, but he did hint that some unique use of fairly unusual materials made possible though 3D printing, along with some sparing use of generative design, will be at work in helping the Relativity rocket’s second stage reusable in a sustainable way.

“Because it’s still entirely 3D-printed, we’re actually going to use more exotic materials, and design geometries that wouldn’t be possible at all, traditionally, to manufacture,” Ellis said. “It’s just too complicated looking; it would be way too difficult to manufacture traditionally in the ways that that Terran R is designed. And that will actually make it a much more reusable rocket, and really helped build the best reusable rocket possible.”

Terran R will also use a new upper stage engine that Relativity Space is designing, which is also unique compared to the existing engines used on Terran 1. It’s 3D printed as well, but uses a copper thrust chamber that will allow it to have higher overall power and thrust capabilities, according to Ellis. When I spoke to Ellis on Thursday evening, Relativity had just completed its first full success duration test of the new engine, a key step towards full production.

Ellis said that the company will share more about Terran R over the course of this year, but did note that the existing large 3D printers in its production facilities are already sized correctly to start building the new rocket – “the only change is software,” he said. He also added that some of the test sites Relativity has contracted to use at NASA’s Stennis Space Center are able to support testing of a rocket at Terran R’s scale, too, so it sounds like he’s planning for rapid progress on this new launch vehicle.

Brandwatch is acquired by Cision for $450M, creating a PR, marketing and social listening giant

Online consumer intelligence and social media listening platform Brandwatch has been acquired by Cision, best known for its media monitoring and media contact database services, for $450 million, in a combined cash and shares deal. TechCrunch understands Brandwatch’s key executive team will be staying on. The move combines two large players to offer a broad range of services from PR to marketing and online customer engagement. The deal is expected to close in the second quarter of 2021.

Cision has a media contact database of approximately 1 million journalists and media outlets and claims to have over 75,000 customers. Brandwatch applies AI and machine learning the practice known as ‘social listening’.

Along the way, Brandwatch raised a total of around $65 million. It was Series A-funded by Nauta Capital, followed by Highland Europe and then Partech.

IN a statement, Giles Palmer, founder, and CEO of Brandwatch said: “We have always built Brandwatch with ambition… Now is the time to take the next step – joining a company of significant scale to create a business and a suite of products that can have an important global impact.”

Abel Clark, CEO of Cision said: “The continued digital shift and widespread adoption of social media is rapidly and fundamentally changing how brands and organizations engage with their customers. This is driving the imperative that PR, marketing, social, and customer care teams fully incorporate the unique insights now available into consumer-led strategies. Together, Cision and Brandwatch will help our clients to more deeply understand, connect and engage with their customers at scale across every channel.”

Brandwatch has been on an almost case-study of a journey from fundraising to acquisition to a merger, but less characteristically for a well-funded tech company, it did much of it from its home-town of Brighton, on the southern coast of England.

The financing journey began for Giles Palmer, with Angel funding in 2006. In 2010 Brandwatch raised $1.5m from Durrants, a marketing and PR firm, and Nauta Capital. In 2014 it raised $22 million in funding in a Series B round led by Highland Capital. That was followed by a $33M Series C financing led by Partech Ventures in 2015.

With the war chest, it went on to acquire BuzzSumo in 2017, a content marketing and influencer identification platform, for an undisclosed sum. And in 2019 Brandwatch merged with a similar business, Crimson Hexagon, creating a business with around $100 million in ARR. It also acquired the London-based SaaS research platform Qriously.

Brandwatch was recently named a leader in Forrester’s guide for buyers of social listening solutions.

Twitter’s ‘Super Follow’ creator subscription takes shots at Substack and Patreon

It’s been an all-around more ambitious year for Twitter. Following activist shareholder action last year that aimed to oust CEO Jack Dorsey, the company has been making long overdue product moves, buying up companies and aiming to push the envelope on how it can tap its network and drive new revenue streams. Things seem to be paying off for the company, as their share price sits at an all-time high — double that of its 2020 high.

