Nov
24

China created a website for vigilante citizens to report leaks and fake news

Colin O’Donnell was already rethinking the notion of what makes cities and communities function even before the COVID-19 epidemic swept through the U.S. and revealed some of the cracks in centuries-old structures of urban life.

O’Donnell was part of the early wave of urban tech innovation, which began to rise about six years ago. He co-founded Intersection, a company manufacturing digital kiosks for public transportation services, which was eventually rolled up in one of the first big acquisitions from the Alphabet-owned subsidiary Sidewalk Labs .

While the initial optimism for — and interest in — technology’s ability to reshape the built environment has stumbled thanks to both Sidewalk’s data collection overreach in its initial Toronto project and the financial stresses that the COVID-19 epidemic has placed on cities across the country, experiments with how to integrate technology into society more intelligently continue on the margins. And investments in real estate technology continue to rise.

O’Donnell’s new company, Kibbo, takes advantage of both trends. The San Francisco-based startup aims to upgrade the American trailer park, making it a network of intentional communities for the remote-working, previously urban professionals (PUPs?).

To ensure that these remote working puppies (I’m going with it) can navigate the American roadways in the manner to which they’re accustomed, Kibbo pitches exclusive RV parks outfitted with amenities like kitchen supplies and basic staples like coffee and snacks, a gym and recreational facilities for congregating. The company is now taking applications for membership and will be charging $1,000 per month to access its locations of sites near major national parks across the West Coast.

For members who don’t have their own vehicles, Kibbo offers access to top-of-the-line Mercedes Sprinters outfitted with the latest in #vanlife amenities. The vans cost roughly $1,000 per month to rent.

Beginning in the fall, members who get past Kibbo’s virtual velvet rope and gain access to the company’s communities will be able to visit spots in Ojai, Zion, Black Rock Desert and Big Sur. Those locations will be complemented by spots in urban cores in Los Angeles, San Francisco and somewhere in Silicon Valley, according to a statement from O’Donnell.

“With the pressure of months of quarantine fueling the desire for people to get out of their expensive apartments in the city to explore nature and connect with people, we now have the demand and opportunity to rethink how we live, work, have fun and find meaning,” he said. “We get to rethink the urban experience and define what we want cities of the future to really look like.”

With Kibbo’s launch, would-be puppies (still going with it) attracted to its vision of a network of community spaces shared by professionals whose companies have embraced remote work can now pay $100 to apply to be part of the network.

Image Credit: Kibbo

The company is tapping into a part of the American zeitgeist that’s nearly as old as the country itself. From its inception, people came (and colonized) the country in an effort to create communities that would reflect their values and beliefs and afford them an opportunity to flourish (at the expense of others).

It’s also working off of the glamping phenomenon that netted Hipcamp a valuation over $100 million and grabbed Tentrr an $11 million round of financing. Hipcamp offers a database of campsites that earns money by taking a commission from the bookings it facilitates to moe than 300,000 sites across the U.S.

Like Tentrr, Kibbo is using private land to set up sites accessible to membership. But unlike Tentrr, Kibbo owns its own real estate and is setting up its sites to be part of a community rather than just an experience for travelers looking for a different option from a city vacation or competing for campsites at national parks.

Kibbo also thinks of itself as developing a new kind of roving cities comprised of a certain kind of membership.

“Unlike traditional top-down designed and built real estate developments, Kibbo is setting out to build the first of the next generation of cities: flexible, reconfigurable, designed and defined by the people that live in it, off the grid and sustainable,” O’Donnell said. 

That’s what attracted Urban.us investor Shaun Abrahamson.

“In the short and medium term, I think this looks like a specialty part of the RV market. However, our sense is that RV experience was designed for vacations or retirees and trends like remote work and van life suggest there is demand for different kind of infrastructure and experience… Our longer term interest is climate and affordable housing,” Abrahamson said.  

Climate change and the resulting flooding, fires and rising sea levels are going to change the kinds of infrastructure to support permanent housing, Abrahamson said.

Van life is benefiting from mobile infrastructure — solar + batteries make off-grid easier. As prices come down, mobile housing and infrastructure will become more attractive. And Kibbo is filling in other lightweight pieces of infrastructure related to things like sanitation and security and, yes, they’ll layer in experiences, too,” he said.  

Both Abrahamson and O’Donnell think there will be more nomadic communities far beyond vacations and retirement, and Kibbo is the firm’s attempt to tap into that trend. It’s a vision for a future of cities that doesn’t include them, and one that O’Donnell, a New York transplant living in a communal space in San Francisco, embraces.

“While Kibbo offers an exciting lifestyle from day one, we’re making a bet that the future of cities is electric, autonomous, distributed, renewable and user-generated,” O’Donnell said.

Image Credit: Kibbo

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Oct
17

Allset raises $5M to help restaurants deliver a more efficient dining experience

Insider, a Singapore-based startup that develops software to help clients make marketing decisions, plans to launch in the United States after raising a $32 million Series C. The round was led by Riverwood Capital, with participation from Sequoia India, Wamda and Endeavor Catalyst.

Founded in 2012, the company says its SaaS for multichannel marketing and customer engagement is currently used by more than 800 brands, including Singapore Airlines, Marks and Spencer, Virgin, Uniqlo, Samsung and Estée Lauder.

Insider’s Series C brings its total funding so far to $42 million. In addition to entering the U.S., the new capital will be used on sales and marketing, hiring more engineers for its research and development team and adding new features to its platform.

One noteworthy aspect of the company is that half of its executive team, including co-founder and chief executive officer Hande Cilingir, are women. The company runs a program called Young Engineers that provides coding classes to high school students, especially girls, and it plans to expand to primary school-age kids as well.

Cilingir told TechCrunch that Insider’s AI-based technology differentiates it from older, larger competitors like Salesforce because it is able to integrate customer data from different marketing channels, including offline ones, to help companies make better predictions about customer behavior. Insider’s analytics help brands coordinate campaigns across different platforms, including the web, mobile apps, messaging apps, email and other channels.

“Insider, on top of all those solutions, creates a one-stop shop because you can overcome operational bottlenecks because of the technology, but at the same time, we are still offering all of the features, including personalization technologies, that online businesses need,” she said.

Helping brands create new marketing strategies is crucial during the COVID-19 pandemic. For example, e-commerce companies have seen a surge in traffic because of COVID-19 stay-at-home orders, but need to figure out how to make that translate into sales. Meanwhile, other verticals, like travel and hospitality, have to find new ways of making revenue.

The company has teams in 24 countries across Europe, Asia and the Middle East to support brands’ localization strategies. Even though Insider’s software does not need to be adapted in order to work in different countries, Cilingir said marketing differs widely between cultures.

