Jun
10

Atomic-backed Jumpcut uses data to advance diversity in film

Jumpcut founder Kartik Hosanagar is a professor at the Wharton School, but about 10 years ago, he spent his summer in an unlikely way: he wrote a screenplay. Set in India, his script garnered some interest from producers, but no one took the plunge to fund a film by a first-time Indian director.

Now, films featuring diverse casts are gaining traction — this year, Chloé Zhao became the first woman of color, and only the second woman ever, to win the Academy Award for Best Director. At the previous ceremony, Bong Joon-ho’s “Parasite” became the first non-English language film to win the Academy Award for Best Picture. Still, according to a recent report from McKinsey & Company, Hollywood leaves $10 billion on the table each year due to the industry’s lack of diversity.

“How do you make a bet on underrepresented voices or underrepresented stories?” asked Hosanagar. “While there’s awareness, there’s no action, because nobody knows how to do it. So that’s what got me into Jumpcut. It’s this rare company where 20 years of my work on data science and entrepreneurship meets with who I am outside of my work.”

At Wharton, Hosanagar is the Faculty Lead for the AI for Business program. He was a founder of Yodle, which was acquired by web.com for $340 million in 2016. But for this next venture, he wanted to tackle Hollywood’s homogeneity hands-on by using his experience with data science to de-risk media projects from underrepresented creators.

“The vision is to create a more inclusive era of global content creation,” he said to TechCrunch.

Hosanagar started working on Jumpcut in 2019, but today, the Atomic-backed company launches out of stealth as the first data science-driven studio working to elevate underrepresented voices in film. Already the studio has 12 TV and film projects in the works, with partners like 36-time Academy Award nominee Lawrence Bender (“Pulp Fiction,” “Good Will Hunting”), Emmy Award-winning producer Shelby Stone (“Bessie,” “The Chi”) and showrunner Scott Rosenbaum (“Chuck,” “The Shield”).

Jumpcut models itself after Y Combinator in its approach, pairing emerging talent with buyers and producers. First, Jumpcut uses an algorithm to scan hundreds of thousands of videos from platforms like YouTube, Reddit and Wattpad to find promising talent. The algorithm narrows down the extensive field to locate creators who are consistently finding new audiences and increasing their engagement. Then, the Jumpcut team — including advisors and veterans from Netflix, BuzzFeed, CBS, Sony and WarnerMedia — identifies who to connect with.

In one example of the algorithm’s success, Hosanagar pointed to Anna Hopkins, an actress who has appeared on shows like “The Expanse” and “Shadowhunters.” Though Hopkins has found some success in front of the camera, she also wants to write.

“We discovered some of her short films, and the algorithm identified it because people had strong emotional reactions in the comments, like, ‘heartwarming but in a positive way,’ or ‘give me a tissue,’ ” Hosanagar explained. Since Hopkins isn’t publicly known as a writer, she assumed that Jumpcut found her through a television network she had pitched a script to, but that wasn’t the case. “We said, ‘no, our algorithms found you.’ ”

Once a creator is identified by Jumpcut, they can A/B test their ideas with audiences of over 100,000 potential viewers, which helps the company prove to funders through data science that these ideas can sell.

“The idea there is that we don’t wait for creators to get discovered by the traditional Hollywood agencies, because that requires the creators to have access to the top agents, and that again brings you back to the old boys club,” Hosanagar said. “We’re automating a lot of that process and discovering these people who are creating great stories that are resonating with audiences, not waiting for some Hollywood agency to discover them.”

Once the creators have an idea that tests well with a wide audience, they’re invited to Jumpcut Collective, an incubator program that helps artists develop an idea from a concept to a pitch in six weeks. Then, Jumpcut helps match projects with producing partners and buyers.

So far, Jumpcut has hosted three incubator programs. Out of the 12 Jumpcut projects currently underway, Hosanagar says that nine or 10 of them came out of the incubator. One project, for example, is now being developed in partnership with Disney’s Asia Pacific Division.

Jumpcut isn’t disclosing the amount raised in this round of seed funding, but confirms that Atomic is the only investor in their seed round.

Hosanagar is joined on the project by Dilip Rajan, his former student and a former product manager at BuzzFeed, and Winnie Kemp, a former SVP of Originals at Super Deluxe and CBS. There, she developed and executive produced “Chambers,” the first show with a Native American lead, and “This Close,” the first show with deaf creators and cast. Most of their funding will go toward payroll, which includes engineers, data scientists and product managers on the product side of the company, as well as development executives on the creative side, who run the incubator.

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Jun
10

Final 2 days for early-bird savings to TC Early Stage 2021: Marketing & Fundraising

Listen up, all you budget-conscious early-stage founders. That sound you hear is the countdown clock for serious savings to TC Early Stage 2021: Marketing & Fundraising on July 8-9. You have just two days left to score early-bird savings and keep $100 in your wallet. Want loads of opportunity for less money? Beat the deadline and register here before Friday, June 11 at 11:59 p.m. (PT).

We’ve packed this two-day virtual event with more than a dozen (and counting) presentations by leading startup experts holding forth on a range of topics every startup founder needs to master — or at least understand enough to outsource wisely. We’re talking essentials like product-market fit, paid marketing strategies and, every founder’s favorite topic, fundraising.

But this isn’t a one-way situation. Nope, these are highly interactive sessions, and you’ll have plenty of time to get answers to your most pressing questions. Check the event agenda and start planning your schedule.

Here’s just a taste of the topics on tap:

How to Line Up Your Growth with Your Goals: Unlike giant brands, startups need to use their marketing spend wisely and efficiently. Sound Ventures’ Susan Su is a growth marketing expert and will share how to define growth based on your startup’s goals, and how to take a framework-based approach to growth, rather than relying on old playbooks that aren’t relevant.How to Navigate the Ever-Changing World of Early-Stage VC: With over 25 personal investments, AngelList Venture CEO Avlok Kohli knows a thing or two about early-stage fundraising. At Early Stage, Kohli will explain the landscape of the early-stage fundraising market and how to take advantage of the changes in the VC world over the past year.Nail the Narrative: Storytelling is a critical skill for startups. Coatue Management partner Caryn Marooney, formerly head of comms for Facebook, Instagram, WhatsApp and Oculus, will share how to frame the narrative for a startup depending on the audience and ensure that when you’re talking about your company, people are not only listening, but they want to learn more.

