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How fintech and serial founders drove African pre-seed investing to new heights in 2020

Startup News - 2021, January 23 - 4:00pm

When Stripe-subsidiary Paystack raised its seed round of $1.3 million in 2016, it was one of the largest disclosed rounds at that stage in Nigeria. 

At the time, seven-figure seed investments in African startups were a rarity. But over the years, those same seed-stage rounds have become more common, with some very early-stage startups even raising eight-figure sums. Nigerian fintech startup, Kuda, which bagged $10 million last year, comes to mind, for example.

Also notable amidst the growth in seven and eight-figure African seed deals have been gains in pre-seed fundraising. Typically, pre-seed rounds are raised when the startup is still in the product development phase, yet to make revenue or discover product-market fit. These investments are usually made by third-party investors (friends and family), and range between $25,000-$150,000.

But the narrative as to how much an early-stage African startup can raise as pre-seed has changed. 

Last year, African VCs who usually fund seed and Series A rounds began partaking in pre-seed rounds, and they don’t seem to be slowing down. Just a month into 2021,  Egyptian fintech startup Cassbana raised a $1 million pre-seed investment led by VC firm Disruptech in a bid to drive expansion within the country.

Nigeria’s Kuda raises $10M to be the mobile-first challenger bank for Africa

So why the sudden change in appetite from investors?

Andreata Muforo is a partner at TLcom Capital, a pan-African early-stage VC firm. She told TechCrunch that last year’s run of 23 pre-seed rounds (10 of which were $150,000+ deals) per Briter Bridges data, was due to the confidence investors had in the market, especially fintech.

Startups building financial infrastructure got noticed

While most African pre-seed investments in 2020 went to fintech, there were exceptions, including Egyptian edtech startup Zedny, which raised $1.2 million; Nigerian automotive tech startup Autochek Africa, which raised $3.4 million; and Nigerian talent startup TalentQL, which raised $300,000. 

Just as Paystack and Flutterwave built payment infrastructure for thousands of African businesses, these fintech startups are trying to make their mark in the sweet spots of credit and banking. 

“Fintech is compelling. But while most fintech startups play around the commodities side of fintech, it’s the companies building infrastructure around the market that got most of the pre-seed validation last year,” Muforo said. Her firm, TLcom, led the $1 million pre-seed investment in Okra.

Okra is an API fintech startup. So are Mono, OnePipe and Pngme. They are building Africa’s API infrastructure that connects bank accounts with financial institutions and third-party companies for different purposes. Within the past 18 months, Mono and Pngme raised $500,000, while OnePipe raised $950,000 in pre-seed.

It is noteworthy that while these startups are clamoring to solve Africa’s open API banking issues, three of the four deals came after Visa’s $5.3 billion acquisition of Plaid last year in January.

Although the Visa-Plaid acquisition has now been called off, it is safe to say some African investors developed FOMO, handing out sizable checks to fund “Africa’s Plaid” in the process.

Visa will not acquire Plaid after running into regulatory wall

Digital lenders remain one of their most important customers for fintech API startups. They can access customers’ financial accounts to understand their spending patterns and know who to loan to.

Egypt’s Shahry and Nigeria’s Evolve Credit are fintech startups building credit infrastructure for their markets. Evolve Credit connects digital lenders to those who need loan services in Nigeria via its online loan marketplace. Shahry, on the other hand, employs an AI-based credit scoring engine so users in Egypt can apply for credit. The pair also secured impressive pre-seed funding — Evolve Credit, $325,000, and Shahry, $650,000.

A recurring theme: Serial founders

Muforo points out that aside from startups building fintech infrastructure, the caliber of founders was another reason pre-seed funding peaked last year.

Adewale Yusuf, co-founder and CEO of TalentQL, a startup that hires, manages and outsources talent for Nigerian and global companies, seemed to agree. He told TechCrunch that trust between the VCs and founders involved played a major role in most pre-seed rounds last year. 

“It wasn’t surprising that a lot of investors put money in pre-seed rounds. I say this because we also saw existing founders and serial entrepreneurs coming back to the market. To me, these founders’ credibility was a major part of why those rounds were large,” he said.

A second-time founder himself, Yusuf is the co-founder of Nigerian tech media publication Techpoint Africa. His partner at TalentQL, Opeyemi Awoyemi, is also a serial entrepreneur. He co-founded Ringier One Africa Media-owned Jobberman, one of Africa’s most popular recruitment platforms.

According to Adedayo Amzat, founder of Zedcrest Capital, which is the lead investor in TalentQL’s round, the founders’ experience proved vital in closing the deal. 

