The general hype surrounding all things AI isn’t lifting all boats: some startups are still struggling and looking for exits.
In one of the latest developments, TechCrunch learned from a reliable source that Metropolisan artificial intelligence parking platform, buys Oostthe controversial computer vision company that was known as AnyVision. The source tells TechCrunch that the deal is valued at $125 million, just a third of the $380 million the startup has raised from investors over the years, and likely a fraction of its peak valuation.
Metropolis bought Oosto for $125 million is also reported in detail Israeli press. last week, Bullets published the news that Oosto was for sale. We understand that the two companies had already worked together prior to this deal and a large part of the transaction involves shares.
TechCrunch has reached out to both Metropolis and Oosto for more information, and we’ll update this post as we learn more.
If completed, the sale will cap a tumultuous several years for Oosto.
As AnyVision, the company was one of a wave of computer vision startups building technology used in controversial surveillance applications. Over the years, there have been exhibitions revealing which organizations were quietly using its technology and how Israeli government he used it to spy on the Palestinians. Other reports shed light about how much data the company was able to collect.
Bad publicity led to the company losing Microsoft as a key strategic investor, although other investors were ready to double down. In 2021, AnyVision, pitching itself as an ethical AI company, raised $235 million in a round led by SoftBank and Eldridge. Other company backers include Lightspeed and Qualcomm, respectively PitchBook data.
A few months after SoftBank’s big raise, AnyVision renamed Oosto and sought to shift to more enterprise applications as it signed a research partnership with Carnegie Mellon. But it seems the difficulties continued, with rounds of layoffs and Oosto parting ways with the university. Israeli newspaper Calcalist noted in a report on Monday that the company was not making more than $10 million in annual revenue.
It’s worth wondering if some of Oosto’s problems may have been a matter of time. The past two years have seen major geopolitical changes, AI has entered the mainstream of public consciousness, and a new wave of AI companies like Anduril and Helsing seem to be breaking many taboos around building military, defense and (more euphemistically) “ resilience”. technology.
Would AnyVision (or Oosto) appear as controversial today as it was five years ago? Regardless, Oosto’s rise and fall can be seen as a reminder of the newer wave of AI companies being funded today with very high hopes, but perhaps not very high revenues (let alone profits).
This brings us to Metropolis. It’s also focused on computer vision, but “focus” is perhaps the operative word here: Its square aim is to create artificial intelligence-based systems for parking, automatically tracking cars when they enter or leave a space and charging accordingly . In 2023, Metropolis raised $1.7 billion in funding and other investments, most of which was used to buy another parking technology specialist called SP Plus for $1.5 billion.
It remains to be seen whether Metropolis will use Oosto to continue building that business or expand into a wider range of mobility and other applications.
“From a technical point of view, this acquisition makes perfect sense,” Avihai Michaeli, an investment banking consultant based in Tel Aviv, told TechCrunch. “Both Metropolis and Oosto (formerly known as AnyVision Tech) are key players in the space of AI-based computer vision and security solutions, with applications that enhance urban management, public safety and automation. Both companies are focused on leveraging cutting-edge technology to create safer, smarter and more efficient environments through artificial intelligence and data analytics.”
He added that the current war in Israel has made it challenging for some Israeli companies looking to raise money or do other business, which could also play a role here.