Pro Tip: Your pass includes access to video-on-demand. With VOD flexibility, you can watch sessions you missed and/or review sessions you attended to absorb the details on a cellular level.

Still on the fence? Here’s what Ashley Barrington, founder of MarketPearl, told us about her experience at Early Stage 2020:

I recommend going to Early Stage. The virtual aspect helps in terms of scheduling, it offers community-building through networking, and it gives early-stage founders a framework for navigating the startup ecosystem. This is the stage where founders need more support, especially if they haven’t done this before.

TC Early Stage 2021: Marketing & Fundraising takes place on July 8-9, but the clock is ticking. If you want to save $100, buy your pass before Friday, June 11 at 11:59 p.m. (PT). Find loads of opportunity for less money. It’s the TechCrunch way!

Is your company interested in sponsoring or exhibiting at Early Stage 2021 – Marketing & Fundraising? Contact our sponsorship sales team by filling out this form.

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Jun
10

Money Minx aims to build a ‘Personal Finance’ OS for the everyday investor

New regulations are making it easier to invest in alternative assets via crowdfunding, and the recent explosion of crypto and NFTs means that investors are more diversified than ever. 

Keeping up with such a variety of investments may prove difficult to those who want to handle managing their investment portfolios on their own. Money Minx, a new San Diego-based startup co-founded by husband and wife team Hussein and Jessica Yahfoufi, wants to help with that.

Put simply, Money Minx aims to build a “Personal Finance OS” for every household. The platform is designed to help people track all of their investments — yes, including crypto and NFTs — in one place, in whatever currency. The company claims that its AI can also go a step further, and help people spot opportunities in their portfolio as well as catch potential risks.

“We built Money Minx to help people cover all their bases, better understand their personal balance sheet and grow their net worth,” Hussein said. “No financial advisor needed.”

Money Minx also aims to provide people with easy-to-use tools to create dashboards and reports. In its “soft launch” phase, the startup has been growing rapidly — from $15 million in assets tracked at the end of March to $107 million by mid-May. Its user base is growing by 40% month over month.

As many founders do, Hussein says he and Jessica developed the platform to meet a need of their own.

“We built this because we needed it as ‘do it yourself investors,’ said Hussein, who previously started crowdfunding site appsplit and works as a CTO at a San Diego-based fintech company. “I didn’t want to hire a financial advisor and spend 1% of my portfolio every year for them to tell me what to do. So I started to do it on my own on a spreadsheet and then started building this tool last year.”

Hussein talked to other investors and realized that many were also managing their own finances and had also moved into investing outside the stock market.

Image Credits: Money Minx co-founders Jessica and Hussein Yahfoufi / Money Minx

“Everyday investors are preferring to invest more in crowdfunding sites and alternative assets than the traditional stock market,” he said. 

This shift has created a gap in the market for an easy way to track investments across multiple platforms, the Yahfoufis believe. 

Money Minx operates as a SaaS business and charges a monthly subscription fee across three different plans ranging from $10 to $30 a month. Looking ahead, Hussein is considering building out a white-glove service.

Although Money Minx has been approached by interested VCs, Hussein says the company prefers to stay bootstrapped — for now.

Indeed, VCs are pouring money into the space. Just last week, personal finance startup Truebill announced it had raised a $45 million Series D funding round led by Accel.

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Jun
10

TestBox launches with $2.7M seed to make it easier to test software before buying

When companies are considering buying a particular software service, they typically want to test it in their own environments, a process that can be surprisingly challenging. TestBox, a new startup, wants to change that by providing a fully working package with pre-populated data to give the team a way to test and collaborate on the product before making a buying decision.

Today the company announced it was making the product widely available; they also announced a $2.7 million seed round from SignalFire and Firstminute Capital along with several other investors and industry angels.

Company co-founder Sam Senior says he and his co-founder Peter Holland recognized that it was challenging for companies buying software to test it in a realistic way. “So TestBox is the very first time that companies are going to be able to test drive multiple pieces of enterprise software with an insanely easy-to-use live environment that’s uniquely configured to them with guided walk-throughs to make it really easy for them to get up to speed,” Senior explained.

He says that until now, even with free versions or free testing periods, it was hard to test and collaborate in that kind of environment with key stakeholders in the company. TestBox comes pre-populated with data generated by GPT-3 OpenAI to test how the software behaves and lets participants grade different features on a simple star rating system and provide comments as needed. All the feedback is recorded in a “notebook,” giving the company a central place to gather all the data.

What’s more, it puts the company buying the software more in control of the process instead of being driven by the vendor, which is typically the case. “Actually, now [the customer gets to] be the one who defines the experience, making them lead the process, while making it collaborative, and giving them more confidence [in their decision],” he said.

For now, the company plans to concentrate on customer support software and is working with Zendesk, HubSpot and Freshdesk, but has plans to expand and add partners over time. It has been talking with Salesforce about adding Service Cloud and hopes to have them in some form on the platform later this year. It also plans to expand into other verticals over time, like CRM, martech and IT help desks.

Senior is a former Bain consultant who worked with companies buying enterprise software, and saw the issues firsthand that they faced when it came to testing software before buying. He quit his job last summer, and began by talking to 70 customers, vendors and experts to get a real sense of what they were looking for in a solution.

He then teamed up with Holland and built the first version of the software before raising their seed money last October. The company began hiring in February and has eight employees at this point, but he wants to keep it pretty lean through the early stage of the company’s development.

Even at this early stage, the company is already taking a diverse approach to hiring. “Already when we have been working with recruiting firms, we’ve been saying that they need to split the pipeline as much as they can, and that’s been something we have spent a long, long time on. […] We spent actually six months with an open role on the front end because we are looking to build more diversity in our team as quickly as possible,” he said.

He reports that the company has a fairly equitable gender and ethnic split to this point, and holds monthly events to raise awareness internally about different groups, letting employees lead the way when it makes sense.