For example, in Indonesia, direct sales are important, but in Japan, sales operations are often dependent on agencies within a company. Insider’s customer support teams serve as a complement to its software, helping clients use it to create marketing strategies.

In a press statement about the investment, Sequoia India principal Pieter Kemps said, “We liked the Insider team from the first days, but have been positively surprised by their highly efficient go-to-market engine. The quality of customer interactions, combined with exceptional product and technology, has enabled Insider to stand out among the many point-solutions out there—and build up a very impressive list of customer logos.”

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Jun
15

Automotive marketplace Carro hits unicorn status with $360M Series C led by SoftBank Vision Fund 2

Earlier today, news broke that Xpeng, a China-based electric vehicle company has raised $500 million, adding to its 2019-era $400 million Series C. The round, a Series C+ investment, brings the company’s capital raised to date to around $2.2 billion.

Xpeng’s huge fundraise comes on the heels of a recent boom in the value of some public EV companies, including Tesla, Nio and Nikola. Speculation into the future value (and therefore present-day worth) of EV companies has led to their ranking on lists of most-popular stocks with some retail investors, underscoring their popularity.

The Exchange explores startups, markets and money. You can read it every morning on Extra Crunch, or receive it for free in your inbox. Sign up for The Exchange newsletter, which drops Saturdays starting July 25.

You might anticipate that the public-market enthusiasm is helping drive outsized private investment into global EV startups. After all, it’s often true that public market activity has an impact on private market enterprise; if shares of a particular industry rise sharply, the value of their private cognates can similarly rise, and investment in the sector can pick up tempo.

Upon reading about the Xpeng round this morning, that the event was likely part-and-parcel of rising deal volume for private EV companies was our first hunch. In honor of scratching our own itches with data whenever possible, TechCrunch decided to dig and find out.

So, is public market optimism in EV companies driving more investment into private EV companies?

What the data say

To test whether EV investment is rising or falling amongst private companies, The Exchange ran a range of queries today against Crunchbase data, looking at rounds for companies marked as “electric vehicle” firms in its data, discounting crowdfunding, secondary market activity, all post-IPO rounds and any other nonequity rounds.

Here’s what we found:

2020: $3.61 billion from 63 rounds [query].2019: $6.98 billion from 151 rounds [query].

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Jan
03

A fake ESPN story about LeBron James using 'Primal Growth Testosterone' is circulating — and it shows the role the ad industry has in fake news

Effx, a startup that aims to give developers better insights into their microservice architectures, today announced that it has raised a $3.9 million funding round led by Kleiner Perkins and Cowboy Ventures. Other investors and angels in this round include Tokyo Black, Essence VC Fund, Jason Warner, Michael Stoppelman, Vijay Pandurangan and Miles Grimshaw.

The company’s founder and CEO, Joey Parsons, was an early employee at Rackspace and then first went to Flipboard and then Airbnb a few years ago, where he built out the company’s site reliability team.

“When I first joined Airbnb, it’s the middle of 2015, it’s already a unicorn, already a well-known entity in the industry, but they had nobody there that was really looking after cloud infrastructure and reliability there […],” he told me. The original Airbnb platform was built on Ruby on Rails and wasn’t able to scale to the demands of the growing platform anymore. “Myself and a lot of people that were really smarter than me from the team there got together and we decided at that point, ‘okay, let’s let’s break apart this monolith or monorail that we call it and break it up into microservices.’ ”

Image Credits: Effx

But microservices obviously come with their own challenges — they constantly change, after all, and those changes are reflected in different UIs — and that’s essentially where the idea for Effx came from. The idea behind the product is to give engineers a single pane of glass to get all of the information they need about the microservices that have been deployed across their organization.

Effx founder and CEO Joey Parsons

At Airbnb, Parsons’ team built out a small metastore to track what each service did, who owned it, what language it was written in and whether it was in scope for PCI or GDPR, for example. After leaving Airbnb, Parsons went to Kleiner as an entrepreneur in residence and started to work on building out this idea of bringing to more companies some of the ideas of what the team built at Airbnb. He raised a small amount of money from Kleiner to hire the initial engineering team in 2019 and then started testing the product with a first set of pilot customers earlier this year.

In its early iterations, the product relied on engineers writing YAML files, which the product could then consume, but few engineers love writing YAML files and the value in a tool like this comes from being able to automate a lot of this work. So the team built out integrations with common service orchestration platforms, including Kubernetes, but also AWS Lambda and ECS.

“What we’ve found is that most companies that have been moving towards microservices are using some combination of those platforms — maybe one, maybe two, maybe all three — to orchestrate things,” Parsons explained. “So we built really heavy integrations into those platforms to where in Kubernetes we can drop a client in there, it automatically discovers all your services, populates as much as it can into the catalog from that and then does the same thing for an AWS Lambda or ECS perspective where we consume data from those platforms and pull data in.”

Image Credits: Effx

As Parsons noted, the value here isn’t just in getting that single pane of glass, but once you have all of this information and these services’ dependencies and combine it with your CI/CD data, it also becomes a new tool for troubleshooting as it helps you see which services changed before something broke. To even better enable this, teams can add links to their runbooks, documentation and version control tools too.

Parsons tells me that the team is currently in the process of closing more pilots and hiring more engineers as it works to build out its service, add more integrations and find new ways to help its customers make use of all the data it gathers.

“As the future of what we’re building comes more into fruition, the most important thing for us right now is to really deliver on the value that our existing product delivers to our end users as a platform to build more business,” Parsons explained. “I think that in the long run, the power of this feed and getting the data that’s behind it ends up being a really interesting mode for us simply because there’s a lot of great insights that you can build for organizations based on like the patterns and the cadence of information that shows up in this feed, to help teams really understand why there’s that incident that happens every Tuesday at midnight UTC.”

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Jan
04

The FCC boss, who led the push to kill net neutrality, just cancelled plans to speak at the biggest tech conference of the year

Dan Roselli is Founder and Managing Partner at CFV Ventures, a North Carolina firm focused on FinTech and InsureTech.

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Original author: Sramana Mitra

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Jan
04

A secretive self-driving car startup is building a fleet of robot taxis with Volkswagen and Hyundai

Companies like Blackline, Bill.com, Anaplan all automate various CFO office functions. HighRadius is yet another excellent company automating a piece of the finance function. Sramana Mitra: Let’s...

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Original author: Sramana Mitra

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Jan
04

Linkkle is a super simple tool for all your social media links

As an early-stage founder, how do you draw up your first contracts? Or structure your cap table? How do you hire your first few engineers, or pitch top-tier talent? What about if that talent is abroad? How do you navigate the complicated regulatory environment? How do you make decisions around security and building a tech stack that can go the distance?

You’ve got questions. TechCrunch Early Stage has answers.

