Announcing Redpoint VI

Today we are pleased to share the news that Redpoint has closed Redpoint VI, a $400 million early stage fund. Like its predecessor funds, Redpoint VI will be invested in Seed, Series A and Series B rounds of the next generation of industry-defining consumer and enterprise startups.

Redpoint was founded 15 years ago based on the core values of teamwork, respect and fairness and those principles still guide everything we do today. Since 2014 our companies have had 4 IPOs and 6 M&A events with a market cap in excess of $8 billion.  In total Redpoint  manages $3.8 billion with 434 companies funded and 136 IPOs and M&As.

But numbers only tell part of the story. Redpoint has been lucky to partner with many exceptional founders and develop deep, long-term relationships with people who change the world. There’s no better example than Andy Rubin, the creator of Android, and an entrepreneur Redpoint backed twice before becoming an entrepreneur-in-residence and then joining the firm this year as a venture partner.

Entrepreneurs are re-imagining the world at an ever faster pace. With Redpoint VI, we are excited to continue supporting founders pushing the forefront of technology, creating new markets, and transforming industries as we have with Stripe, Sonos, Twilio, PureStorage, HomeAway, NextDoor, RelateIQ, Zendesk, 2U, Qihoo 360, Kabam, Beepi and Luxe, among many others. We look forward to what comes next in support of the next generation of exceptional entrepreneurs.


Duo Security: Making Advanced Security Available to All

Today we are excited to announce that Redpoint is leading a growth investment in Duo Security, an emerging leader in the two-factor authentication market. Dug Song and his team have architected an enterprise security solution that is elegant, highly effective, and easy-to-use and deploy. We’re proud to back such a renowned security team expanding the two-factor authentication and access security market to all enterprises.

It is no secret that security breaches are the frequent subject of newspaper headlines. Hackers are becoming more and more sophisticated, and the cost of each breach continues to rise. One of the most common causes for these high-profile security breaches is employee credential theft. With more employees logging in remotely to a variety of corporate data and cloud services, hackers with stolen credentials can access large amounts of sensitive corporate data. While virtually all enterprises have advanced perimeter security defenses, these defenses are not optimized to stop a hacker logging in to a corporate server or cloud service with stolen, yet valid, employee credentials. Two-factor authentication solutions emerged to solve this problem initially through hardware-based token products that proved to be very expensive and cumbersome to use and (not immune from being hacked, as RSA found out a few years back). As a result, until recently, only the largest enterprises embraced two-factor authentication, leaving thousands of other enterprises vulnerable to security breaches based on credential theft.

Recognizing this opportunity, Dug Song and Jon Oberheide (both previously of Arbor Networks), set out to solve the problem by creating a flexible, easy-to-use, two-factor authentication solution for all enterprises leveraging the ubiquity of the smartphone. With Duo Push, users simply type in their credentials and with one-tap on their smartphones they can log into their corporate VPNs, SaaS platforms and on-premise applications. Entire enterprises can be deployed in a matter of hours through a fast self-enrollment process, removing the need for complicated provisioning of hard tokens or clunky mobile apps and SMS codes. Additionally, Duo Security provides easy integration with dozens of cloud apps and allows enterprises to create many custom security features and policies.

Sometimes the most interesting opportunities happen when the right technology meets the market at just the right time. In the case of Duo Security, enterprises of all sizes are realizing the perils of credential theft and the need for two-factor authentication for their employees. By providing the most secure, least invasive, most usable solution to this problem, it is no wonder that Duo Security has managed to quickly grow and land over 5,000 customers including: Facebook, NASA, Box, Paramount, Toyota, and WhatsApp. Dug and his team are committed to providing their customers advanced security solutions beyond two-factor authentication, and just today announced Duo Platform which allows IT teams to define policies for access, automate enforcement of controls based on risk, gain visibility into access-related security threats and get insight into the security profile of end user devices.

Redpoint’s growth fund looks to partner with emerging market leaders and founders who want to build large independent companies. We are very excited to be working with Dug and his team, which now includes Zack Urlocker as COO. Zack previously held that role at Redpoint portfolio company Zendesk and no doubt plans to bring the successful Zendesk growth playbook to Duo Security.

