Apr
03

$10 billion identity startup Okta launches a $50 million venture capital fund to invest in startups using blockchain and AI (OKTA)

Today, cloud identity management provider Okta unveiled Okta Ventures, a $50 million in-house venture fund focusing on early-stage identity and authentication startups that use artificial intelligence, machine learning, and blockchain technology.

Announced on-stage at the company's annual customer conference in San Francisco, Okta Ventures' first investment is in Trusted Key, a blockchain-based digital identity company that had previously raised $3 million. While Okta isn't disclosing the amount, the investment speaks to the company's interest in using blockchain to improve its flagship tool, which helps customers log in to multiple work apps with just their corporate username and password.

Read More:Okta's cofounder explains why it's buying an automation startup for $52.5 million in its biggest deal yet

The company says that the fund will invest in existing Okta partners in addition to other identity management startups. Portfolio companies will have access to Okta's products for the first year, in addition to the ability to build products that integrate with Okta's technology.

"We expect the partnerships with our portfolio companies to extend our platform, and we're committed to providing significant value to these early stage startups," said Okta Cofounder and COO Frederic Kerrest in a prepared statement. "Trusted Key is a perfect example of a young company working on a big idea, and we look forward to collaborating to shape the future of identity."

According to a TechCrunch report, Okta Ventures will invest between $250,000 and $2 million in eight to 10 early-stage businesses per year.

Okta went public in 2017 in one of the first pure-cloud subscription-based company IPOs. It raised $231 million from Sequoia, Andreessen Horowitz, Greylock, Khosla Ventures, and Floodgate before going public.

Original author: Megan Hernbroth

Continue reading
  84 Hits
Jun
10

BlackRock backs Trustly, bank transfer payments platform now valued at over $1B

Wayne Jackson has got a decent record when it comes to growing a business and exiting at a bumper valuation — he's done it twice before, and is well on the way to repeating the trick a third time.

Jackson, a 56-year-old tech veteran, built his reputation by cofounding wireless infrastructure company Riverbed Technologies. He served as the firm's CEO for nearly three years before selling to Aether Systems for more than $1 billion in March 2000.

From Riverbed, he joined network security company Sourcefire in 2002. He steered the company through an IPO in 2007 that raised more than $70 million. Jackson departed a year later, and Sourcefire went on to be acquired by Cisco for $2.7 billion in 2013.

Jackson is now the CEO of Sonatype, a company that helps firms vet the software components they use. He joined in 2010 and last September, the startup announced it had raised $80 million in a funding round led by TPG Capital. Although Sonatype would not disclose its valuation, it has raised $154.7 million since it was founded in 2008.

The recent raise will help Sonatype build out its Nexus platform. Nexus is a vast software repository which helps keep everything in the DevOps cycle secure and up-to-date. Sonatype describes it as "the world's best way to organize, store, and distribute software components." Clients include Equifax, Salesforce, EDF, and Delta Airlines.

Although not obviously the most glamorous of Silicon Valley startups, the companies Jackson has served have one thing in common: They super-serve a specific market. And it's this that Jackson highlights when sharing his advice on growing a successful tech business.

"Find a niche you can serve," Jackson said. "At Sonatype, for example, we arguably know more about open source projects than you could possibly know. The area Sonatype serves is interesting enough to find its market, but still specific enough that giants such as Google aren't necessarily going to look at what we do and think: We should be doing that."

This is a theory also beloved by some of the most successful venture capital investors in tech. They call it "product-market fit."

Read more: Sonatype Nexus Named Best Open Source DevOps Tool

Jackson continued: "But also, ask whether a traditional startup can even win in the market you're going into. You could argue that some ideas, such as the cloud, were always going to be too big for startups to have turned into a reality. Only a Google or an Amazon could really have engineered the cloud. Businesses need to be grown in the context of the markets that they serve.

"Back when I was at Riverbed, we positioned ourselves as a partner to bigger companies such as Cisco and IBM. Whereas with Sonatype, I don't think that approach would work, because the DevOps market is so new."

With such a stellar CV, it is easy to forget Jackson didn't always have it his way. When he was a graduate with no definite career plans, he lost his job as an assistant comptroller for a resort company in Virginia in 1991. In a 2011 interview with The Washington Post, he described the experience as "eviscerating."

Now, he says tech is a very safe bet for graduates. "Attaching yourself to tech bullet-proofs your future," he told Business Insider. "Attaching yourself to tech doesn't necessarily mean becoming a coder. It could be that you become very good at understanding and explaining concepts — writing is technical. Clear, crisp information delivery is a skill unto itself, and I think that'll be the case for a very long time."

As an established figure in the tech world, and with his background on cybersecurity at Sonatype, Jackson has some strident views on the approach to privacy of firms like Facebook. Mark Zuckerberg's company has made noises about safeguarding user privacy and becoming more transparent. But Jackson isn't buying it.

"The idea that Facebook is focusing on privacy? I think it's laughable, and laughable on many levels. Of course, Facebook isn't concerned with privacy. That's the way it's designed. It's the same with Gmail," he said. Not that he thinks regulation is the answer.

"I tend to be fairly anti-regulation — but not because I think tech companies are noble. I think the Facebooks and the Googles of this world should be more aggressive in making it known what they're doing with people's data. From then on, once it has been made known, Facebook's and Google's services should be opt-in."

Original author: Charlie Wood

Continue reading
  49 Hits
Apr
03

Roku drops after report says Amazon is turning up the heat on streaming (ROKU)

Marcio Jose Sanchez/AP

Roku shares dropped Wednesday afternoon following a report that said Amazon was looking to expand its streaming offerings.Amazon has "talked to executives at media companies and advertising agencies about its plans to include more ad-supported streaming channels to compete with Roku and Pluto TV," Cheddar reported.Watch Roku trade live.

In what's become a familiar stock-market reaction to Amazon's plans to extend itself into an industry, shares of Roku fell as much as 3.2% Wednesday after it was reported that the e-commerce giant is looking to expand its streaming offerings.

Amazon is planning a "vast" expansion of its free streaming service on Amazon Fire TV devices, asking marketers to pledge millions of dollars to support the new offerings Cheddar reported, citing multiple people who held discussions with Amazon. Amazon declined to comment to Cheddar.

"Amazon has talked to executives at media companies and advertising agencies about its plans to include more ad-supported streaming channels to compete with Roku and Pluto TV, which offer free access to TV shows and movies with commercials," Cheddar's Michelle Castillo reported.

Advertisers are reportedly reluctant to pledge money before they know what content might be available on the new channels, and some buyers said Amazon is asking for "as much as a large cable network for advertising commitments."