At least for now, he’s planning on running the company in a distributed manner, but acknowledges that as it gets bigger, he may have to look at having a centralized office as a home base.

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Jun
10

Apple outlined plans to increase consumer data privacy at WWDC

Apple asserted control over its App Store and doubled down on plans to keep consumer data out of other companies' hands at this year's WWDC.Read More

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Jun
09

DeepMind says reinforcement learning is ‘enough’ to reach general AI

Scientists at U.K.-based AI lab DeepMind argue true artificial intelligence will emerge from sticking to the principle of reward maximization.Read More

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Jun
09

Amazon launches AWS Proton in general availability

Amazon's AWS Proton service is designed to make it easier to manage and configure microservices without needing to code.Read More

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Jun
09

How the new Colorado Privacy Act will impact your business

Overview of the Colorado Privacy Act (CPA), including how it differs from CCPA, what's needed for compliance, and its impact on enterprises.Read More

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  48 Hits
Jun
09

What the Supreme Court’s decision on federal computer crime law means to you

After last week's decision, the CFAA has no business criminally enforcing the terms of service limitations set by private parties.Read More

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  52 Hits
Jun
09

Qlik unveils Data Literacy 2.0 to educate enterprise users

Qlik's Data Literacy 2.0 offers training to help enterprise employees become adept at analyzing and working with data.Read More

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Jun
09

Happy Birthday, HubSpot! 15 Lessons Over 15 Years

15 years ago today, on June 9, 2006, HubSpot was “officially” started. I say “officially”, because unofficially, I had been noodling on the idea of HubSpot for a couple of years with my co-founder, Brian Halligan while we were both classmates in grad school. I picked the June 9th date, because that’s the official date that I graduated and was no longer a student. (Brian graduated a year ahead of me, and I was still working on my thesis).

I don’t have a lot of photos from the early years, because as it turns out, neither one of us are big “photo people”. But, here’s one of us celebrating HubSpot’s 2nd birthday.

In the past 15 years we’ve had a bunch of fun and learned a ton (rhyming unintended, I’m proud of myself for resisting the temptation to try and turn that into a poem). The company has grown significantly from the two founders (and a house plant named Duo) to a globally distributed company with 4,000+ employees that’s publicly traded on the New York Stock Exchange with a market cap north of $20 billion.

I thought I’d share some of the lessons learned.

Note: These are in no particular order, because I wasn’t sure what sort key to use.

15 Somewhat Humble Lessons From 15 Years of HubSpot  

Build a diverse team early. Of the many professional mistakes I’ve made, not doing this is one of the biggest -- and the one I most regret. Candidly, back in those days, we didn’t think about diversity -- or for that matter, the broader topic of culture, all that much. But we should have. When you build a mostly homogeneous team, you incur culture debt. And much like financial debt and technology debt, you’ll have to pay it off at some point. But, whereas financial debt can be paid off by writing a check and technology debt can often be paid off by rewriting/refactoring parts of the system, culture debt is much more insidious. It’s really hard to pay it off completely. Try not to take on that culture debt. Your future self will thank you.

Instill a “customer first” mindset and implement mechanisms to foster it. We did pretty well on this. Solving For The Customer has been part of our culture from the early days. We have several mechanisms that help us walk the walk, and not just talk the talk. Examples include having a live customer interview at the start of every company-side, all-minds meeting. We do an NPS survey of our customers -- nothing remarkable there. What is remarkable is that we pipe the live responses directly into a dedicated Slack channel.  Over 1,000 people at HubSpot are subscribed to that channel (on a voluntary basis). We maintain a list of what we call “sharp edges”. Decisions that we made along the way that were not as customer-friendly as they should have been. Every year, we work to try and smoothen out those sharp edges.

Good intent is necessary, but not sufficient. Good execution is what pays the bills. We’ve had this GSD (Get Sh*t Done) attitude since Day 1. We’ve always been very execution oriented. Part of this was by necessity. We didn’t have the luxury of some brilliant invention or non-reproducible that would carry us. We had to push to get through.

Learning culture through osmosis stops working pretty quickly. The degree to which people learn by osmosis about the company culture down as the number of people go up. As early as possible, you need to write the culture and values down. It doesn’t have to be a deck with 128 slides, like HubSpot’s Culture Code (v1 of the deck was 16 slides) -- it can be a single sheet of paper (I hear those still exist), or even a napkin. But you need something. And that something has to be articulated in collaboration with the team. Otherwise, there’s high risk of it just turning out to be words.

Transparency is scary -- but spectacularly effective. It’s scary, because there’s always the risk that someone abuses the trust. But there are many upsides. First, the best people (you know, the ones you’re trying to recruit) value transparency, and the degree to which they value it has continued to go up. Second, transparency is efficient. It makes a lot of things easier when you don’t have to spend hours and hours debating who should have access to what information. It’s why at HubSpot, we share everything with everyone on the team -- and have since Day 1. If I could do it all over again, I’d do it in a heartbeat. Or should I say, HEARTbeat?  (Inside joke, sorry).

More companies die of co-founder conflict than any other cause. To minimize that risk, choose your co-founder(s) wisely. The most important thing is not their skillset -- it’s mutual respect, admiration and dare I say love. (Hi, Brian, love you dude!).  Apologies for the PDFA (public display of founder affection). That’s not usually my style, but I have my human moments every now and then.

Though it’s fun to create a new category, it’s not always necessary. Elon at Tesla didn’t create the electric vehicle category. Tobi at Shopify didn’t create the eCommerce category. HubSpot didn’t create the CRM category. But, one thing we all did do is helped a bunch of people that might not have been experiencing the benefits of that product category before, start to do so.

Note: In our early years, we did create the “inbound marketing” category -- and though that helped us with growth in the early years, it was hard, expensive and risky. I don’t know that I’d recommend it for everyone.  

Believe in your team. If you have an ambitious dream (we certainly did), keep pushing towards it and give your people the autonomy to try -- and sometimes fail -- in the pursuit of it. They will surprise you with spectacular feats of awesomeness.  One thing I’ve learned, is that Brian and I usually have our dreams and wishes come true -- but not always when we want them. Often, things take time. Great ideas can often take years to crystallize into reality. And, it’s not always obvious that an idea is great.

