Saturday, 29 May 2021

3 views on the future of meetings

More than a year into the coronavirus pandemic, early-stage startups across the world are re-inventing how we work. But founders aren’t flocking to build just another SaaS tool or Airtable copycat — they’re trying to disrupt the only thing possibly more annoying than e-mail: the work meeting.

On an episode of this week’s podcast, Equity hosts Alex Wilhelm, Danny Crichton and Natasha Mascarenhas discussed a flurry of funding rounds related to the future of work.

Rewatch, which makes meetings asynchronous, raised $20 million from Andreessen Horowitz, AnyClip got $47 million in a round led by JVP for video search and analytics technology, Interactio, a remote interpretation platform, landed $30 million from Eight Roads Ventures and Silicon Valley-based Storm Ventures, and Spot Meetings got Kleiner Perkins on board in a $5 million seed.

We connected the dots between these funding rounds to sketch out three perspectives on the future of workplace meetings. Part of our reasoning was the uptick of investment as mentioned above, and the other is that our calendars are full of them. We all agree that the traditional meeting is broken, so below you’ll find each of our arguments on where they go next and what we’d like to see.

  • Alex Wilhelm: Faster information throughput, please
  • Natasha Mascarenhas: Meetings should be ongoing, not in calendar invites
  • Danny Crichton: Redesign meetings for flow

Alex Wilhelm: Faster information throughput, please

I’ve worked for companies that were in love with meetings, and for companies where meetings were more infrequent. I prefer the latter by a wide margin. I’ve also worked in offices full-time, half-time and fully remote. I immensely prefer the final option.

Why? Work meetings are often a waste of time. Mostly you don’t need to align, most folks taking part are superfluous and as accidental team-building exercises they are incredibly expensive in terms of human-hours.

I am not into wasting time. The more remote I’ve been and the less time I’ve spent in less-formal meetings — the usual chit-chat that pollutes productive work time, making the days longer and less useful — the more I’ve managed to get done.

But I’ve been the lucky one, frankly. Most folks were still trapped in offices up until the pandemic shook up the world of work, finally giving more companies a shot at a whole-cloth rebuild of how they toil.

The good news is that CEOs are taking note. Chatting with Sprout Social CEO Justyn Howard this week, he explained how we have a unique, new chance to not live near where we work in 2021, but to instead bring work to where we live. He’s also an introvert, which meant that as a pair we’ve found a number of positives in some of the changes to how tech and media companies operate. Perhaps we’re a little biased.

A number of startups are rushing to fill the gap between the new expectations that Howard noted and our old digital and IRL realities.

Tandem.chat might be one such company. The former Y Combinator launch-day darling has spent its post-halo period building. Its CEO sent me a manifesto of sorts the other day, discussing how his company approaches the future of work meetings. Tandem is building for a world where communication needs to be both real-time and internal; it leaves asynchronous internal communication to Slack, real-time external communications to Zoom and asynchronous external chats to email. I agree, I think.



Friday, 28 May 2021

Extra Crunch roundup: first-check myths, Miami relocation checklist, standout SaaSy startups

This may seem like a great time to launch a SaaS startup, but the landscape is crowded with well-designed applications that promise “blazingly fast and delightfully simple” experiences, according to seed-stage investor John Chen of Fika Ventures.

Most SaaS startups will fail, but not because of a sour marketing campaign or server downtime. The majority of these companies will fall victim to what Chen calls “the myth of frictionless onboarding.”

Despite the hype about ease of use, enterprise companies always ask customers to abandon familiar tools so they can learn something new.

“Just like with a new fitness program, participants feel good after completing the workout, but it takes a lot of activation energy to start and hard work to get there,” Chen notes.


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Instead of putting the onus on customers to roll up their sleeves, he suggests that SaaS startups learn from cryptocurrency culture and find ways to “incentivize users to do the necessary work to have the right experience.”

But how do you encourage users to put in the time and effort required to produce an optimal customer experience?

“In a world where there is a surplus of alternatives for every job to be done, the scarce resource is not content, tooling, or hacks and tricks,” says Chen. “It’s attention.”

We’re off on Monday, May 31 in observance of Memorial Day; I hope you have a relaxing weekend!

Walter Thompson
Senior Editor, TechCrunch
@yourprotagonist

Dismantling the myths around raising your first check

Full length side view of young woman carrying large pink block against white background

Image Credits: Klaus Vedfelt (opens in a new window) / Getty Images

As startups and venture capital grow in tandem, fundraising has gone from a formal affair on Sand Hill Road to a process that can happen anywhere from Twitter to Zoom.

While fundraising may no longer require a trip to California, it might depend on whether you got an invite to a private audio app. And while you may not need to be an insider, second-time founders — largely male and white — still have a competitive advantage.

The growing complexity of fundraising has the opportunity to make tech either inclusive or exclusive.

VC is the flashy gold medal, but the rapid growth of emerging fund managers means that a first check can be piecemealed together from a variety of different sources. The options for financing are seemingly endless: syndicates, public crowdfunding, VC firms, accelerators, debt financing, rolling funds, and, for the profitable few, bootstrapping.

Doximity’s S-1 may explain why healthcare exits are heating up

Telehealth startup Doximity filed to go public earlier today. Notably, the company has not fundraised since 2014, a year in which it attracted just under $82 million at a valuation of $355 million, per PitchBook data.

How has it managed to not raise money for so long? By generating lots of cash and profit over the years. Healthtech communications, it turns out, can be a lucrative endeavor.

What Vimeo’s growth, profits and value tell us about the online video market

Image Credits: Avishek Das/SOPA Images/LightRocket via Getty Images

The spin-out of video platform Vimeo from IAC completed this week, and the smaller company is now trading as an independent entity under the ticker ‘VMEO’.

