Airwallex raises $200M at a $4B valuation to double down on business banking

Business, now more than ever before, is going digital, and today a startup that’s building a vertically integrated solution to meet business banking needs is announcing a big round of funding to tap into the opportunity. Airwallex — which provides business banking services both directly to businesses themselves, as well as via a set of APIs that power other companies’ fintech products — has raised $200 million, a Series E round of funding that values the Australian startup at $4 billion.

Lone Pine Capital is leading the round, with new backers G Squared and Vetamer Capital Management, and previous backers 1835i Ventures (formerly ANZi), DST Global, Salesforce Ventures and Sequoia Capital China, also participating.

The funding brings the total raised by Airwallex — which has head offices in Hong Kong and Melbourne, Australia — to date to $700 million, including a $100 million injection that closed out its Series D just six months ago.

Airwallex will be using the funding both to continue investing in its product and technology, as well as to continue its geographical expansion and to focus on some larger business targets. The company has started to make some headway into Europe and the UK and that will be one big focus, along with the U.S.

The quick succession of funding, and that rising valuation, underscore Airwallex’s traction to date around what CEO and co-founder Jack Zhang describes as a vertically integrated strategy.

That involves two parts. First, Airwallex has built all the infrastructure for the business banking services that it provides directly to businesses with a focus on small and medium enterprise customers. Second, it has packaged up that infrastructure into a set of APIs that a variety of other companies use to provide financial services directly to their customers without needing to build those services themselves — the so-called “embedded finance” approach.

“We want to own the whole ecosystem,” Zhang said to me. “We want to be like the Apple of business finance.”

That seems to be working out so far for Airwallex. Revenues were up almost 150% for the first half of 2021 compared to a year before, with the company processing more than US$20 billion for a global client portfolio that has quadrupled in size. In addition to tens of thousands of SMEs, it also, via APIs, powers financial services for other companies like GOAT, Papaya Global and Stake.

Airwallex got its start like many of the strongest startups do: it was built to solve a problem that the founders encountered themselves. In the case of Airwallex, Zhang tells me he had actually been working on a previous start-up idea. He wanted to build the “Blue Bottle Coffee” of Asia out of Hong Kong, and it involved buying and importing a lot of different materials, packaging and of course coffee from all around the world.

“We found that making payments as a small business was slow and expensive,” he said, since it involved banks in different countries and different banking systems, manual efforts to transfer money between them and many days to clear the payments. “But that was also my background — payments and trading — and so I decided that it was a much more fascinating problem for me to work on and resolve.”

Eventually one of his co-founders in the coffee effort came along, with the four co-founders of Airwallex ultimately including Zhang, along with Xijing Dai, Lucy Liu and Max Li.

It was 2014, and Airwallex got attention from VCs early on in part for being in the right place at the right time. A wave of startups building financial services for SMBs were definitely gaining ground in North America and Europe, filling a long-neglected hole in the technology universe, but there was almost nothing of the sort in the Asia Pacific region, and in those earlier days solutions were highly regionalized.

From there it was a no-brainer that starting with cross-border payments, the first thing Airwallex tackled, would soon grow into a wider suite of banking services involving payments and other cross-border banking services.

“In last 6 years, we’ve built more than 50 bank integrations and now offer payments 95 countries payments through a partner network,” he added, with 43 of those offering real-time transactions. From that, it moved on the bank accounts and “other primitive stuff” with card issuance and more, he said, eventually building an end-to-end payment stack. 

Airwallex has tens of thousands of customers using its financial services directly, and they make up about 40% of its revenues today. The rest is the interesting turn the company decided to take to expand its business.

Airwallex had built all of its technology from the ground up itself, and it found that — given the wave of new companies looking for more ways to engage customers and become their one-stop shop — there was an opportunity to package that tech up in a set of APIs and sell that on to a different set of customers, those who also provided services for small businesses. That part of the business now accounts for 60% of Airwallex’s business, Zhang said, and is growing faster in terms of revenues. (The SMB business is growing faster in terms of customers, he said.)

A lot of embedded finance startups that base their business around building tech to power other businesses tend to stay arm’s length from offering financial services directly to consumers. The explanation I have heard is that they do not wish to compete against their customers. Zhang said that Airwallex takes a different approach, by being selective about the customers they partner with, so that the financial services they offer would never be the kind that would not be in direct competition. The GOAT marketplace for sneakers, or Papaya Global’s HR platform are classic examples of this.

However, as Airwallex continues to grow, you can’t help but wonder whether one of those partners might like to gobble up all of Airwallex and take on some of that service provision role itself. In that context, it’s very interesting to see Salesforce Ventures returning to invest even more in the company in this round, given how widely the company has expanded from its early roots in software for salespeople into a massive platform providing a huge range of cloud services to help people run their businesses.

For now, it’s been the combination of its unique roots in Asia Pacific, plus its vertical approach of building its tech from the ground up, plus its retail acumen that has impressed investors and may well see Airwallex stay independent and grow for some time to come.

“Airwallex has a clear competitive advantage in the digital payments market,” said David Craver, MD at Lone Pine Capital, in a statement. “Its unique Asia-Pacific roots, coupled with its innovative infrastructure, products and services, speak volumes about the business’ global growth opportunities and its impressive expansion in the competitive payment providers space. We are excited to invest in Airwallex at this dynamic time, and look forward to helping drive the company’s expansion and success worldwide.”

#airwallex, #articles, #asia, #asia-pacific, #australia, #bank, #banking, #blue-bottle-coffee, #cloud-services, #dst-global, #economy, #embedded-finance, #enterprise, #europe, #finance, #financial-services, #funding, #goat, #hr, #lone-pine-capital, #melbourne, #north-america, #papaya-global, #salesforce, #salesforce-ventures, #sequoia-capital-china, #series-d, #startup-company, #united-kingdom, #united-states, #veem

As UK Gov reaches out to tech, investors threaten to ‘pull capital’ over M&A regulator over-reach

UK competition regulators are spooking tech investors in the country with an implied threat to clamp down on startup M&A, according to a new survey of the industry.

As the UK’s Chancellor of the Exchequer engaged with the tech industry at a ‘Chatham House’ style event today, the Coalition for a Digital Economy (Coadec) think-tank released a survey of over 50 key investors which found startup investors are prepared to pull capital over the prospect of the Competition and Markets Authority’s (CMA) new Digital Markets Unit (DMU) becoming a “whole-economy regulator by accident”. Investors are concerned after the CMA recommended the DMU be given ‘expanded powers’ regarding its investigations of M&A deals.

Controversy has been stirring up around the DMU, as the prospect of it blocking tech startup acquisitions – especially by US firms, sometimes on the grounds of national security – has gradually risen.

In the Coadec survey, half of investors said they would significantly reduce the amount they invested in UK startups if the ability to exit was restricted, and a further 22.5% said they would stop investing in UK startups completely under a stricter regulatory environment.

Furthermore, 60% of investors surveyed said they felt UK regulators only had a “basic understanding” of the startup market, and 22.2% felt regulators didn’t understand the tech startup market at all.

Coadec said its conservative estimates showed that the UK Government’s DMU proposals could create a £2.2bn drop in venture capital going into the UK, potentially reducing UK economic growth by £770m.

Commenting on the report, Dom Hallas, Executive Director of Coadec, said: “Startups thrive in competitive markets. But nurturing an ecosystem means knowing where to intervene and when not to. The data shows that not only is there a risk that the current proposals could miss some bad behavior in some areas like B2B markets whilst creating unnecessary barriers in others like M&A. Just as crucially, there’s frankly not a lot of faith in the regulators proposing them either.”

The survey results emerged just as Chancellor Rishi Sunak convened the “Treasury Connect” conference in London today which brought together some of the CEOs of the UK’s biggest tech firms and VCs in a ‘listening process’ designed to reach out to the industry.

However, at a press conference after the event, Sunak pushed back on the survey results, citing research by Professor Jason Furman, Chair, of the Digital Competition Expert Panel, which has found that “not a single acquisition” had been blocked by the DMU, and there are “no false positives” in decision making to date. Sunak said the “system looks at this in order to get the balance right.”

In addition, a statement from the Treasury, out today, said more than one-fifth of people in the UK’s biggest cities are now employed in the tech sector, which also saw £11.2 billion invested last year, setting a new investment record, it claimed.

Sunak also said the Future Fund, which backed UK-based tech firms with convertible loans during the pandemic, handed UK taxpayers with stakes in more than 150 high-growth firms.

These include Vaccitech PLC, which co-invented the COVID-19 vaccine with the University of Oxford and is better known as the AstraZeneca vaccine which went to 170 countries worldwide. The Future fund also invested in Century Tech, an EdTEch startup that uses AI to personalize learning for children.

The UK government’s £375 million ‘Future Fund: Breakthrough’ initiative continued from July this year, aiming at high-growth, R&D-intensive companies.

Coadec’s survey also found 70% of investors felt UK regulators “only thought about large incumbent firms” when designing competition rules, rather than startups or future innovation.

However, the survey found London was still rated as highly as California as an attractive destination for startups and investors.

#artificial-intelligence, #astrazeneca, #california, #chair, #coalition-for-a-digital-economy, #competition-and-markets-authority, #corporate-finance, #digital-markets-unit, #economy, #entrepreneurship, #europe, #finance, #jason-furman, #london, #money, #private-equity, #startup-company, #tc, #uk-government, #united-kingdom, #united-states, #venture-capital

Sendoso nabs $100M as its corporate gifting platform passes 20,000 customers

Corporate gift services have come into their own during the Covid-19 pandemic by standing in as a proxy for other kinds of relationship building activities — office meetings, lunches, and hosting at events — that have traditionally been part and parcel of how people do business, but were no longer feasible during lockdowns, social distancing and offices closing their doors.

Now, Sendoso — a popular “end-to-end” gifting platform offering access to 30,000 products including corporate swag, regular physical gifts, gift cards and more; and then providing services like logistics, packing and sending to get those gifts to the recipients — is announcing $100 million of funding to capitalize on this shift, led by a big new investor.

New backer SoftBank, via its Vision Fund 2, is leading this latest Series C round of funding. Oak HC/FT, Struck Capital, Stage 2 Capital, Craft Ventures, Signia Venture Partners and Felicis Ventures — all previous investors — are also participating.

The company has been on a strong growth trajectory for years now, but it specifically saw a surge of activity as the pandemic kicked off. It now has more than 20,000 businesses signed up and using its services, particularly for sales and marketing outreach, but also to help shore up morale among employees.

