SpotOn raises $300M at a $3.15B valuation and acquires Appetize

Last year at this time, SpotOn was on the brink of announcing a $60 million Series C funding round at a $625 million valuation.

Fast forward to almost exactly one year later, and a lot has changed for the payments and software startup.

Today, SpotOn said it has closed on $300 million in Series E financing that values the company at $3.15 billion — more than 5x of its valuation at the time of its Series C round, and significantly higher than its $1.875 billion valuation in May (yes, just three and a half months ago) when it raised $125 million in a Series D funding event.

Andreessen Horowitz (a16z) led both the Series D and E rounds for the company, which says it has seen 100% growth year over year and a tripling in revenue over the past 18 months. Existing investors DST Global, 01 Advisors, Dragoneer Investment Group, Franklin Templeton and Mubadala Investment Company too doubled down on their investments in SpotOn, joining new backers Wellington Management and Coatue Management. Advisors Douglas Merritt, CEO of Splunk, and Mike Scarpelli, CFO of Snowflake, also made individual investments as angels. With the new capital, SpotOn has raised $628 million since its inception.

The latest investment is being used to finance the acquisition of another company in the space — Appetize, a digital and mobile commerce payments platform for enterprises such as sports and entertainment venues, theme parks and zoos. SpotOn is paying $415 million in cash and stock for the Los Angeles-based company.

Since its 2017 inception, SpotOn has been focused on providing software and payments technology to SMBs with an emphasis on restaurants and retail businesses. The acquisition of Appetize extends SpotOn’s reach to the enterprise space in a major way. Appetize will go to market as SpotOn and will work to grow its client base, which already includes an impressive list of companies and organizations including Live Nation, LSU, Dodger Stadium and Urban Air. 

In fact, Appetize currently covers 65% of all major league sports stadiums, specializing in contactless payments, mobile ordering and menu management. So for example, when you’re ordering food at a game or concert, Appetize’s technology makes it easier to pay in a variety of contactless ways through point of sale (POS) devices, self-service kiosks, handheld devices, online ordering, mobile web and API integrations.

Image Credits: SpotOn

SpotOn is taking on the likes of Square in the payments space. But the company says its offering extends beyond traditional payment processing and point-of-sale software. Its platform aims to give SMBs the ability to run their businesses “from building a brand to taking payments and everything in between.” SpotOn’s goal is to be a “one-stop shop” by incorporating tools that include things such as custom website development, scheduling software, marketing, appointment scheduling, review management, analytics and digital loyalty.

The combined company will have 1,600 employees — 1,300 from SpotOn and 300 from Appetize. SpotOn will now have over 500 employees on its product and technology team, according to co-founder and co-CEO Zach Hyman. It will also have clients in the tens of thousands, a number that SpotOn says is growing by “thousands more every month.”

The acquisition is not the first for SpotOn, which also acquired SeatNinja earlier this year.

But in Appetize it saw a company that was complementary both in its go-to-market and tech stacks, and a “natural fit.”

SMEs are going to benefit from the scalable tech that can go with them, including things like kiosks and offline modes, and for the enterprise clients of Appetize, they’re going to be able to leverage products like sophisticated loyalty programs and extended marketing capabilities,” Hyman told TechCrunch. 

SpotOn was not necessarily planning to raise another round so soon, Hyman added, but the opportunity came up to acquire Appetize.

“We spent a lot of time together, and it was too compelling to pass up,” he told TechCrunch.

For its part, Appetize — which has raised over $77 million over its lifetime, according to Crunchbase — too saw the combination as a logical one.

“It was important to us to retain a stake in the business. We were not looking to cash out,” said Appetize CEO Max Roper. “We are deeply invested in growing the business together. It’s a big win for our team and our clients over the long term. This is a rocketship that we are excited to be on.” 

No doubt that the COVID-19 pandemic only emphasized the need for more digital offerings from small businesses to enterprises alike.

“There has been a high demand for our services and now as businesses are faced with a Covid resurgence, no one is closing down,” Hyman said. “So they see a responsibility to install the necessary technology to properly run their business.”

One of the moves SpotOn has made, for example, is launching a vaccination alert system in its reservation management software platform to make it easier for consumers to confirm they are vaccinated for cities and states that have those requirements.

Clearly, a16z General Partner David George too was bullish on the idea of a combined company.

He told TechCrunch that the two companies fit together “extremely nicely.”

“It felt like a no-brainer for us to want to lead the round, and continue to support them,” George said.

Since first investing in SpotOn in May, the startup’s growth has “exceeded” a16z’s expectations, he added.

“When companies are growing as fast as it is organically, they don’t need to rely on acquisitions to fuel growth,” he said. “But the strategic rationale here is so strong, that the acquisition will only turbocharge what is already high growth.”

While the Series E capital is primarily funding the acquisition, SpotOn continues to double down on its product and technology.

“This is our time to shine and invest in the future with forward thinking technology,” Hyman told TechCrunch. “We’re thinking about things like how are consumers going to be ordering their beer at a Dodgers game in three years? Are they going to be standing in line for 25 minutes or are they going to be interacting and buying merchandise in other unique ways? Those are the things we’re looking to solve for.”

#andreessen-horowitz, #appetize, #david-george, #dragoneer-investment-group, #dst-global, #finance, #fintech, #franklin-templeton, #funding, #fundings-exits, #instagram, #los-angeles, #ma, #mobile-web, #mubadala-investment-company, #online-payments, #payment-processing, #payments, #recent-funding, #saas, #san-francisco, #splunk, #spoton, #startup, #startups, #venture-capital

Maven’s comprehensive approach to women’s health earns it unicorn status

For Kate Ryder, the founder of women’s health clinic and benefits platform Maven, business is personal. During the first year of building her company, Ryder experienced a miscarriage. Maven began offering support for pregnancy loss and high-risk care management as the founder herself waded through the emotions and confusion of it.

Ryder was then a Maven “customer” for her following three pregnancies, using the platform for after-hours advice, virtual access to specialists or, more recently, guidance on how to prepare for a breech birth. As a founder-turned-repeat-customer, Ryder gained a key perspective on parenthood: it’s a diverse experience.

The insights were poured back into her business, a platform that offers services addressing everything from fertility to family care. And today, Maven is making history in its own way.

Maven announced that it has raised $110 million in a Series D financing co-led by Dragoneer Investment Group and Lux Capital. BOND also participated in the round, alongside existing investors, including Sequoia, Oak HC/FT and Icon Ventures. Oprah Winfrey also invested in the round, bringing Maven’s total known funding to date to $200 million.

The financing event valued Maven at $1 billion, a rare landmark moment for women’s health, and women-led startups more broadly.

Maven

After raising one of the largest Series C rounds for women’s health startups in 2020, Maven’s latest financing came after some strong growth.

The startup said that it has partnered with five new Fortune 15 clients, including Microsoft, and has achieved a near 100% retention rate. While the company didn’t disclose client growth more specifically, it did say that membership in its employer and payer-sponsored clinical problems increased 400% year over year — suggesting that revenue similarly grew as the company hit larger scale.

