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    Startups

    Learn how to give your brand a distinct voice from Slack’s Head of Brand Communications Anna Pickard at TC Early Stage

    June 15, 2020

    How do you give your brand a voice that feels authentic and unique? How can you communicate with users in a way that helps and engages without feeling weird or forced?

    We’re thrilled to announce that Anna Pickard, Head of Brand Communications at Slack, will be joining us at TC Early Stage to teach us all that and more.

    In her role at Slack, Pickard helps teams across the company figure out how to communicate with users in a way that feels unified and professional, but not overly canned or corporate.

    In her TC Early Stage breakout session aptly called “A brand personified,” Pickard will share some of those lessons with the rest of us.

    TC Early Stage is our brand-new, all-virtual event that focuses on helping new founders get exactly the information they need, straight from the experienced founders, executives, investors and lawyers that know it best. It’ll run from July 21 to July 22 and will feature over 50 breakout sessions on topics on everything from fundraising, to hiring your first engineers, to the tech stack you build your product on.

    And because it’s all virtual, you don’t even have to go anywhere. Tune in and kick back in your pajamas. We won’t judge.

    Pickard joins an outright incredible list of speakers presenting at TC Early Stage, alongside people like Sarah Guo, Jeff Clavier, Sophie Alcorn, Cyan Banister and Garry Tan.

    One catch: each of the 50+ breakout sessions at Early Stage will be capped at just 100 people and will be filled on a first-come, first-serve basis. Buy your ticket today (starting at $199) and you’ll be able to sign up for any breakout sessions we announce, plus any we’ve already announced that still have room. Prices increase in two short weeks so secure your seat today!

    If you want to know more about TC Early Stage, you can find everything you need to know — things like who’s speaking, what sessions to expect and more — right here.

    Interested in sponsoring Early Stage? Contact us here.

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    Source: Tech Crunch Startups | Learn how to give your brand a distinct voice from Slack’s Head of Brand Communications Anna Pickard at TC Early Stage

    Startups

    Free money for startups? It’s possible with MainStreet’s platform for economic development incentives

    June 15, 2020

    Startups need money. State and local governments need startups and the employment growth they offer. It should be obvious that the two groups can work together and make each other happy. Unfortunately, nothing could be further from the truth.

    Each year, governments spend tens of billions of dollars on economic development incentives designed to attract employers and jobs to their communities. There are a huge number of challenges, however, for startups and individual contributors trying to apply for these programs.

    First, economic development leaders typically focus on massive, flagship projects that are splashy and will drive the news cycle and bring good media attention to their elected official bosses. So, for example, you get a massive, $10 billion Foxconn plant in Wisconsin tied to hundreds of millions of incentives, only to see the project sputter into the ground.

    Then there is the paperwork. As you’d expect with any government application process, it can be arduous to find the right incentive programs, apply for credits at the right time and max out the opportunities available.

    That’s where MainStreet comes in.

    Its CEO and founder Doug Ludlow’s third company. He previously founded Hipster, which sold to AOL, and The Happy Home Company, which sold to Google. After that transaction, Ludlow went on to become chief of staff for SMB ads at the tech giant, where he saw firsthand the challenges that startups and all small companies face in growing outside of major urban hubs like San Francisco.

    When he and his co-founders Dan Lindquist and Daniel Griffin first started, they were focused on what Ludlow described as “a network of remote work hubs.” As they were experimenting last November they tried paying people to leave the Bay Area, offering them $10,000 if they moved to other cities. The offer caused a sensation, with outlets like CNN covering the news.

    While the interest from customers was great, what ignited Ludlow and his co-founders’ passions was that “literally dozens of cities, states and counties reached out, letting us know that they had an incentive program.” As the team explored further, they realized there was a huge untapped opportunity to connect startups to these preexisting programs.

    MainStreet was born, and it’s an idea that has also attracted the attention of investors. The company announced today that it raised a $2.3 million round from Gradient Ventures, Weekend Fund and others.

