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    Tech News

    Verizon lights up 5G in (parts of) NYC

    September 26, 2019

    Verizon this week announced that it has finally begun to flip the switch on its 5G network in parts of New York City, along with Panama City and Boise. That brings the wireless carrier’s (disclosure: also TechCrunch’s parent) totally number up to 13 cities with a taste of the next-gen network.

    Here in NYC, 5G will touch three of the five boroughs (my home base of Queens, sadly, is not among them). Manhattan and downtown Brooklyn are, not surprisingly, the first focus of coverage. Here’s the specific breakdown per VZW:

    • Manhattan: Midtown, Financial District, Harlem, East Harlem, Hell’s Kitchen and Washington Heights
    • Brooklyn: Downtown Brooklyn
    • The Bronx: Pelham Bay, Fordham Heights and Hunt’s Point
    • Around Landmarks: Bryant Park, St. Patrick’s Cathedral, Madison Square Garden, Trinity Park (Brooklyn), the Lincoln Tunnel (Manhattan Entrance), Javits Center on 11th Ave between 36th and 37th and the Theatre District on Broadway between 49th and 52nd

    The network is similarly limited to specific neighborhoods in Panama City and Boise, as well. AT&T rolled out its own limited 5G coverage in the Big Apple back in August. I’ve been carrying around a 5G AT&T phone for a few days now and it brings to mind the early days of LTE. The 5G marker pops up on the phone for a fleeting bit in the most surprising places.

    Until rollout is wider, however, it’s probably not worth the extra money for most folks. Verizon says it plans to have the service in (parts of) 30 cities by end of year.

    Source: Tech Crunch Mobiles | Verizon lights up 5G in (parts of) NYC

    Startups

    Tribe leads $12M Series A into Teampay to make managing employee expenses painless

    September 26, 2019

    The modern office worker is heavily engaged with expenses. From buying SaaS products and purchasing team lunches to securing freelancers for outsourced work, employees need access to purchasing power on behalf of their companies on a regular basis.

    Unfortunately, offering that purchasing power is fraught with difficulty. Companies want to manage their cash carefully to ensure audit compliance and prevent fraud, which often means that rather than empowering employees to spend what they need, they force them to work with byzantine “p-card” rules to make anything happen.

    Teampay wants to change that calculus by giving every employee a beautiful platform to buy the goods, tools, and services they need while keeping them within defined company policy.

    The New York City-based startup announced today that it raised a $12 million series A round from Jonathan Hsu of Tribe Capital . Existing investors Crosscut, Silicon Valley Bank, and Charles Hudson of Precursor Ventures also participated.

    When I chatted with the company last year, founder and CEO Andrew Hoag had just locked in a $4 million seed round and had recently launched the platform. Since then, “We brought in our first sales reps, brought in one marketing hire, and we’re growing by double digit percentages, month-over-month in 2018,” Hoag said.

    He noted that Teampay has been carefully refining its pitch to customers. “Even comparing 2018 to 2019, I think we spend — no pun intended — a lot more time working with our customers on solutions, as opposed to talking now about the pain points, because they’re hyper aware of those pain points,” he said.

    What Teampay discovered is that while the pain point for organizations is the actual purchase of a particular good or service, what companies are really looking for is better tools to manage expenses across the board, or what Hoag calls “distributed spend management.”

    That includes the challenges of managing spend even outside of a company’s walls. With more and more businesses hiring freelancers these days, it can be challenging to offer contingent workers access to spending power without onerous bureaucratic systems that ultimately cost more in lost salary and productivity than savings in cost management.

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    Teampay founder and CEO Andrew Hoag. Photo via Teampay.

    In addition to hiring in sales and engineering, Teampay has also hired several senior executives over the past year. Peter Nesbitt joined as VP of Finance, and was formerly VP of Finance at Unified and director of finance at Bitly. Nicole Lindenbaum joined as VP of Marketing from PeopleDoc and Yodle, while Matt Petcoff joined as head of sales from Inturn and Movable Ink.

    Spend management has heated up acutely in the past year, with Brex reaching unicorn status with its now ubiquitous cards targeting startups and Stripe announcing its Stripe Corporate Card along a similar vein.