Roku is the latest in a string of companies that have seen their share prices dip, if only briefly, following news that Amazon is expanding, or looking into expanding, into a given industry.

In March, shares of the grocery stores Kroger and Costco fell after The Wall Street Journal reported Amazon was planning to open its own grocery stores in the US at a lower price point than Whole Foods — the chain it bought two years ago.

And last year, pharmacy stocks like Walgreens Boots Alliance, CVS, and Rite Aid took a tumble after Amazon bought the startup PillPack.

Wednesday's slide did little to dent Roku's recent rally. Shares were still up 126% this year, trading at $68.40 apiece.

Now read more markets coverage from Markets Insider and Business Insider:

Markets Insider

Original author: Rebecca Ungarino

Continue reading
  93 Hits
Jun
04

Cowboy releases updated e-bike with new carbon belt

Facebook has found a novel solution to the never-ending deluge of negative headlines and news articles criticizing the company: Simply paying a British newspaper to run laudatory stories about it.

Facebook has partnered with The Daily Telegraph, a broadsheet British newspaper, to run a series of features about the company, Business Insider has found — including stories that defend it on hot-button issues it has been criticised over like terrorist content, online safety, cyberbullying, fake accounts, and hate speech.

The series — called "Being human in the information age" — has published 26 stories over the last month, to run in print and online, and is produced by Telegraph Spark, the newspaper's sponsored content unit.

"Fake news, cyberbullying, artificial intelligence — it seems like life in the internet age can be a scary place," the articles say. "That's why Telegraph Spark and Facebook have teamed up to show how Facebook and other social media platforms are harnessing the power of the internet to protect your personal data."

Sponsored native content, in which companies pay for media organizations to produce positive articles that appear similar to traditional news stories, are an increasingly popular method of monetization for many publications, including Business Insider. Some studies have been critical of the ad format, arguing they can mislead news consumers.

Facebook's recent use of the format highlights how in its attempts to burnish its image after years of damaging scandals, the company is exploring ways to sidestep the critical media ecosystem entirely and get out a positive, unadulterated message about itself.

In an email, Facebook spokesperson Vicky Gomes said that "this is a part of our larger marketing efforts in the UK with the goal of educating and driving awareness of our local investments, initiatives, and partnerships here in the UK that have a positive impact on people's lives."

"As part of this campaign, we've partnered with the Telegraph and there will be some profiles of London-based employees working on some of the toughest issues to keep our platform safe, as well as articles to educate people on topics like how to spot fake news and how to adjust their privacy settings," Gomes said.

An example of a story in the series. They're labeled "Brought to you by Facebook," and appear similar to ordinary news stories. The Telegraph

The stories dismiss 'technofears' about the impact of technology on society

On March 13, the series ran a feature headlined "What action is Facebook taking to tackle terrorist content?", which discussed Facebook's work to "ensure terrorist content is identified and removed as swiftly as possible."

Two days later, a gunman opened fire at mosques in Christchurch, New Zealand, killing 50 people and livestreaming the entire attack on Facebook.

"The same week of the Christchurch attack, @Facebook told us in a sponsored puff piece in the @Telegraph that they have terrorist content under control," the European branch of policy organization Counter Extremism Project tweeted at the time. "This week, the picture looks very different."

The subjects of the sponsored stories in The Daily Telegraph, an influential, 150-year-old right-leaning daily newspaper, that ran throughout March included everything from artificial intelligence to female objectification and combatting scammers online— as well as issues that the company has been criticized for.

"Tackling hate speech and terrorism on social media" talks approvingly of Facebook and other social network's attempts to crack down on extremist content, but doesn't go into detail about efforts to tackle white supremacist content on Facebook, over which the company has been heavily criticized. On Tuesday, the Huffington Post reported that Facebook refused to take down a video that attacked Jews and promoted white nationalist talking points, despite the company's new rules banning white nationalism.

"How to deal with cyberbullying" provides guidance for children who have been harassed and bullied online — an issue that Facebook-owned photo-sharing app Instagram has been scrutinized over, including in an investigation by The Atlantic.

And another, "Why have technofears dominated history?," written by well-known author and geneticist Adam Rutherford, dismisses broadly skeptical attitudes towards technology, including the growing argument that screen-time can adversely affect children's' development:

"This is an important discussion: does screen-time actually cause harm? It's an area scientists might term 'opinion rich, data poor'. Intuitively, it may feel that kids glued to their phones or wired into a PlayStation 4 causes more harm than good. But science is here to distinguish what we feel from what is true. And the truth is that there is very little evidence to suggest that screen-time is a significant factor in real social and personal issues, including wellbeing, depression and violence.

...

"We are a technological species, and always have been. Maybe the speed of change feels overwhelming, and what is normal to our children is scary for us. But that is the same as it ever was. There may well be qualitative differences in what being online can now offer us in benefits or subterfuge, but we will only progress if we engage with the ever-changing yet ultimately unvarying relationship we have with technology."

A different column, by neuroscientist Dr. Dean Burnett ("Has the biggest danger of the internet been left unchecked?"), suggests the biggest problem facing the internet is that it "makes it easier than ever to find people to agree with you."

The landing page for the series, "Being human in the information age." The Daily Telegraph

Facebook's go-to talking points are all here

Facebook has also produced interviews with some of its European employees as part of the series.

There's one with Steve Hatch, VP of Northern Europe, that's headlined "Why Facebook's mission is to bring the world closer together." Hatch's remarks are largely familiar company talking points — "With a platform of more than 2.2 billion, we have a big responsibility," " "let me say that we never sell people's data," "we've learned that people don't necessarily dislike advertisements per se, just ads that aren't relevant and waste their time," and so on.

And in "'We want to make Facebook safe for everyone,'" product manager Tim Matthews emphasizes Facebook's growth on its "safety and security" team. "We're taking serious measures to get this right. In the past year alone we have more than doubled our safety and security team to 30,000 and invested significantly in cutting-edge technology to help us remove abusive content quicker," he is quoted as saying.

Other articles talk about Facebook's charitable giving efforts ("How donating on Facebook has transformed fundraising"), a column from former Olympic swimmer Mark Foster about the need for online behavior classes for school kids ("Does freedom of expression online need a code of conduct?"), and a short feature by author Wendy McElroy about internet crypto-libertarianism ("How crypto-anarchism redefines the fight for freedom in the 21st century").

It's not clear how much Facebook is paying The Daily Telegraph for the articles, or who comes up with the initial story ideas. A Facebook spokesperson did not answer further questions about the partnership. The Daily Telegraph did not respond to Business Insider's request for comment.

