To sell or not to sell: Lessons from a bootstrapped CEO

The clock begins ticking on a startup the day the doors open. Regardless of a young company’s struggles or success, sooner or later the question of when, how or whether to sell the enterprise presents itself. It’s possibly the biggest question an entrepreneur will face.

For founders who self-funded (bootstrapped) their startup, a boardroom full of additional factors come into play. Some are the same as for investor-funded firms, but many are unique.

Put happiness at the center of the decision, and let your intuition — the instincts that made you the person you are today — be your guide.

After 18 years of bootstrapping a BI software firm into a business that now serves 28,000 companies and three million users in 75 countries, here’s what I’ve learned about myself, my company, about entrepreneurship and about when to grab for that brass ring.

Profitable or bust

Starting a software company 7,900 miles southwest of Silicon Valley requires some forethought and not a small amount of crazy. When we opened, it didn’t occur to us that one could have an idea and then go knock on someone’s door and ask for money.

Bootstrapping forced us to be a bit more creative about how we would go about building our company. In the early days, it was a distraction to growth, because we were doing other revenue-generating activities like consulting, development work, whatever we could find to keep ourselves afloat while we built Yellowfin. It meant we couldn’t be 100% focused on our idea.

However, it also meant we had to generate income from our new company from Day One — something funded companies don’t have to do. We never got into the mindset that it was okay to burn lots of cash and then cross our fingers and hope that it worked.

#bootstrapping, #column, #ec-column, #ec-how-to, #entrepreneurship, #exits, #fundings-exits, #startup-company, #startups

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SOSV’s burgeoning climate portfolio is worth nearly $6 billion as planetary health bets pay off

The burgeoning climate focused portfolio from early stage investor SOSV Investments has managed to raise nearly $2 billion in follow on financing since the startup companies graduated from the investment firm’s various accelerator programs. Taken together those companies have a collective market capitalization of nearly $6 billion.

Ahead of Earth Day this year, the early stage investor responsible for a series of accelerators including HAX, IndieBio, Chinaccelerator, and Food Labs, tallied up the results of the $89 million the firm has committed to these companies and the results, were impressive — especially considering the average age fo a company in the portfolio is only four years old.

SOSV tallied the companies into the Climate Tech 100 and divided them into categories that included startups developing technologies and services that have a direct impact on the planet and those that are adjacent to carbon removal — a further bucket was a group of startups that developed marketplaces for low carbon goods and services.

This all starts from trying to do meaningful things and purposeful things. We are trying to invest in these unstoppable forces and unstoppable trends and there has never been a more unstoppable force than climate change,” said SOSV Investments founder Sean O’Sullivan. “What we discovered we were in the right place at the right time in the climate.”

In the six years since the firm launched IndieBio with Arvind Gupta (now at the Mayfield Fund), SOSV’s life sciences accelerator had a dual focus on human and planetary health. By pursuing both areas, the firm was able to see the wave of climate tech applications in life sciences begin to rise and crest — and that’s led to early investments in companies like Perfect Day, Memphis Meats, Geltor, and MycoWorks, which are all companies using biological materials to replace traditional animal products.

Planetary health is very much our thesis here. Arvind didn’t have to talk Sean into putting $100 million at the time,” said IndieBio’s new head Po Bronson (a longtime business writer who co-authored “Decoding the World” with Gupta and partnered with him at IndieBio).

SOSV Investments founder Sean O’Sullivan

The emphasis on food, Bronson said, was because it was an area where consumers were putting pressure on companies by changing their own habits and looking for alternatives. The decision to move to plant based products is one consumer choice that can make a significant difference in planetary health — as well as their own individual health. Other systems are much harder to change without legislation or industrial support, said Bronson.

Meanwhile, the hardware group in HAX Shenzhen run by Duncan Turner is beginning to see industrial companies embrace the demands for more sustainable manufacturing practices. Indeed, the 3D printing company Formlabs is another startup that’s brought in big dollars with a process that directly impacts the carbon footprint of manufacturing.

“How we make things used to be invisible before. Every publicly traded company has to do some sort of accounting in this space,” said Bronson. “The entire manufacturing sector is being interrogated on ths front. It’s coming through and it’s driving adoption.”

Looking ahead, Bronson sees opportunities in green chemistry to move the needle beyond life sciences applications in the food space. Those new technologies include services on offer from startups like Zymochem which is making a biorecyclable material for diapers that’s better for the planet, or Pili, which is making biologically based dyes and pigments. Bronson is also looking for biological solutions that can create massive, passive systems to sequester greenhouse gases in oceans or in soil.

Meanwhile, Turner is hoping to find companies like Socure, which removes the need for a chemical separation agent for oil separation; or DivyGas, which has a method for manufacturing green hydrogen.

“Not only are the opportunities available, but this is a way people can make money,” said O’Sullivan. “Our net IRR is in the 30% plus range. You can make money in climate tech. So don’t be afraid to invest in these companies.” 

#3d-printing, #arvind-gupta, #duncan-turner, #earth-day, #entrepreneurship, #food, #formlabs, #geltor, #hardware, #head, #indiebio, #manufacturing, #mayfield-fund, #memphis-meats, #mycoworks, #perfect-day, #po-bronson, #private-equity, #sean-osullivan, #sosv, #startup-company, #tc

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Founders Factory Africa partners with Small Foundation to invest in 18 agritech startups

Johannesburg-based investment company Founders Factory Africa (FFA) today announced a partnership with Small Foundation that will see it select 18 agritech startups for an acceleration and incubation program.

Small Foundation is a Dublin-based philanthropic organization that focuses on the rural and agriculture sector in sub-Saharan Africa. With this partnership, Small Foundation is making an undisclosed investment in FFA to build and scale agritech startups on the continent.

“The partnership stands to make a significant impact across the continent by supporting agritech startups who can innovate and improve the delivery of a range of services to smallholder farmers and micro, small and medium-sized enterprises in the agricultural sector,” an excerpt in a statement read.

According to the South African-based venture development and investment company founded by Roo Rogers and Alina Truhina, early-stage founders will need to apply to join the Founders Factory Africa Venture Scale or Venture Build portfolios. These startups will have access to funding between $100,000 to $250,000 and hands-on technical support.

This is a change from when the company launched in 2018. FFA is an extension of the Founders Factory organisation that has invested in more than 130 companies globally. In 2018, FFA launched its first vertical in fintech when it partnered with the continent’s largest bank, Standard Bank, to invest in fintech startups. Some of the startups include Bwala, LipaLater, MVXchange and OkHi.

The following year, it took on a second investor in South African healthcare company Netcare Group and, via the partnership, invested in health-tech startups like RxAll, Redbird and Wellahealth.

Last year when we reported this partnership, startups in FFA’s Venture Scale accelerator program received a £30,000 cash investment and £220,000 in support services. Those in the Venture Build program received £60,000 cash and £100,000 toward support.   

For this third partnership, Truhina says FFA will be investing a total of $300,000 in cash and hands-on support for companies in its Venture Scale program. However, startups in Venture Build will be receiving up to $250,000 in funding.

The Venture Scale program involves providing support for existing startups operating in seed to pre-Series A stages. On the other hand, the Venture Build program is for founders wanting to launch a startup in Africa, who may or may not have a concept or an idea

Currently, there are 23 companies across FFA’s Scale and Build portfolios. These startups, mainly from Ghana, Kenya, Nigeria and South Africa, have collectively raised more than $7 million during and after the program. Truhina says FFA plans to increase this number to nearly 90 startups in total by 2024.

“We will build, scale and invest in 88 startups with current FFA investors (Standard Bank, Netcare and Small Foundation) until 2024. We plan to continue to take on new investors and continue to work on the continent indefinitely,” she said.

Founders Factory Africa

While FFA is dedicating a fund for agritech startups, it has invested in other startups with agritech solutions for instance Nigeria’s Foodlocker. The company forecasts foodstuff demand through machine learning and helps buyers procure goods from smallholder farmers. But despite this proposition, FFA classifies the startup as a fintech investment.

“Foodlocker was a company we selected and invested in under our Fintech portfolio, as the startup has a financial component. With Small Foundation, we are setting up a new dedicated agritech sector,” said Truhina. Small Foundation joins Standard Bank and Netcare in the peculiarity of assistance offered to FFA portfolio startups. From sector expertise and footprint across the continent to access to clients, POCs and pilots, these investors are trying to fill in the gap in sectors ripe for exponential growth.

But though fintech has caught on well with both local and international investors, the same cannot be said for health tech and agritech. According to Briter Bridges, fintech accounted for 31% of the total $1.3 billion raised by African startups. Health-tech startups accounted for 9%, while agritech startups represented just 7%.

Small Foundation wants to improve this number in its own little way, and concurrently has a plan to “end extreme poverty in sub-Saharan Africa by 2030.” Conor Brosnan, the CEO and chair of the foundation, holds that tackling the sector’s biggest issues with the FFA will bring the company toward achieving this objective.

“This is a pivotal time to invest in the growing area of agritech in Africa, which has transformative potential for local livelihoods. We are excited to see FFA’s highly skilled teamwork with immensely talented African entrepreneurs to deliver scaled solutions to some of the biggest challenges faced by the sector,” he said.

In three years, Founders Factory Africa has managed to enlist the services and finances of three influential partners. Yet, it has 55 more startups to invest in before 2024, so we should expect an increased investment activity and more partnerships to fund startups in other sectors.

The firm also has fresh capital in the works for its portfolio companies as it advances, though. It’s in the process of raising a $35 million “Africa Seed Fund” which will exist alongside FFA and execute follow-on capital in some portfolio companies.

#africa, #agritech, #finance, #founders-factory-africa, #healthcare, #small-foundation, #startup-company, #startups, #tc

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Announcing our TC Sessions: SaaS virtual event happening October 27

Software-as-a-Service (SaaS) is now the default business model for most B2B and B2C software startups. And while it’s been around for a while now, its momentum keeps accelerating and the ecosystem continues to expand as technologists and marketers are getting more sophisticated about how to build and sell SaaS products. For all of them, we’re pleased to announced TechCrunch Sessions: SaaS 2021, a one-day virtual event that will examine the state of SaaS to help startup founders, developers and investors understand the state of play and what’s next.