He says investors are more comfortable backing experienced founders in pre-seed rounds because they have a more mature understanding of the problems they’re trying to solve. So, in essence, they tend to raise more capital.

“If you look at pre-seed sizes, experienced founders can demand a significant premium over first-time founders,” Amzat said. “Pre-seed valuation cap for first-time founders will typically be between 400K to $1 million while we frequently see up to $5 million for experienced founders.” 

It was a recurring theme last year. Yele Bademosi, who runs Microtraction, a West African early-stage VC firm, is the CEO of Bundle Africa, a Nigerian-based crypto-exchange startup that raised $450,000 in April 2020. 

Shahry co-founders Sherif ElRakabawy and Mohamed Ewis also run Egypt’s largest shopping engine and price comparison website, Yaoota.

Mono co-founder and CEO Abdulhamid Hassan was the co-founder of Nigerian fintech startup OyaPay and data science startup Voyance. Also, Etop Ikpe, the co-founder and CEO of Autochek Africa, was CEO of DealDey and Cars45.

That said, Fara Ashiru Jituboh of Okra and Akan Nelson of Evolve Credit as first-time founders got investments that most of their counterparts would only dream of. For Jituboh, her solid tech background spoke for her — boasting a senior software engineering job at Pexels and engineering consultant role at Canva before founding Okra.

“We backed Fara because she’s a strong tech founder. When you look at the core of what Okra does as a tech-heavy company, you see how important it was to make the decision,” Muforo said about backing Okra’s CEO and CTO.

Nelson also told TechCrunch that his finance background helped Evolve Credit raise its six-figure sum. The team’s bullishness on finding product-market fit and the potential of Africa’s loan marketplace was also enough to bring foreign and local VCs like Samurai Incubate, Future Africa, Ingressive Capital and Microtraction on board.

While early-stage investments in African startups haven’t reached full speed, the explosion in the number of angel investors has lowered entry barriers into early-stage investing. 

Now investors are beginning to show readiness toward African startups that have promise as they continue to search for the next Paystack. 

“More people are willing to take risks now in the market, especially angel investors. They can easily let go of $10K-$50K because of success stories like Paystack,” Yusuf said about the $200 million acquisition by U.S. payments startup Stripe

Stripe acquires Nigeria’s Paystack for $200M+ to expand into the African continent

For all of its significance to the African tech ecosystem, what particularly stands out about Paystack’s exit is the return on investment made for early investors.

By the time it exited in October 2020, some angel investors had an ROI of more than 1,400% according to Jason Njoku in his blog post. Njoku, who took part in the round as an angel investor, is the CEO of IROKO, a Nigerian VOD internet company.

For Muforo, witnessing more early-stage investments is a big deal, one the African tech ecosystem should savor regardless of the round in question.

“Pre-seed or seed are just names investors and founders give. They can basically mean the same thing, in my opinion,” she said. “What I think is most important is the fact that we’re getting more early-stage capital into Africa, and startups are getting more attention from investors, which is fantastic.”

Categories: Business News

<b>VoIP</b> Phone Systems Market Innovative Strategy by 2028 | Nextiva, Versature, RingCentral

Google News - VoIP - 2021, January 23 - 3:56pm
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<b>VoIP</b> Softphones Market Quality &amp; Quantity Analysis | Nextiva, Versature, RingCentral

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Telephony/<b>VOIP</b> Software Market Size 2021 Analysis, Growth, Vendors, Drivers, Challenges With ...

Google News - VoIP - 2021, January 23 - 2:03pm
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Apple Blasts &#39;Personal Attacks&#39; On Judge In Patent Row

Google News - VoIP - 2021, January 23 - 12:11pm
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End-to-end operators are the next generation of consumer business

Startup News - 2021, January 23 - 6:20am
Roger Lee Contributor Share on Twitter Roger Lee is a general partner at Battery Ventures, based in Menlo Park, CA, who focuses on investments in software and consumer tech, including online marketplaces. More posts by this contributor Justin Da Rosa Contributor Share on Twitter Justin Da Rosa is a vice president with Battery Ventures in San Francisco. He focuses on consumer internet, online marketplace and software investments. More posts by this contributor

At Battery, a central part of our consumer investing practice involves tracking the evolution of where and how consumers find and purchase goods and services. From our annual Battery Marketplace Index, we’ve seen seismic shifts in how consumer purchasing behavior has changed over the years, starting with the move to the web and, more recently, to mobile and on-demand via smartphones.

