It’s only been nine months since Dispo rebranded from David’s Disposables. But the vintage-inspired photo sharing app has experienced a whiplash of ups and downs, mostly due to the brand’s original namesake, YouTuber David Dobrik.
Like Clubhouse, Dispo was one of this year’s most hyped up new social apps, requiring an invite from an existing member to join. On March 9, when the company said “goodbye waitlist” and opened the app up to any iOS user, Dispo looked poised to be a worthy competitor to photo-sharing behemoths like Instagram. But, just one week later, Business Insider reported on sexual assault allegations regarding a member of Vlog Squad, a YouTube prank ensemble headed by Dispo co-founder David Dobrik. Dobrik had posted a now-deleted vlog about the night of the alleged assault, joking, “we’re all going to jail” at the end of the video.
It was only after venture capital firm Spark Capital decided to “sever all ties” with Dispo that Dobrik stepped down from the company board. In a statement made to TechCrunch at the time, Dispo said, “Dispo’s team, product, and most importantly — our community — stand for building a diverse, inclusive and empowering world.”
Dispo capitalizes on Gen Z and young millennial nostalgia for a time before digital photography, when we couldn’t take thirty selfies before choosing which one to post. On Dispo, when you take a photo, you have to wait until 9 AM the following day for the image to “develop,” and only then can you view and share it.
In both February and March of this year, the app hit the top ten of the Photo & Video category in the U.S. App Store. Despite the backlash against Dobrik, which resulted in the app’s product page being bombarded with negative comments, the app still hit the top ten in Germany, Japan, and Brazil, according to their press release. Dispo reportedly has not yet expended any international marketing resources.
Now, early investors in Dispo like Spark Capital, Seven Seven Six, and Unshackled have committed to donate any potential profits from their investment in the app to organizations working with survivors of sexual assault. Though Axios reported the app’s $20M Series A funding news in February, Dispo put out a press release this morning confirming the financing event. Though they intend to donate profits from the app, Seven Seven Six and Unshackled Ventures remain listed as investors, but Spark Capital is not. Other notable names involved in the project include high-profile photographers like Annie Leibovitz and Raven B. Varona, who has worked with artists like Beyoncé and Jay-Z. Actresses Cara Delevingne and Sofía Vergara, as well as NBA superstars Kevin Durant and Andre Iguodala, are also involved with the app as investors or advisors.
Dobrik’s role in the company was largely as a marketer – CEO Daniel Liss co-founded the app with Dobrik and has been leading the team since the beginning. After Dobrik’s departure, the Dispo team – which remains under twenty members strong – took a break from communications and product updates on the app. It’s expected that after today’s funding confirmation, the app will continue to roll out updates.
Dispo is quick to shift focus to the work of their team, which they call “some of the most talented, diverse leaders in consumer tech.” With the capital from this funding round, they hope to hire more staff to become more competitive with major social media apps with expansive teams, like Instagram and TikTok, and to experiment with machine learning. They will also likely have some serious marketing to do, now that their attempt at influencer marketing has failed massively.
Now more than ever, Dispo is promoting the app as a mental health benefit, hoping to shift the tide away from manufactured perfectionism toward more authentic social media experiences.
“A new era of start ups must emerge to end the scourge of big tech’s destruction of our political fabric and willful ignorance of its impact on body dysmorphia and mental health,” CEO Daniel Liss writes in a Substack post titled Dispo 2.0. “Imagine a world where Dispo is the social network of choice for every teen and college student in the world. How different a world would that be?”
But, for an app that propelled to success off the fame of a YouTuber with a history of less than savory behavior, that messaging might fall flat.
According to Sensor Tower, the highest Dispo has ever ranked in the Photo & Video category on the U.S. App Store was in January 2020, when it was still called David’s Disposables. The app ranked No. 1 in that category from January 7 to January 9, and on January 8, it reached No. 1 among all free iPhone apps.
Honeywell, which only recently announced its entry into the quantum computing race, and Cambridge Quantum Computing (CQ), which focuses on building software for quantum computers, today announced that they are combining Honeywell’s Quantum Solutions (HQS) business with Cambridge Quantum in the form of a new joint venture.
Honeywell has long partnered with CQ and invested in the company last year, too. The idea here is to combine Honeywell’s hardware expertise with CQ’s software focus to build what the two companies call “the world’s highest-performing quantum computer and a full suite of quantum software, including the first and most advanced quantum operating system.”
The merged companies (or ‘combination,’ as the companies’ press releases calls it) expect the deal to be completed in the third quarter of 2021. Honeywell Chairman and CEO Darius Adamczyk will become the chairman of the new company. CQ founder and CEO Ilyas Khan will become the CEO and current Honeywell Quantum Solutions President Tony Uttley will remain in this role at the new company.
The idea here is for Honeywell to spin off HQS and combine it with CQC to form a new company, while still playing a role in its leadership and finances. Honeywell will own a majority stake in the new company and invest between $270 and $300 million. It will also have a long-term agreement with the new company to build the ion traps at the core of its quantum hardware. CQ’s shareholders will own 45% of the new company.
“The new company will have the best talent in the industry, the world’s highest-performing quantum computer, the first and most advanced quantum operating system, and comprehensive, hardware-agnostic software that will drive the future of the quantum computing industry,” said Adamczyk. “The new company will be extremely well positioned to create value in the near-term within the quantum computing industry by offering the critical global infrastructure needed to support the sector’s explosive growth.”
The companies argue that a successful quantum business will need to be supported by large-scale investments and offer a one-stop shop for customers that combines hardware and software. By combining the two companies now, they note, they’ll be able to build on their respective leadership positions in their areas of expertise and scale their businesses while also accelerate their R&D and product roadmaps.
“Since we first announced Honeywell’s quantum business in 2018, we have heard from many investors who have been eager to invest directly in our leading technologies at the forefront of this exciting and dynamic industry – now, they will be able to do so,” Adamczyk said. “The new company will provide the best avenue for us to onboard new, diverse sources of capital at scale that will help drive rapid growth.”
CQ launched in 2014 and now has about 150 employees. The company raised a total of $72.8 million, including a $45 million round, which it announced last December. Honeywell, IBM Ventures, JSR Corporation, Serendipity Capital, Alvarium Investments and Talipot Holdings invested in this last round — which also means that IBM, which uses a different technology but, in many ways, directly competes with the new company, now owns a (small) part of it.
Few things have captured Silicon Valley-based investors’ attention in recent years quite like the quest to back the successor[s] to Google Docs. The estimable and entrenched productivity suite has been unbundled and repackaged into products that a number of multi-billion dollar tech startups have been built around.
All the while, entrepreneurs are continuing to poke holes in their predecessors’ lore, creating something faster, sleeker or more intuitive. For plenty of the current generation productivity startups, the journey to replace Google Docs and Microsoft Office got a historic shot in the arm this past year as a global pandemic gave remote work software companies a jot of attention.
“Covid has made everybody realize that the way that we were working had to change,” Almanac CEO Adam Nathan told TechCrunch. “The core tools we used for productivity, Microsoft Word and Google Docs were for when we did a completely different type of work.”
Almanac is trying to revamp the document editor in a package that’s quicker than products like Notion and far more intuitive than legacy software suites, Nathan says. Last year, the startup raised a $9 million seed round led by Floodgate and has been quietly building out its network of users in early access beta.
The document editor found its way into a disparate number of offices outside tech startups — from a Domino’s branch to a veterinary office — through its open source template library Core, a hub for user-submitted guides on everything from how to run a one-on-one meeting to how to structure salaries for your customer service team. There are 5,000 documents on Core which are accessible to any logged-in user, something that has been a sizable customer channel for the startup as more companies and offices across the country have begun to question some entrenched ways of doing things.
“There are way more people working in docs outside of Silicon Valley than in it,” Nathan says.
As a document editor, Almanac’s core offering is the ability to keep files organized in the way that companies actually organize themselves.
One of its hallmark features is the ability to track document changes in a way that makes Google Docs look completely unintelligible. User can easily make their own copies of documents, merge them with the original and quickly approve changes. Users can also get approval from their manager or another user in their network and ask for feedback along the way.