Today, the company shared early details on its first ever paid product, a feature called “Super Follow” which aims to combine the community trends of Discord, the newsletter insights of Substack, the audio chat rooms of Clubhouse and the creator support of Patreon into a creator subscription. The company announced the service during its Analyst Day event Thursday morning.

Plenty of details are still up in the air for the feature, which notably does not have a launch timeline.

Image Credits: Twitter

Screenshots shared by Twitter showcase a feature that allows Twitter users to subscribe to their favorite creators for a monthly price (one screenshot details a $4.99 per month cost) and earn certain subscriber-only perks, including things like “exclusive content,” “subscriber-only newsletters,” “community access,” “deals & discounts,” and a “supporter badge” for subscribers. Creators in the program will also be able to paywall certain media they share, including tweets, fleets and chats they organize in Twitter’s Clubhouse competitor Spaces.

The company’s other big announcement of the event was “Communities,” a product that seems designed to compete with Facebook Groups but also will likely provide “Super Follow” networks a place to interact with creators in close cahoots. They also shared early details on a “safety mode” that will allow users to auto-block and mute abusive accounts.

Introducing paywalls into the Twitter feed could dramatically shift the mechanics of the service. Twitter has been pretty conservative over the years in building features that are intended for singular classes of users. Creator-focused features built for a network that is already home to so many creators could be a major threat to services like Patreon, which have largely popped up due to the lackluster monetization tools available from the big social platforms.

New revenue streams will undoubtedly be key to Twitter’s ambitious plan to double its revenues by 2023.

 

Foresite Capital raises $969 million fund to invest in healthcare startups across all stages of growth

Health and life science specialist investment firm Foresite Capital has raised a new fund, its fifth to date, totally $969 million in commitments from LPs. This is the firm’s largest fund to date, and was oversubscribed relative to its original target according to fund CEO and founder Dr. Jim Tananbaum, who told me that while the fundraising process started out slow in the early months of the pandemic, it gained steam quickly starting around last fall and ultimately exceeded expectations.

This latest fund actually makes up two separate investment vehicles, Foresite Capital Fund V, and Foresite Capital Opportunity Fund V, but Tananbaum says that the money will be used to fuel investments in line with its existing approach, which includes companies ranging from early- to late-stage, and everything in between. Foresite’s approach is designed to help it be uniquely positioned to shepherd companies from founding (they also have a company-building incubator) all the way to public market exit – and even beyond. Tananbaum said that they’re also very interested in coming in later to startups they have have missed out on at earlier stages of their growth, however.

Image Credits: Foresite Capital

“We can also come into a later situation that’s competitive with a number of hedge funds, and bring something unique to the table, because we have all these value added resources that we used to start companies,” Tananbaum said. “So we have a competitive advantage for later stage deals, and we have a competitive advantage for early stage deals, by virtue of being able to function at a high level in the capital markets.”

Foresite’s other advantage, according to Tananbaum, is that it has long focused on the intersection of traditional tech business mechanics and biotech. That approach has especially paid off in recent years, he says, since the gap between the two continues to narrow.

“We’ve just had this enormous believe that technology, and tools and data science, machine learning, biotechnology, biology, and genetics – they are going to come together,” he told me. “There hasn’t been an organization out there that really speaks both languages well for entrepreneurs, and knows how to bring that diverse set of people together. So that’s what we specialized i,n and we have a lot of resources and a lot of cross-lingual resources, so that techies that can talk to biotechies, and biotechies can talk to techies.”

Foresite extended this approach to company formation with the creation of Foresite Labs, an incubation platform that it spun up in October 2019 to leverage this experience at the earliest possible stage of startup founding. It’s run by Dr. Vik Bajaj, who was previously co-founder and Chief Science Officer of Alphabet’s Verily health sciences enterprise.

“What’s going on, or last couple decades, is that the innovation cycles are getting faster and faster,” Tananbaum said. “So and then at some point, the people that are having the really big wins on the public side are saying, ‘Well, these really big wins are being driven by innovation, and by quality science, so let’s go a little bit more upstream on the quality science.'”