Congratulations Dug and team on the tremendous progress so far. We are looking forward to working with you on the journey ahead!



Tapping the mobile monetization Button!


Today I am excited to announce that Redpoint is leading a Series A investment in Button, the commerce enablement platform built for the mobile app economy. We are proud to support Mike Jaconi and an outstanding founding team. With their deep knowledge of the mobile commerce space and their combined engineering and operational talents, this team has a unique competitive advantage.

The emerging market for mobile app commerce is evolving rapidly and Button sits at the center of some of the most interesting challenges in tech right now.   As I wrote about previously, Facebook is on a $6.5B run rate on mobile and Apple and Google app stores are each on $10B+ run rates. Uber, the mobile commerce icon and early Button partner, is rumored to have done $1.5-2B in revenue last year.

Yet this is just the tip of the iceberg.  The smartphone has the potential to become the remote control for getting anything done with just a swipe or a tap, and unleash a tidal wave of commerce in the process.  But there are still many challenges left to address to make this a reality.  The market opportunity for players who can solve these problems and accelerate mobile app commerce is significant.

App discovery, and increasingly re-engagement, remain the largest friction points constraining mobile commerce.  There are over two million apps available to download on iOS and Android, yet only about a quarter of US mobile users download more than 1 app per month. It is increasingly difficult for app developers to rise above the noise and acquire users, and then re-engage these users over time.

Even in its early days Button’s product has proven incredibly useful to helping solve that challenge with partners like Uber and Resy.  Button is building out an in-app distribution network for mobile on-demand commerce apps to enable DeepLink commerce.  Put more simply, Button helps app developers drive traffic, engagement and transactions within other apps. They do this by leveraging native button-like placements and a combination of deep commerce integrations and cross-app loyalty. In doing so, Button converts app functionality into monetization, and introduces a new, native mobile “ad” format that we’ve been waiting for.

Button’s initial integration is with the startup reservation service Resy. After a consumer books a table, a prompt allows the user to set up a reminder to book an Uber right before the time of the reservation. If the user does not have the Uber app, it is downloaded seamlessly in the background.  This integration is a great channel for Uber to acquire new users and reengage existing ones, while also enabling Resy to provide a richer user experience and monetize its existing audience. Uber + Resy is just one of the many integrations that Button will enable.

Within mobile, we think most of the purchase intent for these commerce apps will be generated within other apps, but this intent is not being adequately captured today. Button is enabling a new channel for user acquisition and engagement, one that will allow apps to more closely connect together and provide the most seamless user experiences on mobile.

Most importantly, here at Redpoint, we make bets on people and we are proud to back Mike as he builds Button into a company that matters to our mobile first economy.  It also just happens that Mike meets the criteria of a successful founding CEO that I previously wrote about here. He saw the market opportunity for Button when he was working at Rakuten where he gained up close, first-hand knowledge and understanding of the opportunity.  He has the gift of passion and persuasion.  And he is relentless in his focus on execution.

Welcome to the Redpoint family Mike and the Button team!


Why Redpoint Doubled Down on Infer


When we consider investments, we look at a business’ market opportunity, its people, and its product. If the opportunity is big, the market is bound to get crowded because lots of companies will want to win in that space. That’s why at Redpoint, most of our investment decisions revolve around the people, and we look for teams or DNA that can actually go and win in their market.

We first invested in Infer’s Series A 18 months ago because it fit this investment philosophy. The company had a path-of-revenue product and early success with marquee customers like New Relic, Zendesk and Tableau. We knew that if Infer could prove repeatability and deliver predictive-as-a-service to companies of all sizes, that’d be huge. But most importantly, we were extremely impressed by CEO Vik Singh and his team. They were clearly talented from not only an entrepreneurial and technical perspective, but on the business side as well. With the recent addition of Jim Herbold, who grew Box’s annual recurring revenue from under $1 million to over $100 million, Infer has truly formed a dream team.