The evolution looks like this in a nutshell: In the early days, listing sites like Craigslist, Angie’s List* and Yelp effectively put the Yellow Pages online — you could find a new restaurant or plumber on the web, but the process of contacting them was largely still offline. As consumers grew more comfortable with the web, marketplaces like eBay, Etsy, Expedia and Wayfair* emerged, enabling historically offline transactions to occur online.

More recently, and spurred in large part by mobile, on-demand use cases, managed marketplaces like Uber, DoorDash, Instacart and StockX* have taken online consumer purchasing a step further. They play a greater role in the operations of the marketplace, from automatically matching demand with supply, to verifying the supply side for quality, to dynamic pricing.

The key purpose of being end-to-end is to deliver an even better value proposition to consumers relative to incumbent alternatives.

Each stage of this evolution unlocked billions of dollars in value, and many of the names listed above remain the largest consumer internet companies today.

At their core, these companies are facilitators, matching consumer demand with existing supply of a product or service. While there is no doubt these companies play a hugely valuable role in our lives, we increasingly believe that simply facilitating a transaction or service isn’t enough. Particularly in industries where supply is scarce, or in old-guard industries where innovation in the underlying product or service is slow, a digitized marketplace — even when managed — can produce underwhelming experiences for consumers.

In these instances, starting from the ground up is what is really required to deliver an optimal consumer experience. Back in 2014, Chris Dixon wrote a bit about this phenomenon in his post on “Full stack startups.” Fast forward several years, and more startups than ever are “full stack” or as we call it, “end-to-end operators.”

These businesses are fundamentally reimagining their product experience by owning the entire value chain, from end to end, thereby creating a step-functionally better experience for consumers. Owning more in the stack of operations gives these companies better control over quality, customer service, delivery, pricing and more — which gives consumers a better, faster and cheaper experience.

It’s worth noting that these end-to-end models typically require more capital to reach scale, as greater upfront investment is necessary to get them off the ground than other, more narrowly focused marketplacesBut in our experience, the additional capital required is often outweighed by the value captured from owning the entire experience.

End-to-end operators span many verticals

Many of these businesses have reached meaningful scale across industries:

Image Credits: Battery Ventures (opens in a new window)

All of these companies have recognized they can deliver more value to consumers by “owning” every aspect of the underlying product or service — from the bike to the workout content in Peloton’s case, or the bank account to the credit card in Chime’s case. They have reinvented and reimagined the entire consumer experience, from end to end.

What does success for end-to-end operator businesses look like?

As investors, we’ve had the privilege of meeting with many of these next-generation end-to-end operators over the years and found that those with the greatest success tend to exhibit the five key elements below:

1. Going after very large markets

The end-to-end approach makes the most sense when disrupting very large markets. In the graphic above, notice that most of these companies play in the largest, but notoriously archaic industries like banking, insurance, real estate, healthcare, etc. Incumbents in these industries are very large and entrenched, but they are legacy players, making them slow to adopt new technology. For the most part, they have failed to meet the needs of our digital-native, mobile-savvy generation and their experiences lag behind consumer expectations of today (evidenced by low, or sometimes even negative, NPS scores). Rebuilding the experience from the ground up is sometimes the only way to satisfy today’s consumers in these massive markets.

2. Step-functionally better consumer experience versus the status quo
Categories: Business News

Extra Crunch roundup: Digital health VC survey, edtech M&A, deep tech marketing, more

Startup News - 2021, January 23 - 5:58am

I had my first telehealth consultation last year, and there’s a high probability that you did, too. Since the pandemic began, consumer adoption of remote healthcare has increased 300%.

Speaking as an unvaccinated urban dweller: I’d rather speak to a nurse or doctor via my laptop than try to remain physically distanced on a bus or hailed ride traveling to/from their office.

Even after things return to (rolls eyes) normal, if I thought there was a reliable way to receive high-quality healthcare in my living room, I’d choose it.

Clearly, I’m not alone: a May 2020 McKinsey study pegged yearly domestic telehealth revenue at $3 billion before the coronavirus, but estimated that “up to $250 billion of current U.S. healthcare spend could potentially be virtualized” after the pandemic abates.

That’s a staggering number, but in a category that includes startups focused on sexual health, women’s health, pediatrics, mental health, data management and testing, it’s clear to see why digital-health funding topped more than $10 billion in the first three quarters of 2020.