The single-day event will take place 100% virtually on October 27 and will feature actionable advice, Q&A with some of SaaS’s biggest names, and plenty of networking opportunities. $75 Early Bird Passes are now on sale. Book your passes today to save $100 before prices go up.

We’re not quite ready to disclose our agenda yet, but you can expect a mix of superstars from across the industry, ranging from some of the largest tech companies to up-and-coming startups that are pushing the limits of SaaS.

The plan is to look at a broad spectrum of what’s happening in with B2B startups and give you actionable insights into how to build and/or improve your own product. If you’re just getting started, we want you to come away with new ideas for how to start your company and if you’re already on your way, then our sessions on scaling both your technology and marketing organization will help you to get to that $100 million annual run rate faster.

In addition to other founders, you’ll also hear from enterprise leaders who decide what to buy — and the mistakes they see startups make when they try to sell to them.

But SaaS isn’t only about managing growth — though ideally, that’s a problem founders will face sooner or later. Some of the other specific topics we will look at are how to keep your services safe in an ever-growing threat environment, how to use open source to your advantage and how to smartly raise funding for your company.

We will also highlight how B2B and B2C companies can handle the glut of data they now produce and use it to build machine learning models in the process. We’ll talk about how SaaS startups can both do so themselves and help others in the process. There’s nary a startup that doesn’t want to use some form of AI these days, after all.

And because this is 2021, chances are we’ll also talk about building remote companies and the lessons SaaS startups can learn from the last year of working through the pandemic.

Don’t miss out. Book your $75 Early Bird pass today and save $100.

#business-models, #computing, #enterprise, #entrepreneurship, #machine-learning, #private-equity, #saas, #software, #software-as-a-service, #startup-company, #tc

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Scale AI founder and CEO Alexandr Wang will join us at TC Sessions: Mobility on June 9

Last week, Scale AI announced a massive $325 million Series E. Led by Dragoneer, Greenoaks Capital and Tiger Global, the raise gives the San Francisco data labeling startup a $7 billion valuation.

Alexandr Wang founded the company back in 2016, while still at MIT. A veteran of Quora and Addepar, Wang built the startup to curate information for AI applications. The company is now a break-even business, with a wide range of top-notch clients, including General Motors, NVIDIA, Nuro and Zoox.

Backed by a ton of venture capital, the company plans a large-scale increase in its headcount, as it builds out new products and expands into additional markets. “One thing that we saw, especially in the course of the past year, was that AI is going to be used for so many different things,” Wang told TechCrunch in a recent interview. “It’s like we’re just sort of really at the beginning of this and we want to be prepared for that as it happens.”

The executive will join us on stage at TC Sessions: Mobility on June 9 to discuss how the company has made a major impact on the industry in its short four years of existence, the role AI is playing in the world of transportation and what the future looks like for Scale AI.

In addition to Wang, TC Sessions: Mobility 2021 will feature an incredible lineup of speakers, presentations, fireside chats and breakouts all focused on the current and future state of mobility — like EVs, micromobility and smart cities for starters — and the investment trends that influence them all.

Investors like Clara Brenner (Urban Innovation Fund), Quin Garcia (Autotech Ventures) and Rachel Holt (Construct Capital) — all of whom will grace our virtual stage. They’ll have plenty of insight and advice to share, including the challenges that startup founders will face as they break into the transportation arena.

You’ll hear from CEOs like Starship Technologies’ Ahti Heinla. The company’s been busy testing delivery robots in real-world markets. Don’t miss his discussion touching on challenges ranging from technology to red tape and what it might take to make last-mile robotic delivery a mainstream reality.

Grab your early bird pass today and save $100 on tickets before prices go up in less than a month.

#addepar, #alexandr-wang, #articles, #artificial-intelligence, #autotech-ventures, #clara-brenner, #deliv, #economy, #entrepreneurship, #executive, #general-motors, #greenoaks-capital, #micromobility, #mit, #nuro, #nvidia, #quora, #rachel-holt, #san-francisco, #scale-ai, #starship-technologies, #startup-company, #tc-sessions-mobility, #technology, #tiger-global, #transportation, #urban-innovation-fund, #venture-capital, #wang

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‘Pure’ nutritional supplements startup Feel closes $6.2M investment, led by Fuel Ventures

Earlier this year we covered the launch of Heights, a new supplements startup in an increasingly hot category. Feel, is a year-old UK startup with another twist on this world: pure nutritional supplements. It’s now closed a $6.2 million investment, led by Fuel Ventures, with participation from TMT Investments, Sova VC, Richard Longhurst (founder of LoveHoney.com) and Igor Ryabenkiy (founder and GP of Altair Capital).

Feel founder Boris Hodakel says he spun his startup up after looking at the UK’s big health and retail brands including Graze, Tesco, Bulk Powders and Simba Sleep.

In many ways Feel is very akin to Graze. The supplements arrive in a post-box-friendly box and is available in a range of subscription packages. This is basically ‘Graze nuts, but for supplements.’

Feel has a direct-to-consumer subscription model, and is claiming a 60x growth in its first year and 21,000 active subscriptions.

Hodakel’s contention is that while Feel provides higher grade supplements to consumers which cost more to produce, it manages to keep costs down for consumers via direct-to-consumer model.

Hodakel, founder and CEO of Feel said: “Not all vitamins are created equal and the majority you find on retail shelves have a dirty formula that is difficult to absorb by the body, missing natural elements. We’re the cleanest alternative in the market – backed up by science –  and continually invest in making our formulas as effective as possible while still affordable.”

He says he started Feel because, having a skin problem, supplements were part of his health routine, but “the aha moment” happened he realized how many fillers were in normal supplements. “All our formulas are researched and formulated in-house, and we keep updating them, like our flagship multivitamin in just two years is already in its 3rd version,” he said.

Mark Pearson, managing partner at Fuel Ventures added: “The growth and the expansion of Feel’s product line present a really exciting time for Feel and we are supporting them in becoming a significant disruptor to the health supplement market.” 

Alexander Chikunov, Partner at Sova VC added, “Feel is in the process of disrupting consumer habits around vitamin intake, and changing a marketplace worth $144bn by providing its customers with top-quality products, combined with flawless and friendly service.”

#altair-capital, #ceo, #europe, #founder, #fuel-ventures, #managing-partner, #mark-pearson, #startup-company, #tc, #tesco, #tmt-investments, #united-kingdom, #vitamins

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Hadrian is building the factories of the future for rocket ships and advanced manufacturing

If the eight person team behind the new startup Hadrian has their way, they’ll have transformed the manufacturing industry within the next decade.

At least, that’s the goal for the new San Francisco-based startup, founded only last year, which has set its sights on building out a new model for advanced manufacturing to enable the satellite, space ship, and advanced energy technology companies to build the future they envision better and faster.

We view our job as to provide the world’s most efficient space and defense component factory,” said Hadrian founder, Chris Power.

Initially, the company is building factories to make the parts that go on rocket ships, according to Power, but the business has implications for any company that needs bespoke components to make their equipment.

“Let me tell you how bad it is at the moment and what’s going to happen over the next 20 years. Right now everyone in space and defense, [including] SpaceX and Lockheed Martin, outsources their parts and manufacturing to small factories across the country. They’re super expensive, they’re unreliable and they’re completely invisible to the customers,” said Power. “This causes big problems with space and defense manufacturers in the design phase, because the lead time is so long and the iteration time is super long. Imagine running software and being able to iterate on your product once every 20 days? If you can imagine a Gantt chart of how to build a rocket, about 60% of that is buffer time… A lot of the delays in launches and stuff like that happen because parts got delivered three months ago. It’d be like running a McDonalds and realizing that your fries and burger providers could not tell you when the food would arrive.”

It’s hard to overstate the strategic importance of the parts suppliers to the operations of aerospace, defense, and advanced machining companies. As no less an authority on manufacturing than Elon Musk noted in a tweet, “The factory is the product.” It’s also hard to overstate the geopolitical importance of re-establishing the U.S. as a center of manufacturing excellence, according to Hadrian’s investors Lux Capital, Founders Fund, and Construct Capital. Which is one reason why they’re investing $9.5 million into the very early stage business.

“America made massive strategic mistakes in the early 90s which have left our national manufacturing ecosystem completely dilapidated,” said Founders Fund principal Delian Asparouhov. “The only way to get out of this disaster is to re-invent the most basic input into our aerospace and defense supply chains, machining metal parts quickly and with high tolerance. Right now, America’s most innovative company, SpaceX, relies on a network of near-retired machinists to produce space-worthy metal parts, and no one in technology is. focused on solving this.”

 

Power got to understand the problem at his previous company, Ento, which sold workforce management software to blue collar customers. It was there he realized the issue of. the aging workforce and the need for manufacturers to upgrade almost every aspect of their own technology stack. “I realized that the right way to bring technology to the industrial space is not to sell software to these companies, it’s to build an industrial business from scratch with software.”

Initially, Hadrian is focusing all of its efforts on the space industry, where the component manufacturing problem is especially acute, but the manufacturing capabilities the company is building out have broad relevance across any industry that requires highly engineered components.

“The demand for manufacturing from both the large SpaceX and Blue Origin all the way to this growing long tail of companies from Anduril to Relativity to Varda,” said Lux Capital co-founder Josh Wolfe. “Most of these guys are using mom and pop machine shops… [and] those shops are horribly inefficient. They’re not consistent, and they’re not reliable. Between the software automation, the hardware, you can cut down on inefficiency every step of the process… I like to think of value creation as waste reduction… so mundane things like quoting, scheduling, bidding, and planning all the way to the programming of the manufacturing… every one of those things takes hours to tens of hours to days and weeks, so if you can do that in minutes, it’s just a no-brainer. [Hadrian] will be the cutting edge choice for all of the new and explicitly dedicated and focused aerospace and defense companies.”