At the virtual two-day conference, we’re bringing together some of the most seasoned operators in the fields of legal, recruiting, company structure, security and tech infrastructure to help you find your way through a tactical quagmire to the bright light of success at the end of the tunnel.

Of course, the show will cover more than operational challenges. We also have many, many sessions on growth marketing, PR, brand building and a wide range of fundraising sessions.

If you’re in the midst of building a company, this show is worth making time for. Plus, audience members will be able to ask their own questions to our expert speakers in each and every breakout session.

Here’s a look at all the Operations sessions at TC Early Stage:

Hiring your early engineers with Ali Partovi

The first few employees determine a startup’s trajectory. Learn the dos and don’ts of hiring your early engineers from entrepreneur and investor Ali Partovi. And hear how these hiring decisions can determine not only the the type of culture you build for your employees, but also the overall success of your company.

How to hire globally (and how to make immigration work for you) with Sophie Alcorn

Dealing with a tricky visa situation? Troubleshoot the many snags that can affect early-stage startups that are trying to bring talent into the country, with top Silicon Valley immigration expert Sophie Alcorn.

How to build a great board with Laurie Yoler

A high-performing board of directors can help your company fulfill its potential, but without a plan to run a board that stays focused on strategy, you can get sidetracked. Laurie Yoler, board member and general partner at Playground Global, founding board member at Tesla and current board member at Bose, Church & Dwight, Zoox, Leaf Logistics and Lacuna, will share her perspectives on building a strong board, managing your board relationships and maximizing the value you get from the board both in times of success and the inevitable periods of struggle that come with growing a company.

How to build a tech stack that can go the distance with Jon Evans and Ben Schippers

The beautiful flower of your tech stack starts with a seed, and a series of decisions. What fertilizer will you use? How often should you water it? Where can you give it the right amount of sunlight? Every decision you make about your tech stack affects how it will hold up, and evolve, over time. Hear from HappyFunCorp’s co-founder and CEO Ben Schippers and CTO Jon Evans about how you can avoid regretting those decisions.

True product market fit is a minimum viable company with Ann Miura-Ko

Product market fit is not the sign of a scalable business model. Without a validated value proposition, business model and ecosystem working in concert, moving into “growth mode” is building your company on an unsound foundation. Learn whether you’ve built a minimum viable company from Floodgate co-founder and seed-stage investor Ann Miura-Ko, who was one of the first investors in Lyft, Refinery29 and Xamarin. She’ll dive deeper into the three elements that are required to nail it before you scale it: Value Proposition, Ecosystem and Business Model.

What VCs want in a term sheet (and how you can get what you want) with Lior Zorea

Everything comes at a cost, including that whopping round of investment you’re raising. Hear from Nixon Peabody LLP partner Lior Zorea, who has facilitated countless fundraises, about how to negotiate the all-important cap table and make sure that everybody wins.

Exploring the infrastructure of SaaS startups with Sam Pullara

A new generation of SaaS companies like Wavefront, Snowflake and Clumio has emerged to help reduce the complexity involved in managing data in the cloud. We’ll hear from Sam Pullara of Sutter Ventures, who has two decades of technology and investing experience, about how cloud infrastructure companies can compete in a cloud provider-dominated world.

How to draw up your first contracts (and other legal tips) with James Alonso and Adam Zagaris

Hear from James Alonso, partner at Magnolia Law, on the ins and outs of company formation and financing. Companies that are off to the races can learn from Adam Zagaris, partner at MoonShot Legal, as he breaks down the process of creating commercial contracts and managing transactions. This is a great 360-overview of the legal side of running a startup.

Pitch your talent like you’re pitching your investors with Kristin Tucker and Marissa Peretz

Hear from Silicon Beach Talent founder Marissa Peretz and partner at Koller Search Kristin Tucker on how to entice the right type of talent. Defining a culture with stand-out values is only the first step. These two recruiting powerhouses will share how to close the right candidate.

Launching in regulated industries and growing fast nonetheless with Katherine Boyle

Regulated industries are often the most ripe for disruption, but can also be some of the most challenging markets to enter for a startup. Not only does a company have to handle all the same hurdles as any other startup, but it must navigate a tangly web of regulation and governance. Hear from General Catalyst partner Katherine Boyle about how to tackle those challenges without losing momentum.

Securing your startup with Casey Ellis

Security is one of the most important things for a startup to focus on, but many struggle to dedicate time, resources or budget to protect against something you never want to happen. How should startups prioritize security, and what do emerging companies need to know?

But you’ll need to grab your ticket to TC Early Stage to participate in these and 40 other sessions on July 21 & 22. Sessions are filling up quickly, but as a ticket holder if you miss a session you’ll still have exclusive access to the video on demand. Get your ticket and join the discussion today!

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Oct
18

InVision takes on Adobe with the introduction of Studio

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

This is Equity Monday, our weekly kickoff that tracks the latest big news, chats about the coming week, digs into some recent funding rounds and mulls over a larger theme or narrative from the private markets. You can follow the show on Twitter here, and myself here, and don’t forget to check out last Friday’s episode.

Got all that? Great, let’s talk about what we went over today:

Chinese stocks were up, Ant is going public in both Hong Kong and Shanghai and eBay is looking to offload its classified ads unit for $8 billion.The efforts to make TikTok appear apolitical are struggling after its parent company does something very political.Xpeng, a Chinese EV company, added $500 million to its Series C round.Coming up: TechCrunch Early Stage, which is going to rule, and a host of earnings results from companies like Microsoft, Snap and Intel, among others.Funding rounds from Vestr, Mori, Soterea and Burn To Give. More notes on the Vestr round here, Mori here, Soterea here, and Burn To Give here.

And we closed the show with a short thought-bubble on manias. What constitutes a bubble? I don’t know precisely, but the electric car (EV) industry has certainly seen its fair share of ups and downs. China’s EV market has seen its booms and busts, with the IPO of Nio operating as a good example of enthusiasm (its IPO), declining faith (its later cratering share price) and the rebirth of optimism (its recent return-to-form) in its industry.

Xpeng’s huge new Series C+ round and the huge valuation that Tesla has managed as a public company in recent months add currency to the idea that the EV market has once again swung toward too much optimism. We’ll see.

More on Friday from the Equity crew!

Equity drops every Monday at 7:00 a.m. PT and Friday at 6:00 a.m. PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Nov
05

The rise of the machines: What your data is being used for

Customer support is a huge part of a user’s experience, and one that every bank likes to say they’re great at. But there is a lot we can learn from the mistakes that U.K. banks have made.

Based on his latest research report into the user experience of a dozen leading British banks — including Barclays, HSBC, Santander, Monzo, Starling and Revolut — Built for Mars founder Peter Ramsey shares his top five UX tips for customer support.