    Startups apply for economic incentives through MainStreet’s platform, and then MainStreet takes a 20% cut of any successful application. Notably, that cut is only taken when the incentive is actually disbursed (there’s no upfront cost), and there is also no on-going subscription fee to use the platform. “If you identify the credit that you’re able to use six months from now, we will charge you six months from now, when you’re actually getting that credit. It seems to be a business model that is aligned well with founders,” Ludlow said.

    Right now, he says that the average MainStreet client saves $51,000, and that MainStreet has crossed the $1 million ARR run rate threshold.

    Right now, the company’s core clientele are startups applying for payroll credits and research and development credits, but Ludlow says that MainStreet is working to expand beyond its tech roots to all small businesses such as restaurants. The company also wants to expand the number of economic development programs that startups can apply for. Given the myriad of governments and programs, there are hundreds if not thousands of more programs to onboard onto the platform.

    MainStreet’s team. Image Credits: MainStreet

    While MainStreet is helping startups and small businesses, it also wants to help governments improve their operations around economic development. With MainStreet, “we can report back to cities and states showing exactly what their tax dollars or tax credits are being utilized for,” Ludlow said. “So the accountability is orders of magnitude greater than they had before. So already, there’s this better system for tracking the success of incentives.”

    The big question for MainStreet this year is navigating the crisis around the COVID-19 pandemic. While more small businesses than ever need help navigating credits, state and local governments have suffered huge shortfalls in revenues as taxes have dried up and Washington continues to debate over what, if any aid, to offer. There’s no money for economic development, yet, economic development has never been more important than right now.

    Ultimately, MainStreet is pushing the vanguard of economic development thinking forward away from massive checks designed to underwrite industrial factories to a more flexible and dynamic model of incentivizing knowledge workers to move to areas outside the major global cities. It’s an interesting bet, and one that, at the very least, will help many startups get the economic incentives they rightly have access to.

    Outside of Gradient and Weekend Fund, Shrug Capital, SV Angel, Remote First Capital, Basement Fund, Basecamp Ventures, Backend Capital and a host of angels participated in the round.


    Source: Tech Crunch Startups | Free money for startups? It’s possible with MainStreet’s platform for economic development incentives

    Tech News

    Daily Crunch: WhatsApp launches payments

    June 15, 2020

    WhatsApp is adding support for in-app payments, Apple is upgrading the MacBook Pro and Mac Pro desktop and we argue about the future of startup hubs.

    Here’s your Daily Crunch for June 15, 2020.

    1. WhatsApp finally launches payments, starting in Brazil

    After months of talks and trials, WhatsApp has finally pulled the trigger on payments. Users in Brazil will be the first to be able to send and receive money through the messaging app, using Facebook Pay.

    WhatsApp says that the payments service — which currently is free for consumers to use, but comes with a 3.99% processing fee for businesses receiving payments — will work by way of a six-digit PIN or fingerprint to complete transactions.

    2. Apple adds new MacBook Pro graphics option and Mac Pro SSD upgrade kit

    A week before kicking off WWDC, Apple introduced a pair of upgrades to its pro-level hardware lines. Both the 16-inch MacBook Pro and the Mac Pro desktop are getting select internal upgrades, starting today.

    3. 3 perspectives on the future of SF and NYC as startup hubs

    Three TechCrunch writers address one of the big questions about the future: Will tech continue to centralize in hubs like San Francisco and New York City, or will remote work and all the other second-order effects lead to a more decentralized startup ecosystem? (Extra Crunch membership required.)

    4. Interstellar Technologies’ privately developed MOMO-5 rocket falls short of reaching space

    The company first launched a vehicle in 2017, but the launch didn’t go exactly as planned and failed to reach space. In 2019, its MOMO-3 sounding rocket did break the Karman line, though just barely, and unfortunately its MOMO-5 sounding rocket launched over the weekend did not make space, as planned.