Drawing from The TechCrunch List, reporter Sarah Buhr interviewed eight active health tech VCs to learn more about the companies and industry verticals that have captured their interest in 2021:

  • Bryan Roberts and Bob Kocher, partners, Venrock
  • Nan Li, managing director, Obvious Ventures
  • Elizabeth Yin, general partner, Hustle Fund
  • Christina Farr, principal investor and health tech lead, OMERS Ventures
  • Ursheet Parikh, partner, Mayfield Ventures
  • Nnamdi Okike, co-founder and managing partner, 645 Ventures
  • Emily Melton, founder and managing partner, Threshold Ventures

Full Extra Crunch articles are only available to members
Use discount code ECFriday to save 20% off a one- or two-year subscription

Since COVID-19 has renewed Washington’s focus on healthcare, many investors said they expect a friendly regulatory environment for telehealth in 2021. Additionally, healthcare providers are looking for ways to reduce costs and lower barriers for patients seeking behavioral support.

“Remote really does work,” said Elizabeth Yin, general partner at Hustle Fund.

We’ll cover digital health in more depth this year through additional surveys, vertical reporting, founder interviews and much more.

Thanks very much for reading Extra Crunch this week; I hope you have a relaxing weekend.

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

8 VCs agree: Behavioral support and remote visits make digital health a strong bet for 2021

Image Credits: Luis Alvarez (opens in a new window) / Getty Images

8 VCs agree: Behavioral support and remote visits make digital health a strong bet for 2021

Lessons from Top Hat’s acquisition spree

Image Credits: Bryce Durbin

In the last year, edtech startup Top Hat acquired three publishing companies: Fountainhead Press, Bludoor and Nelson HigherEd.

Natasha Mascarenhas interviewed CEO and founder Mike Silagadze to learn more about his content acquisition strategy, but her story also discussed “some rumblings of consolidation and exits in edtech land.”

Lessons from Top Hat’s acquisition spree

How VCs invested in Asia and Europe in 2020

Image Credits: Nigel Sussman (opens in a new window)

Last year, U.S.-based VCs invested an average of $428 million each day in domestic startups, with much of the benefits flowing to fintech companies.

This morning, Alex Wilhelm examined Q4 VC totals for Europe, which had its lowest deal count since Q1 2019, despite a record $14.3 billion in investments.

Asia’s VC industry, which saw $25.2 billion invested across 1,398 deals is seeing “a muted recovery,” says Alex.

“Falling seed volume, lots of big rounds. That’s 2020 VC around the world in a nutshell.”

How VCs invested in Asia and Europe in 2020

Decrypted: With more SolarWinds fallout, Biden picks his cybersecurity team

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

In this week’s Decrypted, security reporter Zack Whittaker covered the latest news in the unfolding SolarWinds espionage campaign, now revealed to have impacted the U.S. Bureau of Labor Statistics and Malwarebytes.

In other news, the controversy regarding WhatsApp’s privacy policy change appears to be driving users to encrypted messaging app Signal, Zack reported. Facebook has put changes at WhatsApp on hold “until it could figure out how to explain the change without losing millions of users,” apparently.

Decrypted: With more SolarWinds fallout, Biden picks his cybersecurity team

Hot IPOs hang onto gains as investors keep betting on tech

Image Credits: Nigel Sussman (opens in a new window)

A big IPO debut is a juicy topic for a few news cycles, but because there’s always another unicorn ready to break free from its corral and leap into the public markets, it doesn’t leave a lot of time to reflect.

Alex studied companies like Lemonade, Airbnb and Affirm to see how well these IPO pop stars have retained their value. Not only have most held steady, “many have actually run up the score in the ensuing weeks,” he found.

Hot IPOs hang onto gains as investors keep betting on tech

Dear Sophie: What are Biden’s immigration changes?

Image Credits: Bryce Durbin / TechCrunch

Dear Sophie:

I work in HR for a tech firm. I understand that Biden is rolling out a new immigration plan today.

What is your sense as to how the new administration will change business, corporate and startup founder immigration to the U.S.?

—Free in Fremont

Dear Sophie: What are Biden’s immigration changes?

Hello, Extra Crunch community!

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

I began my career as an avid TechCrunch reader and remained one even when I joined as a writer, when I left to work on other things and now that I’ve returned to focus on better serving our community.

I’ve been chatting with some of the folks in our community and I’d love to talk to you, too. Nothing fancy, just 5-10 minutes of your time to hear more about what you want to see from us and get some feedback on what we’ve been doing so far.

If you would be so kind as to take a minute or two to fill out this form, I’ll drop you a note and hopefully we can have a chat about the future of the Extra Crunch community before we formally roll out some of the ideas we’re cooking up.