Push yourself and the team to take smart risks. This gets harder and harder to do as you scale, but it’s critical. The natural way of things is to get increasingly risk-averse, because the bigger you grow, the more you have to lose. That’s why, you have to push to make bold bets. They don’t’ have to be bet-the-company scale bets, but they need to have a chance at being spectacularly impactful.

Be rationally generous. Always try to add value before you try and extract it. It’s OK to leave some money on the table. You don’t have to always try and maximize how much of the consumer surplus you capture. It’s OK to let your customers and partners benefit. It’s OK to charge less than the value you create -- or even the value that you could reasonably negotiate.

Avoid cynics -- they are toxic, energy sucking vampires. I’m not talking about skeptics here -- I’m talking about cynics. Skeptics will often push and question and play the devil’s advocate role. But, they do it because they want to make things better. It’s important to have some of those people on the team. Cynics on the other hand are profoundly negative because they don’t believe people/organizations can have good-intent or motives. Deep down inside, they don’t believe the organization will improve or get better. You get bonus points for recruiting smart people that are energy accretive and lift everyone's mood. They'll make you happier too -- life is short.

Your long-term success will be defined by the “systems thinkers” on the team. These are the folks that like to analyze things. They are bothered by unnecessary complexity and love to simplify. They are always looking for leverage (i.e. finding clever ways for seemingly small things that can have disproportionate impact over the long-term). They are pattern-seekers and puzzle solvers. Note: When I say “systems”, I don’t mean just technical systems -- and I”m not just referring to engineers here. This applies across every department and every discipline. Find and foster the folks that think in frameworks and flywheels.

 Most things are learnable skills both at a company level and an individual level.  When someone has “natural talent” for something, all that usually means is that they’ll be able to acquire that skill with less time/energy expended. But, if you’re willing to do the work, you can get pretty good at whatever you choose to do. Even for the company -- acquiring a particular skill (or “building a muscle”, as we say in HubSpot) may be hard, but it’s usually not impossible. You just have to figure out which hard skills are worth acquiring. At HubSpot, we started being really good at marketing and sales. Then, we deliberately decided to invest in making an amazing product. In our early years, we were really good at inside sales. A decade later, we decided to invest in getting really good at freemium and product-led growth.

 Learn as much as you can, from anywhere you can, constantly and forever. Don’t be a know-it-all, be a learn-it-all.  (I got that from Brian, who got it from somewhere else).  It’s tempting to think of ourselves and our companies as these special little snowflakes -- and we are. But that doesn’t mean there is not wisdom and insight we can draw from others and pick the ones that feel like they might work in our business. At a tactical level, strongly encourage people read books. Long ago, we implemented a free books program whereby anyone at HubSpot can get any book that will help them learn and grow. Company picks up the tab. One of my favorite things that we’ve done.

 Align your vectors. Make sure that at every level of abstraction things are aligned. Make sure each person is aligned with others on their team. Make sure each team is aligned with the mission of the company. Make sure the company’s mission is aligned with the interests of the customer. The magic of increasing alignment is that you can get more progress while holding both the number of people -- and their average competency, constant. Let me say that one more time for dramatic effect: You can take the exact same people and keep their skills exactly the same, and get better outcomes, simply by improving the degree to which they are aligned and pointed in the same(ish) direction. I’ve written about this in more depth on this topic here. Aligning Vectors To Optimize Impact.

Phew!  Once I got into flow, the thoughts flowed more easily.  I’ve got more in my head, but will save that for another time. I believe in “release early, release often”.

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Jun
09

Dungeons & Dragons Online interview: Reflecting on 15 years of adventure

Dungeons & Dragons Online turned 15 this year, surviving amid publisher and developer changes thanks to its wide range of options and stories.Read More

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Jun
09

Overwatch is adding crossplay support for all platforms

Blizzard announced today that Overwatch is adding crossplay support, meaning more players will be able to enjoy the game together.Read More

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Jun
09

Pasqal’s ‘neutral atom’ tech promises 200 qubits of quantum processing power

Pasqal is leveraging technology that was developed at the Institut d'Optique in France and relies on a process called "neutral atoms."Read More

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Jun
09

EleutherAI claims new NLP model approaches GPT-3-level performance

EleutherAI, a group of data scientists working to open-source AI research, released a language model they claim achieves leading performance.Read More

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Jun
09

Startup CXO: A Field Guide to Scaling Up Your Company’s Critical Functions and Teams

Matt Blumberg has a new book out titled Startup CXO: A Field Guide to Scaling Up Your Company’s Critical Functions and Teams. It’s a follow-up to his previous book, Startup CEO: A Field Guide to Scaling Up Your Business.

I’ve been working with Matt since 2000. That year, we merged two companies: Return Path and Veripost. Matt was the co-founder/CEO of Return Path. Fred Wilson was his lead investor. I was the lead investor for Veripost. The two companies did the same thing and were the only two competitors in a nascent category called “email change of address” (Veripost’s original name was IECOA which stood for “Internet Email Change of Address”). They were bashing each other over the head in a non-existent market as the Internet bubble began collapsing.

The founders of each company talked and, in between efforts to decimate the other, agreed it might be worth merging to survive. This guy named Greg Sands at a firm called Sutter Hill had met with both and was interested in the category and encouraged them to merge, at which point he’d fund the combined company. Fred called me and said, “Let’s figure out a deal.” I said, “They are both worthless right now – how about 50/50?” Fred responded with, “I have more money invested in Return Path than you do in Veripost – how about 55/45.” I answered, “Deal.” So for the deal, investors on both sides converted to common, we split the combined company 55/45, Matt became CEO, and Greg led a new Series A financing into the combined company. Twenty years later, we sold the business, a $100 million, profitable company, to Validity. Matt was still CEO. Fred, Greg, and I were still on the board.

