Jun
25

PagerDuty expands enterprise incident management with remediation tools

PagerDuty expands the scope of its incident management platform to address emerging digital business requirements.Read More

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Jun
25

The DeanBeat: Social numbers show who won the virtual E3 2021

Based on Spiketrap and Facebook, the winners of E3 included Metroid Dread, Halo Infinite, Breath of the Wild 2, and Battlefield 2042.Read More

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Jun
25

Precisely: 82% of data executives cite data quality as a barrier

Digital transformation initiatives require trusted data, but 82% of CDOs in Precisely's research said data quality was a barrier to success.Read More

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Jun
25

Nexon CEO Owen Mahoney: Game companies say they love innovation but resist creators at every turn

Nexon CEO Owen Mahoney says game companies say they love innovation and support creators, but they throw roadblocks in their paths.Read More

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Jun
25

Gotrade gets $7M led by LocalGlobe to let investors around the world buy fractional shares of U.S. stocks

Stock in many American companies, like Amazon, Alphabet or Tesla, can host hundreds or thousands of dollars per share. Fractional trading, or buying part of a single share through a brokerage, makes them more accessible—at least to people within the United States. Investors in other countries, however, often have to pay high fees through interactive brokers. Gotrade makes fractional trading of U.S. stocks available to people in 150 countries, and charges a minimum of just one dollar.

The startup announced it has raised $7 million in seed funding led by LocalGlobe, with participation from Social Leverage, Y Combinator, Picus Capital and Raptor Group. The round also included angel investors like Matt Robinson, co-founder of GoCardless; Carlos Gonzalez-Cadenas, former chief product officer of Skyscanner; Frank Strauss, former head of Deutsche Bank’s global digital business; and Joel Yarbrough, Asia-Pacific head at Rapyd.

GoTrade was founded in 2019 by David Grant, Norman Wanto and Rohit Mulani. Its app launched three months ago and is currently invite-only. Gotrade claims sign-ups have grown 20% week-on-week, and it now has more than 100,000 users spread across the world. About 65% of Gotrade’s users have traded stocks before, while the rest are first-time investors.

Mulani, the company’s chief executive officer, told TechCrunch that the idea for Gotrade was planted when he became interested in American stocks, but discovered many barriers to trading.

“When I was 18, I actually looked to get access in Singapore, and banks were charging $30 per trade. Effectively, the market taught me that I could not get into the market. Fast forward ten years, I decided to look into it again, and the banks were still charging $25 a trade,” he said. “On top of that, their user interfaces were something I didn’t want to look at. So we decided to build a brokerage platform where anyone can get access.”

“Fractional trading actually came a bit later,” he added. “That was the real MVP for us because fractional really makes investing accessible to anyone globally since all you need is one dollar.”

Robinhood, SoFi and Stash all feature fractional trading, but Mulani said those apps are primarily used by U.S. residents. On the other hand, Gotrade is not available to U.S. residents because of financial regulations, so its main competitors are interactive brokers, Saxo Bank and eToro.

Gotrade does not charge commission, custody, inactivity or dividend fees. Instead, it monetizes by collecting a small fee on the currency exchange from deposits, and interest generated from uninvested cash in brokerage accounts. The app is free to use, but plans to add a premium paid subscription program and virtual debit card that users can link to their accounts.

Many of Gotrade’s users are people who have invested in their local stock markets, but weren’t able to trade U.S. stocks before. They vary widely in age, but 25- to 34-year-olds are the app’s biggest segment, and the average account size is about $500.

Gotrade acts as an introducing broker to Alpaca Securities LLC, a U.S. stock brokerage that is regulated by the Financial Industry Regulatory Authority (FINRA) and serves as an intermediary. Alpaca Securities splits its stock inventory into fractions, and Gotrade users can decide how many fractions they want to buy. The app also allows them to set a budget, and automatically calculates the amount of fractional shares they can afford through notional value trading.

User accounts are protected up to $500,000 by the Securities Investor Protection Corporation (SIPC), and money goes through counterparties regulated in Singapore, like Rapyd, and the United States, including Alpaca and First Republic Bank. To protect users, Gotrade works only with fully-funded cash accounts without any margin facility. Mulani explained that a margin account effectively means people are borrowing money to invest, while a fully-funded account means that a user can only invest the money they have already deposited in their account. FINRA and Securities Exchange Commission regulations also mean accounts under $25,000 can only day trade, or buy and sell a security on the same day, up to three times every five trading days.