Power envisions a network of manufacturing facilities that can initially cover roughly 65% of all space and defense components, and will eventually take that number up to 95% of components. Already several of the biggest launch vehicle and satellite manufacturers are in talks with the company to produce hundreds of units for them, Power said. Some of those companies just happen to be in the Construct, Lux, and Founders Fund portfolio.

And the company’s founder sees this as a new way to revitalize American manufacturing jobs as well. “Manufacturing jobs in space and defense can easily be as high paying as a software engineering job at Google,” he said. In an ideal world, Hadrian would like to offer an onramp to high paying manufacturing careers in the 21st century in the same way that automakers provided good union jobs in the twentieth.

“We haven’t built any of this. If you look at the sheer number of people that we need to train and hire on our new technology and new systems, that people problem and that training problem is part of growing our business.”

A render of Axiom’s future commercial space station design.

#aerospace, #america, #blue-origin, #co-founder, #construct-capital, #elon-musk, #entrepreneurship, #factory, #food, #founders-fund, #google, #josh-wolfe, #lockheed-martin, #lux-capital, #manufacturing, #mcdonalds, #san-francisco, #software-automation, #spacex, #startup-company, #tc, #united-states

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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

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Homebound aims to help solve Austin’s housing shortage problem

The sheer volume of people migrating to Austin from all over the country, but particularly from the San Francisco Bay Area, has been making headlines for a while now.

One result of this continued migration is a steady surge in housing prices due to increased demand and low inventory that dropped to nearly zero earlier this year. Now, Homebound, a Santa Rosa, California-based tech-enabled homebuilding startup, is entering the Austin market with the goal of helping ease some of the pain felt in the city by offering an alternative to buying existing homes.

Homebound has raised about $73 million over the years from the likes of Google Ventures, Fifth Wall, Khosla, Sound Ventures, Atomic and Thrive Capital. It raised a $35 million Series B last April and then closed on a $20 million convertible note late last year. CEO Nikki Pechet and Atomic managing partner Jack Abraham founded the company in 2017 after Abraham lost his home to wildfires.

Essentially serving as a virtual general contractor, Homebound combines technology and a network for “vetted” and licensed building “experts” to manage the new home construction from the design phase to completion. The startup has developed tools to track and manage hundreds of unique tasks associated with building a home.

Up until this point, Homebound has been focused on helping homeowners navigate the challenges and complexities of rebuilding after wildfires in California. But this month, Homebound will be expanding to Austin, its first non-disaster market, with the goal of taking learnings from those rebuilds and applying the same “streamlined, tech-enabled building process” to make custom homebuilding an option for local homeowners.

I talked with Homebound’s CEO and co-founder, Nikki Pechet, to learn more.

With Homebound, she said, the company is out to serve as a “next gen” homebuilder to make it possible “for anyone, anywhere to build a home.”

Austin’s housing market is definitely overheated, with homes going 10-30% above asking in some cases (I should know, I live here).

“Homeowners have been reaching out to us from across the country asking us to come to their market,” Pechet said. “We’re already seeing Austin grow faster than any of our other markets did in their early days. It’s going to be a huge market for us.”

It’s a model Pechet envisions replicating in other cities with similar housing supply issues such as Miami, Tampa, Raleigh and Charlotte.

“This is just the start,” Pechet said. “We’re taking the platform to markets across the country to help exactly with this issue.”

The company starts by helping a potential homeowner identify land they want to build on, or help them find a lot among the inventory Homebound has already built up. From there, it can help with everything from architectural plans to design to actual construction via its platform. Homebound offers a set of plans for people to choose from, with varying levels of customization.

Building costs for a typical single-family home in the Austin area will start around $300,000 depending on the size, complexity of house, lot size and location. That does not include land cost. Some people are opting to build second units on existing properties.

“In most cases, people can build a new home for less than they can pay for an existing home just because of the dynamics,” Pechet said.

#atomic, #austin, #california, #fifth-wall, #google-ventures, #homebound, #jack-abraham, #model, #proptech, #real-estate, #santa-rosa, #sound-ventures, #startup-company, #startups, #tampa, #thrive-capital

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The TechCrunch Survey of Tech Startup Hubs in England and Wales

TechCrunch is embarking on a major new project to survey European founders and investors in cities outside the major European capitals.

Over the next few weeks, we will ask entrepreneurs in these cities to talk about their ecosystems, in their own words. For this survey we are interested in startup hubs in England and Wales. (Scotland will follow, and Northern Ireland is here).

So this is your chance to put your cities on the Techcrunch Map!

We’re like to hear from founders and investors. We are particularly interested in hearing from diverse founders and investors. These are our humble suggestions for the cities we’d most like to hear from:

Birmingham
Brighton
Bristol & Bath
Cambridge
Cardiff
Liverpool
Manchester
Newcastle
Oxford
Reading and Thames valley
York

If you are a tech startup founder or investor in one of the above cities please fill out the survey form here.

The more founders/investors we hear from in a particular city, the more likely it is that city will be featured in TechCrunch.

This is the follow-up to the huge survey of investors (see also below) we’ve done over the last six or more months, largely in capital cities.

These formed part of a broader series of surveys we’re doing regularly for ExtraCrunch, our subscription service that unpacks key issues for startups and investors.

In the first wave of surveys, the cities we wrote about were largely capitals. You can see them listed here.

This time, we will be surveying founders and investors in Europe’s other cities to capture how European hubs are growing, from the perspective of the people on the ground.

We’d like to know how your city’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and generally how your city will evolve.

We leave submissions mostly unedited and are generally looking for at least one or two paragraphs in answers to the questions.

So if you are a tech startup founder or investor in one of these cities please fill out our survey form here.

Thank you for participating. If you have questions you can email mike@techcrunch.com and/or reply on Twitter to @mikebutcher.

#articles, #business, #economy, #entrepreneurship, #europe, #private-equity, #reading, #startup-company, #tc, #techcrunch, #verizon-media, #york

0

European tech event mainstays Shift and TOA find new homes, new models, post-COVID

Given the pandemic, huge changes are being wrought in tech events, something which used to be the lifeblood of the industry. Many a startup has pitched to win funding, and many a hackathon has formed teams that went on to greater things. It’s a sad fact that this era is over, at least until the pandemic has fully passed, but this could take some time. Two significant European events have now had to change in order to carry their brands into new realms.

European breakout success story Infobip (which has raised over $200 million) was born out of Croatia. And so was the seminal developer conference Shift. With Infobipo needing that engineering community, and Shift needing a more stable home in uncertain times, it seems only natural that Infobip would put developers front and center of their company strategy with the acquisition of Shift, and appointing its founder and CEO Ivan Burazinto the board as Chief Developer Experience Officer. Shift will now form the basis of Infobip’s all-new Developer Experience department.
 
As Burazin said: “The vision was always to become one of the largest developer conferences in the world, and also to strengthen Croatia’s connection to the world of software developers. So now with the backing of a Unicorn and the freedom to keep working on independently – the vision seems to have finally become possible.”

He says Shift won’t disappear, but will now expand globally, first to the US and then to Latin America and southeast Asia, initially in remote events.
 
Infobip CEO Silvio Kutić said: “Infobip is on a growth trajectory to expand rapidly into the B2C vertical, or more specifically Business-to-Developer (B2D) space. Having Ivan on board with his experience as the founder of Codeanywhere, a B2D SaaS company, and creator of Shift, the largest developer conference in the region, will be an asset to us going forward.”
  
Meanwhile, a key startup and founder/investor-oriented conference “Tech Open Air Berlin” is also changing.

Tech Open Air (TOA), was known for its technology and startup festival, which attracted upwards of 20,000 people in Berlin every summer, but it has now pivoted into a new brand: TOA Klub. This will now be a “cohort-based learning and doing platform.” The 4-6 weeks of online programs will be aimed at help professionals progress in the tech industry.

TOA Klub will offer Founders Klub (for founders learning to startup); Investors Klub (for newbie investors); Crypto Klub (a “crash course in the crypto field”); and Co-Creators Klub (for founders looking to pivot and grow).

The first confirmed mentors and speakers include Rolf Schrömgens (Founder, Trivago), Dominik Richter (Founder, HelloFresh) or Jeanette zu Fürstenberg (Founding Partner, La Famiglia VC).

Nikolas Woischnik, founder of TOA said: “The world will come out of this pandemic having digitally aged by decades, not years.  The complexity of our business environment has greatly accelerated. At TOA this gives our long-time mission of “making people, organizations and the planet futureproof” ever more purpose. With the launch of Klub, it is time for us to leverage technology to deliver on our mission in a more impactful and accessible way.”

I for one am glad these greats brands have found new homes, because I know the brands and the founders both carry huge respect in the European startup scene.

#articles, #berlin, #business, #ceo, #codeanywhere, #croatia, #europe, #founder, #hellofresh, #latin-america, #south-east-asia, #startup-company, #tc, #trivago, #united-states

0

Private chef parties at home startup Yhangry raises $1.5M Seed from VC angels and Ollie Locke

There’s an “uber for everything” these days and now there are “Ubers for personal chefs”. Just take a look at PopTop or 100 Pleats for instance. Now in London, there is Yhangry (which brands itself as the appropriately shouty YHANGRY). This is a “private chef parties at home” website, and no doubt an app at some point. The startup has now raised a $1.5 million Seed round from a number of notable UK angels which also includes a few UK VCs for good measure, as well as ‘Made In Chelsea’ TV star Ollie Locke.

Founders Heinin Zhang and Siddhi Mittal created the startup before the pandemic, which lets people order a made-to-measure dinner party online. Although it trundled along until Covid, it had to pivot into virtual chef classes during lockdowns last year and this. The company is now poised to take advantage of London’s unlocking, which will see legal outdoor and indoor dining return.