While COVID-19 refocused women’s health as a top priority, Maven began when that wasn’t a baseline assumption. The company was founded in 2014 to help working women plan and start families. It started by selling to employers as a benefits platform, which it still does today — the idea being that women could turn to their employers to get access to a network of women’s health and family health provider networks.

The focus has aged well as companies rethink health benefits in the wake of the coronavirus, which has disproportionately seen women depart from the workforce. Ryder says this wasn’t always the case, noting how many rejections she got in the early years of building.

After five years, Maven has grown to offer support services ranging from preconception to post-pregnancy to family care. Companies are able to offer their employees access to 30 different provider types, which include OB-GYNs, pediatricians, therapists and career coaches. Because the options can be overwhelming, Maven also introduced care advocates — people whose entire job it is to support existing patients in navigating the resources.

“For anyone who says that telemedicine isn’t important in this user journey is somebody who is not really deeply immersed in the needs of the patient,” Ryder said. “A new mom, particularly in childbirth recovery, has a baby and can’t really get out of bed and has all of these needs… There’s no better time to use telemedicine.”

More than 2,000 doctors, caretakers and specialists exist in Maven’s network, a total that represents over 250 subspecialties, from egg donor consultants to fertility awareness educators. The startup has served over 10 million women and families to date.

A growing focus for Maven is being able to match its members to providers who are culturally aware and relatable to them. Black women, for example, face higher mortality rates compared to their white counterparts — a factoid that seeded another startup, Expectful, to pivot its focus.

Ryder said that 40% of Maven’s providers are BIPOC, and can speak across 30 languages.

Even with the introduction of white-labeling services that make it easier for competitors to spin up telehealth services overnight, Ryder said Maven wants to stick to hiring in a more incremental way. The startup accepts about 35% of provider applications that it gets, she said.

“If we were starting today, we’d look at [outsourcing] platforms because we’d need it to compete in the market — we have the benefit of starting in 2014, when we were able to take our time and just be really thoughtful about the types of providers that work with Maven.”

The rise of competition makes Maven’s status as a unicorn more broadly relevant, with investors thinking it could prove opportunity in women’s health and give the growing sector a fresh consolidator to acquire some startups.

The rising tide

Maven’s raise wasn’t only a milestone from a fundraising perspective, but also a board perspective. Most of the startup’s investors are women and mothers, she noted — a bright spot when looking at data that suggests that nearly half of private companies don’t even have a woman on the board at all.

Deena Shakir, partner at lead investor Lux Capital, said this was her largest check to date into a startup.

“The idea of the woman as the primary decision maker in healthcare is just part of my overall thesis around women’s health,” Shakir said. “A woman is more than just, obviously, her reproductive identity — that’s for sure.” As well-funded startups in the mental health and musculoskeletal worlds — two other top priorities for employers — kept growing, Shakir felt like maternal health was the last top cost center that employers needed to address.

Maven is compelling to Shakir because of how comprehensive it is, which she thinks is increasingly important as new vendors and point solutions enter the market and exhaust employers through decision fatigue.

“It’s not just in maternity and it’s not just in fertility, and not just in pedes or mental health,” she added. Maven’s language is already starting to look more broad in branding, moving from women’s health to family and child health. “There’s also male infertility, couples therapy, and beyond the gender binary…it’s very sensitive to providing inclusive care for everyone.”

Ro’s acquisition of Modern Fertility showed that hormonal health and women’s health are being looked at as an attractive opportunity for digital health startups more broadly.

“Ro started off as men’s health,” Shakir said. “I’m excited for when it’s going to be the women’s health company that’s going to be making the other, you know, several $100 million acquisitions here.”

Christina Farr covered the rise of digital health as a journalist for CNBC before leaving her post to become an investor at OMERS Ventures, which does not have a stake in Maven.

As a reporter, Farr said that one of the things she would often hear is that women’s health was too niche as an investment category.

“Which is obviously upsetting, and just not true,” Farr said. “How could you ever refer to 50% of the population as niche on top of the fact that women are the primary buyers of healthcare services in their household — to me that’s just an ignorant perspective.”

Farr said that she’s not aware of any other companies in the digital health, women’s health space that have raised this much money with a female-founder. “I believe at this stage, the CEO became a man,” she said, of another startup. Long-term, Farr thinks that Maven has the potential to bring together a lot of the different point solutions for women and family health under one roof, whether it’s postpartum recovery or physical health.

“In my mind, these companies can exist in their own right, but there’s also an incredible value to pulling together all of us in one kind of platform in one place,” she said. “I think a big kind of potential area for Maven is to be a navigator for all the women’s health solutions that are out there.”

Ryder maintains that her personal experience has given her a lot of opinions — ones that she thinks have helped the company stay focused, even in the wake of new competition and potential acquisitions.

“We know what we stand for, we know what we do for patients, we know that our care model works, and so we’re unwilling to kind of bend,” she said. “If there’s the latest shininess that everyone goes rushing for that doesn’t help the patient, then we’re not going to run towards it.”

#digital-health, #dragoneer-investment-group, #health, #lux-capital, #maven, #recent-funding, #startups, #tc, #womens-health

This Week in Apps: In-app events hit the App Store, TikTok tries Stories, Apple reveals new child safety plan

Welcome back to This Week in Apps, the weekly TechCrunch series that recaps the latest in mobile OS news, mobile applications and the overall app economy.

The app industry continues to grow, with a record 218 billion downloads and $143 billion in global consumer spend in 2020. Consumers last year also spent 3.5 trillion minutes using apps on Android devices alone. And in the U.S., app usage surged ahead of the time spent watching live TV. Currently, the average American watches 3.7 hours of live TV per day, but now spends four hours per day on their mobile devices.

Apps aren’t just a way to pass idle hours — they’re also a big business. In 2019, mobile-first companies had a combined $544 billion valuation, 6.5x higher than those without a mobile focus. In 2020, investors poured $73 billion in capital into mobile companies — a figure that’s up 27% year-over-year.

This Week in Apps offers a way to keep up with this fast-moving industry in one place, with the latest from the world of apps, including news, updates, startup fundings, mergers and acquisitions, and suggestions about new apps and games to try, too.

Do you want This Week in Apps in your inbox every Saturday? Sign up here: techcrunch.com/newsletters

Top Stories

Apple to scan for CSAM imagery

Apple announced a major initiative to scan devices for CSAM imagery. The company on Thursday announced a new set of features, arriving later this year, that will detect child sexual abuse material (CSAM) in its cloud and report it to law enforcement. Companies like Dropbox, Google and Microsoft already scan for CSAM in their cloud services, but Apple had allowed users to encrypt their data before it reached iCloud. Now, Apple’s new technology, NeuralHash, will run on users’ devices, tatformso detect when a users upload known CSAM imagery — without having to first decrypt the images. It even can detect the imagery if it’s been cropped or edited in an attempt to avoid detection.

Meanwhile, on iPhone and iPad, the company will roll out protections to Messages app users that will filter images and alert children and parents if sexually explicit photos are sent to or from a child’s account. Children will not be shown the images but will instead see a grayed-out image instead. If they try to view the image anyway through the link, they’ll be shown interruptive screens that explain why the material may be harmful and are warned that their parents will be notified.