Last year, Matt started a new company called Bolster. He co-founded it in partnership with High Alpha (we are LPs) and SVB. Soon thereafter, USV (Fred’s firm – we are LPs) and Costanoa (Greg’s firm – we are LPs) invested. It’s off to a great start. If you are looking to expand your leadership team or board, are looking for a part-time executive role or board role, or are an investor looking for fractional executives to join your portfolio companies, you should become part of the Bolster network right now.

I’ve worked with Matt for over 20 years and have experienced many ups and downs. His hard-won lessons from Return Path show up in Startup CEO: A Field Guide to Scaling Up Your Business.

For lessons from Matt and his Return Path management team, many of who are now execs at Bolster, you want to read Startup CXO: A Field Guide to Scaling Up Your Company’s Critical Functions and Teams. When I saw the outline for Startup CXO, I grinned a wry smile. The book is 132 chapters broken into 11 sections. After the intro, the following sections are written by each exec.

Finance – Chief Financial Officer – Jack SinclairPeople – Chief People Officer – Cathy HawleyMarketing – Chief Marketing Officer – Nick Badgett and Holly EnnerkingSales – Chief Revenue Officer – Anita AbseyBusiness Development – Chief Business Development Officer – Ken TakahashiCustomers – Chief Customer Officer – George BilbreyProduct – Chief Technology Officer and Chief Product Officer – Shawn NussbaumPrivacy – Chief Privacy Officer – Dennis DaymanOperations – Chief Operating Officer – Jack Sinclair

There’s a final part on The Future of Fractional Executive Work with a chapter by a different leader for each area above. Matt’s writing shows up regularly throughout, including an ending chapter for each section titled CEO-to-CEO Advice.

Each chapter is two to five pages long. It’s tons of information, organized well, in tight, bite-sized chunks. For example, here are the chapters in Part Five: Sales by Anita Absey (p. 247-302)

Ch 54: In the Beginning: From Prospect to CustomerCh 55: Hiring the Right PeopleCh 56: Profile of Successful SalespeopleCh 57: Some Myth BustingCh 58: Compensating Sales Team MembersCh 59: PipelineCh 60: Scaling the Sales OrganizationCh 61: Scaling Your Team Through CultureCh 62: Scaling Sales Process and MethodologiesCh 63: Scaling the Operating SystemCh 64: Marketing AlignmentCh 65: Market Assessment and AlignmentCh 66: Expanding Distribution ChannelsCh 67: Geographic ExpansionCh 68: Pricing and PackagingCh 69: CEO-to-CEO Advice

The brilliance of this book is that everyone on your leadership team, including the CEO, should read it and then discuss it. Pick one section each week. At the end of a quarter, the entire team will have discussed all the functional roles, have a deeper understanding of expectations and responsibilities, use a common language for talking about what people are doing, and be able to adapt things to your own company. Also, if you aspire to be a CXO – you can figure out your career path by understanding the whole functioning of the relevant and adjacent departments.

I’m going to encourage every leadership team I work with to take this approach with Startup CXO: A Field Guide to Scaling Up Your Company’s Critical Functions and Teams.

Matt and team, thanks for writing this!

The post Startup CXO: A Field Guide to Scaling Up Your Company’s Critical Functions and Teams appeared first on Feld Thoughts.

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Jun
09

Pennylane raises $18.3 million for its accounting service

French startup Pennylane has raised a new $18.3 million funding round (€15 million). Interestingly, this is Sequoia Capital’s first investment in France after they announced ambitious expansion plans in Europe.

If you’re not familiar with Pennylane, the startup has been developing an accounting platform that improves accounting for both clients and their accountants. Focused on small and medium companies, the company has already attracted hundreds of clients as it says 1,000 executives are currently using Pennylane.

If you’re running a small company, chances are you’re using Microsoft Excel or another financial tool for your financial projections. You’re also sending all your invoices, payroll info and more to your accountant. Essentially, you’re doing the same thing twice.

Pennylane lets you connect your account with third-party services that already hold valuable information, such as Stripe, Payfit, Qonto, Zoho, Sellsy, etc. Data is then synchronized regularly so that you can check outstanding invoices, pay your suppliers and see where you’re standing when it comes to inbound and outbound payments.

On the other side of the equation, Pennylane works with 100 accounting firms that could handle accounting tasks for you. You can ask Pennylane to connect you with an accountant and they’ll leverage your Pennylane data to complete their work.

If you already have an accountant or you have your own in-house accounting team, you can also tell them to create an account on Pennylane and retrieve accounting data from the platform. Pennylane acts as the central repository where your financial data is always up to date.

“Pennylane is becoming the key financial management platform for SME’s in Europe,” Sequoia partner Luciana Lixandru said in a statement. “We are thrilled to partner with their exceptional team to ensure businesses of any size can have a single, up-to-date source for their financial data and improve how they collaborate with their accountants.”

Up next, the startup wants to build a ‘financial operating system’ for European small and medium enterprises. You can imagine a marketplace of services that clients can choose to use in addition to Pennylane’s core product.

Pennylane has been on a roll as the company raised an $18.4 million Series A round just a few months ago. Global Founders Capital and Partech led the Series A back in January.

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Jun
09

Terraformation gets $30M to fight climate change with rapid reforesting

Every startup is trying to fix something but Terraformation is tackling the only problem that must matter to all of us: Climate change.

This is why it’s in such a big huge hurry. Its mission — as a ‘forest tech’ startup — is to accelerate tree planting by applying a startup-y operational philosophy of scalability to the pressing task of rapidly, sustainably reforesting denuded landscapes — bringing back native trees species to revive former wastelands and shrinking our carbon emissions in the process.

Forests are natural carbon sinks. The problem is we just don’t have enough trees with roots in the ground to offset our emissions. So that at least means the mission is simple: Plant more trees, and plant more trees fast.

Terraformation’s goal is to restore three billion acres of global native forest ecosystems by scaling tree replanting projects in parallel, scaling the use of existing techniques, and working with all the partners it can. (For a little context, the U.S. contains some 2.27BN acres of total land area, per Wikipedia).

So far it says it’s planted “thousands” of trees — with live projects in North America, South America, Africa and Europe which it hopes will yield up to 20,000 replanted acres. It’s also in talks with partners about more projects that could clad hundreds of thousands of acres with carbon-consuming (and biodiversity-prompting) trees, if they come to full fruition.