The startup also speaks to the decentralization of experiences going on in the wake of the pandemic. In 2019 we were working out in gyms and going to restaurants. In 2021 we are working out at home and bringing the restaurant to us.

Normally booking private dinner parties involves a lot of hassle. The idea here is that Yhangry makes the whole affair as easy to order as an Uber Eats or Deliveroo.

Investors in the Seed round include Carmen Rico (Blossom Capital), Eileen Burbidge (Passion Capital), Orson Stadler (Antler) and Martin Mignot (Index Ventures), Made In Chelsea star Ollie Locke, plus fellow tech founders including Jack Tang (Urban), Adnan Ebrahim (MindLabs), Alex Fitzgerald (Cuckoo Internet), Georgina Kirby (Vinehealth) and Deepali Nangia (Alma Angels). Yhangry’s statement said all the investors are also keen customers. I bet they are.

Co-founder Mittal said in a statement: “By making private chef experiences more accessible and affordable, our customers regularly tell us they are finally able to catch up with friends at home… 70% of our customers have never had a private chef before and for them, the freedom and flexibility to curate their own evening is priceless.”

Yhangry now has 130 chefs on its books. Chefs have to pass a cooking trial and adhere to Covid rules. The funding will be used to double the size of the startup’s team.

The menus start at £17pp for six people. The price of the booking covers everything, including the cost of the fresh ingredients, but customers can add extras, such as wine etc. Since its launch in December 2019, the firm says it has served more than 7,000 Londoners.

Yhangry says it will enter key European markets, such as Paris, Berlin, Lisbon and Barcelona.

How will Yhangry survive post-Covid, with restaurants/bars opening up again?

Mittal said: “When restaurants were open between our launch and March 2020, we saw demand because people want to be able to spend time with their friends in a relaxed setting, and aren’t limited to the two-hour slot you get in a restaurant. Once places start to open up again, we believe Yhangry will follow this trend of at-home dining and socializing – not to mention for people who are not ready yet to go out to a busy pub or restaurant.”

#articles, #barcelona, #berlin, #chef, #co-founder, #companies, #deliveroo, #economy, #eileen-burbidge, #europe, #lisbon, #london, #martin-mignot, #online-food-ordering, #paris, #passion-capital, #restaurant, #startup-company, #tc, #uber, #uber-eats, #united-kingdom

0

Norwegian corporate training startup Attensi raises $26M from NYC’s Lugard Road, DX Ventures

Corporate training startup Attensi — which originally emerged out of Oslo, Norway — has raised $26 million from New York-based Lugard Road Capital, DX Ventures (a VC fund backed by Delivery Hero), and existing shareholder Viking Venture. The new funding will be used to expand in North America and Europe.

Attensi uses a ‘gamified approach to corporate training, putting employees into 3D simulations of their workplace and work processes. Its competitors include companies like GoSkills, Mindflash SAP Litmos Skilljar.

With the pandemic shifting all office work to remote, digital training platforms like this stand to benefit.

This is also yet another recent example of how US VCs are ‘going hunting’ for startups in Europe, putting pressure on local VCs.

Attensi co-founder and co-CEO, Trond Aas said in a statement: “With gamified simulation training, we have combined the best of workplace psychology with our expertise in simulations and gamification to create a new category of training solutions.”

The company claims it’s experienced a 63% CAGR in annual recurring revenue. Its clients include Daimler Mercedes Benz, Circle K, Equinor, BCG, and ASDA.

Doug Friedman, a partner at Lugard Road Capital, said: “We could not be more excited to be investing in the Attensi team as they work to forever change and improve corporate learning and development through their Attensi solutions.”

#articles, #business, #companies, #daimler, #delivery-hero, #europe, #gamification, #gaming, #lugard-road-capital, #new-york, #north-america, #norway, #oslo, #partner, #sap, #simulation, #startup-company, #tc

0

How founders can avoid blind spots and make better decisions with EchoVC’s Eghosa Omoigui

Building and maintaining a successful startup requires founders to see the entire playing field. Without that clear view, founders risk missteps when it comes to hiring, raising funds, launching a product or making an acquisition.

Essentially, any big decision can end in disaster if a founder loses perspective or lacks self- and situational awareness.

Eghosa Omoigui, the founder and managing general partner of EchoVC Partners, a seed and early-stage venture capital firm that serves underrepresented founders and underserved markets, has helped entrepreneurs navigate the first steps of starting a company and laying the right foundation early on.

Omoigui, who was previously director of consumer internet and semantic technologies at Intel Capital, advocates for founders to develop their own All-22 tape — a tool used by professional football coaches that allows the viewer to see all 22 players on the field at the same time. It improves a coach’s line of sight and, most importantly, helps avoid missing a critical motion or player.

The concept of this tool can — and should — be applied in the startup world as well, Omoigui said during the virtual TC Early Stage event.

Omoigui explained what it means to have an All-22 tape and the steps founders should take to develop a skill set that will allow them to see and understand the playbook from all sides.


The big picture

Before getting into the steps, it’s important to understand what the aim is. The upshot? For founders to have the best and most complete view of their company, team, investors, product and competitors.

For founders, that means being able to zoom out and see each of their employees’ points of view and being inclusive. Without an All-22 tape, founders can mistakenly spend too much on engineering while ignoring the product rollout strategy or forget to communicate with employees outside of their bubble of interest. A company can become fragmented as more blind spots emerge, which can ultimately lead to oversights that damage its reputation, operations or even its ability to raise money from investors.

For operators and investors, what we see is usually very driven by where we stand, or where we sit. And what you have to discover really is: How can I get much better views? And the best view is always the plan view, you’re looking from the top down, you’re watching the movement, and you have line of sight, you know, that’s essentially 360 degrees. (Timestamp: 3:40)


Situational and self-awareness

#coach, #decision-making, #early-stage-2021, #eghosa-omoigui, #event-recap, #events, #executive-coach, #startup-company, #tc, #venture-capital

0

Putting Belfast on the TechCrunch map — TechCrunch’s European Cities Survey 2021

TechCrunch is embarking on a major new project to survey European founders and investors in cities outside the larger European capitals.

Over the next few weeks, we will ask entrepreneurs in these cities to talk about their ecosystems, in their own words.

This is your chance to put Belfast on the Techcrunch Map!

If you are a tech startup founder or investor in the city please fill out the survey form here.

This is the follow-up to the huge survey of investors (see also below) we’ve done over the last six or more months, largely in capital cities.

These formed part of a broader series of surveys we’re doing regularly for ExtraCrunch, our subscription service that unpacks key issues for startups and investors.

In the first wave of surveys, the cities we wrote about were largely capitals. You can see them listed here.

This time, we will be surveying founders and investors in Europe’s other cities to capture how European hubs are growing, from the perspective of the people on the ground.

We’d like to know how your city’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and generally how your city will evolve.

We leave submissions mostly unedited and are generally looking for at least one or two paragraphs in answers to the questions.

So if you are a tech startup founder or investor in one of these cities please fill out our survey form here.

Thank you for participating. If you have questions you can email mike@techcrunch.com and/or reply on Twitter to @mikebutcher.

#articles, #business, #economy, #entrepreneurship, #europe, #startup-company, #tc, #techcrunch, #verizon-media

0

Three ways VC firms can construct sustainably diverse portfolios

Venture capital has a diversity problem: Data show that Black and Latinx founders received just 2.6% of overall funding in 2020. Women-founded teams received nearly 30% less funding in 2020 than they did in 2019.

For decades, a close-knit community of brilliant but like-minded individuals built a system of pattern recognition. It produced high-growth companies with homogenous leadership teams. They called it meritocracy. Those of us who didn’t fit the profile were told, or were left to assume, that we didn’t have what it takes.

When a founder needs funding but investors don’t think they “have what it takes,” it can quickly become a self-fulfilling prophecy. No matter how good you are and how much product-market fit you achieve, at some point “what it takes” to scale a company is money.

Until recently, the lack of diversity in the ecosystem was largely an issue to those of us directly affected by it. It wasn’t until the groundbreaking #metoo and #BlackLivesMatter movements that the lack of funding for women and minorities became both evident — and evidently problematic — to the rest of the world.

I believe that underrepresented founders are the most undervalued asset class in the U.S. today, and investors are starting to realize that diversity is not charity — it’s economic opportunity.

Just look at the data on women-founded startups, which deliver 63% higher ROI (according to First Round Capital), generate twice as much revenue for every dollar invested (according to BCG), and take one full year less time to exit (according to PitchBook & AllRaise). Founders that have it harder, but persevere, lead to stronger companies with outsized results for their investors.

The good news is that recent events jolted many into action. A flurry of pledges, micro-funds and quick investments in support of Black founders arrived in the wake of George Floyd’s murder last summer. Overnight, these founders were heavily courted for meetings and speaking opportunities from people and firms they didn’t have access to in the past. Some secured investments and built new relationships that will help down the line. For many, the timing was off, and they didn’t benefit materially. In the end, the frenzy quieted down, and only 3% of 2020 VC deal volume went to Black-founded companies.

Ashlee Wisdom, the co-founder and CEO of digital health platform Health in Her HUE, experienced this firsthand.

“Last summer I was overwhelmed with inbounds from investors, which felt great at first,” she said. “But I was new to venture; I didn’t know how to build a strategy around fundraising, and most of those investors were looking for companies at a later stage than mine. No one I spoke to during that time seemed to be willing to invest in my pre-seed round despite our demonstrated traction. On the positive side, I met a lot of great investors who made meaningful introductions to pre-seed and early-stage funds. And some of those later-stage investors are now watching Health In Her HUE’s progress.”

It’s too soon to tell how sustainable the progress made last year will be. But we do have evidence from prior times that small, cosmetic efforts at diversity do not result in lasting change. Just take a look at what’s happened to VC funding for women recently.