If you missed the news that the internet conglomerate was spinning out the video service, don’t feel bad; it slipped past many radars. But with the company now trading, our access to its historical results, and our minds still enthralled by YouTube’s recent financial performance for Alphabet, it’s worth taking a moment to digest the company’s health.

Flywire’s flotation suggests the IPO slowdown is behind us

The Flywire IPO is neat from a financial perspective and notable in that it’s a Boston exit as opposed to yet another New York or San Francisco-based flotation. It’s nice to see some other cities put points on the board.

But more than that, this IPO is a useful measuring stick for keeping tabs on the IPO market as a whole. This year and the last are shaping up to be key exit periods for startups and unicorns of all shapes and sizes; many a venture capital fund return rests on these public debuts.

Dear Sophie: Any unique immigration strategies for quick hiring?

lone figure at entrance to maze hedge that has an American flag at the center

Image Credits: Bryce Durbin/TechCrunch

Dear Sophie,

I do recruitment for tech startups. With a surge of VC investing, many startups are urgently hiring.

Which visas offer the quickest options for international talent? Are there any unique strategies that you would recommend we explore?

— Maverick in Milpitas

7 questions to ask before relocating your startup to Florida

a photo of an art deco style building in Miami with pastel gradient colors

Image Credits: Artur Debat (opens in a new window) / Getty Images

Cities like Miami, Pittsburgh and Austin have been drawing talent and wealth from Silicon Valley for years, but the COVID-19 pandemic accelerated the trend.

In recent months, many investors and entrepreneurs have noisily departed for Miami, citing the region’s favorable business climate and quality of life.

It’s always good to consider one’s options, but before booking a moving van for the Sunshine State — or any emerging tech hub, for that matter — here are some basic questions entrepreneurs should ask themselves.

Vise CEO Samir Vasavada and Sequoia’s Shaun Maguire break down the art of the pitch

Image Credits: Sequoia Capital / Wolfe + Von / TechCrunch

In just a few short years, Vise has gone from launching on the Disrupt Battlefield stage to a unicorn. Co-founders Samir Vasavada and Runik Mehrotra met Sequoia’s Shaun Maguire at an after-party at the event, and Maguire ended up leading a seed and Series A round while Sequoia led the Series B.

Last week, Vise raised its Series C of $65 million and was officially valued at $1 billion post-money.

We spoke to the pair about the early fundraising process for Vise, what Vasavada has learned about delivering a good fundraising pitch, and what stood out about the pitch and the product for Maguire.

Acorns’ SPAC listing depicts a consumer fintech business with a SaaSy revenue mix

Another day, another unicorn public offering.

On Thursday, it was Acorns, a consumer fintech service that blends saving and investing into a freemium product.

Acorns fits inside the larger savings-and-investing boom seen over the last four or five quarters as consumers buffeted by the economic changes brought on by COVID-19 turned to stashing cash and boosting their equities investing cadence.

By now this is old news, but we haven’t had a clear picture of the economics of consumer fintech startups accelerated by the pandemic. Now that Acorns has decided to list via a SPAC — more on that in a moment — we do.

Poor onboarding is the enemy of good hiring

Image of a person talking to two colleagues via videoconferencing.

Image Credits: Olga Strelnikova (opens in a new window) / Getty Images

The world of hybrid work is here, and the usual 10-minute intro call, swag bag and first-day team lunch are just not enough to make your new employee feel welcome.

While many companies have found a way to interview and select candidates in a fully remote environment, few have spent time and resources on aligning the “pre-boarding” and onboarding process for the new hybrid world of work. Many employers still rely on old ways of welcoming new hires, despite our totally changed work environment.

It’s important to capitalize on candidates’ enthusiasm and eagerness from the moment the offer is signed instead of when they log in on Day One, because first impressions can make or break a candidate’s chances of staying at a company.

 



Meet Justos, the new Brazilian insurtech that just got backing from the CEOs of 7 unicorns

Here in the U.S. the concept of using a driver’s data to decide the cost of auto insurance premiums is not a new one.

But in markets like Brazil, the idea is still considered relatively novel. A new startup called Justos claims it will be the first Brazilian insurer to use drivers’ data to reward those who drive safely by offering “fairer” prices.

And now Justos has raised about $2.8 million in a seed round led by Kaszek, one of the largest and most active VC firms in Latin America. Big Bets also participated in the round, along with the CEOs of seven unicorns, including Assaf Wand, CEO and co-founder of Hippo Insurance; David Vélez, founder and CEO of Nubank; Carlos Garcia, founder and CEO of Kavak; Sergio Furio, founder and CEO of Creditas; Patrick Sigrist, founder of iFood; and Fritz Lanman, CEO of ClassPass. Senior executives from Robinhood, Stripe, Wise, Carta and Capital One also put money in the round.

Serial entrepreneurs Dhaval Chadha, Jorge Soto Moreno and Antonio Molins co-founded Justos, having most recently worked at various Silicon Valley-based companies including ClassPass, Netflix and Airbnb.

“While we have been friends for a while, it was a coincidence that all three of us were thinking about building something new in Latin America,” Chadha said. “We spent two months studying possible paths, talking to people and investors in the United States, Brazil and Mexico, until we came up with the idea of creating an insurance company that can modernize the sector, starting with auto insurance.”

Ultimately, the trio decided that the auto insurance market would be an ideal sector considering that in Brazil, an estimated more than 70% of cars are not insured. 

The process to get insurance in the country, by any accounts, is a slow one. It takes up to 72 hours to receive initial coverage and two weeks to receive the final insurance policy. Insurers also take their time in resolving claims related to car damages and loss due to accidents, the entrepreneurs say. They also charge that pricing is often not fair or transparent.

