Fintech giant Klarna raises $639M at a $45.6B valuation amid ‘massive momentum’ in the US

Just over three months after its last funding round, European fintech giant Klarna is announcing today that it has raised another $639 million at a staggering post-money valuation of $45.6 billion.

Rumors swirled in recent weeks that Klarna had raised more money at a valuation north of $40 billion. But the Swedish buy now, pay later behemoth and upstart bank declined to comment until now.

SoftBank’s Vision Fund 2 led the latest round, which also included participation from existing investors Adit Ventures, Honeycomb Asset Management and WestCap Group. The new valuation represents a 47.3% increase over Klarna’s post-money valuation of $31 billion in early March, when it raised $1 billion, and a 330% increase over its $10.6 billion valuation at the time of its $650 million raise last September. Previous backers include Sequoia Capital, SilverLake, Dragoneer and Ant Group, among others.

The latest financing cements 16-year-old Klarna’s position as the highest-valued private fintech in Europe.

In an exclusive interview with TechCrunch, Klarna CEO and founder Sebastian Siemiatkowski said the company has seen explosive growth in the U.S. and plans to use its new capital in part to continue to grow there and globally.

In particular, over the past year, the fintech has seen “massive momentum” in the country, with more than 18 million American consumers now using Klarna, he said. That’s up from 10 million at the end of last year’s third quarter, and up 118% year over year. Klara is now live with 24 of the top 100 U.S. retailers, which it says is “more than any of its competitors.”

Overall, Klarna is live in 20 markets, has more than 90 million global active users and more than 2 million transactions a day conducted on its platform. The company’s momentum can be seen in its impressive financial results. In the first quarter, Klarna notched $18.1 billion in volume compared to $9.9 billion in the prior year first quarter. In all of 2020, it processed $53 billion in volume. To put that into context; Affirm’s financial report in May projected it would process $8.04 billion in volume for the entire fiscal year of 2021 and Afterpay is projecting $16 billion in volume for its entire fiscal year. 

March 2021 also represented a record month for global shopping volume with $6.9 billion of purchases made through the Klarna platform.

Meanwhile, in 2020, Klara hit over a billion in revenue. While the company was profitable for its first 14 years of life, it has not been profitable the last two, according to Siemiatkowski, and that’s been by design.

“We’ve scaled up so massively in investments in our growth and technology, but running on a loss is very odd for us,” he told TechCrunch. “We will get back to profitability soon.”

Klarna has entered six new markets this year alone, including New Zealand and France, where it just launched this week. It is planning to expand into a number of new markets this year. The company has about 4,000 employees with several hundred in the U.S. in markets such as New York and Los Angeles. It also has offices in Stockholm, London, Manchester, Berlin, Madrid and Amsterdam. 

While Klarna is partnered with over 250,000 retailers around the world (including Macy’s, Ikea, Nike, Saks), its buy now, pay later feature is also available direct to consumers via its shopping app. This means that consumers can use Klarna’s app to pay immediately or later, as well as manage spending and view available balances. They can also do things like initiate refunds, track deliveries and get price-drop notifications.

“Our shopping browser allows users to use Klarna everywhere,” Siemiatkowski said. “No one else is offering that, and are rather limited to integrating with merchants.”

Image Credits: Klarna

Other things the company plans to do with its new capital is focus on acquisitions, particularly acqui-hires, according to Siemiatkowski. According to Crunchbase, the company has made nine known acquisitions over time — most recently picking up Los Gatos-based content creation services provider Toplooks.ai.

“We’re the market leader in this space and we want to find new partners that want to support us in this,” Siemiatkowski told TechCrunch. “That gives us better prerequisites to be successful going forward. Now we have more cash and money available to invest further in the long term.”

Klarna has long been rumored to be going public via a direct listing. Siemiatkowski said that the company in many ways already acts like a public company in that it offers stock to all its employees, and reports financials — giving the impression that the company is not in a hurry to go the public route.

“We report quarterly to national authorities and are a fully regulated bank so do all the things you expect to see from public companies such as risk control and compliance,” he told TechCrunch. “We’re reaching a point for it to be a natural evolution for the company to IPO. But we’re not preparing to IPO anytime soon.”

At the time of its last funding round, Klarna announced its GiveOne initiative to support planet health. With this round, the company is again giving 1% of the equity raised back to the planet.

Naturally, its investors are bullish on what the company is doing and its market position. Yanni Pipilis, managing partner for SoftBank Investment Advisers, said the company’s growth isfounded on a deep understanding of how the purchasing behaviors of consumers are changing,” an evolution SoftBank believes is only accelerating. 

Eric Munson, founder and CIO of Adit Ventures, said his firm believes the “best is yet to come as Klarna multiplies their addressable market through global expansion.” 

For Siemiatkowski, what Klarna is trying to achieve is to compete with the $1 trillion-plus credit card industry.

We really see right now all the signs are there. True competition is coming to this space, this decade,” he said. “This is an opportunity to genuinely disrupt the retail banking space.”

 

#amsterdam, #ant-group, #apps, #bank, #berlin, #bnpl, #buy-now-pay-later, #europe, #finance, #fintech, #france, #funding, #fundings-exits, #ikea, #klarna, #london, #los-angeles, #macys, #madrid, #manchester, #market-leader, #money, #new-york, #new-zealand, #nike, #payments, #recent-funding, #sebastian-siemiatkowski, #sequoia-capital, #softbank-investment-advisers, #softbank-vision-fund-2, #stockholm, #united-states, #venture-capital

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Stemma launches with $4.8M seed to build managed data catalogue

As companies increasingly rely on data to run their businesses, having accurate sources of data becomes paramount. Stemma, a new early stage startup, has come up with a solution, a managed data catalogue that acts as an organization’s source of truth.

Today the company announced a $4.8 million seed investment led by Sequoia with assorted individual tech luminaries also participating. The product is also available for the first time today.

Company co-founder and CEO Mark Grover says the product is actually built on top of the open source Amundsen data catalogue project that he helped launch at Lyft to manage its massive data requirements. The problem was that with so much data, employees had to kludge together systems to confirm the data validity. Ultimately manual processes like asking someone in Slack or even creating a Wiki failed under the weight of trying to keep up with the volume and velocity.

“I saw this problem first-hand at Lyft, which led me to create the open source Amundsen project with a team of talented engineers,” Grover said. That project has 750 users at Lyft using it every week. Since it was open sourced, 35 companies like Brex, Snap and Asana have been using it.

What Stemma offers is a managed version of Amundsen that adds additional functionality like using intelligence to show data that’s meaningful to the person who is searching in the catalogue. It also can add metadata automatically to data as it’s added to the catalogue, creating documentation about the data on the fly, among other features.

The company launched last fall when Grover and co-founder and CTO Dorian Johnson decided to join forces and create a commercial product on top of Amundsen. Grover points out that Lyft was supportive of the move.

Today the company has five employees, in addition to the founders and has plans to add several more this year. As he does that, he is cognizant of diversity and inclusion in the hiring process. “I think it’s super important that we continue to invest in diversity, and the two ways that I think are the most meaningful for us right now is to have early employees that are from diverse groups, and that is the case within the first five,” he said. Beyond that, he says that as the company grows he wants to improve the ratio, while also looking at diversity in investors, board members and executives.

The company, which launched during COVID is entirely remote right now and plans to remain that way for at least the short term. As the company grows, they will look at ways to build camaraderie like organizing a regular cadence of employee offsite events.

#amundsen, #data-management, #enterprise, #funding, #open-source, #recent-funding, #sequoia-capital, #startups, #stemma

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Extra Crunch roundup: first-check myths, Miami relocation checklist, standout SaaSy startups

This may seem like a great time to launch a SaaS startup, but the landscape is crowded with well-designed applications that promise “blazingly fast and delightfully simple” experiences, according to seed-stage investor John Chen of Fika Ventures.

Most SaaS startups will fail, but not because of a sour marketing campaign or server downtime. The majority of these companies will fall victim to what Chen calls “the myth of frictionless onboarding.”

Despite the hype about ease of use, enterprise companies always ask customers to abandon familiar tools so they can learn something new.

“Just like with a new fitness program, participants feel good after completing the workout, but it takes a lot of activation energy to start and hard work to get there,” Chen notes.


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Instead of putting the onus on customers to roll up their sleeves, he suggests that SaaS startups learn from cryptocurrency culture and find ways to “incentivize users to do the necessary work to have the right experience.”

But how do you encourage users to put in the time and effort required to produce an optimal customer experience?

“In a world where there is a surplus of alternatives for every job to be done, the scarce resource is not content, tooling, or hacks and tricks,” says Chen. “It’s attention.”

We’re off on Monday, May 31 in observance of Memorial Day; I hope you have a relaxing weekend!

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Dismantling the myths around raising your first check

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Image Credits: Klaus Vedfelt (opens in a new window) / Getty Images

As startups and venture capital grow in tandem, fundraising has gone from a formal affair on Sand Hill Road to a process that can happen anywhere from Twitter to Zoom.

While fundraising may no longer require a trip to California, it might depend on whether you got an invite to a private audio app. And while you may not need to be an insider, second-time founders — largely male and white — still have a competitive advantage.

The growing complexity of fundraising has the opportunity to make tech either inclusive or exclusive.

VC is the flashy gold medal, but the rapid growth of emerging fund managers means that a first check can be piecemealed together from a variety of different sources. The options for financing are seemingly endless: syndicates, public crowdfunding, VC firms, accelerators, debt financing, rolling funds, and, for the profitable few, bootstrapping.

