Oct
27

The 7 most incredible things I've seen in 'Red Dead Redemption 2,' the huge new blockbuster game from the makers of 'Grand Theft Auto'

Antler is an early-stage venture capital firm which can also be described as a “company builder.” It helps founders build complementary co-founding teams, provides support with deep business model validation and a global platform for scaling their businesses. To date, Antler has invested in and helped build over 250 companies. Of these companies, 40% have at least one female co-founder, and the founders represent more than 70 nationalities.

Founded in 2017 by serial entrepreneur, Magnus Grimeland, and a team of experienced entrepreneurs, investors, and company builders worldwide, Antler has raised more than $75 million to help entrepreneurs spread across nine of the world’s major entrepreneurial hubs. They include Amsterdam, Berlin, London, Nairobi, New York, Oslo, Singapore, Stockholm and Sydney.

Antler’s only office in Africa is in Nairobi, and it is run and led by women.

Marie Nielsen, founder of a paper recycling company in Ethiopia called Penda Paper Recycling, is a partner at the firm. She was an associate partner at Mckinsey & Company responsible for opening their Addis Ababa office. Melalite Ayenew is the firm’s tech partner. Her prior experience includes Oracle, Bain & Company, and Princeton Consultants. Selam Kebede is the firm’s director and leads operations. Before joining Antler, she worked for a couple of VCs and entrepreneurship support organizations.

Turning professionals to founders

Similar to other locations around the world, Antler East Africa runs two cohorts in a year. The firm is particular about adopting a people-first approach, and they bring together professionals with, on average, 10 years of experience in their respective industries. These professionals who become founders ideate, iterate and create solutions typically based on insights they have gathered or problems observed during the course of their past professional experience in their respective industries. After six months of incubation, the firm invests in the teams they can help further. Typically in the pre-seed stage, Antler cuts $100,000 checks for a 10-20% equity in each selected team. But for Antler East Africa, the stake is exactly 20%.

“Our process is very hands-on; by working with the co-founders over several months, we get the opportunity to help shape the business models and perform extensive due diligence before investing,” Nielsen said to TechCrunch.

The due diligence Nielsen talks about is supported by the global Antler platform, where they pull upon its network of more than 400 experts across technologies and industries. After the pre-seed investments, Antler East Africa claims to continue to support the teams as they hit the ground running and start raising funds from follow-on investors

Ayenew adds that the firm is also exploring the opportunity to invest in pre-existing, early-stage startups developed outside its program, but early enough for them to come in and still provide value in addition to the monetary investment.

Given that Nairobi is Antler’s only office in Africa, the team looks out for founders working on pan-African problems and solutions. It has attracted founders from more than 15 African countries, which plays a large role in maintaining its cohorts’ outlook to be organically pan-African.

To date, Antler East Africa has invested in a broad range of technology companies in the B2B, B2C and direct-to-consumer space, ranging from emerging sectors like robotics and AI to sectors such as health tech, fintech, and proptech. From its last two cohorts, Antler East Africa has invested in six startups. They include:

Cooked, a subscription-based meal kit provider, helps consumers search for, shop, and cook food at home better. Cooked operates with weekly and monthly subscriptions and delivers products home to its customers on pre-agreed days of the week. The founders have more than 20 years of experience in finance, food, and restaurants industries between themselves. 

UNCOVER claims to be building the continent’s most trusted skincare brand and content platform by partnering with top skincare labs in Korea. The company carried out a skincare survey with responses from 1,000 Kenyan women and claims the data obtained will help develop viral knowledge platforms and effective customized products.

Having spent its early days in FMCG, and particularly with small traders, ChapChapGo identified that the lack of simple and affordable tools tailored to the local context was a major challenge for Kenyan businesses to adopt e-commerce. ChapChapGo enables businesses to transact online in a few minutes with simple invoicing, automatic reconciliation, and faster M-PESA checkouts.