“Everyone was stuck at home by themselves, saturated with emails,” said Kris Rudeegraap, the CEO of Sendoso, in an interview. “Having a personal connection to sales prospects, employees and others just meant more.” It has now racked up some 3 million gifts sent since launching in 2016.

Sendoso is not disclosing its valuation, but Rudeegraap hinted that it was four times higher than the startup’s Series B valuation from 2020. PitchBook estimates that to be $160 million, which would make the current valuation $640 million. The company has now raised over $150 million.

Rudeegraap said Sendoso will be using the funds in part to invest in a couple of areas. First, to hire more talent: it has 500 employees now and plans to grow that by 30% by the end of this year. And second, international expansion: it is setting up a European HQ in Dublin, Ireland to complement its main office in San Francisco.

Comcast, Kimpton Hotels, Thomson Reuters, Nasdaq and eBay are among its current customers — so this is in part to serve those customers’ global user bases, as well as to sign up new gifters. He estimated that the bigger market for corporate gifting is about $100 billion annually, so there is a lot to play for here.

The company was co-founded by Rudeegraap and Braydan Young (who is its chief alliances officer) on the back of a specific need Rudeegraap identified while working as a sales executive. Gifting is a very standard practice in the world of sales and marketing, but he was finding a lot of traction with potential and current customers by taking a personalized approach to this act.

“I was manually packing boxes, grabbing swag, coming up with handwritten notes,” he recalled. “It was inefficient, but it worked so well. So I dreamed up an idea: why not be able to click a button in Salesforce to do this automatically? Sometimes the best company is one that solves a pain point of your own.”

And this is essentially what Sendoso does. The startup’s platform integrates with a company’s existing marketing, sales and management software — Salesforce, HubSpot, SalesLoft among them — and then lets users use this to organize and order gifts through these channels, for example as part of larger sales, marketing or HR strategies. The gifts are wide-ranging, covering corporate swag, other physical presents, gift cards and more, and there are also integrations you can include to share gifting across teams of salespeople, to analyze the campaigns and more.

The Sendoso platform itself, meanwhile, positions itself as having the “marketplace selection and logistics precision of Amazon.com.” But Sendoso also believes it’s better than someone simply using Amazon.com itself since it ultimately takes a more personalized approach in how it presents the gift.

“There are a lot of things we do uniquely in terms of what we have built throughout our software, gifting options and logistics centre. We really personalize our gifts at scale with handwritten notes, special boxing, and more,” something that Amazon cannot do, he added. “We have built a lot of unique technology and logistics software that would make it hard for Amazon to compete.” He said that one of Sendoso’s integrations is actually with Amazon, so Sendoso users can order through there, but then the gift is first routed to Sendoso to be repackaged in a nicer way before being sent out.

At its heart, the startup has built a way of knitting together disparate work practices — some codified in software, and some based on human interactions and significantly more infused with randomness, emotion and ad hoc approaches — and built it all into a technology platform. The ability to scale what feels like an otherwise bespoke level of service is what has helped Sendoso gain traction not just with users, but investors, too:

“We believe Sendoso offers the most comprehensive end-to-end gifting platform in the market,” said Priya Saiprasad, a partner at SoftBank Investment Advisers. “Their platform includes a global marketplace of curated vendors, seamless integration with existing tools, global logistics, and deep analytics. As a result, Sendoso serves as the backbone to enterprises’ engagement programs with prospective customers, existing customers, employees and other key stakeholders. We’re excited to lead this Series C round to help Sendoso accelerate its vision.”

#amazon, #amazon-com, #business, #ceo, #comcast, #companies, #craft-ventures, #dublin, #ebay, #economy, #enterprise, #felicis-ventures, #funding, #gift, #gift-card, #giving, #hubspot, #ireland, #marketing, #partner, #salesforce, #salesloft, #san-francisco, #sendoso, #signia-venture-partners, #softbank, #softbank-group, #stage-2-capital, #struck-capital, #vision-fund

Commercetools raises $140M at a $1.9B valuation as ‘headless’ commerce continues to boom

E-commerce these days is now a major part of every retailer’s strategy, so technology builders and platforms that are helping them compete better on digital screens are seeing a huge boost in business. In the latest turn, Commercetools — a provider of e-commerce APIs that larger retailers can use to build customized payment, check-out, social commerce, marketplace and other services — has closed $140 million in funding, a Series C that CEO Dirk Hoerig has confirmed to me values the company at $1.9 billion. 

The funding is being led by Accel, with previous investors Insight Partners and REWE Group also participating. Munich, Germany-based Commercetools spun out of REWE — a giant German retailer, and also a customer — and announced $145 million in investment led by Insight in October 2019.

This latest round represents a huge hike on its valuation since then, when Commercetools was valued at around $300 million.

Part of the reason for the big bump, of course, has been the wave of interest in digital transactions from shopping online. E-commerce was already growing at a steady pace before 2020, by some estimates representing more than half of all commerce transactions. The Covid-19 pandemic turbo-charged that proportion, with many retailers switching exclusively to internet sales, and consumers stuck at home happy to shop with a click.

While companies like Shopify have addressed the needs of smaller retailers, providing them with an alternative or complement to listing on third-party marketplaces like Amazon’s, Commercetools has built its business around catering to larger retailers and the many specific, large-scale needs and investment budgets that they may have for building their digital commerce solutions.

It provides some 300 APIs today around some nine “buckets” of services, and a wide network of integration partners, Hoerig said, and powers some $10 billion of sales annually for its customers, which include the likes of Audi, AT&T, Danone, Tiffany & Co., John Lewis and many others.

“Our main focus is the retailer with more than $100 million in gross merchandise value,” Hoerig said. “This is when it becomes interesting.” But he added that the force of market growth is such that Commercetools is also seeing a lot of business from smaller companies that are simply needing more functionality to address their fast growth. “So we also sometimes have customers that start at $5 million in GMV and quickly go to $50 million. With that scale, they also have specific requirements, so the lines get a bit blurry.” (And that also explains why investors are so interested: there is a lot of evidence of the market growing and growing; and by capturing smaller retailers on big trajectories, that represents a lot more scale for Commercetools.)

Hoerig is sometimes credited with being the person who first coined the term “headless commerce”, which basically means APIs that can be used by a company, or its team of strategists, developers and designers, to build their own customized check-out and other purchasing experiences, rather than fitting these into templates provided by the tech company powering the checkout.

But as the API economy has continued to grow, and the world of non-tech companies that use tech continues to mature, that has taking on a mass-market appeal, and so Commercetools is far from being the only one in this area. In addition to Shopify (which has its own version targeting larger businesses, Shopify Plus), others include SprykerSwellFabricChord and Shogun.

Commercetools will be using the funding both to continue organically expanding its business, but also to make some acquisitions to bolt on new customers, and new technology, tapping into some of the scaling and consolidation that is taking place across e-commerce as a whole. What will be interesting to see is where consolidation will happen, and which startups will be raising money to scale on their own: right now there is a lot of enthusiasm around the space because it is so buoyant, and that will spell more money being funneled to more startups.

Case in point: when I first got wind of this funding round, Commercetools told me it was in the middle of a deal to acquire a company. In the end, that company decided to stay independent and take some more investment to try to grow on its own. Hoerig said it’s now pursuing another target.

Indeed, that is also the bigger force that has brought Commercetools to where it is today.

“The chance to invest in a fast-growing, innovative commerce platform was one we could not pass up,” said Ping Li, the partner at Accel who led on this deal, said in a statement. “Commercetools provides e-commerce enterprises the technology necessary to capture revenue in the rapidly growing global e-commerce market.”

#accel, #api, #articles, #att, #audi, #business, #ceo, #commercetools, #content-management-systems, #danone, #e-commerce, #ecommerce, #economy, #europe, #germany, #headless-commerce, #insight-partners, #munich, #ping-li, #shopify, #social-commerce

Billogram, provider of a payments platform specifically for recurring billing, raises $45M

Payments made a huge shift to digital platforms during the Covid-19 pandemic — purchasing moved online for many consumers and businesses; and a large proportion of those continuing to buy and sell in-person went cash-free. Today a startup that has been focusing on one specific aspect of payments — recurring billing — is announcing a round of funding to capitalize on that growth with expansion of its own. Billogram, which has built a platform for third parties to build and handle any kind of recurring payments (not one-off purchases), has closed a round of $45 million.

The funding is coming from a single investor, Partech, and will be used to help the Stockholm-based startup expand from its current base in Sweden to six more markets, Jonas Suijkerbuijk, Billogram’s CEO and founder, said in an interview, to cover more of Germany (where it’s already active now), Norway, Finland, Ireland, France, Spain, and Italy.

The company got its start working with SMBs in 2011 but pivoted some years later to working with larger enterprises, which make up the majority of its business today. Suijkerbuijk said that in 2020, signed deals went up by 300%, and the first half of 2021 grew 50% more on top of that. Its users include utilities like Skanska Energi and broadband company Ownit, and others like remote healthcare company Kry, businesses that take invoice and take monthly payments from their customers.

While there has been a lot of attention around how companies like Apple and Google are handling subscriptions and payments in apps, what Billogram focuses on is a different beast, and much more complex: it’s more integrated into the business providing services, and it may involve different services, and the fees can vary over every billing period. It’s for this reason that, in fact, even big companies in the realm of digital payments, like Stripe, which might even already have products that can help manage subscriptions on their platforms, partner with companies like Billogram to build the experiences to manage their more involved kinds of payment services.

I should point out here that Suijkerbuijk told me that Stripe recently became a partner of Billograms, which is very interesting… but he also added that a number of the big payments companies have talked to Billogram. He also confirmed that currently Stripe is not an investor in the company. “We have a very good relationship,” he said.

It’s not surprising to see Stripe and others wanting to more in the area of more complex, recurring billing services. Researchers estimate that the market size (revenues and services) for subscription and recurring billing will be close to $6 billion this year, with that number ballooning to well over $10 billion by 2025. And indeed, the effort to make a payment or any kind of transaction will continue to be a point of friction in the world of commerce, so any kinds of systems that bring technology to bear to make that easier and something that consumers or businesses will do without thinking about it, will be valuable, and will likely grow in dominance. (It’s why the more basic subscription services, such as Prime membership or a Netflix subscription, or a cloud storage account, are such winners.)

