Birth control delivery startup Nurx taps Clover Health’s Varsha Rao as CEO

Varsha Rao, Airbnb’s former head of global operations and, most recently, the chief operating officer at Clover Health, has joined Nurx as its chief executive officer.

Rao replaces Hans Gangeskar, Nurx’s co-founder and CEO since 2014, who will stay on as a board member.

Nurx, which sells birth control, PrEP, the once-daily pill that reduces the risk of getting HIV, and an HPV testing kit direct to consumer, has grown 250 percent in the last year, doubled its employee headcount and attracted 200,000 customers. Rao tells TechCrunch the startup realized they needed talent in the C-suite that had experienced this kind of growth.

“The company has made some really great progress in bringing on strong leaders and that’s one of the things that got me excited about joining,” Rao told TechCrunch. Nurx recently hired Jonathan Czaja, Stitch Fix’s former vice president of operations, as COO, and Dave Fong, who previously oversaw corporate pharmacy services at Safeway, as vice president of pharmacy.

Rao, for her part, joined Clover Health, a Medicare Advantage startup backed by Alphabet, in late 2017 after three years at Airbnb.

“After being at Airbnb, a really mission-driven company, I couldn’t go back to something that wasn’t equally or more so and healthcare really inspired me,” Rao said. “In terms of accessibility, I feel like [Nurx] is super important. We are really fortunate to live in a place where can access birth control and it can be more easily found but there are lots of parts of the country where physical access is challenging and costs can be a factor. To be able to break down barriers of access both physically and from an economic standpoint is hugely meaningful to me.”

Nurx, a graduate of Y Combinator, has raised about $42 million in venture capital funding from Kleiner Perkins, Union Square Ventures, Lowercase Capital and others. It launched in 2015 to facilitate women’s access to birth control across the U.S. with a HIPAA-compliant web platform and mobile application that delivers contraceptives directly to customers’ doorsteps.

Today, the telehealth startup is available to customers in 24 states and counts Chelsea Clinton as a board member.

Kindbody raises $15M, will open a ‘Fertility Bus’ with mobile testing & assessments

Kindbody, a startup that lures millennial women into its pop-up fertility clinics with feminist messaging and attractive branding, has raised a $15 million Series A in a round co-led by RRE Ventures and Perceptive Advisors.

The New York-based company was founded last year by Gina Bartasi, a fertility industry vet who previously launched Progyny, a fertility benefit solution for employers, and FertilityAuthority.com, an information platform and social network for people struggling with fertility.

“We want to increase accessibility,” Bartasi told TechCrunch. “For too long, IVF and fertility treatments were for the 1 percent. We want to make fertility treatment affordable and accessible and available to all regardless of ethnicity and social economic status.”

Kindbody operates a fleet of vans — mobile clinics, rather — where women receive a free blood test for the anti-Müllerian hormone (AMH), which helps assess their ovarian egg reserve but cannot conclusively determine a woman’s fertility. Depending on the results of the test, Kindbody advises women to visit its brick-and-mortar clinic in Manhattan, where they can receive a full fertility assessment for $250. Ultimately, the mobile clinics serve as a marketing strategy for Kindbody’s core service: egg freezing.

Kindbody charges patients $6,000 per egg-freezing cycle, a price that doesn’t include the cost of necessary medications but is still significantly less than market averages.

Bartasi said the mobile clinics have been “wildly popular,” attracting hoards of women to its brick-and-mortar clinic. As a result, Kindbody plans to launch a “fertility bus” this spring, where the company will conduct full fertility assessments, including the test for AMH, a pelvic ultrasound and a full consultation with a fertility specialist.

In other words, Kindbody will offer all components of the egg-freezing process on a bus aside from the actual retrieval, which occurs in Kindbody’s lab. The bus will travel around New York City before heading west to San Francisco, where it plans to park on the campuses of large employers, catering to tech employees curious about their fertility.

“Our mission at Kindbody is to bring care directly to the patient instead of asking the patient to come to visit us and inconvenience them,” Bartasi said.

A sneak peek of Kindbody’s “fertility bus,” which is still in the works

Kindbody, which has raised $22 million to date from Green D Ventures, Trailmix Ventures, Winklevoss Capital, Chelsea Clinton, Clover Health co-founder Vivek Garipalli and others, also provides women support getting pregnant with in vitro fertilisation (IVF) and intrauterine insemination (IUI). 