Doximity’s S-1 may explain why healthcare exits are heating up

Telehealth startup Doximity filed to go public earlier today. Notably, the company has not fundraised since 2014, a year in which it attracted just under $82 million at a valuation of $355 million, per PitchBook data.

How has it managed to not raise money for so long? By generating lots of cash and profit over the years. Healthtech communications, it turns out, can be a lucrative endeavor.

What Vimeo’s growth, profits and value tell us about the online video market

Image Credits: Avishek Das/SOPA Images/LightRocket via Getty Images

The spin-out of video platform Vimeo from IAC completed this week, and the smaller company is now trading as an independent entity under the ticker ‘VMEO’.

If you missed the news that the internet conglomerate was spinning out the video service, don’t feel bad; it slipped past many radars. But with the company now trading, our access to its historical results, and our minds still enthralled by YouTube’s recent financial performance for Alphabet, it’s worth taking a moment to digest the company’s health.

Flywire’s flotation suggests the IPO slowdown is behind us

The Flywire IPO is neat from a financial perspective and notable in that it’s a Boston exit as opposed to yet another New York or San Francisco-based flotation. It’s nice to see some other cities put points on the board.

But more than that, this IPO is a useful measuring stick for keeping tabs on the IPO market as a whole. This year and the last are shaping up to be key exit periods for startups and unicorns of all shapes and sizes; many a venture capital fund return rests on these public debuts.

Dear Sophie: Any unique immigration strategies for quick hiring?

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Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I do recruitment for tech startups. With a surge of VC investing, many startups are urgently hiring.

Which visas offer the quickest options for international talent? Are there any unique strategies that you would recommend we explore?

— Maverick in Milpitas

7 questions to ask before relocating your startup to Florida

a photo of an art deco style building in Miami with pastel gradient colors

Image Credits: Artur Debat (opens in a new window) / Getty Images

Cities like Miami, Pittsburgh and Austin have been drawing talent and wealth from Silicon Valley for years, but the COVID-19 pandemic accelerated the trend.

In recent months, many investors and entrepreneurs have noisily departed for Miami, citing the region’s favorable business climate and quality of life.

It’s always good to consider one’s options, but before booking a moving van for the Sunshine State — or any emerging tech hub, for that matter — here are some basic questions entrepreneurs should ask themselves.

Vise CEO Samir Vasavada and Sequoia’s Shaun Maguire break down the art of the pitch

Image Credits: Sequoia Capital / Wolfe + Von / TechCrunch

In just a few short years, Vise has gone from launching on the Disrupt Battlefield stage to a unicorn. Co-founders Samir Vasavada and Runik Mehrotra met Sequoia’s Shaun Maguire at an after-party at the event, and Maguire ended up leading a seed and Series A round while Sequoia led the Series B.

Last week, Vise raised its Series C of $65 million and was officially valued at $1 billion post-money.

We spoke to the pair about the early fundraising process for Vise, what Vasavada has learned about delivering a good fundraising pitch, and what stood out about the pitch and the product for Maguire.

Acorns’ SPAC listing depicts a consumer fintech business with a SaaSy revenue mix

Another day, another unicorn public offering.

On Thursday, it was Acorns, a consumer fintech service that blends saving and investing into a freemium product.

Acorns fits inside the larger savings-and-investing boom seen over the last four or five quarters as consumers buffeted by the economic changes brought on by COVID-19 turned to stashing cash and boosting their equities investing cadence.

By now this is old news, but we haven’t had a clear picture of the economics of consumer fintech startups accelerated by the pandemic. Now that Acorns has decided to list via a SPAC — more on that in a moment — we do.

Poor onboarding is the enemy of good hiring

Image of a person talking to two colleagues via videoconferencing.

Image Credits: Olga Strelnikova (opens in a new window) / Getty Images

The world of hybrid work is here, and the usual 10-minute intro call, swag bag and first-day team lunch are just not enough to make your new employee feel welcome.

While many companies have found a way to interview and select candidates in a fully remote environment, few have spent time and resources on aligning the “pre-boarding” and onboarding process for the new hybrid world of work. Many employers still rely on old ways of welcoming new hires, despite our totally changed work environment.

It’s important to capitalize on candidates’ enthusiasm and eagerness from the moment the offer is signed instead of when they log in on Day One, because first impressions can make or break a candidate’s chances of staying at a company.

 

#ecommerce, #extra-crunch-roundup, #fika-ventures, #finance, #financial-technology, #flywire, #healthtech, #hiring, #john-chen, #miami, #newsletters, #runik-mehrotra, #saas, #samir-vasavada, #sequoia-capital, #shaun-maguire, #startups, #tc, #venture-capital, #vimeo

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Skiff, an end-to-end encrypted alternative to Google Docs, raises $3.7M seed

Imagine if Google Docs was end-to-end encrypted so that not even Google could access your documents. That’s Skiff, in a nutshell.

Skiff is a document editor with a similar look and feel to Google Docs, allowing you to write, edit and collaborate in real-time with colleagues with privacy baked in. Because the document editor is built on a foundation of end-to-end encryption, Skiff doesn’t have access to anyone’s documents — only users, and those who are invited to collaborate, do.

It’s an idea that has already attracted the attention of investors. Skiff’s co-founders Andrew Milich (CEO) and Jason Ginsberg (CTO) announced today that the startup has raised $3.7 million in seed funding from venture firm Sequoia Capital, just over a year since Skiff was founded in March 2020. Alphabet chairman John Hennessy, former Yahoo chief executive Jerry Yang, and Eventbrite co-founders Julia and Kevin Hartz also participated in the round.

Milich and Ginsberg told TechCrunch that the company will use the seed funding to grow the team and build out the platform.

Skiff isn’t that much different from WhatsApp or Signal, which are also end-to-end encrypted, underneath its document editor. “Instead of using it to send messages to a bunch of people, we’re using it to send little pieces of documents and then piecing those together into a collaborative workspace,” said Milich.

But the co-founders acknowledged that putting your sensitive documents in the cloud requires users to put a lot of trust into the startup, particularly one that hasn’t been around for long. That’s why Skiff published a whitepaper with technical details of how its technology works, and has begun to open source parts of its code, allowing anyone to see how the platform works. Milich said Skiff has also gone through at least one comprehensive security audit, and the company counts advisors from the Signal Foundation to Trail of Bits.

It seems to be working. In the months since Skiff soft-launched through an invite-only program, thousands of users — including journalists, research scientists and human rights lawyers — use Skiff every day, with another 8,000 users on a waitlist.

“The group of users that we’re most excited about are just regular people that care about privacy,” said Ginsberg. “There are just so many privacy communities and people that are advocates for these types of products that really care about how they’re built and have sort of lost trust in big companies.”

“They’re using us because they’re really excited about the vision and the future of end-to-end encryption,” he said.

#advisors, #alphabet, #ceo, #cryptography, #cto, #encryption, #end-to-end-encryption, #eventbrite, #google, #google-allo, #google-docs, #jerry-yang, #john-hennessy, #kevin-hartz, #operating-systems, #security, #sequoia-capital, #signal-foundation, #skiff, #software, #startups, #technology, #yahoo

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Security startup Tessian, which uses AI to fight social engineering, trousers $65M

In the latest chunky funding round out of Europe, UK-based email security startup, Tessian, has closed $65 million in Series C funding. The startup applies machine learning to build individual behavior models for enterprise email use that aims to combat human error by flagging problematic patterns which could signify risky stuff is happening — such as phishing or data exfiltration.

The Series C round was led by March Capital. Existing investors Accel, Balderton Capital, Latitude and Sequoia Capital also participated, along with new investor Schroder Adveq.

The latest financing brings Tessian’s total raised to-date to $120M+, and values the company at $500M, it said today.

The 2013 founded startup last raised back in January 2019 when it closed a $40M Series B (news that was scooped by former TCer, Steve O’Hear). Prior to that it grabbed a $13M Series A in mid 2018.

Tessian has around 350 global customers at this stage, across the legal, financial services, healthcare and technology sectors — name-checking the likes of Affirm, Arm, Investec and RealPagem among them.

Over the past year there has been much coverage of the security risks associated with the pandemic-sparked remote working boom, as scores of white collars workers started logging on from home — expanding the attack surface area which enterprises needed to manage.

It’s a risk that’s been good for Tessian’s business: The startup says it tripled its Fortune 500-level customer base last year — “as enterprises required a solution that could protect them against human layer security threats”, as it puts it.

It says the new funding will go on expanding its platform’s capabilities; helping companies replace their secure email gateways and legacy data loss prevention solutions; and on growing its team (it plans to triple headcount in short order with a particular focus on growing its sales team in North America).

The Series C funds will also support a plan to expand beyond email to offer security protections for other interfaces such as messaging, web and collaboration platforms — which it says is on the cards “soon”.

Commenting on the round in a statement, Jamie Montgomery, co-founder and managing partner at March Capital said: “Human activity — whether inadvertent or malicious — is the leading cause of data breaches. In Tessian, we found a best-in-class solution that automatically stops threats in real-time, without disrupting the normal flow of business. It is rare to hear such overwhelmingly positive feedback from CISOs and business users alike. We came to the same conclusion; Tessian is rapidly emerging as the leader in human layer security for the enterprise.”