As a member of the board, I’ve enjoyed a front row seat as the company’s story has unfolded. Infer has grown revenue bookings 150% quarter after quarter, and consistently boosted customers’ win rates through applications that can be deployed easily by any business. Along the way, I’ve built trust with Vik and been able to see his talents at work. Since I’ve been on the other side of the table, I know how rare it is to find an entrepreneur who is so intelligent about decisions, who understands the strategy, and whom I can respect and challenge because he’s open to suggestions.

When it came time for Vik to raise the Series B funding, he garnered considerable VC interest due to the company’s great traction and vocal customers. At Redpoint, we have so much trust in Infer that we just had to go all-in and lead the B round as well. We have tremendous belief in this A+ team and their ability to win in a hot market, and we couldn’t be more excited about what’s to come.


How I Learned to Stop Circling and Love to Park in San Francisco

Today LuxeValet is launching out of beta in San Francisco and we are excited to announce our investment in the team. We are proud to back founders Curtis Lee and Craig Martin on their mission to transform a daily, painful experience like parking into one that gives people joy by letting them quickly and safely leave their car and get on with their day.

We were impressed by LuxeValet’s veteran team who saw an opportunity to transform the $25B annual parking business with an on-demand, valet-driven model. The team brings engineering, product and operations experience from Zynga, Groupon, Tesla and YouTube and has developed a sophisticated platform that makes the city parking process easy, efficient and affordable.

The parking problem in San Francisco, as with most cities, is awful by any measure.  The median price to park in a San Francisco city lot is $29/day and $375/month. In some neighborhoods, parking meters charge as much as $7/hour during periods of high-demand. Last year, 70,000 cars were towed in San Francisco and it costs at least $400 to get a car back. Instead of dealing with that hassle and cost, at the press of a button, a LuxeValet will meet you in front of your next meeting to take your car and park it in one of their secure spots for $5/hour and $15 max.

The LuxeValet team has been building the technical and operational foundation of the company for the past 18 months. LuxeValet has a fleet of pre-screened valets in bright blue jackets and dozens of insured and secure indoor parking lots all over the city. This allows them to deliver a great consumer experience at the push of a button. The valet experience also allows them to deliver one of my favorite features which is the LuxeValet will fill up or wash your car while you spend time with your family or attend your meeting.

Even more interesting are the economic advantages that happen to the model at scale. By obtaining parking spots en masse, LuxeValet brings down the price of spaces, making it the same cost and many times less than a traditional lot, while delivering a much better experience. Like most marketplaces this also has great network effects: more users mean keeping more valets busy, which means the valets make more. More riders mean more parking spots and lowered costs for the spots themselves.

We love these type of marketplace investments that reward each player in the virtuous cycle and are perpetuated by an amazing consumer experience.

Congratulations to the entire Luxe team from your friends at Redpoint.  We’re excited to be along for the ride.


The Power of Anonymity

All important social platforms start with a context that sets the stage for how people will express themselves and connect on those platforms. Facebook was private, tightly-connected relationships; Twitter was real-time, public discussion; Instagram was visual expression. This initial context is critical in defining the social interactions and reasons for engaging on a platform.

Secret, by orienting around anonymity, taps into raw and honest human emotion and allows people to communicate in ways they can’t on any other network. While I was at Twitter, I saw the incredible role pseudonymity and anonymity played in allowing people to broadcast and express themselves freely. From whistleblowers, to citizen journalists trying to get information out from under oppressive regimes, to the deeply personal, to the funniest parody accounts, anonymity allows expression that wouldn’t have otherwise happened.

But where Twitter is about putting a range of ideas out there for public consumption, Secret is much more about having an unfettered conversation with people closely connected to you, where individuals are free to express themselves without fear of embarrassment or judgment. We think it’s a fundamental and important part of social connectedness and we’re incredibly excited to back David Byttow, Chrys Bader, and the rest of the Secret team.

More importantly, at Redpoint we invest in great teams and we have been blown away by the Secret team’s ability to recruit, build and execute. They are one of the strongest teams we’ve seen and we think it gives them a huge competitive advantage to build and adapt a product to the emerging needs of their community. This is personally one of my first deals since I joined Redpoint and I’m really excited about working closely with the team on realizing the promise ahead of them. They understand and appreciate the power and responsibility that creating an anonymous network brings and we can’t wait to see what they build for their community.