We dive deeper into each tip, including discussing the thorny topic of call decision trees (press 1 for … press 2 for … etc.), which Ramsey advises should be depreciated in the age of mobile apps, how push notifications might be employed to provide a more Disney-like queuing experience, why hold music is bad as a concept and why it’s time to ditch the live chat bait and switch.

Get rid of call decision trees

Call decision trees are annoying to use and unnecessary for users who have access to an app. Instead of asking customers to navigate via their telephone’s numeric keypad, use in-context questions inside the app, and then put the full number, including the correct extension, behind a button.

TechCrunch: Perhaps we should clarify what you mean by “call decision trees” and — considering they’ve been an industry standard for years — why is now the time to get rid of them?

Peter Ramsey: The decision tree is that automated “press 1 for … press 2 for … ” process you sometimes have to go through at the beginning of a call. I should clarify: It’s not time to eradicate them entirely, because it’s pretty useful for people who only use telephone banking. But for anyone who has access to an app, it’s totally unnecessary.

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Nov
21

What Meta’s Galactica missteps mean for GPT-4 | The AI Beat

Gig economy companies like to tout the flexibility and freedom they offer workers, but for the people finding work through companies like Instacart, Uber, DoorDash and Lyft, the economic and physical risks can outweigh the rewards.

Contractors who are now considered front-line providers of essential services for their wealthier customers in the age of social distancing brought on by the COVID-19 epidemic have struggled with lack of benefits, lost tips and wages, and a dearth of back-end support.

Dumpling, a startup in the food delivery space, was born to challenge the status quo in the gig economy by giving more ownership to the workers that power it. Dumpling connects shoppers to all the resources they need to migrate off the Instacart platform and start their own personal-shopping business.

Dumpling is launching with a focus on food delivery, as the pandemic has transformed the perk into an essential service for home-bound citizens. So far, it has enabled more than 2,000 shoppers in all 50 states to become their own personal Instacarts.

Dumpling co-founders Joel Shapiro and Nate D’Anna met in college and were looking for a way to work together. Shapiro and D’Anna ditched their corporate jobs at National Instruments and Cisco, respectively, to create Dumpling.

“[We thought] what if we actually create a company to solve their problems and not just the one percenters hanging out on the coast?” D’Anna said

Before we get into how Dumpling works, let’s discuss the obvious: Not every gig worker wants to be a business owner, which is exactly the opposite of what the startup needs to succeed. Despite the gig economy’s proliferation over the last decade, only 3% of adults said they performed gig work as a primary source of income; fewer than 1 in 10 adults were full-time gig workers, according to the Federal Reserve’s latest report.

Instead, a larger issue within the gig economy is classification of workers, leading to the rise of unions and co-ops for more shopper support. 

Dumpling is another example of what the future would look like. 

Shapiro admits that not every gig worker will need Dumpling. But instead of pitching Dumpling solely as a place for gig workers to start their own businesses, he thinks the startup can bring more money into workers’ hands.

“With multiple years of all these multi-demand apps, we know that workers are going to be exploited and screwed at some point and their pay is going to be drastically reduced,” he said. “We’re trying to make them ultimately have control so the rug can’t be pulled out underneath them.”

How it works

To start, Dumpling helps users create their own LLCs. Then it offers a slew of different products, including a Dumpling credit card to help shoppers buy groceries before customer payment, an app to help centralize deliveries and customer communication, and a forum for mentorship and worker support.

Image Credits: Joel Shapiro / Dumpling

Shoppers primarily acquire customers through marketing and self-promotion when dropping off orders for other delivery apps, according to Dumpling. Some customers have recently started going directly to Dumpling to look for shoppers to order from in the area.

Dumpling gives 100% of tips to business owners. Unlike Instacart, Dumpling allows business owners to pick what tip options show up for their customers and set a personal default tip minimum. There is also space for customers to leave reviews.

The company makes money in a few different ways. It charges shoppers a one-time $10 fee to set up, which includes a Dumpling credit card, a listing on the website and a shopper search tool. The platform then charges shoppers either a $39 monthly fee or a $5 per-transaction fee for each time they book a job. On the other end, customers pay 5% on top of orders for payment processing.

Dumpling claims it can help shoppers make three times as much money as Instacart shoppers. But let’s do the math.

While the monthly fee or $5 per-transaction fee could eat into tips, Dumpling claims that users make $33 in average earnings per order, which is three times as much as Instacart users. Instacart estimates that full-service shopper pay ranges from $7 to $10 per order, according to a NerdWallet article.

Because shoppers can set their own rates, customers could simply flock to the cheapest option of the day, thus driving competition between shoppers to keep rates low (and make less money).

There are a few reasons why Dumpling doesn’t think it’s going to be a race between shoppers.

First, Dumpling customers are largely repeat clients who crave a personalized shopper to help them out. This repeatability gives shoppers some flexibility and stability, income-wise. Shoppers can schedule weekly grocery delivery times so they can manage the orders, instead of trying to drive an Uber and maximize their time on the road.

Second, Shapiro hopes that pricing isn’t the only reason a customer goes to a shopper. He noted that reviews and ratings are big sells, as well as areas of focus like vegan, local farmers’ markets, dietary restrictions and special diets. Imagine if you’re newly joining Keto and you can get a Keto-savvy shopper to pick up ingredients for you, in other words.

In the past three months, the platform has brought in tens of thousands of reviews on shoppers. The average rating of a Dumpling shopper is 4.9 to 5 stars.

It can’t fix what is broken

Even though Dumpling wants to bring ownership to the gig economy, it is experimenting with ways to support its growing network. One way would be getting bulk discounts on health insurance and benefits. Soon, Dumpling is starting a fraud protection benefit for any shopper on its platform.

While Dumpling can’t fix the gig economy, it can drastically change the way that the people within it work and own their career. Especially those few who rely on the gig economy as their sole job.

Matthew Telles, one of Instacart’s first shoppers in Chicago, fondly remembers the grocery delivery platform’s early days. He would average 20% tips on all orders, rarely drove more than five miles for a delivery and was even invited to staff engineering calls to give feedback on the platform.

Then Amazon bought Whole Foods, a deal which Telles thinks pressured Instacart to get the biggest market reach as quickly as possible (which included saving money). He received orders from all over the state. Instacart threatened to take away tips. The engineering call invites stopped.

Five years later, Telles remains on the app to advocate for shoppers. His efforts have contributed to millions in settlement payments from Instacart. The company, which has risen to a level of prominence during the pandemic, recently turned its first profit. Its shopper network continues to complain of lack of support from the platform, and has organized multiple times for better wages, changing default tip minimums and personal protective equipment.

“Fighting Instacart is my hobby now,” Telles said. “Dumpling is now my career.”

Dumpling did not disclose profitability, but said order volume has spiked by 20x. The unprecedented growth has led Dumpling to recently announce it raised $6.5 million in Series A funding, led by Forerunner Ventures. Participating investors include Floodgate and FUEL Capital. The company’s total known venture funding to date is $10 million.