For tasks that require a bit more thought, people can use Almanac to add tasks to another users to-do list inside the documents themselves, a feature that they might have needed a project management tool like Asana to handle in the past. Updates for items a user has been assigned or has assigned to others live inside their own inbox where notifications flow automatically as documents evolve. The team believes that functionality like this inside Almanac will help teams cut down on unnecessary Slacking and let the documents speak for themselves.
This week we shipped a feature that makes writing in Almanac even faster: snippets.
Snippets enable you to save content (or whole docs) and easily reinsert them into a doc. pic.twitter.com/YvmHBZM7dG
— Almanac (@AlmanacDocs) May 14, 2021
The company is quickly iterating itself into new workflows — they recently launched a feature specifically around building and updating handbooks, and they also just shipped a feature called Snippets which allows users to save oft-used blocks of texts so they can quickly build up new documents.
In a crowded productivity software space, Almanac’s sell relies on users fully committing to the offering, that’s been a central struggle in the post-Microsoft Office era where users have often seen their productivity toolsets swell with tools claiming to cut down on confusion. This often isn’t the fault of the tools themselves, but with how organizations adopt new software. Almanac hopes that by focusing on common workflows inside documents, its users can resist the urge to open another app and instead realize the gains that come from centralizing feedback in one platform.
An update to an existing art app that allows artists to access NFT marketplaces directly, could have the potential to democratize access to the NFT world for artists not currently in crypto. SketchAR, is an existing mobile app that allows artists to turn photos into illustrations using its AI-based computer vision. It is now is launching a new feature that allows users to turn their art into NFTs directly inside the app, and then sell it. Content produced on the app can also include a public community feed and digital learning courses.
The app, which boasts it has almost a million users already, will start off selecting a single ‘Creator of the Week’ from its community for their art to be NFT’d on the OpenSea marketplace. But a new feature will shortly enable any artist using the platform to create and auction an NFT on-demand.
However, there a catch. The artwork will have to be created directly in the SketchAR app in order to prove the artist is the legitimate rights holder, says the startup. This is, however, an advantage, says the startup, since very few marketplaces monitor the derivation and authenticity of artworks uploaded proactively.
And for now, it looks like there is no real equivalent app on the market, although there are of course plenty of ways to create an artwork and then upload it to an NFT marketplace in a separate process.
Andrey Drobitko, CEO and founder told me: “It’s a unique offer since it allows even amateur designers to create an art piece and turn it into an NFT without diving deep into the ecosystem, connecting their wallet to their OpenSea account and paying significant gas fees to minting.”
He said: “Since the art piece comes from the app SketchAR, it also ensures it’s authentic and wasn’t stolen – something that happened quite a few times with NFTs.”
SketchAR said it also built its own infrastructure that allows it to use Ethereum and other 2-layer solutions like Flow, Immutable, or Binance Smart Chain, to reduce costs.
“Basically it competes with artists and designers learning a lot about blockchain, how to work with it, and working directly with marketplaces like OpenSea or Rarible” added Drobitko.
“15 years ago I realized I couldn’t make much money as an artist and only continued to make art for pleasure. It’s different now and we’re excited to support artists, help them develop creative skills, and successfully monetize their artworks,” he said.
It’s estimated there are roughly 50 million artists globally, but fewer than 10% are able to make it their primary source of income.
According to NonFungible.com more than $2 billion was spent on NFTs during the first quarter of 2021 representing an increase of about 2,100% from Q4 2020.
Just after the release of iOS 12 in 2018, Apple introduced its own built-in screen time tracking tools and controls. In then began cracking down on third-party apps that had implemented their own screen time systems, saying they had done so through via technologies that risked user privacy. What wasn’t available at the time? A Screen Time API that would have allowed developers to tap into Apple’s own Screen Time system and build their own experiences that augmented its capabilities. That’s now changed.
At Apple’s Worldwide Developer Conference on Monday, it introduced a new Screen Time API that offers developer access to frameworks that will allow parental control experience that also maintains user privacy.
— Guilherme Rambo (@_inside) June 7, 2021
The company added three new Swift frameworks to the iOS SDK that will allow developers to create apps that help parents manage what a child can do across their devices and ensure those restrictions stay in place.
The apps that use this API will be able to set restrictions like locking accounts in place, preventing password changes, filtering web traffic, and limiting access to applications. These sorts of changes are already available through Apple’s Screen Time system, but developers can now build their own experiences where these features are offered under their own branding and where they can then expand on the functionality provided by Apple’s system.
ScreenTime API looks great, I sincerely hope someone provides me a way to bulk change stuff for my kids. If I had known I would have to tweak each kids ScreenTime individually like I do today, I might have had less children. #WWDC21
— Stan Lemon (@stanlemon) June 7, 2021
Developers’ apps that take advantage of the API can also be locked in place so it can only be removed from the device with a parent’s approval.
The apps can authenticate the parents and ensure the device they’re managing belongs to a child in the family. Plus, Apple said the way the system will work lets parents choose the apps and websites they want to limit, without compromising user privacy. (The system returns only opaque tokens instead of identifiers for the apps and website URLs, Apple told developers, so the third-parties aren’t gaining access to private user data like app usage and web browsing details. This would prevent a shady company from building a Screen Time app only to collect troves of user data about app usage, for instance.)
The third-party apps can also create unique time windows for different apps or types of activities, and warn the child when time is nearly up. When it registers the time’s up, the app lock down access to websites and apps and perhaps remind the child it’s time to their homework — or whatever other experience the developer has in mind.
And on the flip side, the apps could create incentives for the child to gain screen time access after they complete some other task, like doing homework, reading or chores, or anything else.
Developers could use these features to design new experiences that Apple’s own Screen Time system doesn’t allow for today, by layering their own ideas on top of Apple’s basic set of controls. Parents would likely fork over their cash to make using Screen Time controls easier and more customized to their needs.
Other apps could tie into Screen Time too, outside of the “family” context — like those aimed at mental health and wellbeing, for example.
— Quentin Zervaas (@qzervaas) June 7, 2021
Of course, developers have been asking for a Screen Time API since the launch of Screen Time itself, but Apple didn’t seem to prioritize its development until the matter of Apple’s removal of rival screen time apps was brought up in an antitrust hearing last year. At the time, Apple CEO Tim Cook defended the company’s decision by explaining that apps had been using MDM (mobile device management) technology, which was designed for managing employee devices in the enterprise, not home use. This, he said, was a privacy risk.
Apple has a session during WWDC that will detail how the new API works, so we expect we’ll learn more soon as the developer info becomes more public.
Hello friends, and welcome back to Week in Review!
Last week, I wrote about tech taking on Disney. This week, I’m talking about the search for a new crypto messiah.
Elon has worn out his welcome among the crypto illuminati, and the acolytes of Bitcoin are searching out a new emperor god king.
This weekend, thousands of crypto acolytes and investors have descended on a Bitcoin-themed conference in Miami, a very real, very heavily-produced conference sporting crypto celebrities and actual celebrities all on a mission to make waves.
Even though I am not at the conference in person (panels from its main stage were live-streamed online), I have plenty of invites in my email for afterparties featuring celebrities, open bars and endless conversations on the perils of fiat. The cryptocurrency community has never been larger or richer thanks to its most fervent bull run yet, and despite a pretty noteworthy correction in the past few weeks, people believe the best is yet to come.
Despite having so much, what they still seem to be lacking is a patron saint.
For the longest bout, that was SpaceX and Tesla CEO Elon Musk who bolstered the currency by pushing Tesla to invest cash on its balance sheet into bitcoin, while also pushing for Tesla to accept bitcoin payments for its vehicles. As I’ve noted in this newsletter in the past, Musk had a tough time reconciling the sheer energy use of bitcoin’s global network with his eco warrior bravado which has seemed to lead to his mild and uneven excommunication (though I’m sure he’s welcome back at any time).
Goods & services are the real economy, any form of money is simply the accounting thereof
— Elon Musk (@elonmusk) June 5, 2021
There are plenty of celebrities looking to fill his shoes — a recent endorsement gone wrong by Soulja Boy was one of the more comical instances.
