Jun
05

488th Roundtable Recording on June 4, 2020: With Pamela York, Atasi Ventures - Sramana Mitra

In case you missed it, you can listen here: 488th 1Mby1M Roundtable June 4, 2020: With Pamela York, Atasi Ventures

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Original author: Maureen Kelly

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Jun
05

15 things founders should know before accepting funding from a corporate VC

Scott Orn Contributor
Scott runs operations at Kruze Consulting, a fast-growing startup CFO consulting firm. Kruze is based in San Francisco with clients in the Bay Area, Los Angeles and New York.
Bill Growney Contributor
Bill Growney, a partner in Goodwin’s Technology & Life Sciences group, focuses his practice on advising technology and other startup companies through their full corporate life-cycle.

More than $50 billion of corporate venture capital (CVC) was deployed in 2018 and new data indicates that nearly half of all venture rounds will include a corporate investor. The CVC trend is heating up and the need for founders and startup executives to stay informed is higher than ever.

We’ve covered the basics in this series, including how to approach CVCs and what to know before the investment, what to look out for when negotiating, and getting the most out of a CVC partnership after the investment.

A great CVC investor can be the best of both worlds — a strong corporate champion who provides insights and connections to help your startup succeed and a committed financial partner who provides the capital you need to grow. But CVCs aren’t just VCs with different business cards. Finding the right CVC requires the right approach and strategy, and getting the right CVC on your cap table can bring unique and lasting value to your startup.

To wind down this series, here’s a list of the top 15 things every founder should know before signing a term sheet with a CVC.

CVCs come in three major types. The type of CVC you’re dealing with will determine a great deal about the potential for the partnership, the professionalism of the investing process, the resources you’ll have available once the investment is made and much more.

Image credits: Orn/Growney

Different CVCs have different investing strategies. Some CVCs view deals through the lens of, “I’m looking for a great team, huge market and a chance to bring in funding and connections to make a business as strong as it can be.” Others see their investment like, “I’m looking for a solution/product/platform that I can bring into my company or use to expose my company to a brand new marketplace or technology.” As a founder, it’s best to know which type you’re dealing with before the pitch.CVCs can offer benefits beyond capital. Choose one who can offer money AND … . As Rick Prostko, Managing Partner at Comcast Ventures, says, “Look for someone who will understand your business, meet with you and decide that there’s something beyond just capital that will form the basis for that relationship. In today’s venture market, founders want money AND value. Seek out a CVC who has valuable experience to provide, and look for someone who’s been an operator in this segment previously or who has valuable insight and experience to offer.”Some CVCs are a better fit for your company than others. As with all investors, some will forge a better relationship with you and the exec team. But with strategic CVCs, the need for a strong bond at the outset is even higher since you’ll be embarking on a strategic partnership with the CVC’s parent company.Do your own diligence, just as they do theirs. The best way to find out what type of CVC you’re dealing with, what to expect in the investment process and whether your chances are strong for a post-investment partnership is to ask around. Talk to other companies within the CVC’s portfolio, or founders who’ve pitched the CVC in the past. Ask for their feedback on how it went and what to expect. You’ll never regret having more information.Come into the relationship with ideas for how the CVC can help your company. Do you see possibilities for product feedback loops? New distribution channels? A potential future acquisition by the parent company? Don’t be afraid to share your vision with the CVC during the pitch, and discuss how and whether that vision can be realized.Expect deeper product and technical diligence. CVCs have technical, product and market experts at their disposal, so their level of product diligence is typically more rigorous than traditional VCs. Be prepared for some grilling by subject matter experts. On the flip side, this diligence process provides you with exposure to potential customers and partners inside the corporation, so use this time to your advantage.Stay aware of what information you reveal during the diligence process. Remember that you’re sharing confidential info with a large company. If you stay thoughtful and strategic with what you share, and determine whether the CVC is truly interested in doing a deal before you offer financial, technical and competitive information, you’ll usually be fine. Don’t rely exclusively on NDAs — they only provide so much protection.Ask questions during negotiations. Do they want to lead your round? Do they want a board seat? Do they understand your future fundraising strategy? Will they be using experienced lawyers to do the deal? These are all important touch points during the negotiation process, and the answers will be revealing.. Set clear rules on ownership percentages ahead of time. As a rule, don’t let any single CVC own more than 19.9% of your company. If they own more than that, the CVC’s parent company will likely need to consolidate your financials into their annual and quarterly reports. If that happens, you’ll be required to get an expensive audit done, meet strict reporting deadlines and invest in financial planning and projections, all of which can hinder your bottom line.. Be sure to get the CVC to waive audit requirements. We mean it! Do everything you can to avoid any audit obligations. Audits are notoriously time consuming and expensive — we’ve seen audits by Big Four firms cost startups over $30,000. While many investor rights agreements “require” an audit, traditional VCs usually waive this requirement to avoid wasting a founder’s time and money. You want a CVC investor to do the same.. Never give a CVC a Right of First Refusal. Under no circumstances should you let a CVC get a ROFR, which would give the parent corporation the right to “beat” any other potential acquirer if and when you try to sell your startup. In practice, a ROFR means that no smart competitor to the parent organization will try to purchase your company because they know the CVC’s corporate arm will be able to swoop in and steal the deal.. Be aware that you run a risk of regime change. Staff turnover is a reality that CVCs face as much as any other large corporate operation. Ask the CVC leading your investment: Who will support the company if he or she leaves? What will happen to the CVC if the person leading the venture arm departs? Will the company still do their pro rata if personnel changes happen? What about commercial relationships that come from the relationship? You have a right to know as much as possible at the beginning, though the future can always change.. You may have to tackle regulatory issues. If the CVC’s parent company is in a certain area, it may be subject to government regulation. For instance, banks must adhere to a variety of regulations very different from those that apply to large tech companies. Navigating these laws can be costly and time consuming, so be aware of what you’re getting into before you sign the dotted line and discuss how you and the CVC can avoid hitting any regulatory roadblocks.. Know that you may face challenges in the relationship over time. While startups thrive on renouncing hierarchy, chasing innovation and pivoting on a dime, larger corporations operate at a different pace and under a different paradigm. Change comes slower, decisions often involve more parties and some business units have different priorities than others. As a founder, you’ll be in charge of navigating the CVC’s parent company in order to maximize the partnership value.