    Hoag emphasized that Teampay targets a different problem in several ways. First, “We don’t require a customer to switch their card program in order to be able to use Teampay,” he explained. Instead, Teampay acts as a sort of collaboration software layer on top of the existing card infrastructure that a company has to better manage spend across the organization.

    Second, Teampay doesn’t focus on startups so much as larger enterprises where the needs around spend are different and more complicated. “Most of our customers are fairly large, and they have strong balance sheets,” Hoag said. “And so they’re not looking to optimize for working capital, they don’t have a problem of getting access to credit, they have a problem about controlling credit.”

    The company noted that it has customers like Wistia, Chime, Mixpanel, and RiskIQ using the platform.

    Hoag’s goal for the new round of capital is to continue to expand Teampay’s partnerships and integrations (for instance, expanding Teampay to work in concert with IT ticketing systems to make software and hardware procurement easier) as well as increasing sales and marketing. The company was founded in 2016.


    Source: Tech Crunch Startups | Tribe leads M Series A into Teampay to make managing employee expenses painless

    Startups

    Nigeria’s CcHub acquires Kenya’s iHub to create mega Africa incubator

    September 26, 2019

    Two of Africa’s powerhouse tech incubators will join forces. Nigerian innovation center and seed-fund CcHub has acquired Nairobi based iHub, CcHub CEO Bosun Tijani confirmed to TechCrunch.

    The purchase amount is undisclosed, but Tijani said CcHub will finance the deal out of its real-estate project to build a new 10-story innovation center to replace its Herbert Macaulay Way building in Lagos.

    Details are emerging on how the two entities will operate together, but Tijani noted some degree of autonomy.

    “The names will stay the same…iHub will remain iHub…it is a strong brand…but iHub will be supported from the central CcHub, which will help them strengthen what they do,” he said.

    Per the acquisition, Tijani becomes CEO of both organizations, while Nekesa Were continues as iHub managing director. And iHub’s existing programs will remain, according to Tijani, but CcHub will extend to Kenya some of its existing activities in education, healthcare and governance.

    CcHub will also use the iHub addition to expand its investment scope. “We’ll now have access to pipeline in Nigeria, Kenya and Rwanda,” he said.

    Tijani views the arrangement as a boost to the continent’s tech ecosystem. “It strengthens our ability to support innovation. iHub and CcHub…coming together makes us stronger; it gives us a chance to attract greater resources and talent,” he said.

    The acquisition joins two of the Africa’s most recognized tech hubs. These innovation spaces, accelerators and incubators — which tally 618 per GSMA stats — have become focal points for startup formation, training and IT activity on the continent.

    There aren’t official rankings for Africa’s most powerful tech hubs, but if there were, CcHub and iHub would arguably be up top. This would be based on the size of their membership networks, volume of tech-related programs, startups incubated, partnerships and global visibility.

    Founded in 2011 in Lagos’ tech-synonymous Yaba suburb, the Co-Creation Hub has grown into a multi-faceted innovation center. The organization manages digital skills programs for entrepreneurs and school kids, startup incubation and a portfolio of investments through its Growth Capital Fund.

    CcHub is considered a go-to spot for any tech-related visit to Nigeria. It was Mark Zuckerberg’s first public stop on his 2016 Africa trip. While leaving a CcHub event in 2018, I noticed the vice president of Nigeria, Yemi Osinbajo, and his entourage packing into the elevator.

    Tijani and team have mastered gaining partnerships with big global tech names. When Facebook launched its tech space in Nigeria — NG_Hub — CcHub was named lead partner. Google for Startups sponsored CcHub’s Pitch Drive, an African startup tour to Europe and Asia. CcHub also collaborated with the government of Rwanda this year to open its Design Lab in Kigali, focused on innovating impact solutions in health, education and governance.

