Jul
13

406th Roundtable Recording On July 12, 2018: With Devdutt Yellurkar, CRV - Sramana Mitra

The billionaire tech investor and entrepreneur Peter Thiel apparently thinks Silicon Valley tech companies have wielded too much unchecked power.

In an interview with "Fox and Friends" Friday morning, Thiel responded to Twitter's recent decision to temporarily block Senate Majority Leader Mitch McConnell's reelection campaign account after it posted a video of protesters threatening the senator outside his Kentucky home.

Thiel said that Twitter's response was probably "technically correct," according to company policy, but that the case of it happening to a Republican senator was "a problem" for the company because "these sorts of things keep happening."

"There's an outside story of what happens on Twitter to the outside world," Thiel said. "And then there's an inside story inside these companies where they are sort of totalitarian, semi-totalitarian one-party states. It's like North Korea."

Read more: McConnell's campaign account suspended from Twitter after it posted a video of protesters threatening the senator in Kentucky

Twitter declined Business Insider's request for comment on Thiel's remarks.

Instead, the company pointed us to tweets from Twitter's official corporate communications account that announced after "multiple appeals from affected users" the video in question would once again be visible, but bearing a "sensitive media interstitial."

As of Friday morning, the tweet containing the controversial video appears on McConnell's campaign account and full access to the account has been reinstated, a Twitter spokesperson said.

Thiel did not immediately respond to Business Insider's request for further comment on the matter.

Thiel's main reason for appearing on "Fox and Friends" was to discuss his recent New York Times op-ed, in which the tech billionaire emphasized his concerns about the search giant Google setting up an AI research lab in China.

On Friday, Thiel reiterated those concerns, trying to get his point across that any research done in China would need to be shared, by law, with the Chinese military. Google's decision is especially worrisome, Thiel believes, because while the tech giant is working in China, it has recently chosen not to renew contracts with the US military involving its AI technologies.

"If you look at the entire Cold War history — the last, you know, century — I don't think there's ever a case where a major US company refused to work with the US and worked with our major geopolitical rivals," Thiel said Friday. "It's not like this weird, liberal thing. It is absolutely unprecedented."

Thiel has been on the offensive against Google, starting with his comments in July when he said the search giant had been "seemingly treasonous" for its work in China and called for an FBI and CIA investigation into the company.

On Friday, Thiel again called on those federal agencies to "look into what's actually going on."

As an outspoken supporter of President Donald Trump, Thiel's comments come as suspicions of an anti-conservative bias among Silicon Valley companies has reached a fever pitch with lawmakers in Washington.

In June, Trump told Fox Business Network that Google and Facebook (which counts Thiel as one of its board members) should be sued for bias toward conservatives.

Most recently, this week the president tweeted that he would be watching Google "very closely."

Original author: Nick Bastone

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Aug
09

Competition to win deals among Silicon Valley VCs is so intense that one investor made a personalized comic book of Oculus founder Palmer Luckey to woo him

The tables are turning for investors hoping to land big deals. Instead of entrepreneurs pitching major firms on their startup, investors are vying for a chance to write checks.

To stand out in the crowded venture capital market, some investors are even having to turn to unusual tactics and gifts to convince founders to give them a chance. In a report from The Information Friday, former Oculus founder Palmer Luckey revealed that one particular investor went to great lengths to get in on funding his latest startup, Anduril.

That investor, which Luckey declined to name to The Information, sent Luckey a personalized comic book that showed the Anduril team as superheroes with a glowing chest of money, according to the report.

"The money was the power that was going to help us save the world from foreign military and protect western democracy from being destroyed by Russian and Chinese military," Luckey told The Information.

Read More: Two Sequoia Capital bigwigs once hung out at a coffee shop dressed as 'Toy Story' characters to impress a candidate with a job offer

The gesture was a perfect match for Luckey, who's a big fan of science fiction, and Anduril, which provides imaging software built for vast outdoor spaces. Luckey told The Information that the gesture was unnecessary, however, because they had already decided to let the investor in on the round.

Competition among VCs for a red-hot deal is not a completely new phenomenon in Silicon Valley of course. But in the past this was the exception — reserved for a particularly hot startup — rather than the norm. Now, with billions of dollars in capital flowing into the valley, and the arrival of mega-funds like SoftBank's Vision Fund, founders have more backers to choose from than ever before.

And that means the lengths VCs will go to in order to stand out is sure to keep increasing. Today it's custom comic books. Tomorrow it could be an action movie starring a CGI Palmer Luckey.

Read the full report in The Information here.

Original author: Megan Hernbroth

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Aug
09

The 12 books Elon Musk says shaped his worldview and led him to business and personal success

Elon Musk, the CEO of SpaceX, Tesla, and other larger-than-life tech companies, somehow also seems to find time to read.

Musk has said that reading a variety of books — from epic works of fantasy like the "Lord of the Rings" trilogy to complex how-to books on building rockets — is crucial to his success.

We looked through Musk's past interviews and social media history to come up with a list of 12 books the billionaire entrepreneur thinks everyone should read.

Take a look below.

Original author: Jeremy Berke, Shana Lebowitz and Sherin Shibu

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Jul
13

Headout lands $10M Series A to help tourists book last-minute outings

Apple will offer a modified version of the iPhone to security researchers as part of its bug-bounty program, the company announced at the Black Hat cybersecurity conference on Thursday. It's the first time Apple has ever offered special devices specifically for security research purposes in this way.

These iPhones will be part of the company's iOS Security Research Device program, which provides a special version of the company's smartphone to select security researchers who apply. The program is open for researchers with a proven track record of making impactful security-oriented contributions, with the goal being to make it easier for experienced bug hunters to work on Apple's devices.

The phones that are part of Apple's security research program will be much different than your typical iPhone. These smartphones will come with advanced debugging capabilities and a root shell, among other modifications designed to make the software more open and accessible for researchers.

Read more: Apple's new iPhones are expected to launch next month — here are 5 important features we want to see

Apple hasn't said how many applications it will be accepting into the program.

The iOS Security Research Device program is one of several updates to its bug-bounty program that Apple announced at the conference. The company also upped the maximum amount of money it will pay out to researchers who find flaws, including a $1 million reward for those who execute a specific iPhone vulnerability that makes it possible to gain control of a device without requiring any user interaction.