Facebook has paid for sponsored content with British newspapers before — but on far less politically charged issues. In 2016 and 2017, before its current wave of scandals, it ran a number of stories in left-leaning The Guardian on subjects like growing your business with video, understanding customers, and case studies of succesful companies. The Guardian articles are now offline, b ut remain accessible via the Internet Archive.

Do you work at Facebook? Contact this reporter via encrypted messaging app Signal at +1 (650) 636-6268 using a non-work phone, email at This email address is being protected from spambots. You need JavaScript enabled to view it., Telegram or WeChat at robaeprice, or Twitter DM at @robaeprice. (PR pitches by email only, please.) You can also contact Business Insider securely via SecureDrop.

Read more:

Original author: Rob Price

Continue reading
  94 Hits
Apr
03

Talking the future of media with Northzone’s Pär-Jörgen Pärson

We live in the subscription streaming era of media. Across film, TV, music, and audiobooks, subscription streaming platforms now shape the market. Gaming and podcasting could be next. Where are the startup opportunities in this shift, and in the next shift that will occur?

I sat down with Pär-Jörgen “PJ” Pärson, a partner at European venture firm Northzone, to discuss this at SLUSH this past winter. Pärson – a Swede who now runs Northzone’s office in NYC – led the top early-stage investor in Spotify and led the $35 million Series C in $45/month sports streaming service fuboTV (which has roughly 250,000 subscribers).

In the transcript below, we dive into the core investment thesis that has guided him for 20 years, how he went from running a fish distribution to running a VC firm, his best practices for effective board meetings and VC-entrepreneur relationships, and his assessment of the big social platforms, AR/VR, voice interfaces, blockchain, and the frontier of media. It has been edited for length and clarity.

From Fish to VC

Eric Peckham:

Northzone isn’t your first VC firm — Back in 1998, you created Cell Ventures, which was more of a holding company or studio model. What was your playbook then?

Continue reading
  64 Hits
Apr
03

Apple picked a bad name for its new streaming service — here's why that matters (AAPL)

Apple's new streaming service is called Apple TV Plus.

It's a bad name.

Why is that? Well, here's the description for Apple TV Plus, straight from Apple's website (emphasis mine):

Introducing Apple TV+, a new streaming service where the most creative minds in TV and film tell the kinds of stories only they can. Featuring original shows and movies across every genre, exclusively on the Apple TV app.

Apple

The name Apple TV Plus simply doesn't address that this service could also be a place for movies, or perhaps even other types of multimedia like documentaries or video podcasts.

It's odd that Apple would choose a name that makes it sound like the service is only about TV, especially since Apple made a big deal of how you can watch these shows on any Apple device you own.

The name Apple TV Plus is also confusing in general. Apple already sells something called the Apple TV, which is a streaming set-top box sold in stores and online. People could very easily assume Apple TV Plus is simply upgraded hardware, or maybe they think they need a physical Apple TV in order to watch these new shows — a reasonable conclusion, based on the name — when that's not the case.

Names matter: All words have a psychological effect, and people subconsciously correlate names with ideas. Apple whiffed big time with the name Apple TV Plus, and changing the name at this point would make Apple look incompetent. Apple picked the name, and it now has to live with it.

Apple should have given this service a name that actually encapsulates what it is: a place to watch original movies, shows, and other types of multimedia that are at least partially produced by Apple. It could have been called Apple Originals, or Apple Premium, or even Apple Prime if it wanted to get cheeky with its newfound media streaming rival, Amazon. But the name Apple TV Plus feels confusing, short-sighted, and singularly focused on TV shows, when it's supposed to be more than that.

Original author: Dave Smith

Continue reading
  58 Hits
Apr
03

Femtech’s billion-dollar year

There are a lot of people who never thought they’d see the day venture capitalists would funnel millions into femtech businesses, direct-to-consumer tampon retailers no less. But that’s our new reality and Cora is proof.

San Francisco-based Cora, which develops and sells organic tampons, pads and other personal care products, has just closed a $7.5 million Series A led by Harbinger Ventures. Cora is one of many femtech startups to raise funding this week alone, in what is turning out to be a red-hot year for VC investment in the space.

Femtech, defined as any software, diagnostics, products and services that leverage technology to improve women’s health, has attracted at least $241 million in VC funding so far this year, according to PitchBook. That puts the sector on pace to secure nearly $1 billion in investment by year-end, greatly surpassing last year’s record of $650 million. For more historical context, startups in the space brought in only $62 million in 2012, $225 million in 2014 and $231 million in 2016.

“Investors have realized there is a huge pent-up demand in the market for healthier products for women,” Cora co-founder Molly Hayward tells TechCrunch. The way in which the VC world is structured, there just has not been a lot of representation. It’s really difficult to understand the value of a product you aren’t ever going to use or to understand a problem you aren’t ever going to have, particularly around period care. This isn’t something we were talking about as a society five years ago.”

The four-year-old startup operates a little differently than your run-of-the-mill D2C company. Like TOMS, the popular footwear brand, Cora donates a month’s supply of products for every month’s supply sold. To date, Cora has donated 5 million pads to girls in India and Kenya and 100,000 products to women in the U.S.

“To me, [Cora] was this incredible, holistic opportunity to change the way that women experience their period,” Hayward said.

Investors must be excited about Cora’s growth. Though she didn’t disclose specific numbers, Hayward says the brand has expanded 400 percent year-over-year, a metric they are expecting to sustain with this new bout of funding. Cora’s products are sold on a subscription basis, with prices ranging from $8 per month for six tampons to $16 per month for 24. For those unfamiliar with the costs of such products, $8 for six tampons comes at quite the premium. A box of 50 Playtex tampons, for example, retails for around $9.

In Cora’s case, customers are shelling out extra cash for millennial-inspired branding, a soothing unboxing experience and a general ease of access to its products, as well as Cora’s organic, hypoallergenic and compostable materials, which aren’t characteristic of many similar products on the market.

Cora plans to use the capital to put more of its items in Target stores, where it already sells its tampons and pads, and expand its portfolio of products. As part of the funding, Cora has added two more women to its board of directors: Lisa Bougie, the former GM of Stitch Fix, and Andrea Freedman, the former chief financial officer of Method. Its board is now 80 percent female.

Continue reading
  66 Hits
Aug
08

Evo Japan is back and bigger than ever in 2023

Wireless, compact, and easy to use, Apple AirPods are one of the most convenient pieces of audio hardware out there these days.

While compatible with any Bluetooth device, they integrate seamlessly with any iPhone running iOS 10 or a later system. And ever since Apple removed the headphone jack starting with the iPhone 7, this ease of connectivity is more important than ever.