Crypto has been no stranger to grift — of that even the most hardcore crypto grifters can likely agree — and I think there’s been some agreement that the only leader who can truly preach the gospel is someone who is already so rich they don’t even need more money. It’s one reason the community has offered up so much respect for Ethereum founder Vitalik Buterin who truly doesn’t seem to care too much about getting any wealthier — he donated about $1 billion worth of crypto to Covid relief efforts in India. A Musk-like cheerleader serves a different purpose though, and so the community is in search of a Good Billionaire.
The best runner-up at the moment appears to be one Jack Dorsey, and while — like Musk — he is also another double-CEO, he is quite a bit different from him in demeanor and desire for the spotlight. He was, however, a headline speaker at Miami’s Bitcoin conference.
Dorsey gathers the most headlines for his work at Twitter but it’s Square where he is pushing most of his crypto enthusiasm. Users can already use Square’s Cash App to buy Bitcoin. Minutes before going onstage Friday, Dorsey tweeted out a thread detailing that Square was interested in building its own hardware wallet that users could store cryptocurrency like bitcoin on outside of the confines of an exchange.
Square is considering making a hardware wallet for #bitcoin. If we do it, we would build it entirely in the open, from software to hardware design, and in collaboration with the community. We want to kick off this thinking the right way: by sharing some of our guiding principles.
— jack (@jack) June 4, 2021
“Bitcoin changes absolutely everything,” Dorsey said onstage. “I don’t think there is anything more important in my lifetime to work on.”
And while the billionaire Dorsey seems like a good choice on paper — he tweets about bitcoin often, but only good tweets. He defends its environmental effects. He shows up to House misinformation hearings with a bitcoin tracker clearly visible in the background. He is also unfortunately the CEO of Twitter, a company that’s desire to reign in its more troublesome users — including one very troublesome user — has caused a rift between him and the crypto community’s very vocal libertarian sect.
Dorsey didn’t make it very far into his speech before a heckler made a scene calling him a hypocrite because of all this with a few others piping in, but like any good potential crypto king would know to do, he just waited quietly for the noise to die down.
(Photo by BRENDAN SMIALOWSKI/AFP via Getty Images)
Here are the TechCrunch news stories that especially caught my eye this week:
Facebook’s Trump ban will last at least 2 years
In response to the Facebook Oversight Board’s recommendations that the company offer more specificity around its ban of former President Trump, the company announced Friday that it will be banning Trump from its platforms through January 2023 at least, though the company has basically given itself the ability to extend that deadline if it so desires…
Nigeria suspends Twitter
Nigeria is shutting down access to Twitter inside the country with a government official citing the “use of the platform for activities that are capable of undermining Nigeria’s corporate existence.” Twitter called the shutdown “deeply concerning.”
Stack Overflow gets acquired for $1.8 billion
Stack Overflow, one of the most-visited sites of developers across the technology industry, was acquired by Prosus. The heavy hitter investment firm is best known for owning a huge chunk of Tencent. Stack Overflow’s founders say the site will continue to operate independently under the new management.
Spotify ups its personalization
Music service Spotify launched a dedicated section this week called Only You which aims to capture some of the personalization it has been serving up in its annual Spotify Wrapped review. Highlights of the new feature include blended playlists with friends and mid-year reviews.
Supreme Court limits US hacking law in landmark case
Justices from the conservative and liberal wings joined together in a landmark ruling that put limits on what kind of conduct can be prosecuted under the controversial Computer Fraud and Abuse Act.
This one email explains Apple
Here’s a fun one, the email exchange that birthed the App Store between the late Steve Jobs and SVP of Software Engineering, Bertrand Serlet as annotated by my boss Matthew Panzarino.
Image Credits: Bryce Durbin / TechCrunch
Some of my favorite reads from our Extra Crunch subscription service this week:
For SaaS startups, differentiation is an iterative process
“The more you know about your target customers’ pain points with current solutions, the easier it will be to stand out. Take every opportunity to learn about the people you are aiming to serve, and which problems they want to solve the most. Analyst reports about specific sectors may be useful, but there is no better source of information than the people who, hopefully, will pay to use your solution..”
3 lessons we learned after raising $6 million from 50 investors
“…being pre-product at the time, we had to lean on our experience and our vision to drive conviction and urgency among investors. Unfortunately, it just wasn’t enough. Investors either felt that our experience was a bad fit for the space we were entering (productivity/scheduling) or that our vision wasn’t compelling enough to merit investment on the terms we wanted.“
The existential cost of decelerated growth
“Just because a technology startup has a hot start, that doesn’t mean it will grow quickly forever. Most will wind up somewhere in the middle — or worse. Put simply, there is a larger number of tech companies that do fine or a little bit worse after they reach scale.”
As Tesla sales have risen, interest in the company has exploded, prompting investment and interest in the automotive industry, as well as the startup world.
TezLab, a free app that’s like a Fitbit for a Tesla vehicle, is just one example of the numerous startups that have sprung up in the past few years as electric vehicles have started to make the tiniest of dents in global sales. Now, as Ford, GM, Volvo, Hyundai along with newcomers Rivian, Fisker and others launch electric vehicles into the marketplace, more startups are sure to follow.
Ben Schippers, the co-founder and CEO of TezLab, is one of two early-stage founders who will join us at TC Sessions: Mobility 2021 to talk about their startups and the opportunities cropping up in this emerging age of EVs. The six-person team behind TezLab was born out of HappyFunCorp, a software engineering shop that builds apps for mobile, web, wearables and Internet of Things devices for clients that include Amazon, Facebook and Twitter, as well as an array of startups.
HFC’s engineers, including Schippers, who also co-founded HFC, were attracted to Tesla because of its techcentric approach and one important detail: the Tesla API endpoints are accessible to outsiders. The Tesla API is technically private. But it exists allowing the Tesla’s app to communicate with the cars to do things like read battery charge status and lock doors. When reverse-engineered, it’s possible for a third-party app to communicate directly with the API.
Schippers’ experience extends beyond scaling up TezLab. Schippers consults and works with companies focused on technology and human interaction, with a sub-focus in EV.
The list of speakers at our 2021 event is growing by the day and includes Motional’s president and CEO Karl Iagnemma and Aurora co-founder and CEO Chris Urmson, who will discuss the past, present and future of AVs. On the electric front is Mate Rimac, the founder of Rimac Automobili, who will talk about scaling his startup from a one-man enterprise in a garage to more than 1,000 people and contracts with major automakers.
We also recently announced a panel dedicated to China’s robotaxi industry, featuring three female leaders from Chinese AV startups: AutoX’s COO Jewel Li, Huan Sun, general manager of Momenta Europe with Momenta, and WeRide’s VP of Finance Jennifer Li.
Other guests include, GM’s VP of Global Innovation Pam Fletcher, Scale AI CEO Alexandr Wang, Joby Aviation founder and CEO JoeBen Bevirt, investor and LinkedIn founder Reid Hoffman (whose special purpose acquisition company just merged with Joby), investors Clara Brenner of Urban Innovation Fund, Quin Garcia of Autotech Ventures and Rachel Holt of Construct Capital, and Zoox co-founder and CTO Jesse Levinson.
And we may even have one more surprise — a classic TechCrunch stealth company reveal to close the show.
Don’t wait to book your tickets to TC Sessions: Mobility as prices go up at our virtual door.
Fintech in Africa is a goldmine. Investors are betting big on startups offering a plethora of services from payments and lending to neobanks, remittances and cross-border transfers, and rightfully so. Each of these services solves unique sets of challenges. For cross-border payments, it’s the outrageous rates and regulatory hassles involved with completing transactions from one African country to another.
Chipper Cash, a three-year-old startup that facilitates cross-border payment across Africa, has closed a $100 million Series C round to introduce more products and grow its team.