Apple is also expanding its bug-bounty program, which it launched three years ago, to include its Mac, Apple Watch, and Apple TV operating systems as well as iOS.

Original author: Lisa Eadicicco

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Aug
09

This app uses AI and ASMR to create personalized meditations

Mindwell, a meditation app that layers tones and frequencies with spoken guidance, launched an in-app AI predictive engine on Friday.

Mindwell competes in the same meditation app space carved out by Headspace (launched in 2010 and valued at $320 million in 2017) and Calm (launched in 2012 and valued at $1 billion in February). According to the CDC, meditation practice among US adults tripled from 2012 to 2017. Mindwell first launched in June.

Mindwell says it layers "isochronic tones, solfeggio frequencies, and spoken guidance" to create 350 meditation tracks offered to users as personalized daily meditations. The app isn't only about peaceful meditation; its tracks can be geared towards bolstering self-esteem, coping with illness, and managing anxiety, fear, and phobia.

The app's flagship feature is MoodShift, a function meant to provide users with immediate help in beginning to alter their mood.

Clicking on the MoodShift tab within the app, users are brought to a rainbow screen with four quadrants: frustrated (anxious), energized (happy), discouraged (sad), and relaxed (peaceful). Users plots their current mood on the graph; next, they indicate which mood they would prefer to be in. Mindwell then recommends custom meditations for the user to listen to, with the goal of reaching the desired mindset through listening.

The app also has a suite of meditation tracks as part of its Sleep Lab, including ASMR tracks to relax users.

ASMR, or autonomous sensory meridian response, refers to a tingling sensation that some people report hearing after listening to pleasantly soft, crinkling, or breathy sounds, like whispering. While not officially recognized by medical professionals, ASMR videos are popular, not to mention lucrative, on YouTube; and, they are often turned to as sleep aids. The YouTube account ASMR Darling has nearly 2.4 million subscribers; her most popular video "ASMR 20 triggers to help you sleep" has 32 million views.

Mindwell says its new AI predictive engine uses mood data to deploy personalized meditations. This data can be demographic (age, population), psychographic (mindsets, attitudes), or environmental (time of day, weather, current events).

Mindwell

"I started many, many years ago as a composer and performer," Stewart Lane, Mindwell's head of mindfulness who also voices many of Mindwell's meditations, told Business Insider. "My interest was really looking at music, with how music affects the body because, particularly at the time (with) the kind of music in academies, the emphasis was on atonal music."

Lane said in order to listen to this atonal "jarring music, you kind of had to disengage from what the body was doing." Lane said he became "really interested in watching people's body language, becoming tight and closed even though intellectually they might have been enjoying what they were doing."

Lane's interest in the effect of music on the body played into the development of Mindwell, and the app's use of frequencies and tones layered with spoken guidance.

Read more: Mark Zuckerberg, Tim Cook, Sheryl Sandberg and more of Silicon Valley's tech titans reveal their favorite books for summer reading

Original author: Rebecca Aydin

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Dec
20

2019’s 10 defining moments in venture capital

A person riding a Revel e-moped was struck and seriously injured by a livery vehicle in Brooklyn on Thursday evening.

This reporter was nearby and witnessed the immediate aftermath of the collision.

According to a police officer on the scene, a witness said the Revel moped rider "ate the red light," proceeding through an intersection against the light.

However, another witness, Margaret Bishop, said that the driver of the Toyota sedan, which had Taxi and Limousine Commission license plates and appeared to be operating as a ride-share vehicle, was speeding. It was driving on a street running perpendicular to the Revel rider.

"I saw the driver blow right through the intersection," Bishop said. "I think he was going 50 miles per hour."

David Slotnick/Business Insider

The speed limit on New York City streets is 25 miles per hour, unless otherwise marked. It was lowered from 30 miles per hour in 2014 as part of Mayor Bill de Blasio's signature Vision Zero traffic safety campaign.

It was not clear whether the vehicle was engaged in a fare ride at the time of the collision. A TLC sticker on the car identified it as affiliated a livery base that operates Uber ride-share cars.

While shared standing e-scooters were legalized in parts of New York City in June, Revel's vehicles exist in a different vehicle class. The Revel scooters — which resemble Vespa scooters, rather than ubiquitous e-scooters like Lime and Bird — require a driver's license and are technically classified as mopeds by the New York DMV. However, they do not have pedals, and are speed-capped at 30 miles-per-hour, meaning riders do not need a special motorcycle license to drive them.

The victim, who was not immediately identified, was thrown from the Revel, which slid about 10 feet down the street. He landed face down on the street, and appeared to be unresponsive. He was bleeding from the face and head, and did not appear to have been wearing a helmet — it was not clear whether he had worn a helmet that had flown off of him during the impact, or whether he did not wear one.

He began to regain consciousness and opened his eyes about five minutes after the impact, just as responding firefighters were arriving. He appeared to be confused.

As the firefighters rendered aid, police arrived and began asking the assembled crowd for witnesses. As an ambulance with paramedics arrived several minutes later, the victim appeared to be more responsive, able to talk and articulate where he felt pain.

The victim's condition was not immediately clear. He was taken to Brooklyn Methodist Hospital, according to a police officer on the scene.

Read more: Uber and Lyft drivers reveal the scariest situations they've ever encountered

David Slotnick/Business Insider

The incident encapsulates the risks as transit systems continue to evolve and intertwine with the mobility sharing economy in cities around the US.

Revel began piloting the shared Vespa scooter-style e-mopeds in select New York City neighborhoods in summer 2018 with 68 bikes. It announced an expansion in late May, 2019, and rolled out more than 1,000 units by early June.

The scooters can be unlocked via an app, and drivers are required to obey traffic laws. Each scooter comes with two helmets — one large and one small — and Revel says it requires riders to use them. The service says that helmets are cleaned every few days.

While risks involved with bicycling and riding scooters on New York City streets are obvious, the understated risk with services like Revel are that riders are often inexperienced driving that type of vehicle.

Although e-bikes have been a common sight on New York City streets for years, particularly among food delivery drivers — although the city says those bikes are not legal — the ubiquity of the Revel mopeds have raised safety concerns since anyone with a valid drivers licence can use one.