AirPods offer up to five continuous hours of audio, they can be charged simply by putting them in their case, you can control many functions with a gentle tap, they allow you to take and make calls, and they work with Siri. Until they get wet, that is — then they probably won't work at all.

AirPods are not waterproof or water-resistant

Apple makes no claims that its AirPods resist water damage. In fact, they state quite clearly on a Support webpage that "Your AirPods and charging case aren't waterproof or water-resistant, so be careful not to get moisture in any openings."

And Apple won't cover damage caused by water — you'll have to replace your AirPods out of your own pocket.

So keep your AirPods dry by not wearing them in the rain, keeping them away from water, taking them out when you're going to be sweating, and by only cleaning them with a dry cloth or a soft bristled brush.

There are other water-resistant earbud options

Zover wireless earbuds boast a water-resistance rating of IPX7.Amazon

AirPods are great thanks to their perfect pairing with other Apple devices, but if you want a set of earbuds you can wear while you exercise, while it rains, or when you're around water, then you need to look elsewhere.

If you don't mind a slender wire wrapping around the back of your neck, AUKEY offers their $59 water-resistant B80 earbuds for a hundred dollars less than a new set of Apple AirPods, and they will connect just fine with your iPhone.

A company called Zover even offers fully wire-free earbuds rated at IPX7 waterproofing that were designed for use during jogs or workouts, and at a reasonable price of $59.99.

On the higher-end side of things, the Bragi Dash Pro wireless headphones are another pair that feature water resistance, though they clock in at $239 or more on Amazon.

Original author: Steven John

Continue reading
  65 Hits
Aug
06

The future of work in the tech industry

When Verizon bought AOL back in 2015, the big idea was that its combination of Verizon's data and AOL's content and tech would challenge Google and Facebook for digital advertising.

That mission now seems further than ever from being fulfilled.

Since then, the media arm has gone through two ridiculed rebrandings, first as Oath in 2017, then as Verizon Media in January. It's lost its champion, former CEO Tim Armstrong; shut its struggling mobile video service Go90; and laid off staff.

Read more: Verizon revealed its plans for Yahoo Finance in a meeting with ad-industry insiders, and they include testing a $55-a-month subscription service

Then, in January, Verizon CEO Hans Vestberg walked back the idea that the media arm could use Verizon's phone and Fios set-top customer data to rival Google and Facebook, instead saying the media arm needed to survive on its own merits.

All that puts Verizon Media in a tough position with ad buyers who are hungry for a competitive alternative to Google and Facebook, with their ease of buying and ability to target at scale.

Verizon Media execs say the company's committed to the business

Last week Verizon Media leaders gave their pitch to the Verizon Media Agency Advisory Council, a dozen or so top ad agency execs that the company periodically convenes to share updates with and seek feedback from.

Leading the meeting was Jeff Lucas, Snap's former head of sales who joined Verizon last year as VP, head of North American sales and global client solutions. The meeting covered Verizon Media's strategy, from ad products to subscription services and premium-content plans, and was meant to send the message that the Verizon corporate parent is fully committed to its media arm that Verizon spent $10 billion to acquire.

But to attendees and agency execs who follow the company, the message is just as muddled as it's been the past year.

This story is based on a Verizon-written recap of the meeting viewed by Business Insider and interviews with four buyers, including three who attended the meeting.

Asked to comment, a Verizon Media spokesperson said: "We're always engaging with clients on prospective industry trends and potential for the business. We see tremendous value in our consumer brands and look forward to future public announcements."

The bad: Verizon has fallen short on challenging Facebook and Google

Top on the list of disappointments is what buyers saw as Verizon's failure to deliver on its goal of marrying its data and media to offer an alternative to Facebook and Google, which are gobbling digital media's lunch.

"I'm disappointed that they still haven't figured out the sum of the parts," said one attendee. "Verizon Media still feels like a collection of things. Fios isn't part of it. I wanted to see them get beyond impression-based monetization."

Agency attitudes about data were mixed, though. Since Verizon bought AOL and Yahoo, Europe's General Data Protection Regulation and the California Consumer Privacy Act passed. Facebook is getting regularly beat up about user privacy lapses. That's made buyers and sellers cautious about how far they can or want to go in fulfilling that goal now, with Verizon or any media company.

"The storyline might be connectivity, of all these people and behavior," said a second attendee. "But I don't know if that's what I want anymore. The landscape has never been more fraught with concerns about privacy and how data is used. And for this industry, that's saying a lot."

The message people took away from the meeting was that Verizon was highly concerned about protecting its customers' privacy. "Verizon is 10 times as paranoid about data than anyone in this room," a third agency exec recalled a Verizon Media exec saying at the meeting.

Verizon Media execs went on to stress that if clients wanted to bring their own customer data to media buys, that was just fine. It's a "walled garden but with a door," as the third exec summed up the pitch.

One theory floated by these agency execs is that Verizon is so concerned about misuse of its customer data, especially in this privacy-sensitive era, that it won't entrust it to its own media arm, which which like other media companies historically has been driven by different incentives. Advertisers can target ads using anonymized Yahoo email addresses, for example.

"They're so cavalier about reading Yahoo Mail — but the Verizon world is not at all," the first exec said.

The good: Verizon has 5G going for it, and some attendees walked away enthusiastic about its programmatic ad offering

There were some positive reactions from the meeting. Attendees said Verizon Media execs seemed honest and well intentioned. The new corporate name, Verizon Media Group, was seen as smart because it trades on Verizon's positive associations as being rich in data and tech-savvy.

Verizon has become closely identified with 5G, which is talked about as world-changing, with faster internet speeds. But no one really knows for sure what kind of new world 5G will lead to.

Verizon showed the gathering a concept of how 5G could change entertainment by showing a video souped up by augmented reality, and talked about how 5G could help it create video cheaper and faster. The benefits to advertisers and consumers seemed far off, though.

"5G is a potential differentiator for Verizon but they can't do anything with it," the third exec said.

Ad buyers in the past have given Oath credit for simplifying its ad tech.

This time, buyers were positive about Verizon Media's programmatic ad story after leaving the meeting. Verizon Media execs also stressed that it prioritized transparency in programmatic ad transactions, acknowledging transparency is a big concern among advertisers.

Buyers expressed enthusiasm over a new programmatic buying tool, Omniscope, that Verizon Media pitched as helping advertisers spend media dollars more efficiently; and a new partnership with a company called Amino that gives transparency into how programmatic fees break down.

Mixed: Some attendees were unconvinced by Verizon's content plans

Content initiatives got mixed reviews. Verizon Media said Yahoo Finance was about to launch a new subscription service that it's beta-testing at monthly prices of $35 to $55. The first attendee criticized it as niche and pricey.