Image Credits: Antler East Africa

Anyi Health wants to improve access to financial support for primary healthcare seekers. In Nigeria and many other African countries, patients unable to pay their hospital bills are detained in the hospital or left untreated. Anyi Health aims to solve this through a mobile-based point-of-need credit facility, where patients can apply for credit directly at the hospital. The company just started its MVP pilot with three hospitals in Lagos, Nigeria and is looking to raise a $300k seed round based on pilot proof of concept

AIFluence is an AI-driven influencer marketing platform. Founded by advertising veterans, AIfluence enables brands in Africa to make a better decision when launching, managing and evaluating their influencer marketing campaigns. The company has signed customer contracts worth more than $600,000 with leading international and African companies, including Sony and Safaricom.

Digiduka positions itself as the digital service solution for Kenya’s cash economy. Its thesis is that payment solutions in Africa have two problems shutting out millions of potential users. One is high transaction fees, ranging as high as 9% per transaction, and the other, inconvenient payment modes. With the CEO and CTO having between themselves over 15 years of experience working with leading African telcos and as a technical lead for various startups, they aim to build the unified digital services solution of choice for both consumers and smaller retailers in Kenya.

Antler East Africa’s next cohort is in April, and Kebede says by bringing brilliant and experienced people together to create outstanding businesses in Africa, they hope that Antler “will help foster organizations that change the way people think, are sustainable and innovative as well as encourage other people to realize their own business goals.”

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Oct
25

Roundtable Recap: October 25 – Europe and Africa Rising - Sramana Mitra

AccountsIQ, a financial management software (FMS) startup founded by a team of chartered accountants (when accountants want to be entrepreneurs, you know startups are a thing), has raised €5.8 million in funding.

Backing the Dublin-based company, which targets mid-sized businesses that operate multi-entities, is Finch Capital, the fintech focussed VC that recently outed its third fund. AccountsIQ says the injection of capital will be used for accelerated growth and recruitment across sales and marketing, customer success and engineering to continue to enhance the product.

Launched in 2008 in Dublin, AccountsIQ’s cloud-based FMS aims to simplify how multi-entity businesses “capture, process and report” their financial results. These include businesses that are expanding via subsidiaries, branches, SPVs or a franchise model — and specifically those that trade across different locations, currencies and jurisdictions. The idea is to plug a gap in the market that AccountsIQ says exists between low end products like Xero, Quickbooks and Sage, and much higher end and more expensive products like Netsuite, Intacct and SAP.

“Managing the finances of multi-entity businesses was difficult prior to the cloud, requiring each entity to prepare accounts and send them in centrally for review and analysis,” explains AccountsIQ co-founder Tony Connolly. “Our Cloud solution means that all entities can access simultaneously and collaborate with head office or their accountants to process their own transactions, while providing full consolidation of results in the group base currency to allow easy central reporting and benchmarking of group wide results at the touch of a button”.

To enable this “one version of the truth,” AccountsIQ has been designed to be able to handle various reporting complexities, such as sub-groups, multiple currencies revaluations, and inter-company transactions.

The software also claims to employ “artificial intelligence” and an open API strategy to automatically synchronise bank accounts, generate electronic payments, auto-post electronic invoices and integrate front-end systems with easy approval workflow and expense capture via smartphones. Existing integrations include ​TransferMate Global Payments​, TINK, BrightPay, Kefron AP, ​Chaser, Concur​, ​Salesforce​ and ​ISAMs​.

To date, the AccountsIQ software is used by 4,000 companies across various industries, from non-profits to banks, with clients such as PwC, Linesight Global Construction Group, Asavie Technologies, GP Bullhound and Throgmorton. Broadly speaking, Connolly says the startup’s target customer is any business where multi-entities are involved, and that require each entity to be accounted for separately but managed centrally. With the acceleration of cross-border e-commerce and macro events like Brexit, that customer profile is evidently expanding.

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Oct
20

Carl Icahn comes out swinging against Dell's $21.7 billion VMware deal that could see it return to the stock market (DVMT)

As the Biden administration works to bring legislation to Congress to address the endemic problem of immigration reform in America, on the other side of the nation a small California startup called SESO Labor has raised $4.5 million to ensure that farms can have access to legal migrant labor.