Within that very big pie, Suijkerbuijk noted that rather than the Apples and Googles of the world, the kinds of businesses that Billogram currently competes against are those that are addressing the same thornier end of the payments spectrum that Billogram is. These include a wide swathe of incumbent companies that do a lot of their business in areas like debt collection, and other specialists like Scaleworks-backed Chargify — which itself got a big investment injection earlier this year from Battery Ventures, which put $150 million into both it and another billing provider, SaaSOptics, in April.

The former group of competitors are not currently a threat to Billogram, he added.

“Debt collecting agencies are big on invoicing, but no one — not their customers, nor their customers’ customers — loves them, so they are great competitors to have,” Suijkerbuijk joked.

This also means that Billogram is not likely to move into debt collection itself as it continues to expand. Instead, he said, the focus will be on building out more tools to make the invoicing and payments experience better and less painful to customers. That will likely include more moves into customer service and generally improving the overall billing experience — something we have seen become a bigger area also during the pandemic, as companies realized that they needed to address non-payments in a different way from how their used to, given world events and the impact they were having on individuals.

“We are excited to partner with Jonas and the team at Billogram.” says Omri Benayoun, General Partner at Partech, in a statement. “Having spotted a gap in the market, they have quietly built the most advanced platform for large B2C enterprises looking to integrate billing, payment, and collection in one single solution. In our discussion with leading utilities, telecom, e-health, and all other clients across Europe, we realized how valuable Billogram was for them in order to engage with their end-users through a top-notch billing and payment experience. The outstanding commercial traction demonstrated by Billogram has further cemented our conviction, and we can’t wait to support the team in bringing their solution to many more customers in Europe and beyond!”

#apple, #battery-ventures, #billing, #billogram, #broadband, #business-software, #ceo, #e-health, #economy, #europe, #finance, #financial-technology, #finland, #france, #funding, #general-partner, #germany, #google, #ireland, #italy, #kry, #merchant-services, #money, #netflix, #norway, #online-payments, #partner, #spain, #stockholm, #stripe, #sweden, #web-applications

Tech can help solve US cities’ affordability crisis

U.S. cities are in the midst of an affordability crisis. Just between May 2020 and May 2021, home prices saw their biggest annual increase in more than two decades and construction material prices increased by 24%. The cost of renting has risen faster than renters’ incomes for 20 years. Construction needs to play a critical role in fixing these pressing issues, but is the industry ready?

Construction is a $10 trillion global industry that employs more than 200 million people worldwide. But despite its size and importance, the industry’s annual labor productivity has only increased by 0.1% per year since 1947.

Since 1947, we’ve witnessed amazing advances in technology and science. Industries like agriculture, manufacturing and retail have achieved quantum leaps in productivity with improved bioengineering increasing yields and the introduction of cutting-edge logistics bringing affordable consumer goods to the mass market. Labor productivity in these industries increased by over 8x between 1947-2010, compared with 1x in construction.

Why, amid all this progress and innovation, do millions of construction workers in the U.S. still have to rely on manual, pen-and-paper processes for critical parts of their work?

We’ve heavily underinvested in the technology that can help save us from the crisis we face. Historically, entrepreneurs, technologists and investors haven’t spent the time to understand the specific needs and workflows of the construction industry.

Today, more than $800 billion a year is spent on commercial construction, but just a tiny fraction of that goes toward construction technology. In recent years, construction ranked lowest of all industries for technology spending as a percentage of revenue — coming in at just 1.5% — far below the all-industry average of 3.3%, let alone industries like banking, which came in at 7.2%.

A massive chunk of that annual spending — more than $250 billion a year — is spent on construction materials. And they’re only getting more expensive. Materials represent roughly a third of a project’s cost, yet most contractors have to rely on manual workarounds created long before the invention of smartphones to order materials.

This results in both workers on the job site and in the office being overburdened and spending far too much valuable time on paperwork, chasing down materials and fixing errors.

Office teams receive hundreds, if not thousands, of materials requests from the field, all in different formats — including requisitions written with a marker on pizza boxes. They have to manually convert handwritten requisitions into purchase orders sent to suppliers via email, spreadsheets and PDFs, retype order information into their accounting systems, and play phone tag with their suppliers and field teams to keep tabs on order statuses.

Unfortunately, all of that chaos often leads to mistakes, missed opportunities to buy at the best price and project delays.

The mayhem continues for accounting teams, who have no easy way to reconcile their invoices or know if they’re paying the right amount, let alone track rebates and payment terms across different vendors.

Meanwhile, foremen — whose time is more valuable than ever in the current labor squeeze — are often spending less than 30% of their time doing what they do best: building. Without an easy way to select the exact materials they need and track them to delivery, cases of the wrong materials showing up at the wrong time are too common, throwing project timelines off track and creating a huge amount of waste.

Technology can make ordering and managing materials much easier, allowing workers on site and in the office to focus on other critical tasks. It can also help contractors catch common errors before they derail a project and help us build in a more environmentally sustainable way.

Buildings are more than bricks and mortar; they’re hospitals, schools, homes and small businesses. The buildings that surround us quite literally shape our lives. Our communities need them — we need places to meet, learn, play and heal. Imagine if the things that we rely on to create vibrant communities were cheaper to fix — or faster to build?

A new generation of workers who grew up with phones in their pockets are now joining the construction industry and expecting change. By fixing the broken supply chain, we can make construction faster, cheaper and more efficient.

We can move forward and solve our most urgent needs as a society — from building affordable housing to fixing our nation’s infrastructure — and make our cities more affordable and accessible to all.

#column, #economy, #manufacturing, #opinion, #real-estate, #sustainability, #tc, #united-states

Iceland’s Crowberry Capital launches $90M Seed and Early-stage fund aimed at Nordics

Crowberry Capital, operating in Reykjavik and Copenhagen, has launched Crowberry II: a $90 million seed and early-stage fund aimed at startups in the Nordic region. A second close – bringing in an additional $40 million – is planned for July 2022.

The EIF (European Investment Fund) is the lead LP on the fund, after putting in €20 million from the EU’s “InnovFin Equity” program. This is InnovFin Equity’s first VC fund in Iceland.

Other investors include Icelandic Pension funds, several family offices, and angels including David Helgason, founder of Unity Technologies.

Crowberry II, which claims to be the largest VC fund operating out of Iceland, is headed up by three women founders, Hekla Arnardottir, Helga Valfells, and Jenny Ruth Hrafnsdottir.

The Crowberry I fund (a $40m fund launched in 2017), invested in startups in the areas of Gaming, SaaS, Healthtech, and Fintech.

Hekla Arnardottir said: “An incorrect assumption is that because we are women, we are only interested in supporting female founders. As our investment record shows, we support companies because they are game changers, irrespective of the gender of their senior team members. However, we also benefit, as an all-female team, from a circumspection which means that we can see potential in businesses and sectors which are typically overlooked by others in our space.”

She added: “Inclusivity is good for business, and through being open and approachable, your deal-flow multiplies in parallel to your talent pool, and businesses are built with a broader potential user base. It’s crazy that in 2020, female-led startups received just 2.3% of VC Funding, yet Crowberry considers this to be an opportunity: where the Nordics lead in gender equality on a societal level, we want to show that the region can also show the way in terms of inventive venture support.”

Crowberry’s previous fund (Crowberry I) featured 15 companies, of which 33% had female CEOs.

#articles, #copenhagen, #crowberry-capital, #economy, #entrepreneurship, #europe, #european-investment-fund, #european-union, #flo, #founder, #healthtech, #iceland, #private-equity, #startup-company, #tc, #unity-technologies

Nuula raises $120M to build out a financial services ‘superapp’ aimed at SMBs

A Canadian startup called Nuula that is aiming to build a superapp to provide a range of financial services to small and medium businesses has closed $120 million of funding, money that it will use to fuel the launch of its app and first product, a line of credit for its users.

The money is coming in the form of $20 million in equity from Edison Partners, and a $100 million credit facility from funds managed by the Credit Group of Ares Management Corporation.

The Nuula app has been in a limited beta since June of this year. The plan is to open it up to general availability soon, while also gradually bringing in more services, some built directly by Nuula itself and but many others following an embedded finance strategy: business banking, for example, will be a service provided by a third party and integrated closely into the Nuula app to be launched early in 2022; and alongside that, the startup will also be making liberal use of APIs to bring in other white-label services such as B2B and customer-focused payment services, starting first in the U.S. and then expanding to Canada and the U.K. before further countries across Europe.

Current products include cash flow forecasting, personal and business credit score monitoring, and customer sentiment tracking; and monitoring of other critical metrics including financial, payments and eCommerce data are all on the roadmap.

“We’re building tools to work in a complementary fashion in the app,” CEO Mark Ruddock said in an interview. “Today, businesses can project if they are likely to run out of money, and monitor their credit scores. We keep an eye on customers and what they are saying in real time. We think it’s necessary to surface for SMBs the metrics that they might have needed to get from multiple apps, all in one place.”

Nuula was originally a side-project at BFS, a company that focused on small business lending, where the company started to look at the idea of how to better leverage data to build out a wider set of services addressing the same segment of the market. BFS grew to be a substantial business in its own right (and it had raised its own money to that end, to the tune of $184 million from Edison and Honeywell).  Over time, it became apparent to management that the data aspect, and this concept of a super app, would be key to how to grow the business, and so it pivoted and rebranded earlier this year, launching the beta of the app after that.

Nuula’s ambitions fall within a bigger trend in the market. Small and medium enterprises have shaped up to be a huge business opportunity in the world of fintech in the last several years. Long ignored in favor of building solutions either for the giant consumer market, or the lucrative large enterprise sector, SMBs have proven that they want and are willing to invest in better and newer technology to run their businesses, and that’s leading to a rush of startups and bigger tech companies bringing services to the market to cater to that.

Super apps are also a big area of interest in the world of fintech, although up to now a lot of what we’ve heard about in that area has been aimed at consumers — just the kind of innovation rut that Nuula is trying to get moving.

“Despite the growth in services addressing the SMB sector, overall it still lacks innovation compared to consumer or enterprise services,” Ruddock said. “We thought there was some opportunity to bring new thinking to the space. We see this as the app that SMBs will want to use everyday, because we’ll provide useful tools, insights and capital to power their businesses.”