In the aftermath of #metoo, investors and corporations were also spurred to act, with some success. For a while, VC investments in women-founded companies increased slowly but steadily. But once COVID hit, and investors retreated to their closest and most trusted referral networks, VC funding for women took a huge step backward. Crunchbase data show more than 800 female-founded startups globally received a total of $4.9 billion in venture funding in 2020, through mid-December, representing a 27% decrease over the same period the prior year.

The lesson is this: Efforts at the periphery of venture capital do not make a difference in the long run. The good news is many have started taking action. To achieve systemic, long-term improvements, VC firms will need to make changes to their core system, building diversity into the primary investing process itself. Results will not be visible immediately, but they will be far more sustainable and, as the data suggest, more profitable over the lifetime of these funds. Here are three specific actions VC firms can take to achieve this:

1. Hire BIPOC and women investors

A recent PitchBook report notes that female investors are twice as likely to invest in companies with female founders and three times as likely in companies with female CEOs. And yet fewer than 10% of all VC partners are women. According to BLCK VC, more than 80% of venture firms don’t have a single Black investor on their team. That makes it less surprising that only 1 percent of venture-funded startup founders are Black.

When you hire from the same communities you want to invest in, and ensure your new hires are set up for success, you unlock dealflow, relationships, and insights into new markets and customer sets. This results in a more diverse portfolio and a stronger investment team, one that serves its entire portfolio of companies better.

2. Measure the top of your funnel

Inputs lead to outputs. VC firms should do everything they can to foster stronger relationships with underrepresented founder communities to enable more diversity at the top of the deal flow funnel.

Partner, sponsor and invest in organizations like Female Founders Alliance, SoGal Foundation, Black Women Talk Tech and more. Go out of your way to attend events, ask for introductions, schedule casual coffee meetings and meet as many founders in those networks as you can — and foster those relationships meaningfully over time. This is how you seed decades of great dealflow.

3. Invest directly in emerging fund managers

There are hundreds of new funds, many of them with less than $50 million in assets under management, with direct access to pockets of talent that you are not currently seeing. These general partners have trusting, authentic relationships with founders who might be wary of mainstream VC. If you are a larger VC fund, you should be actively investing in them. Emerging managers can act as your scouts, and, in return, you will help build the ecosystem itself.

I believe that the lack of diversity in venture capital is a once-in-a-generation opportunity for those willing to make the earliest bets. If we invest in women at the same rate that we invest in men, this could boost the global economy by up to $5 trillion. That is a huge amount of return up for grabs. A homogenous portfolio misses that opportunity.

Most investors I know are aware of the opportunity and genuinely want to do better. The more urgency they feel, the more likely they are to spin up independent initiatives to address inequities directly. While these can be helpful, they’re also not sustainable. The best way to build a sustainably diverse portfolio is to do the slow, hard work of change from the inside out.

#column, #diversity, #diversity-and-inclusion, #entrepreneurship, #funding, #private-equity, #startup-company, #tc, #venture-capital

0

Put your city on the TC map — TechCrunch’s European Cities Survey 2021

TechCrunch is embarking on a major new project to survey European founders and investors in cities outside the larger European capitals.

Over the next few weeks, we will ask entrepreneurs in these cities to talk about their ecosystems, in their own words.

This is your chance to put your city on the Techcrunch Map!

This is the follow-up to the huge survey of investors (see also below) we’ve done over the last 6 or more months, largely in capital cities.

These formed part of a broader series of surveys we’re doing regularly for ExtraCrunch, our subscription service which unpacks key issues for startups and investors.

In the first wave of surveys (as you can see below) the cities we wrote about were largely capitals.

This time, we will be surveying founders and investors in Europe’s other cities to capture how European hubs are growing, from the perspective of the people on the ground.

We’d like to know how your city’s startup scene is evolving, how the tech sector is being impacted by COVID-19, and generally how your city will evolve.

We leave submissions mostly un-edited, and generally looking for at least one or two paragraphs in answers to the questions.

So if you are tech startup founder or investor in one of these cities please fill out our survey form here.

Austria: Graz, Linz
Belgium: Antwerp
Croatia: Zagreb, Osjek
Czech Republic: Brno, Ostrava, Plzen
England: Bristol, Cambridge, Oxford, Manchester
Estonia: Tartu
France: Toulouse, Lyon, Lille
Germany: Hamburg, Munich, Cologne, Bielefeld, Frankfurt
Greece: Thessaloniki
Ireland: Cork
Israel: Jerusalem
Italy: Trieste, Bologna, Turin, Florence, Milan
Netherlands: Delft, Eindhoven, Rotterdam, Utrecht
Northern Ireland: Belfast, Derry
Poland: Gdańsk, Wroclaw, Krakow, Poznan
Portugal: Porto, Braga
Romania: Cluj, Lasi, Timisoara, Oradea, Brasov
Scotland: Edinburgh, Glasgow
Spain: Valencia
Sweden: Malmo
Switzerland: Geneva, Lausanne

Thank you for participating. If you have questions you can email mike@techcrunch.com and/or reply on Twitter to @mikebutcher

Here are the cities that previously participated in The Great TechCrunch Survey of Europe’s VCs:

Amsterdam/Netherlands

Athens/Greece

Berlin/Germany

Brussels/Belgium

Bucharest/Romania

Copenhagen/Denmark

Dublin/Ireland

Helsinki/Finland

Lisbon/Portugal

London/UK

Madrid & Barcelona/Spain (Part 1 & Part 2)

Oslo/Norway

Paris/France

Prague/Czech Republic

Rome, Milan/Italy

Stockholm/Sweden

Tel Aviv/Israel

Vienna/Austria

Warsaw/Poland (Part 1 & Part 2)

Zurich/Switzerland

#articles, #austria, #bristol, #business, #cambridge, #cologne, #economy, #edinburgh, #entrepreneurship, #europe, #florence, #hamburg, #munich, #oxford, #startup-company, #tc, #techcrunch, #trieste, #verizon-media

0

Breaking up big tech would be a mistake

It seems safe to say that our honeymoon with big tech is officially over.

After years of questionable data-handling procedures, arbitrary content management policies and outright anti-competitive practices, it is only fair that we take a moment to rethink our relationship with the industry.

Sadly, most of the ideas that have gathered mainstream attention — such as the calls to break up big tech — have been knee-jerk responses that smack more of retributionist fantasies than sound economic thinking.

Instead of chasing sensationalist non-starters and zero-sum solutions, we should be focused on ensuring that big tech grows better as it grows bigger by establishing a level playing field for startups’ and competitors’ proprietary digital markets.

We can find inspiration on how to do just that by taking a look at how 20th-century lawmakers reined in the railroad monopolies, which similarly turned from darlings of industry to destructive forces of stagnation.

We’ve been here before

More than a century ago, a familiar story of a nation coming to terms with the unanticipated effects of technological disruption was unfolding across a rapidly industrializing United States.

While the first full-scale steam locomotive debuted in 1804, it took until 1868 for more powerful and cargo-friendly American-style locomotives to be introduced.

The more efficient and cargo-friendly locomotives caught on like wildfire, and soon steel and iron pierced through mountains and leaped over gushing rivers to connect Americans from coast to coast.

Soon, railroad mileage tripled and a whopping 77% of all intercity traffic and 98% of passenger business would be running on rails, ushering in an era of cost-efficient transcontinental travel that would recast the economic fortunes of the entire country.

As is often the case with disruptive technologies, early success would come with a heavy human cost.

From the very beginning, abuse and exploitation ran rampant in the railroad industry, with up to 3% of the labor force suffering injuries or dying during the course of an average year.

Railroad trust owners soon became key constituents of the widely maligned group of businessmen colloquially known as robber barons, whose corporations devoured everything in their path and made life difficult for competitors and new entrants in particular.

The railroad proprietors achieved this by maintaining carefully constructed walled gardens, allowing them to run competitors into the ground by means of extortion, exclusion and everything in between.

While these methods proved wildly successful for railroad owners, the rest of society languished under stifled competition and an utter lack of concern for consumers’ interests.

Everything old is new again

Learning from past experiences certainly doesn’t seem to be humankind’s strong suit.

In fact, most of our concerns with the tech industry are mirror images of the objections 20th-century Americans had against the railroad trusts.

Similar to the robber barons, Alphabet, Amazon, Apple, Facebook, Twitter, et al., have come to dominate the major thoroughfares of trade in a fashion that leaves little space for competitors and startups.

By instating double-digit platform fees, establishing strict limitations on payment processing protocols, and jealously hoarding proprietary data and APIs, big tech has erected artificial barriers to entry that make replicating their success all but impossible.

Over the past years, tech giants have also taken to cannibalizing third-party solutions by providing private-label versions — à la AmazonBasics — to the point where big tech’s clients are finding themselves undercut and outplayed by the platform-holders themselves.

Given the above, it is not surprising that the pace at which tech startups are created in the US has been declining for years.

In fact, VC veterans such as Albert Wenger have called attention to the “kill zone” around big tech for years, and if we are to reinvigorate the competitive fringe around our large tech conglomerates, something has to be done fast.

Why we need to stop talking about breaking up big tech

The 20th-century playbook for taming monopolistic railroad trusts offers several helpful lessons for dealing with big tech.

For first steps, Congress created the Interstate Commerce Commission (ICC) in 1887 and tasked it with administering reasonable and just rates for access to proprietary railroad networks.

Due to partisan politicking, the ICC proved relatively toothless, however. It wasn’t until Congress passed the 1906 Hepburn Act, which separated the function of transportation from the ownership of the goods being shipped, that we started seeing true progress.

By disallowing self-dealing and double-dipping in proprietary platforms, Congress succeeded in opening up access on equal terms both to existing competitors and startups alike, making a once-unnavigable thicket of exploitative practices into the metallic backbone of American prosperity that we know today.

This could never have been achieved by simply breaking the railroad trusts into smaller pieces.

In fact, when it comes to platforms and networks, bigger often is better for everyone involved thanks to network effects and several other factors that conspire against smaller platforms.

Most importantly, when access and interoperability rules are done right, bigger platforms can sustain wider and wider constellations of startups and third parties, helping us grow our economic pie instead of shrinking it.