It hasn’t been too long ago since Chipper Cash was last in the news. In November 2020, the African cross-border fintech startup raised $30 million Series B led by Ribbit Capital and Jeff Bezos fund Bezos Expeditions. This was after closing a $13.8 million Series A round from Deciens Capital and other investors in June 2020. Hence, Chipper Cash has gone through three rounds totalling $143.8 million in a year. However, when the $8.4 million raised in two seed rounds back in 2019 is included, this number increases to $152.2 million.
SVB Capital, the investment arm of U.S. high-tech commercial bank Silicon Valley Bank led this Series C round. Others who participated in this round include existing investors — Deciens Capital, Ribbit Capital, Bezos Expeditions, One Way Ventures, 500 Startups, Tribe Capital, and Brue2 Ventures.
Chipper Cash was launched in 2018 by Ham Serunjogi and Maijid Moujaled. The pair met in Iowa after coming to the U.S. for studies. Following their stints at big names like Facebook, Flickr and Yahoo!, the founders decided to work on their own startup.
Last year, the company which offers mobile-based, no fee, P2P payment services, was present in seven countries: Ghana, Uganda, Nigeria, Tanzania, Rwanda, South Africa and Kenya. Now, it has expanded to a new territory outside Africa. “We’ve expanded to the U.K., it’s the first market we’ve expanded to outside Africa,” CEO Serunjogi said to TechCrunch.
In addition and as a sign of growth, the company which boasts more than 200 employees plans to increase its workforce by hiring 100 staff throughout the year. The number of users on Chipper Cash has increased to 4 million, up 33% from last year. And while the company averaged 80,000 transactions daily in November 2020 and processed $100 million in payments value in June 2020, it is unclear what those figures are now as Serunjogi declined to comment on them, including its revenues.
When we reported its Series B last year, Chipper Cash wanted to offer more business payment solutions, cryptocurrency trading options, and investment services. So what has been the progress since then? “We’ve launched cards products in Nigeria and we’ve also launched our crypto product. We’re also launching our US stocks product in Uganda, Nigeria and a few other countries soon,” Serunjogi answered.
Crypto is widely adopted in Africa. African users are responsible for a sizeable chunk of transactions that take place on some global crypto-trading platforms. For instance, African users accounted for $7 billion of the $8.3 billion in Luno’s total trading volume. Binance P2P users in Africa also grew 2,000% within the past five months while their volumes increased by over 380%.
Individuals and small businesses across Nigeria, South Africa and Kenya account for most of the crypto activity on the continent. Chipper Cash is active in these countries and tapping into this opportunity is basically a no brainer. “Our approach to growing products and adding products is based on what our users find valuable. As you can imagine, crypto is one technology that has been widely adopted in Africa and many emerging markets. So we want to give them the power to access crypto and to be able to buy, hold, and sell crypto whenever,” the CEO added.
However, its crypto service isn’t available in Nigeria, the largest crypto market in Africa. The reason behind this is the Central Bank of Nigeria’s (CBN) regulation on crypto activities in the country prohibiting users from converting fiat into crypto from their bank accounts. To survive, most crypto players have adopted P2P methods but Chipper Cash isn’t offering that yet and according to Serunjogi, the company is “looking forward to any development in Nigeria that allows it to be offered freely again.”
The same goes for the investment service Chipper Cash plans to roll out in Nigeria and Uganda soon. Presently, Nigeria’s capital market regulator SEC is keeping tabs on local investment platforms and bringing their activities under its purview. Chipper Cash will not be exempt when the product is live in Nigeria and has begun engaging regulators to be ahead of the curve.
“As fintech explodes and as innovation continues to move forward, consumers have to be protected. We invest millions of dollars every year in our compliance programs, so I think working closely with the regulators directly so that these products are offered in a compliant manner is important,” Serunjogi noted.
During our call, Serunjogi made some remarks about Nigeria’s central bank which resembles comments made by Flutterwave CEO Olugbenga Agboola back in March.
While acknowledging the central banks in Kenya, Rwanda, Uganda for creating environments where innovation can thrive, he said: “Nigeria has probably the most exciting and vibrant tech ecosystem in Africa. And that’s credit directly to CBN for creating and fostering an environment that allowed multiple startups like ourselves and others like Flutterwave to blossom.”
Most fintechs would argue that the CBN stifles innovation but comments from both CEOs seems to suggest otherwise. From all indication, Chipper Cash and Flutterwave strive to be on the right side of the country’s apex bank policies and regulations. It is why they are one of the fastest-growing fintechs in the region and also billion-dollar companies.
“Obviously, we’re not getting into our valuation, but we’re probably the most valuable private startup in Africa today after this round. So that’s a reflection of the environment that regulators like CBN have created to allowed innovation and growth,” Serunjogi commented when asked about the company’s valuation.
Up until last week, the only private unicorn startup in Africa this year was Flutterwave. Then China-backed and African-focused fintech OPay came along as the company was reported to be in the process of raising $400 million at a $1.5 billion valuation. If Serunjogi’s comment is anything to go by, Chipper Cash might currently be valued between $1-2 billion thus joining the exclusive billion-dollar club.
But to be sure, I asked Serunjogi again if the company is indeed a unicorn. This time, he gave a more cryptic answer. “We’re not commenting on the size of our valuation publicly. One of the things that I’ve been quite keen on internally and externally is that the valuation of our company has not been a focus for us. It’s not a goal we’re aspiring to achieve. For us, the thing that drives us is that we have a product that is impactful to our users.”
Maijid Moujaled (CTO) and Ham Serunjogi (CEO)
Serunjogi added that this investment actualizes the importance of possessing a solid balance sheet and onboarding SVB Capital and getting existing investors to double down is a means to that end. According to him, a strong balance sheet will provide the infrastructure needed to support key long-term investments which will translate to more exciting products down the road.
“We look at our investors as key partners to the business. So having very strong partners around the table makes us a stronger company. These are partners who can put capital into our business, and we’re also able to learn from them in several other ways,” he said of the investors backing the three-year-old company.
Just like Ribbit Capital and Bezos Expeditions in last year’s Series B, this is SVB Capital’s first foray into the African market. In an email, the managing director of SVB Capital Tilli Bannett, confirmed the fund’s investment in Chipper Cash. According to her, the VC firm invested in Chipper Cash because it has created an easy and accessible way for people living in Africa to fulfil their financial needs through enhanced products and user experiences.
“As a result, Chipper has had a phenomenal trajectory of consumer adoption and volume through the product. We are excited at the role Chipper has forged for itself in fostering financial inclusion across Africa and the vast potential that still lies ahead,” she added.
Fintech remains the bright spot in African tech investment. In 2020, the sector accounted for more than 25% of the almost $1.5 billion raised by African startups. This figure will likely increase this year as four startups have raised $100 million rounds already: TymeBank in February, Flutterwave in March, and OPay and Chipper Cash this May. All except TymeBank are now valued at over $1 billion, and it becomes the first time Africa has witnessed two or more billion-dollar companies in a year. In addition to Jumia (e-commerce), Interswitch (fintech), and Fawry (fintech), the continent now has six billion-dollar tech companies.
Here’s another interesting piece of information. The timeframe at which startups are reaching this landmark seems to be shortening. While it took Interswitch and Fawry seventeen and thirteen years respectively, it took Flutterwave five years; Jumia, four years; then OPay and Chipper Cash three years.
We reached out to the VC firm for comment regarding Chipper Cash’s valuation.
Here in the U.S. the concept of using driver’s data to decide the cost of auto insurance premiums is not a new one.
But in markets like Brazil, the idea is still considered relatively novel. A new startup called Justos claims it will be the first Brazilian insurer to use drivers’ data to reward those who drive safely by offering “fairer” prices.
And now Justos has raised about $2.8 million in a seed round led by Kaszek, one of the largest and most active VC firms in Latin America. Big Bets also participated in the round along with the CEOs of seven unicorns including Assaf Wand, CEO and co-founder of Hippo Insurance; David Velez, founder and CEO of Nubank; Carlos Garcia, founder and CEO Kavak; Sergio Furio, founder and CEO of Creditas; Patrick Sigris, founder of iFood and Fritz Lanman, CEO of ClassPass. Senior executives from Robinhood, Stripe, Wise, Carta and Capital One also put money in the round.