    The Design Lab launch extended CcHub’s West Africa reach further east and closer to iHub. The innovation center was co-founded by Erik Hersman in 2010 out of what he saw as a need in Africa’s emerging tech scene “for…creating community spaces…in major cities [for] young entrepreneurs. The nexus point for technologists, investors, [and] tech companies.”

    iHub became that central spot in East Africa. Along with M-Pesa mobile-money and a vibrant startup scene, it is one of the pillars that inspired Kenya’s Silicon Savannah moniker.

    iHub is also widely seen as giving rise to the Africa’s innovation center movement that inspired the upsurge in tech hubs across the continent.

    Since 2010, 170 companies have formed out of iHub. It has 16,000 members and has played host to most major visitors to Kenya’s tech scene. After seeing CcHub in Nigeria in 2016, Zuck then headed to Kenya and toured iHub.

    There’ll be plenty for continuing coverage on how these two prominent African incubators settle into becoming one big Africa mega-hub. That includes the sustainability question and what this all means to the continent’s startup scene.

    At a high level, for now, the CcHub-iHub union creates a direct innovation link between two of Africa’s most active markets for VC and startup formation — Nigeria and Kenya.

    In the past, both countries’ techies have shared a healthy rivalry. That could now turn to more collaborations, as CcHub’s acquisition connects East and West in African tech.

     

     

     


    Source: Tech Crunch Startups | Nigeria’s CcHub acquires Kenya’s iHub to create mega Africa incubator

    Startups

    Paro raises $10 million to offer corporate finance expertise on demand

    September 26, 2019

    As any CFO can attest, corporate finance is extraordinarily complicated. From tax preparation, to financial controls, to cash flow estimation and more, the finance department of any major company often has to turnaround sophisticated analyses with extreme attention to detail — and quick.

    Most of the time, businesses outsource at least part of those financial functions to the big four accounting firms or to smaller firms, but as with all consulting firms, getting contracts signed and work underway can take significant time and effort.

    That’s where Paro comes in. The Chicago-based expert marketplace wants to provide corporate clients with on-demand sophisticated expertise across a range of financial functions.

    The company announced today that it has raised a $10 million series “A” venture capital round led by Mark Fernandes of Sierra Ventures. Existing investors Revolution Ventures, KGC Capital, and Tom Williams also participated.

    When we last checked in with Paro 18 months ago, it had just raised a $5 million series A from Clara Sieg at Revolution. The company said that it is now retrospectively dubbing that round a series “AA” round, since round sizes have increased “exponentially.” Since that time, the marketplace has continued to expand, and CEO and co-founder Michael Burdick says that the company is increasingly zero-ing in on the types of clients that best match the platform’s offerings.

    “The cognitive load is huge,” Burdick explained for companies trying to find this talent on existing marketplaces. “You’re posting project descriptions, you’re wading through all these mountains of unfiltered proposals, you’re having to shortlist candidates.” That often leads CFOs right back to the incumbent accounting firms, since they are much more plug-and-play.

    Paro has taken a different tact, focusing instead on recruiting and retaining the highest-quality financial talent on its marketplace. The company has built out and continues to improve tools to help the marketplace’s experts focus on the work that makes them unique rather than the drudgery that can come as part of their jobs. We’re “automating a lot of their back office functions [and] giving them workflow automation tools to make them more productive and efficient and earn more,” Burdick said. He dubbed this the “freelancer operating system.”

    Sieg of Revolution also noted that the pursuit of quality has been beneficial for Paro’s bottom line. “Unlike a consulting gig, where it’s a one-time analysis and a sort of lumpy engagement, you need monthly financials, you need annual tax reporting, you need audit work, and so these are really ongoing relationships,” she said. That “gets us away from some of the informal problems that you’ve seen in labor marketplaces, which is really high customer acquisition costs, and relatively low take rates, and not very much recurring business.”

    As Paro scales, Burdick sees an opportunity to leverage the firm’s data network effects to build a moat around its business. “There is inherently a wealth of data at our fingertips that we’re leveraging, giving back to the freelancers and the clients,” he said.

    Online labor marketplaces targeting business functions have grown dramatically in popularity in recent years, with companies like Pilot raising large rounds of venture capital. Burdick says that Paro differentiates from bookkeeping services like Pilot by focusing on elite financial talent which ultimately leads to higher margins.

    The company intends to use the capital to continue expanding its product and sales staffs.

