The general hype around all things AI isn’t lifting all ships, as some startups continue to struggle and look for exits.
In one of the latest developments, TechCrunch has learned and confirmed that Metropolis, an AI parking platform, is acquiring Oosto, the controversial computer vision company formerly known as AnyVision. TechCrunch understands the deal is valued at $125 million – just a third of the $380 million the startup had raised from investors over the years, and likely a fraction of its peak valuation.
A spokesperson for Metropolis confirmed the acquisition to TechCrunch over the phone. An official statement is forthcoming and we’ll update the post as we learn more. Metropolis will use some of Oosto’s technology to improve its current business.
Last week, the Globes broke the news that Oosto was up for sale. We understand that the two companies were already working together prior to this deal and a large part of the transaction involves stock.
The sale caps a turbulent few years for Ooston.
As AnyVision, the company was one of a wave of computer vision startups building technology used in controversial surveillance applications. Over the years, there were reports exposing which organizations were quietly using its technology and how the Israeli government used it to spy on Palestinians; other reports shed light on how much data the company was able to collect.
The bad publicity caused the company to lose Microsoft as a key strategic investor, although other investors were about to double down. In 2020, it appointed a new CEO, Avi Golan, who had worked at SoftBank, and then in 2021, AnyVision, pitching itself as an ethical AI company, raised $235 million in a round led by SoftBank and Eldridge. The company’s other backers have included Lightspeed and Qualcomm, according to PitchBook data.
Just months after SoftBank’s big raise, AnyVision rebranded as Oosto and tried to focus on more enterprise applications while signing 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 Monday that the company was making no 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 in military, defense, and (more euphemistically) building. “resistance”. technology.
Would AnyVision (or Oosto) have appeared as controversial today as it did five years ago? Regardless, the rise and fall of Oosto can be seen as a reminder to 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, too, is focused on computer vision, but “focus” is probably the operative word here: Its square goal is to build AI-based systems for parking environments, automatically tracking cars as they enter or exit a space, and charging accordingly. In 2023, Metropolis raised $1.7 billion in financing and other investments, most of which was used to acquire another parking technology specialist called SP Plus for $1.5 billion.
From what we understand the basic plan now will be to use the Oosto technology to improve Metropolis’ capabilities around computer vision in parking environments, rather than expanding to cover a number of other use cases. Over time, it may include more applications where customers regularly travel or enter and exit a business environment (for example car rides).
“Technically, this acquisition makes perfect sense,” Avihai Michaeli, an investment banking adviser based in Tel Aviv, told TechCrunch. “Both Metropolis and Oosto (formerly known as AnyVision Tech) are key players in the space of computer vision and AI-driven security solutions, with applications that improve urban management, public safety and automation. Both companies focus 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 may also have played a role here.