Nuula’s priority to build the data services that connect all of this together is very much in keeping with how a lot of neobanks are also developing services and investing in what they see as their unique selling point. The theory goes like this: banking services are, at the end of the day, the same everywhere you go, and therefore commoditized, and so the more unique value-added for companies will come from innovating with more interesting algorithms and other data-based insights and analytics to give more power to their users to make the best use of what they have at their disposal.

It will not be alone in addressing that market. Others building fintech for SMBs include Selina, ANNA, Amex’s Kabbage (an early mover in using big data to help loan money to SMBs and build other financial services for them), Novo, Atom Bank, Xepelin, and Liberis, biggies like Stripe, Square and PayPal, and many others.

The credit product that Nuula has built so far is a taster of how it hopes to be a useful tool for SMBs, not just another place to get money or manage it. It’s not a direct loaning service, but rather something that is closely linked to monitoring a customers’ incomings and outgoings and only prompts a credit line (which directly links into the users’ account, wherever it is) when it appears that it might be needed.

“Innovations in financial technology have largely democratized who can become the next big player in small business finance,” added Gary Golding, General Partner, Edison Partners. “By combining critical financial performance tools and insights into a single interface, Nuula represents a new class of financial services technology for small business, and we are excited by the potential of the firm.”

“We are excited to be working with Nuula as they build a unique financial services resource for small businesses and entrepreneurs,” said Jeffrey Kramer, Partner and Head of ABS in the Alternative Credit strategy of the Ares Credit Group, in a statement. “The evolution of financial technology continues to open opportunities for innovation and the emergence of new industry participants. We look forward to seeing Nuula’s experienced team of technologists, data scientists and financial service veterans bring a new generation of small business financial services solutions to market.”

#articles, #atom-bank, #banking, #business, #canada, #ceo, #economy, #edison-partners, #enterprise, #entrepreneurship, #europe, #financial-services, #financial-technology, #fintech, #funding, #general-partner, #head, #honeywell, #innovation, #kabbage, #nuula, #paypal, #smb, #sme, #stripe, #united-kingdom, #united-states

Two UK tech figures plan to row the Atlantic for charity supporting minority entrepreneurs

Two UK tech figures are to row across the Atlantic Ocean to raise money for a charity that funds social entrepreneurs from minority backgrounds.

Guy Rigby, founder and now Chair of the Entrepreneurial Services Group at Smith & Williamson, and entrepreneur, investor David Murray will raise money for UnLtd which has supported over 15,000 social entrepreneurs in the UK.

The pair have so far secured around £350,000 for UnLtd, with support from the UK’s Tech Nation, Founders Forum, and London Tech Week. You can donate to their fund-raising efforts on the ‘The Entrepreneur Ship’ here., will also be part of the Talisker Whisky Atlantic Challenge. Other tech orgs are invited to sponsor their efforts.

UnLtd has previously backed startup firms including Patchwork Hub which built an accessible employment platform run by disabled people, as well as EduKit, which developed an app to help school staff understand and address the mental health needs of their students.

Over the last year, UnLtd supported 662 social entrepreneurs, 42% of whom identified as being from a Black, Asian, or minority ethnic background and/or having a disability.

Rigby and Murray will row the 3,000 miles in December 2021 from the Canaries to Antigua, which they hope to reach in February 2022, rowing individually, 2 hours on, 2 hours off, around the clock for the duration of the crossing.

#articles, #business, #economy, #entrepreneur, #entrepreneurship, #europe, #social-entrepreneurship, #startup-company, #tc, #united-kingdom

‘Thin file’ loans startup Koyo closes $50M Series A led by Force Over Mass

Koyo, a fintech startup using open banking to offer loans to people with poor credit histories, has closed a Series A funding round of $50m in debt and equity led by Force Over Mass, with participation from existing investors Forward Partners, Frontline Ventures and Seedcamp. New investors in Koyo include Force Over Mass, Matt Robinson (founder of GoCardless, founder of Nested), and angel investors from the banking and lending sectors.  It last raised $4.9 million in 2019. With many sectors of the population having racked up debts during the pandemic, Koyo is likely to benefit from this underclass of consumer, normally rejected by the main loans companies.

The startup says it uses Open Banking data (bank transactions), rather than credit agency scores to underwrite risk for lending to consumers. In other words, it looks at how customers spend their money on a day-to-day basis, rather than what a credit agency says about them. The idea is to offer attractive rates and cheaper borrowing to a usually underserved market, usually known as ‘thin file’ customers (short or no credit history) or ‘near prime’ customers. The near-prime market equates to c13-15m people in the UK.

Thomas Olszewski, Koyo’s founder and a former VC with Frontline Ventures in London and Cavalry Ventures in Berlin, said in a statement: “Koyo launched at the start of the global pandemic and has proven that innovative use of open banking data results in better risk decisioning and ultimately has enabled us to grow the business during one of the toughest economic times the UK has faced. I’m proud to have continued to give many people in the UK access to competitively priced credit, during a time where most traditional lenders were quick to scale back their lending.”

Filip Coen, Force Over Mass partner, said, “We invest in companies that combine transformational technology with strong business models, and Koyo indexed strongly in both of those departments. Koyo has built a first-class foundation over the last 18 months of operation, and we’re excited to be part of its future”.

#bank, #banking, #berlin, #cavalry-ventures, #economy, #europe, #fintech-startup, #forward-partners, #founder, #frontline-ventures, #gocardless, #koyo, #london, #massachusetts, #matt-robinson, #nested, #open-banking, #seedcamp, #tc, #united-kingdom

Fractory raises $9M to rethink the manufacturing supply chain for metalworks

The manufacturing industry took a hard hit from the Covid-19 pandemic, but there are signs of how it is slowly starting to come back into shape — helped in part by new efforts to make factories more responsive to the fluctuations in demand that come with the ups and downs of grappling with the shifting economy, virus outbreaks and more. Today, a businesses that is positioning itself as part of that new guard of flexible custom manufacturing — a startup called Fractory — is announcing a Series A of $9 million (€7.7 million) that underscores the trend.

The funding is being led by OTB Ventures, a leading European investor focussed on early growth, post-product, high-tech start-ups, with existing investors Trind VenturesSuperhero CapitalUnited Angels VCStartup Wise Guys and Verve Ventures also participating.

Founded in Estonia but now based in Manchester, England — historically a strong hub for manufacturing in the country, and close to Fractory’s customers — Fractory has built a platform to make it easier for those that need to get custom metalwork to upload and order it, and for factories to pick up new customers and jobs based on those requests.

Fractory’s Series A will be used to continue expanding its technology, and to bring more partners into its ecosystem.

To date, the company has worked with more than 24,000 customers and hundreds of manufacturers and metal companies, and altogether it has helped crank out more than 2.5 million metal parts.

To be clear, Fractory isn’t a manufacturer itself, nor does it have no plans to get involved in that part of the process. Rather, it is in the business of enterprise software, with a marketplace for those who are able to carry out manufacturing jobs — currently in the area of metalwork — to engage with companies that need metal parts made for them, using intelligent tools to identify what needs to be made and connecting that potential job to the specialist manufacturers that can make it.

The challenge that Fractory is solving is not unlike that faced in a lot of industries that have variable supply and demand, a lot of fragmentation, and generally an inefficient way of sourcing work.

As Martin Vares, Fractory’s founder and MD, described it to me, companies who need metal parts made might have one factory they regularly work with. But if there are any circumstances that might mean that this factory cannot carry out a job, then the customer needs to shop around and find others to do it instead. This can be a time-consuming, and costly process.

“It’s a very fragmented market and there are so many ways to manufacture products, and the connection between those two is complicated,” he said. “In the past, if you wanted to outsource something, it would mean multiple emails to multiple places. But you can’t go to 30 different suppliers like that individually. We make it into a one-stop shop.”

On the other side, factories are always looking for better ways to fill out their roster of work so there is little downtime — factories want to avoid having people paid to work with no work coming in, or machinery that is not being used.

“The average uptime capacity is 50%,” Vares said of the metalwork plants on Fractory’s platform (and in the industry in general). “We have a lot more machines out there than are being used. We really want to solve the issue of leftover capacity and make the market function better and reduce waste. We want to make their factories more efficient and thus sustainable.”

The Fractory approach involves customers — today those customers are typically in construction, or other heavy machinery industries like ship building, aerospace and automotive — uploading CAD files specifying what they need made. These then get sent out to a network of manufacturers to bid for and take on as jobs — a little like a freelance marketplace, but for manufacturing jobs. About 30% of those jobs are then fully automated, while the other 70% might include some involvement from Fractory to help advise customers on their approach, including in the quoting of the work, manufacturing, delivery and more. The plan is to build in more technology to improve the proportion that can be automated, Vares said. That would include further investment in RPA, but also computer vision to better understand what a customer is looking to do, and how best to execute it.

Currently Fractory’s platform can help fill orders for laser cutting and metal folding services, including work like CNC machining, and it’s next looking at industrial additive 3D printing. It will also be looking at other materials like stonework and chip making.

Manufacturing is one of those industries that has in some ways been very slow to modernize, which in a way is not a huge surprise: equipment is heavy and expensive, and generally the maxim of “if it ain’t broke, don’t fix it” applies in this world. That’s why companies that are building more intelligent software to at least run that legacy equipment more efficiently are finding some footing. Xometry, a bigger company out of the U.S. that also has built a bridge between manufacturers and companies that need things custom made, went public earlier this year and now has a market cap of over $3 billion. Others in the same space include Hubs (which is now part of Protolabs) and Qimtek, among others.

One selling point that Fractory has been pushing is that it generally aims to keep manufacturing local to the customer to reduce the logistics component of the work to reduce carbon emissions, although as the company grows it will be interesting to see how and if it adheres to that commitment.

In the meantime, investors believe that Fractory’s approach and fast growth are strong signs that it’s here to stay and make an impact in the industry.

“Fractory has created an enterprise software platform like no other in the manufacturing setting. Its rapid customer adoption is clear demonstrable feedback of the value that Fractory brings to manufacturing supply chains with technology to automate and digitise an ecosystem poised for innovation,” said Marcin Hejka in a statement. “We have invested in a great product and a talented group of software engineers, committed to developing a product and continuing with their formidable track record of rapid international growth

#3d-printing, #aerospace, #articles, #business, #cad, #economy, #emerging-technologies, #enterprise, #entrepreneurship, #estonia, #europe, #fractory, #funding, #hardware, #industrial-design, #laser, #manchester, #manufacturing, #maryland, #metal, #outsourcing, #series-a, #startup-company, #startup-wise-guys, #tc, #telecommuting, #united-angels-vc, #united-kingdom, #united-states, #xometry

iPhone inside 30 mins? Germany’s Arive brings consumer brands to your door, raises €6M

In Europe and the US we are very much getting used to groceries being delivered within 15 minutes, with a huge battleground of startups in the space. Startups across Europe and the US have raised no less than $3.1 billion in the last quarter alone for grocery deliveries within 10 or 20-minute delivery promises. But all are scrambling over a market where the average order size is pretty low. What if it was in the hundreds, and didn’t require refrigeration?