Some privacy advocates pushed back at the idea of such a system, believing it could expand to end-to-end encrypted photos, lead to false positives, or set the stage for more on-device government surveillance in the future. But many cryptology experts believe the system Apple developed provides a good balance between privacy and utility, and have offered their endorsement of the technology. In addition, Apple said reports are manually reviewed before being sent to the National Center for Missing and Exploited Children (NCMEC).

The changes may also benefit iOS developers who deal in user photos and uploads, as predators will no longer store CSAM imagery on iOS devices in the first place, given the new risk of detection.

In-App Events appear on the App Store

Image Credits: Apple

Though not yet publicly available to all users, those testing the new iOS 15 mobile operating system got their first glimpse of a new App Store discovery feature this week: “in-app events.” First announced at this year’s WWDC, the feature will allow developers and Apple editors alike to showcase directly on the App Store upcoming events taking place inside apps.

The events can appear on the App Store homepage, on the app’s product pages or can be discovered through personalized recommendations and search. In some cases, editors will curate events to feature on the App Store. But developers will also be provided tools to submit their own in-app events. TikTok’s “Summer Camp” for creators was one of the first in-app events to be featured, where it received a top spot on the iPadOS 15 App Store.

Weekly News

Platforms: Apple

Apple expands support for student IDs on iPhone and Apple Watch ahead of the fall semester. Tens of thousands more U.S. and Canadian colleges will now support mobile student IDs in the Apple Wallet app, including Auburn University, Northern Arizona University, University of Maine, New Mexico State University and others.

Apple was accused of promoting scam apps in the App Store’s featured section. The company’s failure to properly police its store is one thing, but to curate an editorial list that actually includes the scams is quite another. One of the games rounded up under “Slime Relaxations,” an already iffy category to say the least, was a subscription-based slime simulator that locked users into a $13 AUD per week subscription for its slime simulator. One of the apps on the curated list didn’t even function, implying that Apple’s editors hadn’t even tested the apps they recommend.

Tax changes hit the App Store. Apple announced tax and price changes for apps and IAPs in South Africa, the U.K. and all territories using the Euro currency, all of which will see decreases. Increases will occur in Georgia and Tajikistan, due to new tax changes. Proceeds on the App Store in Italy will be increased to reflect a change to the Digital Services Tax effective rate.

Game Center changes, too. Apple said that on August 4, a new certificate for server-based Game Center verification will be available via the publicKeyUrl.

Fintech

Robinhood stock jumped more than 24% to $46.80 on Tuesday after initially falling 8% on its first day of trading last week, after which it had continued to trade below its opening price of $38.

Square’s Cash app nearly doubled its gross profit to $546 million in Q2, but also reported a $45 million impairment loss on its bitcoin holdings.

Coinbase’s app now lets you buy your cryptocurrency using Apple Pay. The company previously made its Coinbase Card compatible with Apple Pay in June.

Social

An anonymous app called Sendit, which relies on Snap Kit to function, is climbing the charts of the U.S. App Store after Snap suspended similar apps, YOLO and LMK. Snap was sued by the parent of child who was bullied through those apps, which led to his suicide. Sendit also allows for anonymity, and reviews compare it to YOLO. But some reviews also complained about bullying. This isn’t the first time Snap has been involved in a lawsuit related to a young person’s death related to its app. The company was also sued for its irresponsible “speed filter” that critics said encouraged unsafe driving. Three young men died using the filter, which captured them doing 123 mph.

TikTok is testing Stories. As Twitter’s own Stories integrations, Fleets, shuts down, TikTok confirmed it’s testing its own Stories product. The TikTok Stories appear in a left-hand sidebar and allow users to post ephemeral images or video that disappear in 24 hours. Users can also comment on Stories, which are public to their mutual friends and the creator. Stories on TikTok may make more sense than they did on Twitter, as TikTok is already known as a creative platform and it gives the app a more familiar place to integrate its effects toolset and, eventually, advertisements.

Facebook has again re-arranged its privacy settings. The company continually moves around where its privacy features are located, ostensibly to make them easier to find. But users then have to re-learn where to go to find the tools they need, after they had finally memorized the location. This time, the settings have been grouped into six top-level categories, but “privacy” settings have been unbundled from one location to be scattered among the other categories.

A VICE report details ban-as-a-service operations that allow anyone to harass or censor online creators on Instagram. Assuming you can find it, one operation charged $60 per ban, the listing says.

TikTok merged personal accounts with creator accounts. The change means now all non-business accounts on TikTok will have access to the creator tools under Settings, including Analytics, Creator Portal, Promote and Q&A. TikTok shared the news directly with subscribers of its TikTok Creators newsletter in August, and all users will get a push notification alerting them to the change, the company told us.

Discord now lets users customize their profile on its apps. The company added new features to its iOS and Android apps that let you add a description, links and emojis and select a profile color. Paid subscribers can also choose an image or GIF as their banner.

Twitter Spaces added a co-hosting option that allows up to two co-hosts to be added to the live audio chat rooms. Now Spaces can have one main host, two co-hosts and up to 10 speakers. Co-hosts have all the moderation abilities as hosts, but can’t add or remove others as co-hosts.

Messaging

Tencent reopened new user sign-ups for its WeChat messaging app, after having suspended registrations last week for unspecified “technical upgrades.” The company, like many other Chinese tech giants, had to address new regulations from Beijing impacting the tech industry. New rules address how companies handle user data collection and storage, antitrust behavior and other checks on capitalist “excess.” The gaming industry is now worried it’s next to be impacted, with regulations that would restrict gaming for minors to fight addiction.

WhatsApp is adding a new feature that will allow users to send photos and videos that disappear after a single viewing. The Snapchat-inspired feature, however, doesn’t alert you if the other person takes a screenshot — as Snap’s app does. So it may not be ideal for sharing your most sensitive content.

Telegram’s update expands group video calls to support up to 1,000 viewers. It also announced video messages can be recorded in higher quality and can be expanded, regular videos can be watched at 0.5 or 2x speed, screen sharing with sound is available for all video calls, including 1-on-1 calls, and more.

Streaming & Entertainment

American Airlines added free access to TikTok aboard its Viasat-equipped aircraft. Passengers will be able to watch the app’s videos for up to 30 minutes for free and can even download the app if it’s not already installed. After the free time, they can opt to pay for Wi-Fi to keep watching. Considering how easy it is to fall into multi-hour TikTok viewing sessions without knowing it, the addition of the addictive app could make long plane rides feel shorter. Or at least less painful.

Chinese TikTok rival Kuaishou saw stocks fall by more than 15% in Hong Kong, the most since its February IPO. The company is another victim of an ongoing market selloff triggered by increasing investor uncertainty related to China’s recent crackdown on tech companies. Beijing’s campaign to rein in tech has also impacted Tencent, Alibaba, Jack Ma’s Ant Group, food delivery company Meituan and ride-hailing company Didi. Also related, Kuaishou shut down its controversial app Zynn, which had been paying users to watch its short-form videos, including those stolen from other apps.

Twitch overtook YouTube in consumer spending per user in April 2021, and now sees $6.20 per download as of June compared with YouTube’s $5.60, Sensor Tower found.