Like many investment apps aimed at first-time or relatively new traders, Gotrade includes educational content, like pop-ups with definitions for investment terms, and news articles about publicly-traded companies. Its new funding will be used for hiring and product development, with a strong focus on adding more in-app content.

In a statement, LocalGlobe partner Remus Brett said, “Over the past 100 years, U.S. stocks have delivered average annual returns of 10%. With compounding, an investment of $1,000 back then would be worth $13 million today. These returns have fueled wealth creation in the U.S. and other developed markets but most of the world has missed out. We believe Gotrade has the potential to help the world’s 99% gain access the same benefits that the 1% have. We are incredibly excited to be joining Rohit, David and Norman on this journey.”

 

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Jun
24

Nixie’s drone-based water sampling could save cities time and money

Regularly testing waterways and reservoirs is a never-ending responsibility for utility companies and municipal safety authorities, and generally — as you might expect — involves either a boat or at least a pair of waders. Nixie does the job with a drone instead, making the process faster, cheaper and a lot less wet.

The most common methods of testing water quality haven’t changed in a long time, partly because they’re effective and straightforward, and partly because really, what else are you going to do? No software or web platform out there is going to reach into the middle of the river and pull out a liter of water.

But with the advent of drones powerful and reliable enough to deploy in professional and industrial circumstances, the situation has changed. Nixie is a solution by the drone specialists at Reign Maker, involving either a custom-built sample collection arm or an in-situ sensor arm.

The sample collector is basically a long vertical arm with a locking cage for a sample container. You put the empty container in there, fly the drone out to the location, then submerge the arm. When it flies back, the filled container can be taken out while the drone hovers and a fresh one put in its place to bring to the next spot. (This switch can be done safely in winds up to 18 MPH and sampling in currents up to 5 knots, the company said.)

Image Credits: Reign Maker

This allows for quick sampling at multiple locations — the drone’s battery will last about 20 minutes, enough for two to four samples depending on the weather and distance. Swap the battery out and drive to the next location and do it all again.

For comparison, Reign Maker pointed to New York’s water authority, which collects 30 samples per day from boats and other methods, at an approximate cost (including labor, boat fuel, etc) of $100 per sample. Workers using Nixie were able to collect an average of 120 samples per day, for around $10 each. Sure, New York is probably among the higher cost locales for this (like everything else) but the deltas are pretty huge. (The dipper attachment itself costs $850, but doesn’t come with a drone.)

It should be mentioned that the drone is not operating autonomously; it has a pilot who will be flying with line of sight (which simplifies regulations and requirements). But even so, that means a team of two, with a handful of spare batteries, can cover the same space  that would normally take a boat crew and more than a little fuel. Currently the system works with the M600 and M300 RTK drones from DJI.

Image Credits: Reign Maker

The drone method has the added benefits of having precise GPS locations for each sample and of not disturbing the water when it dips in. No matter how carefully you step or pilot a boat, you’re going to be pushing the water all over the place, potentially affecting the contents of the sample, but that’s not the case if you’re hovering overhead.

In development is a smarter version of the sampler that includes a set of sensors that can do on-site testing for all the most common factors: temperature, pH, troubling organisms, various chemicals. Skipping the step of bringing the water back to a lab for testing streamlines the process immensely, as you might expect.

Right now Reign Maker is working with New York’s Department of Environmental Protection and in talks with other agencies. While the system would take some initial investment, training, and getting used to, it’s probably hard not to be tempted by the possibility of faster and cheaper testing.

Ultimately the company hopes to offer (in keeping with the zeitgeist) a more traditional SaaS offering involving water quality maps updating in real time with new testing. That too is still in the drawing-board phase, but once a few customers sign up it starts looking a lot more attractive.

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Jun
24

Reform your startup’s meeting culture

Chuck Phillips Contributor
Chuck Phillips is the co-founder of MeetWell, an application that enables teams to achieve a better work-life balance while saving companies money by reducing the amount of bad meetings they attend.