Justos aims to improve the whole auto insurance process in Brazil by measuring the way people drive to help price their insurance policies. Similar to Root here in the U.S., Justos intends to collect users’ data through their mobile phones so that it can “more accurately and assertively price different types of risk.” This way, the startup claims it can offer plans  that are up to 30% cheaper than traditional plans, and grant discounts each month, according to the driving patterns of the previous month of each customer. 

“We measure how safely people drive using the sensors on their cell phones,” Chadha said. “This allows us to offer cheaper insurance to users who drive well, thereby reducing biases that are inherent in the pricing models used by traditional insurance companies.”

Justos also plans to use artificial intelligence and computerized vision to analyze and process claims more quickly and machine learning for image analysis and to create bots that help accelerate claims processing. 

“We are building a design-driven, mobile first and customer experience that aims to revolutionize insurance in Brazil, similar to what Nubank did with banking,” Chadha told TechCrunch. “We will be eliminating any hidden fees, a lot of the small text and insurance-specific jargon that is very confusing for customers.”

Justos will offer its product directly to its customers as well as through distribution channels like banks and brokers.

“By going direct to consumer, we are able to acquire users cheaper than our competitors and give back the savings to our users in the form of cheaper prices,” Chadha said.

Customers will be able to buy insurance through Justos’ app, website or even WhatsApp. For now, the company is only adding potential customers to a waitlist but plans to begin selling policies later this year..

During the pandemic, the auto insurance sector in Brazil declined by 1%, according to Chadha, who believes that indicates “there is latent demand raring to go once things open up again.”

Justos has a social good component as well. Justos intends to cap its profits and give any leftover revenue back to nonprofit organizations.

The company also has an ambitious goal: to help make insurance become universally accessible around the world and the roads safer in general.

“People will face everyday risks with a greater sense of safety and adventure. Road accidents will reduce drastically as a result of incentives for safer driving, and the streets will be safer,” Chadha said. “People, rather than profits, will become the focus of the insurance industry.”

Justos plans to use its new capital to set up operations, such as forming partnerships with reinsurers and an insurance company for fronting, since it is starting as an MGA (managing general agent).

It’s also working on building out its products such as apps, its back end and internal operations tools, as well as designing all its processes for underwriting, claims and finance. Justos’ data science team is also building out its own pricing model. 

The startup will be focused on Brazil, with plans to eventually expand within Latin America, then Iberia and Asia.

Kaszek’s Andy Young said his firm was impressed by the team’s previous experience and passion for what they’re building.

“It’s a huge space, ripe for innovation and this is the type of team that can take it to the next level,” Young told TechCrunch. “The team has taken an approach to building an insurance platform that blends being consumer-centric and data-driven to produce something that is not only cheaper and rewards safety but as the brand implies in Portuguese, is fairer.”



Anthropic is the new AI research outfit from OpenAI’s Dario Amodei, and it has $124M to burn

As AI has grown from a menagerie of research projects to include a handful of titanic, industry-powering models like GPT-3, there is a need for the sector to evolve — or so thinks Dario Amodei, former VP of research at OpenAI, who struck out on his own to create a new company a few months ago. Anthropic, as it’s called, was founded with his sister Daniela and its goal is to create “large-scale AI systems that are steerable, interpretable, and robust.”

The challenge the siblings Amodei are tackling is simply that these AI models, while incredibly powerful, are not well understood. GPT-3, which they worked on, is an astonishingly versatile language system that can produce extremely convincing text in practically any style, and on any topic.

But say you had it generate rhyming couplets with Shakespeare and Pope as examples. How does it do it? What is it “thinking”? Which knob would you tweak, which dial would you turn, to make it more melancholy, less romantic, or limit its diction and lexicon in specific ways? Certainly there are parameters to change here and there, but really no one knows exactly how this extremely convincing language sausage is being made.

It’s one thing to not know when an AI model is generating poetry, quite another when the model is watching a department store for suspicious behavior, or fetching legal precedents for a judge about to pass down a sentence. Today the general rule is: the more powerful the system, the harder it is to explain its actions. That’s not exactly a good trend.

“Large, general systems of today can have significant benefits, but can also be unpredictable, unreliable, and opaque: our goal is to make progress on these issues,” reads the company’s self-description. “For now, we’re primarily focused on research towards these goals; down the road, we foresee many opportunities for our work to create value commercially and for public benefit.”

The goal seems to be to integrate safety principles into the existing priority system of AI development that generally favors efficiency and power. Like any other industry, it’s easier and more effective to incorporate something from the beginning than to bolt it on at the end. Attempting to make some of the biggest models out there able to be picked apart and understood may be more work than building them in the first place. Anthropic seems to be starting fresh.

“Anthropic’s goal is to make the fundamental research advances that will let us build more capable, general, and reliable AI systems, then deploy these systems in a way that benefits people,” said Dario Amodei, CEO of the new venture, in a short post announcing the company and its $124 million in funding.

That funding, by the way, is as star-studded as you might expect. It was led by Skype co-founder Jaan Tallinn, and included James McClave, Dustin Moskovitz, Eric Schmidt and the Center for Emerging Risk Research, among others.

The company is a public benefit corporation, and the plan for now, as the limited information on the site suggests, is to remain heads-down on researching these fundamental questions of how to make large models more tractable and interpretable. We can expect more information later this year, perhaps, as the mission and team coalesces and initial results pan out.

The name, incidentally, is adjacent to anthropocentric, and concerns relevancy to human experience or existence. Perhaps it derives from the “Anthropic principle,” the notion that intelligent life is possible in the universe because… well, we’re here. If intelligence is inevitable under the right conditions, the company just has to create those conditions.



Scott Wilder of HubSpot: Community Engagement is Playing a Tremendous Role in Digital Transformation Efforts

scott-wilder

I’ve known Scott Wilder for well fifteen years or so. And in that time (and even before that) he has led community-building efforts at big tech brands like Adobe, Apple, Google, Intuit and Marketo.  And now he’s heading up HubSpot’s engagement and community-building efforts.