Making digital markets work for startups

In our post-pandemic economy, our attention should be in helping tech platforms grow better as they grow bigger instead of cutting them down to size.

Ensuring that startups and competitors can access these platforms on equitable terms and at fair prices is a necessary first step.

There are numerous other tangible actions policymakers can take today. For example, rewriting the rules on data portability, pushing for wider standardization and interoperability across platforms, and reintroducing net neutrality would go a long way in addressing what ails the industry today.

With President Joe Biden’s recent nod toward “Amazon’s Antitrust Antagonist” Lina Khan as the next commissioner of the Federal Trade Commission, these changes suddenly seem more likely than ever.

In the end, all of us would stand to benefit from a robust fringe of startups and competitors that thrive on the shoulders of giants and the platforms they have made.

#antitrust, #column, #congress, #federal-trade-commission, #opinion, #policy, #private-equity, #startup-company, #technology

0

Kaya VC launches its new $80M fund, focusing on Prague, Warsaw and the CEE region

Kaya VC’s new €72 million ($80m) fund will focus on startups in Prague, Warsaw and the wider CEE region. Previously called Enern, the Central and Eastern European VC — which, historically, started out investing in wind-farms and ended up invested in software — has changed its name to better reflect its modern focus. The firm will also back startups “at any stage” of funding. LPs in the fund include the EIF and a number of successful entrepreneurs from the region.

This is the team’s fourth fund, and together with the previous funds, the AUM is around €250m. The fund has invested in 27 companies with the latest investments into B2B marketplaces, healthtech and blockchain. 

The decade-old Prague-based VC (“KAYA” will be the official naming format) has previously invested in Booksy (raised $70 million in January 2021), Twisto (€16 million this year), DocPlanner (€80m in 2019), and Rohlik ($230m this year). Kaya previously participated in liquidity events for Skype, Wise (formerly TransferWise) and Bolt, UiPath which recently raised $750 million at a $35 billion valuation ahead of an IPO.

Kaya says it will be sector agnostic, with partners following some personal passions: Tomas Obrtac on agri-tech; Pavel Mucha on next-generation consumer experiences; Tomas Pacinda on fintech, and Martin Rajcan focuses on energy transition. All other areas of tech will be looked at. Similar to funds such as Point Nine in Berlin, Kaya says it is an ‘equal partnership’ meaning each partner can make decisions on what to back.

The firm plans to be able to write the first cheque and is also backing super-early ‘studio projects’ which have gone on to raise subsequent funding rounds.

Pavel Mucha, partner at Kaya VC, commented in a statement: “When I initially started investing in local startups in Prague and Warsaw, it was because there was a need to work with people to build something valuable that didn’t exist already. Over the past 10 years, we’ve seen this sector grow and mature, and with that our strategy of backing intrepid founders who are making a difference from Booksy’s Stefan Batory to Rohlik’s Tomáš Čupr.”

Kaya is also part of the Included VC, network, a mentor network for underrepresented groups such as women and people of color. Mucha told me: “We’ve hired through their program, been closely involved and big supporters. We think it’s a great addition to the ecosystem within Europe, and hope to do more. It’s definitely a very meaningful initiative we stand fully behind.”

Martin Rajcan, partner at Kaya VC, added: “Founders coming out of Central and Eastern Europe are globally-orientated, have strong technical skills, and an unmatched hunger for success. It’s these strong fundamentals paired with a next-level intensity that makes them so exciting to work with and we want to support such talent in any way we can. With partners, venture partners, advisors, and scouts across Europe, we’re in a unique position to support founders in the diaspora outside of core cities such as Prague and Warsaw.” 

In Turkish the word Kaya means ‘rock’, in Japanese, it’s ‘sanctuary’. Whatever the case, Kaya is in a good position to take advantage of the burgeoning startups in the CEE region. According to Dealroom there has been 5x more foreign investment in the CEE region than in 2015.

#advisors, #berlin, #central-europe, #eastern-europe, #entrepreneurship, #europe, #point-nine, #prague, #private-equity, #startup-company, #tc, #warsaw

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Atlanta’s early stage investment renaissance continues with Overline’s $27 million fund close

Michael Cohn became a celebrity in the Atlanta startup ecosystem when the company he co-founded was sold to Accenture in a deal valued somewhere between $350 million and $400 million nearly six years ago.

That same year, Sean O’Brien also made waves in the community when he helped shepherd the sale of the  collaboration software vendor, PGi, to a private equity firm for $1.5 billion.

The two men are now looking to become fixtures in the city’s burgeoning new tech community with the close of their seed-stage venture capital firm’s first fund, a $27.4 million investment vehicle.

Overline’s first fund has already made commitments to companies that are expanding the parameters of what’s investible in the Southeast broadly and Atlanta’s startup scene locally.

These are companies like Grubbly Farms, which sells insect-based chicken feed for backyard farmers, or Kayhan Space, which is aiming to be the air traffic control service for the space industry. Others, like Padsplit, an Atlanta-based flexible housing marketplace, are tackling America’s low income housing crisis. 

“Our business model is very different from that of a traditional software startup, and the Overline team’s unique strengths and operator mindset have been invaluable in helping us grow the company,” said Sean Warner, CEO and co-founder of Grubbly Farms. 

That’s on top of investments into companies building on Atlanta’s natural strengths as a financial services, payments and business software powerhouse.

For all of the activity in Atlanta these days, the city and the broader southeastern region is still massively underfunded, according to O’brien and Cohn. The region only received less than 10 percent of all the institutional venture investments that were committed in 2020. Indeed, only seven percent of Atlanta founders raise money locally when they’re first starting out, an Overline survey suggested.

“The data reflects what we have seen throughout our careers building, growing, and investing in startups. There is no shortage of phenomenal founders and businesses coming out of Atlanta and the Southeast, but they often struggle to find institutional capital at their earliest stages,” said O’Brien, in a statement. “Overline will lead as the first institutional check for these companies and be a true partner to the Founders throughout their lifecycle—supporting them on the strategic and operational business initiatives and decisions that are critical to a company’s success.” 

The limited partners in Overline’s first fund also reflects the firm’s emphasis on regional roots. The privately held email marketing behemoth Mailchimp anchored the fund, which also included partners like Cox Enterprises, Social Leverage,

Overline is supported by a bench of impressive partners that reflects the firm’s roots in the Southeast. Anchored by marketing platform, Mailchimp, additional partners include Cox Enterprises, Scottsdale, Ariz.-based Social Leverage, Wilmington, Del.-based Hallett Capital, and Atlanta Tech Village founder David Cummings, along with Techstars co-founder David Cohen. 

“At Mailchimp, we love our hometown of Atlanta, and are proud of the robust startup ecosystem that’s growing in our city. The Overline founding team’s vision of deploying smart, local capital into startups in Atlanta and the Southeast aligns with our goals of promoting and advancing local innovation,” said Rick Lynch, CFO, Mailchimp, in a statement.

The firm expects to make investments of between $250,000 to $1.5 million into seed stage companies and has already backed 11 companies including, Relay Payments, a logistics fintech company that has raised over $40 million from top-tier investors. 

“When we set out to build Atlanta Tech Village almost a decade ago, one of our primary goals was to help Atlanta develop into a top 10 startup city, where all entrepreneurs would thrive. We’re making tremendous strides as a community, as evidenced by the number of newly minted unicorns,” said serial entrepreneur and Atlanta Tech Village founder David Cummings. “I believe in Overline’s thesis that value-add institutional early-stage capital is critical to the ecosystem’s continued development. Since the early days, Michael and Sean have been an active presence in our community in a way that goes far beyond being a source of capital—as mentors, advisors, and champions of Atlanta founders. I am proud to be one of their first investors.”

#accenture, #advisors, #america, #arizona, #atlanta, #cfo, #co-founder, #collaboration-software, #corporate-finance, #cox-enterprises, #david-cohen, #delaware, #economy, #entrepreneurship, #finance, #financial-services, #mailchimp, #money, #private-equity, #serial-entrepreneur, #social-leverage, #startup-company, #tc, #techstars, #venture-capital

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How VC and private equity funds can launch portfolio-acceleration platforms

I’ve recently advised a number of emerging venture capital funds that are struggling to determine the most effective steps they can take to support their portfolio companies.

Almost every private equity and venture capital investor now advertises that they have a platform to support their portfolio companies. The popularity of the model can be judged by the fact that the U.S. VC Platform community has grown approximately 120 percent in the last three years. Similarly, its European counterpart, the EU VC Platform, has tripled in the same period.

However, most of us don’t have the budget of an Andreessen Horowitz to support almost every major need of emerging companies. You could spend an unlimited budget on all possible company-building resources. “You can’t pick a platform strategy that’s unique, but you can pick a platform strategy that your firm can uniquely execute,” noted Maria Palma of REE Ventures.

I propose here a framework for prioritizing your platform buildout. Once you have assembled the right core team, I recommend prioritizing as follows:

First, meet with your portfolio company management. As an agenda for each meeting, I suggest:

  •  How can we most add value, in addition to helping with financing? (This is an open-ended query and the most important question.)
  • What are your fundraising goals?
  • What is the profile of people whom you are most interested in meeting?
  • From which service providers have you received the most value?

In a presentation at the 4th Annual VC Platform Summit, Nick Kim, Crosscut Ventures’ head of platform, shared their platform development methodology, which he viewed as an exercise in product development.

“Firms should match services to the stage-specific needs of companies,” Dan Kozikowski, partner and head of platform for FirstMark Capital, told me. “For example, recruiting writ large is useful at all stages of development. But things like vendor introductions are only needle-movers at the earliest stages. Similarly, customer introductions are invaluable in the early days, but become less valuable once a company has a fully formed go-to-market function.”