Bad meetings are the fast food of the knowledge worker; it’s so deliciously quick and easy to throw a 60-minute default meeting on everyone’s schedule, but the long-term costs are extremely unhealthy.

Busy meeting organizers drive-thru schedule meetings because they think they don’t have time to plan. They expect good outcomes to come from little preparation, which doesn’t happen. The meetings are being held and progress is stilted.

One way to save everyone significant time (and win lots of friends) would be to just get rid of all meetings, but a well-prepared and well-run session can expedite communication and get a team closer to its goals. Unfortunately, most meetings are lazily planned and poorly run, imprisoning attendees and halting productivity.

So how can you separate the good meetings from the bad?

Measure your meeting waistline

No one measures the impact of their meetings. So the first step is to start keeping meeting metrics so that you can identify the bad meetings on your teams’ calendars.

Every time a recurring meeting is added to a calendar, a kitten dies.

My company has created a calendar assistant that automatically measures and stops bad meetings before they occur, but if you can’t automate the prevention of bad meetings, survey and learn from attendees after the meeting to record and measure them.

Create taxonomies and quantify the types of meetings that are being held — for example: “information sharing,” “brainstorming,” “1:1,” “decision-making,” etc.

After several months (ideally a year) of collecting metrics, you can grade the quality and look for patterns. You will probably find something along these lines:

Very few employees decline meetings, even when it’s obvious that the meeting is going to be a doozy.

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Jun
24

Env0 lands $17M Series A as infrastrucure as code control plane gains traction

As companies deliver code ever faster, they need tooling to provide some semblance of control and governance over the cloud resources being used to deliver it. Env0, a startup that is helping companies do just that, announced a $17 million Series A today.

M12, Microsoft’s Venture Fund, led the round with participation from previous investors Boldstart Ventures, Grove Ventures and Crescendo Ventures. The company received a $3.3 million seed round, which we covered, last April and a previously unannounced $3.5 million add-on last summer. Today’s round brings the total raised to $23.8 million.

The company’s service helps companies control cloud costs, while giving developers the ability to deploy to the cloud with cost limits. It also provides a level of governance for code as it moves through the development cycle to deployment.

When we spoke to the company last April around its seed round, the company’s product was just entering beta. It has been generally available for about 4 months now and they’ve built out a lot of functionality since then, according to company co-founder and CEO Ohad Maislish.

“The last time we spoke we were just focussed on manual self service and empowering developers in non production environments. Now with infrastructure as code automation and teams and governance, we basically manage all of the cloud deployments for our customers,” Maislish explained.

Since going generally available with the product this year, he reports the company now has dozens of paying customers and is generating revenue. Customers includes JFrog, Varonis and BigID.

The startup has also grown from just 7 employees in April 2020 to 17 today with plans to reach 50 in the next 18 months it begins putting the new capital to work. He says that bringing in a diverse group of workers should help his company grow and bring different ways of solving problems. “I think that bringing people with different cultures, different backgrounds, is key in that they will bring [different ways of thinking].”

For now, the company is based in Israel with plans to open offices in the U.S.. Mailslish says that his plans to move to California were put on hold by the pandemic, but he hopes to open an office in Sunnyvale in the fall.

The Israeli office is a minimum of two days in the office, three days at home or whatever combination employees wish. He says that he plans to hire people in the U.S. office as he establishes himself there and some of those employees can be remote if it makes sense for the role.

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Jun
24

Orbion, manufacturer of in-space plasma propulsion systems, raises $20M Series B

Electric propulsion developer Orbion Space Technology has raised $20 million in a Series B funding round, which it says it will use to scale production capacity of its Aurora propulsion system.

The Michigan-based startup manufactures Hall effect plasma thrusters for use in small and cube satellites. Thrusters are used throughout the lifespan of a satellite (or any object in space that needs to maintain its orbit, like the space station) to adjust orbital altitude, avoid collisions and de-orbit the craft once it has reached the end of its useful life. Hall thrusters use a magnetic field to ionize a propellant and produce plasma.