Earlier this week Scott and I had a LinkedIn Live conversation on how community building has evolved over the years, it’s a role in digital transformation efforts, and how it will need to be done in a post-pandemic world in order to stay in tune with rapidly evolving customer needs and expectations.

Below is an edited transcript of a portion of our conversation.  Click on the embedded SoundCloud player to hear the full conversation.

Small Business Trends: What have been some of the biggest, more meaningful changes to building communities over the years? 

Scott Wilder: I think a lot of the core principles are the same. What’s changed is right now at this moment because of the pandemic, because of the creator economy, communities become more in the spotlight. They’re not at the C level table yet, but they’re definitely getting a strong voice. And then I think the second thing that’s changed is more and more people are leaning into analytics and the ROI. Secondly, I think people are leaning into thinking of community almost like as a product, how it’s integrated and embedded into the whole customer experience.

Then I think the last thing would be a lot of companies are thinking about becoming a media company, and we can talk more about that later on. And so what role does community play in that? By the end of the day, the principles are the same, trust the customer, give them a seat at the table when you’re co-creating, engagement is important but relying on the community to respond, user-created content. Audio, audio is new as well, but some would argue that Discords has been around for a little bit, so audio’s been around.

Small Business Trends: What role does community and development of communities play in digital transformation and has the pandemic changed the definition or did it change the role that community plays in digital transformation? 

Scott Wilder: So community plays a tremendous role because it’s a great opportunity to get customer feedback. It’s a great opportunity to co-create, how many times… I’m a corporate guy. I know you’re in a different space, but how many times in the corporate world have we sat at the table, sat at a whiteboard, knocked out the customer journey, but there’s no customers in the room. Right?

Small Business Trends: Yeah. 

Scott Wilder: I was saying earlier to somebody that in my staff meetings we used to first put an empty seat at the table for the customer, and then we just invited customers. But there’s so many times you’re mapping it out, so how can you do this digital transformation without customers. And a great way to access the wisdom of the crowd in an older term, a great way to access it is through community.

So I think that’s kind of two key things. And then the pandemic, it’s interesting because the pandemic has accelerated a lot of things, virtual events, et cetera, et cetera, but we’re also kind of seeing a rebalancing right now. What I’m saying is that, what I mean is that Clubhouse has seen a slight decline in engagement, right? So people leaned in so much because they had to, and they really wanted to reach out to folks and community and online events. It’s great to do that, but now in terms of digital transformation, it’s kind of like we’re stepping back and kind of reevaluating that thing called offline as well because that can play a role in this whole kind of evolving experience.

Small Business Trends: Are you starting to see as companies make a shift to a subscription model, they do focus more on a community to help them with a churn situation?

Scott Wilder: I think it’s with churn, but also to maximize those dollars from company or from a customer as well. Right? I’ll call it above the line. So above a line is maximizing the revenue that’s generated. And so community could be introducing people to other services you have, other products you have. Our product portfolio is increasing pretty rapidly. And then obviously there’s below the line that everybody talks about in terms of support, deflection. We obviously look at churn. And so going into your point about churn, you might say that we’ll look at churn in terms of-. Our customers that are churning in the relationship in community, or we’ll look at customers who potentially could churn and see what they’re doing out of community. And then we can also say that if somebody comes into the community and they’re using say our marketing hub, but they’re kind of talking to other customers about the support hub or the service hub, that’s an opportunity for a cross sell.

Small Business Trends: A lot of companies start communities with specific ulterior motives in trying to drive the community to do certain things that the company wants instead of building a space for community to actually organically share the thoughts and concerns that are important to them. And so how does a vendor go about making sure that they act with the community at the center as opposed to what the company wants to get from the community?

Scott Wilder: That’s a great question. I think it starts at the top and really the community leaders have to work with the C level to say, if you give customers room to talk about what’s important to them and have them help each other, then everybody’s going to benefit from that. So you need a strong leader who realizes that you really do need to be customer first. And it’s not easy. As I go through my journey, some companies have done a better job. There’s one company I worked with in the past where to be transparent, one of the reasons I moved on is because all of a sudden they wanted to start selling off the community. Right? So that wasn’t really in the spirit of getting people together, like-minded people and having them interact with each other and help each other grow. 

Small Business Trends: There’s so many different ways to get people’s attention. Is it harder today to build a community and keep people engaged now than it was back in the day 10, 12, 15 years ago?

Scott Wilder: So back in the day it was harder to get resources for community, right? Now you get the resources, but to your point, there’s definitely more noise, right? Out there. And so then you need to think through, are you going to take kind of a hub and spoke model of trying to participate in those other communities or other social networks and bring people to this site. You need to think through your strategy for that, but there’s definitely a lot of noise. And so then the question is, what is the added value? And so in HubSpot’s case, we have the academy, we get to think through about how we integrate educational content. And I know there’s just the comment about education there. So thinking about education content, thinking about what other kinds of media that you can bring to the table as well.

It’s definitely a lot of noise. You just have to say this is going to be a place where you can interact with people who are dealing with the same sort of problems in a secure environment. That’s the other thing, too, right? At the end of the day people are still going to Facebook, but there’s definitely skepticism out there about how safe my information is. Also in this industry trend, I believe it’s a trend, is these like-minded people want to gather in smaller groups, right? Instead of having this huge discussion on Facebook, there’s actually a trend celebrated maybe by the pandemic of smaller groups, maybe a 100, 200 people getting together in these spaces. And so a lot of these community platforms really optimize for that, so.

Small Business Trends: So you talked about how you’re liking the, I don’t like the term social audio, I actually like how Clubhouse calls it drop-in audio.