As for Telles, he loves the flexibility he can have to pick up a gratitude meal for the most consistent customers along with their groceries. He’s cut his hours in half and doubled his income by going full time on the app. And, to his delight, he’s been invited on calls with Dumpling’s co-founders themselves, similar to the early days of Instacart.

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Feb
13

Winter Olympics organizers say the 'Olympic Destroyer' cyberattack took down their computer servers during opening ceremonies

Competition was getting tough in the online streaming space, but the pandemic and lockdown has helped Netflix (NASDAQ: NFLX) surge ahead of its competitors. It reported a strong quarter but expects...

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Original author: Sramana_Mitra

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Nov
21

StreamElements releases State of the Stream for October 2022

Sramana Mitra: What did you do in terms of getting OnShape off the ground? Did you raise venture money? From whom?  Jon Hirschtick: I got a founding team together. Guess who’s on the founding...

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Original author: Sramana Mitra

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Nov
21

Neurodiversity and remote working: How one simple fix helps people thrive

Brooks the Wonder Dog passed away yesterday. Somehow, a long time ago, his vet started referring to him as Brooks Batchelor. Mail came to Brooks Batchelor. His pills, which he took a lot of lately, are labelled Brooks Batchelor. Amy and I giggled everytime we saw this.

Brooks was an awesome dog. He was dog number 3, following Denali and Kenai. Definitely the cuddliest of the three. Always happy. He loved bagels, salmon, and tissue boxes. We ran in Keystone together and did laps around my house at St. Vrain for years until he couldn’t run anymore. He loved chasing bunnies, even if he never caught any. When he was young he loved to swim, but decided that wasn’t for him after he walked straight into the deep end of our new pool on his introduction to our St. Vrain house (we laughed so hard it was challenging to fish him out …)

When Amy and I talk about “Golden Retriever eyes” we are thinking of Brooks. Deep, black, and full of love, especially if you were holding a bagel. Or a piece of salmon.

At some point, he decided he was going to sleep on the bed. Early on we tried to convince him the bed was just for the two of us. I traveled a lot, so when I was gone he slept on my side of the bed. When I was home, he slept at the foot of the bed. Eventually, we got a bigger bed.

When he was a puppy, Kenai took good care of him (Kenai is on the left, Brooks is on the right)

When we got Cooper, he was annoyed for a while. Apparently he forgot that Kenai helped him grow up. Cooper was inscrutable and the first difficult puppy we had. Brooks figured this out before us and, while he’d occasionally assert his dominance, he generally gave Cooper a wide berth. When we sent Cooper to doggie boarding school for a month, we could tell that Brooks didn’t miss him. But, when Cooper came back, enough had changed that they were suddenly (and finally) buddies.

Cooper was extremely patient with Brooks the past few years as Brooks aged. When they ran together with me, Cooper would do his thing for a while but eventually hang back with Brooks who trotted along next to me at my slow pace.

Several months ago Brooks had a seizure. It turned out that he had a significant brain tumor. After being at the vet for a few nights, he came back home and was basically non-responsive. Amy and I cried all weekend, just hung out with him, and were ready to let him go.

We decided to give it one try with the vet where they dialed back some of his meds to see if he could get a few more months. While he still slept most of the time, he was ambulatory, happy, and somewhat responsive when he was awake.

Last Monday he had a series of seizures. Back to the vet he went, where the seizures continued. He passed on Saturday.

I thought of him a lot of my 12 loop run today. I write this with tears in my eyes. Brooks Batchelor, you were a wonder dog. Thanks for being part of our lives.

Original author: Brad Feld

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Feb
13

I’m a huge Apple fan — but there are 9 big reasons why I’m not buying the HomePod (AAPL)

This feature from Bloomberg Opinion by Tae Kim analyzes the demand for IPOs of cloud-based companies like nCino. For this week’s posts, click on the paragraph links. Tech Posts Cloud Stocks:...

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Original author: jyotsna popuri

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Nov
19

The trillion-dollar opportunity in building the metaverse

Sramana Mitra: What prompted that decision to sell? Jon Hirschtick: It came down to three things. My criteria are winning the market, working with great people, and making money. Both routes made...

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Original author: Sramana Mitra

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Oct
02

Fintech startup Curve partners with accounting software Xero to make filing expenses ‘frictionless’

Editor’s note: Get this free weekly recap of TechCrunch news that any startup can use by email every Saturday morning (7am PT). Subscribe here.

We’re pleased to kick off this week’s newsletter by sharing an important new project: The TechCrunch List. It’s a database of investors who have shown a commitment to first checks and leading rounds from seed through growth, based on founder recommendations we’ve received as well as learnings from our own research.

Our goal is to quickly help founders talk to the investors who are serious about writing them checks when they need it most. You can filter by industry vertical, round size and location to find the best people for you. Today you’ll see 391 investors based on more than 1,200 recommendations across 23 main verticals. Since launch on Tuesday, we’ve received another 600 recommendations and counting fast, so we’ll be providing another big update next week.

My colleague Danny Crichton, who leads the project, has written up an FAQ for people who want to know more about the methodology, or how they might submit a recommendation. For Extra Crunch subscribers, he also put together a list of the 11 investors who have had the most positive recommendations, and an explainer about why certain investors earn great ‘founder NPS’ scores.

Now stop reading this for a minute and check it out.

Image Credits: Dani Padgett / StrictlyVC

Brad Feld on how to influence your odds of success

Connie Loizos caught up with long-time VC Brad Feld of Foundry Group, who has a new book out about startup ecosystems. Some of it is theoretical, as you can read about in the full interview, but Feld connects his points to more tactical advice. Here’s a great example:

TC: Your new book talks about complex systems. How do founders balance the need to manage these complex systems with the fact that controlling these complex systems is sometimes out of their hands?

BF: The first step is getting rid of the notion that you can control the systems, and instead focus on what you can influence [because] in the context of what you can influence, that starts to become a place to focus where you put your energy.

An example of this would be in the current moment. If you have existing investors, and if you have not asked your existing investors directly how much money they have reserved for you for future financings and what you need to do to get that money from them, you’re not focusing on what you can influence.

The worst thing your investor can do is say, ‘I’m not going to tell you that.’ But if your investor is really on your side and wants to see you be successful, it’s likely your investor will say, ‘All right, well, you know . . .’ There might be some wishy-washy [talk] and [dollar] ranges and non-committal language, but you’ll at least have a frame of reference whether that’s zero dollars, a little bit of money, or a lot of money. And you can start to understand, ‘Well, what do we need to do given this moment?’