Serial entrepreneurs Dhaval Chadha, Jorge Soto Moreno and Antonio Molins co-founded Justos, having most recently worked at various Silicon Valley-based companies including ClassPass, Netflix and Airbnb.
“While we have been friends for a while, it was a coincidence that all three of us were thinking about building something new in Latin America,” Chadha said. “We spent two months studying possible paths, talking to people and investors in the United States, Brazil and Mexico, until we came up with the idea of creating an insurance company that can modernize the sector, starting with auto insurance.”
Ultimately, the trio decided that the auto insurance market would be an ideal sector considering that in Brazil, an estimated more than 70% of cars are not insured.
The process to get insurance in the country, by any accounts, is a slow one. It takes up to 72 hours to receive initial coverage and two weeks to receive the final insurance policy. Insurers also take their time in resolving claims related to car damages and loss due to accidents, the entrepreneurs say. They also charge that pricing is often not fair or transparent.
Justos aims to improve the whole auto insurance process in Brazil by measuring the way people drive to help price their insurance policies. Similar to Root here in the U.S., Justos intends to collect users’ data through their mobile phones so that it can “more accurately and assertively price different types of risk.” This way, the startup claims it can offer plans that are up to 30% cheaper than traditional plans, and grant discounts each month, according to the driving patterns of the previous month of each customer.
“We measure how safely people drive using the sensors on their cell phones,” Chadha said. “This allows us to offer cheaper insurance to users who drive well, thereby reducing biases that are inherent in the pricing models used by traditional insurance companies.”
Justos also plans to use artificial intelligence and computerized vision to analyze and process claims more quickly and machine learning for image analysis and to create bots that help accelerate claims processing.
“We are building a design driven, mobile first and customer experience that aims to revolutionize insurance in Brazil, similar to what Nubank did with banking,” Chadha told TechCrunch. “We will be eliminating any hidden fees, a lot of the small text and insurance specific jargon that is very confusing for customers.”
Justos will offer its product directly to its customers as well as through distribution channels like banks and brokers.
“By going direct to consumer, we are able to acquire users cheaper than our competitors and give back the savings to our users in the form of cheaper prices,” Chadha said.
Customers will be able to buy insurance through Justos’ app, website, or even WhatsApp. For now, the company is only adding potential customers to a waitlist but plans to begin selling policies later this year..
During the pandemic, the auto insurance sector in Brazil declined by 1%, according to Chadha, who believes that indicates “there is latent demand rearing to go once things open up again.”
Justos has a social good component as well. Justos intends to cap its profits and give any leftover revenue back to nonprofit organizations.
The company also has an ambitious goal: to help make insurance become universally accessible around the world and the roads safer in general.
“People will face everyday risks with a greater sense of safety and adventure. Road accidents will reduce drastically as a result of incentives for safer driving, and the streets will be safer,” Chadha said. “People, rather than profits, will become the focus of the insurance industry.”
Justos plans to use its new capital to set up operations, such as forming partnerships with reinsurers and an insurance company for fronting, since it is starting as an MGA (managing general agent).
It’s also working on building out its products such as apps, its back end and internal operations tools as well as designing all its processes for underwriting, claims and finance. Justos’ data science team is also building out its own pricing model.
The startup will be focused on Brazil, with plans to eventually expand within Latin America, then Iberia and Asia.
Kaszek’s Andy Young said his firm was impressed by the team’s previous experience and passion for what they’re building.
“It’s a huge space, ripe for innovation and this is the type of team that can take it to the next level,” Young told TechCrunch. “The team has taken an approach to building an insurance platform that blends being consumer centric and data driven to produce something that is not only cheaper and rewards safety but as the brand implies in Portuguese, is fairer.”
Trying to buy a house in a competitive market is perhaps one of the most stressful things an adult can go through.
Competing with a bunch of people all putting offers on a house that fly off the market in a matter of days is not fun. One startup that is trying to give home buyers a competitive edge by giving them a way to offer all cash on a home has just raised a boatload of money to help it keep growing.
Austin-based Homeward, which aims to help people buy homes faster, announced today it has raised $136 million in a Series B funding round led by Norwest Venture Partners at a valuation “just north of $800 million.” The company has also secured $235 million in debt.
Blackstone, Breyer Capital and existing backers Adams Street, Javelin and LiveOak Venture Partners also participated in the equity financing, which brings Homeward’s total equity raised since inception to $160 million.
Homeward’s model seems to be appealing to both home buyers (including first time ones) and agents alike, with lots of growth occurring since May 2020 when it raised $105 million in debt and equity. The company declined to reveal hard revenue figures but noted that its GMV (gross merchandise value) run rate is up over 600%+ year over year.
Also, as of March, Homeward says it had experienced a 5x increase in the volume of homes transacted and 9x year over growth in the number of new customers. Plus, It’s hired 161 employees since January alone, and currently has a headcount of 203, up from about 33 at this time last year.
CEO Tim Heyl founded the real estate startup in late 2018 on the premise that in most cases, sellers prefer to receive all cash offers because they are more likely to close. Loans can fall through, but cash is cash.
Heyl started the company after having worked in the industry for the previous decade, first as a broker then as the owner of a title company. During that time, he saw firsthand many of the problems in the industry. And one conundrum he frequently ran into was people not wanting to make an offer on a home without knowing for sure their current house would sell in a certain amount of time. This is a dilemma many are facing during the COVID-19 pandemic as demand outweighs supply in many major U.S. cities.
“The pandemic has greatly increased demand for our product,” Heyl told TechCrunch. “It’s a historic seller’s market with unprecedented demand from buyers and the lowest inventory levels in decades.”
The company plans to use its new capital to “double down” on its offering, scale up to meet “outsized demand” and open additional markets. Currently, Homeward operates in Texas, Colorado and Georgia.
“Right now, we have a waiting list in every market across the country, so this growth capital will enable us to meet that demand,” Heyl said. Its ultimate goal is to open its offering to agents nationwide.
Homeward also plans to double the size of its title and mortgage teams in the latter half of the year so it can offer its clients and partner agents “a single streamlined experience.” It’s also planning to integrate its consumer and internal software systems for approvals, offers and closing “so everyone can be on a single platform and we can eliminate confusion and waste,” Heyl added.
So, how does it work exactly? Homeward will make an all-cash offer on behalf of a customer wanting to buy a house. Meanwhile, that customer can hire an agent (from brokerages such as Redfin or Keller Williams) to list their home with less pressure to sell it in a certain amount of time or at a discounted price. Once Homeward buys a home, it will lease the property back to its customer until they sell their house, get a mortgage, and can buy the property back from Homeward, plus a 2 percent to 3 percent convenience fee. During the process, Homeward offers a predetermined guaranteed price for its customer’s home with the promise that if it’s unable to sell the house for at least that amount, it’ll buy the house from them.
Heyl believes Homeward’s “alternative iBuyer” model is a better deal for customers since it doesn’t purchase a customer’s old home for below market value. The company also works with agents, and not against them, he said. For example, its offerings are available to any agent, but the company “strategically” partners with top brokerages and teams, providing them with what it describes as “dedicated support, white-label branding, and digital marketing tools to help them stand out from the crowd and attract more clients.”
“Most alternatives to traditional real estate minimize or replace the agent,” Heyl said. “But we are agents ourselves, and we’ve built this for agents.”
Homeward is profitable on a per unit basis if you count transaction revenue minus costs to acquire and complete each transaction, according to Heyl. However, it is not yet profitable on a net income basis.
Jeff Crowe, managing partner at Norwest Venture Partners, will join Homeward’s board as part of the funding.
“Homeward is innovating at the intersection of real estate and fintech — that’s the next frontier,” he said. “Homeward’s cash offer addresses real problems for homebuyers in all market conditions, and the team has identified a winning strategy by partnering with agents and their clients.”
Jim Breyer of Breyer Capital describes Homeward as one of Austin’s most innovative companies.
“We are inspired by the company’s mission to build home finance solutions to overcome the limitations of the traditional mortgage and we are proud to support them as they continue to scale rapidly and efficiently,” he said.