Redpoint Backs BitGo

At Redpoint, we are strong believers in the potential of bitcoin to change the way transactions are conducted, both online and offline.  But this promising system of digital currency is still in its infancy, a reality that has been underscored by a spate of security troubles. In numerous cases, bitcoins have been lost or stolen when wallets have been compromised, when exchanges have been improperly secured, or even when individuals have been careless with their keys.  Bitcoin has relied heavily on people and institutions protecting their own keys, and this has been a point of failure for the currency and technology as a whole.

In other payment and Internet commerce systems, third party security providers have helped resolve these issues.  This includes Verisign for websites as well as the card issuers for credit cards and merchants.  We believe that BitGo has the potential to be that provider for the bitcoin industry, which is why we are excited to announce our investment in the company.

BitGo has built the first-ever, simple to use and enterprise-grade multi-signature technology that works with the existing blockchain.  BitGo requires each account to have three keys – any two of which are required to recreate the private key and participate in a transaction.  Typically, one of these BitGo generated keys is maintained by the owner, one by BitGo, and the third is usually held by a trusted third party or in remote, or offline storage controlled by the owner.  Any transaction requires that two of the three keys be used, just like a bank safety deposit box – no single key is enough to open it. Even if a single key is lost or compromised, the owner’s bitcoin cannot be stolen or accessed.  Indeed, this could only occur if both the user (or his/her wallet) AND BitGo are compromised.  This also allows BitGo to act as a fraud detection and prevention player, helping protect users who are themselves hacked, while still giving the user the ability to access and spend his or her bitcoin without BitGo participating in the transaction.  BitGo is working with many major bitcoin players to implement this technology across the entire bitcoin ecosystem.

BitGo also has an exceptional team behind it. The team has a history of involvement in key technological innovations at some of the most dynamic technology companies, including Google, Facebook, and Big Fish Games. In addition, former VeriSign CEO Stratton Sclavos is a new BitGo investor and board member alongside Redpoint. The involvement of the man whose company made it safe to put credit card numbers on the Internet only adds to BitGo’s reach and credibility.

We are truly excited to join such a pioneering team and company and look forward to the great developments ahead.


A Revolutionary Investment in Jaunt

Virtual Reality has been attracting a lot of interest of late, particularly in the wake of Facebook’s $2 billion acquisition of Oculus Rift announced on March 25. If you haven’t yet tried this new generation of VR headsets, you’re in for a treat. The immersiveness of the experience can simply blow you away. It is a little like going from a small television to a massive IMAX theater — but so much more. Like escaping the Matrix for the first time, you have to see it for yourself.

Still, throughout the history of VR, these incredible experiences have been constrained to virtual worlds, where the required multiple views in every direction can quickly be calculated and rendered. Over time, that rendering has gotten so good that it’s almost indistinguishable from reality, but it still isn’t the same. There’s a big difference between playing NBA Jam and watching a real game on television. The same is true of VR: There hasn’t been a way to record the real world in way that enables playback through a VR headset.

That is, there wasn’t until now. Palo Alto-based startup Jaunt, led by extraordinarily talented Silicon Valley veterans Jens Christensen, Arthur van Hoff, and Tom Annau, is tackling this head on. They are building the hardware and software needed to record real world experiences and play them back through VR headsets like the Oculus Rift. To experience the real world through a VR headset, you need a very complicated custom camera system to record the world, a new type of compression and playback, and a way to get that content to viewers. Jaunt has created all this by engineering an entirely new system of VR recording, distribution, and playback. Jens, Arthur, Tom, and a crackerjack team of engineers have designed their own camera to capture 360-degree stereoscopic video. They have developed complicated stitching algorithms to turn the video into something consumable on the Oculus as well as tools allowing creators to edit these complex pieces of content. And they have created compression and streaming technologies so that the videos can be experienced over the Internet.

The best way to describe the feeling you have while using Jaunt’s system is that’s it’s teleportation — your brain is convinced that you’ve left your living room and are instead on stage sitting next to your favorite guitarist during a concert. Or maybe you are sitting courtside during a basketball game, able to not only watch the action in front of you, but to turn around and see how the fans behind you are reacting. Or you can teleport into a horror movie and hear the back door creak open behind you, spinning around just in time to see a shadow slip into the next room. The possibilities are endless.