This is probably going to be the newest “15/30minute” consumer battleground, as high-end consumer goods come to last-mile deliveries.

The latest to Arive in this space is… arive – a German-based startup that delivers high-end consumer brands within 30 minutes. It’s now raised €6 million in seed funding from 468 Capital, La Famiglia VC and Balderton Capital.

But stacking its shelves with well-known brands and spinning up last-mile delivery logistics, Arive is offering fitness products, cosmetics, personal care, homeware, tech and fashion. Consumers order via an app, with the delivery coming via a bike-only fleet in 30-minutes or less.

The behavior it’s tapping into is already there. It seems the pandemic has made us all work and play from home, leaving foot traffic in inner cities still below pre-Covid levels.

Arive says it works directly with brands to offer a selection of their products for on-demand delivery, offering them a new distribution channel to a new type of customer that wants speed and convenience.

arive is currently available in Munich and has recently launched in Berlin, Frankfurt, and Hamburg. The 30-minute delivery guarantee means it doesn’t need as many micro fulfillment centers as grocery players, helping it to keep infrastructure costs low.

Maximilian Reeker, co-founder of arive, said: “While the space for hyper-fast grocery delivery is increasingly crowded, we found the brands we love are still stuck in a three-day delivery scheme. For today’s time-poor consumers, this is too long.”

Bardo Droege, investor at 468 Capital, commented: “Our cities are dynamic, fast-moving places, and people living there want the tools and services that reflect their lifestyles so it’s no wonder the 15-minute groceries category has taken off so quickly. We’re confident the arive team will take this on.”

#balderton-capital, #berlin, #business, #co-founder, #delivery, #distribution, #economy, #europe, #frankfurt, #grocery-store, #hamburg, #marketing, #munich, #tc, #united-states

Sphere raises $2M to help employees lobby for Green 401(k) plans

In the United States, a 401(k) plan is an employer-sponsored defined-contribution pension account. However, with legacy institutional investing, most of these have at least some level of fossil fuel involvement and let’s face it, very few of us really know. Now a startup plans to change that.

California-based startup Sphere wants to get employees to ask their employers for investment options that are not invested in fossil fuels. To do that it’s offering financial products that make it easier – it says – for employers to offer fossil-free investment options in their 401(k) plans. This could be quite a big movement. Sphere says there are over $35 trillion in assets in retirement savings in the US as of Q1 2021.

It’s now raised a $2M funding round led by climatetech-focused VC Pale Blue Dot led the investment round. Also participating were climate-focused investors including Sundeep Ahuja of Climate Capital. Sphere is also a registered ‘Public Benefit Corporation’ allowing it to campaign in public about climate change.

Alex Wright-Gladstein, CEO and founder of Sphere said: “We are proud to be partnering with Pale Blue Dot on our mission to reverse climate change by making our money talk. Heidi, Hampus, and Joel have the experience and drive to help us make big changes on the short 7 year time scale that we have to limit warming to 1.5°C.” Wright-Gladstein has also teamed up with sustainable investing veteran Jason Britton of Reflection Asset Management and BITA custom indexes.

Wright-Gladstein said she learned the difficulty of offering fossil-free options in 401(k) plans when running her previous startup, Ayar Labs. She tried to offer a fossil-free option for employees, but found out it took would take three years to get a single fossil-free option in the plan.

Heidi Lindvall, General Partner at Pale Blue Dot said: “We are big believers in Sphere’s unique approach of raising awareness through a social movement while offering a range of low-cost products that address the structural issues in fossil-free 401(k) investing.”

#articles, #ayar-labs, #california, #ceo, #climate-change, #corporate-social-responsibility, #economy, #entrepreneurship, #europe, #general-partner, #heidi-lindvall, #pale-blue-dot, #private-equity, #sphere, #startup-company, #tc, #united-states

Square to launch a new paid subscription, Invoices Plus

Square’s popular free invoicing software is becoming the company’s next big subscription service. The company is poised to announced a paid subscription offering called Invoices Plus, which will offer sellers a set of advanced features, including some that had previously been available with the free service. The service itself had been quietly introduced to individual sellers, but has not yet been publicly announced.

Some sellers who were already using Square Invoices were recently alerted to the upcoming changes via email.

In the announcement shared with some sellers (the details of which can also be viewed here on a Square Seller Community forum), the new subscription will include a series of features that were released in the past year as part of a limited trial.

This includes multi-page estimates, custom invoice templates, and custom invoice fields. These will now become a part of Invoices Plus, as will two other features: the ability to automatically convert accepted estimates to invoices and the ability to build milestone-based schedules (three-plus installment invoices). Square’s announcement said it will introduce a “trial” button next to these features in the Square Invoices software to alert customers to the upcoming capabilities. (see below)

Image Credits: Square website

 

Square’s free invoicing software will not go away, the announcement noted. Sellers will be able to send unlimited invoices for free, as well as estimates and contracts, with the free plan. Free users will also be able to use invoice tracking, reminders and reporting tools.

The free plan has historically relied on processing fees to generate revenue. At present, this is 2.9% + $0.30 per invoice paid online by check or debit card plus a 1% fee per ACH transaction, per Square’s website. (Fees are slightly lower on in-person transactions and slightly higher for “card on file” transactions.) Pricing for the new, paid subscription has not yet been publicly announced.

A Square employee had explained the reasoning behind the change on the community forum site. They noted that many of Square’s other products — like Square Online, Appointments, Square for Retail, and Square for Restaurants — also offer both a free and paid tier. And although Square charges processing fees for Square Invoices, they aren’t enough to fuel its product development. With Invoices Plus, they said, the company aims to compete more directly with paid invoicing apps and products and the more advanced features those products offer.

Reached for comment, Square confirmed to TechCrunch Invoices Plus is a software subscription the company plans to announce shortly. But the company didn’t want to share more details until the news is official.

References to the new subscription have also already made their way to the Square app’s code, where they were spotted by iOS developer Steve Moser. The code indicates users who previously used some of the paid-only features will be able to still use them for the time being. But as the announcement had also noted, sellers would not be able to use the paid features for free the next time they’re creating new files with Square Invoices.

Image Credits: Steve Moser

The new service arrives shortly after Square announced earnings, where it noted its seller business brought in $1.31 billion in revenue (out of the total of $4.68 billion) and $585 million of gross profit in the second quarter, driven in part by continued strong online growth. The company also announced its plan to acquire the buy now, pay later giant Afterpay in a $29 billion deal, speaking to its interest in chasing the broader payments market. The deal also offers Square a way to connect its different products, by allowing Afterpay customers to pay their monthly installments through Square’s Cash App, the company said.

An integration between Square and Afterpay is something that could be seen further down the road, as well, one could imagine. That’s something Square also hinted towards in a response to another seller on its community forum site, where a rep updated an older answer to share news of the acquisition, adding Square didn’t “have integration timelines to share at the moment.”

#accounting-software, #accounts-payable, #afterpay, #business, #economy, #invoice, #invoicing, #online-sellers, #payments, #sellers, #square, #web-applications

It’s time for the VC community to stop overlooking the childcare industry

Square. Uber. Zillow. Airbnb. Besides being some of the biggest technology companies, what else do these titans have in common? They all operate in entrenched, highly fragmented, geographically localized and regulated industries. That means they required a lot of upfront venture capital investment to disrupt their respective markets. And the investment has paid off — these are now some of the most valuable companies in the world.

Venture capital alone hasn’t funded some of the largest companies. One of today’s most successful tech entrepreneurs was funded by massive infusions of investment from the federal government — Elon Musk received $4.9 billion in public subsidies for his companies, including SpaceX and Tesla. Moreover, government investment, via tax credits for electric vehicle purchases, made it more affordable for consumers to buy the green transportation they needed.

But one massive industry has not yet benefited from the large amounts of money that both venture capital and government can provide: Childcare. Families in the United States spend $136 billion on infant and child care every year, and the market is only growing. If you include school-age care and education for all children under 18, that number grows to $212 billion. In investor terms, the TAM (total addressable market) is huge.

To put things in perspective, one new company has raised more funding in 2021 than the entire childcare industry.

So where is the investment? Biden’s current compromise on an infrastructure plan does not include many provisions for childcare. Venture investment in this space is nascent and insufficient. In 2020, only $171 million was invested in care and early childhood education. The funding situation has improved in 2021, with $516 million invested in childcare, but it’s still just a tiny fraction of the $288 billion of venture capital invested so far this year.

To put that in perspective, a single new company has raised more funding in 2021 than the entire childcare industry.

Funding emerging childcare technology may require a lot of upfront capital. For starters, the industry is regulated and safety is and should remain a priority. Caring for and educating young children takes training, skill and love — it cannot be done by a computer.

But there are so many facets of the industry that are ripe for innovation. Parents sometimes take weeks to find a childcare provider that meets their needs. In some markets, there is not nearly enough supply (three children for every licensed slot) to meet the demand. Assessing quality, pricing and availability is challenging, and payments and business operations tools for the nation’s 300,000+ daycares are still often pen, paper and Excel spreadsheet affairs.

This industry just needs patient investors with long-term perspectives.

This is a great time to diversify investment portfolios and support relatively recession-proof companies meaningfully expanding access to childcare. COVID has finally started to bring this largely offline industry online. Parents are now willing to go digital for childcare decisions and providers are adopting new online technologies at a record pace. These tailwinds provide the perfect conditions for startups.

Solving this problem is a huge business opportunity that affects so much else. When the millions of parents with young children can’t find care, they can’t work. We saw this over and over again since the start of the pandemic. The average American family can spend up to 25% of their income on early childhood care, while the average care worker makes approximately $12 an hour.

Unlocking innovation here at scale will require public and private investment. Government shapes and enables markets, from the explosion of technology that followed from Kennedy’s investment in the space race to more recent fundamental investments in wind, solar and electric vehicles. NASA catalyzed dozens of new technologies in the 1960s because it had both a generous budget and the flexibility to work with the best private-sector contractors available to solve specific problems.