A number of UK-based AI security startups have been building momentum in recent years, with others like Red Shift and Senseon also getting traction by applying machine learning to tackle risks.

In April, Cambridge-based Darktrace — a category pioneer — led the pack by floating on the London Stock Exchange where it saw its shares pop 32% in the IPO debut.

While, last year, the UK government pledged to ramp up R&D spending on AI as part of a major defense spending hike.

#artificial-intelligence, #balderton-capital, #computer-security, #darktrace, #data-security, #europe, #fundings-exits, #information-technology, #machine-learning, #march-capital, #north-america, #recent-funding, #schroder-adveq, #security, #sequoia-capital, #startup-company, #startups, #tessian, #united-kingdom

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Canvas lands $20M so tech’s biggest companies can find diverse talent

Ben Herman and Adam Gefkovicz launched Jumpstart in 2017 with a clear mission: to make the world more equitable via a more fair and balanced hiring process.

The company released its “Diversity Recruitment Platform” in July of 2018 with the aim of helping people earlier in their careers get a “jumpstart” via technology.

Over the years, the startup’s mission has evolved beyond helping college grads to helping all employees — regardless of career stage — get a fair shot at jobs. And it’s doing that by teaming up with hundreds of companies — such as Airbnb, Bloomberg, Coinbase, Samsung, Lyft, Pinterest, Plaid, Roblox, Audible, Headspace and Stripe — to help them hire a more diverse pool of candidates.

Demand has accelerated exponentially, and the San Francisco-based startup saw its revenue grow “3x” in 2020 compared to 2019, although execs declined to provide hard figures. Considering its broadened focus, Jumpstart has rebranded to Canvas and announced today that it has closed on $20 million in funding. Early Stripe employee and angel investor Lachy Groom and Sequoia Capital co-led the round, which included participation from Four Rivers Capital. The raise brings Canvas’ total raised to $32.5 million.

“We knew we were only scratching the surface of our vision, and knew we had a solution that could reimagine diversity hiring for everyone,” said co-founder and CEO Ben Herman. “You know how everyone has a CRM? We believe every company should have a DRP, which is a diversity recruitment platform. That’s the category we want to create and we want to be the largest in that space.”

No doubt that the Black Lives Matter movement in the aftermath of George Floyd’s murder helped, well jumpstart, the company’s efforts. Canvas is able to sell its offering as more companies “are being held accountable for their promises of equity and hiring diverse talent,” Herman said.

“Hiring diverse teams is not only a matter of corporate social responsibility,” he added. “Diversity and inclusion are a competitive advantage and strategic priority for every company in today’s landscape. We believe representation is a huge part of what we stand for. So we want everyone to be able to create their own canvas, and to be able to paint their own picture.”

Canvas describes its SaaS offering as a “fully virtual” recruiting platform that is based on self-reported data. About 87% of candidates on its platform disclose their demographic information (which it says is 7x the industry standard), according to the startup. Canvas also says it gives companies the ability to narrow down the priority groups and talent it wants to focus on by filtering over 75+ self-reported candidate data points.

The startup claims that it’s different from others in the space for that reason, among other features.

“Unlike other solutions that might utilize inferred data that could be inaccurate or illegal, Canvas helps create a more accurate data set to identify diverse candidates, helping to solve the core problem of talent discovery,” Herman said. 

It also — unlike some diversity hiring platforms — does not rely on artificial intelligence, a fact that Herman is actually proud of.

“We don’t believe that AI is the future. It’s not about getting someone’s gender or ethnicity based off of their name, or to inform the hiring decision without candidates knowing,” Herman told TechCrunch. “It’s all about how to empower talent to self-identify…We want to enable the talent to own their data, and truly be able to represent themselves in unique ways. That’s not leveraging AI.”

Canvas also gives companies a way to design, promote and run events, such as webinars, aimed at hiring diverse talent.

The startup also wants to get to a place where companies are working together “to complete the diversity data gap.”

“The problem is about accessibility, and so we want to give equal access to anyone and everyone — from all companies to all candidates,” Herman said. “And so that is really the most important part of what we are creating — the ability for companies to share data.”

So, how does it measure its own success? Canvas claims that 56% of all hires on the Canvas platform are made from underrepresented groups (URGs), and that it helps employers achieve a 30% reduction in time to hire.

Herman is not your typical startup founder, having dropped out of high school and starting his own recruitment agency at the age of 21. His tenacity is one of the things that attracted Sequoia partner and Canvas board member Mike Vernal to back the company.

“When we first met Ben, it was clear that he was…a natural-born talent scout,” Vernal told TechCrunch. “He thought there was a better way for the industry to work — one where companies and recruiters were more collaborative and used technology to build stronger, more diverse teams.”

Since its initial investment in the company, Vernal believes building diverse teams has never been more important.

“Those teams create better products, make stronger business decisions, and it’s just the right thing to do,” he said. “We believe companies can do a better job sourcing underrepresented talent using Canvas than on their own.” 

Canvas plans to use its new capital to expand the product into other industries and verticals beyond technology and continue to address the recruiting process for later stages of people’s careers. The company currently has 70 employees and expects to have 100 by the end of 2021.

As mentioned above, hiring diverse talent is becoming a bigger priority for big tech companies (such as HP) and startups alike. Earlier this year, diverse hiring startup SeekOut raised $65 million. The company has built out a database with hundreds of millions of profiles using its AI-powered talent search engine and “deep interactive analytics.”

#artificial-intelligence, #board-member, #canvas, #coinbase, #diversity, #economy, #employment, #funding, #fundings-exits, #hiring, #human-resource-management, #jumpstart, #lachy-groom, #lyft, #mike-vernal, #pinterest, #recent-funding, #recruitment, #san-francisco, #search-engine, #sequoia-capital, #startup, #startup-company, #startups, #talent, #tc, #venture-capital

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The LatAm funding boom continues as Kaszek raises $1B across a duo of funds

Long before SoftBank launched its $2 billion Innovation Fund in Latin America, and before Andreessen Horowitz began actively investing in the region, Sao Paulo-based Kaszek has been putting money into promising startups since 2011, helping spawn nine unicorns along the way.

And now, the early-stage VC firm is announcing its largest fund closures to date: Kaszek Ventures V, a $475 million early-stage fund, believed to be the largest vehicle of its kind ever raised in the region, and Kaszek Ventures Opportunity II, a $525 million for later-stage investments.

Over the years, Kaszek has backed 91 companies, which the firm says collectively have raised over $10 billion in capital. 

MercadoLibre co-founder Hernán Kazah and the company’s ex-CFO, Nicolas Szekasy, founded Kaszek a decade ago after leaving LatAm’s answer to Amazon. Fun fact: the firm’s name comes from a combination of their two last names: Ka-Szek. Rounding out the team are Nicolas Berman, former VP at MercadoLibre, Santiago Fossatti, Andy Young and Mariana Donangelo.

Kaszek founded its first fund in 2011, raising $95 million, an impressive sum at that time. Funds II and III closed in 2014 and 2017, raising $135 million and $200 million, respectively. By 2019, Kaszek had closed on its fourth fund, raising $375 million and its first Opportunity Fund, reserving $225 million for later-stage investing in existing portfolio companies.

It’s notable that in its fifth fund, Kaszek is reserving more of its new capital to fund later-stage investments – a testament to its faith in its current portfolio. Both funds, according to Kaszek, were “several times oversubscribed” with demand coming globally from university endowments, global foundations, technology funds and several tech entrepreneurs.

Silicon Valley-based Sequoia Capital has been an LP since day one via Sequoia Heritage, its community investment office. Also, Connecticut-based Wesleyan University is an LP with Chief Investment Officer Anne Martin describing the founding team as “internet pioneers.”

In recent years, there has been an explosion of global investor interest in Latin American startups. The region’s startup scene is seeing a surge of fundraises, with new unicorns emerging with increasing regularity. And Kaszek has been at the heart of it all.

“We have been at the epicenter of the technology ecosystem in Latin America since 1999, first with MercadoLibre and now with Kaszek, and have witnessed firsthand the extraordinary  evolution that the sector has experienced since its infancy,” said managing partner and co-founder Kazah. “When MercadoLibre started, the internet penetration was less than 3% and it was mostly dial-up connections. Today, more than two decades later, technology secular trends are stronger than ever before as we are experiencing an acceleration towards digitalization.”

Kaszek has not yet backed any companies out of its newest investment vehicles, but plans to put money in 20 to 30 companies out of its early-stage fund, with check sizes ranging from $500,000 to $25 million, according to Kazah. Its Opportunity Fund investments will be more concentrated with the firm likely backing 10 to 15 companies with check sizes ranging from $10 million to $35 million. The firm is industry agnostic, with Kazah saying it considers “any industry where technology is playing a transformational role.”

General partner and co-founder Szekasy says that In the firm’s first funds, Kaszek mostly backed first-time entrepreneurs. But in its last early-stage fund, it began backing more teams led by repeat entrepreneurs or by founders spawned out of some of the region’s more successful startups. As many VC firms do, Kaszek describes its investment strategy as providing more than capital, but also becoming partners with the founders of its portfolio companies. For example, Creditas founder and CEO Sergio Furio describes the firm as “the co-founder I did not have.”

While the firm declined to comment on performance, a source with firsthand knowledge of its metrics over the years tells TechCrunch that it’s quite impressive with MOICS ranging from 19.2 for Fund I, 10.5 for Fund II, 4.9 for Fund III and 2.6 for Fund IV.