The same safety concerns permeate the expansion of standing e-scooters — studies have found a pronounced risk of severe head trauma from scooter accidents, and that as many as 66% of injured users were not wearing helmets.

While Revel offers operating and safety lessons, these are optional for users, and some users have reported a wait to get an appointment.

Read more: I took a $120 Blade helicopter flight from midtown Manhattan to JFK Airport — here's what it was like

David Slotnick/Business Insider

It was not immediately clear whether this was the first major injury to a Revel or e-scooter rider in New York City since they rolled out. A cyclist has filed a lawsuit against Revel after a rider allegedly hit him in June.

Ride-hailing services like Uber, Lyft, Via, and others have been prominent in New York City for years. Unlike other locations, New York City requires ride-hailing drivers and cars to be licensed as livery vehicles through the Taxi and Limousine Commission, and registered with a base.

In a statement, a spokesperson for Revel said that the company is intent on ensuring rider safety:

We are aware of the unfortunate incident last night in Brooklyn involving a car and a rider. The details of the incident are not yet completely clear, but the safety of Revel riders is very important to us, which is why we verify riders have a safe driving history as part of our registration process, require all riders to use the helmets we provide at all times, follow all traffic laws, and we offer free lessons at our Gowanus headquarters. We will be investigating this further.

A spokesperson for Brooklyn Methodist hospital declined to comment on the victim's condition, while a spokesperson for the New York Police Department said there was no additional information available.

Original author: David Slotnick

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Jun
17

Regulators know teleoperation is key for self-driving vehicles to succeed

It’s down to the wire folks. Today’s the last day you can save $100 on your ticket to TC Sessions: Enterprise 2019, which takes place on September 5 at the Yerba Buena Center in San Francisco. The deadline expires in mere hours — at 11:59 p.m. (PT). Get the best possible price and buy your early-bird ticket right now.

We expect more than 1,000 attendees representing the enterprise software community’s best and brightest. We’re talking founders of companies in every stage and CIOs and systems architects from some of the biggest multinationals. And, of course, managing partners from the most influential venture and corporate investment firms.

Take a look at just some of the companies joining us for TC Sessions: Enterprise: Bain & Company, Box, Dell Technologies Capital, Google, Oracle, SAP and SoftBank. Let the networking begin!

You can expect a full day of main-stage interviews and panel discussions, plus break-out sessions and speaker Q&As. TechCrunch editors will dig into the big issues enterprise software companies face today along with emerging trends and technologies.

Data, for example, is a mighty hot topic, and you’ll hear a lot more about it during a session entitled, Innovation Break: Data – Who Owns It?: Enterprises have historically competed by being closed entities, keeping a closed architecture and innovating internally. When applying this closed approach to the hottest new commodity, data, it simply does not work anymore. But as enterprises, startups and public institutions open themselves up, how open is too open? Hear from leaders who explore data ownership and the questions that need to be answered before the data floodgates are opened. Sponsored by SAP .

If investment is on your mind, don’t miss the Investor Q&A. Some of greatest investors in enterprise will be on hand to answer your burning questions. Want to know more? Check out the full agenda.

Maximize your last day of early-bird buying power and take advantage of the group discount. Buy four or more tickets at once and save 20%. Here’s a bonus. Every ticket you buy to TC Sessions: Enterprise includes a free Expo Only pass to TechCrunch Disrupt SF on October 2-4.

It’s now o’clock startuppers. Your opportunity to save $100 on tickets to TC Sessions: Enterprise ends tonight at precisely 11:59 p.m. (PT). Buy your early-bird tickets now and join us in September!

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

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Feb
10

Cloud Stocks: Twilio Steps up Investment in 2020 to Preserve Growth Momentum - Sramana Mitra

As privacy regulations like GDPR and the California Consumer Privacy Act proliferate, more startups are looking to help companies comply. Enter Preclusio, a member of the Y Combinator Summer 2019 class, which has developed a machine learning-fueled solution to help companies adhere to these privacy regulations.

“We have a platform that is deployed on-prem in our customer’s environment, and helps them identify what data they’re collecting, how they’re using it, where it’s being stored and how it should be protected. We help companies put together this broad view of their data, and then we continuously monitor their data infrastructure to ensure that this data continues to be protected,” company co-founder and CEO Heather Wade told TechCrunch.

She says that the company made a deliberate decision to keep the solution on-prem. “We really believe in giving our clients control over their data. We don’t want to be just another third-party SaaS vendor that you have to ship your data to,” Wade explained.

That said, customers can run it wherever they wish, whether that’s on-prem or in the cloud in Azure or AWS. Regardless of where it’s stored, the idea is to give customers direct control over their own data. “We are really trying to alert our customers to threats or to potential privacy exceptions that are occurring in their environment in real time, and being in their environment is really the best way to facilitate this,” she said.

The product works by getting read-only access to the data, then begins to identify sensitive data in an automated fashion using machine learning. “Our product automatically looks at the schema and samples of the data, and uses machine learning to identify common protected data,” she said. Once that process is completed, a privacy compliance team can review the findings and adjust these classifications as needed.

Wade, who started the company in March, says the idea formed at previous positions where she was responsible for implementing privacy policies and found there weren’t adequate solutions on the market to help. “I had to face the challenges first-hand of dealing with privacy and compliance and seeing how resources were really taken away from our engineering teams and having to allocate these resources to solving these problems internally, especially early on when GDPR was first passed, and there really were not that many tools available in the market,” she said.

Interestingly Wade’s co-founder is her husband, John. She says they deal with the intensity of being married and startup founders by sticking to their areas of expertise. He’s the marketing person and she’s the technical one.

She says they applied to Y Combinator because they wanted to grow quickly, and that timing is important with more privacy laws coming online soon. She has been impressed with the generosity of the community in helping them reach their goals. “It’s almost indescribable how generous and helpful other folks who’ve been through the YC program are to the incoming batches, and they really do have that spirit of paying it forward,” she said.

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Aug
09

Best of Bootstrapping: Tuft & Needle CEO Bootstraps to Over $100 Million - Sramana Mitra

Online mattress is the hottest e-commerce category these days, and here is yet another one delivering venture-scale growth without venture capital. Tuft & Needle CEO JT Marino shares his story....