That’s still a long way off the 3BN-acre-wooded moonshot, of course. But Terraformation claims it’s been able to achieve a forestry restoration work-rate that’s 5x the average already. And that’s definitely the kind of ‘gas stepping’ that climate change needs.

Its elevator pitch is also punchy: “Our mission is explicitly to solve climate change through mass reforestation,” says founder Yishan Wong — whose name may be familiar as the ex-Reddit CEO (and also a former early-stage engineer at PayPal/Facebook). So it’s getting trees in the ground and getting faster at getting trees in the ground.”

It’s not going it alone, either. It’s just announced a first closing of a $30 million Series A funding round, led by Sam & Max Altman at Apollo Projects, the brothers’ ‘moonshot’ fund; plus several high-profile institutional investors (whose names aren’t being disclosed); along with nearly 100 angel investors, including Sundeep Ahuja, Lachy Groom, Sahil Lavingia, Joe Lonsdale, Susan Wu, and OVN Cap.

“The [Series A] was a bit larger than we anticipated and the idea is to get us to the next stage of planting orders of magnitude more trees every year,” says Wong. “So it’ll be used both for supporting forestry projects directly, as well as for the development and deployment of forestry acceleration products and technology.”

“The very, very nice thing about mass reforestation or mass restoration as a solution to climate change is that it’s extremely parallelizable,” he adds. “You can plant any tree at the same time as your planting some other tree. This is the primary reason why this solution can potentially be implemented within the timetable that we have left. But in order to do so we have to start and drive an enormous, decentralized reforestation campaign across multiple continents and countries.”

The funding follows a $5M seed last year, as the young startup worked to hone its approach.

Terraformation is targeting the main barriers to successful reforesting: Through early research and pilots it says it’s identified three key bottlenecks to large-scale forest restoration — namely, land availability, freshwater, and seed. It then seeks to address each of these pinch-points to viable reforesting — identifying and fashioning modular, sharable solutions (tools, techniques, training etc) that can help shave off friction and build leafy, branching success.

These products include a seed bank unit it’s devised, housed in a standard shipping container and kitted out with all the equipment (plus solar off-grip capability, if required) to take care of on-site storage for the thousands of native seeds each projects needs to replant a whole forest.

It also offers a nursery kit which also ships in a shipping container — a flat-packed greenhouse that it says a couple of people can put together, and where thousands of seedlings can then be tended and irrigated in pots until they’re ready to plant out.

A third support it offers to the replanting projects it wants to work with is expertise in building solar-powered desalination rigs so young trees can be supplied with adequate water to survive in locations where poor land management may have made conditions for growth difficult and harsh.

It goes without saying that planted trees which fail because of poor processes won’t help cut carbon emissions. Badly managed replanting is at best wasteful — and may be closer to cynical greenwashing in some cases. (Poor quality projects can be a known problem where claims of corporate carbon offsetting are being made, for example.)

Terraformation is thus zeroing in on repeatable ways to scale and accelerate the successful planting and nurturing of trees, from seed to sapling and beyond, to accelerate sustainable reforesting.

Ultimately, it’s the only kind of tree planting that will really count in the fight against climate change.

Its first pilot restoration projects begun in Hawai’i in 2019 — where it’s been able to plant thousands of trees at a site called Pacific Flight, reviving a native tropical sandalwood forest that had been logged unsustainably. To enable the young trees to grow in land which had also become arid as a result of cattle grazing, the team built the world’s largest fully off-grid, solar-powered desalination system to supply sustainable freshwater to the baby forest.

“The arid environment, high winds, and degraded soils meant that if a team could restore a forest there, they could do it anywhere,” is the pitch on its website.

The Series A will go toward spinning up lots more such native species forest restoration projects — working via partnerships, with organizations such as Environmental Defenders in Uganda, and other groups in Ecuador, Haiti and Tanzania — as well as on more R&D (additional products are in the pipeline, we’re told); and on expanding headcount so its team has the legs to run faster.

Interestingly, for a startup with Silicon Valley engineering pedigree at its core, the team’s approach is intentionally light on technology — leaning only on vital tech (like solar and desalination), rather than experimental bells and whistles (drones, robotics etc) to ensure the processes it’s packaging up for massive replanting parallelism remain as simple, accessible and reliable as possible. So they are able to scale all over the globe.

It’s clear that sci-fi robotic gadgetry isn’t the answer here. It’s sweating toil plus tried and tested horticulture processes, done systematically and repeatedly, in mass parallelism all over the world that’s required, argues Wong, whose years in tech have given him a healthy scepticism on the issue of over-engineering. (“The biggest lesson I learned was, you want to solve a big problem? You want to use as little technology as possible… Technology’s always breaking, it’s always got flaws. The biggest problem with technology is technology.”)

“I would say that the key contribution that ‘tech’ — if you think of a monolith or a culture or whatever — will make to climate change, is not in fact some new invention or some gadget or some sort of special magical technology… I think it really is the practice of scalability,” he goes on. “Which is an organizational end. A management way of thinking. Because that is actually something that has been carefully and painfully developed… over the past 20 years in Silicon Valley. How to take small working solutions, how to solve very big problems, how to scale them. And it isn’t a very glamorous thing — which is why I think it’s one of the more pure disciplines.

“It just has been less corrupt… Scalability is just people thinking hard and grinding it out to address really hard big problems. And I think that practice and all the little tips and rules that we have to doing that is the real contribution that tech is going to make — with one of those principles being use as little tech as you can.”

Terraformation is building software tools too — such as a mobile app to help with cataloguing and monitoring seeds. But the really critical technologies involved, solar and desalination, are very much at the ‘tried and tested’ end of the tech scale (“very, very reliable and refined”.).

Wong points out that a key development for solar and desalination is related to the unit economics — with falling costs allowing for scalability and thus speed.

Asked whether Terraformation is a business in the typical startup sense, Wong says it’s been set up in a familiar way — as a Delaware C Corp — but purely because he says that’s just the quickest way to be able to operate. Doing stuff as a non-profit would be way too slow, he says, describing it thusly as a “non non-profit” (rather than a business with a for-profit mission).