Scott Wilder: Drop-in.

Small Business Trends: So it sounds like you like that. What about video? What about streaming? Where does that fit into the mix of tools?

Scott Wilder: It’s a great point because I feel like we always forget video. There are so many SEO folks I work with and it’s all Google, Google, Google, and then you’re like, “Well, what about YouTube?” Right? So I think video, yeah. It’s a great point. I think video doesn’t get enough of the focus. And I’m not sure exactly why that is. I don’t claim to have all the answers, but people leaned into text, but this is obviously a whole generation that there’s a lot of video and video on their phone, et cetera, things like that. So I think yeah, you’re right on video is a huge opportunity. I mean, it’s great to see this on LinkedIn and maybe Facebook. I expect a big wave of people doing videos on LinkedIn. It’s kind of like all of a sudden LinkedIn must have highlighted their poll functionality, so right now everybody’s doing polls. So I would love to see people learn in more with video. I think it’s a huge opportunity.

Small Business Trends: I think it’s like… not just like what we’re doing here, but even Tik Tok, I mean the growth of Tik Tok with videos. I’m hearing people in the AARP crowd working at enterprises talking about, how do we figure out how to integrate Tik Tok into our engagement strategies? Twitch.

Scott Wilder: Yeah. 

Small Business Trends: I mean, it’s pretty amazing what’s going on. And a lot of that is video-driven. Although I think you’re right, it seems like the focus from most of the business side is on this drop-in audio, which I guess, is easier to do. And you can do a lot of it, you’ll just have a phone and you’re talking into it. But it seems like there’s a lot of stickier engagement from video and it’s not just live stream, it could be the short-form videos that go up. I mean, even on the stuff I do, a two-minute clip can get over 20 hours of total viewing minutes in some of this stuff on a business social network versus let alone what’s going on YouTube and Tik Tok and things like that.

Scott Wilder: Yeah, no, exactly. We had some success with this when I worked at Marketo of having user-created videos on the branded community. But if you go to all these branded communities and I feel like a mind sweep where every night I go to 10 and to look at what’s going on there. Very, very small percentage is video. So I think how to, especially in a, I’m in the software business, I grew up on highway 101 in Silicon Valley with working with tech companies. So many how-to’s and demos can be done with video. Right? But instead, we have people who are hammering on the keyboards, right? In these long explanations. So it could be just how people across [inaudible 00:12:49] information, hopefully, that will, or that will probably change over time. This younger world comes up and is more comfortable with creating videos.

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This article, "Scott Wilder of HubSpot: Community Engagement is Playing a Tremendous Role in Digital Transformation Efforts" was first published on Small Business Trends



In the News: Small Businesses Expect Revenue Growth in 2021

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Slowly but surely people are going out and about as increasing numbers of the population are getting vaccinated. And this will eventually improve the revenue of many small businesses. Bank of America’s 2021 Small Business Owner Report has revealed 60% of small businesses agree with that sentiment, stating they expect their revenue to grow in 2021.

In this week’s roundup, 60% of Small Businesses Expect Revenue to Grow in 2021 is the article that takes a look at the optimism small business owners are feeling as the pandemic begins to die out. According to the BofA report, business owners feel the local and national economy will improve along with the revenue increase. And 21% of them also say they plan on hiring new people in the coming 12 months.  The report goes on to reveal small businesses transitioned to digital solutions and used different funding sources to stay afloat during the pandemic.

This week we also take a look at the rising healthcare cost and how it has slowed small business growth, the high cost of cyberattacks on small businesses, and things you should know about your remote workforce.

Small Business News Roundup – May 28, 2021

Here are some more stories making news this week:

Rising Healthcare Cost Blamed for Slowed Small Business Growth

89% of small businesses believe the cost of prescription drugs is too high. 55% of small businesses providing healthcare coverage to employees say rising costs are hindering opportunities for growth. 63% of small business owners have an unfavorable view of pharmaceutical companies.

The Average Cost of a Cyber Attack on a Small Business is More than $25,000

When it comes to cyberattacks, small business doesn’t mean small costs. Over the past 12 months, the average financial cost of cyber attacks on a small US business is £25,612. This statistic was unveiled by the Hiscox Cyber Readiness Report 2021.

Schedule Breaks from Work? There’s a Good Chance You Get Interrupted Anyway

When working remotely and having to manage your own time, it is not uncommon for breaks to be overlooked. A new survey by the online scheduling platform Doodle confirms the US workforce’s collective neglect of breaks. 72% of US employees admit to feeling less burnt out by blocking their calendars.

Zoho CRM: From Post-It-Notes to High Level Service

Premier Ophthalmic has been providing equipment sales and service to optometry offices for more than 20 years. It was around this same time that Zoho began to take shape. And the two companies’ journeys have intersected for more than a decade.

What Types of Businesses Should be LLCs?

When you first start a business, part of the process typically involves choosing a corporate structure. As you begin reviewing your options, you’ll quickly learn there are many from which to choose. It’s important to conduct thorough research and carefully consider your goals when deciding which structure is ideal for your business.

Why You Are So Afraid to Negotiate

I am constantly surprised how in small business, so many people are afraid to negotiate almost anything. This can include situations that range from a customer’s purchase price, a lease rate for their office or any employee compensation. Many leaders see negotiation as a form of conflict and seek to avoid it at all costs.

5 Things to Know about Your Remote Workforce

The pandemic forced many businesses to require their staff to work from home.  Now that the economy is opening up, businesses are deciding whether to retain remote work arrangements. A PwC survey found that 55% of employees expect to continue working from home even after the pandemic passes. In making the decision, employers should keep the following factors in mind.