Drew Olanoff
@yoda

Hello, Extra Crunch community!

In 2020, VCs invested $428m into US-based startups every day

Image Credits: Nigel Sussman (opens in a new window)

Last year was a disaster across the board thanks to a global pandemic, economic uncertainty and widespread social and political upheaval.

But if you were involved in the private markets, however, 2020 had some very clear upside — VCs flowed $156.2 billion into U.S.-based startups, “or around $428 million for each day,” reports Alex Wilhelm.

“The huge sum of money, however, was itself dwarfed by the amount of liquidity that American startups generated, some $290.1 billion.”

Using data sourced from the National Venture Capital Association and PitchBook, Alex used Monday’s column to recap last year’s seed, early-stage and late-stage rounds.

In 2020, VCs invested $428M into US-based startups every day

How and when to build marketing teams at deep tech companies

Image Credits: Andy Roberts (opens in a new window) / Getty Images

Building a marketing team is one of the most opaque parts of spinning up a startup, but for a deep tech company, the stakes couldn’t be higher.

How can technical founders working on bleeding-edge technology find the right people to tell their story?

If you work at a post-revenue, early-stage deep tech startup (or know someone who does), this post explains when to hire a team, whether they’ll need prior industry experience, and how to source and evaluate talent.

How and when to build marketing teams at deep tech companies

Bustle CEO Bryan Goldberg explains his plans for taking the company public

Bustle Digital Group CEO Bryan Goldberg. Image Credits: Bustle Digital Group

Senior Writer Anthony Ha interviewed Bustle Digital Group CEO Bryan Goldberg to get his thoughts on the state of digital media.

Their conversation covered a lot of ground, but the biggest news it contained focuses on Goldberg’s short-term plans.

“Where do I want to see the company in three years? I want to see three things: I want to be public, I want to see us driving a lot of profits and I want it to be a lot bigger, because we’ve consolidated a lot of other publications,” he said.

Bustle CEO Bryan Goldberg explains his plans for taking the company public

It may not be as glamorous as D2C, but beauty tech is big money

Image Credits: Laia Divols Escude/EyeEm (opens in a new window) / Getty Images

The U.S. Federal Trade Commission is not a huge fan of personal-care D2C brands merging with traditional consumer product companies.

This month, razor startup Billie and Proctor & Gamble announced they were calling off their planned merger after the FTC filed suit.

For similar reasons, Edgewell Personal Care dropped its plans last year to buy Harry’s for $1.37 billion.

In a harsher regulatory environment, “the path to profitability has become a more important part of the startup story versus growth at all costs,” it seems.

It may not be as glamorous as D2C, but beauty tech is big money

Twilio CEO says wisdom lies with your developers

SAN FRANCISCO, CA – SEPTEMBER 12: Founder and CEO of Twilio Jeff Lawson speaks onstage during TechCrunch Disrupt SF 2016 at Pier 48 on September 12, 2016 in San Francisco, California. Image Credits: Steve Jennings/Getty Images for TechCrunch

Companies that build their own tools “tend to win the hearts, minds and wallets of their customers,” according to Twilio CEO Jeff Lawson.

In an interview with enterprise reporter Ron Miller for his new book, “Ask Your Developer,” Lawson says founders should use developer teams as a sounding board when making build-versus-buy decisions.

“Lawson’s basic philosophy in the book is that if you can build it, you should,” says Ron.

Twilio CEO Jeff Lawson says wisdom lies with your developers

Categories: Business News

RingCentral&#39;s Glip Pro is the tool your office is missing

Google News - VoIP - 2021, January 23 - 5:48am
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Mobile <b>VOIP</b> (mVOIP) Market Booming Demand Leading To Exponential CAGR Growth By 2027 ...

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Biamp&#39;s Winter 2021 Products: Processors, Speakers, Sound Masking, Paging, Automation

Google News - VoIP - 2021, January 23 - 4:52am
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<b>VoIP</b> Market Future Outlook of Statistics on Industry Growth till 2026 | Nippon Shokubhai, Evonik ...

Google News - VoIP - 2021, January 23 - 3:33am
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Sounding Board raises cash as startups wake up to executive coaching

Startup News - 2021, January 23 - 1:58am

In an unprecedented work environment defined by distributed teams and virtual-only communication, two co-founders think their 2018 bet reigns truer than ever: mentors need mentorship, too.

Christine Tao and Lori Mazan, the brains behind Sounding Board, want to train any leader within an organization to be a better leader. The San Francisco startup connects anyone from first-time managers to C-suite executives with coaches through a marketplace.