The firm’s active portfolio currently consists of 71 companies. Kaszek was one of the earliest investors in Brazilian neobank Nubank, just one of 9 unicorns it has helped build over the years. Other unicorns it’s backed include MadeiraMadeira, PedidosYa, proptech startup QuintoAndar, Gympass, Loggi, Creditas, Kavak and Bitso.

The firm’s investments have largely concentrated in Brazil and Mexico (the two startup hotspots of the region) and Colombia but the firm has also backed startups based in other countries in the region such as DigitalHouse (which was formed in Argentina), NotCo (originally founded in Chile) and Kushki (launched first in Ecuador). It has people on the ground in its home base of Brazil as well as Mexico, the United States, Argentina and Uruguay. 

“We have always believed that the strong secular technology trends that we were seeing 20 years ago, evident in the US and a little later in China, were going to happen in Latin America,” Kazah told TechCrunch. “…Everything we predicted back then was going to happen, happened. Maybe it happened later, but it was also much larger and more comprehensive than what we had initially imagined. That is typically what happens with innovations, they take off later than you think, but fly much higher than you ever imagined.” 

#amazon, #andreessen-horowitz, #argentina, #brazil, #business, #ceo, #cfo, #chile, #china, #co-founder, #colombia, #companies, #connecticut, #creditas, #economy, #ecuador, #entrepreneurship, #funding, #fundings-exits, #hernan-kazah, #internet-penetration, #kaszek, #kaszek-ventures, #latin-america, #mercadolibre, #mexico, #nubank, #private-equity, #quintoandar, #sequoia-capital, #silicon-valley, #softbank, #startup, #startup-company, #startups, #tc, #united-states, #uruguay, #venture-capital, #vp

0

Bain Capital Ventures has $1.3 billion more to invest — including in emerging fund managers

Bain Capital Ventures (BCV), the venture arm of the 37-year-old private equity firm Bain Capital, announced this morning that it has $1.3 billion more smackers to invest across two funds, a $950 million fund for seed and Series A deals and a $350 million fund for growth-stage opportunities. That amount is up slightly from late 2018, when the outfit announced $1 billion across two funds.

While the outfit is backed by all the usual suspects, including endowments and pension funds, it’s worth noting that around $130 million of that capital comes from investors and other employees inside of Bain, whose contributions typically make up 10% of a fund. (Investors at other firms like Sequoia are big investors in their funds, too.)

More interesting, of course, is where the capital will be spent. According to partners Sarah Smith and Aaref Hilaly, the focus remains very much on enterprise startups, where the team likes to jump in early and build up a big position. (Some of its biggest bets in terms of dollars invested right now include the text message marketing company Attentive, currently valued at $2.2 billion, and the in-memory database company Redis Labs, valued right now at $2 billion.)

Interestingly, BCV is also investing directly in a lot of emerging managers, 50 of whom BCV has already backed in order improve the diversity of ideas and startups that it gets to see at the earliest stages.

It’s all part of the firm’s continuing evolution, says the outfit, which got its start in 2001 on the East Coast and was designed initially to fund Series B and older companies but has evolved to fund mostly West Coast- and, to a smaller degree, New York-based startups that are just getting off the ground. To underscore the shift, says Hilaly, BCV wrote checks to 42 companies last year and 37 of them were either seed-stage or Series A-stage startups and the “vast majority were pre-revenue.”

Asked if competition at the later-stage drove the firm to seek out more nascent deals, Hilaly notes that competition at every stage is intense right now and argues that BCV’s current team composition — Hilaly spent seven years at Sequoia and earlier founded a company himself; Smith spent a collective seven years at Quora and Facebook; partner Enrique Salem was a former president and CEO of Symantec, for example — makes it most impactful at the company formation stage, when founders are still getting the fundamentals down.

As for why the organization needs such a massive fund to back such young companies, it’s a reflection of the changing market, both partners suggest. Not only do firms need to be able to provide the capital that entrepreneurs need to grow at a faster clip than ever before, but it’s becoming increasingly important for venture outfits to support the ecosystem — including as a competitive edge.

For some firms, that support comes in the form of scout programs that empower operators and founders to write checks to friends who are starting companies.

For BCV, it means committing an undisclosed but “material” amount of capital to emerging seed-fund managers. So far among the managers it has backed is Bobby Goodlatte of Form Capital, who we talked with recently (see below); Maren Bannon of London-based January Ventures; Ryan Hoover of Weekend Fund; Scribble Ventures, run in part by husband-and-wife duo Elizabeth and Kevin Weil; and Noemis Ventures in New York.

Smith says that BCV is “really excited about this program because it’s great for founders, who have more choice than ever as they’re getting started. It’s also helping on-ramp a broader group of investors into the venture ecosystem, which is something I’m personally passion about as I care about diversity of thought.”

Those newer funds — 17% of which are run by Black general partners and 21% of which are run by women —  also help BCV to stay atop the latest enterprise trends, she adds, saying that in addition to checks, BCV helps make limited partner introductions for managers to help get them off the ground. (BCV does not ask for any information rights beyond what the firms’ other limited partners receive.)

As for where BCV will be funneling the rest of its new capital, Smith says that BCV has always been — and remains — thesis driven, and that much of what interests the firm right now is application software infrastructure, health tech investing, e-commerce-enabled enterprise tech, and fintech, including crypto, which has become a growing area of interest.

Some of the firm’s related deals include the crypto lending startup BlockFi and Digital Currency Group, the parent company behind the popular Grayscale Bitcoin Trust.

BCV has also invested in “a few tokens,” says Hilaly, “but that’s not the major focus,” he adds.

In the meantime, BCV — which is writing checks as small as several hundred thousand dollars to upwards of $100 million in companies — is also keeping an eye on the trends that continue to reshape the venture industry, including, right now, bigger and faster deals.

“It’s unprecedented,” observes Hilaly of what’s happening in the market right now. “My general feeling is that venture is not so unlike startups, and every firm has to just reinvent itself every five or 10 years because the ecosystem around it is changing so much.

“You can complain about competition,” he continues, “but the reality is competition just forces you to be better.” Certainly, he says, “You have to you have to be on your game to a greater extent than ever before or there’s just no way a sensible founder would pick you.”

#aaref-hilaly, #attentive, #bain-capital-ventures, #blockfi, #digital-currency-group, #docusign, #linkedin, #redis-labs, #sarah-smith, #sequoia-capital, #surveymonkey, #tc, #tiger-global-management, #venture-capital

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Sequoia leads $5M pre-seed in Egypt’s 1-month-old digital bank Telda

Egypt has a population of over 100 million people. The country has a high mobile and internet penetration necessary for a young and tech-savvy population with 61% below 30. But despite its youthful population, two out of every three individuals are currently unbanked in Egypt. It’s the same situation in MENA, where only 40% of the population have access to a bank account.

Digital banks have enormous potential in the region. Today, a newly launched one, Telda is announcing a $5 million pre-seed round to digitize how Egyptians save, send, and spend money.

Two weeks ago, we reported that Egyptian e-commerce fulfillment startup Flextock had raised the largest pre-seed in MENA. But that has changed today with Telda’s fundraise surpassing that record with a considerable margin in both MENA and Africa (Autochek’s $3.4 million) for now.

Telda was launched last month by CEO Ahmed Sabbah and CTO Youssef Sholqamy. Before Telda, Sabbah was the co-founder and CTO of Egypt’s ride-hailing company Swvl, and Sholqamy, a former senior engineer in Uber’s infrastructure team. Sabbah said he and his co-founder had been looking at the fintech space at their former workplaces. However, after his experience using N26 while visiting a friend in Berlin in 2015, his eyes opened to the possibilities of digital banking in Egypt.

“I was fond of the idea, and it was coming from a huge pain of payments we had in Egypt and the region. And for me, I was kind of like waiting for this to happen in Egypt, or if not, I thought I’ll tap into the opportunity someday,” he told TechCrunch. “Youcef and I have been like watching out the space for a while when the first digital bank started like six years ago, and watching how they grew in markets where we think banking is more mature than this region. So imagine an opportunity in a region like Egypt where banking is even way, way less mature.”

The North African country is one of the highest consumer spending markets in Africa. Its private consumption accounts for nearly 85% of its nominal GDP, and only 4% of its overall GDP is cashless. In essence, Egypt is heavily cash reliant, and card usage in the country is very much in its infancy. Disheartened by the non-customer-centric banking experiences, Telda was launched to provide an alternative.

Telda

Image Credits: Telda

Like any digital bank globally, Telda enables customers to create a free account to send and receive money. And also a card to use online, in stores, make withdrawals and pay bills. But while the service is currently live, Telda cards are yet to be distributed to existing and new customers.

Telda affirmed that it is the first company to receive a license from the Central Bank of Egypt (CBE) under its new regulations to issue cards and onboard customers digitally. And by doing so, the one-month-old company has made major progress in a relatively short time, even though obtaining that license took lengthy dialogue with regulators.

“First movers will usually have to make all the effort with the regulators and with the bank and try to pave the way. So this was one of the hardest parts — convincing regulators to trust and regulate our banking business and to provide payment financial services to our consumers,” the CEO said. But because Telda’s proposition aligns with the CBE’s vision of digitizing payments in the country, it had little choice but to grant them the license.

A different issue the company has faced was finding a partner bank to provide these services. And to do that, Telda had to convince the bank that their services were complementary and wouldn’t entirely overlap.