While they have long been used in space, this type of thruster has mostly been too expensive for small satellite operators. Orbion says it has created a cost-effective production capacity to meet the growing demand of startups and developers launching to low-Earth orbit. Orbion CEO Brad King said in a statement that the company considered contract manufacturers but ultimately chose a vertically integrated manufacturing model. Now, the company says it has outgrown its existing manufacturing space.

The company is facing “unprecedented market demand” for its Aurora system, King said. With the boom of the so-called new space economy, driven in part by the decreased costs of processors, components and even launch, it’s no surprise that there’s been a concurrent uptick in demand for efficient in-space propulsion systems.

The company had previously raised a $9.2 million Series A in August 2019. Since that time, the company secured a research partnership with the U.S. Department of Defense that’s testing the resiliency of American space systems. Orbion also landed a contract with satellite manufacturer Blue Canyon Technologies last September.

This most recent funding round was led by the U.S.-India VC firm Inventus Capital Partners, with additional participation from Material Impact, Beringea and Wakestream Ventures.

“The space game is changing,” Inventus Capital Partners investor Kanwal Rekhi said in a statement. “Large satellites are being replaced by a multitude of nanosatellites; just like the PCs replaced mainframes. Orbion is providing these nanosatellites maneuverability to get into more precise orbits and stay there longer.”

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Jun
24

Accept.inc secures $90M in debt and equity to scale its digital mortgage lending platform

A lot of startups were built to help people make all-cash offers on homes with the purpose of gaining an edge against other buyers, especially in ultra-competitive markets. 

Accepti.inc is a Denver-based company that is attempting to create a new category in real estate technology. To help scale its digital mortgage lending platform, the company announced today that it has secured $90 million in debt and equity – with $78 million in debt and $12 million in equity. SignalFire led the equity portion of its financing, which also included participation from existing seed investors Y Combinator and DN Capital.

Accept.inc describes itself as an iLender, or a “technology-enabled lender” that gives people a way to submit all-cash offers on a home upon qualifying for a mortgage.

Using its platform, a buyer gets qualified first and then can start looking for homes that fall at or under the amount he or she is approved for. They can purchase a more expensive home, but any amount above what they are approved for would have to come out of pocket. Historically, most buyers don’t know that they will have to pay out of pocket until they’ve made an offer on a specific home and an appraisal comes under the amount of the price they are paying for a home. In those cases, the buyer has to cough up the difference out of pocket. With Accept.inc., its execs tout, buyers know upfront how much they are approved for and can spend on a new home “so there are no surprises later.”

SignalFire Founding Partner and CTO Ilya Kirnos describes Accept.inc as “the first and only iLender.”

He points out that since it is a lender, Accept.inc doesn’t make its money by charging buyers fees like some others in the all-cash offer space.

“Unlike ‘iBuyers’ or ‘alternative iBuyers,’ Accept.inc fronts the cash to buy a house and then makes money off mortgage origination and title, meaning sellers, homebuyers and their agents pay no additional cost for the service,” he told TechCrunch.

IBuyers instead buy homes from sellers who signed up online, make a profit by often fixing up and selling those homes and then helping people purchase a different home with all cash. They also make money by charging transaction fees. A slew of companies operate in the space including established players such as Opendoor and Zillow and newer players such as Homelight.

Image credit: Accept.inc. Left to right: Co-founders Adam Pollack, Nick Friedman and Ian Perrex.

Since its 2016 inception, Accept.inc says it has helped thousands of buyers, agents and sellers close on “hundreds of millions of dollars” in homes. The company saw ”14x” growth in 2020 and from June 2020 to June 2021, it achieved “10x” growth in terms of the size of its team and number of transactions and revenue, according to CEO and co-founder Adam Pollack. Accept.inc wants to use its new capital to build on that momentum and meet demand.

Pollack and Nick Friedman met while in college and started building Accept.inc with the goal of “turning every offer into a cash offer.” The pair essentially “failed for two years,” half-jokes Pollack.

“We basically became an encyclopedia of 1,000 ways the idea of helping people make all-cash offers wouldn’t work,” he said.

The team went through Y Combinator in the winter of 2019 and that’s when they created the iLender concept. In the iLender model, the company uses its cash to buy a house for buyers. Once the loan with Accept.inc is ready to close, the company sells back the house to the buyer “at no additional cost or fees.”