There are plenty of benefits to taking CVC investments. Many CVC investments lead to acquisitions, and even if the discussions with a CVC fall apart, your meeting can result in valuable introductions that yield new business relationships. The rising CVC trend offers a brave new world for entrepreneurs. If you know the ropes of CVC investing, you could be in for a partnership that benefits you both.

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Jun
05

How to get the most from your corporate VC after you get the check

Scott Orn Contributor
Scott runs operations at Kruze Consulting, a fast-growing startup CFO consulting firm. Kruze is based in San Francisco with clients in the Bay Area, Los Angeles and New York.
Bill Growney Contributor
Bill Growney, a partner in Goodwin’s Technology & Life Sciences group, focuses his practice on advising technology and other startup companies through their full corporate life-cycle.

Raising capital from a corporate VC can bring many benefits beyond just money. Strategic CVCs, who measure ROI based on the strength of the strategic partnership with their portfolio companies as well as the financial return, will typically seek to maximize their relationships with startups for a long time after the investment is made.

Specifically, a CVC investor can offer the following to an entrepreneur:

Resources and product feedback. CVC parent companies often have deep institutional expertise and teams of subject-matter experts who can advise startups on product development and guide them through issues.

Partnerships. CVCs can leverage their supply chain and operations to build new partnerships that otherwise may have taken months or years for startups to create.

Distribution. Strategic CVCs can become a distribution channel for a startup, connect that startup with their suppliers, or even use the startup to become a channel for the parent company.

Branding halo. If a large company is willing to invest in your startup, it’s a strong signal that your product is good and that your business has a bright future.

Acquisition. Many CVCs invest in startups that they may want to acquire down the line. A CVC may also endorse an exit-seeking portfolio company to their partner companies or suppliers.

Granted, seeing results from these benefits takes time, and even the best of intentions during a capital raise process may not always yield an optimal strategic relationship.

Here’s a list of factors to keep in mind for founders who want the best chances of a productive and successful relationship with their CVC.

Know which type of CVC you’re dealing with from the outset. In our previous posts, we outlined the three types of CVCs — experienced institutional investors, industry-specific strategics, and beginner or “tourist” CVCs. As we’ve discussed, be sure to spend time interviewing and building relationships with CVCs to determine which type they are, what kinds of benefits and resources they can offer and what their history looks like in terms of successfully partnering with startups over time. When in doubt, ask other founders who have done deals with them!

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Jun
05

The IPO window is open (again)

Hello and welcome back to our regular morning look at private companies, public markets and the gray space in between.

ZoomInfo went public yesterday. After pricing its IPO $1 ahead of its proposed range at $21 per share, the company closed its first day’s trading worth $34.00, up 61.9%, according to Yahoo Finance. Then the company gained another 5.2% in after-hours trading.

Whether you feel that this SaaS player was worth the revenue multiple its original, $8 billion valuation dictated — let alone that same multiple times 1.6x — the message from the offering was clear: the IPO window is open.

This is not news to a few companies looking to take advantage of today’s strong equity prices.

Used-car marketplace Vroom is looking to get its shares public before its Q2 numbers come out, despite a history of slim gross profit generation. The company hopes to go public for as much as $1.9 billion, a modest uptick from its final private valuations.

We’ll get another dose of data when Vroom does price — how much investors are willing to pay for slim-margin revenue will tell us a bit more than what we learned from ZoomInfo, which has far superior gross margins. Investors have already signaled that they are content to value high-margin software-ish revenues richly. Vroom is more of a question, but if it does price strongly we’ll know public investors are looking for any piece of growth they can find.

This brings us to the latest news: Amwell has confidentially filed to go public. Formerly known as American Well, CNBC reports that the venture-backed telehealth company has dramatically expanded its customer base:

Telemedicine has seen an uptick in recent months, as people in need of health services turned to phone calls and video chats so they could avoid exposure to COVID-19. The company told CNBC last month that it’s seen a 1,000% increase in visits due to coronavirus, and closer to 3,000% to 4,000% in some places.

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Jun
05

Has Zoom Stock Peaked? - Sramana Mitra

The current Covid crisis has been particularly beneficial for online video conferencing player Zoom Video Communications (Nasdaq: ZM). With organizations, both small and big, and educational...

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Original author: MitraSramana

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Jun
05

PhotoRoom automagically removes background from your photo

Meet PhotoRoom, a French startup that has been working on a utility photography mobile app. The concept is extremely simple, which is probably the reason why it has attracted a ton of downloads over the past few months.

After selecting a photo, PhotoRoom removes the background from that photo and lets you select another background. When you’re done tweaking your photo, you can save the photo and open it in another app.

“My original vision comes from my time when I was working at GoPro,” co-founder and CEO Matthieu Rouif told me. “I often had to remove the background from images and when the designer was out of office, I would spend a ton of time doing it manually.”

And it turns out many people have been looking for a simple app that lets them go in and out as quickly as possible with an edited photo in their camera roll.

For instance, people selling clothes and other items on peer-to-peer e-commerce platforms have been using PhotoRoom to improve their photos. PhotoRoom is often recommended in online discussions or YouTube tutorials about optimizing your Poshmark or Depop listings.

Downloads really started to take off around February. PhotoRoom now has 300,000 monthly active users. The app is only available on iOS for now. And if you’re a professional using it regularly, you can pay for a subscription ($9.49 per month or $46.99 per year) to remove the watermark and unlock more features.

“Subscriptions are what works best on mobile for photo and video apps,” Rouif said.

Behind the scene, PhotoRoom uses machine learning models to identify objects on a photo. And the vision goes beyond removing backgrounds.

Photoshop, the clear leader in photo editing, was designed decades ago. There’s a steep learning curve if you want to use it professionally. It’s hard to understand layers, layer masks, channels, etc.

PhotoRoom wants to build a mobile-first photo-editing app that doesn’t lazily borrow Photoshop’s metaphors and interface elements. “What would be Photoshop if you could understand what’s on the photo,” Rouif said.

While the app relies heavily on templates, you can tweak your images by adding objects, moving them around, adding some shadow and editing elements individually. Image composition is 100% up to the user.