Yahoo Sports was leaning into fantasy by developing a portfolio of fantasy games. The unit also is exploring now legalized online betting. Reaction ranged from enthusiasm that Verizon is leaning into hot growth areas to concern about the potential negative societal influence of sports betting.

But agencies continue to question the value today of Verizon Media's content brands like Yahoo Finance, AOL, and HuffPost and if they're special enough to warrant buying them when there are simpler options out there.

"They need a story," said a senior media agency exec. "They've been talking about leveraging the Verizon data for years. The content story's been all over the place."

"Facebook and Google are so easy to buy, and AOL's just a mess," said the third buyer.

Abby Jackson contributed reporting.

Original author: Lucia Moses

Continue reading
  68 Hits
Apr
03

How to change or reset your iPad's passcode, even if you don't know what the passcode is

Whether you've forgotten your iPad password for the umpteenth time, or need to change it ASAP now that your annoying older brother knows the code, it's easy to update your iPad password once you know how.

Here are the steps you need to follow to reset your passcode:

How to reset your passcode if you know what the passcode is

If you know your current passcode but for one reason or another want to reset it, then you should do the following:

1. Log in to your iPad using your current passcode or, depending on your iPad model, use Touch ID or Face ID.

2. Go to the Settings app, which looks like a gray gear.

3. Scroll down to "Passcode," which on newer devices may be called "Touch ID & Passcode"

Your iPad will ask for your passcode to verify that it's really you trying to change it. Christine Kopaczewski/Business Insider

4. Enter your current passcode and scroll down to "Change Passcode." You will have to enter your current passcode again.

5. You can now enter your 6-Digit Numeric passcode, or click on "Passcode Options" to set a Custom Alphanumeric Code, Custom Numeric Code, or the classic 4-Digit Numeric Code.

There are many different ways to format your passcode. Christine Kopaczewski/Business Insider

6. Enter your passcode twice and voila, you're done!

How to reset your iPad's passcode if you forget it

If you have an iPad that supports Touch or Face ID, you might not think that this is a big issue. But to access certain security settings, you'll need your passcode.

Additionally, if your iPad ever turns off you'll need to use your passcode once it turns back on before you can use Touch ID or Face ID again.

The only way to fix this issue is to fully reset your iPad to its factory defaults. If you have a newer model and are still able to access your device using Touch ID or Face ID, login and backup the iPad to the iCloud or a computer before resetting.

If you cannot access your iPad, you'll unfortunately have to say goodbye to your data.

You have two options for resetting your iPad: connecting it to a computer you've previously synced it with, or by logging into your iCloud account online. Once your device has been wiped and is reset, you'll have the opportunity to restore a previous backup or set it up as a new iPad.

How to use a synced computer with iTunes to reset your iPad

If you have previously synced your iPad with iTunes on your computer and given your computer access to your device, you'll be able to use this method.

1. Plug your device into your computer and open iTunes. If possible, make sure your computer is connected to the internet.

2. You will now be able to access your iPad. If you are unable to access your iPad or it asks you to unlock your device, then you haven't previously used this computer and you will not be able to continue with this method.

Click the device icon to open your device. Apple

3. Open the device in iTunes and click "Restore iPad."

The main page will look virtually the same whether you connect an iPhone or iPad. Apple

4. It will ask if you're sure and warn you that doing this will wipe all your data from the iPad. Click "Restore."

Once erased, you'll have the option to restore your iPad using a backup. Apple

5. Your iPad will be erased and restart as if it were a brand-new device. You can now set it up as a new iPad or restore it from a backup on your computer or the iCloud.

How to reset your iPad using your iCloud account

If you haven't previously synced your device with a computer, then you'll have to login to your iCloud account to reset your iPad. This method is usually used if your device is lost or stolen but can also be used if you've forgotten your passcode.

1. Go to iCloud.com and log in to your iCloud account.

iCloud is a great resource for accessing info about your iOS devices. iCloud

2. Click on "Find My iPhone." At the top of the screen, click "All Devices," and select your iPad.

Select the "Find iPhone" icon. iCloud

3. Click "Erase iPad."

Select "Erase iPad." Christine Kopaczewski/Business Insider

4. It will warn you that all your data will be lost, and you won't be able to track the device anymore. Click "Erase."

Confirm that you want to erase your iPad's data, and the passcode along with it. Christine Kopaczewski/Business Insider

5. Your device will be remotely accessed and reset to factory settings. You can now set it up as a new iPad, or restore it from a backup that you've saved to iCloud.

Original author: Christine Kopaczewski

Continue reading
  73 Hits
Apr
03

The uncertain future of shared electric scooters

Cities all over the world have seen an influx of two-wheeled, electric kick scooters on the road over the last couple of years. Scooters from the likes of Bird, Lime, Spin, Uber’s JUMP, Lyft and others are all trying to own the first and the last mile. The first mile is often understood as the distance between a transportation hub and someone’s starting point while the last mile is the distance between a transportation hub and someone’s final destination. These companies want both, and some (Uber, Lyft) also want everything in between.

The rise of electric scooters is often compared to the rise of ride-hailing, but there are some key differences at play. For one, cities are in charge of regulation — not the states. And since these are much smaller vehicles, cities can easily pick them up and throw them in the back of a truck if they become a nuisance. Meanwhile, as part of city regulation, data-sharing is not optional — it’s a requirement in order for companies to receive permission to deploy scooters on city streets.

The startup ecosystem had become accustomed to the ethos of begging for forgiveness, rather than asking for permission. But that’s not the case with electric scooters. These companies have found their entire businesses to be contingent on the continued approval from individual cities all over the world. That inherently creates a number of potential conflicts.

It’s also unclear whether the increase in people riding scooters is indicative of people adopting shared services or simply adopting a new mode of transportation. Some industry insiders wonder if it’s just a matter of time between consumers ditch shared scooters in exchange for their own. 

Between city regulators capping the growth of operators, the vast number of companies going after the first and last miles and the threat of the shift from shared to ownership, it’s all going to come down to the survival of the fittest.

At the mercy of cities

Unlike the ride-sharing market, electric scooter operators are entirely dependent upon cities. These cities, rightfully so, have a number of concerns ranging from safety to sidewalk congestion to equal access to transportation.

Continue reading
  38 Hits
Jul
06

Lyft goes biking, Airbnb is going public (eventually), big money for software robots and Juul

We profiled HyperSciences in February, when the team had just successfully completed a launch milestone for a small business grant with NASA. The last time we checked in, the hypersonic drilling company had raised about $5 million as part of an untraditional Reg A offering. By the end of March, HyperSciences rounded out its first major round with $9.6 million from 3,552 individual investors on SeedInvest in the equity crowdfunding platform’s second largest raise to date.