Oculus alone is an incredible way to play and experience video games. With Jaunt, you can now experience so much more.

We are very excited about our investment in Jaunt, the all-star team behind the company, and by the future of virtual reality. In Facebook’s announcement of its acquisition of Oculus, Mark Zuckerberg said that what’s really exciting about Oculus is what comes after gaming. We couldn’t agree more. Thanks to Jaunt, that next leap in immersive entertainment has arrived.


RelateIQ Joins the Redpoint Portfolio

We are very excited to announce Redpoint’s investment in RelateIQ, a SaaS platform that is turning the traditional CRM space on its head.  We have been admirers of the company (and very happy customers!) for some time and are thrilled to welcome them to the portfolio.

We began using the RelateIQ product last year and were blown away by its impact on our business.  At Redpoint, we are in the business of managing relationships with entrepreneurs.  To help managethese relationships, up until recently, we used a traditional customer relationship management tool.  While traditional solutions worked “ok”, we found them limited; they required considerable manual data entry and, most importantly, didn’t really help us do our job more intelligently.  Enter RelateIQ.  The team at RelateIQ has been busy building a fantastic product with several key innovations:

  • Automatic data capture.  With RelateIQ youdon’t have to manually input events (e.g., that you sent an email or had a meeting with a prospective customer); this is all automatically ingested into RelateIQ and associated with the relevant company/relationship entries.
  • Deep collaboration.  With RelateIQ you can see all communications between your organization and a prospective customer, including email, meetings and notes.   This keeps all team members in the loop so they have full context on the relationship – no more accidentalwire-crossing or unnecessary copying on emails.
  • Data insights.  RelateIQ uses its rich data set to help you manage your relationships better.  For example, if youforget to respond to someone’s email, RelateIQ will automatically remind you.  Another example is RelateIQ’s “Closest Connection” feature, which lets you look at your team’s network to determine who might be the best colleague to make a warm introduction into an account.

It is the data insights which have us so excited over the long run.  We see RelateIQ as a forerunner in an emerging category of data-driven applications.  These applications combine the flexibility of SaaS with intelligent insights powered by big data.  In the future, these smart apps will not only help automate processes, but also will help users make better decisions.

RelateIQ has very ambitious goals and they have the team capable of achieving great things.  The founders, Steve Loughlin and Adam Evans, have built a very talented team top to bottom and they have also spent considerable energy creating anamazing culture that has every team member invested in the continued success of the business.  It’s a fantastic place to work.

We have been happy users of the RelateIQ product for some time and are thrilled to welcome Steve, Adam and the entire RelateIQ team to the Redpoint family.  We look forward to working together for years to come.


Backing Tactile’s Series A

At Redpoint, we have been excited about the consumerization of the enterprise for some time. The idea is simple – target professionals inside of businesses with applications that make their working lives more productive. Many successful businesses have emerged that employ this business model. Good examples of these are Yammer, Dropbox and Evernote. Redpoint has invested in this business model as well, backing Expensify and Acompli recently. Today we are excited to announce a third investment – Tactile.

I remember when we hired my first sales guy at Zimbra. He came with a huge cardboard box full of business cards — literally hundreds of business cards each rubber banded into stacks. Fast forward to today, and Tactile gives you a personal mobile app to manage your sales rolodex and your sales relationships individually. Of course, there is a way to publish your contacts and your notes to the corporate CRM (like SFDC). But you maintain control on the individual contacts and meetings and publish it to the CRM system when you deem its appropriate. This is how sales people work in real life, and Tactile gives you a way to do this using a mobile app. Tactile works with your calendar, contacts and emails and gives you an easy way to log and modify existing contacts and meetings. And an easy way to publish it to your corporate CRM.

What makes Tactile even more attractive is that the person leading the effort has incredible experience in the CRM space. Chuck Ganapathy was most recently an SVP of products at Salesforce and brings a wealth of product knowledge in the area. His vision and idea around this space is refreshing, and we are super excited to partner with Chuck to bring this important sales productivity app to the market.