    Update: Changed Series B to Series A , and Series A to Series AA by request of Paro.


    Source: Tech Crunch Startups | Paro raises million to offer corporate finance expertise on demand

    Startups

    Code slingers: Apply to the Hackathon at Disrupt Berlin 2019

    September 26, 2019

    Calling all code poets. It’s time to strut your stuff at the TC Hackathon at Disrupt Berlin 2019. Are you ready to test your physical, mental and technical limits in this intense, high-pressure code-a-thon for cash, prizes and bragging rights? Then apply to compete right here.

    How does the Hackathon work? First of all, it’s free. And we give each participant a free Innovator pass. The Hackathon takes place during the Disrupt conference in a dedicated section of Arena Berlin. We’re limiting participation to 500 participants who will have just 36 hours to form teams, choose one of several sponsored contest hacks and complete their project.

    We’ll announce the specific sponsors and challenges in the coming weeks. But you’ll get a good sense of what to expect by looking at the sponsored contests, prizes and winners from the Hackathon at Disrupt SF 2018.

    Your skill and talent will be put to good use because, regardless of which hack challenge you select, sponsors are looking for working products that address real-world problems. Do your very best to impress, and you could take home thousands of dollars.

    Judges will review the completed projects science-fair style, and they’ll choose 10 teams for the final round on day two. Each (very) tired team gets two minutes to present and pitch their project on the Extra Crunch Stage.

    In addition to the cash and prizes from individual sponsors, TechCrunch’s panel of judges will select one team for the best overall hack — and they’ll take home a $5,000 cash prize.

    Cash, prizes, bragging rights, free food, drink, caffeine and a free Innovator’s pass — yowza! Need more reasons to apply? Think networking. If you’re this good under pressure, imagine the impression you’ll make on potential partners or employers.

    TC Hackathon takes place during Disrupt Berlin 2019 on 11-12 December. Don’t miss your chance to dazzle us with your physical, mental and technical capabilities — and build something great in the process. Apply to the Hackathon today.

    Is your company interested in sponsoring or exhibiting at Disrupt Berlin 2019? Contact our sponsorship sales team by filling out this form.


    Source: Tech Crunch Startups | Code slingers: Apply to the Hackathon at Disrupt Berlin 2019

    Startups

    YouTuber Caspar Lee co-founds Influencer marketing platform, raises £3M Series A

    September 26, 2019

    Despite the inexorable rise of social media influencers, several problems remain when it comes to brands trying to use these stars to push their products. The marketing tools and processes are fragmented (read: chaotic). Attaining some level of authenticity, quality and creativity in influencer-driven campaigns is tough, to say the least. And the whole thing has to look like the influencers are only promoting brands that they truly believe in, whether they are or not.

    Perhaps that’s unkind? Some social influencers really do try to “curate” the products they are pushing. Plenty just do it only for the money, and it shows. The whole thing is largely a shitshow, to use a technical term. Some startups are trying to bring order to this tedious state of affairs.

    Influencer is a social media influencer marketing platform, which has now announced the close of a £3 million (± $3.6 million) Series A round led by Puma Private Equity.

    Its platform claims to simplify the influencer marketing process for both advertisers and creators, giving advertisers access to a network of “macro and micro creators” pre-vetted for authenticity, quality and creativity based on first-party data. This unites “creator discovery, creator relationship management, campaign management and campaign reporting along with actionable insights,” they say.

    Key competitors include Whalar, Tribe, Takumi, Influential.co and FameBit.

    But Influencer says it differentiates from these companies in that it puts a lot of the elements needed onto one platform for self-service and managed campaigns. It also has a white-label solution.

    Influencer has so far worked with brands including Boohoo, Alibaba, Pepsi, Starbucks, Pantene, Uber Eats, PrettyLittleThing and Apple Music, to get them in front of audiences via social media influencers.

    The startup was launched in 2017 by 23-year-old Ben Jeffries who leads the company as CEO, and 25-year-old YouTuber and creator Caspar Lee.

    It’s now brought on Adam Ludwin, co-founder of search intelligence company Captify and growth marketing agency Inflecto Media, as director of the board.