“That means basically trying to be as much independent as possible from the infrastructure of the bank. This was quite crucial for us to be able to move right and as fast as a startup, not as slow and pretty much tied to the pace of the bank’s technology and operations,” he continued.

Due to the founders’ experience in Swvl and Uber, the importance of building a great team cannot be overemphasized. There’s barely any blueprint to look at in launching a digital bank in Egypt, so Telda is building how it knows best: hiring exceptional talent. According to the CEO, the team comprises Egyptians who returned to the North African country to build Telda after working for corporations like Facebook, Microsoft, Uber, Noon, and McKinsey.

MENA appears to be ripe for a digital banking experience. Per GSMA Intelligence, 280 million people in the region are mobile internet users, and growth is not slowing down. The frustration with traditional banks is particularly acute with the younger generation, who crave a simple, user-friendly, and transparent experience. Telda has been able to onboard an impressive list of investors, including Sequoia Capital, for this reason.

The giant US VC firm led the pre-seed round as Berlin-based Global Founders Capital (GFC) and emerging markets-focused fund Class 5 Global participated.

Although Sequoia has made a few Sub-Saharan African investments in startups like Healthlane and OPay, Telda is its first venture into North Africa and the wider GCC region. Eight years ago, the VC giant led an infamous seed investment in Latin American digital bank Nubank before it began to go full throttle. Now with more than 38 million customers, Nubank is the world’s largest digital bank with a valuation of $25 billion. Sequoia will be looking for a similar success story in Telda.

“There are many parallels between Brazil and Egypt. Both countries boast a large, young, talented, and tech-savvy population with a strong appetite to innovate,” said Sequoia Partner George Robson of the investment. “We are delighted to partner with Telda and earmark our first investment in the region.”

Telda intends to fast-track its card production and distribution with this new funding. The company said it currently has more than 30,000 signups already, with half of that already requesting cards. It also plans to capitalize on Sequoia’s name for hiring and expansion, the CEO continued.

I think hiring is key for us. We want to scale the team into a world-class team that’s willing to tap into the opportunity. What we aspire for is basically growing in Egypt, start to deliver cards for the early adopters, and we see ourselves reaching close to a million cards in our first year.”

Investments in Egypt have been growing in leaps and bounds over the past three years, accompanied by a growing, vibrant ecosystem. Egypt recorded the largest number of investment deals last year per Partech Africa. With 86 deals completed, the country contributed 24% to the total number of deals made on the continent

GFC partner Roel Janssen referring to the budding ecosystem in his statement, said: “We are highly impressed by Sabbah and Sholqamy and love their vision for building the region’s leading digital banking app, and we are proud to be part of their journey. It is GFC’s first investment in Egypt, and we see that Egypt has the potential to become an important hub in the global tech ecosystem.”

Class 5 global managing partner Youcef Oudjane said, Money has become a medium of self-expression — a form of identity — not solely a store of value. Telda has done a remarkable job of embedding their culture and values in the product, in both functionality and design.

#africa, #banking, #digital-banking, #egypt, #finance, #funding, #global-founders-capital, #mena, #money, #north-africa, #nubank, #sequoia-capital, #startups, #swvl, #tc

0

Crypto asset manager Babel raises $40M from Tiger Global, Bertelsmann and others

Three years after its inception, crypto financial service provider Babel Finance is racking up fundings and partnerships from major institutional investors. The startup said Monday that it has closed a $40 million Series A round, with lead investors including Zoo Capital, Sequoia Capital China, Dragonfly Capital, Bertelsmann and its Asian fund BAI Capital, and Tiger Global Management.

For years, traditional investors were reluctant to join the cryptocurrency fray. But in 2020, Babel noticed that many institutions and high net worth individuals began to consider crypto assets as an investment class.

Babel, with offices in Hong Kong, Beijing, and Singapore, wanted to capture the window of opportunity and be one of the earliest to help allocate crypto assets in investors’ portfolios. But first, it needed to win investors’ trust. One solution is to have reputable private equity and venture capital firms on its cap table.

“It’s more of a brand boost so we can attract more institutions and build up credibility,” Babel’s spokesperson Yiwei Wang said of the firm’s latest financing, which is a strategic round as Babel had “reached profitability” and “wasn’t actively looking for funding.”

To vie for institutional customers and wealthy individuals, Babel plans to spend its fresh proceeds on product development, compliance and talent acquisition, seeking especially banking professionals and lawyers to work on regulatory requirements. It currently has a headcount of 55 employees.

Mainstream investors are jumping into the crypto scene partly because many see bitcoin as a way to hedge against “solvency and credibility risks” amid global economic uncertainties caused by Covid-19, said Wang. “Bitcoin is not something controlled by the government.”

The other trigger, Wang explained, was what shock the industry in February: Elon Musk bought $1.5 billion in bitcoin and declared Tesla would begin accepting the digital token as payments. That sparked a massive rally around bitcoin, sending its price to over $40,000.

Babel’s evolution has been in line with the trajectory of the industry. In its early days, the startup was a “crypto-native” company offering deposit and loan products to crypto miners and traders. These days, it also runs a suite of asset management products and services tailored to enterprise clients around the world. It’s applying for relevant financial licenses in North America and Asia.

As of February, Babel’s crypto lending business had reached an outstanding balance of $2 billion in equivalent cryptocurrency, the firm says. It has served more than 500 institutional clients and sees about $8 billion in direct trading volume each month. 80% of its revenues are currently derived from institutions. The goal is to manage one million bitcoins within four years.

#asia, #babel-finance, #beijing, #bertelsmann, #bitcoin, #cryptocurrencies, #cryptocurrency, #decentralization, #digital-currencies, #financial-technology, #funding, #sequoia-capital, #sequoia-capital-china, #singapore, #spokesperson, #tc, #tiger-global-management

0

Tesla supplier Delta Electronics invests $7M in AI chip startup Kneron

Despite a persistent semiconductor shortage that is disrupting the global automotive industry, investors remain bullish on the chips used to power next-generation vehicles.

Kneron, a startup that develops semiconductors to give devices artificial intelligence capabilities by using edge computing, just got funded by Delta Electronics, a Taiwanese supplier of power components for Apple and Tesla. The $7 million investment boosts the startup’s total financing to over $100 million to date.

As part of the deal, Kneron also agreed to buy Vatics, a part of Delta Electronics’ subsidiary Vivotek, for $10 million in cash. The new assets nicely complement Kneron’s business as the startup extends its footprint to the booming smart car industry.

Vatics, an image signal processing provider, has been selling system-on-a-chip (SoC) and intellectual property to manufacturers of surveillance, consumer, and automotive products for many years across the United States and China.

Headquartered in San Diego with a development force in Taipei, Kneron has emerged in recent years as a challenge to AI chip incumbents like Intel and Google. Its chips boast of low-power consumption and enable data processing directly on the chips using the startup’s proprietary software, a departure from solutions that require data to be computed through powerful cloud centers and sent back to devices.

The approach has won Kneron a list of heavyweight backers, including strategic investor Foxconn, Qualcomm, Sequoia Capital, Alibaba, and Li Ka-shing’s Horizons Ventures.

Kneron has designed chips for scenarios ranging from manufacturing, smart homes, smartphones, robotics, surveillance and payments to autonomous driving. In the automotive field, it has struck partnerships with Foxconn and Otus, a supplier for Honda and Toyota.

Following the acquisition, Vatics executives will join Kneron to lead its surveillance and security camera division. The merged teams will jointly develop surveillance and automotive products for Kneron going forward. Image signal processors, coupled with neural processing units, are helpful in detecting objects and ensuring the safety of automated cars.

“This acquisition will allow us to offer full-stack AI solutions, along with our current class-leading NPUs [neural processing units], and will significantly speed up our go-to-market strategy,” said Kneron’s founder and CEO, Albert Liu.

#albert-liu, #alibaba, #apple, #apple-inc, #artificial-intelligence, #asia, #automotive, #china, #computing, #foxconn, #honda, #horizons-ventures, #intel, #kneron, #li-ka-shing, #manufacturing, #qualcomm, #san-diego, #semiconductor, #sequoia-capital, #system-on-a-chip, #taipei, #tesla, #toyota

0

ReleaseHub nabs $2.7M seed to give developers on-demand environments

Every developer relies on environments like testing, staging and production as they build software, but building them can be a time-consuming operation. ReleaseHub, an early stage startup that was part of the Y Combinator Winter 2020 cohort, wants to change that by providing a service to make environments available on demand.

Today, the company announced a $2.7 million seed, and also announced that service is generally available while they were at it. Sequoia led the round with participation from Y Combinator, Rogue VC, Liquid Capital and unnamed angel investors.

Company co-founder and CEO Tommy McClung says that every developer in the world has to use environments in their development workflow, but it remains for the most part a manual process.

“All of those environments are incredibly difficult to build. So the problem we’re solving is the ability to create those on demand. Instead of having to have a DevOps team that is responsible for managing, creating and maintaining them, the software does that and you can instantaneously create them,” McClung told me.

The service is integrated into GitHub and BitBucket, so you can build the environments on the fly as you need them based on templates for the various type. “The real value that we’re bringing to the table here is that we’re bringing that together in an almost virtualized way so that you can reproduce these environments on demand,” he said.

McClung who has been working in technology for over 20 years says this is a problem he’s seen over and over again at the various companies he’s worked at over the years. After running engineering at TrueCar, his most recent company, he decided to build a startup to solve the problem once and for all.