The revitalization of the childcare sector would benefit from an ambitious and galvanizing “moonshot” goal, like providing universal, free childcare for all Americans.

By collaborating with flexibility and creativity across the public and private sectors, we can achieve a basic shared goal that other democracies have already fulfilled — the accessible provision of high-quality childcare for all members of society.

#child-care, #column, #corporate-finance, #covid-19, #diversity, #economy, #federal-government, #opinion, #startups, #tc, #tesla, #uber, #venture-capital

Wannabe ‘social bank’ Kroo swerves VCs to raise a $24.5M Series A from HNWs

Launched in February 2018, Kroo, the London-based consumer-facing fintech raised some seed funding last year for its prepaid card service which claims to offer more ‘social features’ in its drive towards offering full-blown banking services. Kroo’s pitch is that it removes friction from financial interactions with friends and family, and throws in some environmental initiatives as well, such as tree planting.

It’s now raised $24.5 million (£17.7 million) in a Series A funding round led by Rudy Karsan, a high-net-worth tech entrepreneur and founder of Karlani Capital. Kroo will use the funding in its drive towards a full banking license in early 2022.

The fund-raising is fairly unusual for a fintech startup that aspires to become a bank, given the lack of an institutional investor. However, this will give it a lot more freedom as it heads towards bank status next year.

Kroo currently offers a prepaid debit card plus an app to track personal and social finances, such as the ability to create payment groups with friends, track spending, and split and pay bills, removing the usual awkwardness around such things.

The company has also pledged to donate a percentage of profits to social causes, and launched a tree-planting referral scheme, so that every time a customer refers a friend, Kroo plants 20 trees.

Kroo CEO Andrea de Gottardo

Kroo CEO Andrea de Gottardo

CEO Andrea de Gottardo (pictured), who joined Kroo as Chief Risk Officer in 2018, said: “We want to build the world’s greatest social bank: a bank dedicated to its customers and to the world we live in. We’re going to do more than just work with Kroo customers to improve their relationship with money and provide them with access to fair loans. We’re going to offer them ways to actively take part in making our world a better place, like carbon offsetting and a tree-planting referral program.”

Karsan said: “The reason I’m excited about Kroo is that it has a concrete opportunity to dramatically change the way people feel about their bank, for good. Kroo has an exceptionally talented management team and a nimble tech stack that will enable the continuous delivery of banking features customers really care about.”

Speaking to me over a call, de Gottardo added: “We have raised, including the series A, over £30 million through high net worth individuals and syndicated investors. So we still haven’t done an institutional round. That was a choice.”

He elaborated: “We’re lucky enough to have Rudy Karsan, a high net worth, and an extremely supportive pool of investors that keep following on in the rounds. It was our intention get up to a Series A without any institutions, and to be free of the pressure from VC. It’s now highly likely we will go institutional for a Series B round.”

#bank, #banking, #ceo, #economy, #europe, #finance, #financial-services, #financial-technology, #fintech-startup, #ing-group, #london, #money, #tc

Element Ventures pulls in $130M to double-down on the FinTech enterprise trend

With the rise of Open Banking, Psd2 Regulation, InsurTech, and the whole, general Fintech boom, tech investors have realized that there is an increasing place for dedicated funds which double down on this ongoing movement. When you look at the rise of banking-as-a-service offerings, payments platforms, insurtech, asset management, and infrastructure providers, you realize that there is a pretty huge revolution going on.

European fintech companies have raised $12.3bn in 2021 according to Dealroom, but the market is still wide-open for a great deal more funding for B2B fintech startups.

So it’s little surprise that B2B fintech-focused Element Ventures, has announced a $130 million fund to double-down on this new FinTech enterprise trend.

Founded by financial services veterans Steve Gibson and Michael McFadgen, and joined by Spencer Lake (HSBC’s former Vice Chairman of Global Banking and Markets) Element is backed by finance-oriented LPs and some 30 founders and executives from the sector.

Element says it will focus on what it calls a “high conviction investment strategy,” which will mean investing in only around 15 companies a year, but, it says, providing a “high level of support” to its portfolio.

So far it has backed B2B fintech firms across the UK and Europe including Hepster (total raised $10M), the embedded insurance platform out of Germany which I recently reported on; Billhop (total raised $6.7M), the B2B payment network out of Sweden; Coincover (total raised $11.6M), a cryptocurrency recovery service out of the UK; and Minna (total raised $25M), the subscription management platform out of Sweden.

Speaking to me over a call McFadgen, Partner at Element Ventures, said: “Steven and I have been investing in B2B FinTech together for quite a long time. In 2018 we had the opportunity to start element and Spencer came on boar in 2019. So Element as an independent venture firm is really a continuation of a strategy we’ve been involved in for a long time.”

Gibson added: “We are quite convinced by the European movement and the breakthrough these Fintech and insure tech firms in Europe are having. Insurance has been a desert for innovation and that is changing. And you can see that we’re sort of trying to build a network around companies that have those breakthrough moments and provide not just capital but all the other things we think are part of the story. Building the company from A to C and D is the area that we try and roll our sleeves up and help these firms.”

Element says it will also be investing in the US and Asia. 

#asia, #asset-management, #banking, #economy, #element-ventures, #europe, #finance, #financial-technology, #germany, #hsbc, #money, #partner, #payment-network, #sweden, #tc, #united-kingdom, #united-states, #vice-chairman

Calendly CEO Tope Awotona is joining us at Disrupt 2021

It all seems so simple. Instead of the dreaded back-and-forth on email, what if there was a solution that helped two parties (or multiple parties) schedule a call or a hangout?

Calendly was born out of that question. Today, the company is worth more than $3 billion, according to reports, and has more than 10 million users. The growth of the product is insane, with more than 1,000% growth from last year.

But that kind of success doesn’t come without hard work and dedication.

To hear more about the journey from bootstrapped to billions, Calendly founder and CEO Tope Awotona will join us at Disrupt this September.

P.S. Early Bird Tickets to Disrupt end today, Friday, July 30. Book your tickets now! 

Awotona put his entire life savings into Calendly and managed to bootstrap it for years before taking a $350 million funding round led by OpenView and Iconiq.

We’ll chat with Awotona about the early days of Calendly, how he navigated the hyper-growth phase, what made him choose to finally take institutional funding, his thoughts on pricing and packaging, and much more.

Awotona joins an incredible roster of speakers, including Secretary of Transportation Pete Buttigieg, Mirror’s Brynn Putnam, Chamath Palihapitiya, Slack CEO Stewart Butterfield and more. Plus, Disrupt features the legendary Startup Battlefield competition, where startups from across the globe compete for $100,000 and eternal glory.

Disrupt’s virtual format provides plenty of opportunity for questions, so come prepared to ask the experts about the issues that keep you up at night.

One post can’t possibly contain all of Disrupt’s events. Don’t miss the epic Startup Battlefield competition, hundreds of early-stage startups exhibiting in the Startup Alley expo area, special breakout sessions — like the Pitch Deck Teardown — and so much more.

TechCrunch Disrupt 2021 offers tons of opportunities. Don’t miss out on the first one — buy your Disrupt pass today, July 30, by 11:59 pm (PT) for less than $100. It’s a sweet deal!

Is your company interested in sponsoring or exhibiting at Disrupt 2021? Contact our sponsorship sales team by filling out this form.

#articles, #brynn-putnam, #ceo, #chamath-palihapitiya, #economy, #entrepreneurship, #finance, #pete-buttigieg, #private-equity, #startup-company, #stewart-butterfield, #tc, #techcrunch, #tope-awotona

Introducing the Open Cap Table Coalition

On Tuesday, the Open Cap Table Coalition announced its launch through an inaugural Medium post. The goal of this project is to standardize startup capitalization table data as well as make it far more accessible, transparent and portable.

For those unfamiliar with a cap table, it’s a list of who owns your company’s securities, which includes your company shares, options and more. A clear and simple cap table should quickly indicate who owns what and how much of it they own. For a variety of reasons (sometimes inexperience or bad advice) too many equity holders often find companies’ capitalization information to be opaque and not easily accessible.

This is particularly important for the small percentage of startups that survive in the long term, as growth makes for far more complicated cap tables.

A critical part of good startup hygiene is to always have a clean and updated cap table. Since there is no set format and cap tables are generally not out in the open, they are often siloed rather than collaborative.

Cap tables are near and dear to me as someone who has advised hundreds of startups over the past two decades as the founder of an accelerator, a venture partner and a senior adviser at a government-funded startup launchpad. I have been on the shareholder side of the equation as well and can assure you that pretty much nothing destroys trust between shareholders and startups quicker than poor communication, especially around issues such as the current status of the cap table.

A critical part of good startup hygiene is to always have a clean and updated cap table.

I really like the idea of a cap table being an open corporate record, because the value proposition to the companies is clear. From the time a startup creates a cap table, it’s prone to inaccuracy, friction and mistakes. What this means in practice is that startups may spend money on cap-table-related issues that they should be spending on other things. From a legal process perspective, the law firm that is brought in to help with these issues has to deal with tedious back-end work, so the legal time isn’t high value for either the startup or the law firm.

The value proposition for equity holders is equally clear. All equity holders have a general and legal interest in a company’s capitalization information. They have the right to this information, which they may need for a variety of reasons (including, if things ever get really bad, an aggrieved shareholder action). So making this information clear and easily accessible is a service to equity holders and can also encourage more investment, especially from less experienced investors.

When I imagine what this project could become in the next couple of years, I think back to late 2013, when Y Combinator announced the SAFE (simple agreement for future equity). I think the SAFE is a good analogy here, as no one knew what it was and people wondered if this was a nice-to-have rather than a must-have for startups. But the end result was a dramatic improvement in the early-stage capital-raising process.

While the coalition’s founders include Morgan Stanley’s Shareworks, LTSE Software and Carta, it’s also heavy on Big Law, with Cooley, Goodwin Procter, Wilson Sonsini Goodrich & Rosati, Orrick, Gunderson Dettmer, Latham & Watkins, and Fenwick & West rounding out the group of 10 founding members.

So what’s the real motivation of seven law firms, which together saw revenue of over $10 billion in 2020 to collaborate on an open cap table product for startups? Deal flow.