Imagine if Google Docs was end-to-end encrypted so that not even Google could access your documents. That’s Skiff, in a nutshell.
Skiff is a document editor with a similar look and feel to Google Docs, allowing you to write, edit and collaborate in real-time with colleagues with privacy baked in. Because the document editor is built on a foundation of end-to-end encryption, Skiff doesn’t have access to anyone’s documents — only users, and those who are invited to collaborate, do.
It’s an idea that has already attracted the attention of investors. Skiff’s co-founders Andrew Milich (CEO) and Jason Ginsberg (CTO) announced today that the startup has raised $3.7 million in seed funding from venture firm Sequoia Capital, just over a year since Skiff was founded in March 2020. Alphabet chairman John Hennessy, former Yahoo chief executive Jerry Yang, and Eventbrite co-founders Julia and Kevin Hartz also participated in the round.
Milich and Ginsberg told TechCrunch that the company will use the seed funding to grow the team and build out the platform.
Skiff isn’t that much different from WhatsApp or Signal, which are also end-to-end encrypted, underneath its document editor. “Instead of using it to send messages to a bunch of people, we’re using it to send little pieces of documents and then piecing those together into a collaborative workspace,” said Milich.
But the co-founders acknowledged that putting your sensitive documents in the cloud requires users to put a lot of trust into the startup, particularly one that hasn’t been around for long. That’s why Skiff published a whitepaper with technical details of how its technology works, and has begun to open source parts of its code, allowing anyone to see how the platform works. Milich said Skiff has also gone through at least one comprehensive security audit, and the company counts advisors from the Signal Foundation to Trail of Bits.
It seems to be working. In the months since Skiff soft-launched through an invite-only program, thousands of users — including journalists, research scientists and human rights lawyers — use Skiff every day, with another 8,000 users on a waitlist.
“The group of users that we’re most excited about are just regular people that care about privacy,” said Ginsberg. “There are just so many privacy communities and people that are advocates for these types of products that really care about how they’re built and have sort of lost trust in big companies.”
“They’re using us because they’re really excited about the vision and the future of end-to-end encryption,” he said.
As of now, one fo the UK’s biggest and most active tech VCs has a new partner. Principal Colin Hanna has spearheaded several of Balderton’s deals in the past couple of years, and has now been appointed a Partner. But there’s a twist to this plot. He will be officially based in Berlin (where he’s lived since 2019), thus giving the VC a more powerful reach, being based, as it is, solely in London.
Hanna said: “Having been with Balderton for five years, I am humbled to now call my mentors my Partners. I look forward to strengthening Balderton’s unique approach from Berlin as we engineer serendipity for European founders with planet-scale ambition.”
Bernard Liautaud, Managing Partner of Balderton commented: “We are delighted to announce Colin’s promotion to Partner. Since he joined Balderton in 2016, Colin has had a significant impact on both Balderton and our portfolio… Colin has strengthened our position in DACH by establishing our permanent presence in Berlin and bringing in Shikha Ahluwalia, whom we are delighted to have. In addition, he was instrumental in the definition of the Balderton Sustainable Future Goals. We have no doubt Colin will be highly successful in his new role.”
The story does not end there, however. Joining him will be tech entrepreneur and founder Shikha Ahluwalia as an Associate covering the DACH region.
co-founded SBL, the D2C women’s fashion e-commerce company in India. Prior to that she was had a tech advisory boutique, and was previously with JP Morgan’s Investment Banking Division in London.
Balderton has 10 current investments across DACH including Contentful, Infarm, SOPHiA Genetics, McMakler, Demodesk, and vivenu.
Ahluwalia commented: “Over the past few years, I have seen the DACH start-up ecosystem evolve rapidly. We at Balderton believe the next European giant will be a technology company and know that the DACH ecosystem plays a significant role in helping form category-leading technology companies. As a former founder myself, I have first-hand experience with the unique challenges of running young businesses. I am excited to contribute and support founders on their own journey as part of Balderton Capital.”
Speaking to me over an interview Hanna said: “Shikha’s hiring deepens our commitment to the local Berlin ecosystem and to the DACH region more broadly. We have been actively supporting Founders in Germany for more than a decade.”
After spending his childhood in Jakarta and Hong Kong, and picking up a degree in Political Economy, Hanna has carved out a career in venture investing – at Balderton since July 4, 2016 – looking at it through the prism on the rise of urban living, grassroots-driven technologies like open source and crypto, and the political ramifications of technology.
He sits on the Board of companies like e-bikes startup VanMoof, Finoa (a crypto custodian), Rahko (quantum computing drug discovery, and helped lead on investments into Traefik and Luno and Vivenu).
One these you might pick up from all those is that they err towards the ‘purpose-driven’ side of the equation.
He told me: “I believe the next generation of Founders, particularly in Europe, care more about just their bank accounts and want to build companies that generate impact and are not afraid to take a view on how they want the world to change. Measuring this is a challenge and something we are trying to do with our SFGs at Balderton which I helped spearhead. I believe that when companies like Coinbase and others go “apolitical” they commit themselves to defending the structural status quo rather than becoming agents of deliberate change.”
“My point about purpose driven companies is that when I think when employees want to work with companies believe in their values and you try to tell them those aren’t important, that could be viewed as political. I don’t think we should be we should be muffling the employees.”
Does he think Coinbase, and also recent more recently Basecamp / 37 Signals were wrong to so-called ‘depoliticize’ their businesses?
“I think, I think every CEO is free to run their company how they see fit. But I think that that poses challenges for them on the talent side. I understand, as an American, how charged and how destructive the political climate became, and so I can really understand and empathize why certain choices were made at that time, because you get to a point where that where the conversation becomes toxic… I hope that the steps that they’ve taken, don’t strangle dialogue and conversation that’s constructive about how we want to make an impact and change the world, either as individuals or with the companies we work for,” he said.
Hanna also told me that he think VCs should be wary that the shift to remote will make it easier to invest more widely. “You have to more background checks on founders now, and things like that. But is it a ‘little bit’ more dangerous or is it ‘50% more dangerous’ the fact that people aren’t meeting up in person?”
Commission-free trading app Stake, which is available in UK, Brazil and New Zealand, has raised $30 million from Tiger Global and partners of London-based DST Global to expand into Europe.
Matt Leibowitz, Founder and CEO, Stake said: “We’re really excited to get to this point but it’s just the start. We set out to change the game for retail investors and were self-funded for the first four years of our journey. We’ve proven the model and now have the chance to expand our product and bring our zero-brokerage service to more retail investors.”
Since launching in the UK in early 2020, Stake claims to have grown its total customer base more than six times over, with 25% month-on-month customer growth on average and hitting over 330,000 customers globally.
It was the first to offer commission-free access to the US market in Australia, offering retail investors access to over 4,400 US stocks & ETFs without a brokerage fee.
In the UK it competes with eToro, Libertex, Fineco, Plus500 and IG, among others.
Alek Koenig spent four years at Affirm, where he was head of credit.
There he saw firsthand just how powerful the alternative lending model could be. Koenig realized that it wasn’t just consumers who could benefit from the model, but businesses too.
So in November 2019, he founded Settle as a way to give e-commerce and consumer packaged goods (CPG) companies access to non-dilutive capital. (Not every company wants to raise venture money). By June 2020, the startup had launched its platform, which is designed to help these businesses manage their cash flow. Over time, he recruited a previous co-worker, Shane Morian, to serve as Settle’s CTO.
And today, the company is announcing that it has raised $15 million in a Series A funding round led by Kleiner Perkins. This follows a previously unannounced $6 million seed raise led by Founders Fund in November 2020. Other investors in the company include SciFi (Affirm founder Max Levchin’s VC firm), Caffeinated Capital, WorkLife Ventures, Background Capital and AngelList Venture CEO Avlok Kohli.
With the pandemic leading to a massive shift toward digital and online shopping, ecommerce and CPG businesses found themselves with the challenge of keeping up with demand while trying to manage their cash flow. The main problem was the lag between accounts receivables and accounts payables.