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Original author: Sramana Mitra

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Jul
17

Online learning platform Unacademy gets $21M Series C from Sequoia India, SAIF and Nexus

According to a Market Study Report published earlier this year, the global cloud accounting software market is expected to grow 9% annually to $4.3 billion by the year 2024. The researcher pegs the...

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Original author: MitraSramana

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Jul
22

Intel CEO: We’re talking to 100 potential customers for manufacturing services

Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines.

This week we were helmed by Kate Clark and Alex Wilhelm, but those of you who love the show having guests on, don’t despair. As we explain at the top, there’s a lot of folks coming on the show soon, many of whom you know by name.

But that’s to come, and we had a lot to chat through this week. Including, right from the jump, the latest gyrations in the stock market. Earlier this week tech stocks, and especially cloud and SaaS stocks, took a nosedive. Sentiment swung around later in the week when markets caught their breath and Lyft’s earnings went well. But the movement in highly valued SaaS companies caught our eye. Perhaps if the market finally does correct, we’ll see growth stakes take the worst of it.

But it wasn’t all bad news on the show; a new app that raised $5 million caught Kate’s attention. It’s called Squad and it’s now backed by First Round Capital, the seed fund behind the likes of Uber . You can read Kate’s interview with the founder, Esther Crawford, here.

Next, we turned to two startups that are focused on male reproductive health. While we’ve covered startups focused on fertility, this is the first time we’ve delved into male-focused services that are designed to help men take part in conception. The news here is Dadi has raised another $5 million in venture capital funding. Legacy, the other male fertility company we discussed, is taking part in Y Combinator’s summer batch right now.

On the IPO-ish beat, we talked about Postmates, which has a new stadium partnership, and, more importantly, permission to use cute robots to deliver things in San Francisco. After hearing for years about how small, rolling robots will handle last-mile deliveries, we’re excited for them to actually make it to market. In our view, technology of this sort won’t eliminate the need for human workers at on-demand shops, though they may replace some routine runs. Bring on the burrito robots.

We closed on Airbnb’s purchase of Urbandoor, yet another acquisition from the popular home-sharing company that will eventually go public. It has to, right? Perhaps Urbandoor will help unlock new revenues in the corporate travel space before we see an S-1. After all, Airbnb wants to debut with plenty of growth under its belt to help it meet valuation expectations. Adding revenue to its core business could be a good way to ensure that there’s new top-line to report.

More to come, including something special next week!

Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify, Pocket Casts, Downcast and all the casts.

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Aug
09

Roundtable Recap: August 8 – An Innovative Take on VC Funding - Sramana Mitra

During this week’s roundtable, we had Jonathan Nelson, CEO, Founder at Hackers/Founders, and Managing Director of Hack Fund V. Jonathan discussed an innovative take his fund is taking on VC funding....

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Original author: Sramana Mitra

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Dec
21

1Mby1M Deal Radar 2019: PayKickstart, Carmel, IN - Sramana Mitra

China’s EHang, a company focused on developing and deploying autonomous passenger and freight low-altitude vehicles, will build out its first operational network of air taxis and transports in Guangzhou. The company announced that the Chinese city would play host to its pilot location for a citywide deployment.

The pilot will focus on not only showing that a low-altitude, rotor-powered aircraft makes sense for use in cities, but that a whole network of them can operate autonomously in concert, controlled and monitored by a central traffic management hub that EHang will develop together with the local Guangzhou government.

EHang, which was chosen at the beginning of this year by China’s Civil Aviation Administration as the sole pilot company to be able to build out autonomous flying passenger vehicle services, has already demonstrated flights of its EHang 184 vehicles carrying passengers in Vienna earlier this year, and ran a number of flights in Guangzhou in 2018 as well.

In addition to developing the air traffic control system to ensure that these operate safely as a fleet working in the air above the city at the same time, EHang will be working with Guangzhou to build out the infrastructure needed to operate the network. The plan for the pilot is to use the initial stages to continue to test out the vehicles, as well as the vertiports it’ll need to support their operation, and then it’ll work with commercial partners for good transportation first.

The benefits of such a network will be especially valuable for cities like Guangzhou, where rapid growth has led to plenty of traffic and high density at the ground level. It also could potentially have advantages over a network of autonomous cars or wheeled vehicles, as those still have to contend with ground traffic, pedestrians, cyclists and other vehicles in order to operate, while the low-altitude air above a city is more or less unoccupied.

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Aug
09

India’s Lendingkart raises $30M to help small businesses access working capital

As India continues its race to adopt digital payments at a pace and scale seen rarely worldwide, the country’s startups are quickly building solutions to bring financial services to businesses. And they are attracting significant capital from local investors and global giants to scale their ambitions.

Lendingkart, one of the many startups in the country that is helping micro, small and medium-sized enterprises access working capital, has raised $30 million as part of its Series D financing round, it said on Friday. Existing investors Fullerton Financial Holdings, Bertelsmann India Investments and India Quotient funded the round. The five-year-old, Bangalore-based startup has raised $143 million to date.

Lendingkart Finance has issued over 60,000 loans to more than 55,000 small and medium-sized enterprises in 1,300 cities across India. In a statement, the startup said it would use the fresh capital to widen its lending range and find new clients. It also wants to refine and bulk up its product offering.

Like in other developing markets, many businesses in India, including those that are operating in the exporting space, have to wait for days before they get paid from their previous clients. This creates an immense challenge for many who don’t have any savings. Their options are severely limited as traditional banks find them too risky to lend money.

“Micro and small businesses represent a vibrant yet underserved segment of the Indian economy. The support of all of our customers, investors and employees is empowering us to build the leading financial services platform for this segment,” said Harshvardhan Lunia, co-founder and managing director of Lendingkart.

Lendingkart competes with a handful of businesses, including Gurgaon-based Indifi, which raised $21 million earlier this week, Bangalore-based Zest Money, Five Star Finance, Capital Float and, in some capacity, Drip Capital, which recently raised $25 million.

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Jan
06

A YouTube video editor who works with David Dobrik's Vlog Squad told us what it's like to film top creators, from private jets to quick turnarounds

Glow is a new startup that says it wants to help podcasters build media business.

That’s something co-founder and CEO Amira Valliani said she tried to do herself. After a career that included working in the Obama White House and getting an MBA from Wharton, she launched a podcast covering local elections in Cambridge, Mass., and she said that after the initial six episodes, she struggled to find a sustainable business model.