Big Law has been trying for a couple of decades to build relationships with startups at the stage where it makes no sense for a startup to be dealing with a massive and expensive law firm. Their efforts to build startup programs have often fallen short and received mixed reviews. They have also been far too heavy on the self-serve and too light on the “we’re going to give you our regular Big Law level of services at a small fraction of the costs just in case you make it big and can one day pay our regular fees.” So these firms are trying to separate themselves from the rest of the Big Law pack by building this entrepreneur-friendly tech.

The coalition has already produced its initial version of the open cap table. The real question is whether this is going to be a big deal, as the SAFE was, or whether it’s going to be a vanity solution in search of a real problem. My best guess is that if this coalition gets all the relationships right, doesn’t get greedy and understands that there is a social good component at play here, this could be, reasonably quickly, as impactful as the SAFE was.

#capitalization-table, #column, #cooley, #corporate-finance, #economy, #entrepreneurship, #fenwick-west, #gunderson-dettmer, #law, #opinion, #orrick, #private-equity, #startups, #venture-capital, #y-combinator

Building back better means hiring more workers skilled through alternative routes

When I first came to the United States from the Dominican Republic, nobody wanted to hire me for a job in tech.

Rather than recognize the skills I possessed, employers could only see my still-developing English and my lack of a college degree. They failed to take into account my years of experience working with technology and electronics because the route I had taken was too unfamiliar.

It’s a situation all too common for the more than 70 million workers in the U.S. who are skilled through alternative routes (STAR) — especially for the 13.5 million Hispanic STAR workers like me out there today. If the employers who are struggling to fill open tech roles want to overcome the growing “skills gap,” then it’s a situation that must change.

When I arrived in the U.S., I applied to countless IT jobs, from customer service to computer repair. Every company rejected me before they even gave me the chance to show what I could do. Had employers taken the time to talk to me, they would have learned I started fixing my neighbors’ phones and computers at the age of 12, and that I had already sailed through a series of computer classes on networking, basic coding, cybersecurity, scripting and computer repairs.

About 31 million workers — including millions of Hispanic workers — possess skills that qualify them for higher-paying roles they are never considered for.

Even as I continued to learn English and mastered coding and cybersecurity concepts, companies failed to recognize what I could bring to the table. My background was too unfamiliar to make it past most employment filters that relied on degree requirements. I was often screened out of the hiring process before showcasing my talents, and I faced the biases of hiring managers who weren’t used to candidates like me. I could only get cleaning jobs or work at factories and fast food restaurants — places where I felt all my skills were going to waste.

I ended up getting lucky, and thanks to mentoring and hiring support through a follow-on to President Obama’s TechHire Initiative, doors began to open. After years of struggling, I could finally get my foot in the door, meet hiring managers and showcase my skills. I am now working as a cybersecurity associate, but my career could have begun much earlier.

Sadly, this story is a familiar one for far too many STAR workers, especially Hispanic people. Many of them aren’t as lucky as I am.

The statistics are sobering. About 31 million workers — including millions of Hispanic workers — possess skills that qualify them for higher-paying roles they are never considered for. Recent research shows, for instance, that there are 114,000 Hispanic workers employed as food and hospitality service managers, who have the skills to transition to similarly skilled jobs as community and social services managers, where wages are nearly 50% higher.

Hispanic STAR workers are also less likely to transition to higher-wage jobs than their white counterparts, and even when they are able to make such a transition, they are compensated less for their skills.

Employers must begin building more promising pathways that are accessible to all workers. The need for this shift has only grown over the last year as the COVID-19 pandemic disproportionately impacted Hispanic and Latino communities. Hispanic or Latino workers accounted for nearly one-quarter of the pandemic’s initial job losses. Even as the economy continues to slowly recover, the unemployment rate for those workers sits at 8.6%, compared with 5.7% for white workers. The fallout has been especially pronounced among Hispanic and Latina women. In December, they accounted for 45% of all job losses.

All this is happening while employers say they are struggling to find workers to fill open positions, even as millions remain unemployed and job postings have begun to return to pre-pandemic levels. The narrative around skills gaps continue to be perpetuated by employers, and they may have worsened during the COVID-19 crisis. These gaps are expected to cost the U.S. economy $1.2 trillion over the following decade, but most of these gaps aren’t actually real. They’re just the consequence of employers ignoring workers who learned their skills through alternative routes.

By rethinking hiring barriers like degree requirements, employers can more easily find job-ready talent and improve diversity at the same time. Such shifts can lead to even more systemic change down the road.

My success doesn’t end with me, as there is a multiplier effect to hiring STAR workers. Now that I have a strong foothold in the industry, I am able to help other members of my community. I formed an organization called Rhode Island Group for Hispanic Technology (RIGHT) to provide training in basic computing, coding, cybersecurity and digital literacy — all in Spanish.

If America is going to build back better, employers need to seek out and hire more workers who are skilled through alternate routes. They must begin to look beyond the traditional signals of employability and expand their understanding of what makes a good employee. Those who fail to do so will continue to miss out on the more than 13 million talented Hispanic STAR workers like me.

#column, #diversity, #economy, #employment, #hiring, #hispanic, #labor, #obama, #opinion, #tc, #unemployment, #united-states

Dan Olsen leads a product-market fit masterclass for the Startup Alley+ cohort

Yes Virginia, there are advantages to exhibiting in (the sold-out) Startup Alley at TC Disrupt 2021. Out of all the early-stage startups ready to exhibit on September 21-23, Team TechCrunch hand-picked 50 to form the Startup Alley+ cohort.

Startup Alley+ is a VIP experience designed to help founders grow their business and increase their opportunities right now in the run-up to Disrupt.

Hold up: Don’t miss the opportunity to meet and network with all the innovative startups you’ll find in Startup Alley — including the Startup Alley+ cohort. Attend Disrupt for less than $100 — if you buy your early bird pass before prices go up on July 30 at 11:59 pm (PT).

The VIP experience includes three masterclass sessions on crucial topics that all startup founders need to, well, master. Case in point: product-market fit. It’s an elusive and yet essential first step to unlocking growth. You can’t build success without a product that quenches the demand of a thirsty market.

On August 24, Dan Olsen will conduct a masterclass on the art and science of product-market fit. Olsen, a product management trainer and consultant, works with CEOs and product leaders to build strong product teams. His clients include Google, Facebook, Amazon, Uber, Box and Walmart.

A best-selling author of The Lean Product Playbook, Olsen has literally written the book on product-market fit. In his masterclass, How to Create Product-Market Fit, Dan will draw on material in the book and share his simple but effective framework. He will explain his Product-Market Fit Pyramid and The Lean Product Process, a six-step methodology that guides you through how to:

  1. Determine your target customer
  2. Identify underserved customer needs
  3. Define your value proposition
  4. Specify your MVP feature set
  5. Create your MVP prototype
  6. Test your MVP with customers

Dan will illustrate these concepts with real-world examples and a comprehensive case study.

We’re especially excited to have Dan present his masterclass because he’s firmly rooted in TechCrunch lore. Way back in 2009, a company called YourVersion — founded by Olsen — won the peoples’ choice at TechCrunch50, the precursor to Disrupt.

Olsen’s product-market fit expertise — and his personal connection to the early-stage founder experience — will help the Startup Alley+ cohort learn how to turn product management into more of a science than an art and improve their odds of success.

TechCrunch Disrupt 2021 takes place September 21-23. Don’t miss your opportunity to attend for less than $100. Buy your early bird pass here before the deal expires on July 30 at 11:59 pm (PT).

Is your company interested in sponsoring or exhibiting at Disrupt 2021? Contact our sponsorship sales team by filling out this form.

#articles, #author, #box, #business, #economy, #entrepreneurship, #facebook, #product-management, #product-market-fit, #startup-company, #tc, #techcrunch, #techcrunch-disrupt-2021, #uber, #virginia, #walmart, #yourversion

Early bird savings on passes to TechCrunch Disrupt 2021 end this week

Tick tock, early-stage startup fans: If you plan to attend TechCrunch Disrupt 2021 (September 21-23), time is running out to score a pass to the world’s leading conference dedicated to tech startups — for less than $100. The early bird sale ends this week, so buy your pass here before the deal expires on July 30 at 11:59 pm (PT).

And if you’re part of the tech startup ecosystem — or aspire to be — why the heck wouldn’t you dive headlong into three days dedicated to the art and science required to build and scale successful startups? Just listen to what three past attendees said about their Disrupt experience.

Disrupt is a great sweet spot, and highly valuable, for anyone in the idea stage all the way through to having raised some angel money. Soak up the pitch deck teardowns and the VC presentations. They’re telling you what they’re looking for, what motivates them, what pushes them to contact you for a meeting. And that’s exactly what every startup raising capital needs to know. — Michael McCarthy, CEO, Repositax.

“TechCrunch has created a great venue that brings together all the different people within the startup ecosystem. It’s a place where new startups can present, attendees can learn from top industry experts and who knows? One day they might be the person speaking on the Disrupt stage. It’s a great event overall.” — JC Bodson, founder and CEO of Arbitrage Technologies

“The connections I made at Disrupt offer long-term benefits. Investors willing to put forth capital, engineers offering tech expertise and manufacturers to help me streamline. Fostering these relationships will help me grow my company and my bottom line.” — Felicia Jackson, inventor and founder of CPRWrap.

Disrupt is the place to be to learn, connect, collaborate and keep tabs on rapidly changing trends. Here’s just one example of the timely topics and world-class experts we have on tap. Don’t forget to check out the agenda.

Saving the World: COVID-19 changed everything. It not only threatened our individual health and wellbeing, but it also shook industries and economies across the globe. The same could be said about the COVID-19 vaccines. Hear from BioNTech Cofounder and CEO, Ugur Sahin on the process of rapidly developing the world’s most sought-after vaccine, alongside Pfizer, and the long-term potential of mRNA-based therapies. Sahin will be joined by Ursheet Parikh of Mayfield Fund to discuss what’s next for startups in this rapidly evolving industry.

Pro Tip: We’ll add new speakers, events and discounts in the run up to Disrupt — sign up for updates so you don’t miss out.

TechCrunch Disrupt 2021 takes place September 21-23, but the time to snag serious savings ends this week. Buy your early bird pass here before the deal expires on July 30 at 11:59 pm (PT).

Is your company interested in sponsoring or exhibiting at Disrupt 2021? Contact our sponsorship sales team by filling out this form.