Like VSCO, Darkroom, PicsArt, Filmic Pro and Halide, PhotoRoom belongs to a group of prosumer apps that are tackling photo and video editing from different ways. A generation of users who grew up using visual social networks are now pushing the limits of those apps — they look simple when you first use them, but they offer a ton of depth when you learn what you can do with them. And they prove that smartphones can be great computers, beyond content consumption.

Rouif was the head of product at Stupeflix, a powerful video editing app that was acquired by GoPro back in 2016. PhotoRoom is just getting started as there are only four people working on the app, including two interns.

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Jun
05

10 things in tech you need to know today

Mike Cohen/Getty Images for The New York Times

Good morning! This is the tech news you need to know this Friday.

Microsoft billionaire Bill Gates said it's hard to deny vaccine conspiracy theories involving him because they're 'so stupid.' Misinformation has been circulating in recent weeks falsely claiming that Gates is behind a plot to use vaccines to implant microchips in people.LinkedIn CEO Ryan Roslansky apologized on Thursday after employees anonymously made "appalling" comments criticising the company's efforts to diversify its workforce during a global town hall meeting to discuss racial inequity and biases earlier this week. During the meeting, first reported by the Daily Beast, staffers criticised the protests and LinkedIn's efforts to diversity its workforce by posting anonymous messages into the event's chat window.Another SoftBank-backed startup has laid off staff thanks to a slowdown in business. Software startup Builder.ai has made 39 staff redundant as the pandemic continues to hit business.Buzzy challenger bank Monzo is to lay off 80 staff as it restructures its business, according to leaked messages obtained by Business Insider. Monzo, a darling among financial startups, has taken a big hit to its revenue through the pandemic and will make a portion of its staff redundant.Google is to shake up its Search and Maps leadership, with company veterans shifting to new roles. Google head of Search Ben Gomes is transitioning to a different role at the company while Jen Fitzpatrick, who heads up Google's Maps business, is also moving to a new role overseeing Google's Core and Corp engine teams.A Twitter user was suspended for 'glorifying violence' after posting exactly what Donald Trump tweets. The account @suspendthepres launched May 29, and started to post tweets identical to those sent on Trump's Twitter.Slack will boost its spending on AWS to $425 million and Amazon employees will be able to start using Slack as the two companies deepen their partnership. Amazon Web Services and Slack are partnering to use Amazon infrastructure for Slack tools.Tim Cook published an open letter on racism after he was called out for not speaking up publicly amid protests over George Floyd's death. In the letter, Cook describes a history of "deeply rooted discrimination" in America and says we must do more to "guarantee freedom from fear" for every person. Black founders in the UK have shared their experience of everyday racism while growing up, fundraising, and building a business. The six founders noted that little venture capital goes to black founders, while tech continues to lack diversity as an industry.Zynga, once written off as the flailing creator of "FarmVille", has undergone a successful turnaround. The company announced a $1.8 billion acquisition of Turkish gaming company Peak during the pandemic, and has seen a big boost in downloads as users under lockdown turn back to its games.

Have an Amazon Alexa device? Now you can hear 10 Things in Tech each morning. Just search for "Business Insider" in your Alexa's flash briefing settings.

You can also subscribe to this newsletter here — just tick "10 Things in Tech You Need to Know."

Original author: Shona Ghosh

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Jun
05

'Success, struggle and survival': Black founders speak out powerfully on the fight against everyday racism in the UK

Olayinka Ewuola

Yinka is a founding member of UK Black Tech and a director at Calla Success Systems. 

I feel the way many black people feel today – and have felt many times before, with the harrowing and traumatic deaths of so many posthumously famous black men and women in the US and the UK.

It's enraging and it's exhausting – but I reserve both my rage and energy for action, as that is the only way to make a difference.

The reaction to a police officer – a public servant appointed to protect and serve the public, treating anyone the way George Floyd was treated should be the same for all: one rooted in decency and basic humanity.

The murder and abuse of power should be a source of outrage for everyone, not just the "black community".

I don't think this will be a turning point in the way black communities are treated, because we've been here before.

Black men have been vilified, abused, killed, and murdered by the police before. Those killings have been documented and publicized before, those killings have sparked riots before – and we've had many long conversations about race before.

Hundreds of books and thousands of articles have been written, FAQs typed up, Lunch-and-Learns attended. Brands and politicians like to say: "We're listening."

My skepticism makes me ask: "How is this different?" All these things happened before, and it's happened again. So the event itself won't bring the change, but the follow-up actions will.

There is still such a stark level of ignorance about what racism is – and how it looks on a daily basis – that people will deny others' lived experiences.

Instead, people try to look like they are learning and changing, when in reality, it's worthless. This virtue signalling is almost mandatory to save face and ensure they look like they're on the right side of the debate.

Many of these organizations hide their own toxic cultures, in which staff are terrorized through both covert and daily acts of racism, often dismissed as banter, or rejected when it's reported through the official channels.

What happens next will ultimately determine what changes, and that comes from some harsh truths being understood on all sides. No "white saviors" are needed here: No collective group of people would knowingly dismantle a system designed to favor them.

We need partners to work across society, and that's not the job of a few tweets and black squares, it's a much tougher job than many are prepared to take on. Change itself will not come from outside of our community – but from within.

Because the fact is that racism happens every day. It happens when young black boys are called 'youths' or described as being in 'gangs' when they are standing outside their school in their uniform talking to their friends.

It happens when black people are paid 60p for every £1 paid to white counterparts. It happens when black professionals are constantly called upon to talk about diversity instead of their area of career expertise or study, often when their white counterparts have already been paid in full.

I've experienced it innumerable times. It's been overt, it's been covert, It's been called out, it's been ignored. It's been fought, and I've won and lost. I have one life to live, and I am focused on doing the best for me and my family – and impacting upon what I can control, and no more. 

But the change in this situation begins with the realization that co-ordinated and systemic changes will only come from black economic empowerment, at all levels.

And, most importantly – to quote Bob Marley – wth the emancipation from mental slavery.

Education is critical: The truth about Empire, about white supremacy, and about the history of black peoples, so they can know they are descendants of greatness, not just slavery and trauma.

They need to be taught how the levers of power work, and the importance of economic and financial empowerment. Only through education will change come, and the inequalities that underpin these situations begin to be addressed.

It is up to us to make the changes we want to see.

