DocuSign has filed confidentially for IPO

DocuSign is gearing up to go public in the next six months, sources tell TechCrunch.

The company, which pioneered the e-signature, has now filed confidentially, we are hearing.

Like Dropbox, which is finally going public this week, San Francisco-based DocuSign has been an anticipated IPO for several years now. It’s raised over $500 million since it was founded in 2003 and has been valued at $3 billion. Kleiner Perkins, Bain Capital, Intel Capital, GV (Google Ventures) and Dell are amongst the many well-known names which have invested in DocuSign.

But like many “unicorns” these days, the company took its time, spending 15 years as a private company. The DocuSign team decided that 2018 is the year for its debut and is targeting an IPO in either the second or third quarter.

DocuSign, which competes with HelloSign and Adobe Sign, amongst others, has been on a mission to get the world’s businesses to sign documents online. The team has worked with large enterprises like T-Mobile, Salesforce, Morgan Stanley and Bank of America.

The company has a tiered business model, with corporations paying more for added services. Public investors will be evaluating DocuSign both on its revenue growth and customer retention.

North America is its largest market, but it’s also been focused on expanding throughout the world, including the U.K., France, Australia, Brazil, Singapore and Japan.

Since its inception, DocuSign has undergone several management changes. Early last year, Dan Springer took the helm. He was formerly CEO of Responsys, which went public and then was bought by Oracle for $1.5 billion.

Keith Krach, who is now chairman, had been running the company since 2011. Krach was previously CEO of Ariba, which was acquired by SAP for $4.3 billion.


Apple, IBM add machine learning to partnership with Watson-Core ML coupling

Apple and IBM may seem like an odd couple, but the two companies have been working closely together for several years now. That has involved IBM sharing its enterprise expertise with Apple and Apple sharing its design sense with IBM. The companies have actually built hundreds of enterprise apps running on iOS devices. Today, they took that friendship a step further when they announced they were providing a way to combine IBM Watson machine learning with Apple Core ML to make the business apps running on Apple devices all the more intelligent.

The way it works is a customer builds a machine learning model using Watson, taking advantage of data in an enterprise repository to train the model. For instance, a company may want to help field service techs point their iPhone camera at a machine and identify the make and model to order the correct parts. You could potentially train a model to recognize all the different machines using Watson’s image recognition capability.

The next step is to convert that model into Core ML and include it in your custom app. Apple introduced Core ML at the Worldwide Developers Conference last June as a way to make it easy for developers to move machine learning models from popular model building tools like TensorFlow, Caffe or IBM Watson to apps running on iOS devices.

After creating the model, you run it through the Core ML converter tools and insert it in your Apple app. The agreement with IBM makes it easier to do this using IBM Watson as the model building part of the equation. This allows the two partners to make the apps created under the partnership even smarter with machine learning.

“Apple developers need a way to quickly and easily build these apps and leverage the cloud where it’s delivered. [The partnership] lets developers take advantage of the Core ML integration,” Mahmoud Naghshineh, general manager for IBM Partnerships and Alliances explained.

To make it even easier, IBM also announced a cloud console to simplify the connection between the Watson model building process and inserting that model in the application running on the Apple device.

Over time, the app can share data back with Watson and improve the machine learning algorithm running on the edge device in a classic device-cloud partnership. “That’s the beauty of this combination. As you run the application, it’s real time and you don’t need to be connected to Watson, but as you classify different parts [on the device], that data gets collected and when you’re connected to Watson on a lower [bandwidth] interaction basis, you can feed it back to train your machine learning model and make it even better,” Naghshineh said.

The point of the partnership has always been to use data and analytics to build new business processes, by taking existing approaches and reengineering them for a touch screen.

“This adds a level of machine learning to that original goal moving it forward to take advantage of the latest tech. “We are taking this to the next level through machine learning. We are very much on that path and bringing improved accelerated capabilities and providing better insight to [give users] a much greater experience,” Naghshineh said.