SESO’s founder Mike Guirguis raised the round over the summer from investors including Founders Fund and NFX. Pete Flint, a founder of Trulia, joined the company’s board. The company has 12 farms it’s working with and is negotiating contracts with another 46. The company’s other co-founder, Jordan Taylor, was the first product hire at Farmer’s Business Network and previously of Dropbox.

Working within the existing regulatory framework that has existed since 1986, SESO has created a service that streamlines and manages the process of getting H-2A visas, which allow migrant agricultural workers to reside temporarily in the U.S. with legal protections.

At this point, SESO is automating the visa process, getting the paperwork in place for workers and smoothing the application process. The company charges about $1,000 per worker, but eventually as it begins offering more services to workers themselves, Guirguis envisions several robust lines of revenue. Eventually, the company would like to offer integrated services for both farm owners and farm workers, Guirguis said.

SESO is currently expecting to bring in 1,000 workers over the course of 2021 and the company is, as of now, pre-revenue. The largest industry player handling worker visas today currently brings in 6,000 workers per year, so the competition, for SESO, is market share, Guirguis said.

America’s complicated history of immigration and agricultural labor

The H-2A program was set up to allow agricultural employers who anticipate shortages of domestic workers to bring to the U.S. non-immigrant foreign workers to work on farms temporarily or seasonally. The workers are covered by U.S. wage laws, workers’ compensation and other standards, including access to healthcare under the Affordable Care Act.

Employers who use the visa program to hire workers are required to pay inbound and outbound transportation, provide free or rental housing and provide meals for workers (they’re allowed to deduct the costs from salaries).

H-2 visas were first created in 1952 as part of the Immigration and Nationality Act, which reinforced the national origins quota system that restricted immigration primarily to Northern Europe, but opened America’s borders to Asian immigrants for the first time since immigration laws were first codified in 1924. While immigration regulations were further opened in the sixties, the last major immigration reform package in 1986 served to restrict immigration and made it illegal for businesses to hire undocumented workers. It also created the H-2A visas as a way for farms to hire migrant workers without incurring the penalties associated with using illegal labor.

For some migrant workers, the H-2A visa represents a golden ticket, according to Guirguis, an honors graduate of Stanford who wrote his graduate thesis on labor policy.

“We are providing a staffing solution for farms and agribusiness and we want to be Gusto for agriculture and upsell farms on a comprehensive human resources solution,” says Guirguis of the company’s ultimate mission, referencing payroll provider Gusto.

As Guirguis notes, most workers in agriculture are undocumented. “These are people who have been taken advantage of [and] the H-2A is a visa to bring workers in legally. We’re able to help employers maintain workforce [and] we’re building software to help farmers maintain the farms.”

Opening borders even as they remain closed

Farms need the help, if the latest numbers on labor shortages are believable, but it’s not necessarily a lack of H-2A visas that’s to blame, according to an article in Reuters.

In fact, the number of H-2A visas granted for agriculture equipment operators rose to 10,798 from October through March, according to the Reuters report. That’s up 49% from a year ago, according to data from the U.S. Department of Labor cited by Reuters.

Instead of an inability to acquire the H-2A visa, it was an inability to travel to the U.S. that’s been causing problems. Tighter border controls, the persistent global pandemic and travel restrictions that were imposed to combat it have all played a role in keeping migrant workers in their home countries.

Still, Guirguis believes that with the right tools, more farms would be willing to use the H-2A visa, cutting down on illegal immigration and boosting the available labor pool for the tough farm jobs that American workers don’t seem to want.

Photo by Brent Stirton/Getty Images.

David Misener, the owner of an Oklahoma-based harvesting company called Green Acres Enterprises, is one employer who has struggled to find suitable replacements for the migrant workers he typically hires.

“They could not fathom doing it and making it work,” Misener told Reuters, speaking about the American workers he’d tried to hire.

“With H-2A, migrant workers make 10 times more than they would get paid at home,” said Guirguis. “They’re taking home the equivalent of $40 an hour. The H-2A is coveted.”