“These companies suffer from the problem where there are these huge cash flow gaps from buying inventory, waiting to receive it and then turning it into revenue,” Koenig explains. “It takes quite a bit of time for these customers to actually get revenue from all those inventory purchases they need to make. What we do is make it really easy for companies to pay their vendors with extended payment terms.”
Settle does this by automatically syncing to a business’ accounting software and combining that with working capital products it’s developed.
Put simply, Settle will pay a vendor, and then brands can pay Settle back when they turn that COGS (cost of goods sold) into revenue. The startup says it also saves brands money on expensive wire fees.
Image Credits: Settle
“Businesses really value getting cash sooner, so they can use it in their operations,” Koenig said. “We’ve worked to reimagine the CFO suite for brands, starting with integrated financing and bill pay solutions.”
The concept of non-dilutive capital is not a new one with other startups tackling the space in different ways. For example, Pipe aims to give SaaS companies a way to get their revenue upfront, by pairing them with investors on a marketplace that pays a discounted rate for the annual value of those contracts.
Settle is focused on the e-commerce vertical, and building a unique product for that category, Koenig says, rather than trying to build a product aimed for several different industries.
“We don’t want to be a mediocre product for everybody,” he told TechCrunch. “But rather a phenomenal product for this vertical.”
Since its launch last June, Settle has seen its business jump by 1000% although it’s important to note that’s from a small base. Settle is currently working with over 300 brands including baby stroller retailer Lalo, Spiceology and men’s skincare brand Disco. So far, all of its growth has been organic.
“Last year when the pandemic hit, offline retail shut down and ecommerce got a big boost. But that meant that a lot of these companies were running out of orders and were out of stock on many items, so they were just kind of leaving money on the table,” Koenig said. “Once they started using us, they were able to buy more inventory, so we actually help them make more profit, and not just create more sales.”
His reasoning for that last statement is that by giving these businesses the ability to purchase items in bulk, they could get cheaper price per unit costs as well as cheaper shipping costs.
The company is planning to use its new capital in part to grow its team of 20, as well as raise more debt so that it can continue lending money to businesses.
Kleiner Perkins’ Monica Desai Weiss said her firm believes that Koenig and CTO Morian’s expertise in underwriting, capital markets and e-commerce give the pair “a rare skill set that’s unique to their market.”
She’s also drawn to the company’s embedded approach.
“Whereas most lending businesses are fairly transactional and opportunistic, Settle becomes deeply embedded in the way their merchants forecast and grow,” she told TechCrunch. “That approach has demonstrated inherent virality and their timing is perfect — the past year has changed consumer behaviors permanently and also produced massive opportunities for global entrepreneurship via ecommerce. In that way, we see the umbrella of e-commerce expanding massively in the coming years, and we believe Settle will be key to enabling that shift.”
Heaven knows what will happen to the mental health of children who’ve gone through this past year but if there’s one thing we need right now it’s mental health provision for young people that can scale. And as much as some of us can’t bear the thought of another video call, a UK startup reckons it’s come up with the magic formula for online therapy for children.
Now, Healios has raised a £7 million ($10M) Series A round to expand its platform across the UK. If the roll-out is successful, the startup is looking at expanding internationally. The round was led by InHealth Ventures with participation from existing investors AlbionVC.
Healios will use the funding to expand its AI, machine learning, and data science expertise, as well as add to the team. Healios says its platform digitises the clinical pathway, enabling children, adults, and their family members to use clinical services at home.
According to UK government statistics, one in eight (12.8%) five to 19-year-olds in the UK have a mental health disorder but two-thirds are unable to access NHS care because of soaring demands. And the Covid-19 pandemic has made things worse.
Launched in 2013, Healios says it has now worked with 65% of NHS Mental Health Trusts, with 70,000 specialized clinical sessions delivered, which is a high success rate for a startup, considering how hard it is to get NHS approval.
The online, family-focused therapy program for young people zeros in on psychosis and schizophrenia. Healios says that studies have shown involving family members from the start can reduce suicide by as much as 90%. It also covers anxiety, low mood, autism and ADHD, as well as support to their families.
Unlike some startups in the area of mental health, Healios is not a marketplace of advisers but is an end-to-end provider of these services.
InHealth Ventures and InHealth Group Chair, Richard Bradford, will be joining the Healios board, alongside Cat McDonald of AlbionVC.
Rich Andrews, Founder, and CEO of Healios, said: “This funding will help us reach more families in need and enable us to develop further sector-leading interventions and therapies. By bringing together clinical experts and giving them the tools to reach their patients regardless of where they are, we are closing the access gap which has plagued mental health provision for far too long.”
Andrews also told me: “A young person will have an initial mental health assessment with us. If needed, we’ll make a diagnosis and then they’ll move on to other interventions with us, so this is a seamless experience.”
Dr Ben Evans, Managing Director of InHealth Ventures, said: “Healios is a standard-bearer for healthcare innovation. They bring together clinical excellence with digital expertise, working in partnership with the NHS to address a critical, but complex area of care delivery. Healios’ work to date speaks for itself; their holistic approach to diagnosis and treatment has had a substantive impact on clinical outcomes and patient experience.”
Cat McDonald, Investor at AlbionVC, added: “Covid has engendered a pace of innovation previously unseen in healthcare. In particular, we have seen that remote care not only works, but often works much better than traditional alternatives. The option to receive care remotely, at home and in a family-centric setting is the strong preference of most kids suffering from poor mental health.”
At the market close this afternoon ahead of its earnings report, New Relic, an applications performance monitoring company, announced that founder Lew Cirne would be stepping down as CEO and moving into the executive chairman role.
At the same time, the company announced that Bill Staples, a software industry vet, would be taking over as CEO. Staples joined the company last year as chief product officer before being quickly promoted to president and chief product officer in January. Today’s promotion marks a rapid rise through the ranks to lead the company.
Cirne said when he began thinking about stepping into that executive chairman role, he was looking for a trusted partner to take his place as CEO, and he found that in Staples. “Every founder’s dream is for the company to have a long-lasting impact, and then when the time is right for them to step into a different role. To do that, you need a trusted partner that will lead with the right core values and bring to the table what the company needs as an active partner. And so I’m really excited to move to the executive chairman role [and to have Bill be that person],” Cirne told me.
For Staples, who has worked at large organizations throughout his career, this opportunity to lead the company as CEO is the pinnacle of his long career arc. He called the promotion humbling, but one he believes he is ready to take on.
“This is a new chapter for me, a new experience to be a CEO of a public company with a billion-dollar-plus value valuation, but I think the experience I have in the seat of our customers, as well as the experience I’ve had at Microsoft and Adobe, very large companies with very large stakes running large organizations has really prepared me well for this next phase,” Staples said.
Cirne says he plans to take some time off this summer to give Staples the space to grow as the leader of the company without being in the shadow of the founder and long-time CEO, but he plans to come back and work with him as the executive chairman moving forward come the fall.
As he steps into this new role, Staples will be taking over. “Certainly I have a lot to learn about what it takes to be a great CEO, but I also come in with a lot of confidence that I’ve managed organizations at scale. You know I’ve been part of P&Ls that were many times larger than New Relic, and I have confidence that I can help New Relic grow as a company.”
Hope Cochran, managing director at Madrona Ventures, who is also the chairman of the New Relic Board, said that the board fully backs of the decision to pass the CEO torch from Cirne to Staples. “With the foundation that Lew built and Bill’s leadership, New Relic has a very bright future ahead and a clear path to accelerate growth as the leader in observability,” she said in a statement.
The official transition is scheduled to take place on July 1st.
They say for every door that opens another closes, and the executive shuffle at VMware is certainly proving that old chestnut true. Four months after Pat Gelsinger stepped down as CEO to return to run Intel, the virtual machine pioneer announced yesterday that long-time exec Raghu Raghuram was taking over that role.
That set in motion another change when COO Sanjay Poonen, whom some had speculated might get the CEO job, announced yesterday afternoon on Twitter that he was leaving the company after seven years.
Coincidence? We think not.
