Beyond sodas and chips
Vending machines get all kinds of things in front of customers at a variety of venues
Editor’s note: Here are three Bay Area startups worth watching this week.
In a world that is quickly replacing in-person retail with online shopping, Gower Smith says he has a cheaper and less space-consuming way to keep it alive.
His company, Swyft, creates sophisticated vending machines that sell products from retailers like Best Buy, Nespresso and Uniqlo. These machines are located in places like malls and airports, taking up a fraction of the space that a regular store would.
The growth of Swyft comes at a turbulent time for brick-and-mortar chains, because Amazon and other online sellers are taking a bigger share of retail.
With their products in Swyft machines, companies can have a physical presence without the space requirements of retail, Smith said: “We deliver immediate gratification to the consumer.”
The San Francisco company is trending on startup database Crunchbase because it has made deals with “one of the largest drugstore chains” as well as a grocery chain, Smith said. Smith declined to name the companies, but CVS announced a pilot program with Swyft in September.
Swyft also acquired startup ZoomSystems, which makes a similar product and operates in North
America and Europe. Smith, named Swyft’s CEO last year, founded ZoomSystems, which he left in 2014.
Swyft’s vending machines — Smith prefers the phrase “automated retail” — are in hundreds of locations around the country, including the airports in San Jose, San Francisco and Oakland.
The company has $5.5 million in funding and about 70 employees.
“We’re moving into retail automation to help retailers and online companies” that want to have a traditional presence and compete with the online giants, Smith said.
Also trending: HiQ Labs
What it does: Makes software that analyzes public data from LinkedIn profiles to help employers determine whether workers are likely to leave or stay.
What happened: HiQ Labs, which could not be reached for comment, is involved in a legal battle with LinkedIn over access to what HiQ says is publicly available data. It recently started a crowdfunding campaign to help fund the legal battle. Why it matters: This is the latest case of a powerful tech company cracking down on a firm suspected of “data scraping,” the practice of extracting information from social media accounts or websites. This brings up questions about ownership of personal data that is publicly available.
Headquarters: Mountain View
Funding: $12.4 million, according to Crunchbase
Employees: 11-50, according to Crunchbase
Elation Health
What it does: Builds an electronic health records system, which removes paper forms from the patient-physician interaction.
What happened: It is unclear why this company, which declined to comment, is trending on Crunchbase this week. A bill, called the EHR Regulatory Relief Act, which could make it easier for hospitals to adopt electronic records, was introduced in the Senate this month.
Why it matters: Many doctors use paper records in their medical practices, making it difficult to transfer and share information. Elation Health is one of many companies attempting to digitize this process.
Headquarters: San Francisco
Funding: $15 million, according to Crunchbase
Employees: 11-50, according to Crunchbase