Guirguis thinks that with the right incentives and an easier onramp for farmers to manage the application and approval process, the number of employers that use H-2A visas could grow to be 30% to 50% of the farm workforce in the country. That means growing the number of potential jobs from 300,000 to 1.5 million for migrants who would be under many of the same legal protections that citizens enjoy while they’re working on the visa.

Protecting agricultural workers through better paperwork

Interest in the farm labor nexus and issues surrounding it came to the first-time founder through Guirguis’ experience helping his cousin start her own farm. Spending several weekends a month helping her grow the farm with her husband, Guirguis heard his stories about coming to the U.S. as an undocumented worker.

Employers using the program avoid the liability associated with being caught employing illegal labor, something that crackdowns under the Trump administration made more common.

Still, it’s hard to deny the program’s roots in the darker past of America’s immigration policy. And some immigration advocates argue that the H-2A system suffers from the same kinds of structural problems that plague the corollary H-1B visas for tech workers.

“The H-2A visa is a short-term temporary visa program that employers use to import workers into the agricultural fields … It’s part of a very antiquated immigration system that needs to change. The 11.5 million people who are here need to be given citizenship,” said Saket Soni, the founder of an organization called Resilience Force, which advocates for immigrant labor. “And then workers who come from other countries, if we need them, they have to be able to stay … H-2A workers don’t have a pathway to citizenship. Workers come to us afraid of blowing the whistle on labor issues. As much as the H-2A is a welcome gift for a worker it can also be abused.”

Soni said the precarity of a worker’s situation — and their dependence on a single employer for their ability to remain in the country legally — means they are less likely to speak up about problems at work, since there’s nowhere for them to go if they are fired.

“We are big proponents that if you need people’s labor you have to welcome them as human beings,” Soni said. “Where there’s a labor shortage as people come, they should be allowed to stay … H-2A is an example of an outdated immigration tool.”

Guirguis clearly disagrees and said a platform like SESO’s will ultimately create more conveniences and better services for the workers who come in on these visas.

“We’re trying to put more money in the hands of these workers at the end of the day,” he said. “We’re going to be setting up remittance and banking services. Everything we do should be mutually beneficial for the employer and the worker who is trying to get into this program and know that they’re not getting taken advantage of.”

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Oct
23

10 things in tech you need to know today

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

Natasha and Danny and Alex and Grace were all here to chat through the week’s biggest tech happenings. In very good Show News, Chris is back! He’s working on the next iteration of the show, something that you will be able to see starting Very Soon. Get hyped!

Today though, we had a delectable dish of dynamic doings, namely news items of the following persuasion:

Bitcoin broke the $50,000 barrier, something that we wanted to talk about. Especially in light of Coinbase’s $77 billion valuation. Natasha walked us through some growth metrics, and Alex was sad that he isn’t already retired. Danny remains a full-on crypto bull.And on the blockchain thing, Blockchain.com raised $120 million, proving that there are huge amounts of capital available for the guts-and-bolts tooling of the bitcoin world.Li Jin, who coined the term “passion economy,” has closed her debut $13 million fund for startups within the same category. She joined other investors in our latest survey on the creator economy’s changing tides. Off of $1 million in ARR, Circle has brought on $4 million in funding at a valuation north of $40 million.A16z invested in Stir, which helps creators manage and view their various income streams. The funding total was not disclosed, but is reportedly valuing the company, still in beta, at $100 million.TalkShopLive brought on new cash for live video shopping. Pipe17 closed an $8 million round that caught our eye. By building a service to help smaller e-commerce operations connect their tooling to one another, the company is betting on smaller e-commerce needing pipes to link up their various software services. This reminded us of Alloy, another neat company in e-commerce automation that also recently raised money.From there we riffed on the software market itself, its size and the potential for investors to loosen their rules of intra-portfolio competition.Public raised $220 million, OutSystems raised $150 million and Ally.io raised $50 million.Finally, a wave of edtech startups is over Zoom University and hopes to create much, much better. alternative.

And that’s our show! We are back early Monday morning for a packed week. So keep your podcast app warm, we’re coming for it.

Equity drops every Monday at 7:00 a.m. PST and Thursday afternoon as fast as we can get it out, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.