Image Credits: Sensor Tower

Spotify confirmed tests of a new ad-supported tier called Spotify Plus, which is only $0.99 per month and offers unlimited skips (like free users get on the desktop) and the ability to play the songs you want, instead of only being forced to use shuffle mode.

The company also noted in a forum posting that it’s no longer working on AirPlay2 support, due to “audio driver compatibility” issues.

Mark Cuban-backed audio app Fireside asked its users to invest in the company via an email sent to creators which didn’t share deal terms. The app has yet to launch.

YouTube kicks off its $100 million Shorts Fund aimed at taking on TikTok by providing creators with cash incentives for top videos. Creators will get bonuses of $100 to $10,000 based on their videos’ performance.

Dating

Match Group announced during its Q2 earnings it plans to add to several of the company’s brands over the next 12 to 24 months audio and video chat, including group live video, and other livestreaming technologies. The developments will be powered by innovations from Hyperconnect, the social networking company that this year became Match’s biggest acquisition to date when it bought the Korean app maker for a sizable $1.73 billion. Since then, Match was spotted testing group live video on Tinder, but says that particular product is not launching in the near-term. At least two brands will see Hyperconnect-powered integrations in 2021.

Photos

The Photo & Video category on U.S. app stores saw strong growth in the first half of the year, a Sensor Tower report found. Consumer spend among the top 100 apps grew 34% YoY to $457 million in Q2 2021, with the majority of the revenue (83%) taking place on iOS.

Image Credits: Sensor Tower

Gaming

Epic Games revealed the host of its in-app Rift Tour event is Ariana Grande, in the event that runs August 6-8.

Pokémon GO influencers threatened to boycott the game after Niantic removed the COVID safety measures that had allowed people to more easily play while social distancing. Niantic’s move seemed ill-timed, given the Delta variant is causing a new wave of COVID cases globally.

Health & Fitness

Apple kicked out an app called Unjected from the App Store. The new social app billed itself as a community for the unvaccinated, allowing like-minded users to connect for dating and friendships. Apple said the app violated its policies for COVID-19 content.

Google Pay expanded support for vaccine cards. In Australia, Google’s payments app now allows users to add their COVID-19 digital certification to their device for easy access. The option is available through Google’s newly updated Passes API which lets government agencies distribute digital versions of vaccine cards.

COVID Tech Connect, a U.S. nonprofit initially dedicated to collecting devices like phones and tablets for COVID ICU patients, has now launched its own app. The app, TeleHome, is a device-agnostic, HIPAA-compliant way for patients to place a video call for free at a time when the Delta variant is again filling ICU wards, this time with the unvaccinated — a condition that sometimes overlaps with being low-income. Some among the working poor have been hesitant to get the shot because they can’t miss a day of work, and are worried about side effects. Which is why the Biden administration offered a tax credit to SMBs who offered paid time off to staff to get vaccinated and recover.

Popular journaling app Day One, which was recently acquired by WordPress.com owner Automattic, rolled out a new “Concealed Journals” feature that lets users hide content from others’ viewing. By tapping the eye icon, the content can be easily concealed on a journal by journal basis, which can be useful for those who write to their journal in public, like coffee shops or public transportation.

Edtech

Recently IPO’d language learning app Duolingo is developing a math app for kids. The company says it’s still “very early” in the development process, but will announce more details at its annual conference, Duocon, later this month.

Educational publisher Pearson launched an app that offers U.S. students access to its 1,500 titles for a monthly subscription of $14.99. the Pearson+ mobile app (ack, another +), also offers the option of paying $9.99 per month for access to a single textbook for a minimum of four months.

News & Reading

Quora jumps into the subscription economy. Still not profitable from ads alone, Quora announced two new products that allow its expert creators to monetize their content on its service. With Quora+ ($5/mo or $50/yr), subscribers can pay for any content that a creator paywalls. Creators can choose to enable a adaptive paywall that will use an algorithm to determine when to show the paywall. Another product, Spaces, lets creators write paywalled publications on Quora, similar to Substack. But only a 5% cut goes to Quora, instead of 10% on Substack.

Utilities

Google Maps on iOS added a new live location-sharing feature for iMessage users, allowing them to more easily show your ETA with friends and even how much battery life you have left. The feature competes with iMessage’s built-in location-sharing feature, and offers location sharing of 1 hour up to 3 days. The app also gained a dark mode.

Security & Privacy

Controversial crime app Citizen launched a $20 per month “Protect” service that includes live agent support (who can refer calls to 911 if need be). The agents can gather your precise location, alert your designated emergency contacts, help you navigate to a safe location and monitor the situation until you feel safe. The system of live agent support is similar to in-car or in-home security and safety systems, like those from ADT or OnStar, but works with users out in the real world. The controversial part, however, is the company behind the product: Citizen has been making headlines for launching private security fleets outside law enforcement, and recently offered a reward in a manhunt for an innocent person based on unsubstantiated tips.

Funding and M&A

? Square announced its acquisition of the “buy now, pay later” giant AfterPay in a $29 billion deal that values the Australian firm at more than 30% higher than the stock’s last closing price of AUS$96.66. AfterPay has served over 16 million customers and nearly 100,000 merchants globally, to date, and comes at a time when the BNPL space is heating up. Apple has also gotten into the market recently with an Affirm partnership in Canada.

? Gaming giant Zynga acquired Chinese game developer StarLark, the team behind the mobile golf game Golf Rival, from Betta Games for $525 million in both cash and stock. Golf Rival is the second-largest mobile golf game behind Playdemic’s Golf Clash, and EA is in the process of buying that studio for $1.4 billion.

?  U.K.-based Humanity raised an additional $2.5 million for its app that claims to help slow down aging, bringing the total raise to date to $5 million. Backers include Calm’s co-founders, MyFitness Pal’s co-founder and others in the health space. The app works by benchmarking health advice against real-world data, to help users put better health practices into action.

? YELA, a Cameo-like app for the Middle East and South Asia, raised $2 million led by U.S. investors that include Tinder co-founder Justin Mateen and Sean Rad, general partner of RAD Fund. The app is focusing on signing celebrities in the regions it serves, where smartphone penetration is high and over 6% of the population is under 35.

? London-based health and wellness app maker Palta raised a $100 million Series B led by VNV Global. The company’s products include Flo.Health, Simple Fasting, Zing Fitness Coach and others, which reach a combined 2.4 million active, paid subscribers. The funds will be used to create more mobile subscription products.

? Emoji database and Wikipedia-like site Emojipedia was acquired by Zedge, the makers of a phone personalization app offering wallpapers, ringtones and more to 35 million MAUs. Deal terms weren’t disclosed. Emojipedia says the deal provides it with more stability and the opportunity for future growth. For Zedge, the deal provides?….um, a popular web resource it thinks it can better monetize, we suspect.

? Mental health app Revery raised $2 million led by Sequoia Capital India’s Surge program for its app that combines cognitive behavioral therapy for insomnia with mobile gaming concepts. The company will focus on other mental health issues in the future.