“Basically what we learned through those two years is that you have to vertically integrate all of your core competencies, and you can’t rely on third parties to own or manage your special sauce for you,” Pollack told TechCrunch. “We also realized that if you’re going to build a cash offer for anyone who could afford a mortgage, you’ve got to make it a full bona fide cash offer that closes in three days as opposed to a better version of what existed. And you have to own that, and take the risk that comes with it and be comfortable with that.”

The benefits of their model, the pair say, is that buyers get to be cash buyers, sellers can close in as little as 72 hours, and agents “get a guaranteed commission check.” 

“Our mission is that everyone should have an equal chance at homeownership,” Friedman said. “We not only want to level the playing field, we want to create a new standard.”

Buyers using Accept.inc win 6-7 times more frequently, the company claims. With its new capital, It also plans to double its team to 90 and enter new markets outside of its home base of Denver.

SignalFire Partner Chris Scoggins believes that Accept.inc is different from other lenders in that its focus is on “winning the home, not just servicing the loan, with a business model that’s 10x more capital-efficient than other players in the market.

The team is driven…to level the playing field for homebuyers who today lose out against all-cash offers from home-flippers and wealthy individuals,” he added. “We see an enormous opportunity for Accept.inc to become the backbone of the future of mortgage lending.”

 

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Jun
24

Visa to acquire open banking platform Tink for more than $2 billion

Visa has announced plans to acquire Tink for €1.8 billion, or $2.15 billion at today’s exchange rate. Tink has been a leading fintech startup in Europe focused on open banking application programming interfaces (APIs).

Today’s move comes a few months after Visa abandoned its acquisition of Plaid, another popular open banking startup. Originally, Visa planned to spend $5.3 billion to acquire the American startup. But the company had to call off the acquisition after running into a regulatory wall.

Tink offers a single API so that customers can connect to bank accounts from their own apps and services. For instance, you can leverage Tink’s API to access account statements, initiate payments, fetch banking information and refresh this data regularly.

While banks and financial institutions now all have to offer open banking interfaces due to the EU’s Payment Services Directive PSD2, there’s no single standard. Tink integrates with 3,400 banks and financial institutions.

App developers can use the same API call to interact with bank accounts across various financial institutions. As you may have guessed, it greatly simplifies the adoption of open banking features.

300 banks and fintech startups use Tink’s API to access third-party bank information — clients include PayPal, BNP Paribas, American Express and Lydia. Overall, Tink covers 250 million bank customers across Europe.

Based in Stockholm, Sweden, Tink operations should continue as usual after the acquisition. Visa plans to retain the brand and management team.

According to Crunchbase data, Tink has raised over $300 million from Dawn Capital, Eurazeo, HMI Capital, Insight Partners, PayPal Ventures, Creades, Heartcore Capital and others.

“For the past 10 years we have worked relentlessly to build Tink into a leading open banking platform in Europe, and we are incredibly proud of what the whole team at Tink has created together,” Tink co-founder and CEO Daniel Kjellén said in a statement. “We have built something incredible and at the same time we have only scratched the surface.”

“Joining Visa, we will be able to move faster and reach further than ever before. Visa is the perfect partner for the next stage of Tink’s journey, and we are incredibly excited about what this will bring to our employees, customers and for the future of financial services.”

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Jun
23

This QR code startup just raised $5 million co-led by Coatue and Seven Seven Six

Amazon revolutionized one-click shopping, and it has a nearly $2 trillion market cap to show for the effort.

Now, a 10-person startup founded by JD Maresco, who previously cofounded the public safety app Citizen, says it plans to make it a lot easier for retailers who sell directly to their customers to make re-ordering their products just as fast and simple through its QR codes. Indeed, Maresco’s new startup, Batch, is already working with numerous products and brands that use Shopify, promising their customers “one-tap checkout” when it’s time to re-order an item as long as the retailer has slapped one of Batch’s codes on their items or incorporated the codes directly into their packaging.

For the moment, New York-based Batch is wholly reliant on Apple’s App Clip technology, which produces a lightweight version of an app to save people from having to download and install it before using it. (Users can instead load just a small part of an app on demand, and when they’re done, the App Clip disappears.)