Revenue has doubled or tripled every year since 2016, which the company says hovers in the “multi-millions” range. But in the wake of the coronavirus pandemic, Sounding Board has seen demand for its platform grow even more. Quarterly bookings have increased 3.4 times from Q2 2020, and in the last five months, monthly revenue has doubled.

On the heels of this growth, the co-founders say that Sounding Board’s next step as a startup is to grow beyond coaching services and into a platform that can show leaders how those newfound skills are impacting business development. The new product is meant to serve as a hub and roadmap where a participant and coach can track insights, progress and behaviors.

Within the platform, a user can schedule sessions with a coach, get matched to someone, as well as look at resources and complete tasks assigned to them. Beyond that, there is a feature that allows the coach and the manager to measure goals on an ongoing basis, similar to OKR-related software.

“The content is great, but unless you can apply that content, it’s not very useful,” Mazan said. “So this coaching is a way to help people apply the insights and the learning they’ve gotten from some kind of content and really utilize that in the workplace.”

The new product takes the monthly in-person summit that your organization used to call executive coaching and turns it into a living, breathing part of a manager’s workflow.

Beyond helping its users have a better temperature check on their progress, the product will help Sounding Board scale its services. Now any tutor on Sounding Board has more ways into a user’s mind and workflow, so every call isn’t synchronous and can be managed more evenly.

The co-founders see their long-term differentiation living in this feature. Anyone can create a marketplace, but it takes seamless, easy-to-use tech to track the effectiveness of what happens post-coaching.

Tao admits that the startup isn’t for everyone. Sounding Board has seen early adoption around enterprise companies that are in a late-stage, hyper-growth mindset heading toward an IPO. That level of maturity is a sweet spot for a third-party such as them to come in and scale leaders across teams. Customers include VMware, Uber, Plaid, Chime and Dropbox.

Why is everyone making OKR software?

That said, within organizations, 60% of Sounding Board’s users are first-time managers, 30% are middle-tier and 10% are C-suite. The co-founders think these numbers indicate a broader demand for mentorship beyond what their competitors offer, which often sticks to C-suite life coach territory or stress management.

“Everyone is starting to realize that we’re going to have to offer coaching broader than just in the C-suite, and sometimes they don’t really know what that means,” said Mazan.

The realization, along with COVID-19 tailwinds, has helped Sounding Board attract new millions in venture capital. The startup tells TechCrunch that it has raised a $13.1 million Series A led by Canaan Partners. Other investors include Correlation Ventures, Bloomberg Beta, Precursor Ventures, as well as Degreed founder David Blake and Kevin Johnson, the former CEO of Udemy.

Categories: Business News

Latest News 2020: <b>VoIP</b> Monitoring Software Market by Coronavirus-COVID19 Impact Analysis ...

Google News - VoIP - 2021, January 23 - 1:52am
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Global <b>VoIP</b> Monitoring Software Market 2020 | Know the Companies List Could Potentially Benefit ...

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Trends of <b>VoIP</b> Monitoring Software Market Reviewed for 2020 with Industry Outlook to 2025

Google News - VoIP - 2021, January 23 - 1:30am
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Cataleya&#39;s Orchid SBC Certified for Microsoft Teams Direct Routing

Google News - VoIP - 2021, January 23 - 1:27am
Cataleya provides real-time communications software and CPaaS solutions for all VoIP switching, BSS and analytics needs of communication service ...
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How VCs invested in Asia and Europe in 2020

Startup News - 2021, January 23 - 12:35am

Wrapping our look at how the venture capital asset class invested in 2020, today we’re taking a peek at Europe’s impressive year, and Asia’s slightly less invigorating set of results. (We’re speaking soon with folks who may have data on African VC activity in 2020; if those bear out, we’ll do a final entry in our series concerning the continent.)

After digging into the United States’ broader venture capital results from last year with an extra eye on fintech and unicorn investing, at least one trend was clear: Venture capital is getting later and larger (as expected).

Record dollar amounts were being invested, but across falling deal volume. More money and fewer rounds meant larger rounds, often going to the late and super-late stage startups in the market.

Unicorns are feasting, in other words, while some younger startups struggle to raise capital.

The Exchange explores startups, markets and money. Read it every morning on Extra Crunch, or get The Exchange newsletter every Saturday.

There have been some encouraging signs of seed activity, mind, but full-year data made it clear that in America, the more mature startups had the best of it.