    5. Introducing The Exchange, your daily dive into the private markets

    The Exchange is Alex Wilhelm’s regular dive into the financial side of the startup world, and how the public markets exert gravity (or lift) on private companies. These themes might sound familiar to Daily Crunch readers, since we’ve linked to plenty of Alex’s pieces, but now it’s an official column with an official name.

    6. Tesla’s US-made Model 3 vehicles now come equipped with wireless charging and USB-C ports

    Tesla Model 3 vehicles produced at its Fremont, Calif. factory will reportedly come standard with a wireless charging pad and USB-C ports, upgrades that were first spotted by Drive Tesla Canada.

    7. This week’s TechCrunch podcasts

    The latest full-length episode of Equity discusses Facebook’s new startup venture fund, while the Monday news roundup covers the latest problems at Quibi. Over at Original Content, we review the latest season of “Queer Eye.”

    The Daily Crunch is TechCrunch’s roundup of our biggest and most important stories. If you’d like to get this delivered to your inbox every day at around 9am Pacific, you can subscribe here.

    Source: Tech Crunch Mobiles | Daily Crunch: WhatsApp launches payments

    Startups

    Introducing The Exchange, your daily dive into the private markets

    June 15, 2020

    When 2020 began, the year seemed set to include another year of record-setting venture capital investment and, perhaps, some long-awaited IPOs. All that quickly faded when COVID-19 spread globally, shutting economies, undercutting swaths of the business world and rearranging the working life in countries around the globe.

    Here at TechCrunch we’re navigating the changing landscape, talking to the founders and venture capitalists that make up the startup realm that we cover, hoping to decipher the new normal.

    One way that we’ve done that this year is through a daily look at the private markets. This regular effort (you can read the full archive here) has been an attempt to understand the financial side of the startup world, and how the public markets exert gravity (or lift) on private companies, especially during tumultuous economic times.

    The project kicked off with a look at companies that have reached the $100 million ARR mark (a series that is still ongoing), and has touched on all sorts of things since, including the growing popularity of venture debt, China’s VC slowdown, lots of coverage of VC-backed companies trying to go public and, recently, why API startups are so hot right now.

    Today I’m happy to announce that we’re giving the daily post a name and a lovely set of art. Previously called nothing at all, the series is now called “The Exchange.”

    As a writer, this is an exciting moment. I’ve written a daily column focused on the markets since mid-2016 for various publications, but I’ve never had one that was as put together as The Exchange can now claim to be. A big thanks to Eric and Walter and Henry and Bryce and Holden and Natasha for their help and encouragement.

    Looking ahead, we’re seeing more mega rounds than I would have anticipated, more market demand for tech IPOs than I think anyone anticipated, record highs for tech stocks until about 48 minutes ago and lots of new rounds worth digging into from a trends perspective. So, there’s a lot to do and I’m excited to talk about it all with you each and every weekday morning on The Exchange.

    That’s it for now. The Exchange comes out Monday through Friday morning on TechCrunch for Extra Crunch subscribers. Use the code “EXCHANGE” for a discount if you’d like one.

    A huge thanks to everyone who already reads this series, and a hug for everyone who’s signed up so that they can access it. Here’s to another hundred entries. And then one hundred more.


    Source: Tech Crunch Startups | Introducing The Exchange, your daily dive into the private markets

    Startups

    Equity Monday: Quibi, two Boston rounds and a shift to pessimism

    June 15, 2020

    Hello and welcome back to Equity, TechCrunch’s venture capital-focused podcast, where we unpack the numbers behind the headlines. This is Equity Monday, our short-form week-starter in which we go over the weekend, look to the week ahead, talk about some neat funding rounds and dig into what is stuck on our minds.