Valliani (pictured above with her co-founder and chief product officer Brian Elieson) recalled thinking, “Well, I got this one grant and I’d love to do more, but I need to figure out a way to pay for it.” She realized that advertising didn’t make sense, but when a listener expressed interest in paying her directly, none of the existing platforms made it easy.

“I just couldn’t figure it out,” she said. “I felt an acute need, and I thought, ‘Are there other people out there who haven’t been able to figure out how to do it, because the lift is just too high?’ ”

That’s the need Glow tries to address with its first product — allowing podcasters to create paid subscriptions. To do that, podcasters create a subscription page on the Glow site, where they can accept payments and then allow listeners to access paywalled content from the podcast app of their choice.

Glow started testing the product with the startup-focused podcast Acquired, which is now bringing in $35,000 in subscription fees through Glow. More recently, it’s signed up the Techmeme Ride Home, Twenty Thousand Hertz, The Newsworthy and others.

When asked about the broader landscape of podcast startups (including several that support paid subscriptions), Valliani said there are three main problems that podcasters face: hosting, monetization and distribution.

Hosting, she said, is “largely a solved problem,” so Glow is starting out by trying to “solve for monetization through the direct relationship with listeners.” Eventually, it could move into distribution, though that doesn’t mean launching a Glow podcast app: “For us, we think distribution means helping podcasts grow their audience.”

The startup announced today that it has raised $2.3 million in seed funding. The round was led by Greycroft, with participation from Norwest Venture Partners, PSL Ventures, WndrCo and Revolution’s Rise of the Rest Seed Fund, as well as individual investors including Nas and Electronic Arts CTO Ken Moss.

“Our first hire after this funding round will be someone focused on podcast success,” Valliani said. “Of course, we’re going to build the product [but we’re] doubling down on this market; we better make sure that [podcasters] are prepared to launch programs that are as successful as possible.”

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Jul
17

Mention Me, the referral marketing platform, raises $7M led by Eight Roads Ventures

Following many months of pressure, DoorDash, one of the most frequently used food delivery apps in the U.S., said late last month that it was finally changing its tipping policy to pass along to workers 100% of tips, rather than employ some of that money toward defraying its own costs.

The move was a step in the right direction, but as a New York Times piece recently underscored, there are many remaining challenges for food delivery couriers, including not knowing where a delivery is going until a worker picks it up (Uber Eats), having just seconds to decide whether or not to accept an order (Postmates) and not being guaranteed a minimum wage (Deliveroo) — not to mention the threat of delivery robots taking their jobs.

It’s a big enough problem that a young, nine-person startup called Dumpling has decided to tackle it directly. Its big idea: turn today’s delivery workers into “solopreneurs” who build their own book of clients and keep much more of the money.

It newly has $3 million in backing from two venture firms that know the gig economy well, too: Floodgate, an early investor in Lyft (firm co-founder Ann Miura-Ko is on Lyft’s board), and Fuel Capital, where TaskRabbit founder Leah Busque is now a general partner.

We talked with Dumpling’s co-founders and co-CEOs earlier this week to learn more about the company and how viable it might be. Nate D’Anna spent eight years as a director of corporate development at Cisco; Joel Shapiro spent more than 13 years with National Instruments, where he held a variety of roles, including as a marketing director focused on emerging markets.

National Instruments, based in Austin, is also where Shapiro and D’Anna first met back in 2002. Our chat, edited lightly for length, follows:

TC: You started working together out of college. What prompted you to come together to start Dumpling?

JS: We’d stayed good friends as we’d done different things with our careers, but we were both seeing rising inequality happening at companies and within their workforces, and we were both interested in using our [respective] background and experiences to try and make a difference.

ND: When we were first started, Dumpling wasn’t a platform for people to start their own business. It was a place for people to voice opinions — kind of like a Glassdoor for workers with hourly jobs, including in retail. What jumped out at us was how many gig workers began using the platform to talk about the horrible ways they were being treated, not having a traditional boss and not being protected by traditional policies.

TC: At what point did you think you were onto a separate opportunity?

ND: We knew that a mission-driven company that’s trying to do good by people who’ve been exploited by Silicon Valley companies has to be profitable. I was an investor at Cisco, and I was very clear that the money side has to work. So we started talking with gig workers and we asked, ‘Why are you working for a terrible company where you’re getting injured, where you’re getting penalized for not taking the next job?’ And the response was ‘money.’ It was, ‘I need to be able to buy these groceries and I don’t want to put them on my own credit card.’ That was an epiphany for us. If the biggest pain point to running these businesses is working capital and we can solve that — if business owners will pay for access to capital and for tools that help them run their business — that clicked for us.

TC: A big part of your premise is that while gig economy companies have anonymized people as best they can, there’s a meaningful segment of services where a stranger or a robot isn’t going to work.

JS: Shoppers for gig companies often hear, ‘When you [specifically] come, it makes my day,’ so our philosophy was to build a platform that supports the person. When you run a business and build a clientele that you get to know, you’re incentivized for that [client] to have a good experience. So we wondered, how do we provide tools for someone who has done personal shopping and who not only needs funds to shop but also help with marketing and a website and training so they can promote their services?

ND: We also realized that to help business owners succeed that we needed to lower the transaction cost for them to find customers, so we created a marketplace where shoppers can look at reviews, understand different shoppers’ knowledge regarding when it comes to various specialties and stores, then help match them.

TC: How many shoppers are now running their own businesses on Dumpling and what do they get from you exactly?

JS: More than 500 across the country are operating in 37 states.  And we want to give them everything they need. A big part of that is capital, so we give [them] a credit card, then it’s effectively the operational support, including order management, customer relationship functionality, customer communication, a storefront, an app that they can use to run their business from their phone. . .

TC: What about insurance, tax help, that sort of stuff?

ND: A lot of VCs pushed us in that direction. The good news is a lot of companies are coming up to provide those ancillary services, and we’ll eventually partner with them if you want to export your data to Intuit or someone else. Right now, we’re really focused on [shoppers’] core business, helping then to operate it, to find customers, that’s our sweet spot for the immediate future.

TC: What are you charging? Who are you charging?