#biontech, #business, #ceo, #companies, #cprwrap, #economy, #felicia-jackson, #founder, #mayfield-fund, #pfizer, #startup-company, #tc, #techcrunch, #techcrunch-disrupt-2021, #ugur-sahin, #ursheet-parikh, #verizon-media

Mint’s first PM raises millions for Monarch, an Accel-backed money management platform

Monarch, a subscription-based platform that aims to help consumers “plan and manage” their financial lives, has raised $4.8 million in seed funding.

Accel led the round, which also included participation from SignalFire, and brings the Mountain View-based yet fully distributed startup’s total funding since its 2019 inception to $5.5 million.

Co-founder and CEO Val Agostino was the first product manager on the original team that built Mint.com. There, he said, he saw firsthand that Americans with a greater understanding of financial matters “needed software solutions that went beyond just tracking and budgeting.” 

“They needed help planning their financial future and understanding the tradeoffs between competing financial priorities,” he said.

Monarch aims to help people address those needs with software it says “makes it easy” for people to outline their financial goals and then create a detailed, forward-looking plan toward achieving them. 

“We then help customers track their progress against their plan and automatically course correct as their financial situation changes, which it always does,” Agostino said.

Monarch came out of private beta in early 2021 with apps for web, iOS and Android, and is priced at $9.99 per month or $89.99 per year. The startup intentionally opted to not be ad-supported or sell customers’ financial data.

These approaches are “misaligned with users’ financial interests,” Agostino said.

“We felt that a subscription business model would best support that ethos and align our users’ interests with our own,” he added. Since launching publicly, Monarch has been growing its paid subscriber base by about 9% per week.

Image Credits: Monarch

Monarch launched during the pandemic, the uncertainty of which carried over into people’s financial lives, believes Agostino.

“As a result, we saw a lot of people make use of Monarch’s forecasting features to compare different ‘what if ‘scenarios such as switching jobs or moving to a different city or state,” he said.

Earlier this month, TechCrunch reported on a company with a similar mission, BodesWell, teaming up with American Express on a financial planning tool for its cardholders. Agostino said that Monarch is similar to BodesWell in that both startups help customers map a financial plan and future. 

“The difference is that Monarch also has a full suite of PFM tools, such as budgeting, reporting and investment analysis,” he said. “The benefit to the consumer is that because Monarch is connected to your entire financial picture, we can help you actually stay on track with your financial plan and/or update the plan in real time if needed.”

Accel’s Daniel Levine said that until he came across Monarch, he was “somehow still a Mint customer despite its obsolescence.”

Over the past decade, the landscape for financial products has expanded dramatically, with more people having brokerage and crypto accounts, for example, Levine said.

In his view, Monarch stands out for a couple of reasons. For one, it’s a subscription product.

“One thing I always hated about Mint was when it would suggest the objectively wrong credit card for me,” Levine said. “It has all of my transaction data, it should tell me the card with the best rewards for me. Monarch is set up to never compromise what’s best for the user in favor of advertising.”

Secondly, Monarch’s aim is to serve as the infrastructure for its customers. To do that, it needs to monitor all of someone’s finances. 

“They need to track checking, credit cards, brokerage, real estate and crypto,” he said. “Monarch is committed to doing that. It’s an incredibly painful problem and even though Monarch is a new entrant in the space, I think they’ve clearly separated themselves on that dimension.”

#accel, #daniel-levine, #economy, #finance, #financial-services, #fintech, #funding, #fundings-exits, #monarch, #money-management, #recent-funding, #signalfire, #startup, #startups, #val-agostino, #venture-capital

One week left to buy passes to TC Disrupt 2021 for less than $100

TechCrunch Disrupt 2021, the world’s original and most epic conference dedicated to tech startups, takes place September 21-23. Are you ready to take full advantage of this opportunity-packed event? Start right now and buy a Disrupt pass for less than $100. But don’t wait — the early bird prices disappear on July 30 at 11:59 pm (PT).

Experience the full range of the global tech startup culture. Disrupt draws thousands of attendees from around the world, ready to learn, network, inspire and inform. You’ll hear from the leading voices across the tech spectrum — people like Coinbase CEO, Brian Armstrong, Pear VC’s Mar Hershenson and Accel’s Arun Matthew. And even a few tech-savvy celebrity founders (we’re looking at you, Seth Rogan).

Head to the Disrupt Stage for compelling interviews, panel discussions and presentations. And if you’re hot for tips, strategies and advice you can put to work in your startup right away, head on over to the Extra Crunch Stage. Our virtual platform makes it easy to pop in and out as your schedule permits, and you’ll have three months of video-on-demand access to all presentations when the event ends. You won’t miss a thing.

Check out the Disrupt 2021 agenda and register here to get updates when we add new speakers, events and discounts.

Startup Alley, our legendary expo area, is already sold out. Do not miss this collection of innovative startups showcasing their impressive tech and talent. Stop by their virtual booths, schedule 1:1 video meeting, ask for a product demo. You might just find a new collaborator, the perfect solution to a nagging problem or a promising addition to your investment portfolio.

Pro Tip: Every Startup Alley exhibitor will take part in one of our pitch feedback breakout sessions. It’s not only an opportunity to learn about the company — the feedback they receive from the Team TechCrunch can help you improve your own pitch.

Of course, Startup Battlefield is where the best-of-the best take the virtual stage to pitch for glory, global exposure and, oh yeah, $100,000 in equity-free prizemoney. It’s the startup world’s best launch pad and, since its inception, 922 companies have collectively raised $9 billion and generated 117 exits. Here’s how Rachael Wilcox, a creative producer at Volvo Cars described watching Startup Battlefield at Disrupt 2020.

“The Startup Battlefield translated easily to the virtual format. You could see the excitement, enthusiasm and possibility of the young founders, and I loved that. You could also ask questions through the chat feature, and you don’t always have time for questions at a live event.”

Tune in to watch this thrilling throwdown. You never know — this year’s cohort might produce a future unicorn or two.

TechCrunch Disrupt 2021 takes place on September 21-23. Buy your Disrupt pass before July 30 at 11:59 pm (PT), and you’ll pay less than $100. Now that’s an opportunity worth grabbing.

Is your company interested in sponsoring or exhibiting at Disrupt 2021? Contact our sponsorship sales team by filling out this form.

#brian-armstrong, #business, #ceo, #coinbase, #economy, #startup-company, #tc, #techcrunch, #techcrunch-disrupt-2021, #techcrunch-disrupt-new-york, #verizon-media, #volvo-cars, #websites

Untitled Ventures joins the scramble for Russian & Eastern European startups with a $118M warchest

Sorry Mr. Putin, but there’s a race on for Russian and Eastern European founders. And right now, those awful capitalists in the corrupt West are starting to out-gun the opposition! But seriously… only the other day a $100 million fund aimed at Russian speaking entrepreneurs appeared, and others are proliferating.

Now, London-based Untitled Ventures plans to join their fray with a €100 million / $118M for its second fund to invest in “ambitious deep tech startups with eastern European founders.”

Untitled says it is aiming at entrepreneurs who are looking to relocate their business or have already HQ’ed in Western Europe and the USA. That’s alongside all the other existing Western VCs who are – in my experience – always ready and willing to listen to Russian and Eastern European founders, who are often known for their technical prowess.

Untitled is going to be aiming at B2B, AI, agritech, medtech, robotics, and data management startups with proven traction emerging from the Baltics, CEE, and CIS, or those already established in Western Europe

LPs in the fund include Vladimir Vedeenev, a founder of Global Network Management>. Untitled also claims to have Google, Telegram Messenger, Facebook, Twitch, DigitalOcean, IP-Only, CenturyLinks, Vodafone and TelecomItaly as partners.

Oskar Stachowiak, Untitled Ventures Managing Partner, said: “With over 10 unicorns, €1Bn venture funding in 2020 alone, and success stories like Veeam, Semrush, and Wrike, startups emerging from the fast-growing regions are the best choice to focus on early-stage investment for us. Thanks to the strong STEM focus in the education system and about one million high-skilled developers, we have an ample opportunity to find and support the rising stars in the region.”

Konstantin Siniushin, the Untitled Ventures MP said: “We believe in economic efficiency and at the same time we fulfill a social mission of bringing technological projects with a large scientific component from the economically unstable countries of the former USSR, such as, first of all, Belarus, Russia and Ukraine, but not only in terms of bringing sales to the world market and not only helping them to HQ in Europe so they can get next rounds of investments.”

He added: “We have a great experience accumulated earlier in the first portfolio of the first fund, not just structuring business in such European countries as, for example, Luxembourg, Germany, Great Britain, Portugal, Cyprus and Latvia, but also physically relocating startup teams so that they are perceived already as fully resident in Europe and globally.”

To be fair, it is still harder than it needs to be to create large startups from Eastern Europe, mainly because there is often very little local capital. However, that is changing, with the launch recently of CEE funds such as Vitosha Venture Partners and Launchub Ventures, and the breakout hit from Romania that was UIPath.

The Untitled Ventures team:
• Konstantin Siniushin, a serial tech entrepreneur
• Oskar Stachowiak, experienced fund manager
• Mary Glazkova, PR & Comms veteran
• Anton Antich, early stage investor and an ex VP of Veeam, a Swiss cloud data management company
acquired by Insight Venture Partners for $5bln
• Yulia Druzhnikova, experienced in taking tech companies international
• Mark Cowley, who has worked on private and listed investments within CEE/Russia for over 20 years

Untitled Ventures portfolio highlights – Fund I
Sizolution: AI-driven size prediction engine, based in Germany
Pure app – spontaneous and impersonal dating app, based in Portugal
Fixar Global –  efficient drones for commercial use-cases, based in Latvia,
E-contenta – based in Poland
SuitApp – AI based mix-and-match suggestions for fashion retail, based in Singapore
• Sarafan.tech, AI-driven recognition, based in the USA
Hello, baby – parental assistant, based in the USA
Voximplant – voice, video and messaging cloud communication platform, based in the USA (exited)

#artificial-intelligence, #baltics, #belarus, #corporate-finance, #cyprus, #eastern-europe, #economy, #entrepreneurship, #europe, #facebook, #finance, #founder, #germany, #google, #insight-venture-partners, #latvia, #launchub-ventures, #london, #luxembourg, #managing-partner, #money, #poland, #portugal, #private-equity, #putin, #republicans, #russia, #singapore, #startup-company, #tc, #ukraine, #united-kingdom, #united-states, #veeam, #venture-capital, #vitosha-venture-partners, #vodafone, #vp, #wrike