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Oct
30

The best driving conditions in America can be found in these 10 states

Photomath, the popular mobile app that helps you solve equations, has raised a $23 million Series B funding round led by Menlo Ventures. The app is a massive consumer success, and chances are you might already know about it if you have a teenager in your household.

The app lets you point your phone’s camera at a math problem. It recognizes what’s written and gives you a step-by-step explanation to solve the problem. You might think that it’s the perfect app for lazy students.

But there are many different use cases for Photomath. For instance, you can write an equation in your notebook and use Photomath to draw a graph.

Typing an equation on a keyboard is quite difficult. That’s why bridging the gap between the physical world and your smartphone is key to Photomath’s success. You can just grab a pen and write something down on a piece of paper. Essentially, it’s an AR calculator.

GSV Ventures, Learn Capital, Cherubic Ventures and Goodwater Capital are also participating in today’s funding round.

There’s an interesting story behind the app’s success. Photomath was originally designed as a demo app for another company called MicroBlink. At the time, the team was working on text recognition technology. It planned to sell its core technology to other companies that might find it useful.

In 2014, they pitched MicroBlink at TechCrunch Disrupt in London. And things changed drastically overnight as Photomath reached the first spot of the iOS App Store.

Photomath has now attracted more than 220 million downloads. As of this writing, it is still No. 59 in the U.S. App Store, one rank above Tinder. Other companies tried to build competitors, but it seems they didn’t manage to crush the tiny European startup.

The app seems even more relevant as many kids are spending more time studying at home. They can’t simply raise their hand to call on the teacher for some help.

Photomath is free and users can optionally pay for Photomath Plus, a premium version with more features, such as dynamic illustrations and animated tutorials.

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May
31

Virtru secures $37 million Series B led by Iconiq

Update: There’s an entire second session of this? My lord.

Update two: The hearing went on and on — it continues as I write to you! — but something did come out that was worth sharing. Namely that Congress got Robinhood CEO Vlad Tenev to report that his company generates at least 50% of its revenue from payment for order flow, or PFOF. Given that Robinhood’s PFOF incomes were around $220 million last quarter, we can place a max cap of the company’s Q4 2020 revenue at $440 million, though I would hazard a guess that it was more in the $3xx million range. 

Today the House Financial Services Committee dragged before them (virtually) for questioning the CEO of Reddit, a Cato wonk, the social media icon DeepFuckingValue, the CEO of Citadel Kenneth Griffin, a hedge fund bro who got whomped by DeepFuckingValue and the CEO of Robinhood Vlad Tenev, who got womped when individual investors joined DeepFuckingValue in his womping of the hedge fund and thus womped his capital requirements leading to general market chaos.

It was not very useful. Between a cascade of Zoom failures — mutings, incorrect unmutings, a green screen that was not actually in use and an actual gavel — members of Congress largely took five-minute slots to embarrass themselves, and not make material points.

The format was not conducive to real questioning, and most questions were both too long and either too precise and misguided in their direction, or too imprecise, even if they landed in the strike zone. Sitting here I am trying to recall a single thing that I learned. I suppose that Robinhood’s CEO was not sure on the details of his company’s arbitration agreement with users. And perhaps a little bit about how many of its users trade options. And that Reddit’s CEO has a nice suit.

Some members of Congress mocked the proceedings, calling them political theater. That earned a rebuke by Maxine Waters, chair of the House Financial Services Committee.

Some members of Congress nearly got around to asking something useful. But largely the method of asking questions was bilge, the responses canned and nothing much uncovered.

What would have worked? I suppose Congress could have brought in a few actual experts and a more limited number of guests, and then hammered them with questions about the ethical reality of payment for order flow, Robinhood’s app mechanics and how easily it offers access to exotic trading tools, and the like. That would have helped.