I'm optimistic that change will come, at least in my slice of the world, because I know it starts with me, and I'm committed to doing my part.

Original author: Martin Coulter

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Jun
05

Roundtable Recap: June 4 – No Monetization Path, No Startup - Sramana Mitra

During this week’s roundtable, we had as our guest Pamela York, Founding General Partner, CAPITA3 and Founder & CEO, Atasi Ventures, with a special focus on women entrepreneurs in healthcare....

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Original author: Sramana Mitra

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Jun
05

LinkedIn CEO apologizes after an internal meeting about racial inequality and bias was hit with 'appalling' comments from anonymous employees

LinkedIn CEO Ryan Roslansky apologized on Thursday after employees anonymously made "appalling" comments criticising the company's efforts to diversify its workforce during a global town hall meeting to discuss racial inequity and biases earlier this week. Roslansky, who only started as CEO of the Microsoft-owned social network on Monday, apologized for allowing the comments."We are not and will not be a company or platform where racism or hateful speech is allowed," he said.Other LinkedIn staffers were outraged, according to the Daily Beast, and called the comments "disturbing and racist."The company will no longer allow anonymous comments at such meetings. LinkedIn declined to comment beyond Roslansky's public email to employees.LinkedIn released a report last year showing just 3.5 percent of its workforce was Black.Do you work at Microsoft? Contact this reporter via encrypted messaging app Signal (+1-425-344-8242) or email (This email address is being protected from spambots. You need JavaScript enabled to view it.).Visit Business Insider's homepage for more stories.

LinkedIn's new CEO apologized to employees after the company allowed a meeting to address protests across the United States over police brutality and systemic racism prompted by the death of George Floyd to be taken over by "appalling," anonymous employee comments.

"We are not and will not be a company or platform where racism or hateful speech is allowed," he said.

Ryan Roslansky replaced Jeff Weiner as LinkedIn's CEO on Monday. On Wednesday, LinkedIn held a town hall meeting to discuss racial inequality and biases. During the meeting, first reported by the Daily Beast, staffers criticised the protests and LinkedIn's efforts to diversity its workforce by posting anonymous messages into the event's chat window.

"As a non-minority, all this talk makes me feel like I am supposed to feel guilty of my skin color. I feel like I should let someone less qualified fill my position," one anonymous staffer commented, per the Daily Beast. "I believe giving any racial group privilege over others in a zero sum game would not get any support by others. Any thoughts on hurting others while giving privileges with the rosy name called diversity?" another reportedly said.

Other LinkedIn staffers were outraged, according to the Daily Beast, and called the comments "disturbing and racist."

Roslansky said in his LinkedIn post that the comments evaded notice during the event because "those of us in presenter mode weren't able to track the comments in real time." The company will not allow anonymous comments at such events in the future, he said.

LinkedIn released a report last year showing just 3.5 percent of its workforce was Black, compared to 47.5 percent white, 40.3 percent Asian, and 5.9 percent Latino. Just 1 percent of the company's leadership was Black at the time. Rosanna Durruthy, LinkedIn's vice president of global diversity, inclusion, and belonging, at the time said hiring a diverse workforce was the company's No. 1 "talent priority."

"Many of you shared the hardest part was realizing that this company we love and hold to such a high standard still has a lot of work to do to educate ourselves and our colleagues on how to create a culture that is truly anti-racist," Roslansky said. "We will do that work."

LinkedIn declined to comment beyond the contents of Roslansky's post.

Are you a Microsoft employee? Contact this reporter via email at This email address is being protected from spambots. You need JavaScript enabled to view it., message her on Twitter @ashannstew, or send her a secure message through Signal at 425-344-8242.

Original author: Ashley Stewart

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Sep
10

Some of Silicon Valley's leading startups making meat from cells are abandoning the term 'clean meat' — here's what to call it instead

The New York Times' Tom Cotton Op-Ed and aftermath: What to know - Business Insider
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This week, The New York Times published an opinion piece by Republican Senator Tom Cotton titled Send In The Troops. The op-ed called for the US Army to be deployed across cities to stop protesting.The article was met with widespread criticism and accused of putting the lives of black people at risk.Many of the paper's employees also denounced the article, tweeting out the same statement: "Running this puts Black @nytimes staff in danger"NewsGuild of New York, the New York Times' union, also put out a statement condemning the article. "His message undermines the journalistic work of our members, puts our Black staff members in danger, promotes hate, and is likely to encourage further violence," it read, referring to Cotton.James Bennet, editor of the New York Times opinion pages, put out a series of tweets explaining why the article got published. "Times Opinion owes it to our readers to show them counter-arguments, particularly those made by people in a position to set policy," he wrote.On Thursday, conversations took place within the company regarding the the article, including discussions about the distinction between news and opinion in the newsroom.Bari Weiss, a staff editor and writer on the Times' opinion desk, began tweeting about those conversations and giving her opinion on the dynamic inside the Times newsroom. Weiss described a "civil war" between the old and new guard.Other Times journalists disputed her claims. One editor said her characterizations were "inaccurate."Later, the Times issued a mea culpa regarding the op-ed."We've examined the piece and the process leading up to its publication. This review made clear that a rushed editorial process led to the publication of an Op-Ed that did not meet our standards. As a result, we're planning to examine both short term and long term changes, to include expanding or fact checking operation and reducing the number of Op-Eds we publish."In its latest article on the topic, the Times said the editing process on the op-ed had been "rushed" and that the piece was under review."Near the end of the day, James Bennet, the editor in charge of the opinion section, said in a meeting with staff members that he had not read the essay before it was published. Shortly afterward, The Times issues a statement saying the essay fell short of the newspaper's standards," wrote the Times.Much has been written about the article's implications and accuracy, including a piece in Columbia Journalism Review headlined 'New York Times public editor: Sen. Cotton's op-ed was dishonest, not only reprehensible.Visit Business Insider's homepage for more stories.

SEE ALSO: Donald Trump's campaign accused Snapchat of acting 'illegally' after the app said it would stop promoting the president's account

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Original author: Hugh Langley

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May
03

Roundtable Recap: May 3 – Spotlight on EdTech - Sramana Mitra

Apple will offer optional COVID-19 tests for employees as they return to the office, Bloomberg reported Thursday.The company will also require temperature checks and masks, limit the number of people in crowded spaces, and keep many of its break-room kitchens closed, according to Bloomberg.Apple, with its hardware focus and secretive culture around new products, has been more eager than other major tech firms to reopen its offices and began allowing some employees back in May.Other companies, including Amazon, are also looking to test employees as they adapt to a new work environment amid the ongoing pandemic.Visit Business Insider's homepage for more stories.