But what about the rest of the world? After parsing KPMG data concerning both how VCs invested in Europe (here) and Asia (here) last year, there are clear echoes. But not entire reproductions.

Let’s discuss key data points from the two reports. This will be illustrative, brief and painless. Into the data!

European VCs: Rich, but not evenly distributed

Compared to historical investment levels, KPMG’s European VC report describes a venture capital scene at its peak. Q4 2020 saw $14.3 billion invested into EU startups across 1,192 deals, the highest dollar amount charted and a modest besting of the previous record set in Q3 2020.

However, despite impressive investment totals, the number of deals that the money was spread over proved lackluster.

The Q4 2020 deal count was the lowest on record since the continent’s deal peak in Q1 2019. Squinting at the provided chart, it appears that deal volume in Europe has fallen from around 2,200 in that peak quarter, to Q4’s fewer than 1,200 deals.

Categories: Business News

MotoRefi raises $10M to keep pedal on auto refinancing growth

Startup News - 2021, January 23 - 12:17am

A month before the COVID-19 pandemic had spread to North America, auto fintech startup MotoRefi — newly armed with nearly $9 million in venture capital — was preparing to bring its refinancing platform to the masses.

CEO Kevin Bennett, and the investors behind the company, saw the opportunity to service Americans who collectively hold $1.2 trillion in auto loans. What they didn’t anticipate was the sudden uptick in demand fueled by COVID-19 and the uncertainty and chaos that the pandemic created.

MotoRefi, which was born out of QED Investors in 2017, developed an auto refinancing platform that handles the entire process, including finding the best rates, paying off the old lender and re-titling the vehicle. The company has benefitted from the convergence of two trends sparked by COVID-19 that has turbocharged its business: an accelerated adoption of fintech across the economy and growing attention toward personal finance. 

Now, investors are pouring more money into the startup to help it make the most of the spike in demand for auto refinancing.

MotoRefi said Friday it has raised $10 million in a round led by Moderne Ventures. Liza Benson, a partner at Moderne Venture, will join the board.

“Many people are looking around saying how can they save money?” Bennett said, commenting on the events of the past year. “And while auto refinance historically is in a relatively low awareness category of personal finance, that interest has really grown and accelerated through 2020.”

For instance, Google searches for auto refinance increased about 40% in 2020 over the previous year, he added.

The company said its revenue rose by sixfold, its workforce tripled to more than 150 people and the number of lenders on its platform doubled over the past year. MotoRefi said it refinanced more than $250 million of auto loans in 2020.

“We actually weren’t planning on raising twice in a year,” Bennett said. “But the growth had been pretty noticeable from the investor standpoint in the market.”

That new capital will be used to hire more employees and expand its offerings, according to Bennett, who noted that MotoRefi now operates in 42 states and Washington, DC.

MotoRefi has raised more than $24 million to date. The company raised $8.6 million last February in a Series A funding round. That round, which would later grow to $9.4 million, was co-led by Accomplice and Link Ventures. Motley Fool Ventures, CMFG Ventures (part of CUNA Mutual Group) and Gaingels also participated in the round. The Series A round followed $4.7 million in seed funding that MotoRefi announced in March 2019.

Categories: Business News

Dashlane taps JD Sherman, ex-Hubspot COO, as new CEO, as co-founder Emmanuel Schalit steps aside

Startup News - 2021, January 23 - 12:05am

Our reliance on internet-based services is at an all-time high these days, and that’s brought a new focus on how well we are protected when we go online. Today comes some news from one of the bigger companies working in the area of password security, which points out how business is shifting for the companies providing these tools.

Emmanuel Schalit, the co-founder of popular password manager Dashlane, is stepping down as CEO of the startup. He is being replaced by JD Sherman, the former COO of HubSpot, as Dashlane makes plans to move more aggressively to court more business users.

“This is about thinking about its next leg of our scaling strategy, more B2B monetization after being strong in B2C,” Sherman said in an interview, praising his predecessor’s growth of the consumer business and noting his realization that “B2B was not his forte.”

Sherman’s career focus, in contrast, has been all about B2B. Before his eight years at HubSpot, he was the CFO of Akamai (which, as a CDN, also had security as a focus, albeit in a completely different way), and before that IBM.

Since accepting the offer, Sherman (pictured right) has been quietly working with Schalit — who will no longer hold any operational role — to get up to speed and will be taking over formally at the start of February.

Sherman is based out of Boston and will eventually commute to Dashlane’s HQ in New York (“eventually” because everyone is remote-working at the moment, with Sherman himself getting hired in a virtual process).