Aka: “It’s a corporate with investors but primarily the aim is to solve climate change.”

Startup investors are of course often betting their money on the chance of a quick and meaty return. But not here, confirms Wong. “When we raised funding all of our investors invested primarily because they wanted to see climate change solved,” he tells TechCrunch. “To many of them this was the first time that a plausible, full-scale solution to solving climate change had been presented.

“It’s still very, very hard. It’s very, very large. It’s really daunting. But it’s the first time someone has mapped out a path that could actually get us there. And so all of our investors invested because they want to see that happen.”

So how will a ‘non non-profit’ startup (even with $30M just banked) get its hands on enough land to plant enough trees? A variety of ways, per Wong. (Perhaps even, in some instances, landowners could end up paying it to turn their dirt into beautiful woodland.)

“The short answer is anywhere we can!” he adds. “The solution is structured to give us maximum flexibility, given that we can use a large variety of land. We don’t want to count on any particular land owning entity — and I use that very broad term to mean like people, communities, governments, municipalities — we don’t want to rely on any one particular land-owning entity wanting to work with us or allowing us to reforest the land, because you can’t guarantee that.”

He also notes that Terraformation’s plan to fix climate change is based on “worse case scenarios” — where “no one who owns any land that gets enough natural rainfall for forest restoration will allow it to reforest it”. “We use the least valuable land — basically desertified, degraded land,” he adds. “Is there enough of that? And it turns out there is.”

Even though personal financial upside clearly isn’t front of mind for Terraformation’s investors, Wong still believes there’s plenty of ‘value’ to be unlocked as a byproduct of spreading leafy-green goodness all over the planet vs funding more extractive exploitation.

“It turns out that solving climate change is actually a huge value creating act,” he argues. “My experience in Silicon Valley is if you have people who believe in you and believe in the thing that you’re creating is ultimately value-creating then it’s actually also wealth creating. If you do something that is fundamentally very, very valuable and you’re right next to it, you will be able to monetize it in some way. You will capture some of that value for your shareholders. So it’s a bet that if you really can solve climate change, that’s super valuable, both for the world and to the entity that’s [investing].”

Of course climate change is more than just a problem; it’s an existential threat to all life on Earth — one which affect humans and every other living creature and thing on the planet.

Given such terminal stakes, reversing climate change should be the highest global priority. Instead, humans have procrastinated — putting dealing with rises in atmospheric CO2 on the back-burner and worse (cutting down existing forests like the Amazon Rainforest, for one).

Set against that backdrop, Terraformation’s answer to humanity’s greatest crisis looks compellingly simple. Its bet is that climate change can be fixed by scaling the most proven technology possible (trees) to capture carbon emissions. Who can argue with that? 

But it does also seem clear that reforesting will need to go hand in hand with a mainstreaming of conservation, as a prevailing societal attitude, if the mission is to be pulled off — otherwise all these beautiful baby trees could just meet the same sad fate as all the Earth’s already lost forests.

Nonetheless, conservation is something Wong’s team is deliberately not focusing on.

Not because they don’t care. Rather their hope is that by building the baby forests, the protective partners will come — to watch over and get value from the trees as they grow. 

“I don’t want to make it seem like we don’t care about [forestry conservation] but one of the things that I try to do is figure out where people are already doing work and things are already moving in the right direction — and then go work on the thing that other people are not working on,” he says when we ask about this. “When I talk to people in the forestry world many, many people are working on avoiding deforestation, helping solve the broader socioeconomic issues that result in deforestation. And so I feel like there is momentum moving in that direction — so we have to work on this other issue that other people aren’t working on.”

Wong also argues that forests are naturally more valuable than the denuded waste/scrub ground they’re replanting — implying that pure economic interest should help these baby forests survive and thrive far into the future.

However the history of humanity shows that unequal wealth distribution can wreak all sorts of havoc on a resource-rich natural environment. And people who live in poverty may well be disproportionately more likely to like in a rural location, on or near land that Terraformation hopes to target for replanting. So if these forests can’t provide — in crude terms — ‘value’ for their local communities the risk is the same cycle of short-term economic harm will rip all this hard work (and hope) out of the ground once again.

Wealth inequality lies at the core of much of humanity’s counterproductive destruction of the environment. So, seen from that angle, reforesting the planet may require just as much effort toward tackling — root and branch — the wider socioeconomic fault-lines of our world, as it will washing, sorting and storing seed, watering seedlings and nurturing and planting saplings.

And that further dials up an already massive climate challenge. But, again, Wong is quietly hopeful.

“People aren’t cutting down trees because they’re evil, they’re cutting down trees because they need to make a living. So we have to provide them with ways to make a living that is more valuable than cutting down the trees. I think that recognition is moving in the correct direction — so I’m hopeful there,” he says.

Asked what keeps him up at night, he also has a straightforward answer to hand — one we’ve heard many times already from a new generation of climate campaigners, like Greta Thunberg, whose futures will be irrevocably stamped by the effects of climate change: Humanity simply isn’t moving fast enough.

“In order to do this we have to make order of magnitude improvements in both speed and scale — which is technically a thing that we know how to do but is among the most daunting things that you ever try to undertake. So… are we moving fast enough? Are we doing enough? Because time is running out,” warns Wong.

“The timeframe that we have left is very small when compared to the planetary scale of the problem. And so I think the only way that we’re going to get there is with proven solutions, moving, growing at exponential speed.”

“I am [hopeful],” he adds. “I’m a big fan of humans working together. People can really do it. I’m very I guess what you’d call pro-human. We have a lot of flaws, we fight amongst ourselves a lot, but I really think that when people work together they can really do amazing, amazing things… Trees gave us life and so now it’s our time to repay that debt.”

 

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Jun
09

A men’s brand, Faculty, launches with nail polish — and seed funding from Estee Lauder

“It’s not a nail polish company.” It’s almost the first thing out of the mouth of Fenton Jagdeo of Faculty, the startup he cofounded in 2019 with Umar ElBably. Though their Toronto-based company currently sells just three shades of nail polish along with some nail stickers — that’s it —  the products are a wedge to something much larger, says Jagdeo.