? London-based Nigerian-operating fintech startup Kuda raised a $55 million Series B, valuing its mobile-first challenger bank at $500 million. The inside round was co-led by Valar Ventures and Target Global.

? Vietnamese payments provider VNLife raised $250 million in a round led by U.S.-based General Atlantic and Dragoneer Investment Group. PayPal Ventures and others also participated. The round values the business at over $1 billion.

Downloads

Mastodon for iPhone

Fans of decentralized social media efforts now have a new app. The nonprofit behind the open source decentralized social network Mastodon released an official iPhone app, aimed at making the network more accessible to newcomers. The app allows you to find and follow people and topics; post text, images, GIFs, polls, and videos; and get notified of new replies and reblogs, much like Twitter.

Xingtu

@_666eveITS SO COOL FRFR do u guys want a tutorial? #fypシ #醒图 #醒图app♬ original sound – Ian Asher

TikTok users are teaching each other how to switch over to the Chinese App Store in order to get ahold of the Xingtu app for iOS. (An Android version is also available.) The app offers advanced editing tools that let users edit their face and body, like FaceTune, apply makeup, add filters and more. While image-editing apps can be controversial for how they can impact body acceptance, Xingtu offers a variety of artistic filters which is what’s primarily driving the demand. It’s interesting to see the lengths people will go to just to get a few new filters for their photos — perhaps making a case for Instagram to finally update its Post filters instead of pretending no one cares about their static photos anymore.

Tweets

Facebook still dominating top charts, but not the No. 1 spot:  

Not cool, Apple: 

This user acquisition strategy: 

Maybe Stories don’t work everywhere: 

#adt, #afterpay, #alibaba, #android, #ant-group, #api, #app-maker, #app-store, #apple, #apps, #australia, #automattic, #beijing, #biden-administration, #canada, #china, #cloud-services, #coinbase, #coinbase-card, #computing, #day-one, #dragoneer-investment-group, #driver, #dropbox, #duolingo, #emojipedia, #eta, #facebook, #fintech-startup, #food-delivery, #game-center, #game-developer, #general-atlantic, #general-partner, #georgia, #gif, #google, #hyperconnect, #instagram, #ios, #ios-devices, #ipad, #iphone, #italy, #itunes, #jam-fund, #justin-mateen, #kuaishou, #kuda, #law-enforcement, #london, #ma, #maine, #meituan, #microsoft, #middle-east, #mobile, #mobile-app, #mobile-applications, #mobile-devices, #online-creators, #onstar, #operating-system, #palta, #playdemic, #quora, #sean-rad, #sensor-tower, #sequoia-capital, #smartphone, #snap, #snapchat, #social-network, #social-networking, #software, #south-africa, #south-asia, #spotify, #stories, #target-global, #tc, #this-week-in-apps, #tiktok, #twitch, #united-kingdom, #united-states, #valar-ventures, #viasat, #vnv-global, #wi-fi, #wordpress-com, #zedge, #zynga

South African payments startup Yoco raises $83M Series C backed by Dragoneer

Small and medium enterprises (SMEs) contribute heavily to the economic success of many countries, particularly those in the developing world. They are the backbone of most economies: Globally, SMEs represent about 90% of existing businesses and create more than 50% of employment.

In South Africa, these businesses contribute around one-third of the country’s GDP. Last year, the coronavirus pandemic threatened the existence of some of these SMEs, and its effects linger as owners worry about revenue, sales and cash flow.

Since launching in 2013, South African fintech Yoco has positioned itself as the go-to platform to access offline payments among merchants in the country. Today, the company is announcing $83 million in Series C funding to scale offline and online offerings and expand to new markets.

Despite South Africa’s high card and mobile penetration rates of over 70%, the country’s SMEs still struggle to accept cards. Yoco’s portable card machines have proved masterful in solving this problem; when TechCrunch covered the company three years ago after its $16 million Series B raise, it had little over 30,000 merchants using its platform. Now, that number has quintupled.

As Yoco grew exponentially in providing offline payments, it built an online offering. After being in beta for a while, the rollout came right on time some days into South Africa’s lockdown in March last year. This way, South African merchants could continue accepting payments on the platform.

“We want to offer whatever payment methods our merchants need. And we did start in the in-person payment space, focusing on terminals, which was where the biggest demand was,” chief business officer Carl Wazen said. “But the pandemic, which had a devastating effect on so many businesses that relied on in-person trade, accelerated the need for businesses to accept payments online.”

During the height of the lockdowns in South Africa, sentiment across SMEs owners on a scale of -100 to 100 dropped to an all-time low of -12 in Q2 2020, according to Yoco’s small business pulse monitor. It has since improved following the easing of the lockdowns, allowing businesses to move more freely and continue in-person payments. As a result, Yoco’s online payments account for a minute part of the transactions made on the platform.

But that’s not to say people are transacting with cash. In fact, it’s the opposite, according to Wazen. Wazen says one post-pandemic behavior he noticed was that once the lockdown was lifted, people came back to make in-person payments in an accelerated way because they stopped using cash. “Recent consumer behavior shows a shift away from cash, and businesses have to rapidly adapt to this change. This presents a huge opportunity, and it is our mission to support that transition,” he added.

Earlier this year, chief executive Katlego Maphai said Yoco was looking to expand its services into other aspects of digital payments. He listed mobile money, QR payments and electronic funds transfer (ETF) as offerings in its pipeline. Wazen corroborated this, but didn’t provide an update about where the company is with these offerings. He did mention, however, that the company is still very much a card-focused payment provider.

Yoco’s strategy as the foremost card payments provider in South Africa lies in creating access and removing barriers to adopting digital financial services. The company does that by focusing on product capabilities that Wazen claims are the most comprehensive for small and medium businesses. He adds that in terms of market presence, Yoco is also the easiest for merchants to access services through different channels seamlessly.

“We’ve got a brand that is recognized now. That’s how we win and it’s about staying as focused as possible on that part of the market that, in our opinion, people like other competitors are not focused on enough.”

South Africa has over 6 million small businesses that still transact only in cash; this provides a huge opportunity for Yoco. According to the company, the number of small businesses that were fully cashless jumped 300% from March to July 2020. Yoco currently serves 150,000 of these businesses and adds over 500 merchants per day. The company claims to be processing more than $1 billion in card payments per year, and in its six years of existence, it has processed over $2 billion in card payments.

Yoco

Image Credits: Yoco

Yoco has raised a total of $107 million. The company’s Series C investment is the largest of its kind in South Africa and one of the largest for any African fintech (third only to Flutterwave and Chipper Cash). Wazen also claims it is the largest by any small business-focused payments platform in the Middle East and Africa.

Yoco is currently one of the most valuable startups on the continent, and as a fintech startup, it comes as no surprise. The sector continues to dominate startup venture capital funding in Africa while its heavy hitters bring first-time investors to the continent.

In Yoco’s case, it’s Dragoneer Investment Group. The fund has famously backed fintech giants like Chime, Klarna, Nubank, Mercado Libre and Square.

Other investors that participated include new investors Breyer Capital, HOF Capital, The Raba Partnership, 4DX Ventures and TO Ventures; and existing investors Partech, Velocity Capital Fintech Ventures, Orange Ventures and Quona Capital. Current and former executives from global tech companies such as Coinbase, Revolut, Spotify and Gojek took part as well.