With the latest investment, Kindbody will open a second brick-and-mortar clinic in Manhattan and its first permanent clinic in San Francisco. Additionally, Bartasi says they are in the process of closing an acquisition in Los Angeles that will result in Kindbody’s first permanent clinic in the city. Soon, the company will expand to include mental health, nutrition and gynecological services.

In an interview with The Verge last year, Bartasi said she’s taken inspiration from SoulCycle and DryBar, companies whose millennial-focused branding strategies and prolific social media presences have helped them accumulate customers. Kindbody, in that vein, notifies its followers of new pop-up clinics through its Instagram page.

In the article, The Verge called Kindbody “the SoulCycle of fertility” and questioned its branding strategy and its claim that egg freezing “freezes time.” After all, there is limited research confirming the efficacy of egg freezing.

“The technology that allows for egg-freezing has only been widely used in the last five to six years,” Bartasi explained. “The majority of women who froze their eggs haven’t used them yet. It’s not like you freeze your eggs in February and meet Mr. Right in June.”

Though Kindbody touts a mission of providing fertility treatments to the 99 percent, there’s no getting around the sky-high costs of the services, and one might argue that companies like Kindbody are capitalizing off women’s fear of infertility. Providing free AMH tests, which often falsely lead women to believe they aren’t as fertile as they’d hoped, might encourage more women to seek a full-fertility assessment and ultimately, to pay $6,000 to freeze their eggs, when in reality they are just as fertile as the average woman and not the ideal candidate for the difficult and uncomfortable process.

Bartasi said Kindbody makes all the options clear to its patients. She added that when she does hear accusations that services like Kindbody capitalize on fear of infertility, they tend to come from legacy programs and male fertility doctors: “They are a little rattled by some of the new entrants that look like the patients,” she said. “We are women designing for women. For far too long women’s health has been solved for by men.”

Kindbody’s pricing scheme may itself instill fear in incumbent fertility clinics. The startup’s egg-freezing services are much cheaper than market averages; its IVF services, however, are not. Not including the costs of medications necessary to successfully harvest eggs from the ovaries, the average cost of an egg-freezing procedure costs approximately $10,000, compared to Kindbody’s $6,000. Its IVF services are on par with other options in the market, costing $10,000 to $12,000 — not including medications — for one cycle of IVF.

Kindbody is able to charge less for egg freezing because they’ve cut out operational inefficiencies, i.e. they are a tech-enabled platform while many fertility clinics around the U.S. are still handing out hoards of paperwork and using fax machines. Bartasi admits, however, that this means Kindbody is making less money per patient than some of these legacy clinics.

“What is a reasonable profit margin for fertility doctors today?” Bartasi said. “Historically, margins have been very, very high, driven by a high retail price. But are these really high retail prices sustainable long term? If you’re charging 22,000 for IVF, how long is that sustainable? Our profit margins are healthy.”

Bartasi isn’t the only entrepreneur to catch on to the opportunity here, as I’ve noted. A whole bunch of women’s health startups have launched and secured funding recently.

Tia, for example, opened a clinic and launched an app that provides health advice and period tracking for women. Extend Fertility, which like Kindbody, helps women preserve their fertility through egg freezing, banked a $15 million round. And a startup called NextGen Jane, which is trying to detect endometriosis with “smart tampons,” announced a $9 million Series A a few weeks ago.

Cytora secures £25M Series B for its AI-powered commercial insurance underwriting solution

Cytora, a U.K. startup that had developed an AI-powered solution for commercial insurance underwriting, has raised £25 million in a Series B round. Leading the investment is EQT Ventures, with participation from existing investors Cambridge Innovation Capital, Parkwalk, and a number of unnamed angel investors.

A spin out of the University of Cambridge, Cytora was founded in 2014 by Richard Hartley, Aeneas Wiener, Joshua Wallace, and Andrzej Czapiewski — although both Wallace and Czapiewski have since departed.

Its first product launched in late 2016 to a number of large insurance customers, with the aim of applying AI to commercial insurance supported by various public and proprietary data. This includes property construction features, company financials, and local weather, combined with an insurance company’s own internal risk data.

“Commercial insurance underwriting is inaccurate and inefficient,” says Cytora co-founder and CEO Richard Hartley. “It’s inaccurate because underwriting decisions are made using sparse and outdated information. It’s inefficient because the underwriting process is so manual. Unlike buying car or travel insurance, which can be purchased in minutes, buying business insurance can take up to seven days. This means operating costs for insurers are extremely high and customer experience isn’t good leading to a lack of trust”.