That has combined with shorter and shorter healthcare product development cycles, he added, aided by general improvements in technology. Tananbaum pointed out that when he began Foresite in 2011, even, the time horizons for returns on healthcare investments were significantly longer, and at the outside edge of the tolerances of venture economics. Now, however, they’re much closer to those found in the general tech startup ecosystem, even in the case of fundamental scientific breakthroughs.

CAMBRIDGE – DECEMBER 1: Stephanie Chandler, Relay Therapeutics Office Manager, demonstrates how she and her fellow co-workers at the company administer their own COVID tests inside the COVID testing room at Relay Therapeutics in Cambridge, MA on Dec. 1, 2021. The cancer treatment development company converted its coat room into a room where employees get tested once a week. All 100+employees have been back in the office as a result of regular testing. Relay is a Foresite portfolio company. (Photo by Jessica Rinaldi/The Boston Globe via Getty Images)

“Basically, you’re seeing people now really look at biotech in general, in the same kind of way that you would look at a tech company,” he said. “There are these tech metrics that now also apply in biotech, about adoption velocity, other other things that may not exactly equate to immediate revenue, but give you all the core material that usually works over time.”

Overall, Foresite’s investment thesis focuses on funding companies in three areas – therapeutics at the clinical stage, infrastructure focused on automation and data generation, and what Tananbaum calls “individualized care.” All three are part of a continuum in the tech-enabled healthcare end state that he envisions, ultimately resulting “a world where we’re able to, at the individual level, help someone understand what their predispositions are to disease development.” That, Tananbaum suggests, will result in a transformation of this kind of targeted care into an everyday consumer experience – in the same way tech in general has taken previously specialist functions and abilities, and made them generally available to the public at large.

Berlin’s MorphAIs hopes its AI algorithms will put its early-stage VC fund ahead of the pack

MorphAIs is a new VC out of Berlin, aiming to leverage AI algorithms to boost its investment decisions in early-stage startups. But there’s a catch: it hasn’t raised a fund yet.

The firm was founded by Eva-Valérie Gfrerer who was previously head of Growth Marketing at FinTech startup OptioPay and her background is in Behavioural Science and Advanced Information Systems.

Gfrerer says she started MorphAIs to be a tech company, using AI to assess venture investments and then selling that as a service. But after a while, she realized the platform could be applied an in-house fund, hence the drive to now raise a fund.

MorphAIs has already received financing from some serial entrepreneurs, including: Max Laemmle, CEO & Founder Fraugster, previously Better Payment and SumUp; Marc-Alexander Christ, Co-Founder SumUp, previously Groupon (CityDeal) and JP Morgan Chase; Charles Fraenkl, CEO SmartFrog, previously CEO at Gigaset and AOL; Andreas Winiarski, Chairman & Founder awesome capital Group.

She says: “It’s been decades since there has been any meaningful innovation in the processes by which venture capital is allocated. We have built technology to re-invent those processes and push the industry towards more accurate allocation of capital and a less-biased and more inclusive start-up ecosystem.”

She points out that over 80% of early-stage VC funds don’t deliver the minimum expected return rate to their investors. This is true, but admittedly, the VC industry is almost built to throw a lot of money away, in the hope that it will pick the winner that makes up for all the losses.

She now plans to aim for a pre-seed/seed fund, backed by a team consisting of machine learning scientists, mathematicians, and behavioral scientists, and claims that MorphAIs is modeling consistent 16x return rates, after running real-time predictions based on market data.

Her co-founder is Jan Saputra Müller, CTO and Co-Founder, who co-founded and served as CTO for several machine learning companies, including askby.ai.

There’s one problem: Gfrerer’s approach is not unique. For instance, London-based Inreach Ventures has made a big play of using data to hunt down startups. And every other VC in Europe does something similar, more or less.

Will Gfrerer manage to pull off something spectacular? We shall have to wait and find out.