“We couldn’t be more excited to partner with the Yoco team,” Christian Jensen, co-head of private investments at Dragoneer, said in a statement. “At Dragoneer, we look for great teams that are building durable businesses with wonderful economic models, and that is exactly what we’ve found at Yoco. Yoco is already beloved by customers, and the product roadmap that the company is investing behind will drive even more value for merchants. While there is tremendous room for continued growth domestically, the opportunity for Yoco goes well beyond South Africa.”

There are three core enablers to Yoco’s thriving business, Wazen pointed out. First is its product capabilities, second is its platform and third is its market presence. This investment will be there to accelerate all three. Yoco is transitioning from a pure payment acceptance play into a full financial ecosystem on the product side. The platform play will see Yoco continue to integrate and take advantage of regulatory easing vertically, and Yoco is deepening its market presence in South Africa.

While Wazen believes Yoco has barely scratched the surface in South Africa, he’s looking forward to replicating its growth in other parts of Africa and the Middle East. With over 100 million SMEs transacting in cash across both regions, Yoco plans to reach at least a million within the next four years.

To accomplish this, Yoco is increasing its team by 200 people remotely and across its offices in Cape Town and Amsterdam within the next year. The company is also tapping into a current trend that has seen African soonicorns and unicorns hire former top employees from global companies to scale theirs to new heights. While it doesn’t mention names, some of Yoco’s new hires include a former VP of product at Monzo, a former product marketing director at Paypal and a former head of communications at Uber. The company has also brought on board a new chairman, Juan Fuentes, the former managing director of fintech unicorn Pagseguro.

#africa, #dragoneer-investment-group, #funding, #online-payments, #payments, #south-africa, #startups, #tc, #yoco

SpotOn raises $125M in a16z-led Series D, triples valuation to $1.875B

Certain industries were hit harder by the COVID-19 pandemic than others, especially in its early days.

Small businesses, including retailers and restaurants, were negatively impacted by lockdowns and the resulting closures. They had to adapt quickly to survive. If they didn’t use much technology before, they were suddenly being forced to, as so many things shifted to digital last year in response to the COVID-19 pandemic. For companies like SpotOn, it was a pivotal moment. 

The startup, which provides software and payments for restaurants and SMBs, had to step up to help the businesses it serves. Not only for their sake, but its own.

“We really took a hard look at what was happening to our clients. And we realized we needed to pivot, just to be able to support them,” co-CEO and co-founder Matt Hyman recalls. “We had to make a decision because our revenues also were taking a big hit, just like our clients were. Rather than lay off staff or require salary deductions, we stayed true to our core values and just kept plugging away.”

All that “plugging away” has paid off. Today, SpotOn announced it has achieved unicorn status with a $125 million Series D funding round led by Andreessen Horowitz (a16z).

Existing backers DST Global, 01 Advisors, Dragoneer Investment Group and Franklin Templeton also participated in the financing, in addition to new investor Mubadala Investment Company. 

Notably, the round triples the company’s valuation to $1.875 billion compared to its $625 million valuation at the time of its Series C raise last September. It also marks San Francisco-based SpotOn’s third funding event since March 2020, and brings the startup’s total funding to $328 million since its 2017 inception.

Its efforts have also led to impressive growth for the company, which has seen its revenue triple since February 2020, according to Hyman.

Put simply, SpotOn is taking on the likes of Square in the payments space. But the company says its offering extends beyond traditional payment processing and point-of-sale (POS) software. Its platform aims to give SMBs the ability to run their businesses “from building a brand to taking payments and everything in-between.” SpotOn’s goal is to be a “one-stop shop” by incorporating tools that include things such as custom website development, scheduling software, marketing, appointment scheduling, review management, analytics and digital loyalty.

When the pandemic hit, SpotOn ramped up and rolled out 400 “new product innovations,” Hyman said. It also did things like waive $1.5 million in fees (it’s a SaaS business, so for several months it waived its monthly fee, for example, for its integrated restaurant management system). It also acquired a company, SeatNinja, so that it could expand its offering.

“Because a lot of these businesses had to go digital literally overnight, we built a free website for them all,” Hyman said. SpotOn also did things like offer commission-free online ordering for restaurants and helped retail merchants update their websites for e-commerce. “Obviously these businesses were resilient,” Hyman said. “But such efforts also created a lot of loyalty.” 

Today, more than 30,000 businesses use SpotOn’s platform, according to Hyman, with nearly 8,000 of those signing on this year. The company expects that number to triple by year’s end.

Currently, its customers are split about 60% retail and 40% restaurants, but the restaurant side of its business is growing rapidly, according to Hyman.

The reason for that, the company believes, is while restaurants initially rushed to add online ordering for delivery or curbside pickup, they soon realized they “wanted a more affordable and more integrated solution.”

Image Credits: SpotOn co-founders Zach Hyman, Doron Friedman and Matt Hyman / SpotOn

What makes SpotOn so appealing to its customers, Hyman said, is the fact that it offers an integrated platform so that businesses that use it can save “thousands of dollars” in payments and software fees to multiple, “à la carte” vendors. But it also can integrate with other platforms if needed.

In addition to growing its customer base and revenue, SpotOn has also boosted its headcount to about 1,250 employees (from 850 in March of 2020). Those employees are spread across its offices in San Francisco, Chicago, Detroit, Denver, Mexico City, Mexico and Krakow, Poland.

SpotOn is not currently profitable, which Hyman says is “by choice.”

“We could be cash flow positive technically whenever we choose to be. Right now we’re just so focused on product innovation and talent to exceed the needs of our clients,” he said. “We chose the capital plan so that we could really just double down on what’s working so well.”

The new capital will go toward further accelerating product development and expanding its market presence.

“We’re doubling down on our single integrated restaurant management system,” Hyman said. 

The raise marks the first time that a16z has put money in the startup, although General Partner David George told TechCrunch he was familiar with co-founders Matt Hyman and Zach Hyman through mutual friends.

George estimates that about 80% of restaurants and SMBs use legacy solutions “that are clunky and outdated, and not very customer friendly.” The COVID-19 pandemic has led to more of these businesses seeking digital options.

“We think we’re in the very early days in the transition [to digital], and the opportunity is massive,” he told TechCrunch. “We believe we’re at the tipping point of a big tech replacement cycle for restaurant and small business software, and at the very early stages of this transition to modern cloud-native solutions.”

George was also effusive in his praise for how SpotOn has executed over the past 14 months.

“There are companies that build great products, and companies that can build great sales teams. And there are companies that offer really great customer service,” he said. “It’s rare that you find two of those and extremely rare to find all three of those as we have in SpotOn.”

#advisors, #andreessen-horowitz, #business-software, #chicago, #cloud, #denver, #detroit, #dragoneer-investment-group, #dst-global, #e-commerce, #finance, #fintech, #franklin-templeton, #fundings-exits, #krakow, #mexico, #mexico-city, #mubadala-investment-company, #olo, #payment-processing, #payments, #point-of-sale, #poland, #recent-funding, #saas, #san-francisco, #series-c, #spoton, #startup, #startups, #tc, #venture-capital

Indian logistics SaaS startup FarEye raises $100 million

FarEye, an Indian SaaS startup that helps firms globally optimize their supply chain and logistics operations, said on Tuesday it has raised a new financing round, its third since the pandemic broke last year, as it looks to further expand in international markets.