    So, by section then:

    The weekend:

    • The market narrative seems to have changed from optimism to pessimism, impacting stock prices and possibly closing the IPO window some, after it had unexpectedly opened.
    • Quibi news is out that isn’t great: The mobile-first launch that came during a lockdown hasn’t helped the hugely funded service that had to convince the world that its content format was great. We calculate its effective cost-per-subscriber number and it isn’t super great.

    The week ahead:

    • Earnings from Groupon and Oracle. The former could tell us a little bit about the health of the consumer perhaps? And Oracle is a player in the cloud space, so its earnings might help us understand what’s up in that world. See, not everything cloud-related comes from Seattle.
    • And we note the grip of tech conferences that were put on hold due to COVID-19, wondering what they might look like next year; do we ever go back to the way that things used to be?

    Funding rounds:

    What’s on our minds:

    Equity drops every Friday at 6:00 am PT, so subscribe to us on Apple PodcastsOvercastSpotify and all the casts.


    Source: Tech Crunch Startups | Equity Monday: Quibi, two Boston rounds and a shift to pessimism

    Startups

    Rewarding civic pride and boosting the local economy? Akron, Ohio is trying out a startup for that

    June 15, 2020

    Akron, Ohio, the hometown of LeBron James; the seat of the U.S. tire industry; the 127 largest city in the U.S.; and the home of America’s first toy company, is now the latest site of a global experiment in whether cities can use behavioral economics to help foster good citizenship.

    Thanks to the work of the city’s deputy mayor for integrated development, James Hardy, Akron is the first city to roll out services from an Israeli-based company called Colu. A startup backed by just over $20 million in financing from American and Israeli investors, the company has developed an app-based rewards service that cities can roll out to provide perks to users.

    In Akron’s case, the initiative rewards points for shopping at local businesses that can be redeemed for discounts at those stores. The initial effort, which includes a platform for businesses to market directly to the app’s users, focuses on businesses owned by women and minorities (a response to the movement for racial justice that has sprung up in the wake of the murder of George Floyd in Minneapolis).

    Akron is the first city of what Colu founder Amos Meiri expects to be a nationwide rollout throughout the U.S. The company already has managed to ink another agreement with the city of Chula Vista, Calif.

    Colu, which has raised its capital from investors associated with blockchain technologies like Barry Silbert’s Digital Currency Group; the Boston-based venture capital firm, Spark Capital; New York’s Box Group and the Israeli corporate conglomerate, IDB Group, has deep ties to the cryptocurrency world of alternative financial instruments through Meiri.

    One of the original architects of the Color coin blockchain experiment, Meiri’s work with Colu is in some ways an extension of that effort to create new kinds of economies powered by alternative financial mechanisms.

    Meiri said cities typically pay for Colu out of their marketing budgets as a new way to communicate and attempt to influence civic behavior.

    For Akron’s government officials, the company’s services are a way to boost locally owned businesses that have been hit hard by the state’s attempts to contain the COVID-19 outbreak.

    “Our locally owned small businesses are facing enormous challenges and we need out-of-the-box ideas that safely connect them to consumers and turn local spending into a source of pride for residents,” said Akron Mayor Dan Horrigan, in a statement. “Our partnership with Colu will enable the city to reward customers for shopping local, improving revenues for our small businesses while helping folks stretch their dollars.”

    Earlier work with the municipal government in Tel Aviv promoted sustainable business practice and encouraged businesses to do more to manage their waste and carbon footprint by introducing a “green label.” Businesses that followed the city’s guidelines were given the label and shoppers were encouraged to frequent those merchants.

    Colu envisions itself as more than just a marketing and rewards platform for businesses. The company hopes it can draw users into a kind of social networking platform for civic engagement where users can share their own stories about city-life and their interactions with local business owners and the community.

    In some ways, it’s a kinder, gentler version of China’s social credit scoring system, which is also designed to influence civic behavior. In this formulation, there’s a rewards system, but no mechanisms to punish citizens for bad behavior.