Instead, we got great stuff like this:

"I believe that investing is investing" – Steve Huffman

— alex (@alex) February 18, 2021

Which was not very helpful. That said, there were some good memes and jokes, so, let’s have some fun instead of being annoyed with our elected representatives:

"Did you buy GameStock because you were not aware of payment for order flow" is an incredible series of words to put one after the other

— Myles Udland (@MylesUdland) February 18, 2021

Really? An actual green screen? pic.twitter.com/goFNv3PtkP

— Lisa Fleisher (@lisafleisher) February 18, 2021

Just waiting for “why doesn’t Robinhood take responsibility for customers losses?” from these incompetent boomers

— litquidity (@litcapital) February 18, 2021

The rest of it was a waste of time. As I write this sentence to you, a member of Congress just asked how Robinhood got its name. Which is dumb, as the name is so obvious it nearly makes your head hurt with how earnest it is.

So there’s that. This was a waste. Real questions remain. They largely didn’t get asked, and certainly didn’t get answered.

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May
31

1Mby1M Virtual Accelerator Investor Forum: With Ashmeet Sidana of Engineering Capital (Part 6) - Sramana Mitra

Extra Crunch Live is off to a great start this year.

Lightspeed’s Gaurav Gupta and Grafana’s Raj Dutt taught us how to nail the narrative. Felicis Ventures’ Aydin Senkut and Guideline’s Kevin Busque showed us how valuable a simple pitch deck can be. And yesterday, Accel’s Steve Loughlin and Ironclad’s Jason Boehmig discussed the challenges of pricing and packaging your product. Next week, we’ll sit down with Bain Capital Ventures’ Matt Harris and Justworks’ Isaac Oats.

For those of you who followed the series last year, Extra Crunch Live is a brand new beast in 2021. We take a look at early-stage funding deals through the eyes of the founders and investors who made them happen, and those same tech leaders go through your pitch decks and give feedback and advice. Every single Wednesday at 12 p.m. PST/3 p.m. EST!

Extra Crunch Live is available for EC members only. It is but one of many reasons to join Extra Crunch, including but not limited to investor surveys, market maps and guest posts from proven thought leaders. Hit up this link to get started.

Today, I’m thrilled to announce the March slate for Extra Crunch Live. (Registration info for these events is at the bottom of the post.)

Sarah Kunst (Cleo Capital) + Julia Collins (Planet FWD)

March 10, 12 p.m. PST/3 p.m. EST

Julia Collins built a unicorn in the form of Zume, a robotics-focused pizza startup. Her latest venture, Planet FWD, has raised $2.7 million for climate-friendly food. Sarah Kunst, managing director of Cleo Capital, invested in the round, adding Planet FWD to a portfolio that includes mmhmm, Lunchclub, StyleSeat and more. Hear why they chose one another, what matters most in the relationship between an investor and a founder, and get their live feedback on audience-submitted pitch decks.

Emmalyn Shaw (Flourish Ventures) + Adam Roseman (Steady)

March 17, 12 p.m. PDT/3 p.m. EDT

Emmalyn Shaw co-manages a $500 million fintech fund at Flourish Capital, with portfolio companies that include Brigit, Chime, Clerkie, Cushion, EarnUp, Kin, Propel, and SeedFi. She also led the Series A deal for Steady, founded by Adam Roseman, back in 2018. Hear from Emmalyn and Adam about how they came together, what it takes to get funding and be successful in the fintech space, and get their live feedback on audience-submitted pitch decks.

Navin Chaddha (Mayfield) + Manish Chandra (Poshmark)

March 24, 12 p.m. PDT/3 p.m. EDT

Poshmark raised upward of $150 million before filing to go public in 2019. Today, it has a market cap north of $5 billion. Mayfield’s Navin Chaddha led the company’s Series A all the way back in 2011, back when Poshmark was called Gosh Posh. Hear Chaddha and Poshmark founder Manish Chandra discuss a decade of growth, and walk us through how they came together more than 10 years ago. Then the duo will take a look at pitch decks submitted by audience members.

As a reminder, Extra Crunch Live is available for EC members only. It is but one of the many reasons to join Extra Crunch, including but not limited to Investor Surveys, Market Maps and the EC Perks Program. Interested? Hit up this link to get started.

Register for the March episodes of Extra Crunch Live below.

See you there!

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May
30

Starling Bank raising another £80M, ends partnership with TransferWise

Kyle Poyar Contributor
Kyle Poyar is VP of Growth at OpenView.