As Apple employees gradually begin returning to the office, they'll have the option to receive COVID-19 nasal swab tests when they show up for work, Bloomberg reported on Thursday.

The company will also require that employees have their temperature checked upon arrival, wear masks, and limit their numbers in confined places like elevators, according to Bloomberg. Apple will also make modifications to its headquarters in Cupertino, California, like keeping break-room kitchens closed and reconfiguring open-office floor plans.

Apple, which was one of the first major tech companies to halt employee travel and close retail stores as the coronavirus began to spread outside of China earlier this year, has also been one of the first to start bringing employees back into the office.

In mid-May, Bloomberg reported that Apple began a phased return-to-work approach, initially allowing some hardware and software engineers to resume working out of its headquarters several days per week.

Apple, with a focus on building hardware and a secretive culture that has reportedly made it difficult for employees to work remotely, has taken a starkly different approach than rivals like Google and Facebook, which are allowing their employees to work remote until the end of 2020 (or even indefinitely if they choose, in Facebook's case).

Other companies that are charting more aggressive timelines, including Amazon, have also started building up capacity to test employees. CEO Jeff Bezos told shareholders in April that the company is aiming to test all employees, and Business Insider reported in May that the company has begun a pilot program for warehouse workers.

Apple did not immediately respond to a request for comment on this story. 

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Original author: Tyler Sonnemaker

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May
03

1Mby1M Virtual Accelerator Investor Forum: With Heidi Roizen of DFJ (Part 4) - Sramana Mitra

Airbnb may not get a big benefit from the recent rebound in short-term rental bookings.Much of the pick-up in activity is coming from vacation spots such as beaches and parks within driving distance of major cities.Airbnb rival VRBO tends to dominate the market for accommodations in those areas, Scott Shatford, the CEO of industry research firm AirDNA, told Business Insider.Longer term, Airbnb could still do well, though, in part because it enacted a much more guest-friendly stance during the coronavirus crisis than VRBO, Shatford said.Click here for more BI Prime stories.

After being crushed by the coronavirus crisis, the short-term rental market is bouncing back. But that's not necessarily good news for market leader Airbnb.

Much of the pick-up in activity is coming from vacation destinations within driving distances of major cities, Scott Shatford, CEO of AirDNA, an industry research firm, told Business Insider. Those kinds of areas have long been a stronghold of VRBO, Airbnb's chief rival, he said. By contrast, Airbnb's stronghold is in cities, which are not seeing nearly as much of an uptick in reservations, he said.

"It's just in the nature of who's booking travel," said Shatford. "I think VRBO, through this summer," he continued, "will perform better than Airbnb."

With states and countries lifting their coronavirus-related restrictions, people around the world are beginning to travel more and plan for future vacations.

AirDNA reported last week that consumers worldwide made 2.1 million short-term rental bookings the week of May 18, which was up 127% from the nadir when the coronavirus crisis was raging at its worst. Some countries, including the United States, have even started to see booking reach levels that exceed what they were prior to the onset of the pandemic.

But the rebound is uneven. Bookings are skyrocketing in places such as Big Bear Lake, outside of Los Angeles; South Padre Island, Texas; and North Carolina's Carolina Beach. In each of those destinations, reservations were up more than 1,000% from the low point in April.

Big cities are seeing only a limited rebound

By contrast, big cities are seeing much more modest increases in bookings. New York was up only 40% from the April bottom. And San Francisco was up by less than 50%. And that was before widespread protests erupted im cities across the country, often resulting in government-imposed curfews.

The week of April 5, New York City saw 2,812 short-term rental bookings, according to AirDNA. That was more than three times the numbers seen in Gulf Shores, Alabama, that week, and more than five times that in Myrtle Beach, South Carolina. But the week of May 18, both of those picturesque places saw at least 800 more bookings than the Big Apple did.

People who are going to those vacation destinations are typically older and looking for bigger places to rent, such as four-bedroom houses, Shatford said. Those kinds of spaces are right in VRBO's wheelhouse, but not in Airbnb's, he said.

"VRBO's always been this traditional leisure market," Shatford said. He continued: "That's where they started and that's where they still have ... dominance, in terms of that supply. And obviously, that supply has done better. That's what people are choosing."

Airbnb has already taken a big hit to its business. Company CEO Brian Chesky said last month he expects revenue to be down more than 50% from last year due to the pandemic. In response to its troubles, the company cut 25% of its workforce, laid off most of its contractors, and has slashed other expenses. It has also raised $2 billion in debt since the crisis began.

Airbnb's prospects are likely brighter in the longer term, Shatford said.

Airbnb will likely benefit from being guest-friendly

During and in the wake of the coronavirus crisis, people have been leaving big cities for health or safety reasons. There are indications that housing demand is falling in places like New York and San Francisco.

While people may again resume traveling to such cities, they're likely to want to stay on the fringes of those places, outside of their dense urban cores, Shatford said. It's in such places where hotels can be hard to come by that short-term rental accommodations of flourished, he said.

Meanwhile, the differing ways Airbnb and VRBO handled cancellations during the coronavirus crisis is likely to benefit the former, Shatford said. Both companies allow the property managers who use their services to set their own cancellation terms. But during the pandemic, Airbnb has allowed many travelers to cancel their bookings and get a full refund, regardless of what the host's policies would have provided. VRBO, by contrast, has stuck by its hosts, many of whom have refused to offer full refunds.

Some hosts have threatened to abandon Airbnb because it overrode their cancellation policies. But that same move likely earned the company the loyalty of travelers, Shatford said.

"I'm still am of this belief ... that guest loyalty will win this in the long run," he said.

Got a tip about Airbnb? Contact Troy Wolverton via email at This email address is being protected from spambots. You need JavaScript enabled to view it., message him on Twitter @troywolv, or send him a secure message through Signal at 415.515.5594. You can also contact Business Insider securely via SecureDrop.