    “Akron has a long history of innovation within our economy — this initiative draws on that legacy,” said Deputy Mayor Hardy, in a statement. “By putting the future of Akron’s locally owned small businesses in the palm of our citizens’ hands, we hope to make it easy for consumers to keep their money local and continue to strengthen our incredible community.”


    Source: Tech Crunch Startups | Rewarding civic pride and boosting the local economy? Akron, Ohio is trying out a startup for that

    Startups

    Rocket startup Skyrora achieves a successful sub-orbital launch from Scottish island

    June 15, 2020

    This past weekend was a busy one for rocket launches, including for new launch companies hoping to join the ranks of SpaceX and Rocket Lab as private, operational space launch providers. Edinburgh-based Skyrora achieved a significant milestone for its program, successfully launching its Skylark Nano rocket from an island off the coast of Scotland on Saturday.

    Skyrora has been developing its launch system with a goal of devouring affordable transportation for small payloads. The company has flown its Skylark Nano twice previously, including a first launch back in 2018, but this is the first time it has taken off from Shetland, a Scottish site that is among three proposed commercial spaceports to be located in Scotland.

    Skylark Nano is a development spacecraft that Skyrora created while it works on its Skylark-L and Skyrora XL orbital commercial launch vehicles. Nano doesn’t reach space — it flies to a height of around 6KM (roughly 20,000 feet) but it does help the company demonstrate its propulsion technologies, and also gather crucial information that helps it in developing its Skylark L suborbital commercial launch craft, as well as Skyrora XL, which will aim to serve customers with orbital payload needs.

    Skylark L is currently in development, and Skyrora recently achieved a successful full static test fire of that rocket. The goal is to begin launching commercially from a U.K.-based spaceport as early as 2022.

    Skyrora’s approach is also unique because it employs both additive manufacturing (3D printing) in construction of its vehicles and uses a kerosene fuel developed from discarded plastic waste that the company claims produces fewer emissions than traditional rocket fuel.


    Source: Tech Crunch Startups | Rocket startup Skyrora achieves a successful sub-orbital launch from Scottish island

    Startups

    VESoft raises $8M to meet China’s growing need for graph databases

    June 15, 2020

    Sherman Ye founded VESoft in 2018 when he saw a growing demand for graph databases in China. Its predecessors, like Neo4j and TigerGraph, had already been growing aggressively in the West for a few years, while China was just getting to know the technology that leverages graph structures to store data sets and depict their relationships, such as those used for social media analysis, e-commerce recommendations and financial risk management.

    VESoft is ready for further growth after closing an $8 million funding round led by Redpoint China Ventures, an investment firm launched by Silicon Valley-based Redpoint Ventures in 2005. Existing investor Matrix Partners China also participated in the Series pre-A round. The new capital will allow the startup to develop products and expand to markets in North America, Europe and other parts of Asia.

    The 30-people team is comprised of former employees from Alibaba, Facebook, Huawei and IBM. It’s based in Hangzhou, a scenic city known for its rich history and housing Alibaba and its financial affiliate Ant Financial, where Ye previously worked as a senior engineer after his four-year stint with Facebook in California. From 2017 to 2018, the entrepreneur noticed that Ant Financial’s customers were increasingly interested in adopting graph databases as an alternative to relational databases, a model that had been popular since the 80s and normally organizes data into tables.

    “While relational databases are capable of achieving many functions carried out by graph databases… they deteriorate in performance as the quantity of data grows,” Ye told TechCrunch during an interview. “We didn’t use to have so much data.”

    Information explosion is one reason why Chinese companies are turning to graph databases, which can handle millions of transactions to discover patterns within scattered data. The technology’s rise is also a response to new forms of online businesses that depend more on relationships.

    “Take recommendations for example. The old model recommends content based purely on user profiles, but the problem of relying on personal browsing history is it fails to recommend new things. That was fine for a long time as the Chinese [internet] market was big enough to accommodate many players. But as the industry becomes saturated and crowded… companies need to ponder how to retain existing users, lengthen their time spent, and win users from rivals.”