But Maresco — whose company just raised $5 million in seed funding co-led by Coatue and Alexis Ohanian’s Seven Seven Six, with participation from Weekend Fund, Shrug Capital, and the Chainsmokers, among others — says Batch will eventually work on both iOS and Android phones. We talked with him yesterday to learn more about Batch’s ambitions to make the physical world “instantly shoppable.” Our chat has been edited lightly for length and clarity.

TC: Citizen and Batch are very different companies. Is there a unifying thread?

JM: I’ve spent a good portion of my career, trying to change the way people think about and interact with their physical environment. With Citizen, we were questioning why everyone doesn’t have immediate access to information about what the police are doing in our neighborhoods. With Batch, we’re asking a simpler question but something that matters to me as a consumer: Why isn’t it easier for me to get more of a product I love and use?

With subscriptions in general, I’ve found myself constantly frustrated because every few weeks I’m emailing to either pause a subscription or restart it. I wanted an easier way to use my phone to re-order in 10 seconds on the spot. Our phones are capable of much more than we put them to use for and, so we set out to tackle that problem.

TC: Right now, Batch integrates with Shopify alone, correct?

JM: We have a Shopify plugin that brands can connect into the Batch platform, and then we integrate the experience, all the way from the physical world wherever this QR code lives, through the purchase experience on the mobile side of things into their fulfillment on the back end. But we’re also expanding to other e-commerce platforms.

TC: And Batch takes a per-transaction fee from every item that’s purchased using your codes?

JM: We’re developing our pricing model over time, but currently we’re taking a service percentage-based fee.

TC: How are you getting brands to partner with you?

JM: Brands are starting to wake up to this idea that they can actually create a new retail channel off their physical packaging, where a customer can effectively shop throughout their home or their place of work or anywhere where they interact with these products the moment they run out of an item. So we’ve been able to spend time with dozens of brands now, and work with them to actually reengineer their packaging and say, ‘Let’s put QR codes front and center and figure out how to make this a really important customer touchpoint.’

TC: How many brands are using the codes currently?

JM: We’re launching dozens of brands this summer. We’ve had overwhelming demand, to be honest, and we haven’t really even fully launched yet.

TC: These are physical codes that you’re sending off to your retail partners — stickers, magnets. Are you also creating digital QR codes?

JM: We have customers that are integrating QR codes into out-of-home advertisements, into direct mail, into T shirts, into promotional vans, so we’re not just limited to packaging. There’s a wide range of places that you can integrate QR codes for your customers.

TC: It’s interesting that Coatue led your round. We’ve seen the firm delve more into early-stage deals but a seed round seems anomalous. How did you connect?

JM: We met during the seed process. They reached out to me and I developed a relationship with Andy Chen and Matt Mazzeo and it was a great opportunity to work with their platform — the way they support the go-to-market motion around B2B companies; they have a great data platform.

Alexis [Ohanian’s] experience in the consumer space was really appealing, too.

TC: Your company makes sense, but I wonder what’s special about these codes. What’s to prevent countless other startups from doing what you’re doing?

JM: QR codes are all over the place. The product we’re building makes it really easy for brands to create high converting shopping experiences and a native mobile interface. It’s a combination of our Shopify integration and our native product design experience and the relationships we have with these brands and how we help them with their packaging that’s not something you can spin up overnight.

TC: I have to ask about Citizen, which was in the headlines recently for all the wrong reasons. Is there anything you want to say about the company or the app or some of that recent coverage?

JM:  I’m not going to comment on the recent press, but I continue to be proud of what the company is continuing to do to help communities stay safe and understand what police and first responders are doing in their neighborhoods.

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Jun
23

6 strategies for running more effective startup board meetings

Sylvain Kalache Contributor
Sylvain Kalache is the co-founder of Holberton, an edtech company training digital talent in more than 10 countries. An entrepreneur and software engineer, he has worked in the tech industry for more than a decade. Part of the team that led SlideShare to be acquired by LinkedIn, he has written for CIO and VentureBeat.

For many companies in the United States, a board of directors is a fact of doing business. While sole proprietorships and LLCs are not obligated to have one, C and S corporations must. The board’s goal is to ensure the best is done for the company and its shareholders. While many entrepreneurs see board meetings as a chore, they can be a powerful tool if used well.