There will be merchandise, according to the former business management consultant. There will be men’s foundation, and eye shadow, and very possibly hair dye, all of which is focused around a “new wave of masculinity,” Jagdeo explains.

These items aren’t likely to appear in the aisles of Sephora or CVS, suggests Jagdeo. Faculty is instead “going to be very selective about who we have conversations with. We’re imagining the the Essences of the world, the StockXs, the Kiths. That’s where our clientele is.”

More, he says that in the same way that the prominent culture publication Hypebeast created a “desire for new product and newness,” Faculty has “mastered the drop model,” meaning that Faculty has and will continue to advertise a limited supply of a product before invariably selling out of that item. (Those three nail polish shades and the sticker set? They’re long gone.)

If you find yourself wondering if Faculty aims to become a streetwear company or a cosmetics company, Jagdeo is succeeding in his mission. As he explains it, “essentially, our goal is to blur” that dividing line.

It’s utterly implausible and yet strangely alluring, which likely explains why the cosmetics giant Estee Lauder just led a $3 million seed round in the five-person outfit, joined by RareBreed Ventures, Maple VC, Debut Capital, Creative Connectors, AUFI, 10K Ventures, actress Maisie Williams and recording artist Iann Dior.

After all, there is little to separate one cosmetics brand from another, aside from storytelling and the ability to build up a loyal following. (See, for example, Glossier and its mega-valuation.)

Even Jagdeo readily admits that Faculty’s nail polish is “not, from a purely chemical perspective, different” from what’s widely available in the market already. Yet he sells the vision easily while insisting that ElBably, who attended the same business school as Jagdeo, is the better storyteller of the two.

Certainly, their pitch — that men need more ways through unconventional men’s products to express themselves — is a smart one. Consider that the men’s personal care market alone is expected to balloon to $75 billion over the next six years, according to Grand View Research, and there are few established grooming brands for millennials, even while plenty of outfits are trying. (SNL even came up with a skit recently about a new men’s cosmetics brand called “Man Stain,” which pokes fun at men who want to wear make-up but feel insecure about it.)

Meanwhile, streetwear market is even bigger — it was in the range of $185 billion in sales in 2019, according to PwC analysis — and new brands are breaking through all the time, including brands that, like Faculty, are the express opposite of hyper masculine.

Naturally, Estee Lauder’s imprimatur could make a difference here, too, particularly given that the cosmetics giant isn’t known to actively invest in startups or lead seed rounds. Indeed, while Jagdeo says the funding will help Faculty with its marketing, R&D, and operational expenses, he notes the real advantage to working with Estee Lauder is the mentorship it can provide, as well as its ability to open doors for Faculty.

Says Jagdeo, “It’s a lot easier for us to say, ‘Hey, you know, we’re working with Estee Lauder and Estee Lauder is one of our investors,’ versus, ‘We’re two guys with a dream.'”

 

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Jun
09

Wagely, an Indonesian earned wage access and financial services platform, raises $5.6M

Wagely founders (from l to r): Tobias Fischer, Sasanadi Ruka and Kevin Hausburg

Earned wage access (EWA) platforms that allow workers to withdraw their earnings on demand instead of waiting until payday are proliferating around the world. Today, Indonesian EWA startup wagely announced it has raised $5.6 million in strategic funding, led by Integra Partners (formerly known as Dymon Asia Ventures). Other investors included the Asian Development Bank (ADB) Ventures, PT Triputra Investindo Arya, Global Founders Capital, Trihill Capital, 1982 Ventures and Willy Swandi Dharma, former president director of insurance company PT Asuransi Adira Dinamika.

Founded in 2020 by alumni of two of Southeast Asia’s largest tech companies, wagely expects to reach more than 250,000 users this year. Chief executive officer Tobias Fischer was former regional lending program manager at Grab Financial Services Asia, while chief technology officer Sasanadi Rukua served as vice president of engineering at Tokopedia.

Fischer told TechCrunch that after working at financial services companies in Southeast Asia, he and Ruka saw that “managing cashflow is the most pressing everyday issue for lower- and middle-income Indonesians.”

While the pandemic exacerbated financial hardships, Fischer said more than 75% of Indonesians already struggled to cover unexpected expenses between paychecks. Many borrow from family or friends, but if that option is unavailable, they may turn to payday lenders who can charge more than 360% annualized percentage rates, or pay overdraft and late fees to their banks until their next paycheck.

“This is the start of a vicious and costly debt cycle that has a long-lasting negative impact on individual financial well-being, which in turn impacts businesses with higher turnover, lower productivity and more employee loans,” Fischer said.

On average, more than 50% of employees at wagely’s enterprise clients use it multiple times throughout the month to track their daily earnings and access their earned wages. The company’s ultimate goal is “to build a holistic financial wellness platform for lower- and middle-income workers” that includes other financial services, including savings, insurance and smart spending products, Fischer said.

More companies around the world are allowing workers to pick when they get paid. Some notable EWA platforms include Gusto Cashout; DailyPay, which recently hit unicorn status; Wagestream; Minu and Even. In Indonesia, wagely’s competitors include GajiGesa and Gajiku.

Fischer said wagely “created the earned wage access category in Indonesia,” and is the market leader with more than 50 large companies, including state-owned enterprises and multi-national conglomerates. Its new funding will be used to increase wagely’s sales team in order to close more enterprise deals. Wagely’s current customers include PT Bentoel Internasional Investama Tbk (British American Tobacco); PT Supra Boga Lestari Tbk (Ranch Market); beauty and wellness company PT Mustika Ratu Tbk; and renewable energy group PT Kencana Energi Lestari Tbk.

In a press statement, Wilson Maknawi, president director at PT Kencana Energi Lestari TBK, said, “wagely offers our employees financial stability in times of uncertainty. It is incredibly important and a crucial step for the long-term resilience of our business. With no changes to our payroll process, wagely’s solution has proven to increase our business savings and helped our employees to avoid predatory loans while providing savings and budget tools that increase their financial literacy.”

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