Image: Depositphotos

This article, "In the News: Small Businesses Expect Revenue Growth in 2021" was first published on Small Business Trends



Wonderschool’s Chris Bennett and investor Marlon Nichols will break down the path to seed-stage funding

Extra Crunch Live is all about helping founders build better venture-backed businesses. Naturally, we do this by having candid conversations with founders and their investors.

On an upcoming episode of Extra Crunch Live, we’ll sit down with MaC Venture Capital founding managing partner Marlon Nichols and Wonderschool co-founder and CEO Chris Bennett. REGISTER HERE FOR FREE!

Not only will we discuss how they came together for Wonderschool’s seed round in 2017, but how that translated into what has become a total of $24 million in funding from VCs like a16z and First Round Capital.

We’ll also host the Extra Crunch Live Pitch-off, where folks in the audience can pitch their startup to Nichols and Bennett to get their live feedback.

Nichols is a former Kauffman Fellow and Investment Director at Intel Capital. His portfolio includes Gimlet Media, MongoDB, Thrive Market, PlayVS, Fair, LISNR, Mayvenn, Blavity and Wonderschool. Nichols knows more than most of us will ever learn about seed-stage fundraising, and even gave a chat at TechCrunch Early Stage in April that outlines four strategies for securing seed funding.

We’ll get even deeper on that subject with Nichols, and hear the perspective from the other side of the table with Bennett.

Wonderschool is a network of early childhood programs that combine the quality of top-notch early education with an in-home setting.

Bennett can talk extensively on edtech as a sector, and we’ll pick both his and Nichols’ mind on that fast-growing space.

Don’t forget that this episode will feature an Extra Crunch Live Pitch-off, so founders in the audience should be ready to “raise their hand” and get in the mix.

The episode goes down on Wednesday, June 16 at 3 p.m. ET/noon PT. Extra Crunch Live is accessible to anyone who wants to attend, but on-demand access to the content, including the entire library of ECL episodes, is reserved exclusively for Extra Crunch members. Join now to check out what Aileen Lee, Roelof Botha, Mark Cuban and more had to say on earlier episodes of ECL. 

You can register for this episode of Extra Crunch Live, with MaC Venture Capital and Wonderschool, right here.



Goldman Sachs leads $45M investment into auto fintech startup MotoRefi

MotoRefi has raised another $45 million in a round led by Goldman Sachs just five months after investors poured $10 million into the fintech startup to help turbocharge its auto refinancing business.

The startup developed an auto refinancing platform that handles the entire loan process, including finding the best rates, paying off the old lender and re-titling the vehicle. MotoRefi says using its platform saves consumers an average of $100 a month on their car payments, a goal achieved partly because it works directly with lending institutions. The company’s refinancing tools had seen steady growth until the COVID-19 pandemic popped into in higher gear. CEO Kevin Bennett said MotoRefi is on track to issue $1 billion in loans by the end of the year, a fivefold increase from the same period last year.

Bennett said the short timeline between rounds was driven by investor confidence in its metrics, which have continued on to grow at a fast pace, and the basic economics around the business.

“We candidly weren’t planning on raising yet, but they (Goldman Sachs) were comfortable given the relationship we have built and the track record and success of the business, to preempt the round and move that calendar up,” Bennett said.

MotoRefi’s platform is available in 46 states and Washington, DC, with plans to be live in all 50 states by the end of the year. The startup has ramped up hiring to help support that growth. By the first quarter of 2021, it had more than doubled its headcount to 187 employees from the same period last year. Its workforce has now popped to 250 employees. The company has hired several senior-level executives, opened a new headquarters and partnered with SoFi. Goldman Sach’s VP of venture capital and growth equity Jade Mandel has joined MotoRefi’s board.

And Bennett sees plenty of room to grow as consumers seek ways to rebalance their debts. The auto refinance market in the United States is $40 billion. However, overall auto loan debt is $1.3 trillion. With 40 million auto loans originated every year, MotoRefi is promised a consistent flow of potential new customers.

The fresh injection of capital, which included investor IA Capital as well as returning backers Moderne Ventures, Accomplice, Link Ventures, Motley Fool Ventures and CMFG Ventures, will be used to continue to build out its products and services and hire more people. MotoRefi has raised $60 million since its inception in 2016.

Bennett believes the company is now in self-sustaining position.

“Thankfully, we moved beyond the world where we are raising capital and then raising more capital as we run out of capital,” he said. “I think we have a great sustainable business and so we, in some sense runway is infinite, and we are building a great profitable business. That’s not to say that we won’t ever raise again, but it will be based on strategic considerations, as opposed to out of necessity.”



Doximity’s S-1 may explain why healthcare exits are heating up

There was a time when this column was more than a never-ending run of IPO coverage. Then the unicorn liquidity cycle kicked off and it’s been a long run of public offerings ever since. This morning is no exception.

Doximity filed to go public earlier today. You likely haven’t heard of the company because it exists in the modestly obscure world of telehealth. But it’s a venture-backed startup all the same that raised more than $80 million from investors like Emergence, InterWest Partners, Morgenthaler Ventures and Threshold, according to Crunchbase data.

Notably, Doximity has not fundraised since 2014, a year in which it attracted just under $82 million at a valuation of $355 million, per PitchBook data. How has it managed to not raise for so long? By generating lots of cash and profit over the years. Healthtech communications, it turns out, can be a lucrative endeavor.


The Exchange explores startups, markets and money. 

Read it every morning on Extra Crunch or get The Exchange newsletter every Saturday.


Doximity is a social network that allows doctors to speak to each other while complying with HIPAA, a federal law that promotes medical privacy. The network, originally defined as a LinkedIn for medical professionals, gives doctors a Rolodex for specialists, a newsfeed for healthcare updates, a communication tool to talk to patients, and a job search tool.

In 2017, Doximity claimed that it reached 70% of all U.S. doctors, more than 800,000 licensed professionals.