To illustrate how inefficient commercial insurance can be, Hartley says that for every £1 of premium that businesses pay to insurers, only 60 pence is set aside to pay total claims. The other 40 pence evaporates as the “frictional cost of delivering insurance”.

Powered by AI, Hartley claims that Cytora is able to distil the seven day underwriting process down to 30 seconds via its API. This enables insurers to underwrite programmatically and build workflows that provide faster and more accurate decisions.

“Our APIs are powered by a risk engine which learns the subtle patterns of good and bad risks over time,” he explains. “This gives insurers a better understanding of the underlying risk of each business and helps them set a more accurate price. Both customers and insurers benefit”.

Typical Cytora customers are commercial insurers that are digitally transforming their underwriting process. Users of the software are either underwriters within insurance companies who are underwriting large commercial risks (ie an average insurance premium ~£500k and above) or business customers of insurance companies who are buying insurance direct online with an average premium of £1,000-£5,000.

“For the latter, our customers have built quotation workflows on top of Cytora’s APIs, enabling business owners to buy policies online in less than a minute without having to fill in a form,” says Hartley. “We require only a business name and postcode to issue a quote, which revolutionises the customer experience”.

To that end, Cytora generates revenue by charging a yearly ARR license fee which increases based on usage and per line of business. The company says today’s Series B funding will be used to accelerate the expansion of its product suite and for scaling into new geographies.

Sila Nano’s battery tech is now worth over $1 billion with Daimler partnership and $150 million investment

Sila Nanotechnologies and its battery materials manufacturing technology are now worth over $1 billion.

The company, which announced a $170 million funding led by Daimler and a partnership with the famed German automaker, started building out its first production lines for its battery materials last year. That first line is capable of producing the material to supply the equivalent of 50 megawatts of lithium ion batteries, according to Sila Nano’s chief executive officer Gene Berdichevsky.

That construction, made on the heels of a $70 million investment round, is now going to be expanded with the new cash from Daimler and 8VC along with previous investors Bessemer Venture Partners, Chengwei Capital, Matrix Partners, Siemens Next47, and Sutter Hill Ventures.

Berdichevsky would not comment on how much production capacity would increase, but did say that the company’s battery materials would find their way into consumer devices before the end of 2020. That means the potential for longer lasting batteries in smart watches, earbuds, and health trackers, initially.

From its headquarters in Alameda, Calif., Sila Nanotechnologies has developed a silicon-based anode to replace graphite in lithium-ion batteries. The company claims that its materials can improve the energy density of batteries by 20%.

“If you can increase energy density by 20%… you can use 20% fewer cells and each pack can cost 20% less,” says Berdichevsky. “The subtext of it is that it is the way to drive price of energy storage down. And that’s the way for the electric vehicle market to sand more and more on its own.”

That kind of cost reduction is what brought BMW and Daimler to partner with the company — and what led to the massive funding round and the company’s newfound unicorn status.

Our valuation is over $1 billion dollars now,” Berdichevsky says. 

Sila Nanotechnologies

Image courtesy of Sila Nanotechnologies

For Daimler, the materials that Sila Nanotechnologies are developing will give the company’s commitment to electrification a much needed boost.

Mercedes-Benz has plans to electrify its entire product suite by 2022, the company has said. That means Daimler has to accelerate its production of electrified alternatives to its fuel-powered fleet — everything from its 48-volt electrical system (the EQ Boost), to its plug-in hybrids (EQ-Power) and the more than . ten fully electric vehicles powered by batteries or fuel cells. The company is projecting that between 15% and 25% of its total sales will be electric by 2025 — depending on customer preferences, infrastructure development and the regulatory environment in each of the markets in which it sells vehicles, the company said.

In all, Mercedes-Benz cars has committed to investing €10 billion ($11.3 billion) in the production of vehicles and another $1.3 billion into a global battery production network. The global battery production network of Mercedes-Benz Cars will in the future consist of nine factories on three continents.

“We are on our way to a carbon free future mobility. While our all-new EQC model enters the markets this year we are already preparing the way for the next generation of powerful battery electric vehicles,” said Sajjad Khan, Executive Vice President for Connected, Autonomous, Shared & Electric Mobility, Daimler AG in a statement.

Still, consumers shouldn’t expect to see vehicles with Sila Nano’s technology until at least the mid 2020s, as automakers look to prove that the company’s battery technology meets their quality assurance standards. “The qualification time means there’s many years of work to make sure it is reliable for next ten to twenty years,” says Berdichevsky. “Our partnership is geared towards mid-2020s production targets, but the qualification is something that takes quite a while.”

