Ottawa-based e-commerce giant Shopify has invested in American artificial intelligence (AI) company Crossing Minds.
According to Crossing Minds, the investment marks Shopify’s first in an AI-powered recommendation platform.
Fjolla Bakalli, Shopify’s manager of corporate development and strategic initiatives, said in a press release statement that the company’s strategic investment in Crossing Minds will help Shopify merchants “meet customer’s evolving needs” by providing product recommendations and personalized experiences.
According to Crossing Minds, the investment marks Shopify’s first in an AI-powered recommendation platform.
Although Crossing Minds is based in San Francisco, the startup opened an office in Toronto in January that houses five of the firm’s 22 employees. Radical Ventures, which led Crossing Minds’ Series A round, is also headquartered in Toronto.
In an interview with BetaKit, Crossing Minds co-founder and CEO Alexandre Robicquet—who is located in Vancouver—said that the startup wanted to dip its toes into Toronto’s machine learning talent pool and work more closely with Shopify.
When asked to confirm the exact amount of the investment by BetaKit, Shopify’s communications team did not respond. Robicquet also declined to disclose how much Shopify put into the startup to BetaKit, saying only that the size of the investment is “substantial,” and describing Shopify as a significant partner to Crossing Minds. Neither Bakalli nor anyone else from Shopify was made available for an interview.
For Shopify, the Crossing Minds deal represents the company’s latest in a long line of strategic investments in and acquisitions of tech startups, many of which serve Shopify’s merchant ecosystem.
Shopify has previously invested in Vancouver bookkeeping firm Bench, Israel-based e-commerce marketing company Yotpo, US customer relationship software startup Loop. Shopify also holds sizeable stakes in American payment processing firm Stripe and buy now, pay later company Affirm.
According to Bloomberg, Shopify is also reportedly in talks to buy San Francisco-based Deliverr, which provides fulfillment services to e-commerce merchants on marketplace platforms like Shopify. Shopify has made a number of strategic acquisitions to date, buying companies like Handshake to support its merchants and expand its platform. Earlier this month, Shopify quietly acquired New York’s Dovetale.
Crossing Minds was founded in 2017 by Robicquet, CTO Emile Contal, and Sebastian Thrun, formerly of Google X—Google’s secretive research and development (R&D) division. Crossing Minds’ platform uses AI to help businesses build stronger relationships with their customers, delivering recommendations that don’t jeopardize or infringe upon user privacy because they don’t use personal customer data or third-party cookies.
“Crossing Minds is leading the future of recommendation and personalization through best-in-class AI that will ultimately enable Shopify merchants to build stronger relationships with their customers,” said Bakalli in the press release.
The Shopify investment came as an extension to Crossing Minds’ $10 million USD Series A round, which the startup announced last October. This round was led by Toronto’s Radical, which specializes in AI companies. Crossing Minds’ raise came shortly after Radical expanded its leadership team by adding a new partner in San Francisco, where Crossing Minds is headquartered.
According to Robicquet, although Crossing Minds’ recommendation and personalization tech can apply to a number of different verticals, e-commerce is the “most demanding,” and “most starving for it” given that it can have such a clear impact on businesses’ bottom line. “We can play such a significant role there,” he added.
When asked what Crossing Minds plans to invest the capital from Shopify in, Robicquet said, “Canada, R&D, and building the team.”
“This is really our number one focus,” said the CEO. By the end of the year, Crossing Minds aims to grow its Canadian team to 10 to 12 employees, across AI, marketing, and sales functions.
Crossing Minds platform is now available to Shopify merchants as an unlisted app. The company plans to work with individual customers to roll out its platform.
Going forward, one of the “core” research projects Crossing Minds’ Canadian team has been tasked with is working on “automatic machine learning,” which Robicquet said will make the startup’s platform more scalable as it moves towards more of a self-service approach.
TORONTO – Canada’s main stock index was down more than 200 points in late-morning trading, weighed down by losses in the technology, base metal and energy sectors, while U.S. stock markets also fell.
The S&P/TSX composite index was down 239.24 points at 22,749.04.
In New York, the Dow Jones industrial average was down 312.36 points at 40,443.39. The S&P 500 index was down 80.94 points at 5,422.47, while the Nasdaq composite was down 380.17 points at 16,747.49.