The heart of HyperSciences’ work is its hypersonic propulsion system that can fire a projectile at five times the speed of sound. At its most simplistic, HyperSciences’ hypersonic engine can fire upward to power suborbital space launches (HyperDrone) and point downward to penetrate deep pockets of geothermal energy, for example (HyperDrill).

Rather than going the normal venture capital route, HyperSciences decided to raise from regular people who believed in its vision. The way the company sees it, traditional VC would have likely forced HyperSciences to narrow its mission.

“Reg A lets everyone who cares about our planned hypersonic future vote with their checkbook,” HyperSciences founder and CEO Mark Russell told TechCrunch. “I think that’s important.” Russell comes from a family-run mining business and is no stranger to the challenges of a public company.

“I’ve learned a lot from running ops in the back offices,” Russell said. “Based on our public company experiences, we do like that the SEC Reg A process has a clear path to taking your company to the public markets as the next step in the process.”

With infusions of $125,000 from NASA’s Small Business Innovation Research grant and $1 million from Shell’s Global’s GameChanger program, HyperSciences is happy to bounce between research grants with a boost from the Reg A’s special form of “mini-IPO” in order to maintain its autonomy for the time being.

Russell explained that the Reg A’s intensive SEC process requires a fair level of maturity from a company — and enough capital to jump through all the hoops. “You’re not typically a seller of t-shirts in Reg A crowd financing,” Russell said.

HyperSciences’ next milestone will come in May when the company will demo its drilling tech in a field test for Shell. The company plans to leverage its new funding for additional future field testing, pushing its existing business plan forward and moving toward sustainability.

“Our investors are more like smart ‘crowd VCs.’ They’re generally are pretty savvy and see that we went through a stringent process to get here,” Russell said. “We’ve provided them with enough information to make a great decision.”

Continue reading
  41 Hits
Apr
03

1Mby1M Virtual Accelerator Investor Forum: With Swapna Gupta of Qualcomm Ventures (Part 3) - Sramana Mitra

Sramana Mitra: Technology consumer products and consumer electronics hasn’t really happened in India. It’s all been from elsewhere. China is very strong. Chinese products come into India...

___

Original author: Sramana Mitra

Continue reading
  25 Hits
Apr
03

How to delete channels on your Roku device in three ways

When you're looking to delete a channel from your Roku device, there are a few things you should consider.

Before removing a paid channel, check its subscription status at my.roku.com to determine if it is billed through your Roku account.

Channel subscriptions are typically prepaid and will auto renew unless cancelled. You must cancel the subscription associated with a paid channel before you can remove it from your account.

The process of removing channels from Roku is quick and easy. You can remove a channel through your Roku device or the Roku mobile app. Here's how:

How to remove a channel from your channel lineup on the Roku device

1. From the Home screen, find the channel you want to remove and press the star button (*) on your remote to open the channel details.

Every channel shares the same options menu. Michelle Greenlee/Business Insider

2. Select "Remove channel" from the list of options and press OK on the remote.

3. Confirm your choice to remove the channel by selecting "Remove" and pressing OK.

Removed channels can be reinstalled at any time. Michelle Greenlee/Business Insider

How to remove an installed channel from the Roku Channel Store on the Roku device

1. From the menu on the left, scroll to find Streaming Channels. Press OK to open the Channel Store.

2. Scroll to find the channel you wish to remove. Press OK to open the channel details.

3. Select "Remove channel" from the list of options. Confirm your choice when prompted by the onscreen dialog box.

The Channel Store offers many of the same options as the star button menu. Michelle Greenlee/Business Insider

Installed channels are indicated by a small checkmark in the lower right corner of a channel tile.

Installation checkmarks can occasionally be difficult to see on light-colored logos. Michelle Greenlee/Business Insider

How to remove a channel using the Roku mobile app

The Roku app is available for free on iOS and Android mobile devices. Install the app if needed before beginning.

1. Launch the Roku mobile app.

2. Tap the Channels menu at the bottom of the of the app.

The Roku app allows you to find new channels and edit the ones you already have. Michelle Greenlee/Business Insider

3. Tap My Channels at the top, to open your list of installed channels.

The Channels tab will list every channel you have downloaded. Michelle Greenlee/Business Insider

4. Find the channel you wish to remove and long-press its icon to open the channel details screen. Just tapping the channel icon will start the channel and open the Roku remote on the app.

You can launch the app from this menu as well. Michelle Greenlee/Business Insider

5. From the channel details screen, tap Remove. You will be prompted to confirm your choice. Once confirmed, the channel will be deleted.

Removing a channel should only take a few moments. Michelle Greenlee/Business Insider

Original author: Michelle Greenlee

Continue reading
  69 Hits
Apr
03

Carl Icahn reportedly dumped his entire Lyft stake ahead of its IPO (LYFT)

Carl Icahn reportedly dumped his entire Lyft stake ahead of its IPO (LYFT) | Markets Insider
Arjun Reddy Apr. 3, 2019, 03:06 PM
"; } } tableString += ""; } tableString += ""; } } tableString += ""; $('#detail-news-table').html(tableString); try { trackPI(); } catch (e) { } }; function insertNewsHelp() { var help = "To give you an overview of the large number of messages that appear every day for a company, we have broken the news feed in the following categories:\u003cbr/\u003eRelevant : News from selected sources that deal specifically with this company \u003cbr/\u003eAll: All news about this company. \u003cbr/\u003eCompany News: News issued by the company directly."; $('#detail-news-table').html(help); try { trackPI(); } catch (e) { } };
your MARKET VIEW Your Personalized Market Center
Related Stocks 70.00 1.07 (1.55%) 4/3/2019
Original author: Arjun Reddy

Continue reading
  56 Hits
Apr
03

Patagonia mocks Wall Street on Twitter after revealing plans to cut financial companies off from their beloved branded fleece vests

Patagonia isn't satisfied with simply cutting hedge funds and banks off from their beloved fleece vests. Now the American clothing retailer is trolling Wall Street on Twitter.

This week, news broke that Patagonia decided that it would require new companies that it works with on branded apparel to align with Patagonia's values of being environmentally conscious and prioritizing the planet.

A spokesperson from Patagonia told Business Insider via email that the corporate sales program recently shifted its focus to work with "more mission-driven companies that prioritize the planet."

Read more: The Midtown Uniform is now in peril as Patagonia isn't accepting new finance clients for its ubiquitous fleece vests

Patagonia took to Twitter to mock Wall Street for the panic over the news. The tweet features a screenshot from "Silicon Valley," a show that satirizes the tech industry, including investors' well-documented obsession with Patagonia fleece vests.