    The key lies in serving people content and products they find appealing. Graph databases come in handy, suggested Ye, when services try to predict users’ interest or behavior as the model uncovers what their friends or people within their social circles like. “That’s a lot more effective than feeding them what’s trending.”

    Neo4j compares relational and graph databases (Link)

    The company has made its software open source, which the founder believed can help cultivate a community of graph database users and educate the market in China. It will also allow VESoft to reach more engineers in the English-speaking world who are well-acquainted with the open-source culture.

    “There is no such thing as being ‘international’ or ‘domestic’ for a technology-driven company. There are no boundaries between countries in the open-source world,” reckoned Ye.

    When it comes to generating income, the startup plans to launch a paid version for enterprises, which will come with customized plug-ins and host services.

    The Nebula Graph, the brand of VESoft’s database product, is now serving 20 enterprise clients from areas across social media, e-commerce and finance, including big names like food delivery giant Meituan, popular social commerce app Xiaohongshu and e-commerce leader JD.com. A number of overseas companies are also trialing Nebula.

    The time is ripe for enterprise-facing startups with a technological moat in China as the market for consumers has been divided by incumbents like Tencent and Alibaba. This makes fundraising relatively easy for VESoft. The founder is confident that Chinese companies are rapidly catching up with their Western counterparts in the space, for the gargantuan amount of data and the myriad of ways data is used in the country “will propel the technology forward.”


    Source: Tech Crunch Startups | VESoft raises M to meet China’s growing need for graph databases

    Startups

    Tonik raises $21 million to launch digital bank in the Philippines

    June 15, 2020

    A wave of digital banks, or neo-banks, has flourished in recent years in Western nations as people begin to flee megabanks.

    While most of these startups are yet to prove they can turn a profit, entrepreneurs are beginning to replicate similar ideas in South Asian markets, where most people don’t have accounts with traditional banks at all. And for now, venture capitalists are backing this attempt.

    Tonik Financial, a two-year-old startup in the Philippines, said on Monday it has raised $21 million in a new financing round to launch its digital bank aimed at the Southeast Asian market by September this year.

    Sequoia Capital India and Point72 Ventures led Tonik’s Series A round, while existing investors Insignia and Credence participated in it, the startup said, which has raised $27 million to date.

    Tonik, which recently received the license to operate a digital bank in the Philippines, said it will commercially launch the digital bank in the third quarter of this year.

    Greg Krasnov, the founder and chief executive of Tonik, said according to his estimates, the retail savings market in the Philippines is worth $140 billion and the Southeast Asian nation also presents a $100 billion opportunity in unsecured consumer lending. TechCrunch could not independently corroborate these market estimations.

    Krasnov, who has previously incubated four financial services startups in Asia, said the coronavirus pandemic has prompted people to double down on their savings and has made it apparent that the vast majority of people in the Philippines need access to a digital bank.

    “In the Philippines, where over 70% of the population remains unbanked, we are observing a rapid jump in consumer demand for digital banking and digital transfers since the start of the year,” he said.

    “We are preparing to bring a highly differentiated experience to the Filipino consumer to address these needs and are honored to be supported in this by the regulators who have encouraged innovation and welcomed technology solutions to bolster financial inclusion,” he added.

    In several South Asian markets, where, like the Philippines, much of the population remains unbanked, startups are racing to fill the void. But interestingly, most of them are serving startups and other small and medium businesses — and not individuals.

    In India, for instance, Bangalore-based NiYo Solutions and Open are two of the heavily-backed startups that have amassed over a million businesses on their platforms.

    RazorPay, another Bangalore-based startup, last year launched a range of features, such as corporate credit cards, and a single dashboard to help businesses manage transactions and provided them with the ability to automate recurring payouts. Some of these features are currently not offered by a traditional bank.


    Source: Tech Crunch Startups | Tonik raises million to launch digital bank in the Philippines