World’s largest SSD capacity now stands at 100TB

That didn't take long — just a month after Samsung released a record-setting 30TB SSD, a rival has claimed the throne. Nimbus Data has unveiled the ExaDrive DC100, which crams 100TB of 3D flash memory into a standard 3.5-inch SATA form factor. For c…

Qualcomm’s former exec chair will exit after exploring an acquisition bid

There’s a new twist in the BroadQualm saga this afternoon as Qualcomm has said it won’t renominate Paul Jacobs, the former executive chairman of the company, after he notified the board that he decided to explore the possibility of making a proposal to acquire Qualcomm.

The last time we saw such a huge exploration to acquire a company was circa 2013, when Dell initiated a leveraged buyout to take the company private in a deal worth $24.4 billion. This would be of a dramatically larger scale, and there’s a report by the Financial Times that Jacobs approached Softbank as a potential partner in the buyout. Jacobs is the son of Irwin Jacobs, who founded Qualcomm, and rose to run the company as CEO from 2005 to 2014. Successfully completing a buyout of this scale would, as a result, end up keeping the company that his father founded in 1985 in the family.

All this comes following Broadcom’s decision to drop its plans to try to complete a hostile takeover of Qualcomm, which would consolidate two of the largest semiconductor companies in the world into a single unit. Qualcomm said the board of directors would instead consist of just 10 members.

“Following the withdrawal of Broadcom’s takeover proposal, Qualcomm is focused on executing its business plan and maximizing value for shareholders as an independent company,” the company said in a statement. “There can be no assurance that Dr. Jacobs can or will make a proposal, but, if he does, the Board will of course evaluate it consistent with its fiduciary duties to shareholders.”

Broadcom dropped its attempts after the Trump administration decided to block the deal altogether. The BroadQualm deal fell into purgatory following an investigation by the Committee on Foreign Investment in the United States, or CFIUS, and then eventually led to the administration putting a stop to the deal — and potentially any of that scale — while Broadcom was still based in Singapore. Broadcom had intended to move to the United States, but the timing was such that Qualcomm would end up avoiding Broadcom’s attempts at a hostile takeover.

BroadQualm has been filled with a number of twists and turns, coming to a chaotic head this week with the end of the deal. Qualcomm removed Jacobs from his role as executive chairman and installed an independent director, and then delayed the shareholder meeting that would give Broadcom an opportunity to pick up the votes to take over control of part of Qualcomm’s board of directors. The administration then handed down its judgment, and Qualcomm pushed up its shareholder meeting as a result to ten days following the decision.

It’s not clear if Jacobs would be able to piece together the partnerships necessary to complete a buyout of this scale. But it’s easy to read between the lines of Qualcomm’s statement — which, as always, has to say it will fulfill its fiduciary duty to its shareholders. The former CEO and executive chairman has quietly been a curious figure to this whole process, and it looks like the BroadQualm saga is nowhere near done.

Enterprise subscription services provider Zuora has filed for an IPO

Zuora, which helps businesses handle subscription billing and forecasting, filed for an initial public offering this afternoon following on the heels of Dropbox’s filing earlier this month.

Zuora’s IPO may signal that Dropbox going public, and seeing a price range that while under its previous valuation seems relatively reasonable, may open the door for coming enterprise initial public offerings. Cloud security company Zscaler also made its debut earlier this week, with the stock doubling once it began trading on the Nasdaq. Zuora will list on the New York Stock Exchange under the ticker “ZUO.” Zuora CEO Tien Tzuo told The Information in October last year that it expected to go public this year.

Zuora’s numbers show some revenue growth, with its subscriptions services continue to grow. But its losses are a bit all over the place. While the costs for its subscription revenues is trending up, the costs for its professional services are also increasing dramatically, going from $6.2 million in Q4 2016 to $15.6 million in Q4 2017. The company had nearly $50 million in overall revenue in the fourth quarter last year, up from $30 million in Q4 2016.

