The 5G Open Innovation Lab (5G OI Lab), a startup program funded by T-Mobile, Intel, and NASA, today revealed its second cohort of companies.
The Bellevue, Wash.-based lab debuted in early May and wrapped up its first 12-week program in July. It aims to help entrepreneurs take advantage of 5G technology and build connections with a variety of partners from the public and private sphere.
Unlike many accelerators and incubators, the lab does not take equity stakes in the startups. But the sponsoring companies get early access for potential venture investments and are part of the cohort selection process. They also get a chance to work with early-stage startups that could end up being the next billion-dollar tech giant.
The lab is also a founding member of a Washington state “Innovation Partner Zone,” an alliance developed by the Department of Commerce to help spur collaboration between institutions, government organizations and companies. The Pacific Northwest National Laboratories, Snohomish County, Washington State University (WSU), the University of Washington, T-Mobile, and the City of Bellevue are part of the “5G Open Innovation Zone,” in addition to the lab.
5G is the next generation of wireless service that is expected to pave the way for smarter cities, faster downloads, self-driving cars, and countless other innovations that are hard to predict, just as tech stalwarts such as Uber and Snapchat couldn’t be anticipated until 4G and LTE made their business models possible.
Here are the 16 new companies, with descriptions from the lab:
Bluebox Labs: Bluebox uses Co-pilot to offer an affordable software ecosystem for any car, providing security, convenience, and savings to the user.FreedomFi: FreedomFi uses commodity hardware, open source software and CBRS shared spectrum to build cost efficient private LTE networks and future 5G IoT deployments.GenXComm: GenXComm has developed an advanced technology for 5G deployment which can operate in a variety of bands, including the unlicensed CBRS Band optimizing spectrum usage by allowing communication to transmit and receive simultaneously – on the same frequency.Innov8.ag: Innov8.ag combines on-farm and off-farm data with machine learning to inform grower decisions and maximize resource efficiency.Kubermatic Gmbh: Kubermatic’s platform automates the operations of Kubernetes clusters across multi-cloud, on-premises, and edge environments with a single management UI, addressing the operational challenge of running Kubernetes at scale.Latent AI: Latent AI’s modular software solution automates the resource-intensive tasks of training AI models for constrained devices anywhere on the edge continuum.Mangata Networks: Mangata Networks provides scalable global coverage, with satellite and terrestrial solutions for high capacity and affordable backhaul.MATRIX Labs: MATRIX Labs offers affordable FPGA-driven development boards with sensors, mics, and wireless communication protocols to facilitate IoT app creation.Megh Computing: Megh Computing provides a Real-Time Streaming Analytics Platform with AI+ acceleration using FPGAs for Edge-to-Cloud deployments.mimik Technology, Inc.: mimik provides a hybrid edgeCloud platform to enable any computing device with server capability, increasing data privacy and development speed while lowering the latency and cost of cloud hosting.MixComm: MixComm is the “Antenna to AlgorithmTM” company solving the challenges constraining 5G mmWave performance by extending the link range, reducing power consumption, and reducing system costs with their RFSOI Front End ICs and modules.Moeco IoT: Moeco combines a web platform with low-cost sensors to provide an end-to-end solution for data and sensor management as well as insight generation.Nodle: Nodle is a decentralized wireless network of millions of smartphones and Bluetooth devices connecting people and things privately and securely.PerVices: PerVices delivers a flexible, multi-channel transmit and receive solution using their high-performance software defined radio (SDR) platforms.QuayChain: QuayChain builds digital infrastructure through private LTE/5G for the Supply Chain, creating Smart Industrial Hubs to harvest & democratize data through IoT and AI-driven solutions in large multi-modal locations.Taubyte – Taubyte is The Smart Computing Platform that enables scaling software to the global infrastructure catalyzed by 5G and IoT; being fully automated (i.e. NoOps), it eliminates software development, deployment, and routing complexity at the Edge, allowing (I)IoT developers to focus on product features, while reducing costs and time to market.
Downtown Seattle and Mount Rainier as viewed from the top observation deck of the Space Needle. (GeekWire Photo / Kurt Schlosser)
The seemingly unstoppable trend of tech companies and talent concentrating in a few cities hit a brick wall in March. As the first-known U.S. cases of the coronavirus emerged in Seattle and the San Francisco Bay Area, tech companies pioneered a nationwide shift to remote work.
Six months into the pandemic, some of those companies will never go back to the office in full force.
Meanwhile, the cities where tech has driven population spikes and surging home prices are confronting sudden budget shortfalls and scrambling to adjust. Seattle and San Francisco — home to the largest and most valuable tech companies in the country — are considering new business and wealth taxes to make up for the lost revenue.
City officials are charging the tech industry with funding recovery efforts, while business advocates sound familiar alarm bells about jobs leaving town.
It’s an old story with a new twist: a global experiment in the benefits and shortfalls of remote work. Could the pandemic really decentralize tech opportunity away from just a few cities? If so, what does it mean for the future of the tech industry in America? City officials and urban experts are watching the trend closely, but they’re divided over the implications.