Patagonia/Twitter

B Corporations are companies that meet certain standards of social and environmental accountability, and 1% for the Planet is an organization that encourages people and businesses to donate 1% of sales toward environmental causes. Yvon Chouinard, Patagonia's founder, cofounded 1% for the Planet.

Patagonia fleece vests branded with companies' names have become a crucial part of the wardrobes of people who work in the finance industry. In New York City, these vests are part of the "Midtown Uniform" — typically slacks, a dress shirt, and a fleece vest.

Binna Kim, president of the public-relations company Vested, first reported the news on Monday after she reached out to a certified reseller of Patagonia apparel to purchase branded clothing for a client. The reseller told Kim that Patagonia is now reluctant to partner with companies that they view to be "ecologically damaging," as well as religious groups, food groups, political-affiliated organizations, financial institutions, and more.

However, for financial-services companies that have already penned a deal with Patagonia, there is a silver lining. The change of focus affects only new customers, leaving existing clients with their deals, a Patagonia spokesperson said.

Original author: Kate Taylor

Continue reading
  37 Hits
Apr
03

WeWork acquires Managed by Q

Managed by Q, the office management platform based out of New York, has today been acquired by The We Company, formerly known as WeWork.

Financial terms were not disclosed. The WSJ reports that it was a cash and stock deal. Managed by Q, which has 500 employees, will remain as a wholly owned separate entity and CEO Dan Teran will remain following the acquisition to join WeWork leadership.

Upon its latest financing in January, Managed by Q was valued at $249 million, according to PitchBook.

Here’s what Teran had to say in a prepared statement:

We are excited for this incredible opportunity to deepen our commitment to realizing our ambitious vision of building an operating system for the built world. WeWork is uniquely positioned to invest in workplace technology and services, and I look forward to partnering with their team to build more robust products for our clients and create a global platform to help companies push the bounds on our collective potential.

Managed by Q was founded in 2014 with a plan to change the way that offices run. The platform allowed office managers and other decision-makers to handle supply stocking, cleaning, IT support and other non-work related tasks in the office by simply using the Managed by Q dashboard. Managed by Q serves the demand through a combination of in-house operators and third-party vendors and service providers.

Notably, Managed by Q took a different tack than most other logistics companies, employing their operators as W2 workers instead of 1099 contractors. Moreover, Managed by Q offered a stock option plan to operators that gives 5 percent of the company back to those employees.

The company has raised a total of $128.25 million since launch from investors such as GV, RRE and Kapor Capital. Managed by Q currently serves the markets of New York, San Francisco, Los Angeles, Chicago, Boston and Silicon Valley, with plans to aggressively expand following the acquisition, according to the WSJ.

Not only has Managed by Q swiftly matured into a big player in the NY tech scene and Future of Work space, but it has also fostered interesting competition and consolidation within the space. Managed by Q has itself made several acquisitions, including the purchase of NVS (an office space planning and project management service) and Hivy (an internal comms tool to let employees tell office managers what they need).

Continue reading
  20 Hits
Apr
03

Hometalk raises $15M to grow its DIY community

Hometalk, a DIY community site with just under 10 million monthly users and more than 21 million monthly visits, today announced that it has raised a $15 million growth round led by NFX, with participation from WeWork founder and CEO Adam Neumann and Altair Capital.

If you’re not familiar with Hometalk, you can think of the site as kind of a DIY-centric Houzz, with a focus on visuals and step-by-step guides for doing projects inside your home. Those user-written guides cover everything from fixing clogged sink drains to repairing drywall, as well as more complex home improvement projects, and can feature text, images and video.

It’s very much a community-driven site and its 17 million registered users have now created more than 140,000 tutorials. In total, these have been viewed more than 2.5 billion times in the last year, the company says.

Until now, the site’s revenue mostly came from advertising. Going forward, though, the company plans to expand its offerings and introduce new revenue streams. Unsurprisingly, that’s what a lot of the new funding will go toward, too. Those new revenue streams include a marketplace, subscription service and branded content — all of which are logical additions for a site that already focuses on helping people improve their homes and who will likely need the right tools to do so.

“We always believed there is a massive, unmet need in the market for people to create the home they love by unlocking their creativity and giving them tools to empower this,” Hometalk founder and CEO Yaron Ben Shaul said. “The growth we have experienced demonstrates not only the product-market fit for Hometalk, but also the large opportunity we have ahead. We are most proud to have such an active, engaged community that trusts and relies on Hometalk as its go-to place for creativity.”

The company was founded in 2011 and currently has 60 employees in offices in New York City and Jerusalem.

Continue reading
  20 Hits
Aug
08

How to unlock enterprise knowledge for real-world ROI

What happens when you’re working behind the scene with French President Emmanuel Macron and you suddenly become a minister? This is what’s happening to Cédric O this week, who was appointed Minister for the Digital Economy on Sunday. I was the first journalist to interview him after his appointment.

While Cédric O has been talking with the French tech ecosystem for years, he usually stays away from cameras and microphones. At the Elysée, he was in charge of France’s stakes in companies and tech in general. I wrote about many of the things he’s been working on.

He invited 50 tech CEOs to meet with Emmanuel Macron and talk about “tech for good.” He invited dozens of venture capitalists and limited partners to Paris to convince them to invest more in the French tech ecosystem. He convinced Facebook to let French regulators investigate on moderation processes. And yet, you can’t find his name anywhere.

Now that he’s under the spotlight, the public figure of all things technology, it’s important to understand his views. Tech regulation is going to be a cornerstone of the economy and the fabric of society — and he has strong feelings about it.

Regulating big tech

For some reason, most of our conversation ended up being about regulating tech companies. On this topic, Cédric O has a subtle stance that involves cooperation between European countries, a clear regulatory framework and a new type of regulator. He doesn’t necessarily want to break them up.

“Platforms have to implement regulation in one way or another. And I completely agree with Mark Zuckerberg’s op-ed,” Cédric O told me. “Platforms shouldn’t write laws about what’s legal or not. However, they are responsible when it comes to implementing regulation and getting results.”

I completely agree with Mark Zuckerberg’s op-ed Cédric O

According to him, Zuckerberg shouldn’t write laws and French regulators shouldn’t focus on content. It should all be about moderating processes.

“It’s just like banking regulators. They check that banks have implemented systems that are efficient, and they audit those systems. I think that’s how we should think about it.”

And he also says that it isn’t (just) about deleting content. Social networks should also make sure that they don’t delete content that isn’t supposed to be deleted.

In a perfect world, Cédric O thinks there should be a central repository so that social networks can query the status of a specific post.