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Original author: Troy Wolverton

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04

A Workshop for Colorado Food Entrepreneurs in Hotchkiss, CO – June 21 and 22

Andreessen Horowitz partner Naithan Jones responded to recent criticisms about the firm's new Talent x Opportunity Fund, which has attracted scrutiny of both its structure and starting size of $2.2 million.  Jones said that he pushed for the fund to be a nonprofit donor advisory fund rather than a venture capital fund, to allow "everyone from the community to be investors and entrepreneurs," and "decentralize" control of the incentives driving investors.  Jones also pushed back against criticism that the fund was creating a "side door" for people who'd already gone through the traditional fundraising process. Visit Business Insider's homepage for more stories.

Andreessen Horowitz partner Naithan Jones took to Twitter to address a series of criticisms that have cropped up against the elite venture capital firm's new nonprofit 'Talent x Opportunity' fund, which was announced on Wednesday. 

"I want to clear up some misconceptions about TxO," Jones began, in the first of a 13-tweet-long thread. "A lot of the things being spread are only half truths with the blanks filled in the most cynical way possible. They are becoming accepted myths which could damper donations." 

The TxO fund's announcement made waves on Wednesday, as some entrepreneurs and VCs responded to the announcement with applause. Others criticized the fund's nonprofit structure, and the fact that it was kicking off with just $2.2 million in partner donations, an amount that pales in comparison to Andreessen Horowitz's total $12 billion in assets under management. 

Jones, who first began by responding to individual Twitter criticisms, told critics that he was responsible for the fund's donor advisory structure, and defended it as a way for "everyone from the community to be investors and entrepreneurs." He also said the structure would allow the nonprofit Tide, which will manage the fund, to hold Andreessen Horowitz accountable for the criteria around which it could invest in founders. 

"In this case we can decentralize the control of both the incentives and the oversight of money portion of this," Jones said. 

The fund's nonprofit status has been controversial, especially as it plays into the fund's relatively small starting size of $2.2 million — less than many of the firm's investments in individual startups like Clubhouse.

In a podcast on Thursday, Backstage Capital founder Arlan Hamilton addressed both SoftBank's $100 million fund and Andreessen Horowitz's nonprofit fund, noting that they were off to a good start but both firms — as well as a number of other firms in the industry — had the resources to do more.

"You owe black funders an apology. The billions and billions and billions of dollars under management that goes to other white men for over 75 years. You owe us an apology," Hamilton said. "I will not apologize for being offended and insulted by these people who have gotten and taken everything by way of economics from black and brown bodies, and then give us crumbs for a headline." 

Jones didn't directly address that critique in his thread, but noted that the fund's starting amount — all "generously awarded" donations from the fund's partners — had grown. A commitment from Ben and Felicia Horowitz to match donations of up to $5 million had allowed the fund to multiply in size, Jones said. 

To critics who noted that dedicating a separate fund for underserved founders was one way to give rejected founders "a side door" rather than opening up regular access to Silicon Valley's circles, Jones said that they were wrong. 

"This is not a program to lower the bar for who gets a check from us or a side door after rejection from the front door. ...It's a training program and fund for those talented people we would NEVER see without this program in the first place." he tweeted.

Founders provided with the firm's 10 month training program and Andreessen Horowitz's network would then be able to deliver "the same returns as the people from elite schools," Jones added, stressing, "THIS IS NOT A CHARITY."

Original author: Bani Sapra

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Jun
04

Slack will boost its spending on AWS to $425 million and Amazon employees will be able to start using Slack as the two companies deepen their partnership (AMZN, WORK)

AWS is partnering to use Amazon infrastructure for Slack tools.As part of the deal, Slack is increasing its commitment to AWS to $425 million from $250 million.Amazon will also start rolling out Slack to its employees, and Slack for the first time publicly proclaimed AWS as its "preferred cloud provider."Do you work at Microsoft? Contact this reporter via encrypted messaging app Signal (+1-425-344-8242) or email (This email address is being protected from spambots. You need JavaScript enabled to view it.).

Amazon Web Services and Slack announced on Thursday a partnership to use Amazon infrastructure for Slack tools including audio, video, and screensharing. As part of the deal, Amazon will start rolling out Slack to its employees, and Slack for the first time publicly proclaimed AWS as its "preferred cloud provider."

Securities filings reveal Slack upped its commitment to AWS to $425 million from $250 million. The company's annual committment to AWS increased to $75 million from $50 million and will increase by $5 million every year until 2025.

"We're both the innovators and leaders of our respective areas coming together," Slack's business development chief Brad Armstrong told Business Insider, adding that the partnership "illustrates the fallacy of the argument that only an integrated solution can come from a monolithic vendor that's providing all things. We are the best at what we do."

AWS and Slack said the partnership is not targeted at competing with any company in particular, but Armstrong's comments appear to refer to what's often said to be an advantage of Microsoft's chat and collaboration app Teams — which integrates tightly with Office 365, Microsoft's suite of ubiquitous business apps.

Microsoft recently said Teams has reached 75 million daily active users, up from 44 million in mid-March.

The partnership also comes after Zoom teamed up with Oracle to support a surge in users during the pandemic, although AWS CEO Andy Jassy during a recent virtual speech made sure to clarify "the vast majority of Zoom's cloud infrastructure runs on AWS and it will for foreseeable future."

Slack and AWS have worked together for years, but Armstrong said this is the first time Slack has made a public statement to "reveal we are designating AWS as our cloud provider."

Slack has relied on its own technology to power voice and video calls from within its app, but by its own admission falls short of the standards in teleconferencing set by apps like Microsoft Teams or Zoom.

Amazon has its own, lesser-known online meeting, videoconferencing, and chat app called Chime. As part of the deal, Slack will use the software development kit from Chime to power its audio, video, and screensharing capabilities in Slack calls. 

Analysts have also suggested that Amazon could turn to acquisitions to bolster its efforts in the collaboration space — and have named Slack as one of its most likely targets, should it go that route.

While Chime doesn't appear to be as widely used as Slack or Teams, the partnership shows interest in Chime as a developer service. Market share information isn't available for Chime, but as one analyst recently told Business Insider: "I cannot recall attending a Chime meeting that wasn't related to or hosted by Amazon."

Eron Kelly, general manager of AWS compute infrastructure and applications, told Business Insider that Chime will still be available to end users, but that Amazon has in the past six months seen a lot of interest in Chime's software development kit.