JS: A subscription model is an obvious way for us to go at some point, but right now, because we’re in the transaction flow, we’re taking a percentage of each transaction. The [solopreneuer] pays us $5 per transaction as a platform fee; the shopper pays us 5% atop the delivery fee set by the [person who is delivering their goods]. So if someone spends $100 on groceries, that customer pays us $5, and the shopper pays us $5 and the shopper gets that delivery fee, plus his or her tip.

The vast amount goes to the shopper, unlike with today’s model [wherein the vast majority goes to delivery companies]. Our average shopper is bringing home $32 in earnings per order, roughly three times as much as when they work for other grocery delivery apps. I think that’s partly because we communicate to [shoppers] that they are supporting local businesses and local entrepreneurs and they are receiving an average tip of 17% on their orders. But also, when you know your shopper and that person gets to know your preferences, you’re much more comfortable ordering non-perishables, like produce picked the way you like. That leads to huge order sizes, which is another reason that average earnings are higher.

TC: You’re fronting the cost for groceries. Is that money coming from your venture funding? Do you have a debt facility?

ND: We don’t. The money moves so fast. The shoppers are using the card to shop, then getting the money back again, so the cycle time is quick. It’s two days, not six months.

TC: How does this whole thing scale? Are you collecting data that you hope will inform future products?

ND: We definitely want to use tech to empower [shoppers] instead of control them. But [our CTO and third co-founder Tom Schoellhammer] came from Google doing search there, and eventually we [expect to] recommend similar stores, or [extend into] beauty or pet other local services. Grocery delivery is one obvious place where the market is broken, but where you want a trusted person involved, and you’re in the flow when people are looking for something [the opportunity opens up]. Shoppers’ knowledge of their local operation zone can be leveraged much more.

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Jul
16

Airobotics makes autonomous drones in a box

Many companies and municipalities are saddled with hundreds or thousands of hours of video and limited ways to turn it into usable data. Voxel51 offers a machine learning-based option that chews through video and labels it, not just with simple image recognition but with an understanding of motions and objects over time.

Annotating video is an important task for a lot of industries, the most well-known of which is certainly autonomous driving. But it’s also important in robotics, the service and retail industries, for police encounters (now that body cams are becoming commonplace) and so on.

It’s done in a variety of ways, from humans literally drawing boxes around objects every frame and writing what’s in it to more advanced approaches that automate much of the process, even running in real time. But the general rule with these is that they’re done frame by frame.

A single frame is great if you want to tell how many cars are in an image, or whether there’s a stop sign, or what a license plate reads. But what if you need to tell whether someone is walking or stepping out of the way? What about whether someone is waving or throwing a rock? Are people in a crowd going to the right or left, generally? This kind of thing is difficult to infer from a single frame, but looking at just two or three in succession makes it clear.

That fact is what startup Voxel51 is leveraging to take on the established competition in this space. Video-native algorithms can do some things that single-frame ones can’t, and where they do overlap, the former often does it better.

Voxel51 emerged from computer vision work done by its co-founders, CEO Jason Corso and CTO Brian Moore, at the University of Michigan. The latter took the former’s computer vision class and eventually the two found they shared a desire to take ideas out of the lab.

“I started the company because I had this vast swath of research,” Corso said, “and the vast majority of services that were available were focused on image-based understanding rather than video-based understanding. And in almost all instances we’ve seen, when we use a video-based model we see accuracy improvements.”

While any old off-the-shelf algorithm can recognize a car or person in an image, it takes much more savvy to make something that can, for example, identify merging behaviors at an intersection, or tell whether someone has slipped between cars to jaywalk. In each of those situations the context is important and multiple frames of video are needed to characterize the action.

“When we process data we look at the spacio-temporal volume as a whole,” said Corso. “Five, 10, 30 frames… our models figure out how far behind and forward it should look to find a robust inference.”

In other, more normal words, the AI model isn’t just looking at an image, but at relationships between many images over time. If it’s not quite sure whether a person in a given frame is crouching or landing from a jump, it knows that it can scrub a little forward or backward to find the information that will make that clear.

And even for more ordinary inference tasks like counting the cars in the street, that data can be double-checked or updated by looking back or skipping ahead. If you can only see five cars because one’s big and blocks a sixth, that doesn’t change the fact that there are six cars. Even if every frame doesn’t show every car, it still matters for, say, a traffic monitoring system.

The natural objection to this is that processing 10 frames to find out what a person is doing is more expensive, computationally speaking, than processing a single frame. That’s certainly true if you are treating it like a series of still images, but that’s not how Voxel51 does it.

“We get away with it by processing fewer pixels per frame,” Corso explained. “The total amount of pixels we process might be the same or less as a single frame, depending on what we want it to do.”

For example, on video that needs to be closely examined but speed isn’t a concern (like a backlog of traffic cam data), it can expend all the time it needs on each frame. But for a case where the turnaround needs to be quicker, it can do a fast, real-time pass to identify major objects and motions, then go back through and focus on the parts that are the most important — not the unmoving sky or parked cars, but people and other known objects.

The platform is highly parameterized and naturally doesn’t share the limitations of human-driven annotation (though the latter is still the main option for highly novel applications where you’d have to build a model from scratch).

“You don’t have to worry about, is it annotator A or annotator B, and our platform is a compute platform, so it scales on demand,” said Corso.

They’ve packed everything into a drag-and-drop interface they call Scoop. You drop in your data — videos, GPS, things like that — and let the system power through it. Then you have a browsable map that lets you enumerate or track any number of things: types of signs, blue BMWs, red Toyotas, right turn only lanes, people walking on the sidewalk, people bunching up at a crosswalk, etc. And you can combine categories, in case you’re looking for scenes where that blue BMW was in a right turn only lane.

Each sighting is attached to the source video, with bounding boxes laid over it indicating the locations of what you’re looking for. You can then export the related videos, with or without annotations. There’s a demo site that shows how it all works.

It’s a little like Nexar’s recently announced Live Maps, though obviously also quite different. That two companies can pursue AI-powered processing of massive amounts of street-level video data and still be distinct business propositions indicates how large the potential market for this type of service is.