Then, pluck the low-hanging fruit: easy, low-cost, and highly scalable infrastructure. This typically includes:

  • Relationships with relevant service providers in your vertical, often with pre-negotiated discounts: coaches, lawyers, accountants, common software vendors, consultants. Generally, I suggest exploring BuiltFirst, Clutch, FundedBuy, Rocketplace and/or SpotSource. For negotiation with providers, consider Buyer. Alpaca VC shares their Master Agency List.
  • A well-organized library of best practices for founders in your vertical, which you can share as appropriate. First Search, Startup School and OneValley Passport are examples of comprehensive founder resources from investors. Ask Anything aggregates resources from all the VCs. I have developed a founder curriculum on my blog.
  • Relationships with venture partners, entrepreneurs in residence and other non-salaried personnel who can help your companies. Explore a roadmap of your options in working with outside talent.
  • Organize events in your vertical. Particularly when events are all-virtual, this is an easy and low-cost way to build trusted relationships with the leaders in your space.

I recommend building a strong internal tech stack to handle the deluge of requests for help you’ll get from companies as you scale. “The biggest investment of resources with our tech platform relates to the capturing and maintenance of data on our huge portfolio of 1,100-plus evolving tech companies,” Jeff Pomeranz, partner at Right Side Capital, said.

“For instance, tracking ‘months-of-runway’ combined with the month-over-month change to that metric allows us to rapidly identify companies that may be distressed. Adding full lifecycle data and industry exposure tags to that, across such a large number of companies, often enables us to see trends ahead of the market, such as retail decimation a few years ago.” Investigate ways to use technology and analytics to make better investments.

Beyond these steps, I suggest you apply a two-part test:

#column, #ec-column, #ec-how-to, #entrepreneurship, #private-equity, #startup-company, #startup-school, #tc, #venture-capital-funds

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To rebuild manufacturing, the US needs to beef up the Small Business Innovation Research program

I grew up in poverty in upstate New York, but I was lucky enough to study engineering at Rensselaer Polytechnic Institute. I founded a company that went public when I was 28, and I used that wealth to invest in startups.

It’s been exhilarating to watch many founders flourish, but when I return to upstate New York, the desolate remains of long-closed factories remind me of the sectors that the tech revolution never reached.

The numbers behind those empty facades could not be more dire. In late 2019, even before COVID struck, U.S. manufacturing fell to 11% of GDP, the lowest level in 72 years. We ceded much of that ground to low-cost competitors in China, which became the world’s top manufacturer back in 2011. We now have only a small window of time to restore manufacturing as a foundation of American prosperity, and a remarkable but underappreciated federal program has a big role to play.

My firm, SOSV, specializes in running programs that help founders take technically difficult ideas from research to product. Many of these companies represent the future of American industry, especially when it comes to such national priorities as industrial automation and decarbonization.

You might think those startups would be ripe for venture investment, but in reality, only a fraction of venture capital flows to them. They are simply too risky compared with categories like SaaS and consumer.

SBIR’s brilliant design has helped thousands of technology-minded entrepreneurs cross the chasm from research to real products, new markets and venture backing.

That is exactly why in 1982 the U.S. Congress established the Small Business Innovation Research (SBIR) program, which, in the words of its founder, Roland Tibbetts, aimed to “provide funding for some of the best early-stage innovation ideas — ideas that, however promising, are still too high risk for private investors, including venture capital firms.”

For a little more than $3 billion per year in contracts and grants disbursed by federal agencies, the SBIR has produced 70,000 patents, $41 billion in follow-on venture capital investments and 700 public companies.

SBIR’s brilliant design has helped thousands of technology-minded entrepreneurs cross the chasm from research to real products, new markets and venture backing. We’ll need thousands more brilliant scientists, technologists and entrepreneurs to step up in the decade ahead. They can do this from their garage, but they can’t do it out of thin air. Congress should act quickly to create an “SBIR 2.0” with three critical improvements over how SBIR works today.

First, we need at least 10 times more SBIR funding. Even at $30 billion, SBIR’s funding would be a rounding error compared to many budgets in Washington, like $693 billion for defense in 2020, and just a fraction of total U.S. venture investing, which in 2020 reached $156 billion. Yet, arguably, nothing in the federal budget could do more to help American industry.

Second, we need to focus new SBIR funding on critical strategic areas, especially decarbonization and advanced manufacturing. The first will save humanity’s future on this planet. The second will help us leap over our missed generation of manufacturing investment to establish leads in critical areas, including robotics, battery technology, artificially intelligent devices and additive manufacturing. Who could ask for better markets?

Finally, the review and reward process needs to be fast. One great example is the innovative U.S. Air Force “pitch day” programs in 2019 and 2020, which granted funds to the best founder pitches (carefully pre-qualified) in a matter of minutes. In our almost frictionless market for talent, long waits to deliberate and disburse funds is not a winning approach.

The Biden administration’s late-February issuance of an executive order on America’s supply chains suggests that the White House is already working hard on policy measures. No doubt the administration’s effort will draw on many approaches, but the key must be a relentless focus on America’s primary unspent fuel: the ingenuity and drive of our people.

We will only pull the depressed regions of this country out of poverty by giving them the tools to, with their own hands, rebuild American manufacturing through entrepreneurship.

Editor’s note: Former TechCrunch COO Ned Desmond is now senior operating partner at SOSV.

#column, #manufacturing, #opinion, #sbir, #small-business-innovation-research, #startup-company, #venture-capital, #washington

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Startups book an expo booth at TC Sessions: Mobility 2021 to double down on connection and exposure

When it comes to fast-moving technology, mobility zooms ahead of the pack — both literally and figuratively. Early-stage startup founders and investors need to keep their fingers on the sector’s very rapid pulse and the best place to do that is, you guessed it, TC Sessions: Mobility 2021 on June 9.

If you’re eager to introduce your early-stage startup to the top leaders, investors, experts and policy makers across the mobility tech community, don’t just attend TC Sessions: Mobility — exhibit there. Double down on essential exposure and increase your opportunities.

Budget-friendly tip: The early-bird price remains active until May 5 at 11:59 pm (PST). Buy your Startup Exhibitor Package before the deadline hits and save 35 percent.

Talk about a rapt audience. One big reason people attend the show is to see and meet exciting, innovative new startups. A Startup Exhibitor Package lets you showcase your tech, build your network and expand your opportunities for growth and success. Here’s what your package includes (Note: They’re available only to pre-Series A, early-stage startups).

  • Virtual booth space: Display your pitch deck, host a video display and demo your products.
  • Lead generation: Track booth visitors for easy post-show follow-up.
  • Event passes: The package price includes four passes to TC Sessions: Mobility. Bring your team and increase your networking opportunities.
  • Full event access: You can tune in to all presentations on every stage.
  • Video on-demand: No FOMO for you. You’ll have VOD access to all presentations after the show ends.
  • Breakout sessions: Don’t miss these presentations, each with a special focus.
  • Networking: Whether you connect on the fly using the virtual platform’s chat feature or find specific people and schedule meetings using CrunchMatch, our AI-powered networking platform, you’ll make connections to drive your mobile business forward.

Keeping with the networking theme, this is how Karin Maake, senior director of communications at FlashParking, described her experience.

“TC Sessions: Mobility isn’t just an educational opportunity, it’s a real networking opportunity. Everyone was passionate and open to creating pilot programs or other partnerships. That was the most exciting part. And now — thanks to a conference connection — we’re talking with Goodyear’s Innovation Lab.”

Don’t miss your chance to sashay your superior stuff in front of the mobility industry’s leading mover, shakers and makers. Buy a Startup Exhibitor Package now, save 35 percent and get ready for TC Sessions Mobility 2021.

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

#artificial-intelligence, #automotive, #business-incubators, #entrepreneurship, #flashparking, #mobility, #private-equity, #startup-company, #startups, #tc-sessions-mobility-2021

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Planting seed investments on tech’s frontiers nets KdT Ventures $50 million for its latest fund

Like other venture investors over the past year, Cain McClary, co-founder of the investment firm KdT Ventures, recently made the jump to Austin. But unlike the rest of them, he was coming from Black Mountain, NC.

McClary had spent the better part of the last three years with his co-founder Mack Healy building out a portfolio that would be the envy of almost any investor looking at financing startups whose businesses depend on innovations at the borders of current technological achievement.

Since 2017, when the firm closed on the first $3.5 million of what ended up being a $15 million fund (they had targeted $30 million), McClary and Healy managed to find their way onto the cap table of businesses like the green chemicals manufacturer, Solugen; health diagnostics technology developer, PathAI; the Nigerian genetic dataset developer, 54Gene; the novel biomaterials developer, Checkerspot; and the genetics-focused therapy company, Dyno Therapeutics. 

That portfolio — and the subsequent top decile performance that Cambridge Associates has said comes with it — has allowed McClary and Healy to close on an oversubscribed $50 million new fund to invest in promising startup companies.

KdT co-founders Cain McClary and Mack Healy. Image Credit: KdT Ventures

Hailing from a small Tennessee town outside of Leipers Fork (itself a small Tennessee town) McClary studied medicine at Tulane and business at Stanford where he linked up with Healy through a mutual friend.

Healy, who had done stints throughout big Bay Area startups like Airbnb, Databricks, and Facebook brought the software expertise (and some capital to stake the firm) while McClary provided the life sciences know-how.

Together the two men set out to hang their investment shingle at the intersection of software and life sciences that was proving to be fertile ground for new business creation. Each company in the firm’s portfolio depends on both the advances in understanding how to code computers and living cells.

McClary had left California for personal reasons when he launched the fund in 2017 and in 2020 relocated to Austin for professional ones. Healy had already set up shop in the city and it was easier, McClary said to fly out to San Francisco to look for companies from the Austin airport than it was from Ashville.

Also, both men were placing big bets on the Dell Medical School at the University of Texas to become the breeding ground for the type of entrepreneurs that the firm is looking to back.