In addition to infecting nearly 4 million people and killing at least 145,000 people in the US alone, the coronavirus has blown a major hole in the budgets of cities across the country. In Seattle, the shortfall is estimated to be around $400 million this year. San Francisco is scrambling to plug a $1.7 billion budget deficit over the next two years.
Both cities are considering taxes that target big business and wealthy executives to fill their gaps.
The Seattle City Council passed legislation earlier this month that taxes the top salaries at the highest paying companies in the city to fund coronavirus relief programs right away and affordable housing down the line.
Amazon has been a recurring focus of Seattle’s tax debate. (GeekWire Photo / Monica Nickelsburg)
In San Francisco, voters will be asked to decide on a number of new taxes this November that affect the tech industry, including a CEO tax on executives earning at least 100 times the median income of their average worker. Another proposal would tax stock-based compensation. Changes to the city’s payroll and gross receipts taxes are also under consideration.
The business communities in both tech hubs warn the taxes will push out jobs and hurt companies already struggling to weather the economic storm brought on by the pandemic.
Seattle Metro Chamber of Commerce vice president Mark McIntyre said the payroll tax will “stunt economic recovery, push high-paying jobs out of the city, further toxify the relationship between city government” in a statement.
Leila Kirske — who was speaking in her capacity as an Alliance for Pioneer Square Board member, and works as CFO of 98point6 — warned that “so many of the jobs lost will not come back.”
“Taxing those that remain will not make this community healthy again,” she said in a statement accompanying McIntyre’s, part of a round-up circulated by Seattle’s “No Tax on Jobs” campaign.
Jennifer Stojkovic, executive director of the tech advocacy group sf.citi, was more blunt in her prediction.
Sf.citi executive director Jennifer Stojkovic. (Sf.citi Photo)
“Tech’s going to leave,” she said in an interview with GeekWire. “There’s no way around it. We’re in this unprecedented time where companies are having huge downturns, and they are being hit with new taxes, and they don’t know if they are going to be able to afford this tax burden. In addition to the downturn that they are facing, and these layoffs, and thousands of jobs that have been lost, they have all their employees who have been working remotely since March, and they’re doing it.”
Though the pandemic adds a level of uncertainty that feels unprecedented, this isn’t the first time the business community has threatened lost jobs amid a tax battle — and the research paints a more complicated picture than the rhetoric.
Tech industry concentration in just a few cities ultimately comes down to talent. The U.S. has a shortage of engineers, data analysts, and other knowledge workers needed to power the technology industry. Those workers tend to gravitate toward places like Seattle or San Francisco, West Coast cities with plenty of amenities and like-minded people. Companies tend to cluster around those talent bases and value the knowledge exchange that occurs when workers bounce between startups and large tech firms.
The pandemic does not appear to be significantly changing that underlying trend — at least not yet.
Zillow compared web traffic to for-sale listings in urban, suburban, and rural areas in April 2019 and April 2020 and saw no significant change.
“The data do not provide any early evidence for an overall shift in search behavior away from urban cores,” Zillow said in its report.
Of course, that was early on in the pandemic, before some companies announced long-term plans to keep workers remote.
A survey by Blind of 4,400 Bay Area tech workers found about two-thirds would consider moving if they had the option to work remotely, Business Insider reports. But only 18% said they would consider moving out of California.
Some experts predict a slight deconcentration of tech within the municipal boundaries of cities like San Francisco and Seattle but don’t expect those jobs to travel far from the tech hubs where they were formed. Companies might shift to towns surrounding those metros, like Bellevue, Wash., where they can still tap the talent pool that gravitates to premier cities. In San Francisco’s case, Stojkovic expects some tech companies and workers to move to the Seattle area, which offers many similar amenities but a relatively lower cost of living.
Richard Florida speaking at the 2018 Cascadia Innovation Cooridor Conference in Vancouver, B.C. (Cascadia Innovation Corridor Photo / Matt Borck)
Richard Florida, a distinguished urbanist and professor at the University of Toronto, told GeekWire that he does not expect U.S. tech hubs to decentralize in any significant way.
“San Francisco and Seattle will be just fine,” he said. “I do not see a massive relocation of large corporations or startups anywhere outside of the handful of superstar metros that have dominated this for the better part of two decades. I think that remote work is a different story. I think more workers in the tech community and elsewhere will work remotely, not all, but I think more will. My bigger point is, if San Francisco, New York, and Seattle went away you might as well just write off America’s high tech innovation capacity.”
The pandemic is the latest in a long list of catastrophes that have supposedly foretold the death of cities. For centuries, crises have led to grim forecasts about the end of cities and so far, no calamity has been more powerful than the trend of urbanization. Cities have weathered pandemics, hurricanes, bombings, recessions, and depressions before and rebounded each time.