Despite its street-feature smarts, Voxel51 isn’t going after self-driving cars to start. Companies in that space, like Waymo and Toyota, are pursuing fairly narrow, vertically oriented systems that are highly focused on identifying objects and behaviors specific to autonomous navigation. The priorities and needs are different from, say, a security firm or police force that monitors hundreds of cameras at once — and that’s where the company is headed right now. That’s consistent with the company’s pre-seed funding, which came from a NIST grant in the public safety sector.

Built with no human intervention from 250 hours of video, a sign/signal map like this would be helpful to many a municipality

“The first phase of go to market is focusing on smart cities and public safety,” Corso said. “We’re working with police departments that are focused on citizen safety. So the officers want to know, is there a fire breaking out, or is a crowd gathering where it shouldn’t be gathering?”

“Right now it’s an experimental pilot — our system runs alongside Baltimore’s CitiWatch,” he continued, referring to a crime-monitoring surveillance system in the city. “They have 800 cameras, and five or six retired cops that sit in a basement watching those — so we help them watch the right feed at the right time. Feedback has been exciting: When [CitiWatch overseer Major Hood] saw the output of our model, not just the person but the behavior, arguing or fighting, his eyes lit up.”

Now, let’s be honest — it sounds a bit dystopian, doesn’t it? But Corso was careful to note that they are not in the business of tracking individuals.

“We’re primarily privacy-preserving video analytics; we have no ability or interest in running face identification. We don’t focus on any kind of identity,” he said.

It’s good that the priority isn’t on identity, but it’s still a bit of a scary capability to be making available. And yet, as anyone can see, the capability is there — it’s just a matter of making it useful and helpful rather than simply creepy. While one can imagine unethical uses like cracking down on protestors, it’s also easy to imagine how useful this could be in an Amber or Silver alert situation. Bad guy in a beige Lexus? Boom, last seen here.

At any rate, the platform is impressive and the computer vision work that went into it even more so. It’s no surprise that the company has raised a bit of cash to move forward. The $2 million seed round was led by eLab Ventures, a Palo Alto and Ann Arbor-based VC firm, and the company earlier attracted the $1.25 million grant from NIST mentioned earlier.

The money will be used for the expected purposes, establishing the product, building out support and the non-technical side of the company and so on. The flexible pricing and near-instant (in video processing terms) results seem like something that will drive adoption fairly quick, given the huge volumes of untapped video out there. Expect to see more companies like Corso and Moore’s as the value of that video becomes clear.

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Apr
27

Cloud Stocks: MongoDB has Miles to go - Sramana Mitra

Tim Hsia & Neil Devani Contributor
Tim Hsia is the CEO of Media Mobilize and a Venture Partner at Digital Garage. Neil Devani is an angel investor and venture capitalist focused on companies solving hard problems.

Welcome to this transcribed edition of The Operators. TechCrunch is beginning to publish podcasts from industry experts, with transcriptions available for Extra Crunch members so you can read the conversation wherever you are.

The Operators features insiders from companies like Airbnb, Brex, Docsend, Facebook, Google, Lyft, Carta, Slack, Uber, and WeWork sharing their stories and tips on how to break into fields like marketing and product management. They also share best practices for entrepreneurs on how to hire and manage experts from domains outside their own.

This week’s edition features Airbnb’s Global Product Director of Customer and Community Support Platform Products, Andy Yasutake, and Carta’s Head of Enterprise Relationship Management, Jared Thomas.

Airbnb, one of the most valuable private tech companies in the world, has millions of hosts who trust strangers (guests) to come into their homes and hundreds of millions of guests who trust strangers (hosts) to provide a roof over their head. Carta, a $1 Billion+ company formerly known as eShares, is the leading provider of cap table management and valuation software, with thousands of customers and almost a million individual shareholders as users. Customers and users entrust Carta to manage their investments, a very serious responsibility requiring trust and security.

In this episode, Andy and Jared share with Neil how companies like Airbnb, Carta, and LinkedIn think about customer service, how to get into and succeed in the field and tech generally, and how founders should think about hiring and managing the customer support. With their experiences at two of tech’s trusted companies, Airbnb and Carta, this episode is packed with broad perspectives and deep insights.

Neil Devani and Tim Hsia created The Operators after seeing and hearing too many heady, philosophical podcasts about the future of tech, and not enough attention on the practical day-to-day work that makes it all happen.

Tim is the CEO & Founder of Media Mobilize, a media company and ad network, and a Venture Partner at Digital Garage. Tim is an early-stage investor in Workflow (acquired by Apple), Lime, FabFitFun, Oh My Green, Morning Brew, Girls Night In, The Hustle, Bright Cellars, and others.

Neil is an early-stage investor based in San Francisco with a focus on companies building stuff people need, solutions to very hard problems. Companies he’s invested in include Andela, Clearbit, Kudi, Recursion Pharmaceuticals, Solugen, and Vicarious Surgical.

If you’re interested in starting or accelerating your marketing career, or how to hire and manage this function, you can’t miss this episode!

The show:

The Operators brings experts with experience at companies like Airbnb, Brex, Docsend, Facebook, Google, Lyft, Carta, Slack, Uber, WeWork, etc. to share insider tips on how to break into fields like marketing and product management. They also share best practices for entrepreneurs on how to hire and manage experts from domains outside their own.

In this episode:

In Episode 5, we’re talking about customer service. Neil interviews Andy Yasutake, Airbnb’s Global Product Director of Customer and Community Support Platform Products, and Jared Thomas, Carta’s Head of Enterprise Relationship Management.

Neil Devani: Hello and welcome to the Operators, where we talk to entrepreneurs and executives from leading technology companies like Google, Facebook, Airbnb, and Carta about how to break into a new field, how to build a successful career, and how to hire and manage talent beyond your own expertise. We skip over the lofty prognostications from venture capitalists and storytime with founders to dig into the nuts and bolts of how it all works here from the people doing the real day to day work, the people who make it all happen, the people who know what it really takes. The Operators.

Today we are talking to two experts in customer service, one with hundreds of millions of individual paying customers and the other being the industry standard for managing equity investments. I’m your host, Neil Devani, and we’re coming to you today from Digital Garage in downtown San Francisco.

Joining me is Jared Thomas, head of Enterprise Relationship Management at Carta, a $1 billion-plus company after a recent round of financing led by Andreessen Horowitz. Carta, formerly known as eShares, is the leading provider of cap table management and valuation software with thousands of customers and almost a million individual shareholders as users. Customers and users trust Carta to manage their investments, a very serious responsibility requiring trust and security.