Mack was there… the Dell Medical School and we think it’s going to be produce the types of entrpereneurs that we want to support. Houston has a med system. I firmly believe that texas has a place at the table in the future 

“The way that we define it is that we like to invest in the physical layer of the world,” said McClary. “That includes not only medicine, but chemicals and agriculture. All of that is driven by some of the things that we have this sourcecode for the physical world.”

Mapping the unmapped corners of the frontier tech startup world means that the firm not only has a presence in Austin, but has hired principals to scour Houston and Research Triangle Park in North Carolina for hot deals.

That doesn’t mean the firm is forsaking California though. One of the most recent deals in the KdT portfolio is Andes Ag, an Emeryville, Calif.-based startup that’s applying yield-boosting microbes directly to seeds in an effort to improve crop performance for farmers.

“The KdT team speaks the language of science, making them an outlier in this area of venture investing,” said JD Montgomery of Canterbury Consulting, a limited partner in KdT’s first and second fund. “They are passionate about building the science companies of the future that will tackle some of the significant challenges our world faces in the next decade and beyond.”

#54gene, #airbnb, #austin, #california, #cambridge-associates, #chemicals, #co-founder, #corporate-finance, #databricks, #dell, #economy, #entrepreneurship, #facebook, #finance, #fork, #houston, #money, #north-carolina, #partner, #pathai, #private-equity, #san-francisco, #solugen, #stanford, #startup-company, #tc, #texas, #tulane, #university-of-texas, #venture-capital

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Waterfund commits $50M to OurCrowd’s water and agtech portfolio

Waterfund, an investment and trading firm that specializes in acquiring and managing water-related infrastructure assets, today announced a deal with Israel-based crowdfunding platform OurCrowd that will see the Waterfund team commit $50 million to build a water- and agtech-focused portfolio of 15 companies. The first of these investments is in Plenty, a well-funded vertical farming startup.

In addition to these direct investments, the two companies are also working together on a new water-focused platform called Aquantos, which aims to issue so-called Blue Bonds and other financial products related to the water industry. Comparable to Green Bonds that focus on projects with environmental benefits — and which have been around for more than a decade now — Blue Bonds are still a new idea and focus on projects that could benefit the oceans.

“We are working to issue Blue Bonds that can be both climate bonds-certified and backed by sovereign or sub-sovereign borrowers,” said Waterfund CEO Scott Rickards. “This new financial tool and others are being designed to enable water projects in the Middle East to acquire leading technologies to address water scarcity in a fundamentally new way.”

Rickards argues that a lack of private capital has held back innovation in the water sector and that this new partnership — and the equity and debt financing opportunities it brings with it — will help change this.

OurCrowd, meanwhile, currently has about $1.5 billion in committed funding and has made investments in about 250 companies across its 25 funds. Among the companies the platform has invested in are the likes of Lemonade, Jump Bikes and Beyond Meat. Its portfolio also includes a number of existing agtech startups and last November, OurCrowd partnered with Sprout Agritech (a company in its portfolio) to run a new agtech accelerator in New Zealand.

“The Abraham Accords present a huge opportunity to bring new water and agricultural technology to the water scarcity challenges of the entire Middle East,” said OurCrowd founder and CEO Jon Medved. “Alongside Waterfund, it is our mission to invest in and help build game-changing technology companies. We are excited to be working together with Waterfund to drive more private capital to address the critical challenges of water.”

#agtech, #articles, #beyond-meat, #ceo, #finance, #jon-medved, #middle-east, #new-zealand, #ourcrowd, #startup-company, #tc

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Secureframe raises $18M Series A to simplify cybersecurity compliance

Security compliance may not be the hottest conversation starter, but it’s a critical and often grueling process that companies have to endure every year to show that their security practices are up to par. It’s a burden that bogs down startups more than others, and so it’s fitting that startups are trying to find a better way.

Enter security compliance startup Secureframe, founded by Shrav Mehta and Natasja Nielsen, which thinks it has.

The company is announcing it has raised $18 million at Series A, led by Kleiner Perkins and with participation from Gradient Ventures and Base10 Partners, which led its $4.5 million seed round less than a year after it was founded in January 2020.

Secureframe helps businesses maintain two key cybersecurity certifications, SOC 2 and ISO 27001, which many companies require before they will do business. Secureframe’s compliance platform integrates with dozens of the most used cloud providers and apps to understand its customers’ security posture. The benefit, the company says, is that it can help companies get their certifications and become compliant in weeks, rather than months.

Shrav Mehta, the company’s founder and chief executive, told TechCrunch that it’s paying off, with a tenfold increase in revenue growth over the six months alone, and with over a hundred new customers, like software house Hasura and Omni, a Y Combinator graduate from the summer 2020 batch.

Mehta said the fresh funding round will help the company grow beyond the two certifications into an enterprise-grade risk and compliance management platform, such as the U.S. health privacy rules like HIPAA, and PCI compliance for secure card processing.

In the long term, Mehta said, he wants the company to design and offer its own compliance certifications.

In remarks, Kleiner Perkins’s Josh Coyne said Secureframe is leading the effort to modernize security compliance. “Secureframe is turning the industry on its head by automating compliance certifications end-to-end, serving as the single source of truth for commercial compliance,” he said.

#articles, #base10-partners, #computing, #economy, #gradient-ventures, #hasura, #kleiner-perkins, #regulatory-compliance, #secureframe, #security, #startup-company, #united-states, #y-combinator

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Investors Clara Brenner, Quin Garcia and Rachel Holt are coming to TC Sessions: Mobility 2021

The transportation industry is abuzz with upstarts, legacy automakers, suppliers and tech companies working on automated vehicle technology, digital platforms, electrification and robotics. Then there are shared mobility companies from cars to scooters and mopeds to ebikes. And who can forget the emerging air taxi companies?

At the center of this evolving industry are the investors. Simply put: TechCrunch can’t hold an event on mobility without hearing from the people who are hunting for the best opportunities in the industry and tracking all of its changes. That’s why we’re happy to announce investors Clara Brenner of Urban Innovation Fund, Quin Garcia of Autotech Ventures and Rachel Holt of Construct Capital will join us on our virtual stage at TC Sessions: Mobility 2021. The virtual event, which features the best and brightest minds in the world of mobility, will be held on June 9.

p.s. Early Bird tickets to the show are now available – book today and save 35% before prices go up.

Brenner, Garcia and Holt will come on stage to discuss their near and long-term investment strategies, overlooked opportunities, and challenges that face startups trying to break into the transportation sector. They’ll lean on their considerable experience to provide the advice and insight that will help attendees understand the state of the industry and where it is headed.

Brenner is a serial co-founder. She is co-founder and managing partner of the Urban Innovation Fund, a venture capital firm that provides seed capital and regulatory support to entrepreneurs solving urban challenges. Urban Innovation Fund has backed curbflow, Electriphi and Kyte among others. She also co-founded Tumml, a startup hub for urban tech that provided 38 startups with seed funding and mentorship, and hosts events around urban innovation. In 2014, Forbes listed her as one of its “30 Under 30” for Social Entrepreneurship.

Garcia, a lifelong ‘car guy’ with an MS degree in management science and automotive engineering from Stanford University, is managing director at Autotech Ventures. He’s also a board director, board observer and advisory board member to a number of mobility companies including Lyft, Peloton Technology, and Connected Signals.

Garcia has been on the ground floor of startups, notably as part of the initial team at the electric vehicle infrastructure startup Better Place, where he was responsible for partnerships with automakers and parts suppliers while living in Israel, Japan and China.

Holt is co-founder and Managing Partner of early-stage venture firm Construct Capital, which is focused on finding founders that are trying to change foundational industries such as manufacturing and supply chain, logistics and transportation. The company’s transportation-focused investments include ChargeLab. Holt also sits on the board of MotoRefi.

Prior to Construct, Holt was at Uber, where she was one of the company’s first 30 employees. During her 8.5-year stint at Uber, Holt rose through the ranks of the company, including roles running the U.S.  and Canada “Rides” business as well as global marketing and customer support. She was a longtime member of the company’s executive leadership team. Her last position at Uber was leading the company’s new mobility organization, which focused on its e-bike and scooter businesses as well as running its incubator, which funded and developed new products and services.

Rachel began her career at Bain & Company, advising companies in the private equity, financial services and healthcare industries. She was ranked No. 9 on Fortune’s 40 under 40 and was named by Fast Company as One of the Most Creative People in Business.

We can’t wait to hear from this investor panel at TC Sessions: Mobility on June 9. Make sure to grab your Early Bird pass before May 6 to save 35% on tickets and join the fun!

#articles, #automotive, #autotech-ventures, #better-place, #board-member, #business, #canada, #china, #clara-brenner, #construct-capital, #e-bike, #economy, #entrepreneurship, #events, #executive, #fast-company, #financial-services, #forbes, #innovation, #israel, #japan, #lyft, #manufacturing, #motorefi, #peloton-technology, #private-equity, #quin-garcia, #rachel-holt, #stanford-university, #startup-company, #supply-chain, #tc, #tc-sessions-mobility, #techcrunch, #transportation, #uber, #united-states, #urban-innovation-fund, #venture-capital

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How nontechnical talent can break into deep tech

In a recent article, I shared more about how deep tech companies can hire growth talent. Here, I explore the other side: how nontechnical talent can build relationships with deep tech companies.

Startup hiring processes can be opaque, and breaking into the deep tech world as a nontechnical person seems daunting. As someone with no initial research background wanting to work in biotech, I felt this challenge personally. In the past year, I landed several opportunities working for and with deep tech companies.

Here, I’ll share what I’ve learned and offer tactical advice for finding, reaching out to, cultivating relationships with and working at deep tech companies as a nontechnical candidate.

To find these companies, create news alerts to be notified when companies in deep tech raise new rounds of funding.

Find companies by tracking fundraising

After startups raise capital, they are ready to spend the new funds on hiring. These companies are more likely to be posting new roles and actively hiring for a wide range of different teams, including nontechnical groups.

#business, #business-models, #column, #ec-column, #ec-how-to, #entrepreneurship, #job-search, #startup-company, #startups

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