The Noida-headquartered startup has raised $100 million in its Series E round, which was co-led by high-profile backers TCV and Dragoneer Investment Group. Existing investors Eight Roads Ventures, Fundamentum, Honeywell also participated in the round, which takes seven-and-a-half-year-old startup’s to-date raise to about $153 million.

FarEye helps companies orchestrate, track, and optimize their logistics operations. The startup’s flagship logistics management software supports the entire supply chain — from first-mile seller pick-ups to last-mile delivery — to provide end-to-end logistics visibility, reduce operational costs and improve customer experience.

One use case of FarEye’s technology, as we wrote last year:

Say you order a pizza from Domino’s, the eatery uses FarEye’s service, which integrates into the system it is using, to quickly inform the customer how long they need to wait for the food to reach them.

Behind the scenes, FarEye is helping Domino’s evaluate a number of moving pieces. How many delivery people are in the vicinity? Can it bundle a few orders? What’s the maximum number of items one can carry? How experienced is the delivery person? What’s the best route to reach the customer? And, would the restaurant need the same number of delivery people the following day?

The startup works with over 150 e-commerce and delivery companies globally — including popular names such as Walmart, UPS, DHL e-commerce, Domino’s, Posti, and Gordon Foods, and Amway — and processes over 100 million transactions each month.

More than two million vehicles and over 25,000 drivers are on FarEye’s platform today.

The coronavirus pandemic has helped the business as more companies, including large FMCG brands and retailers, begin to engage directly with customers, sort out their logistics and look for optimizing the cost, said Nahata in an interview.

“It’s not like these companies didn’t knew,” Nahata said, referring to companies building and digitizing their own logistics. “Earlier this was on their three-to-five year plans, but now they want to deploy this in within a quarter.”

Gautam Kumar (left), Gaurav Srivastava (centre), and Kushal Nahata co-founded FarEye in 2013

“The logistics and supply chain industry is going through a long awaited software-led creative disruption, led by emerging leaders like FarEye that provide multi- tenant SaaS platforms with low code configuration to enhance visibility to the enterprise and deliver superlative last mile experiences for the end consumer. Gopi Vaddi, General Partner at TCV,

Customers are also beginning to place more orders online. “For existing customers, we have seen an increase in volume of orders especially in grocery and food categories,” Nahata said.

The firm today also has clients in several international markets including the U.S., Europe, and Singapore, that is already bringing more than half of revenues for the startup and has grown nearly three times in the past 12 months.

Nahata said the startup didn’t initially think that Western markets would be prone to similar logistics challenges as those in India and other Asian markets, but despite the growth of e-commerce in some markets, some common underlying issues remain.

Nahata also pointed out that the payments infrastructure that has emerged in India in recent years still doesn’t exist in other markets, which creates an additional challenge to tackle for the firm.

“FarEye’s leading delivery management platform provides impressive visibility and control across the supply chain, which has never been more critical for retailers, manufacturers and 3PLs,” said Eric Jones, Partner at Dragoneer Investment Group, in a statement. “We look forward to partnering with FarEye as they continue to redefine how products are delivered across diverse logistics networks and expand their footprint in Europe and North America.”

The startup recently hired a number of senior executives including a new CRO (Amit Bagga — formerly President of APAC at BlueYonder and  and strategic sales leader at Oracle), and a new CPO (Suvrat Joshi — former executive at Dropbox, Amazon, Facebook, Microsoft.) It’s looking to further expand the team and is also open to exploring acquisition of smaller firms in international markets, said Nahata.

#asia, #dragoneer-investment-group, #eight-roads-ventures, #fareye, #funding, #honeywell, #india, #logistics, #tc, #tcv

India’s CRED valued at $2.2 billion in new $215 million fundraise

Two-year-old CRED has become the youngest Indian startup to be valued at $2 billion or higher.

Bangalore-based CRED said on Tuesday it has raised $215 million in a new funding round — a Series D — that valued the Indian startup at $2.2 billion (post-money), up from about $800 million valuation in $81 million Series C round in January this year.

New investor Falcon Edge Capital and existing investor Coatue Management led the new round. Insight Partners and existing investors DST Global, RTP Global, Tiger Global, Greenoaks Capital, Dragoneer Investment Group, and Sofina also participated in the new round, which brings CRED’s total to-date raise to about $443 million.

TechCrunch reported last month that CRED was in advanced stages of talks to raise about $200 million at a valuation of around $2 billion.

CRED operates an app that rewards customers for paying their credit card bills on time and gives them access to a range of additional services such as credit and a premium catalog of products from high-end brands.

An individual needs to have a credit score of at least 750 to be able to sign up for CRED. By keeping such a high bar, the startup says it is ensuring that people are incentivized to improve their financial behavior. (More on this later.)

CRED today serves more than 6 million customers, or about 22% of all credit card holders — and 35% of all premium credit card holders — in the world’s second largest internet market.

Kunal Shah, founder and chief executive of CRED, told TechCrunch in an interview that the startup intends to become the platform for affluent customers in India and also not limit its offerings to financial services.

He said the startup’s e-commerce service, for instance, has been growing fast. He attributed the early success to customers enjoying the curation of items on CRED and merchants finding the platform appealing as ticket size of each transaction on CRED is higher.

The startup plans to deploy the fresh funds to scale several of its revenue channels and engage in more experimentations, he said.

When asked whether CRED would like to serve all credit card users in India some day, Shah said the selection criteria limits the startup from doing so, but he said he was optimistic that more users will improve their scores in the future.

The startup, unlike most others in India, doesn’t focus on the usual TAM (addressable market) — hundreds of millions of users of the world’s second-most populated nation — and instead caters to some of the most premium audiences.

Consumer segmentation and addressable market for fintech firms in India (BofA Research)

“India has 57 million credit cards (vs 830 million debit cards) [that] largely serves the high-end market. The credit card industry is largely concentrated with the top 4 banks (HDFC, SBI, ICICI and Axis) controlling about 70% of the total market. This space is extremely profitable for these banks – as evident from the SBI Cards IPO,” analysts at Bank of America wrote in a recent report to clients.

“Very few starts-ups like CRED are focusing on this high-end base and [have] taken a platform-based approach (acquire customers now and look for monetization later). Credit card in India remains an aspirational product. The under penetration would likely ensure continued strong growth in coming years. Overtime, the form-factor may evolve (i.e. move from plastic card to virtual card), but the inherent demand for credit is expected to grow,” they added.

CRED has become one of the most talked about startups in India, in part because of the pace at which it has raised money of late, its growing valuation, and the fact that it only caters to select customers.

Some users have also said that CRED no longer offers them the perks it used a year ago.

Shah said CRED is addressing those concerns. A recent feature, which allows customers to use CRED points at over a thousand merchants, for instance, has made the reward more appealing, he said, adding that the startup is slowly incorporating that into its own e-commerce store as well.