    The company will open its first U.S. office in New York, led by CEO Ben Jeffries, with expansion planned to the West Coast over the next year.

    It’s also released a mobile app, which “allows brands and content creators to create meaningful relationships,” claims Jeffries.

    Caspar Lee says: “At Influencer we pride ourselves in being by creators, for creators, with a team who embody this new era of creativity and enjoy unrivaled relationships with the world’s leading creators.”


    Source: Tech Crunch Startups | YouTuber Caspar Lee co-founds Influencer marketing platform, raises £3M Series A

    Startups

    Summer wants to vanquish student loans for borrowers, and now has $10M to do it

    September 26, 2019

    $1.5 trillion. That’s the amount of outstanding student loan debt held by American citizens according to the New York Fed. It is an astronomical sum, and has led to much hand-wringing about whether there is a coming bubble in U.S. higher education.

    What’s even worse than the scale of the debt load though is the fact that for millions of borrowers, they literally don’t have to pay some of those dollars. Thanks to the complexity of the loan system in the U.S., borrowers often qualify for repayment programs that can lead to loan forgiveness, that is, if they can figure out the terms, apply correctly, and actively follow the rules to net the write-off.

    Enter Summer. The public benefit corporation is on a mission to act as a “trusted advisor” to student loan borrowers. Through its platform, borrowers can get a full 360-degree view of their current student loan situation, and begin exploring options for how to repay it in the most financially efficient way possible.

    Summer’s program helps users identify possible forgiveness options. Photo via Summer.

    The company’s early traction has brought it a new round of venture capital. The company announced this morning that QED Investors, one of the leading early-stage fintech investors out there, led a $10 million series A round in the company. Recent partner addition Matt Burton led the deal, who joined QED about a year ago after selling his lending data startup Orchard to Kabbage.

    Co-founder and CEO Will Sealy analogized Summer to how tax accountants help filers handle the complexities of doing their taxes. “We’re trying to create the software that democratizes [student loan] expertise, that gets the expertise into the hands of the end consumer, who might not be able to afford an accountant that doesn’t even unfortunately exist in the student loan space at this current moment,” he said.

    He noted that the company is building out support for 120 loan forgiveness programs and their complicated rules, and has its eyes on more than a hundred other student loan proposals that are sitting in state legislatures across the country.

    The company was started at Yale by Sealy and co-founders Paul Joo and Vincent Tran, and the trio eventually migrated to New York City while building the team to 13 according to its staffing page. Sealy previously worked at the Consumer Financial Protection Bureau in DC in the Office of Students, where he worked on precisely the challenges of getting students better access to quality information around student loan programs.

    Summer’s team. Photo via Summer.

    So far, Summer, which launched in 2017, has helped 10,000 borrowers to date, and “just in this year, we have helped borrowers save $8 million,” Sealy said. “A critical metric is not just how many people we are engaging, but how much money we’re saving them.”

    Summer does not charge end users to use its product. Instead, it sells through enterprises and other types of organizations to offer the product as a benefit to employees. Sealy gave the example of medical associations, who could offer Summer to recent medical school graduates, or companies who want to entice recent grads with a simple tool that can improve their financial lives.

    Summer currently works retrospectively, in that it targets users who are post-grads. I asked why Summer didn’t focus prospectively on helping borrowers think through their student loan products before they take them on. Sealy replied that “In many ways, it feels like the house is on fire. So before we would ever go about trying to create a better smoke detector and build a new home, we want to save the people who are currently struggling.”

    Burton of QED explained his rationale for leading the round. “QED, like the rest of the investors like General Catalyst and Story Ventures, we put a pretty big round into this company on the belief that there’s an urgent problem facing these student loan borrowers and we’re working hard to … scale to meet the needs of tens of millions of student borrowers.” With 10,000 users and $8 million saved, you can start to project out the potential impact Summer could have for many borrowers.

    In addition to QED, the round had participation from General Catalyst, Greycroft, NextView Ventures, and Story Ventures.


    Source: Tech Crunch Startups | Summer wants to vanquish student loans for borrowers, and now has M to do it