"Customers are really interested in taking advantage of the scale, reach, reliability that the AWS platform can provide, not only for compute, storage, and database services, but also for video and voice services," Kelly said. "We are seeing people want to have collaborative experiences like voice and video in the context of the work they are doing."

Amazon will start rolling out Slack to its employees. Kelly said, "We are now making it available as part of this partnership and we will be able to roll it out across the company but it's early stages."

Are you a Microsoft employee? Contact this reporter via email at This email address is being protected from spambots. You need JavaScript enabled to view it., message her on Twitter @ashannstew, or send her a secure message through Signal at 425-344-8242.

Original author: Ashley Stewart

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Jun
04

Ethena raises $2 million in seed funding for smarter anti-harassment software

Corporate harassment training is often defined by mandatory annual workshops, stock photo-ridden curricula and, often, outdated scenarios. Harvard graduates Roxanne Petraeus and Anne Solmssen think there’s a business in doing better than that.

The duo co-founded Ethena, a software-as-a-service startup that sells anti-harassment training software that is more comprehensive and flexible than the status quo.

Ethena sends “nudges,” or personalized short-form bits of training content, to employees throughout the year. One nudge could be about office dating, and a few weeks later, another nudge could be about mentorship.

Each month a user would get either an e-mail or Slack notification saying it is time to train. Then the user would go to a browser-based app and take a lesson, which depends on your managerial status, state of residence and other factors. The sessions would then be five to 10 minutes.

The distributed approach takes away the ability for an employee to front-load hours of training on their first week. Instead, Ethena’s consistent check-ins are aiming at a difficult metric to track: comprehension within compliance training.

“The reason we do that is because in the adult learning base it is pretty emphatic that repetition is crucial,” Petraeus said.

This format also gives the company a chance to adapt its content to the world users are living in. Ethena’s content has to follow a certain curriculum based on state law, but, it can add its own flavor. For example, when COVID-19 became a serious threat, Ethena was able to send users training in regards to online harassment and cyberbullying. Old curricula might not account for what Zoom harassment might look like.

Petraeus said of the examples users see in the software, “it makes no sense to have Jim and Jan go to a bar if that’s not the environment we are in.”

Ethena also works as a replacement for in-person anti-harassment workshops during COVID-19 and resulting shelter-in-place orders. As offices continue to remain shut down, companies need to find new ways to talk about issues that are not going away.

Efficacy of anti-harassment training is hard to track with numbers. If a company tried to measure Ethena’s efficacy with data around the number of harassment reports filed before and after the software was used, it presumes that victims are choosing to report in the first place. Victims, for a variety of reasons, often don’t report due to fear of retaliation or inaction.

For the co-founders, a lack of hard data about whether their software works meant that they had to find another way to pitch to customers.

“It would be really irresponsible to just kind of bank on ‘everyone will believe in this mission with us,’ ” said Petraeus. “We read the newspaper; that will not happen.”

Instead, the co-founders think that sweeping training regulations and legal obligations might be what force companies to onboard more intensive software.

“We keep companies in a legally, very safe position because their employees are always sort of ahead of what they need to stay compliant with state regulations,” Solmssen said. “We’re able to become a part of the fabric of everyday thinking and behavior for employees.”

Long term, Ethena is working with a peer-reviewed journal to see if effective anti-harassment training can be related to higher retention rates in companies.

The company envisions early adopters to be small companies that are scaling. It charges companies per seat, which comes out to $4 per employee per month, and $48 per employee per year.

Petraeus and Solmssen piloted the program in November 2019 and launched in January. Today, the startup told TechCrunch they have raised $2 million in seed funding led by GSV, with participation from Homebrew, Village Global and more. It has 50 customers.

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Jun
04

The top trending TV shows this week, from Netflix's 'When They See Us' to HBO Max's 'Legendary'

HBO Max's "Legendary" and Netflix's "When They See Us" are some of the top trending TV shows right now.Every week, data company Parrot Analytics provides Business Insider with the top streaming originals with the biggest week-over-week increase in demand in the US.These aren't necessarily the most popular titles, but the ones that are gaining the most momentum. Visit Business Insider's homepage for more stories.

As protests against racism and police violence spread throughout the US, interest in TV shows that focus on race, such as Netflix's "When They See Us" and "Dear White People," has increased.

Every week, data company Parrot Analytics provides Business Insider with the top streaming originals that have seen the biggest week-over-week increase in audience demand in the US. Parrot Analytics measures demand expressions, its global TV measurement standard that reflects the desires, engagement, and viewership of a series, weighted by importance.

This week measured the increase in demand from the week of May 20 to 26 to the week of May 27 to June 2. These aren't necessarily the most popular titles in the US, but they are the ones gaining the most momentum among audiences.

HBO Max, which launched last week, has three shows on the list: the animated "Looney Tunes Cartoons," the third season of "Search Party," and "Legendary."

Below are the top 8 streaming original TV shows on the rise this week:

Original author: Travis Clark

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May
02

These charts show how use of Microsoft Teams, Slack, and Zoom has skyrocketed thanks to the remote work boom (MSFT, ZM, WORK)

Andreessen Horowitz is launching a new nonprofit fund to fund founders from underserved backgrounds without the network and the know-how to be scouted by Silicon Valley's blue-chip VC firms. The Talent x Opportunity fund, led by Andreessen Horowitz partner Naithan Jones, begins with $2.2 million in donations from Andreessen Horowitz partners. It will also accept donations from those outside the VC firm, a blog post from the firm said. Protests against racism and police brutality have also spurred other Silicon Valley VC firms to reconsider their efforts to promote diversity, an issue that the industry has been struggling with for decades. Jones has already sent out a call for people to refer "hidden founders" and sign up on a Google form so the firm can get in touch. Visit Business Insider's homepage for more stories.

Against the backdrop of protests against racism and police brutality erupting across the country, Andreessen Horowitz has announced that it is launching a new nonprofit fund to invest in founders from underserved backgrounds. 

The Talent x Opportunity fund, which has already raised $2.2 million in donations from firm partners, plans to invest seed money into businesses selling both tech and non-tech products. Investment returns will all go back into the fund, to feed the next generation of startups, according to a blog post published by the firm. 