Holger Mueller, an analyst at Constellation Research, says that he was surprised that Poonen didn’t get the job, but perhaps the VMware board valued Raghuram’s product focus more highly. “At 50, he [would have been] a long-term solution, and he did a great job on the End User Computing (EUC) side of the product before becoming COO. I guess that it is still not VMware’s core business,” he said.
Regardless, Mueller still liked the choice of Raghuram as CEO, saying that he brought stability and reliability to the position, but he sees him likely as a solid interim solution for several years as the company spins out from Dell and becomes a fully independent organization again.
“Obviously the board wanted to have someone who knows product, and has been there a long time, and is associated with the VMware core success — so that creates relatability [and stability].” He added, “At 57 he is the transitional candidate, and a good choice, a veteran who is happy to run this two-three or maybe five years and won’t go anywhere [in the interim]. And the board has time to find a long-term solution,” Mueller told me.
Mark Lockwood, lead analyst on VMware at Gartner, sees Raghuram as the right man for the job, with no reservations, one who will continue to implement the current strategy while putting his own stamp on the position.
“That the VMware board chose someone in Raghu Raghuram who has been the technical strategy executive inside the company for years speaks volumes about the board’s comfort level with the existing strategy trajectory of the company. Mr. Raghuram will most certainly steer the company slightly differently than Mr. Gelsinger did, but at least from the outside, the CEO appointment appears to be a stamp of approval on the company’s broad portfolio,” Lockwood said.
As for Poonen, he says that the writing was on the wall when he didn’t get the promotion. “Although Sanjay Poonen has indeed been a valuable executive for VMware, it was always unlikely that he would remain if not chosen for the CEO role,” Lockwood said.
Stephen Elliot, an analyst at IDC, was also bullish on the Raghuram appointment, saying he brings a broad understanding of the company, and that’s important to VMware right now. “He understands VMware customers, the technologies, M&A, and the importance of execution and its impact on profitable growth. He has been central to almost every successful strategy the company has created, and been a leader for product strategy and execution. He has a very good balance of making tactical and strategic moves to anticipate the value VMware can deliver for customers in a one-three year horizon,” Elliot said.
Elliot thinks Poonen will be just fine and will find a landing spot pretty quickly. “He is another very talented executive; he will become a CEO elsewhere, and another company will be very lucky,” he said. He says that it will take time to see if there is any impact from that, but he believes that VMware shouldn’t have trouble attracting other executive talent to fill in any gaps.
For every executive move, there are choices for replacements, and subsequent fallout from those choices. We saw a full-fledged example of that yesterday on display at VMware. If these industry experts are right, the company chose stability and reliability and a deep understanding of product. That would seem to be solid enough reasoning on the part of the board, even though Poonen leaving seems to be collateral damage from the decision, and a big loss for the company.
Following a controversial ban on political discussions earlier this week, Basecamp employees are heading for the exits. The company employs around 60 people, and roughly a third of the company appears to have accepted buyouts to leave, many citing new company policies.
On Monday, Basecamp CEO Jason Fried anounced in a blog post that employees would no longer be allowed to openly share their “societal and political discussions” at work.
“Every discussion remotely related to politics, advocacy or society at large quickly spins away from pleasant,” Fried wrote. “You shouldn’t have to wonder if staying out of it means you’re complicit, or wading into it means you’re a target.”
Basecamp’s departures are significant. According to Twitter posts, Basecamp’s head of design, head of marketing and head of customer support will all depart. The company’s iOS team also appears to have quit en masse.
The no-politics rule at Basecamp follows a similar stance that Coinbase CEO Brian Armstrong staked out late last year. Armstrong also denounced debates around “causes or political candidates” arguing that such discussions distracted from the company’s core work. About 60 members of Coinbase’s 1,200 person staff took buyouts in light of the internal policy change — a ratio that makes the exodus at Basecamp look even more dramatic.
Like Coinbase, Basecamp was immediately criticized for muzzling its employees over important issues, many of which disproportionately impact marginalized employees.
Drawing the line on “political” topics becomes murky very quickly for any non-white or LGBTQ employees, for whom many issues that might be seen as political in nature in some circles — the Black Lives Matter movement, for instance — are inextricably and deeply personal. It’s not a coincidence these grand stands against divisive “politics” at work issue down from white male tech executives.
“If you’re in doubt as to whether your choice of forum or topic for a discussion is appropriate, please ask before posting,” Basecamp CTO David Heinemeier Hansson wrote in his own blog post, echoing Fried.
According to Platformer, Fried’s missive didn’t tell the whole story. Basecamp employees instead said the tension arose from internal conversations about the company itself and its commitment to DEI work, not free-floating arguments about political candidates. Fried’s blog post does mention one particular source of tension in a roundabout way, referencing an employee-led DEI initiative that would be disbanded.
“We make project management, team communication, and email software,” Fried wrote. “We are not a social impact company.”
Last year, autonomous driving startup Zoox was acquired by Amazon in a deal worth $1.3 billion. Since then, Zoox has continued to pursue its existing strategy of developing and deploying autonomous passenger vehicles, revealing the design of its long-anticipated robotaxi late in December. From concept to reveal, Zoox spent six years developing its built-for-purpose passenger AV, and the plan is to launch them initially with commercial deployments in Las Vegas and San Francisco following testing. At TC Sessions: Mobility this year on June 9, we’ll have the chance to speak to Zoox co-founder and CTO Jesse Levinson about the company’s progress toward those goals, and what it’s like for Zoox nearly a year on as an Amazon company.
In an interview with TechCrunch from last year, Levinson told us that life under Amazon at the AV company has been essentially business as usual since the acquisition — with greatly expanded access to resources, of course, and potentially with even more autonomy than before, he said, since they’re not beholden to a host of outside investors as they pursue their goals.
Of course, the natural assumption when considering Amazon and its interest in autonomous vehicles is package delivery — which is why it’s so interesting that Zoox is, and has always, prioritized movement of people, not parcels, in its AV development roadmap. Zoox’s debut vehicle has been designed entirely with passenger transportation in mind, though the company’s CEO Aicha Evans has acknowledged in the past that it could definitely work on package delivery in partnership with its new corporate owner in the future.
We’ll hear from Levinson if there are any updates to Zoox’s plan or focus, and what Amazon’s ambitions are for autonomous vehicles in the long term. We’ll also talk about the AV industry overall, and the major shifts its undergone in the years that Zoox has been operating, and what that means for growing and attracting talent. Levinson knows the industry and the state of the art in AV technology better than most, so be sure to grab tickets to TC Sessions: Mobility 2021 ASAP and check out our chat on June 9.
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Those of us who read a lot of tech and business publications have heard for years about the cybersecurity skills gap. Studies often claim that millions of jobs are going unfilled because there aren’t enough qualified candidates available for hire.
I don’t buy it.
The basic laws of supply and demand mean there will always be people in the workforce willing to move into well-paid security jobs. The problem is not that these folks don’t exist. It’s that CIOs or CISOs typically look right past them if their resumes don’t have a very specific list of qualifications.
In many cases, hiring managers expect applicants to be fully trained on all the technologies their organization currently uses. That not only makes it harder to find qualified candidates, but it also reduces the diversity of experience within security teams — which, ultimately, may weaken the company’s security capabilities and its talent pool.
At Netskope, we take a different approach to staffing for security roles. We know we can teach the cybersecurity skills needed to do the job, so instead, there are two traits we consider more important than specific technical expertise: One is a hunger to learn more about security, which suggests the individual will take the initiative to continuously improve their skills. The other is possession of a skill set that no one else on our security team has.
To understand why I believe our approach has helped us build a stronger security team, think about the long-term benefits of hiring someone with a specific security skill set: How valuable will that exact knowledge be in several years? Probably not very.
The problem is not that these folks don’t exist. It’s that CIOs or CISOs typically look right past them if their resumes don’t have a very specific list of qualifications.
Even the most basic security technologies are incredibly dynamic. In most companies, the IT infrastructure is currently in the midst of a massive transition from on-premises to cloud-based systems. Security teams are having to learn new technologies. More than that, they are having to adopt an entirely new mindset, shifting from a focus on protecting specific pieces of hardware to a focus on protecting individuals and applications as their workloads increasingly move outside the corporate network.