The company’s latest round brings its total financing to just under $300 million since its launch in 2011. And as a result of the latest funding, former General Electric chief executive Jeff Immelt will take a seat on the company’s board of directors.

“Advancements in lithium-ion batteries have become increasingly limited, and we are fighting for incremental improvements,” said Jeff Immelt. “I’ve seen first-hand that this is a huge opportunity that is also incredibly hard to solve. The team at Sila Nano has not only created a breakthrough chemistry, but solved it in a way that is commercially viable at scale.”

Facebook’s Portal will now surveil your living room for half the price

No, you’re not misremembering the details from that young adult dystopian fiction you’re reading — Facebook really does sell a video chat camera adept at tracking the faces of you and your loved ones. Now, you too can own Facebook’s poorly timed foray into social hardware for the low, low price of $99. That’s a pretty big price drop considering that the Portal, introduced less than six months ago, debuted at $199.

Unfortunately for whoever toiled away on Facebook’s hardware experiment, the device launched into an extremely Facebook-averse, notably privacy-conscious market. Those are pretty serious headwinds. Of course, plenty of regular users aren’t concerned about privacy — but they certainly should be.

As we found in our review, Facebook’s Portal is actually a pretty competent device with some thoughtful design touches. Still, that doesn’t really offset the unsettling idea of inviting a company notorious for disregarding user privacy into your home, the most intimate setting of all.

Facebook’s premium Portal+ with a larger, rotating 1080p screen is still priced at $349 when purchased individually, but if you buy a Portal+ with at least one other Portal, it looks like you can pick it up for $249. Facebook advertised the Portal discount for Mother’s Day and the sale ends on May 8. We reached out to the company to ask how sales were faring and if the holiday discounts would stick around for longer and we’ll update when we hear back.

Xbox One does away with discs in new $249 All-Digital Edition

Discs! What are they good for? Well, if they’re nice if you don’t want to be tied to an online-only ecosystem. But if you don’t mind that, Microsoft’s latest Xbox One S “All-Digital Edition” might be for you. With no slots to speak of, the console is limited to downloading games to its drive — which is how we’ve been doing it on PC for quite some time.

Announced during today’s “Inside Xbox” video presentation, the Xbox One S All-Digital Edition — honestly, why not just give it a different letter? — is identical to the existing One S except for, of course, not having a disc slot in the front.

The Xbox One X (left) and S (center) are missing this valuable feature exclusive to the All-Digital Edition (right).

The impact of the news was lessened somewhat by Sony’s strategically timed tease of its next-generation console, revealing little — but enough to get gamers talking on a day Microsoft would have preferred was about its game ecosystem. But to return to the disc-free Xbox.

“We’re not looking to push customers toward digital,” explained Microsoft’s Jeff Gattis in a press release. “It’s about meeting the needs of customers that are digital natives that prefer digital-based media. Given this is the first product of its kind, it will teach us things we don’t already know about customer preferences around digital and will allow us to refine those experiences in the future. We see this as a step forward in extending our offerings beyond the core console gamer.”

The CPU and GPU are the same, RAM is the same, everything is the same. Even, unfortunately, the hard drive: a single lonely terabyte (imagine saying that a few years ago) that could fill up fast if every game has to be downloaded in full rather than loaded from disc.

It’s also the exact same shape and size as the S, which seems like a missed opportunity — they couldn’t make it a little smaller or thinner after taking out the whole Blu-ray assembly? Well, at least the original is a nice looking little box to begin with. (“Changes that affect the form of a console can be complex and costly,” said Gattis.)

At $249 it’s $50 cheaper than the disc-using edition, and comes with copies of Sea of Thieves, Minecraft, and Forza Horizon 3. That’s a pretty decent value, I’d say. If you’re looking to break into the Xbox ecosystem and don’t want to clutter your place with a bunch of discs and cases, this is a nice option. Sea of Thieves had kind of a weak start but has grown quite a bit, FH3 is supposed to be solid, and Minecraft is of course Minecraft.

You may also want to spring for the new Xbox Game Pass Ultimate service, which combines Xbox Live Gold and Xbox Game Pass — meaning you get the usual online benefits as well as access to the growing Game Pass library. There’s enough there now that, with the games you get in the box, you shouldn’t have to buy much of anything until whatever Microsoft announces at E3 comes out. (There’s even a special offer for three months of Game Pass for a buck to get you started).