This is CEO Jeff Tangney’s second time bringing a healthtech company public after his previous medical software startup, Epocrates, debuted in 2011.

Let’s chat briefly about the larger healthtech exit market and then dig into Doximity’s IPO filing and get our heads around how the company managed to avoid private-market dilution for seven years — and what the company may be worth.

Healthtech exits

The global digital health market is estimated to hit $221 billion by 2026, underscoring how large an opportunity the sector may present to venture capitalists. But investors aren’t merely just paying attention to estimates; they are seeing a number of exits in digital health (read: liquidity) that are warming up their checkbooks.

CB Insights estimates that there were 79 healthcare IPOs and M&A transactions in Q1 2021 alone, a 60% increase from the quarter prior. Another report says that there were 145 acquisitions of digital health companies in 2020, up from a solid 113 in 2019.

While still growing, it’s fair to say that those figures describe a healthy exit environment.

The list of deals in the market is rapid-fire. Earlier this year, Everlywell, founded in 2015, acquired two healthcare companies to expand its digital health service and distribution. Last week, Modern Fertility was bought by Ro for north of $225 million in a majority-equity deal. Before you start complaining that it’s not an IPO, consider this: A less than four-year-old company just got bought for a quarter of a billion dollars by another company that is less than four years old.



The SPAC trash ticker is counting down

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

This week had the whole crew aboard to record: Grace and Chris making us sound good, Danny to provide levity, Natasha to actually recall facts, and Alex to divert us from staying on topic. It’s teamwork, people – and our transitions are proof of it.

And it’s good that we had everyone around the virtual table as there was quite a lot to get through:

  • Team felt all kinds of ways about the Amazon-MGM deal. Some of us are more positive about than the rest, but what gists out from the transaction is that for Amazon, the purchase price is modest and the company is famously playing a supposedly long-game. Let’s see how James Bond fits into it. Alex receives four points for not bringing up F1 thanks to the Bond-Aston Martin connection.
  • Turning to the SPAC game, we chatted through the recent Lordstown Motors earnings results, and what we can parse from them regarding blank-check companies, promises, and reality.
  • After launching last June with just $2 million, Collab Capital has closed its debut fund at its target goal: $50 million. The Black-led firm invests exclusively in Black-led startups, and got checks from Apple, PayPal, and Mailchimp to name a few. We talk about this feat, and note a few other Black-led venture capital firms making waves in the industry lately.
  • We Resolved our transition puns and eventually spoke about the Affirm spin-out, which raised $60 million in a funding round for BNPL for businesses. There’s bigger questions there around the accessibility and point of BNPL, and if its really re-inventing the wheel or just repackaging it with simpler UX.
  • Next up, we got into a can of worms about the future of meetings thanks to Rewatch, which raised a $20 million Series A this week led by Andreessen Horowitz. The startup helps other startups create internal, private Youtubes to archive their meetings and any video-based comms. We could only spend a second on this, so if you want our longer thoughts in the form of text, check out our 3 views on the topic on Extra Crunch! (Discount Code: Equity)
  • From there we had Interactio and Fireflies.ai, two more startups that are tackling the complexities of meetings in the COVID-19 era, and whatever comes next. Both recently raised new funding, and Alex brought up Kudo to add one more upstart to the mix.
  • Noom, a weight loss platform, bulked up with $540 million in funding after nearly doubling its revenue from 2019 to 2020. The pandemic has made many people gain weight, but we chew into why Noom’s moment might be right now after a decade in the works.

Thanks for hanging out this week, Equity is back on Tuesday with our usual weekly kickoff, thanks to the American holiday on Monday. Chat then, unless you want to follow us on Twitter and get a first-look at all of Chris’ meme work. 

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



Company Retreats are Like the Mullets of Office Meetings

office retreat business cartoon

This article, "Company Retreats are Like the Mullets of Office Meetings" was first published on Small Business Trends



Café helps hybrid organizations schedule in-office time

Meet Café, a new French startup founded by two brothers that wants to help companies switch to a hybrid remote-and-office workplace model. Café isn’t a traditional desk-booking tool. Instead, the company helps you see when people in your team are coming to the office so that you can plan when you should go to the office as well.

Instead of focusing on workspace, Café focuses on people first. “We decided that we wouldn’t let you book a desk directly,” co-founder and CTO Arthur Lorotte de Banes told me.

When you open the app, you get a simplified calendar view. For each day, you can see your team members divided by groups — people coming to the office, people working from home, etc.

In just a few taps, you can tell your other coworkers what you plan to do. This way, it becomes much easier to schedule meetings, have in-person conversation and more generally hang out with your coworkers. It also makes it easier to find a common day with a specific coworker if you’re working on the same project.

“We interviewed 150 companies and we realized companies faced the same issue after interviewing the first five companies. They all use spreadsheets,” co-founder and CEO Tom Nguyen told me.

Image Credits: Café

Using a tool like Café also gives you insights about your office. For instance, you can see the average number of persons in your office depending on the day of the week or the day of the month. Admins can configure a weekly reminder to make sure that everybody fills out information.

In addition to its mobile app and web app, Café integrates with your existing tools. For instance, you can connect your Café account with Slack so that your status on Slack reflects your status in Café. Teammates can hover over your name to know that you’re in the office or you’re at home.

The company is also working on integrations with human resource information systems, such as PayFit, so that your vacation is automatically synchronized with Café.

Image Credits: Café

As companies start hashing out a plan to return to the office, Café arrives on the market at the right time. Companies can create custom statuses to fit their specific needs. For instance, a Café customer has created a status so that they know who has the office keys to make sure that the office remains open.

The company raised a $1 million seed round from 122West, Kima Ventures, Jonathan Widawski, Guillaume Lestrade, Jacques-Edouard Sabatier and various business angels who work or have worked for WeWork, Dropbox, Github, Snapchat, Intercom, Stripe, Alan and PayFit.