The Canadian dollar traded for 73.80 cents US compared with 74.00 cents US on Thursday.
The October crude oil contract was down US$1.07 at US$68.08 per barrel and the October natural gas contract was up less than a penny at US$2.26 per mmBTU.
The December gold contract was down US$2.10 at US$2,541.00 an ounce and the December copper contract was down four cents at US$4.10 a pound.
This report by The Canadian Press was first published Sept. 6, 2024.
TORONTO – Canada’s main stock index was up more than 150 points in late-morning trading, helped by strength in technology, financial and energy stocks, while U.S. stock markets also pushed higher.
The S&P/TSX composite index was up 171.41 points at 23,298.39.
In New York, the Dow Jones industrial average was up 278.37 points at 41,369.79. The S&P 500 index was up 38.17 points at 5,630.35, while the Nasdaq composite was up 177.15 points at 17,733.18.
The Canadian dollar traded for 74.19 cents US compared with 74.23 cents US on Wednesday.
The October crude oil contract was up US$1.75 at US$76.27 per barrel and the October natural gas contract was up less than a penny at US$2.10 per mmBTU.
The December gold contract was up US$18.70 at US$2,556.50 an ounce and the December copper contract was down less than a penny at US$4.22 a pound.
This report by The Canadian Press was first published Aug. 29, 2024.
The crypto market has recently experienced a significant downturn, mirroring broader risk asset sell-offs. Over the past week, Bitcoin’s price dropped by 24%, reaching $53,000, while Ethereum plummeted nearly a third to $2,340. Major altcoins also suffered, with Cardano down 27.7%, Solana 36.2%, Dogecoin 34.6%, XRP 23.1%, Shiba Inu 30.1%, and BNB 25.7%.
The severe downturn in the crypto market appears to be part of a broader flight to safety, triggered by disappointing economic data. A worse-than-expected unemployment report on Friday marked the beginning of a technical recession, as defined by the Sahm Rule. This rule identifies a recession when the three-month average unemployment rate rises by at least half a percentage point from its lowest point in the past year.
Friday’s figures met this threshold, signaling an abrupt economic downshift. Consequently, investors sought safer assets, leading to declines in major stock indices: the S&P 500 dropped 2%, the Nasdaq 2.5%, and the Dow 1.5%. This trend continued into Monday with further sell-offs overseas.
The crypto market’s rapid decline raises questions about its role as either a speculative asset or a hedge against inflation and recession. Despite hopes that crypto could act as a risk hedge, the recent crash suggests it remains a speculative investment.
Since the downturn, the crypto market has seen its largest three-day sell-off in nearly a year, losing over $500 billion in market value. According to CoinGlass data, this bloodbath wiped out more than $1 billion in leveraged positions within the last 24 hours, including $365 million in Bitcoin and $348 million in Ether.
Khushboo Khullar of Lightning Ventures, speaking to Bloomberg, argued that the crypto sell-off is part of a broader liquidity panic as traders rush to cover margin calls. Khullar views this as a temporary sell-off, presenting a potential buying opportunity.
Josh Gilbert, an eToro market analyst, supports Khullar’s perspective, suggesting that the expected Federal Reserve rate cuts could benefit crypto assets. “Crypto assets have sold off, but many investors will see an opportunity. We see Federal Reserve rate cuts, which are now likely to come sharper than expected, as hugely positive for crypto assets,” Gilbert told Coindesk.
Despite the recent volatility, crypto continues to make strides toward mainstream acceptance. Notably, Morgan Stanley will allow its advisors to offer Bitcoin ETFs starting Wednesday. This follows more than half a year after the introduction of the first Bitcoin ETF. The investment bank will enable over 15,000 of its financial advisors to sell BlackRock’s IBIT and Fidelity’s FBTC. This move is seen as a significant step toward the “mainstreamization” of crypto, given the lengthy regulatory and company processes in major investment banks.
The recent crypto market downturn highlights its volatility and the broader economic concerns affecting all risk assets. While some analysts see the current situation as a temporary sell-off and a buying opportunity, others caution against the speculative nature of crypto. As the market evolves, its role as a mainstream alternative asset continues to grow, marked by increasing institutional acceptance and new investment opportunities.