You can pre-order the All-Digital Edition (which really should have been called the Xbox One D) now, and it should ship and be available at retailers starting May 7.

Unicorns: A tale of two continents

If you’re hoping to create a unicorn on a budget, look to the European technology sector for inspiration. Despite the well-documented increase in available funding for tech companies across the continent, startups are reaching unicorn status with much lower totals of venture capital than U.S. rivals. In fact, this level of “capital efficiency” is one major attraction for international investors weary of the “burn rate” of many U.S. companies aspiring to valuations of $1 billion+.

It costs a staggering 50-100 percent more in the U.S. to create a company valued at $1 billion than in Europe. For U.S. tech companies that achieved unicorn status in 2018, the median amount of funding required was more than $125 million, whereas their contemporaries in Europe required a lesser total of $80 million. For 2017, the gap was even wider; U.S. companies again required just over $100 million, the smaller pool of Europeans slightly above $50 million.

Region         Year Median funding required prior to reaching a valuation of $1B
U.S. 2017 $107 million
Europe 2017 $53.15 million
U.S. 2018 $125.38 million
Europe 2018 $80.8 million

The median funding secured prior to (not including) the round in which tech companies in the U.S. and Europe achieved a $1 billion valuation during 2017/18 (Data source: PitchBook)

A key reason for this greater efficiency in scaling is because European companies have had to make do with less. Europe has historically had a much smaller pool of “late-stage growth” funding (typically rounds of $30-75 million), and even today it is far easier to raise $20 million for a European tech company than $50 million, while that does not hold true in the U.S. to anywhere near the same degree.

This dearth of late-stage money has forced European tech companies to scale more efficiently, with lower overheads and a focus on profitability at an earlier stage, rather than the aggressive growth patterns often witnessed in the U.S. But this “enforced prudence” has come at a price.

The cost of creating more unicorns

Greater capital efficiency has arguably resulted in fewer European tech companies achieving unicorn status, with Europe lagging far behind the number created each year in the U.S. In 2018, the U.S. birthed 53 unicorns; Europe, only 10. So how much funding is required to close the gap?

Let’s assume (safely) product innovation and quality is available both in the U.S. and Europe, and let’s assume (less safely) there are many more quality European companies built to “unicorn potential” that are currently unable to raise enough to fuel scale to the point where they achieve $1 billion valuations. To plug this funding gap, we estimate Europe would require a multi-year capital pool of $10-20 billion in additional late-stage capital.

That math is based on a large number, up to 40, of companies a year missing out on becoming unicorns because of a lack of available funding, alongside the assumption that each unicorn needs more than $100 million in funding in total.

The extremely good news is that it is not $100 billion. Due to the inherent efficiency of risk capital, $10-20 billion can go an awfully long way. Arguably, there is no other industry or sector that can yield such a high return on committed money within a reasonably short few years.

Is it all about the money?

No, Europe is still a trickier market to scale than the U.S. Not only does Europe have to compete with the ready availability of capital in the U.S., but different regulatory environments, language barriers and a brain drain of talent attracted to Silicon Valley all combine to create impediments for European tech companies scaling in an interconnected world.

Funding, however, stands as the simplest of limiting factors to address. Especially when an analysis of the stats shows that whilst European tech companies are “saving” a lot of money, this directly contributes to far fewer of them being worth the mythical $1 billion+. A marginal uplift in capital would produce a disproportionately higher number of unicorns.

Netflix added 9.6M subscribers in Q1, with revenue of $4.5B

Netflix just released its earnings letter for the first quarter of 2019. Teh company says it saw growth of 9.6 million paying subscribers, up 16 percent year-over-year.

That’s significantly ahead of the 8.9 million new subscribers that analysts had predicted. On the financial side, it came in right at expectations, with revenue of $4.5 billion and earnings per share of 76 cents.

The company says it now has 148.9 million paid streaming memberships. Most of this growth (7.9 million of the net additions in Q1) is happening internationally.

Things aren’t looking quite as strong in Q2, with Netflix forecasting 5 million net additions, which would be 8 percent lower than growth during the same period in 2018.

As of 4:36pm Eastern, Netflix shares are down about 1.8 percent in after hours trading, presumably in response to that Q2 forecast.

This comes as Netflix is rolling out significant price hikes in the United States, Brazil, Mexico and parts of Europe.

“The response in the US so far is as we expected and is tracking similarly to what we saw in Canada following our Q4’18 increase, where our gross additions are unaffected, and we see some modest short-term churn effect as members consent to the price change,” the company says.