He notes that this is the second time he’s been a YC company and while the size and scope of the operation has changed since he last participated in 2009, the process remains much the same. For starters, there were 20 companies involved back then and over 200 this time around, but he says by breaking it down into smaller groups, it helped create the same feel.

The company launched at the beginning of last year, and spent last year building the product and working with design partners and beta customers ahead of today’s release. The plan is to offer a subscription service where companies pay by the number of environments they create.

ReleaseHub currently has 10 employees including the three founders with plans to add more, especially engineers to help continue building out the solution and adding more layers of functionality. As he does this, McClung says bringing in a diverse group of employees is a priority for the founding team.

“I mean I’ve been building companies for a long time and it has to be embedded into the DNA of the company at the very earliest stages, so making sure that you have diverse talent [from the start],” he said.

He says the plan is to stay 100% remote even after offices open again. “We were forced into being remote and actually we made it work really well for us. You know in a lot of ways it’s advantageous for work-life balance,” he said.

#cloud, #developer, #developer-tools, #funding, #releasehub, #sequoia-capital, #startups, #y-combinator

0

#DealMonitor – n8n sammelt weitere 12 Millionen ein – Geberit investiert in Medipee – Mister Spex-IPO rückt näher


Im aktuellen #DealMonitor für den 27. April werfen wir wieder einen Blick auf die wichtigsten, spannendsten und interessantesten Investments und Exits des Tages in der DACH-Region. Alle Deals der Vortage gibt es im großen und übersichtlichen #DealMonitor-Archiv.

INVESTMENTS

n8n
+++ Felicis Ventures, Sequoia Capital, firstminute Capital und Harpoon Ventures investieren 12 Millionen US-Dollar in n8n. Die Berliner No-Code-Jungfirma, die 2019 von Jan Oberhauser gegründet wurde, bezeichnet sich selbst als “Free and Open Workflow Automation Tool”. Mit der Software des Startups können Nutzer verschiedenste Webanwendungrn ohne Programmierkenntnisse miteinander verbinden bzw. synchronisieren. Der amerikanische Geldgeber Sequoia Capital investierte bereits 2020 in n8n. Insgesamt flossen nun schon 14 Millionen in die Jungfirma. Mit dem frischen Kapital möchte das Unternehmen “sein Produkt weiterentwickeln und sein Team in Berlin ausbauen”. Mehr über n8n

Medipee 
+++ Das Sanitär-Unternehmen Geberit, der Pflegeheimbetreiber WBG und einige Angel-Investoren aus dem E-Health-Segment investieren in Medipee. “Die Finanzierung ist in zwei Stufen vereinbart. Dabei besteht die Möglichkeit über ein 2nd Closing bis Ende Juni zu gleichen Konditionen einzusteigen”, teilt das Unternehmen aus Moers mit. Bei Medipee dreht sich alles um Urin. Das Startup, das von Thomas Prokopp, Paul Bandi und Frank Willems ins Leben gerufen wurde, möchte “Informationen im menschlichen Urin in einem automatisierten Verfahren an der heimischen Toilette nutzbar zu machen”. Mehr über Medipee 

STOCK MARKET

Mister Spex
+++ Der Berliner Brillen-Shop Mister Spex, der 2007 von Dirk Graber gegründet wurde, bereitet seinen erwarteten Börsengang nun für Juli vor – siehe Reuters. Die Bewertung soll bei mehr als 1 Milliarde Euro liegen. 2019 erwirtschaftete Mister Spex einen Umsatz in Höhe von 139 Millionen Euro. Das bereinigte EBITDA lag bei 2 Millionen Euro (2018: 0,2 Millionen Euro). Mehr über Mister Spex

DIE HÖHLE DER LÖWEN

Pottburri
+++ In der sechsten Folge der neunten Staffel investierte Regal-Löwe Ralf Dümmel 150.000 Euro in Pottburri und sicherte sich dabei 20 % am Unternehmen. Das junge Unternehmen entwickelt einen biologisch abbaubaren Blumentopf. Ursprünglich wollten die Pottburri-Macher 150.000 Euro für 12,5 % der Firmenanteile einsammeln.

HaselHerz
+++ In der sechsten Folge der neunten Staffel investierte Regal-Löwe Ralf Dümmel zudem in HaselHerz und sicherte sich dabei 25 % am Unternehmen. Hinter HaselHerz verbirgt sich eine Nuss-Nougat-Creme in Bio-Qualität ohne Palmöl und Industriezucker. Ursprünglich wollte Gründerin Ebru Erkunt 80.000 Euro für 20 % der Firmenanteile einsammeln.

Coffee Colorato
+++ In der sechsten Folge der neunten Staffel investierten Sales-Löwe Carsten Maschmeyer und Familien-Löwin Dagmar Wöhrl 175.000 Euro in Coffee Colorato, einen speziellen Kaffeedrucker für personalisierte Getränke, und sicherten sich dabei 25 % am Unternehmen.

Achtung! Wir freuen uns über Tipps, Infos und Hinweise, was wir in unserem #DealMonitor alles so aufgreifen sollten. Schreibt uns eure Vorschläge entweder ganz klassisch per E-Mail oder nutzt unsere “Stille Post“, unseren Briefkasten für Insider-Infos. Ursprünglich wollte die Gründer 175.000 Euro für 15 % der Firmenanteile einsammeln.

Startup-Jobs: Auf der Suche nach einer neuen Herausforderung? In der unserer Jobbörse findet Ihr Stellenanzeigen von Startups und Unternehmen.

Foto (oben): azrael74

#aktuell, #coffee-colorato, #felicis-ventures, #firstminute-capital, #geberit, #harpoon-ventures, #haselherz, #ipo, #medipee, #mister-spex, #moers, #n8n, #no-code, #pottburri, #sequoia-capital, #venture-capital, #wbg

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Tamika Butler, Remix’s Tiffany Chu and Revel’s Frank Reig to discuss how to balance equitability and profitability at TC Sessions Mobility

The race among mobility startups to become profitable by controlling market share has produced a string of bad results for cities and the people living in the them.

City officials and agencies learned from those early deployments of ride-hailing and shared scooter services and have since pushed back with new rules and tighter control over which companies can operate. This correction has prompted established companies to change how they do business and fueled a new crop of startups, all promising a different approach.

But can mobility be accessible, equitable and profitable? And how?

TC Sessions: Mobility 2021, a virtual event scheduled for June 9, aims to dig into those questions. Luckily, we have three guests who are at the center of cities, equity and shared mobility: community organizer, transportation consultant and lawyer Tamika L. Butler, Remix co-founder and CEO Tiffany Chu and Revel co-founder and CEO Frank Reig.

Butler, a lawyer and founder and principal of her own consulting company, is well known for work in diversity and inclusion, equity, the built environment, community organizing and leading nonprofits. She was most recently the director of planning in California and the director of equity and inclusion at Toole Design. She previously served as the executive director of the Los Angeles Neighborhood Land Trust and was the executive director of the Los Angeles County Bicycle Coalition. Butler also sits on the board of Lacuna Technologies.

Chu is the CEO and co-founder of Remix, a startup that developed mapping software used by cities for transportation planning and street design. Remix was recently acquired by Via for $100 million and will continue to operate as a subsidiary of the company. Remix, which was backed by Sequoia Capital, Energy Impact Partners, Y Combinator, and Elemental Excelerator has been recognized as both a 2020 World Economic Forum Tech Pioneer and BloombergNEF Pioneer for its work in empowering cities to make transportation decisions with sustainability and equity at the forefront. Chu currently serves as Commissioner of the San Francisco Department of the Environment, and sits on the city’s Congestion Pricing Policy Advisory Committee. Previously, Tiffany was a Fellow at Code for America, the first UX hire at Zipcar and is an alum of Y Combinator. Tiffany has a background in architecture and urban planning from MIT.

Early Bird tickets to the show are now available — book today and save $100 before prices go up.

Reig is the co-founder and CEO of Revel, a transportation company that got its start launching a shared electric moped service in Brooklyn. The company, which launched in 2018, has since expanded its moped service to Queens, Manhattan, the Bronx, Washington, D.C., Miami, Oakland, Berkeley, and San Francisco. The company has since expanded its focus beyond moped and has started to build fast-charging EV Superhubs across New York City and launched an eBike subscription service in four NYC boroughs. Prior to Revel, Reig held senior roles in the energy and corporate sustainability sectors.

The trio will join other speakers TechCrunch has announced, a list that so far includes Joby Aviation founder and CEO JonBen Bevirt, investor and Linked founder Reid Hoffman, whose special purpose acquisition company just merged with Joby, as well as investors Clara Brenner of Urban Innovation Fund, Quin Garcia of Autotech Ventures and Rachel Holt of Construct Capital and Starship Technologies co-founder and CEO/CTO Ahti Heinla. Stay tuned for more announcements in the weeks leading up to the event.

#america, #automotive, #autotech-ventures, #brands, #butler, #california, #ceo, #cities, #clara-brenner, #companies, #construct-capital, #energy, #energy-impact-partners, #frank-reig, #joby-aviation, #miami, #mit, #new-york-city, #oakland, #quin-garcia, #rachel-holt, #reid-hoffman, #remix, #revel, #san-francisco, #sequoia-capital, #starship-technologies, #startup-company, #tamika-l-butler, #tc, #tc-sessions-mobility, #techcrunch, #tiffany-chu, #transportation, #urban-innovation-fund, #washington-d-c, #world-economic-forum, #y-combinator, #zipcar

0

BigEye (formerly Toro) scores $17M Series A to automate data quality monitoring

As companies create machine learning models, the operations team needs to ensure the data used for the model is of sufficient quality, a process that can be time consuming. BigEye (formerly Toro), an early stage startup is helping by automating data quality.