Like Typeform, Doodle or Slido, Café has chosen a freemium strategy. Teams can sign up for free and start using the product with their immediate coworkers. You don’t need to enter card information to sign up.

If you want to roll it out across the organization with more users, you have to start paying. The startup believes employees will become product advocates for the entire organization. And it seems like the right strategy for a product that is supposed to make employees happier at work.



Brazilian proptech startup QuintoAndar lands $300M at a $4B valuation

Fintech and proptech are two sectors that are seeing exploding growth in Latin America, as financial services and real estate are two categories in particular dire need of innovation in a region.

Brazil’s QuintoAndar, which has developed a real estate marketplace focused on rentals and sales, has seen impressive growth in recent years. And today, the São Paulo-based proptech has announced it has closed on $300 million in a Series E round of funding that values it at an impressive $4 billion.

The round is notable for a few reasons. For one, the valuation – high by any standards but especially for a LatAm company – represents an increase of four times from when QuintoAndar raised a $250 million Series D in September 2019.

It’s also noteworthy who is backing the company. Silicon Valley-based Ribbit Capital led its Series E financing, which also included participation from SoftBank’s LatAm-focused Innovation Fund, LTS, Maverik, Alta Park, an undisclosed US-based asset manager fund with over $2 trillion in AUM, Kaszek Ventures, Dragoneer and Accel partner Kevin Efrusy.

Having backed the likes of Coinbase, Robinhood and CreditKarma, Ribbit Capital has historically focused on early-stage investments in the fintech space. Its bet on QuintoAndar represents clear faith in what the company is building, as well as its confidence in the startup’s plans to branch out from its current model into a one-stop real estate shop that also offers mortgage, title, insurance and escrow services.

The latest round brings QuintoAndar’s total raised since its 2013 inception to $635 million.

Ribbit Capital Partner Nick Huber said Quintoandar has over the years built “a unique and trusted brand in Brazil” for those looking for a place to call home.

“Whether you are looking to buy or to rent, QuintoAndar can support customers through the entire transaction process: from browsing verified inventory to signing the final contracts,” Huber told TechCrunch. “The ability to serve customers’ needs through each phase of life and to do so from start to finish is a unique capability, both in Brazil and around the world.”

QuintoAndar describes itself as an “end-to-end solution for long-term rentals” that, among other things, connects potential tenants to landlords and vice versa. Last year, it expanded also into connecting a home buyers to sellers.

Image Credits: QuintoAndar

TechCrunch spoke with co-founder and CEO Gabriel Braga and he shared details around the growth that has attracted such a bevy of high-profile investors.

Like most other businesses around the world, QuintoAndar braced itself for the worst when the COVID-19 pandemic hit last year – especially considering one core piece of its business is to guarantee rents to the landlords on its platform.

“In the beginning, we were afraid of the implications of the crisis but we were able to honor our commitments,” Braga said. “In retrospect, the pandemic was a big test for our business model and it has validated the strength and defensibility of our binsess on the credit side and reinforced our value proposition to tenants and landlords. So after the initial scary moments, we actually felt even more confident in the business that we are building.”

QuintoAndar describes itself as “a distant market leader” with more than 100,000 rentals under management and about 10,000 new rentals per month. Its rental platform is live in 40 cities across Brazil, while its homebuying marketplace is live in 4. Part of its plans with the new capital is to expand into new markets within Brazil, as well as in Latin America as a whole.

The startup claims that, in less than a year, QuintoAndar managed to aggregate the largest inventory among digital transactional platforms. It now offers more than 60,000 properties for sale across Sao Paulo, Rio de Janeiro, Belho Horizonte and Porto Alegre. To give greater context around the company’s growth of that side of its platform: in its first year of operation, QuintoAndar closed more than 1,000 transactions. It has now surpassed the mark of 8,000 transactions in annualized terms, growing between 50% and 100% quarter over quarter.

As for the rentals side of its business, Braga said QuintoAndar has more than 100,000 rentals under management and is closing about 10,000 new rentals per month. The company is not profitable as it’s focused on growth, although it is unit economics are particularly favorable in certain markets such as Sao Paulo, which is financing some of its growth in other cities, according to Braga.

Now, the 2,000-person company is looking to begin its global expansion with plans to enter the Mexican market later this year. With that, Braga said QuintoAndar is looking to hire “top-tier” talent from all over.

“We want to invest a lot in our product and tech core,” he said. “So we’re trying to bring in more senior people from abroad, on a global basis.”

Some history

CEO Braga and CTO André Penha came up with the idea for QuintoAndar after receiving their MBAs at Stanford University. As many startups do, the company was founded out of Braga’s personal “nightmare” of an experience – in this case, of trying to rent an apartment in Sao Paulo.

The search process, he recalls, was difficult as there was not enough information available online and renters were forced to provide a guarantor, or co-signer, from the same city or pay rent insurance, which Braga described as “very expensive.”

“Overall, I felt it was a very inefficient and fragmented process with no transparency or tech,” Braga told me at the time of the company’s last raise. “There was all this friction and high cost involved, just real tangible problems to solve.”

The concept for QuintoAndar (which can be translated literally to “Fifth Floor” in Portuguese) was born.

“Little by little, we created a platform that consolidated supply and inventory in a uniform way,” Braga said.

The company took the search phase online for the first time, according to Braga. It also eliminated the need for tenants to provide a guarantor, thereby saving them money. On the other side, QuintoAndar also works to help protect the landlord with the guarantee that they will get their rent “on time every month,” Braga said.

It’s been interesting watching the company evolve and grow over time, just as it’s been fascinating seeing the region’s startup scene mature and shine in recent years.