“For instance, when Marine Le Pen publishes a video of an ISIS slaughter, there should be a repository that isn’t necessarily managed by a public administration. Platforms could query that repository and get a status very quickly,” Cédric O said.

There should be a repository that isn’t necessarily managed by a public administration. Platforms could query that repository and get a status very quickly Cédric O

You could imagine a neutral repository built by multiple platforms. Of course, that wouldn’t solve all the issues we have seen with the Christchurch terrorist attack. Many people re-uploaded the live stream with slight edits so that it wouldn’t be detected as a duplicate.

When it comes to French regulators, Cédric O says that nothing is set in stone yet. The CSA could gain some new responsibilities, or the ARCEP, or maybe multiple regulators could work together. And it’s unclear where the HADOPI would fit in all of this. Eventually the French government wants to improve regulation at a European level.

In all cases, Cédric O doesn’t want to rush things. Before implementing a new regulatory framework, the government needs to understand how social networks moderate content. French regulators have worked with Facebook to understand how Facebook’s processes work. The final report is coming soon.

Reaching new highs

Over the past few weeks, a handful of French startups have raised megarounds of funding, sometimes reaching unicorn status. This shouldn’t come as a surprise if you’ve been following the French tech ecosystem over the years. But Cédric O thinks he needs to improve the image of the tech industry in France because it has a bad reputation.

“The first question I received [at the parliament] was about digital inclusion. They were blaming the French tech with something I hear a lot: ‘Startups are nice but it’s not real life,’ ” Cédric O said in a speech at La French Tech in Paris.

“There’s one thing we need to change and it’s going to be my message for the coming days — the French tech ecosystem is important. If we want our children, our grandchildren to get jobs, we can’t do it without startups.”

Depending on the study, France and the U.K. are battling to be the first European country when it comes to the number of VC deals and the total amount of money raised. France also has some of the best engineering schools in the world. Evidence of this lies in all the French data scientists and AI experts who work in some of the biggest tech companies in Silicon Valley.

But if you look at French public companies, the majority of them have been created way before the internet and personal computers.

“[At the Elysée], I was a lot more worried for France’s stakes in big companies than startups,” Cédric O said. Over the morning, he kept repeating the same number. “Nearly 50 percent of net job creations in the U.S. are related to the tech industry.”

Continue reading
  19 Hits
Jun
09

Here's why tech IPOs are starting to see a surprising, and sudden, snapback

Raising venture capital isn’t easy; for some, it’s impossible.

Clearbanc offers startups a fundraising alternative — despite itself being well-capitalized by VCs — and is today launching a new campaign to back 2,000 businesses with $1 billion in non-dilutive capital by the end of 2019.

“Everyone is watching this flurry of tech IPOs this year, but no one is talking about how little of these companies the founders actually own,” Clearbanc co-founder and president Michele Romanow told TechCrunch. “Our vision is if Clearbanc is successful, there’s a world where founders can own a much greater percentage when they IPO.”

Here’s how Clearbanc’s new campaign, “The 20-Min Term Sheet,” works: Clearbanc invests $10,000 to $10 million in e-commerce businesses with positive ad spend and positive unit economics after Clearbanc’s algorithm has reviewed the startup’s marketing and revenue data. Clearbanc sends the cash within 48 hours, doesn’t take a board seat or require a personal guarantee and continually invests in the company as it scales, so long as those two key metrics — ad spend and unit economics — remain positive.

Here’s the catch: Until the company has paid back 106 percent of Clearbanc’s investment, Clearbanc takes a percentage of the company’s revenue every month, depending on the size of the investment. If you have a higher-margin business, like say a digital fitness app, and you’re willing to divert 20 percent of your monthly revenue, Clearbanc will invest a larger sum right off the bat.

The entire process takes 20 minutes, hence the name — a whole lot faster than the time it takes a typical VC to close a deal. But a VC may spend months researching a category and debating the potential of an investment. Clearbanc is cutting that process out entirely, relying on just two metrics and an algorithm.

Romanow, who made a name for herself as an angel investor on the Canadian version of Shark Tank, Dragons’ Den, tells TechCrunch she and co-founder and chief executive officer Andrew D’Souza recognize the risk associated with this kind of rapid investing, but having backed 500 companies with $150 million last year, they feel like they’ve accumulated enough data points to prove their strategy.

Romanow and D’Souza insist some 40 percent of VC dollars end up going to Facebook and Google for digital ad campaigns. Though TechCrunch couldn’t independently verify this claim, it’s widely known that those platforms soak up a lot of capital from startups, especially e-commerce businesses, like direct-to-consumer retailers for example, which rely almost entirely on digital marketing to attract customers.

Using Clearbanc, a company could, in theory, raise a $5 million round from VCs to scale its business and another $5 million from Clearbanc for ad spend. This strategy saves said business valuable equity.

“We are essentially a non-dilutive co-investor,” Romanow said. “VC takes time, it’s a lot of nos, you’re really giving up equity that you can never get back. A lot of founders in the early days don’t calculate what their equity could be worth. Like the first $250,000 in Uber is worth $1 billion now.”

Clearbanc, founded in 2015, has itself turned to venture capitalists to fund its rapid scale. Its own funding model doesn’t work on a company in the financial category, given that the metrics of success are entirely different.

In November 2018, Clearbanc secured a $70 million round in seed and Series A funding from Emergence Capital, Chamath Palihapitiya of Social Capital, CoVenture, Founders Fund, 8VC and others. Just one month later, Clearbanc announced a $50 million fund backed by Seamless co-founder Jason Finger’s new firm, Upper90, to begin providing startups with ad money.

“We’ve just figured out how to scale up really quickly,” Romanow said.

The $1 billion it’s currently touting isn’t readily available. Romanow explains they’ve raised “enough to deploy $1 billion this year,” but was careful to clarify they haven’t raised the full amount and don’t need to. Clearbanc is constantly raking in new cash from its revenue share agreements and is able to recycle and redeploy capital quickly. That, coupled with the several hundred million raised from limited partners — including Upper90, other founders, family offices and university endowments that have not been made public — puts them in a position to invest 10 figures this year.

Clearbanc is amongst a new class of capital-as-a-service businesses catering to startups that have either been rejected by VCs or turned their back on the equity-driven funding model. BlueVine, for example, offers startups $5,000 to $5 million credit lines. Lighter Capital invests $50,000 to $5 million in non-dilutive capital to SaaS businesses. And Corl, another alternative funder, similarly backs businesses using the revenue-share model.

“Venture capital makes sense if you are building a new crazy piece of AI, or creating a new product line and going into a new country,” Romanow said. “When you are doing something that’s repeatable and scalable like ad spend, it doesn’t make sense to give up equity.”

Continue reading
  22 Hits