Today the company announced a $17 million Series A led Sequoia Capital with participation from existing investor Costanoa Ventures. That brings the total raised to $21 million with the $4 million seed, the startup raised last May.

When we spoke to BigEye CEO and co-founder Kyle Kirwan last May, he said the seed round was going to be focussed on hiring a team — they are 11 now — and building more automation into the product, and he says they have achieved that goal.

“The product can now automatically tell users what data quality metrics they should collect from their data, so they can point us at a table in Snowflake or Amazon Redshift or whatever and we can analyze that table and recommend the metrics that they should collect from it to monitor the data quality — and we also automated the alerting,” Kirwan explained.

He says that the company is focusing on data operations issues when it comes to inputs to the model such as the table isn’t updating when it’s supposed to, it’s missing rows or there are duplicate entries. They can automate alerts to those kinds of issues and speed up the process of getting model data ready for training and production.

Bogomil Balkansky, the partner at Sequoia who is leading today’s investment sees the company attacking an important part of the machine learning pipeline. “Having spearheaded the data quality team at Uber, Kyle and Egor have a clear vision to provide always-on insight into the quality of data to all businesses,” Balkansky said in a statement.

As the founding team begins building the company, Kirwan says that building a diverse team is a key goal for them and something they are keenly aware of.

“It’s easy to hire a lot of other people that fit a certain mold, and we want to be really careful that we’re doing the extra work to [understand that just because] it’s easy to source people within our network, we need to push and make sure that we’re hiring a team that has different backgrounds and different viewpoints and different types of people on it because that’s how we’re going to build the strongest team,” he said.

BigEye offers on prem and SaaS solutions, and while it’s working with paying customers like Instacart, Crux Informatics, and Lambda School, the product won’t be generally available until later in the year.

#artificial-intelligence, #bigeye, #enterprise, #funding, #machine-learning, #recent-funding, #sequoia-capital, #startups, #tc, #toro

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Sequoia Capital India on its early investment in Appier, the fund’s latest exit

Chih-Han Yu, chief executive officer and co-founder of Appier Group Inc., right, holds a hammer next to a bell during an event marking the listing of the company on the Tokyo Stock Exchange, at the company's office in Taipei, Taiwan on Tuesday, March 30, 2021. Photographer: Billy H.C. Kwok/Bloomberg via Getty Images

Chih-Han Yu, chief executive officer and co-founder of Appier Group Inc., right, holds a hammer next to a bell during an event marking the listing of the company on the Tokyo Stock Exchange, at the company’s office in Taipei, Taiwan on Tuesday, March 30, 2021. Photographer: Billy H.C. Kwok/Bloomberg via Getty Images

Appier’s initial public offering on the Tokyo Stock Exchange yesterday was a milestone not only for the company, but also Sequoia Capital India, one of its earliest investors. Founded in Taiwan, Appier was the fund’s first investment outside of India, and is now also the first company in its portfolio outside of India to go public. In an interview with TechCrunch, Sequoia Capital managing director Abheek Anand talked about what drew the firm to Appier, which develops AI-based marketing software.

Before shifting its focus to marketing, Appier’s founders—chief executive officer Chih-Han Yu, chief operating officer Winnie Lee and chief technology officer Joe Su—worked on a startup called Plaxie to develop AI-powered gaming engines. Yu and Su came up with the idea when they were both graduate students at Harvard, but found there was little demand at the time. Anand met them in 2013, soon after their pivot to big data and marketing, and Sequoia Capital India invested in Appier’s Series A a few months later.

“It’s easy to say in retrospect what worked and what didn’t work. What really stands out without trying to write revisionist history is that this was just an incredibly smart team,” said Anand. “They had probably the most technical core DNA of any Series A company that we’ve met in years, I would argue.” Yu holds a PhD in computer science from Harvard, Wu earned a PhD in immunology at Washington University in St. Louis and Su has a M.S. in computer science from Harvard. The company also filled its team with AI and machine learning researchers from top universities in Taiwan and the United States.

At the time, Sequoia Capital “had a broad thesis that there would be adoption of AI in enterprises,” Anand said. “What we believed was there were a bunch of people going after that problem, but they were trying to solve business problems without necessarily having the technical depth to do it.” Appier stood out because they “were swinging at it from the other end, where they had an enormous amount of technical expertise.”

Since Appier’s launch in 2012, more companies have emerged that use machine learning and big data to help companies automate marketing decisions and create online campaigns. Anand said one of the reasons Appier, which now operates in 14 markets across the Asia-Pacific region, remains competitive is its strategy of cross-selling new products and focusing on specific use cases instead of building a general purpose platform.

Appier’s core product is a cross-platform advertising engine called CrossX that focuses on user acquisition. Then it has products that address other parts of their customers’ value chain: AiDeal to help companies send coupons to the customers who are most likely to use them; user engagement platform AIQUA; and AIXON, a data science platform that uses AI models to predict customer actions, including the likelihood of repeat purchases.

“I think the number one thing that the company has spent a lot of time on is focusing on efficiency,” said Anand. “Customers have tons of data, both external and first-party, that they’re processing to drive business outcomes. It’s a very hard technical problem. Appier starts with a solution that is relatively easy to break into a customer, and then builds deeper and deeper solutions for those customers.”

Appier’s listing is also noteworthy because it marks the first time a company from Taiwan has listed in Japan since Trend Micro’s IPO in 1998. Japan is one of Appier’s biggest markets (customers there include Rakuten, Toyota and Shiseido), making the Tokyo Stock Exchange a natural fit, Anand said, even though most of Sequoia Capital India’s portfolio companies list in India or the United States.

The Tokyo Stock Exchange also stood out because of its retail investor participation, liquidity and total volume. Some of Appier’s other core investors, including JAFCO Asia and SoftBank Group Corp., are also based in Japan. But though it has almost $30 billion in average trading volume, the vast majority of listings are domestic companies. In a recent report, Nikkei Asia cited a higher corporate tax rate and lack of potential underwriters, especially for smaller listings, as a potential obstacles for foreign companies.

But Appier’s debut may lead the way for other Asian startups to chose the Tokyo Stock Exchange, said Anand. “Getting ready for the Japanese exchange meant having the right accounting practices, the right reporting, a whole bunch of compliance stuff. It was a long process. In some ways we were leading the charge for external companies to get there, and I’m sure over time it will keep getting easier and easier.”

#appier, #asia, #fundings-exits, #ipo, #japan, #marketing, #sequoia-capital, #sequoia-capital-india, #startups, #taiwan, #tc

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Crypto social network BitClout arrives with a bevy of high profile investors, and skeptics

While much of the recent wave of relentless hype around NFTs — or non-fungible tokens — has been most visibly manifested in high-dollar art auctions or digital trading cards sales, there’s also been a relentless string of chatter among bullish investors who see a future that ties the tokens to the future of social media and creator monetization.

Much of the most spirited conversations have centered on a pre-launch project called BitClout, a social crypto-exchange where users can buy and sell tokens based on people’s reputations. The app, which launches out of private beta tomorrow morning, has already courted plenty of controversy inside the crypto community, but it’s also amassed quite a war chest as investors pump tens of millions into its proprietary currency.

Early backers of the platform’s BitClout currency include a who’s who of Silicon Valley investors including Sequoia Capital and Andreessen Horowitz, the startup’s founder tells TechCrunch. Other investors include Chamath Palihapitiya’s Social Capital, Coinbase Ventures, Winklevoss Capital and Reddit co-founder Alexis Ohanian. A report in Decrypt notes that a single wallet connected to BitClout has received more than $165 million worth of Bitcoin deposits suggesting that huge sums have already poured into the network ahead of its public launch.

BitClout falls into an exploding category of crypto companies that are focusing on tokenized versions of social currency. Others working on building out these individual tokens include Roll and Rally, which aim to allow creators to directly monetize their internet presence and allow their fans to bet on them. Users who believe in a budding artist can invest in their social currency and could earn returns as the creator became more famous and their coins accrued more value.

“If you look at people’s existing relationships with social media companies, it’s this very adversarial thing where all the content they produce is not really theirs but it belongs to the corporation that doesn’t share the monetization with them,” BitClout’s founder, who refers to themselves pseudonymously as “diamondhands,” tells TechCrunch. (There’s been some speculation on their identity as a former founder in the cryptocurrency space, but in a call with TechCrunch, they would not confirm their identity.)

The BitClout platform revolves around the BitClout currency. At the moment users can deposit Bitcoin into the platform which is instantly converted to BitClout tokens and can then be spent on individual creators inside the network. When a creator gets more popular as more users buy their coin, it gets more expensive to buy denominations of their coin. Creators can also opt in to receive a certain percentage of transactions deposited into their own BitClout wallets so that they continue to benefit from their own success.

The company’s biggest point of controversy hinges on what has been opt-in and what has been opt-out for the early group of accounts on the platform. Most other social currency offerings are strictly opt-in. Users come to the platform in search of a way to create tokens that allow them to monetize a fanbase and build a social fabric across multiple platforms. The thought being that if the platforms own the audience then you are at their mercy.