The changing of the guard comes at an interesting time for the startup. Dashlane now has 15 million users, up from 10 million+ in 2019. That was the same year that Dashlane announced two significant rounds of funding just six weeks apart from each other: first a $30 million round (which appeared to have some debt as part of it), then a $110 million Series D that valued the company at just over $500 million. Its backers include the likes of Sequoia, Bessemer, FirstMark, Rho Ventures and consumer credit reporting giant TransUnion.

Sherman would not talk about current valuation, nor where the company is currently standing regarding its next financial steps, except to say that it’s in a good place and to provide the smallest of hints of an IPO on the horizon.

“The Series D was a healthy round for a subscription business,” he said. “Right now, cashflow is solid and we have the funding we need for our growth, so there is no urgent plan to raise money. When we do, we’ll see if it is an IPO round” — that is, the last round before an IPO — “or not. To me, it’s all about growing the business.”

My guess: that valuation has gone up, given the boost in user numbers, the growth of its enterprise business and the huge shifts in the market in the last year that have put a spotlight on companies that are making using the internet safer. (Also, note that LogMeIn, which owns competitor LastPass, was picked up by PE firms for about $4.3 billion in a deal that completed last year.)

Use ‘productive paranoia’ to build cybersecurity culture at your startup

Dashlane was founded focused primarily on providing password management tools for consumers. These still account for the majority of its users, but the Series D funding was in part to fuel a bigger push into the business market, and to generally get on the radar of more people.

The expansion into business users was a natural move in more ways than one. First, the consumer service is designed as a freemium offering, while businesses provide a more steady and guaranteed revenue stream. Second, there is a natural progression that comes from being a happy consumer user: you might want to have the same service for your online work life, too. That remains the strategy for Sherman.

“The plan is to have two sides to the business,” he said, using the well-worn consumer-to-business analogy of a flywheel to describe how it will work: “The more who use it, more businesses will start to adopt it and get comfortable with using a password manager.”

That strategy is lately getting a major fillip, in the form of the massive boost in online activity in the past year.

Activities like taking care of all your shopping, entertainment, social and work-related needs have all moved online in the last year, pushed into the virtual sphere by the emergence and persistent presence of the easily contagious and dangerous COVID-19 virus.

Some of that shift has worked out better than many thought it would, and now, some believe that even when the pandemic does get under control, a lot of us will still be using the internet to get all of those things done on a regular basis.

But while I’ve heard a lot of industry people describe that situation as “the genie is out of the bottle”, perhaps a more fitting expression might be that Pandora’s box has been opened. That is to say, the increased online usage has created an alarmingly large opportunity for malicious hacking, security breaches and misuse of our online identities.

This consequently has a pretty direct link back to Dashlane.

Password protection is one of the most important elements of keeping yourself and your information safe online, with weak, stolen and reused passwords some of the biggest causes of security breaches both for consumers and businesses (by some estimates, you can track 80-90% of all security breaches back to password issues).

Beyond that, not least because of all the breaches we’ve now seen, the current market has become much more concerned about privacy and security (a trend manifesting in all kinds of ways), and that has bred a lot more awareness and appetite for the kinds of tools that Dashlane, and other companies that enable better online security, provide.

There will likely continue to be developments in the technology to both suss out bad actors and block them in their tracks when they do try to enter networks, and the technology sold to organizations to keep their and their customers’ information in the cloud in more secure ways will also be improved. But above and beyond all that, password managers are likely to continue to play a role in the mix.

Google is making autofill on Chrome for mobile more secure

Password managers may not always be a perfect solution — there have been a few cases of breaches over the years, and while they have not been in recent times, security researchers at the University of York in May 2020 identified vulnerabilities that could potentially be exploited — but they remain a relatively easy option for end users themselves to be more proactive in protecting their identities specifically by building a better way to guard their passwords. (Among all that, it’s also worth pointing out that Dashlane has never had a breach in its 10+ years of operations.)

And there are a number of routes to providing password management, including efforts from platform players themselves and more direct Dashlane competitors like 1Password and LastPass. Notably, some of the efforts to bridge some of that together, such as the “OpenYolo” project spearheaded by Google and Dashlane, have stalled over the years, in part because of the complexity of implementing it with other existing managers.

But even within that fragmented, competitive and (still at times) vulnerable market, Dashlane still has a lot of opportunities for growth.

“The business is strong and growing,” Sherman said. “The craziness around COVID and remote networking have raised the profile of password management and security in general. It’s a more difficult environment, but there is a tailwind there.”

Categories: Business News

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