"We are looking for entrepreneurs who did not have access to the fast track in life but who have great potential. Their products can be non-tech or tech; they should be from underserved communities (all backgrounds welcome); and ideally, their business will have an interesting model, niche market, and/or a little traction to indicate the promise and potential," the firm said. 

Silicon Valley's venture capital industry has long been criticized for its approach to increasing diversity in both its investments and its workforce. Standard practices like scouting startups from a known network of elite institutions (an Ivy League education, or experience at a big tech firm like Apple or Google) have made it difficult for some startup founders to get an audience with Silicon Valley's blue-chip firms.

The new fund aims to crush those barriers for founders struggling to be seen. It's being spearheaded by Naithan Jones, a firm partner who broke into Silicon Valley's elite circles as a British-born Kansas-raised startup founder. Jones has previously written about how he got a foothold in venture capital as an "outsider" with no college degree, and stressed the need to recruit others from unique backgrounds. 

In addition to seed capital provided by the firm, Andreessen Horowitz said that it hoped to provide founders with the blue-chip firm's vast network, and give them the chance to get further funding like "an accelerator for the unseen."

The firm has said that it is not only open to outside donations to the fund, but that founding partner Ben Horowitz and his wife Felicia will devote $5 million to matching donations. The fund will also accept donations issued in cryptocurrency, Jones added in a tweet. 

The recent calls for racial justice in the country have put the spotlight on venture firms announcing commitments to growing diversity or announcing new initiatives. On the same day as Andreessen Horowitz's announcement, Japanese tech conglomerate SoftBank announced that it was launching a new $100 million fund to invest in companies led by black Americans and people of color.

Although SoftBank's fund is significantly larger than the Talent x Opportunity fund, Andreessen Horowitz also has other ongoing efforts to increase diversity within tech. The firm's Cultural Leadership fund, launched two years ago, sets out to increase diversity in tech by donating all its management fees and carried interest into non-profits dedicated to increasing diversity in technology. 

The Silicon Valley blue-chip firm's broader focus on drawing out founders from non-traditional backgrounds may also make it different from some of its peers' efforts. Jones has sent out a call for word about "founders of young companies you likely would not see in Silicon Valley" and asked people to sign up on a Google form. 

"Our firm culture is based on the idea that words by themselves are empty," the firm wrote, perhaps in a veiled reference to recent criticism that the firm had not immediately issued a statement in support of the Black Lives Matter movement. 

"We're venture capitalists, not activists," the firm added in the post. "We support the amazing work that people are doing to fix policing specifically... but our direct contribution will be doing what we do best: To help entrepreneurs be better entrepreneurs, so they can build great businesses that in turn create jobs and value for others."

Original author: Bani Sapra

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May
01

Guilded raises $7 million for its competitive gaming-focused chat app

Facebook has started to apply labels to state-run media outlets — news publishers it deems "wholly or partially under the editorial control of their government" — the company said in a blog post Thursday. 

"We believe people should know if the news they read is coming from a publication that may be under the influence of a government," the company said, "because they combine the influence of a media organization with the strategic backing of a state."

Facebook originally announced its plans to identify state-run media back in October 2019, but offered more details about its policy Thursday.

The company it had officially begun the process of adding the labels, which will start appearing this week in its "Ad Library Page view, on Pages, and in the Page Transparency section" for all users and on News Feed posts for US users. 

Facebook

Facebook's criteria for determining whether a media outlet is state-run will include: the outlet's mission statement, whether its owners or leaders are government officials or appointees, its editorial guidelines, information about the outlet's staff, funding sources, accountability mechanisms, and country-specific factors like press freedom.

Publishers are allowed to appeal Facebook's decision, but the company said they'll need to point to laws, internal processes, or external assessments from a credible, independent organization that demonstrate their editorial independence.

Facebook also said Thursday that, starting later this summer, state-run media outlets will be blocked from running ads in the US.

While such publishers rarely advertise in the US, the company said the decision was made "out of an abundance of caution to provide an extra layer of protection against various types of foreign influence in the public debate ahead of the November 2020 election in the US."

Facebook has faced pushback for its policy around political ads, which bans profanity but exempts them from its third-party fact-checking program, and the company has long been criticized for its role in allowing misinformation to spread ahead of the 2016 election. 

In January, Facebook announced a tool that reduced the level of precision with which advertisers can target users, and also put the burden on users to tell the company if they want to see fewer political ads. More recently, Facebook has become embroiled in controversy after its decision not to take any action against posts by President Trump that spread false information about voting by mail and warned of "shooting" protesters.

Original author: Tyler Sonnemaker

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May
01

As lockdowns stretch on, is edtech passing or failing?

Credit Sesame laid off nearly 14% of its workforce on Wednesday, Business Insider has learned. The Mountain View, California, fintech startup helps customers raise their credit scores, compare loan rates, and gives recommendations for refinancing home mortgages.The company was last valued at $251 million in 2018.CEO Adrian Nazari told TechCrunch it was on track to be valued at over $1 billion the next year.Visit Business Insider's homepage for more stories.

The credit- and loan-management startup Credit Sesame laid off nearly 14% of its workforce on Wednesday as some fintech startups begin to stumble amid the coronavirus pandemic. 

The Mountain View, California, company confirmed that it cut 22 out of 160 employees in a statement to Business Insider. It also said that restrictions from credit suppliers amid the pandemic had squeezed its credit business, which allows customers to monitor credit scores.

"Due to restrictions by our credit suppliers as a result of COVID-19 and the effect it has had on our credit business, we made the decision to say goodbye to 22 of our 160 employees," a statement from Credit Sesame said. "This was an incredibly difficult decision for us, but one that was necessary to continue to serve our customers long term." 

Credit Sesame is a long-standing startup in the personal-finance space, competing alongside incumbents like Credit Karma and NerdWallet. It launched in 2010 with the goal of improving the financial health of its customers by helping them compare loans and keep track of credit scores. The company also issues recommendations for refinancing home mortgages. In addition, it launched a digital banking service in March that's focused on allowing customers to improve credit scores. 

The company has so far raised $135.4 million and counts Menlo Ventures and Capital One Ventures among its investors. Before the coronavirus pandemic hit the US, the startup said it planned to go public this year, TechCrunch reported.

Original author: Bani Sapra

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