Also joining us is Andy Yasutake, the Global Product Director of Customer and Community Support Platform Products at Airbnb, one of the most valuable private tech startups today. Airbnb has millions of hosts who are trusting strangers to come into their homes and hundreds of millions of guests who are trusting someone to provide a roof over their head. The number of cases and types of cases that Andy and his team have to think about and manage boggle the mind. Jared and Andy, thank you for joining us.

Andy Yasutake: Thank you for having us.

Jared Thomas: Thank you so much.

Devani: To start, Andy, can you share your background and how you got to where you are today?

Yasutake: Sure. I’m originally from southern California. I was born and raised in LA. I went to USC for undergrad, University of Southern California, and I actually studied psychology and information systems.

Late-90s, the dot com was going on, I’d always been kind of interested in tech, went into management consulting at interstate consulting that became Accenture, and was in consulting for over 10 years and always worked on large systems of implementation of technology projects around customers. So customer service, sales transformation, anything around CRM, as kind of a foundation, but it was always very technical, but really loved the psychology part of it, the people side.

And so I was always on multiple consulting projects and one of the consulting projects with actually here in the Bay Area. I eventually moved up here 10 years ago and joined eBay, and at eBay I was the director of product for the customer services organization as well. And was there for five years.

I left for Linkedin, so another rocket ship that was growing and was the senior director of technology solutions and operations where I had all the kind of business enabling functions as well as the technology, and now have been at Airbnb for about four months. So I’m back to kind of my, my biggest passion around products and in the customer support and community experience and customer service world.

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Jan
14

Seattle’s ExtraHop expects $100M ARR in 2020, IPO the following year

Heads up all you enterprising enterprise software startuppers. You have only 24 hours before the price goes up on tickets to TC Sessions: Enterprise 2019. Save $100 and join us in San Francisco on September 5 — along with some of the industry’s top founders, CEOs, investors and technologists. Buy your early-bird ticket before 11:59 p.m. (PT) on August 9.

Enterprise is, without doubt, Silicon Valley’s 800-pound gorilla. No other startup category is as large, rich or competitive. In this day-long conference, we tackle the big topics and separate hype from reality. Artificial intelligence? Check. Cloud, Kubernetes, security and privacy, marketing automation, quantum? Yes. Investors, founders, and acquisition-hungry big enterprise companies? Tons of opportunity to network efficiently via CrunchMatch? Yeah, all that and more in 20 main-stage sessions — plus separate speaker Q&As and breakout sessions. Check out the day’s agenda.

Here’s a quick example of the type of programming you can expect.

Does the recent Capital One data breach have you up nights worried about the cost and consequences of cyberattacks? Don’t miss TechCrunch editor Zack Whittaker’s interview with Martin Casado (Andreessen Horowitz), Emily Heath (United Airlines) and Wendy Nather (Duo Security) in a session called, Keeping the Enterprise Secure.

Enterprises face a litany of threats from both inside and outside the firewall. Now more than ever, companies — especially startups — have to put security first. From preventing data from leaking to keeping bad actors out of your network, enterprises have it tough. How can you secure the enterprise without slowing growth? We’ll discuss the role of a modern CISO and how to move fast… without breaking things.

Looking for more ways to save or boost your ROI? Look no further. Buy four or more tickets at once and save 20% with the group discount. And, with every ticket you buy to TC Sessions: Enterprise, you’ll score a free Expo Only pass to TechCrunch Disrupt SF on October 2-4.

TC Sessions: Enterprise takes place on September 5, and if you want to save $100, you have just 24 hours left to act. The $249 early-bird ticket price remains in play until 11:59 p.m. (PT) on August 9. Buy your ticket now and save.

Is your company interested in sponsoring or exhibiting at TC Sessions: Enterprise 2019? Contact our sponsorship sales team by filling out this form.

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  10 Hits
Jul
22

Equipping AI with emotional intelligence can improve outcomes

Considering its unparalleled success, it was only a matter of time before a Brex copycat emerged.

Ramp Financial, a new startup led by Capital One-acquired Paribus founders Eric Glyman and Karim Atiyeh (pictured), has raised $7 million, TechCrunch has learned. The capital came from Keith Rabois of Founders Fund, BoxGroup’s Adam Rothenberg and Coatue Management, a hedge fund that recently launched a $700 million early-stage investment vehicle.

Ramp Financial, Founders Fund, BoxGroup and Coatue Management declined to comment.

Ramp Financial is in the very early stages of product development, though we’re told, “It’s the same as Brex .” Other details available on the new startup, which raised on a pre-money valuation of $25 million, according to sources, are slim. Even its name may be subject to change.

Brex, founded in 2017 by a pair of now 23-year-olds, created a corporate charge card tailored for startups. The Y Combinator graduate doesn’t require cardholders to submit Social Security numbers or credit scores, granting entrepreneurs a new avenue to credit and method of protecting their credit scores. Brex’s software also expedites the time-consuming expense management, and accounting and budgeting processes for employees. Quickly, it has become essential to the company-building process in Silicon Valley.

It helps that VCs are wild for Brex. The startup has raised more than $300 million in VC funding in only two years. Most recently, it closed a $100 million round led by Kleiner Perkins at a valuation of $2.6 billion.

Given Brex’s rapid growth and the uptick in venture capital investment in challenger banks, or new financial services competing with incumbent financiers, we’re guessing Ramp Financial didn’t have a tough time pitching VCs. Plus, its founders Glyman and Atiyeh have a clear track record of success.

The duo previously built Paribus, a startup acquired by Capital One roughly one year after launching onstage at TechCrunch Disrupt New York 2015. Paribus, which raised just over $2 million from Slow Ventures, General Catalyst, Greylock and others before the M&A transaction, helps online shoppers get money back when prices drop on items they’ve purchased. Terms of Capital One’s acquisition were not disclosed.

Paribus is also a graduate of Y Combinator, completing the startup accelerator in the summer of 2015.

Aside from both completing Y Combinator, the founders of Brex and Ramp Financial share connections to the PayPal mafia. Rabois, a general partner at Founders Fund, was an executive at the business in the early 2000s. PayPal co-founders Peter Thiel and Max Levchin are Brex investors.

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