Edtech goes back to school

Natasha Mascarenhas surveyed eight leading edtech investors for Extra Crunch about the latest changes happening in the space, especially as its importance has grown during the pandemic. “Investors differed on which subcategories benefitted the most,” she writes, “but it’s clear that the pandemic didn’t lift up the entirety of the edtech space. One investor noted that the pandemic made them even less interested in ISAs, while other venture capitalists noted how valuable the financing instrument is now, more than ever before.” She also took a look at a flurry of acquisitions happening globally in the vertical.

(Photo by Pat Greenhouse/The Boston Globe via Getty Images)

A pledge to support international students

The Trump administration backed down from forcing international students to leave the country if their courses went online-only this week, shortly after being sued by some leading universities and 17 state attorneys general. Following the push against most worker visas and other anti-immigration measures, everyone affected expects more problems. To that end, resident TechCrunch immigration legal expert Sophie Alcorn cofounded a new effort to support international students. Here’s more detail:

We proudly announce the Community for Global Innovation (CFGI), a movement centralizing how companies and individuals around the world can stand in solidarity with international students and the belief that everybody deserves a chance to succeed. CFGI is a constellation of top startups, VCs, professionals, nonprofits, international students and grads. We pledge to support international students, create awareness and effect change.

Through the platform, companies take the CFGI Pledge to support international students: ‘If you’re international, no problem. In our team, everybody has a chance.’ We also teamed up with Welcoming America, a leading U.S. nonprofit, accepting donations to make the U.S. more inclusive toward immigrants and all residents. We’re actively seeking the support of volunteers, corporate donors and community members such as international startup founders who know it’s time to share their stories.

An immersive chat future

Podcasting, social audio and virtual reality are combining into a potentially new trend, Lucas Matney writes for Extra Crunch this week. “As audio-centric platforms garner investor interest, virtual reality founders of old are trying to push 3D audio as the next evolution, presenting the tech in a way that looks entirely different from today’s voice chat platforms. Though some of these efforts have been in the works for a while, the fledgling platforms are a lot more interesting, as social efforts like Clubhouse take flight and investors continue to eat up audio startups.” Top early examples so far include High Fidelity and Teooh. 

Around TechCrunch

Ready, set, network! CrunchMatch is now open for Early Stage 2020

Everything you could possibly want to learn about fundraising will be covered at TC Early Stage

Marketing, PR and brand building, oh my! TechCrunch Early Stage goes down July 21 and 22

Here’s your chance to meet with Sequoia’s partners at TC Early Stage

Sign up for next week’s Pitchers & Pitches competition on 7/23

TechCrunch talks virtual events and event technology

Learn how to build a company that puts profits and users first, and VCs last, at Disrupt 2020

Bumble founder Whitney Wolfe Herd is coming to Disrupt 2020

Emily Heyward will teach you how to make your brand awesome at TC Early Stage

Across the week

TechCrunch

US beat China on App Store downloads for first time since 2014, due to coronavirus impact

China Roundup: Tech giants take stance on Beijing’s data control in Hong Kong

Legal clouds gather over US cloud services, after CJEU ruling

India smartphone shipments slashed in half in Q2 2020

Equity Monday: India’s digital economy attracts ample attention, three funding rounds and earnings season

Extra Crunch

Extension rounds help some startups play offense during COVID-19

How Thor Fridriksson’s ‘Trivia Royale’ earned 2.5M downloads in 3 weeks

Investors are browsing for Chromium startups

As companies accelerate their digital transitions, employees detail a changed workplace

An unsurprising wave of video-focused startups is trying to make video calls better

#EquityPod

From Alex Wilhelm:

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

This week was full of news of all sorts, but as we recorded, both Danny and Natasha “not Tash” Mascarenhas were still locked out of their Twitter accounts after a proletariat revolution on the social platform saw the ruling Blue Checkmark Class forced into silence. That’s not really what happened, but it sounds better than what actually went down at Big Social.

Anyway, Twitter accounts or not, the three of us gathered to parse through a wave of news:

The new TechCrunch List that Danny spent a very long time compiling has arrived! It’s live! You can find it here. It is good.And, if you want to know which VCs were even more fêted by founders, head here. (If you are irked that you did not make either list, please email Danny, not the show!)Moving on, Google is putting billions into Reliance Jio after every other company in the world did the same. Google is buying a bit less of the Indian telecom than the search giant, but between the two of them it’s been more than $10 billion in dealmaking. Perhaps Reliance Jio is done raising money? At last?Udemy is hunting up more capital at a higher valuation, reports say, providing Natasha with the perfect moment to let us know what is going with edtech.Turning to funding rounds, I was hyped about the Macro round that TechCrunch covered this week, Danny wanted to chat about The Browser Company’s similarly sized $5 million round and Natasha talked us through LiteBoxer’s combined $6 million in new capital.Closing, we talked about IPOs for a hot second. The IPO window is open, and now that nCino and GoHealth have gone public, we want to know who is next.

It was a lovely time and there is a bit of show news. Namely that Equity is coming back to YouTube either this week or the next. So if you want to see us talk, soon you will be able to! Again!

Oh, and follow the show on Twitter. If you can, that is.

Equity drops every Monday at 7:00 a.m. PT and Friday at 6:00 a.m. PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Nov
04

Reddit's cofounders sold the company at age 23 for a fraction of the $1.8 billion it's worth today — here's how the duo got back on top

I’m publishing this series on LinkedIn called Colors to explore a topic that I care deeply about: the Renaissance Mind. I am just as passionate about entrepreneurship, technology, and business, as I...

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Original author: Sramana Mitra

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Feb
13

London needs to embrace blockchain post-Brexit for the next 'Big Bang moment'

Sramana Mitra: Any other strategic decisions that you made in building SolidWorks?  Jon Hirschtick: One is, we decided to sell exclusively through a dealer channel. We would not sell directly....

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Original author: Sramana Mitra

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Nov
19

Top 5 stories of the week: DALL-E uses, Nvidia’s digital twins, Microsoft’s AI inference, Intel detects deepfakes

Welcome to The Exchange, an upcoming weekly newsletter featuring TechCrunch and Extra Crunch reporting on startups, money and markets. You can sign up for it here to receive it regularly when it launches on July 25th, and catch up on prior editions of the column and newsletter here

It’s Saturday, July 18, and this is The Exchange. Today we’re wrapping our look at second-quarter VC, capping off the recent IPOs of some venture-backed startups, and digging into the hottest VCs while peeking at a new startup trend.

Venture capital activity by the numbers

As July rubs along we’re getting deeper into the third quarter of 2020, meaning it’s time to close the books on Q2. To that end The Exchange combed through all the second-quarter VC data that we could this week.

But, despite working to grasp the health of the global venture scene, the United States’ own venture capital totals, and diving more deeply into AI/ML startups and how women-founded startups fundraised in Q2, there’s still more data to sift.