The letter also includes viewership numbers about a number of Netflix Originals. (Remember: This isn’t an apples-to-apples comparison with standard TV ratings.)

It says “The Umbrella Academy” was viewed by 45 million member households during its first four weeks on the service, “Triple Frontier” was viewed by 52 million households and “The Highwayman” is on-track to be watched by more than 40 million households. On the nonfiction side, the service’s Fyre Festival documentary was viewed by more than 20 million households.

The letter also says Netflix will be testing something new in the product in Q2, by releasing weekly top 10 lists of popular content for U.K. viewers: “For those who want to watch what others are watching, this may make choosing titles even easier.”

And of course, Netflix also faces increasing competition, with Apple and Disney both revealing more details about their upcoming streaming services in recent weeks.

Here’s how the letter discusses thos announcements.:

Both companies are world class consumer brands and we’re excited to compete; the clear beneficiaries will be content creators and consumers who will reap the rewards of many companies vying to provide a great video experience for audiences.

We don’t anticipate that these new entrants will materially affect our growth because the transition from linear to on demand entertainment is so massive ​and because of the differing nature of our content offerings​.

Amazon launches a certification program for Alexa skill developers

Developers building voice-enabled applications for Amazon Echo and other Alexa-powered devices will now have a new way to validate their abilities, with Amazon’s launch of a new AWS Certified Alexa Skill Builder – Speciality certification. This is the first time Amazon has offered a certification program for Alexa developers, the company says.

Certification programs are standard in the technology industry — and AWS already offers a training program and certifications of its own that allow organizations to identify professionals with cloud expertise and an understanding of AWS.

The new Alexa certification will be a speciality within the AWS program, and will validate those with an understanding of all aspects of Alexa voice app development.

This includes the more practical matters — like how to develop, test, validate and troubleshoot skills, the use of the Alexa Developer Console, how to manage skill operations and lifecycles, and more. But it will also get into more high-level concepts, like the “value of voice” and how a voice user experience should flow — something that many Alexa developers today still seem to struggle with.

To get started, developers can review a new exam guide which helps them learn about Alexa skill building through tutorials, technical documentation and more. Amazon is also making self-paced training courses available online.

When ready, developers aiming to get certified can create an AWS Training account, and schedule their exam.

The goal, says Amazon, is to open up “more opportunities to build engaging voice experiences” that can reach customers across the more than 100 million Alexa-enabled devices on the market today.

In other words, Amazon wants those Alexa developers dabbling with skill building to learn not only the basics, but also the industry best practices — then use this knowledge to create more skills that will actually resonate with customers.

The certification program arrives at a time when smart speakers have hit critical mass in the U.S., but the ecosystem of third-party skills has not had its “app store moment” with a breakout hit, as Bloomberg recently noted.

Arguably, music, timers and smart home controls are the breakout hits for smart speakers, but these are native functions. It’s unclear how many of Alexa’s 80K+ third-party skills have a long-term future if consumer adoption continues to struggle.

In the meantime, however, businesses are still keen on the platform, given the sizable installed base for Alexa. Every day, some organization is announcing the launch of its skill. (Today, for example, it’s the Red Cross.)

“The demand from organizations for skilled professionals who can build skills for emerging voice-enabled workloads is increasing,” says Kevin Kelly, director, AWS Certification and Education Programs, in a statement. “This new certification validates those skills with the only credential in the industry focused on Alexa skill building,” he added.

 

Qualcomm stock skyrockets 23% as Apple legal battle concludes

Qualcomm stock surged after the announcement that the company has settled its multi-billion dollar lawsuits with Apple. At market close Qualcomm’s stock price settled at $70.45 after opening at $57.46.

The stock surge showcases just how surprising the resolution is, especially given how wholeheartedly Apple appeared to be moving forward with Intel to keep Qualcomm tech out of their mobile devices. Qualcomm and Apple had spent the better part of more than two years engaged in a legal skirmish over outsized royalty payments, patent infringements and IP theft.

Beyond the legal resolution and an undisclosed payment from Apple to Qualcomm, the companies announced that they had come to a six-year licensing agreement and a multi-year chipset agreement, a deal that certainly assuages investor fears that the company was risking a relationship with a top customer in order to hold to its royalty guns, a move that carried the risk of damaging relationships with other partners as Apple urged suppliers to halt royalty payments during the dispute as well.

Intel and Apple stock were largely unaffected by the news.