“What will soon happen is that customers will realize that these points are asset and not a liability. They will start to see benefits of the points in more places,” he said, adding that the pandemic derailed some of the things CRED had planned for in the real world.

The startup, which bought back shares worth $1.2 million from employees in January this year, told them in an email today that it will soon be buying back stocks worth $5 million. “As the funding helps CRED invest in its future, hopefully the buyback will help some of you do that too,” the email said.

#apps, #asia, #coatue-management, #cred, #dragoneer-investment-group, #dst-global, #falcon-edge-capital, #finance, #funding, #greenoaks-capital, #india, #kunal-shah, #rtp-global, #sofina, #tiger-global

With an ARR topping $250 million, LA’s vertical SAAS superstar ServiceTitan is now worth $8.3 billion

Who knew building a vertical software as a service toolkit focused on home heating and cooling could be worth $8.3 billion?

That’s how much Los Angeles-based ServiceTitan, a startup founded just eight years ago is worth now, thanks to some massive tailwinds around homebuilding and energy efficiency that are serving to boost the company’s bottom line and netting it an unprecedented valuation for a vertical software company, according to bankers.

The company’s massive mint comes thanks to a new $500 million financing round led by Sequoia’s Global Equities fund and Tiger Global Management.

ServiceTitan’s backers are a veritable who’s who of the venture industry, with longtime white shoe investors like Battery Ventures, Bessemer Venture Partners and Index Ventures joining the later stage investment funds like T. Rowe Price, Dragoneer Investment Group, and ICONIQ Growth.

In all, the new $500 million round likely sets the stage for a public offering later this year or before the end of 2022 if market conditions hold.

ServiceTitan now boasts more than 7,500 customers that employ more than 100,000 technicians and conduct nearly $20 billion worth of transactions providing services ranging from plumbing, air conditioning, electrical work, chimney, pest services and lawn care.

If Angi and Thumbtack are the places where homeowners go to find services and technicians, then ServiceTitan is where those technicians go to manage and organize their own businesses.

Based in Glendale, Calif., with satellite offices in Atlanta and Armenia, ServiceTitan built its business to solve a problem that its co-founders knew intimately as the children of parents whose careers were spent in the HVAC business.

The market for home services employs more than 5 million workers in the US and represents a trillion dollar global market.

Despite the siren song of global expansion, there’s likely plenty of room for ServiceTitan to grow in the U.S. Home ownership in the country is at a ten-year high thanks to the rise of remote work and an exodus from the largest American cities accelerated by the COVID-19 pandemic.

A focus on energy efficiency and a desire to reduce greenhouse gas emissions will likely cause a surge in residential and commercial retrofits which will also boost new business. Indeed these trends were already apparent in the statistic that home improvement spending was up 3 percent in 2020 even though the broader economy shrank by 3.5 percent.

“We depend on the men and women of the trades to maintain our life support systems: running water, heat, air conditioning, and power,” said Ara Mahdessian, co-founder and CEO of ServiceTitan. “Today, as both homeownership rates and time spent at home reach record highs, these essential service providers are facing rising demand from an increasingly tech-savvy homeowner. By providing contractors with the tools they need to deliver a great customer experience and grow their businesses with ease, ServiceTitan is enabling the hardworking men and women of the trades to reach the level of success they deserve.”

#armenia, #atlanta, #battery-ventures, #bessemer-venture-partners, #california, #chase-coleman, #dragoneer-investment-group, #energy-efficiency, #finance, #greenhouse-gas-emissions, #iconiq-growth, #investment, #los-angeles, #sequoia, #servicetitan, #software, #t-rowe-price, #tc, #thumbtack, #tiger-global-management, #united-states

Roblox raises at $29.5 billion valuation, readies for direct listing

Roblox is now one of the world’s most valuable private companies in the world after a monster Series H raise brings the social gaming platform a stratospheric $29.5 billion valuation. The company won’t be private for long, though.

The $520 million raise led by Altimeter Capital and Dragoneer Investment Group is a significant cash influx for Roblox, which had previously raised just over $335 million from investors according to Crunchbase. The Investment Group of Santa Barbara, Warner Music Group, and a number of current investors, also participated in this round.

In February of 2020, the company closed a $150 million Series G led by Andreessen Horowitz which valued the company at $4 billion.

The gaming startup has initially planned an IPO in 2020, but after the major first day pops of DoorDash and Airbnb, the company leadership reconsidered their timeline, according to a report in Axios. Those major say-one share price pops left significant money on the table for the companies selling those shares, an outcome Roblox is likely looking to avoid. Today, the company also announced that it plans to enter the public markets via a direct listing.

Roblox’s 7x valuation multiple signals just how feverish public and private markets are for tech stocks. The valuation also highlights how investors foresee the company benefiting from pandemic trends which pushed more users online and towards social gaming platforms. In a 2019 prospectus, the company shared that it had 17.6 million users, now Roblox claims to have 31 million daily active users on its platform.

#airbnb, #altimeter-capital, #andreessen-horowitz, #computing, #crunchbase, #doordash, #dragoneer-investment-group, #gaming, #online-games, #roblox, #tc, #valuation, #video-gaming, #warner-music-group, #websites

Carbon Health raises $100 million with plans to expand pop-up clinics ahead of COVID-19 vaccination programs

Carbon Health has raised a $100 million Series C funding round, led by Dragoneer Investment Group and including participation from prior investors Brookfield Technology Partners, DCVC and Builders VC. This funding will be used to help the SF-based healthcare provider startup to continue to expand its nationwide footprint, including with the opening of 100 pop-up clinics planned for across 20 markets across the U.S.

This past year has seen Carbon Health expand from just seven clinics to 27, spread out across six different states. The company, which focuses on primary care, has also introduced virtual care options with an emphasis on what it calls “omnichannel” care, or offering services in whatever method is most convenient, effective and appropriate for its customers. The startup has always aimed at a hybrid care approach, but it’s emphasizing the flexibility of its model in response to COVID-19, and has in particular accelerated its plans around its pop-up clinics.

These are deployed in under-utilized spaces in regions where additional care options are needed, including parking lots and garages. Carbon Health partnered early with Reef Technology on opening these locations, using shipping-container style mobile trailers to provide on-site care. Carbon Health founder and CEO Eren Bali explained to me that while remote care can be very effective, in some instances, it requires some nurse practitioner support with virtual physician-guided services to provide a complete solution for customers.

The company is also looking to support greater testing capacity using this model, and eventually looking ahead to providing an infrastructure that can help with widespread COVID-19 vaccine distribution, once one is ready to go. While some scientific results this week have been very promising, including with Pfizer’s Phase 3 clinical trial, ultimately the effort of undertaking a national vaccine inoculation program will require cooperation among many stakeholders, including primary care providers.

#biotech, #builders-vc, #ceo, #dcvc, #dragoneer-investment-group, #eren-bali, #funding, #health, #health-care, #medical-research, #omnichannel, #pfizer, #primary-care, #recent-funding, #reef-technology, #startup-funding, #startups, #tc, #united-states, #vaccine