Today we know of HubSpot — the maker of marketing, sales and service software products — as a preeminent public company with a market cap above $17 billion. But HubSpot wasn’t always on the IPO trajectory.

For its first five years in business, HubSpot offered three subscription packages ranging in price from $3,000 to $18,000 per year. The company struggled with poor churn and anemic expansion revenue. Net revenue retention was near 70%, a far cry from the 100%+ that most SaaS companies aim to achieve.

Something needed to change. So in 2011, they introduced usage-based pricing. As customers used the software to generate more leads, they would proportionally increase their spend with HubSpot.  This pricing change allowed HubSpot to share in the success of its customers.

In a usage-based model, expansion “just happens” as customers are successful.

By the time HubSpot went public in 2014, net revenue retention had jumped to nearly 100% — all without hurting the company’s ability to acquire new customers.

HubSpot isn’t an outlier. Public SaaS companies that have adopted usage-based pricing grow faster because they’re better at landing new customers, growing with them and keeping them as customers.

Image Credits: Kyle Poyar

Widen the top of the funnel

In a usage-based model, a company doesn’t get paid until after the customer has adopted the product. From the customer’s perspective, this means that there’s no risk to try before they buy. Products like Snowflake and Google Cloud Platform take this a step further and even offer $300+ in free usage credits for new developers to test drive their products.

Many of these free users won’t become profitable — and that’s okay. Like a VC firm, usage-based companies are making a portfolio of bets. Some of those will pay off spectacularly — and the company will directly share in that success.

Top-performing companies open up the top of the funnel by making it free to sign up for their products. They invest in a frictionless customer onboarding experience and high-quality support so that new users get hooked on the platform. As more new users become active, there’s a stronger foundation for future customer growth.

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May
30

FullContact Connect 2018 – June 6 – 8 in Denver

Doing home renovations yourself can be more cost-effective than hiring a contractor, but many people don’t know where to begin. Ian Janicki, the founder and CEO of DIY home renovation startup Outfit, has always wanted to make architecture and design more accessible to people.

“I realized I could leverage my knowledge of being handy to create a product that scaled,” he told TechCrunch.

For those who want to go through the Outfit process, the first step is submitting information about the space they’re looking to renovate, such as dimensions and photos, as well as the maximum amount they’re looking to spend. Outfit then provides information about the expected cost of the project, the handiness level required to complete the project and everything that would need to be done in order to complete the project.

“We make sure it’s transparent and that you understand the amount of time that might be required,” Janicki said.

Once someone decides they want to move forward, Outfit then sends all the necessary tools and materials to the customer. Through the app, Outfit offers a step-by-step guide for completing the project. In the event someone gets stuck, they can chat with Janicki or someone else from the Outfit team for support.

Image Credits: Outfit

Outfit has had a small set of pilot customers — some who have completed their projects and some whose projects are still underway.

“The millennial generation is now starting to purchase their homes and has been accelerated because of remote work and COVID,” Janicki said. “They’re the Ikea generation and can put together bookshelves and are really used to digital experiences and are now demanding this digital solution.”

So far, the projects have ranged in cost from $1,000 to $15,000, but it really depends on things like how invasive the project is, how big the space is and more, Janicki said. The rendered “after” photo below would probably cost about $9,000. In general, Outfit charges customers the cost of the actual materials (e.g. power drills, wrenches, cabinets, tiles, etc.) and then adds a percentage of the total on top as a surcharge to the customer.

Image Credits: Outfit

Down the road, Outfit envisions offering rentals of the tools themselves, but Janicki said he just wanted to streamline everything in the early days.

“Reverse logistics is complicated to we’re trying to take it one step at a time,” he said.

There are a number of home improvement startups out there, such as Eano, Renno and others, but Janicki said he’s not aware of any direct competitors. He said he recognizes that there are some people who are fully capable of buying all the necessary items themselves, watching a video on YouTube and then completing the project. Meanwhile, homeowners are also just as capable of hiring someone to do the project for them. But with Outfit, Janicki sees it as somewhere in between. He calls it “DIY plus.”