Keeping brief as we are a bit charted-out, New York City-based venture capital group Work-Bench released a grip of numbers detailing the city’s enterprise-focused startups’ Q2 VC results. Given that Work-Bench invests in enterprise tech, the data’s focus was not a surprise.

The numbers, per the firm, look like this:

NYC enterprise tech startups raised 51 rounds in Q2 worth $1.5 billion, above Q1 totals of 44 deals worth $1.3 billionThose quarterly results were the best recorded, according to a Work-Bench historical analysis of enterprise tech deals since at least the start of 2014 Q1 and Q2 2020 were so active in the sector and city that the first half of this year saw nearly as many deals and dollars ($2.7 billion in 95 total deals) than the same cohort and metropolis managed in all of 2019 ($3.3 billion in 114 total deals).

The data is not surprising. B2B startups are raking in a larger share of venture capital rounds as time goes along, so to see NYC’s own enterprise-focused startups doing well is not shocking. (And if you add in the recent $225 million UIPath round, the Big Apple’s enterprise startups are even closer to their 2019 venture dollar benchmark, though the UIPath deal came in Q3.)

One last bit of data and we are done. Fenwick & West, a law firm that works with startups, released a report this week concerning Silicon Valley’s own May VC results. Two data points in particular from the digest stood out. Chew on these (emphasis TechCrunch):

The percentage of up-rounds declined modestly from 71% in April to 67% in May, but continued [to be] noticeably lower than the 83% up-rounds on average in 2019. […] The average share price increase of May financings weakened noticeably, declining from 63% in April to 43% in May. The results for both April and May were significantly below the 2019 average increase of 93%.

The Q2 data mix then shakes out to be better than I would have expected with plenty of highlights. But if you look, it isn’t hard to find weaker points, either. We are, after all, in the midst of a pandemic.

Going public in a pandemic

nCino and GoHealth went public this week. TechCrunch got on the blower afterwards with nCino CEO Pierre Naudé and GoHealth CEO Clint Jones. By now you’ve seen the pricing pieces and notes on their companies’ early performance, so let’s instead talk about why they chose to pursue traditional IPOs.

Our goal was to understand why CEOs are going public through initial public offerings when some players in the venture space have soured on traditional IPOs. Here’s what we gleaned from the leaders of the week’s new offerings:

nCino: Naudé didn’t want to dig into nCino’s IPO process, but did note that he read TechCrunch’s coverage of his company’s IPO march. The CEO said that his firm was going to have an all-hands this Friday, and then get back to work. Naudé also said that becoming a public company could help the nCino brand by helping others understand the company’s financial stability. The company’s larger-than-expected IPO haul (one point for the old-fashion public offering, we suppose) could provide it with more options, we learned, including possibly upping its sales and marketing spend.

The Exchange’s take: It’s very hard to get a CEO to say on the record that a different approach to the public markets than the one they took was enticing. Nothing that Naudé was off-script for a newly public company.

GoHealth: Jones told TechCrunch that GoHealth’s IPO was oversubscribed, implying good pre-IPO demand. When it came to pricing, GoHealth worked through a number of scenarios according to the CEO, who didn’t have anything negative to share about how his company finally set its IPO valuation. He did bring up the importance of collecting long-term investors.

The Exchange’s take: GoHealth shares dipped after the company went public, so its offering won’t engender the usual complaints about mispricing. nCino, in contrast, shot higher, making it a better poster child for the direct-listing fans out there.

The method by which a company goes public is only a piece of the public-markets saga that companies spin. Once public, either through a direct listing or SPAC-led reverse-IPO, all companies become lashed to the quarterly reporting cycle. Even more common than complaints about the IPO process among Silicon Valley is the refrain that public investors are too short-term-focused to let really innovative companies do well once they stop being private.

Is that true? TechCrunch spoke with Medallia CEO Leslie Stretch this week to get notes on the current level of patience that public investors have for growing tech companies; are public markets as impatient as some claim? 

According to Stretch, there can be enough space in the public markets for tech shops to maneuver. At least that was his take a year after Medallia’s own 2019 IPO (transcript edited by TechCrunch for clarity; additions denoted by brackets):

[Our] partnership with public investors has been phenomenal. They really test you, you know? They really test your proposition, [and] they test your operational resilience in a way that just makes you better. And they give you feedback. Our philosophy is feedback always makes you better.

What people want to do is they want to crest the really big growth rate [that] is unassailable, it can’t be challenged. And then you come out in public, and it’s a no brainer. And some companies managed to do that. But of the [thousands of Series] A rounds that took place in early 2000s, you know, only 75 companies made it public. Right? We’re one of them.

I’m not fearful. I don’t think people should be fearful of [going public]. They should partner with public investors. The stock price, and the quarter-to-quarter, will be what it will be. Don’t worry about that. It’s what are you building for the long term, and make sure you have enough cash, of course, to meet your ambitions. [But] also a bit of fiscal discipline actually makes your products better, because you think how about how you invest, and harder about your priorities. That’s my view on [the] public piece.

Who wants to bet that unicorns keep putting off their IPOs anyways?

Odds & Ends: Popular VCs, extensions, and more

Let’s wrap with some fun stuff, kicking off with the TechCrunch List, a dataset that set out to figure out which VCs were the most likely to cut first checks. I’ve already used it to help put together an investor survey (stay tuned). It’s in front of the Extra Crunch paywall, so give it a whirl.

If you are part of Extra Crunch, Danny also pulled out an even more exclusive list that we built off the back of thousands of founder comments.

And I have two trends for you to think on. First, a wave of startups are trying to make our new, video-chatting based world a better place to be. It will be super interesting to see how much space is left in the market by the incumbent players currently battling for market leadership.

Second, some startups are raising extension rounds not only because they need defensive capital, but because they’ve caught a tailwind in the COVID era and want to go even faster. So, from a somewhat safe move, some extension rounds these days are more weapons than shields.

And that’s all we have. Say hi on Twitter if there’s something you want The Exchange to explore. Chat soon!

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Nov
19

No, the metaverse is not dead – it’s inevitable

Ilse Calderon Contributor
Ilse Calderon is an investor at OVO Fund where she specializes in pre-seed investments across capital-efficient markets. Prior to OVO, Ilse spent a year at Silicon Valley Bank rotating across consumer and software teams.

While it’s no secret Hispanics represent unparalleled growth opportunities for the U.S. economy, most startups don’t realize Hispanic youth means an abundance of prime spending years (translation: dollars for businesses). The average age of a Hispanic living in the U.S. is 28. Meanwhile, the average age of their white counterpart is 42. Nearly one in every five people in the U.S. identifies as Hispanic. 