Communicate often

While board meetings usually happen quarterly, it’s good practice to keep the conversation going in between them. Sending a monthly email update to the board offers multiple advantages:

Shorter updates: Business professionals’ attention spans are shrinking. Shorter content is easier to digest, and therefore more likely to be read.Timely feedback: A quarter can be a long time, especially for young startups or during challenging times. The monthly format allows the company to receive help or feedback from the board earlier. In business, speed of iteration is key!Keep them posted: Keeping directors up to date will avoid lengthy updates during board meetings, ensuring focus remains on strategic conversations.

Reach out when in need

When meeting online, founders should pause often and regularly ask if there are questions — even if moments of silence feel awkward at times — to give directors a better opportunity to speak up.

Board members can also be solicited on an ad-hoc basis — founders should keep in mind that board members are here to help the company. If you have doubts about a project decision or want a second, informed opinion, reach out to a board member. This is especially true of directors who have expertise on a specific topic. A quick five-minute call can be a game changer.

Being a founder can be a lonely experience because it can be difficult to discuss sensitive matters with the team. Board members should sign nondisclosure agreements, allowing entrepreneurs to share confidential information and get a different perspective on things.

Discuss goals for the next fundraising event

Founders should make sure to regularly discuss business goals to ensure they reach their next round of funding. Because the industry landscape or economy evolved or the competition stepped up, investors may reconsider their expectations to further fund the company.

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Jun
23

Before an exit, founders must get their employment law ducks in a row

Rob Hudock Contributor
Rob Hudock is an experienced litigator focusing his 20-plus years in practice on helping companies recruit the best talent available while avoiding distracting workplace issues or lawsuits.

Successfully selling a business has much to do with timing. For many entrepreneurs, it’s the high-stakes end game where they cash out and reap the rewards of their efforts. At a certain point, when both buyers and sellers are working hard to close the deal, negotiations can move very quickly. If you’re the seller, this is not the time to discover unanticipated problems in your business.

Distressingly often, these problems are related to employment. Inattention to employment issues can have a significant impact on deals — from preventing closings and reducing the deal value to altering the deal terms or significantly limiting the pool of potential buyers.

Poor compliance, lack of policies or flawed practices mean potential liability exposure or expensive policy revisions and employee retraining — all of which can devalue your business.

Fortunately, such issues typically can be resolved well in advance with a little forethought and legal guidance. It’s important to get your employment ducks in a row long before you start planning your exit.

What follows is an overview of the three main categories of employment issues that can derail or delay a sale. For the most part, these assume an asset sale, but may vary in the case of a stock sale.

Compliance

By far the most significant problem is general employment law compliance. This means creating strong employment policies and practices that are documented, in place and operating long before you pursue a deal. The key area is wage and hour issues — timekeeping and payroll practices, worker classification issues (employee vs. independent contractor; exempt vs. non-exempt), meal and rest periods, PTO policies and payouts at termination.

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Jun
24

Immutable will launch Ethereum token for Gods Unchained

Immutable said today that the Gods Unchained blockchain card game will launch a new Ethereum token dubbed $GODS.Read More

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  40 Hits
Jun
24

Survey-style measurement of IT isn’t effective, a ‘rigged lottery’

Survey-style measurement of IT is a rigged lottery as it falls far short of providing a true measure of Digital Employee Experience (DEX).Read More

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  33 Hits
Jun
24

Natural language processing tech startup Primer raises $110M

With $110 million in funding, natural language processing platform Primer plans to add pharmaceutical and financial customers.Read More

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  36 Hits
Jun
23

SingleStore revamps database architecture to drive transaction analytics

SingleStore adds Universal Storage capability to enable IT organizations to rationalize the number of databases required.Read More

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  29 Hits
Jun
23

Deep Instinct: AI, deep learning tools can help prevent cyberattacks

In Deep Instinct's Voice of SecOps report, 86% of respondents said tools driven by AI, ML, and deep learning would help fight cyberattacks.Read More

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Jun
23

Veracode: 79% of devs don’t update third-party libraries in their code

The Veracode SoSS v11: Open Source Edition found that 79% of developers never update third-party libraries included in a codebase.Read More

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  41 Hits