But, as we can see, Zuora’s “professional services” revenue is an increasing share of the pie. In Q1 2016, professional services only amounted to 22% of Zuora’s revenue, and it’s up to 31% in the fourth quarter last year. It also accounts for a bigger share of Zuora’s costs of revenue, but it’s an area that it appears to be investing more.

Zuora’s core business revolves around helping companies with subscription businesses — like, say, Dropbox — better track their metrics like recurring revenue and retention rates. Zuora is riding a wave of enterprise companies finding traction within smaller teams as a free product and then graduating them into a subscription product as more and more people get on board. Eventually those companies hope to have a formal relationship with the company at a CIO level, and Zuora would hopefully grow up along with them.

Snap effectively opened the so-called “IPO window” in March last year, but both high-profile consumer IPOs — Blue Apron and Snap — have had significant issues since going public. While both consumer companies, it did spark a wave of enterprise IPOs looking to get out the door like Okta, Cardlytics, SailPoint and Aquantia. There have been other consumer IPOs like Stitch Fix, but for many firms, enterprise IPOs serve as the kinds of consistent returns with predictable revenue growth as they eventually march toward an IPO.

The filing says it will raise up to $100 million, but you can usually ignore that as it’s a placeholder. Zuora last raised $115 million in 2015, and was PitchBook data pegged the valuation at around $740 million, according to the Silicon Valley Business Journal. Benchmark Capital and Shasta Ventures are two big investors in the company, with Benchmark still owning around 11.1% of the company and Shasta Ventures owning 6.5%. CEO Tien Tzuo owns 10.2% of the company.

NexGenT wants to rethink bootcamps with programs for network engineering certifications

Developer bootcamps — several-month training programs that are designed to help people get up to speed with the technical skills they need to become a developer — exploded in popularity in the early part of the decade, but there’s been a bit of a shakedown on the space recently.

And that could be a product of a lot of things, but for Jacob Hess and Terry Kim, it’s just not enough time to become a fully-fledged developer. With training in the Air Force, where both had to work on these kinds of compressed programs for entry-level technicians, both decided to try their own approach. The end result is NexGenT, which is own kind of bootcamp — but it’s for getting a certificate in network management, and not a one-size-fits-all sticker as a developer. That approach, which includes a 16-week class, is considerably more reasonable and helps get people industry-ready with a skill that’s teachable in that compressed period of time, Hess says. The company is launching out of Y Combinator’s winter class this year.

“There are 500,000 open IT jobs, but when you look at that number, what’s more interesting is so many of them are IT operation roles, and the remaining is software development,” Hess said. “The bigger pie in IT is non-software programming jobs. Cyber security is also huge because of the automation and AI. We want to create the stepping stone. Network engineering becomes a foundation for a lot of these jobs, whether you want to be a cloud architect and work for Amazon, it all starts with understanding and building a foundation around networking.”

The end result is a 16-week program where a batch of applicants gets a review, and a percentage of them are accepted into a cohort of students. They go through an engineering module, which teaches them the basics and mechanics of network engineering and learn about the IT industry. Students can go faster if they want — it’s primarily online — and then start working on labs where they are building their own lab, either physical or virtual. The process culminates in a project where the students have to roll out an HQ facility in two branch offices from design to technically implementing it.

The next phase is about getting them certifications for various technologies, which help them basically show that they are ready to start entering the workforce. Think of it as something similar to having a Github account where prospective employers can review the work, except the process is a lot more formalized and you end up with something concrete on the resume. The final phase is around career coaching and helping them get a job, which can last up to 6 months. Throughout this process, students have access to a mentor and live coaching where students can ask whatever questions they wish.