Those few companies that do notice Hispanics and their massive purchasing power (~$1.5 trillion) tend to be legacy companies doing a subpar job at capturing the Hispanic consumer. Furthermore, they don’t target the most valuable member of the Hispanic community — what I call, the “Hypercultural Latinx.” They are where tons of unspent dollars lie. 

As an investor and member of the Hispanic community, I’m confident the startups solving problems for this Hypercultural Latinx member will have the potential to create companies with venture-like returns. 

Who is the Hypercultural Latinx?

The Hypercultural Latinx is a second-generation Hispanic who is 100% Hispanic and 100% American. And while that might sometimes lead to misunderstandings and conflicts with her white counterparts, it also means she excels by creating a pseudo culture where she can thrive best. She brings her unique characteristics to this self-created culture — a culture where her customs, language and values shine through. Furthermore, this person, who often identifies as a Gen Zer or young millennial, is a fanatic of mobile. After all, across socioeconomic classes, their disposable income is disproportionately going to screens (of all types) and tech toys.

I mean, just go into your Hispanic friend’s home: They are likely to have more TV screens than people residing in that household. In fact, a bewildering 29% of U.S. Hispanics planned to purchase a new TV set just ahead of the Super Bowl (guilty as charged). For reference, of the 30% of overall Americans that planned to buy a TV in 2017, only 2.8% purchased in the days before the Super Bowl. Heck, when my family moved, we bought TV screens for every room even before the living room was furnished. Technology — especially newer tech, is significantly more tempting to Hispanics. 

The Hypercultural Latinx should be top of mind for venture investors and founders. She desires to test the untested, and thus, is likely to cross the chasm before the early majority. This makes her an ideal customer segment for consumer startups.

Image Credits: Ilsa Calderon

Startup founders and VCs alike are missing out. As an investor, I often find myself reduced to frustration with the lack of founders and investors committed to exploring audience segments outside cookie-cutter ones. We might not need another consumer vertical product solving a half-felt pain point for the highly educated, white female with a $100,000+ salary living in NYC, SF or LA. However, we do need more products catered toward the Hypercultural Latinx who, by the way, outspend their white counterparts across most categories. In the same way Fenty Beauty exists to solve the make-up needs of primarily Black women, we need that for the Hypercultural Latinx population.

Numbers aside, investors should care about Hypercultural Latinx because they are tech-forward trendsetters who adopt social media at higher rates than their white peers. For example, a Hispanic youth is 87% more likely to use WhatsApp. Additionally, they produce an exorbitant amount of videos on Tik Tok. Several Tik Tok Hispanic-centric hashtags, such as #hispanicmom, are wildly popular and boost over 44 million views. For reference, the most followed Tik Tok stars, like Addison Rae, have just over 47 million followers. In fact, one Hispanic Tik Tok queen, Rosa, has already reached pop culture peak

Facebook ad experiment

Examples of ads I ran. (Image Credits: Ilse Calderon )

If you are more driven by quantitative data, know that paid spend targeting this Hypercultural Latinx could result in lower click cost rates and higher engagement. I ran a two-week experiment on Facebook to prove out this hypothesis. I created a landing page for a fake sunscreen brand, Bounce Skin, with a fake first product, an SPF mist. I created a couple of ads. Then, I ran ads on Facebook targeting two audiences: young Hispanic girls (the Hypercultural Latinx audience) and white girls. The average click cost for the young Hispanic girl audience was $0.06 per click; for white girls, it was $0.33 per click. Of course, my experiment was limited, but it did demonstrate that the Hypercultural Latinx is out there and craving content that tells the narrative of her life. (For more details, please check out this Medium post).

Why is the tech community decades behind when it comes to this Hispanic segment? 

Three key reasons: fear, the subpar state of Hispanic marketing and white men cannot relate to the Hypercultural Latinx. 

Fear. There’s always risk associated with offending the same audience you are trying to captivate. Just take a look at the beauty industry and its frequently associated race problem. The world is not white, and beauty brands that think it is have lived through PR nightmares. Even beyond beauty, tech startups fear negative press cutting short the life of their business. However, it is this gap that creates opportunity.

I encourage the right set of up and coming startups to authentically pursue the Hypercultural Latinx. Even though legacy companies might have heavier balance sheets, they don’t have the clout to lure this young, bicultural consumer. Let’s just say, no 18-year-old is going to be rushing to the Walmarts of the world looking for aspirational goods. They are even less likely to browse Walmart.com for content. 

The state of U.S. Hispanic marketing is ridiculous. In fact, there’s a graveyard of failed marketing attempts to the Hispanic community. Most recently, there was a Mother’s Day Kmart ad that blended two Spanish words (Mama + Namaste) to accidentally create a word translating into a very vulgar and offensive word. Furthermore, given most businesses’ “one size fits all” approach to Hispanic marketing, it’s no surprise they keep getting it wrong. However, if anyone is best positioned to take Hispanic marketing out of the 20th century, it’s small, nimble startups with no history of bad marketing or image problems. 

Perhaps the biggest reason the tech community isn’t approaching the Hypercultural Latinx is because most venture-backed founders and investors are white men. These white men cannot possibly relate to the life experiences of young, biracial teenagers and young adults living in white America. Last year, a measly less than 2% of venture funding went to Hispanic founders — those are the founders best suited to be able to genuinely capture the eyeballs and wallets of this Hispanic youth. On the investor side, it’s even worse with only 1% of venture investors identifying as Hispanic. 

The solution is complex, and frankly, I can’t provide a solution with clarity. However, we can start by building goodwill and non-transactional relationships with those role models Hypercultural Latinx admire. I’ve found that these role models are usually under-the-radar influencers, like Glenda. We as investors can also diversify our top of funnel deal flow to include more underrepresented founders. Lastly, founders with a reach and network of Hispanic youth should consider diving deep into the pain points of Hypercultural Latinx lives.

The new darling of the VC world will be solving problems for the Hypercultural Latinx

In order to become this new VC darling, founders approaching the Hypercultural Latinx should consider two suggestions: a platform play and an army of social guides.

The platform approach entails creating an organization of brands that later spew out new brands horizontally or vertically. An example of this is the company behind my favorite over-priced lemon drink, Iris Nova, or Glossier-team spin-off, Arfa.

The second approach, an army of social guides, means combining elements of affiliate marketing with a kick-ass referral program to create loyal fans that are financially incentivized to sell your products. Sequoia-backed Stella & Dot built out their version of social guides that ultimately became its most defensible strategy. Additionally, in a post-coronavirus world, this strategy is a way for an ever-increasing labor force to get back on their feet. 

At the end of the day, the Hypercultural Latinx demographic is only increasing, and so are its needs. For founders who truly care about the U.S. Hispanic market, pay attention to this hidden generation. For investors, look beyond solutions for your own problems. Winning over the multi-faceted Hypercultural Latinx is not easy, but startups that successfully do so attract my attention and my investment dollars. 

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