“In terms of being handy, it’s a rare trait that everyone appreciates,” Janicki said. “If we can elevate people in their handiness level, I’m going to be super happy. It’s that pride that you were actually able to accomplish that.”

Outfit is currently available nationwide. To date, the company has backing from Y Combinator, and previously raised about $700,000 from investors like GitHub CEO Nat Friedman, B Capital Group’s Crissy Costa, Gumroad CEO Sahil Lavingia and others.

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Apr
22

Conversational AI tools should unify calling, messaging, analytics and more

LinkedIn has launched LinkedIn Sales Insights, a data analytics platform that gives sales teams real-time insights into opportunities.Read More

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  51 Hits
Apr
22

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Apr
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Oct
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Nintendo is making Splatoon 3 for Nintendo Switch. The company confirmed the competitive ink shooter in its Nintendo Direct video showcase today. Splatoon 3 is launching in 2022. With the distant release date, Nintendo didn’t say much about what is new in the game. But it did show off some gameplay that takes place in a desert with giant skel…Read More

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Oct
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Oct
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Oct
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Apr
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Apr
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Apr
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Gousto, a UK meal-kit service, raises another $41M as business booms under lockdown

Dixa, the Danish customer support platform promising more personalised customer support, has acquired Melbourne-based “knowledge management” SaaS Elevio to bolster its product and technology offerings.

The deal is said to be worth around $15 million, in a combination of cash and Dixa shares. This sees Elevio’s own VC investors exit, and Elevio’s founders and employees incentivised as part of the Dixa family, according to Dixa co-founder and CEO, Mads Fosselius.

“We have looked at many partners within this space over the years and ultimately decided to partner with Elevio as they have what we believe is the best solution in the market,” he tells me. “Dixa and Elevio have worked together since 2019 on several customers and great brands through a strong and tight integration between the two platforms. Dixa has also used Elevio’s products internally and to support our own customers for self service, knowledge base and help center”.

Fosselius says that this “close partnership, strong integration, unique tech” and a growing number of mutual customers eventually led to a discussion late last year, and the two companies decided to go on a journey together to “disrupt the world of customer service”.

“The acquisition comes with many interesting opportunities but it has been driven by a product/tech focus and is highly product and platform strategic for us,” he explains. “We long ago acknowledged that they have the best knowledge product in the market. We could have built our own knowledge management system but with such a strong product already out there, built with a similar tech stack as ours and with a very aligned vision and culture fit to Dixa, we felt this was a no brainer”.

Founded in 2015 by Jacob Vous Petersen and Mads Fosselius, Dixa wants to end bad customer service with the help of technology that claims to be able to facilitate more personalised customer support. Originally dubbed a “customer friendship” platform, the Dixa cloud-based software works across multiple channels — including phone, chat, e-mail, Facebook Messenger, WhatsApp and SMS — and employs a smart routing system so the right support requests reach the right people within an organisation.

Broadly speaking, the platform competes with Zendesk, Freshdesk and Salesforce. However, there’s also overlap with Intercom in relation to live chat and messaging, and perhaps MessageBird with its attempted expansion to become an “Omnichannel Platform-as-a-Service” (OPaaS) to easily enable companies to communicate with customers on any channel of their choosing.

Meanwhile, Elevio is described as bridging the gap between customer support and knowledge management. The platform helps support agents more easily access the right answers when communicating with customers, and simultaneously enables end-users to get information and guidance to resolve common issues for themselves.

Machine learning is employed so that the correct support content is provided based on a user’s query or on-going discussion, whilst also alerting customer support teams when documents need updating. The Australian company also claims that creating user guides using Elevio doesn’t require any technical skills and says its “embeddable assistant” enables support content to be delivered in-product or injected into any area of a website “without involving developers”.

Adds the Dixa CEO : “Customer support agents still spend a lot of time helping customers with the same type of questions over and over again. Together with Elevio we are able to ensure that agents are given the opportunity to quickly replicate best practice answers, ensuring fast, standardised and correct answers for customers. Elevio is the world leader in applying machine learning to solve this problem”.

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