So, the process is not so dissimilar from the notion of a developer bootcamp. But at the same time, there’s a small-ish graveyard of developer bootcamps and some with issues. Galvanize in August said it would lay off around 11% of its staff, while Dev Bootcamp and Iron Yard shut down altogether. The knock on these camps is it’s hard to get developers ready to start shipping code in such a small period of time — but Kim argues that getting them certified and ready to be a network engineer is definitely something that’s doable in around 16 weeks.

“It’s more realistic,” Kim said. “For coding bootcamps, you have to go by off the portfolios and check their Github, and they have to pass that technical interview. In our world of IT operations, it’s not about the bachelor’s degree, it’s about the person having the knowledge. But the industry certifications come from third parties, and when they come out of our program and have two or three certifications. It’s enough to get into that entry-level job.”

It remains to be seen if this kind of an approach is going to work. NexGenT charges a tuition — around $12,000, which with maximum discounts hits around $6,500. The company offers a 36-month payment plan as well that comes with an enrollment fee, which stretches out that very steep ticket price. In reality, these zero-to-60 programs are designed to be for-profit, though there are some different models that take in a percentage of salary among other approaches. With that in mind, though, there’s always an opportunity to build a strong pipeline with certain companies, and if they can identify high-performing students they can offer more of a proof point and potentially use that as an opportunity to offer some variation of scholarship.

While this is more of a bootcamp-ish style program, there are already some IT certification programs through tools like Coursera. Google, in one instance, is offering financial aid for a batch of those students, and companies with deep pockets might be able to build out these kinds of pipeline programs on their own. Hess and Kim hope to offer some kind of high-touch approach, instead of just a class on a platform of many, that will give them an edge to be a preferred option.

TypingDNA launches Chrome extension that verifies your identity based on typing

TypingDNA has a new approach to verifying your identity based on how you type.

The startup, which is part of the current class at Techstars NYC, is pitching this as an alternative to two-factor authentication — namely, the security feature that sends unique codes to a separate device (usually your phone) to make sure someone else isn’t logging in with your password.

The problem with two factor? TypingDNA Raul Popa put it simply: “It’s a bad user experience … Nobody wants to use a different device.” (I know that TechCrunch writers have had two-factor issues of their own, like when they’re trying to log in on an airplane and can’t connect their phone.)

So TypingDNA allows users to verify their identity without having to whip out their phone. Instead, they just enter their name and password into a window, then TypingDNA will analyze their typing and confirm that it’s really them.

TypingDNA Authenticator - Animation

The startup’s business model revolves around working with partners to incorporate the technology, but it’s also launching a free Chrome extension that works as an alternative to two-factor authentication on a wide range of services, including Amazon Web Services, Coinbase and Gmail.

Popa said TypingDNA measures two key aspects of your typing: How long it takes you to reach a key and how long you keep the key pressed down. Apparently these patterns are unique; Popa showed me that the system could tell the difference between his typing and mine, and you can test it out for yourself on the TypingDNA website.

He also said that the company can adjust the strictness of the system, getting the rate of false positives as low as 0.1 percent. In the case of the Chrome authenticator, Popa said, “We minimize the false acceptance rate” — so you might get rejected if you’re typing in an unusual position, or if there’s some other reason you’re typing slower or faster than usual. But in that case, the authenticator will just ask you to try again.

And again, you can use the Chrome extension on a variety of sites. Most two-factor options include confirming a device using a QR code, which TypingDNA can grab. The two-factor codes are then sent to the TypingDNA extension (the codes are stored locally on your computer, not the company’s servers), and they’re revealed once you’ve verified your identity with the aforementioned typing.

You can visit TypingDNA to learn more and download the extension.

Salesforce will acquire enterprise e-commerce software startup CloudCraze

 Salesforce is set to buy CloudCraze, an enterprise e-commerce solution built on its cloud-based customer relationship management platform. Based in Chicago, CloudCraze announced on its site that it’s signed a definitive agreement to be acquired by Salesforce. The deal’s financial details were not disclosed. Read More