It’s certainly been a unique inaugural cohort for the 5G Open Innovation Lab (5G OI Lab), a new startup program funded by T-Mobile, Intel, and NASA. But participating entrepreneurs are making the most of their time, particularly as the demand for some 5G-enabled technologies accelerates amid the COVID-19 crisis.
The Bellevue, Wash.-based lab debuted in early May and will wrapped up its first program — held virtually due to the pandemic — this week.
The 14 companies are working in tandem with a variety of partners from the public and private spheres, with the goal of growing their business in the midst of an economic and health crisis.
We caught up with six of the startups to learn more about how they’ve adjusted over the past several months and how they are using 5G to their advantage. They also provided advice to other entrepreneurs. The lab is accepting applications for its fall and spring 2021 cohorts.
Taqtile founders Dirck Schou, CEO, and John Tomizuka, CTO.
Founders: Dirck Schou, CEO, and John Tomizuka, CTO.
Headquarters: Seattle, Wash.
What does your company do? Taqtile builds enterprise AR software that makes everyone an expert by arming frontline workers with an intuitive tool to easily capture knowledge, perform complex tasks, and collaborate with remote experts in previously impossible ways.
What makes you different from the competition? What’s your secret sauce? Usability. Our Manifest platform is the most complete, end-to-end AR work-instruction platform for enterprises on the market. It’s designed to be effortless for experts to capture and author their knowledge, and for frontline users to accurately, efficiently, and safely put that knowledge to use in the field.
How has your business been affected by COVID-19 and how are you adapting? While COVID-19 has delayed several companies from deploying enterprise solutions, we’ve seen significant new interest in Manifest by demonstrating how feasible and beneficial remote work processes and distance-enabling technologies can be.
How are you using 5G technology? How does it make a difference for your company? Our Manifest AR platform works amazingly well on today’s commonly used networks, and it will be even more powerful on 5G. Most noticeably, the edge-computing design of 5G is going to dramatically improve throughput, resolve latency issues, and increase security for enterprise customers.
What’s one piece of advice you’d give other entrepreneurs who are just starting out? Prepare for a marathon, not a sprint. Establish your cheering section of believers and cultivate your connectors because you never know where you’ll encounter that one connection that is going to change your business’ trajectory. And refine your ability to write and articulate what makes you unique. Your customers, employees, and investors buy the story, not the technology.
Numurus founders Jason Seawall, CEO, and Ian McKissick, COO.
Founders: Jason Seawall, CEO, and Ian McKissick, COO.
Headquarters: Seattle, Wash.
What does your company do? Numurus offers B2B connectivity solutions between edge devices and cloud services focused on industrial and defense applications. Numurus’ flagship product NEPI is a smart IoT subscription platform that combines a secure IoT backbone, edge-device management, and cloud-portal management, with integrated AI services. With NEPI, product developers can rapidly transform their sensors and robotic technologies into smart IoT enabled solutions making them both more capable and more valuable to the end customer.
What makes you different from the competition? What’s your secret sauce? NEPI provides device manufacturers with a turnkey, affordable solution to meet the growing demands for Industry 4.0 capabilities. Instead of expensive and time-consuming in-house development, NEPI delivers the smart link that can bring an IoT application to the market in a competitive time frame. For a sensor or robot company, NEPI is the secret sauce that gets its commercial application to market and more profitable!
How has your business been affected by COVID-19 and how are you adapting? Today’s current situation related to COVID-19 has further motivated many asset operators to increase the adoption of smart device deployments that can reduce on-site personnel and ensure operational continuity. NEPI is working with companies to develop smart IoT applications that can support remote device management, remote facility maintenance, and inspection.
How are you using 5G technology? How does it make a difference for your company? Numurus’ NEPI platform provides integrated communications gateways for our IoT customers. Adding the 5G support, with its high bandwidth and low-latency characteristics, opens up new NEPI use-cases related to augmented reality, robotic teleoperations, and distributed artificial intelligence.
What’s one piece of advice you’d give other entrepreneurs who are just starting out? First, clearly define what your company does, not the underlying technology, and use that statement consistently, both internally for road-mapping and externally with potential customers. Second, build an MVP product and start bringing in revenue as fast as possible. Third, don’t give up!
Kristopher Francisco, Founder/CEO of Evolute.
Founders: Kristopher Francisco, CEO.
Headquarters: San Francisco, Calif.
What does your company do? Evolute enables Fortune 500 IT Managers to run software at the edge without a human operator. Unlike VMware, we can transform software to its most modular form, scale it up and down as a service, and manage without human intervention.
What makes you different from the competition? What’s your secret sauce? Evolute has Infrastructure AI, which allows us to seamlessly understand and transform software into its most modular and transportable form. With this deep level of insight, unlike other competitors, we can manage and operate the software at the edge without a human operator.
For companies in the energy industry, the cost of IT interruption or data loss to drilling can be up to $25K/hour. With an average of 70 deployments, for flagship edge teams, we’re saving over $1.75M/hour in no downtime computing. This ability to remove the human operator increases the value of the IT function and translates to $100M of business impact in the first year, for IoT and energy providers, for example, at the edge.