BitClout has taken an aggressive growth strategy here, turning that model on its head. The startup has pre-populated the BitClout network with 15,000 accounts after scraping information from popular public Twitter profiles. This means that BitClout users can buy shares of Kim Kardashian’s social coin or Elon Musk’s without those individuals ever having signed up for a profile or agreeing to it. This hasn’t been well-received by all of those who unwittingly had accounts set up on their behalf including many crypto-savvy users who got scooped up in the initial wave of seeding.

The startup’s founder says that this effort was largely an effort to prevent handle squatting and user impersonation but he believes that as the platform opens, a sizable pre-purchase of creator coins reserved for the owners of these accounts will entice those users to verify their handles to claim the funds.

Perhaps BitClout’s most eyebrow raising quirk is that the platform is launching with a way to invest into the platform and convert bitcoin into BitClout, but at launch there’s no way to cash out funds. The project’s founder says that it’s only a matter of time before this is resolved, and points to Coinbase and the Winkelvoss twin’s status as coin holders as a sign of future exchange support to come, but the company has no specifics to share at launch.

While the founders and investors behind the project see a bright future for social currencies on the blockchain, many in the decentralized community have been less impressed with BitClout’s early efforts to achieve viral adoption among creators in a permission-less manner.

“BitClout will make a great case study on how badly crypto projects can mess up incentive engineering when they try to monetize social networks.” Jay Graber, a decentralized platform researcher involved in Twitter’s bluesky effort, said in a tweet. “Trust and reputation are key, and if you create a sketchy platform and mess with people’s reputations without their consent it is not going to go well.”

If BitClout comes out of the gate and manages to convert enough of its pre-seeded early adopter list that there is value in joining its closed ecosystem version of a social token then it may have strong early momentum in an explosive new space that many creators are finding valuable. The concepts explored by others in the social currency space are sound, but this particular execution of it is a high-risk one. The network launches tomorrow morning so we’ll see soon enough.

#alexis-ohanian, #andreessen-horowitz, #artist, #bitclout, #bitcoin, #co-founder, #coinbase, #coinbase-ventures, #cryptocurrencies, #cryptocurrency, #cryptography, #currency, #digital-currencies, #gemini, #kim-kardashian, #reddit, #sequoia-capital, #social-media, #social-networks, #tc, #winklevoss-capital

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Payments Start-Up Stripe Surges to $95 Billion Valuation

The company has benefited in the pandemic as people turn to online shopping. It is now the most valuable start-up in the U.S.

#airbnb, #coinbase-inc, #coronavirus-2019-ncov, #dublin-ireland, #e-commerce, #robinhood-financial-llc, #sequoia-capital, #start-ups, #stripe-inc, #venture-capital

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Instacart raises $265M at a $39B valuation

On-demand grocery delivery platform Instacart has raises a $265 million funding ground from existing investors, including Andreessen Horowitz, Sequoia Capital, D1 Capital Partners and others. The new funding, which, like its past few rounds, isn’t assigned a Series alphabetical designation, pushes the company’s valuation to $39 billion – more than double its $17.7 billion valuation when it raised is last financing, a $200 million venture round in October 2020.

What’s behind the massive increase in the value investors are willing to ascribe to the business? Put simply, the pandemic. Last year, Instacart announced three separate raises, including a $225 round in June, followed by a $100 million round in July. The rapid sequence of venture capital injections were likely designed to fuel growth as demand for grocery delivery services surged while people attempted to quarantine or generally spend less time frequenting high-traffic social environments like grocery stores.

In a blog post announcing the news, Instacart doesn’t put specifics on the growth rates of usage over the course of 2020, but it does express its intent to grow headcount by 50% in 2021, and continue to scale and invest in its advertising, marketing and enterprise efforts specifically in a quote.

On the product side, Instacart broadened its offerings from groceries to also include same-day delivery of a wide range of products, including prescription medicine, electronics, home decor, sport and exercise equipment and more. It’s capitalizing on the phenomenon of increased consumer spending during the pandemic, which is a reverse from what many anticipated given the impact the ongoing crisis has had on employment.

Instacart Chief Financial Officer Nick Giovanni said in a quote that the company expects this to be “a new normal” for shopping habits, and the size and pace of the company’s recent funding, as well as its ballooning valuation, seem to suggest its investors also don’t think this is a trend that will revert post-pandemic.

#andreessen-horowitz, #chief-financial-officer, #d1-capital-partners, #electronics, #finance, #funding, #fundraising, #instacart, #investment, #money, #private-equity, #recent-funding, #sequoia-capital, #startups, #tc, #valuation, #venture-capital

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Aquarium scores $2.6M seed to refine machine learning model data

Aquarium, a startup from two former Cruise employees, wants to help companies refine their machine learning model data more easily and move the models into production faster. Today the company announced a $2.6 million seed led by Sequoia with participation from Y Combinator and a bunch of angel investors including Cruise co-founders Kyle Vogt and Dan Kan.

When the two co-founders CEO Peter Gao and head of engineering Quinn Johnson, were at Cruise they learned that finding areas of weakness in the model data was often the problem that prevented it from getting into production. Aquarium aims to solve this issue.

“Aquarium is a machine learning data management system that helps people improve model performance by improving the data that it’s trained on, which is usually the most important part of making the model work in production,” Gao told me.

He says that they are seeing a lot of different models being built across a variety of industries, but teams are getting stuck because iterating on the data set and continually finding relevant data is a hard problem to solve. That’s why Aquarium’s founders decided to focus on this.

“It turns out that most of the improvement to your model, and most of the work that it takes to get it into production is about deciding, ‘Here’s what I need to go and collect next. Here’s what I need to go label. Here’s what I need to go and retrain my model on and analyze it for errors and repeat that iteration cycle,” Gao explained.

The idea is to get a model into production that outperforms humans. One customer Sterblue offers a good example. They provide drone inspection services for wind turbines. Their customers used to send out humans to inspect the turbines for damage, but with a set of drone data, they were able to train a machine learning model to find issues. Using Aquarium, they refined their model and improved accuracy by 13%, while cutting the cost of human reviews in half, Gao said.

The 7 person Aquarium startup team.

The Aquarium team. Image: Aquarium

Aquarium currently has 7 employees including the founders, of which three are women. Gao says that they are being diverse by design. He understands the issues of bias inherent in machine learning model creation, and creating a diverse team for this kind of tooling is one way to help mitigate that bias.

The company launched last February and spent part of the year participating in the Y Combinator Summer 2020 cohort. They worked on refining the product throughout 2020, and recently opened it up from beta to generally available.

#aquarium, #artificial-intelligence, #enterprise, #funding, #machine-learning, #recent-funding, #sequoia-capital, #startups, #y-combinator

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Census raises $16M Series A to help companies put their data warehouses to work

Census, a startup that helps businesses sync their customer data from their data warehouses to their various business tools like Salesforce and Marketo, today announced that it has raised a $16 million Series A round led by Sequoia Capital. Other participants in this round include Andreessen Horowitz, which led the company’s $4.3 million seed round last year, as well as several notable angles, including Figma CEO Dylan Field, GitHub CTO Jason Warner, Notion COO Akshay Kothari and Rippling CEO Parker Conrad.

The company is part of a new crop of startups that are building on top of data warehouses. The general idea behind Census is to help businesses operationalize the data in their data warehouses, which was traditionally only used for analytics and reporting use cases. But as businesses realized that all the data they needed was already available in their data warehouses and that they could use that as a single source of truth without having to build additional integrations, an ecosystem of companies that operationalize this data started to form.

The company argues that the modern data stack, with data warehouses like Amazon Redshift, Google BigQuery and Snowflake at its core, offers all of the tools a business needs to extract and transform data (like Fivetran, dbt) and then visualize it (think Looker).

Tools like Census then essentially function as a new layer that sits between the data warehouse and the business tools that can help companies extract value from this data. With that, users can easily sync their product data into a marketing tool like Marketo or a CRM service like Salesforce, for example.

Image Credits: Census

Three years ago, we were the first to ask, ‘Why are we relying on a clumsy tangle of wires connecting every app when everything we need is already in the warehouse? What if you could leverage your data team to drive operations?’ When the data warehouse is connected to the rest of the business, the possibilities are limitless.” Census explains in today’s announcement. “When we launched, our focus was enabling product-led companies like Figma, Canva, and Notion to drive better marketing, sales, and customer success. Along the way, our customers have pulled Census into more and more scenarios, like auto-prioritizing support tickets in Zendesk, automating invoices in Netsuite, or even integrating with HR systems.

Census already integrates with dozens of different services and data tools and its customers include the likes of Clearbit, Figma, Fivetran, LogDNA, Loom and Notion.

Looking ahead, Census plans to use the new funding to launch new features like deeper data validation and a visual query experience. In addition, it also plans to launch code-based orchestration to make Census workflows versionable and make it easier to integrate them into enterprise orchestration system.

#andreessen-horowitz, #business-intelligence, #canva, #ceo, #clearbit, #computing, #crm, #cto, #data-management, #data-warehouse, #dylan-field, #enterprise, #figma, #fivetran, #github, #google, #information, #information-technology, #logdna, #looker, #loom, #marketo, #netsuite, #notion, #parker-conrad, #recent-funding, #salesforce, #sequoia-capital, #startups, #tc, #warehouse, #zendesk

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