Category: FirstMark Capital

Parametrix Insurance raises $17.5 million to offer cloud downtime insurance

Insurtech is picking up steam in a big way, but startup Parametrix thinks there is still plenty of room left to innovate. The company, which today announced the close of a $17.5 million funding round, offers insurance policies for companies who rely on third-party cloud providers, ecommerce services, payment gateways and CRM systems.

In essence, downtime from one of these services can cost a company millions in revenue, but it’s completely out of their control. A fact of life, one might say, until Parametrix.

Parametrix approaches this problem in two key ways.

The first is that the company has developed a system that continuously monitors third-party IT services all over the world, giving the startup a direct view into service interruptions down to the millisecond. This system is also aware of the interdependent nature of many of these services and incorporates that into the precision monitoring.

The second differentiator is its pricing model, which uses millions of data points to help customers estimate the financial risk involved with downtime and lets them customize the payout per hour of downtime. The model spits out a premium based on that payout rate.

“We’ve all felt the pain of downtime,” said co-founder and CTO Neta Rozy. “When any part of the infrastructure goes down, the companies go down as well. Normally, when you have a pain caused by technology, you try to fix it with technology. Downtime is inevitable. It doesn’t matter how great your infrastructure is or how redundant your (Read more...)

nextmv raises $8M Series A to increase accessibility to its automation optimization tech

Nextmv, a platform that optimizes and tests decision models for logistics companies, announced the close of an $8 million Series A round earlier today.

FirstMark, an existing investor, doubled down on nextmv and led the Series A. Other investors include GitHub CTO Jason Warner, Seamless founder Jason Finger, Stripe COO Claire Johnson, Ankit Agarwal from Greenhawk Capital, as well as other institutional investors such as 2048, Dynamo and Atypical.

Image Credits: nextmv

Founded by Carolyn Mooney and Ryan O’Neil, nextmv simplifies the process of optimizing and testing logistics-focused decision models. Consider a company like Grubhub, where the duo worked previously. Grubhub has to weigh a wide variety of priorities each time an order comes through on the platform, from speed of delivery to mileage on the drivers’ cars to overall efficiency.

It takes an immense amount of resources, and personnel talent, to optimize the algorithm running those platforms based on the company’s key performance indicators, or KPIs. And if those KPIs change, or tweaks to the algorithm need to be made, it takes even more resources to test those modifications.

And you would need a simulated environment to test the changes, something that nextmv has provided since its launch.

On the heels of this latest round, nextmv is working to simplify its product. The company has launched nextmv Cloud to allow developers, not just operations researchers, to use its software. Nextmv Cloud has quick-start models in the routing and delivery space to allow developers to automate (Read more...)