Browsing Tag: Startups

Risk and compliance management platform VComply announced today that it has picked up a $2.5 million seed round led by Accel Partners for its international growth plan. The funding will be used to acquire more customers in the United States, open a new office in the United Kingdom to support customers in Europe and expand its presence in New Zealand and Australia.

The company was founded in 2016 by CEO Harshvardhan Kariwala and has customers in a wide range of industries, including Acreage Holdings, Ace Energy Solutions, CHD, the United Kingdom’s Department of International Trade and Burger King. It currently claims about 4,000 users in more than 100 countries. VComply is meant to be used by all departments in a company, with compliance information organized into a central dashboard.

While there are already a roster of governance, risk and compliance management solutions on the market (including ones from Oracle, HPE, Thomson Reuters, IBM and other established enterprise software companies), VComply’s competitive edge may be its flexibility, simple user interface and easy deployment (the company claims customers can on-board and start using the solution for compliance tasks in about 30 minutes). It also seeks out smaller companies whose needs have not been met by compliance solutions meant for large enterprises.

Kariwala told TechCrunch in an email that he began thinking of creating a new risk and compliance solution while working at his first startup, LIME Learning Systems, an education management platform, after being hit with a $4,000 penalty due to a non-compliance issue.

“Believe me, $4,000 really hurts when you’re bootstrapped and trying to save every single cent you can. In this case, I had asked our outsourced accounting partners to manage this compliance and they forgot!,” he said. After talking to other entrepreneurs, he realized compliance posed a challenge for most of them. LIME’s team built an internal compliance tracking tool for their own use, but also shared it with other people. After getting good feedback, Kariwala realized that despite the many governance, risk and compliance management solutions already on the market, there was still a gap in the market, especially for smaller businesses.

VComply is designed so organizations can customize it for their industry’s regulations and standards, as well as their own workflow and data needs, with competitive pricing for small to medium-sized organizations (a subscription starts at $3,999 a year).

“Most of the traditional GRC solutions that exist today are expensive, have a steep learning curve and entail a prolonged deployment. Not only are they expensive, they are also rigid, which means that organizations have little to no control or flexibility,” Kariwala said. “A GRC tool is often looked at as an expense, while it should really be treated as an investment. It is particularly the SMB sector that suffers the most. With the current solutions costing thousands of dollars (and sometimes millions), it becomes the least of their priorities to invest in a GRC platform, and as a result they fall prey to heightened risks and hefty penalties for non-compliance.”

In a press statement, Accel partner Dinesh Katiyar said, “The first generation of GRC solutions primarily allowed companies to comply with industry-mandated regulations. However, the modern enterprise needs to govern its operations to maintain integrity and trust, and monitor internal and external risks to stay successful. That is where VComply shines, and we’re delighted to be partnering with a company that can redefine the future of enterprise risk management.”

Source: Tech Crunch Startups | VComply raises .5 million seed round led by Accel to simplify risk and compliance management

Smartphones have become a creative playground thanks to cameras and innovative apps, such as PicsArt. With PicsArt, anybody can add filters and stickers and tweak photos and videos in many different ways. It has been a massive hit with 130 million monthly active users. And that’s why I’m excited to announce that PicsArt founder and CEO Hovhannes Avoyan is joining us at TechCrunch Disrupt Berlin.

PicsArt started with a simple app that lets you edit photos before sharing them. There are many companies in this space, including VSCO, Snapseed and Prisma. But PicsArt has managed to become a cultural phenomenon in many countries, including China.

If you’re thinking about editing a photo or video in one way or another, chances are you can do it in PicsArt. In addition to traditional editing tools (cropping, rotating, curves, etc.), you can add filters, auto-beautify your face, change your hair color, add stickers and text, cut out your face and use masks just like in Photoshop… I’m not going to list everything you can do because it’s a long list.

The result is an app packed with features that lets you express yourself, create visual storytelling and improve your social media skills. If you’re an Instagram user, chances are you’ve seen more than one photo that has been edited using PicsArt.

While the app is free with ads, users can also subscribe to a premium subscription to unlock additional features. And PicsArt is not just about editing, as you can also use the app as its own social network.

PicsArt is based in the U.S. and has raised $45 million over the years. But the company is also betting big on Armenia, with a big engineering team over there.

And it’s a natural fit, as Hovhannes Avoyan is originally from Armenia. In addition to PicsArt, he has founded many successful startups in the past — he sold them to Lycos, Bertelsmann, GFI, TeamViewer and HelpSystems. Many entrepreneurs would have a hard time founding just one of these companies, so I can’t wait to hear how Avoyan manages to work on so many different products and turn those products into successes.

Buy your ticket to Disrupt Berlin to listen to this discussion and many others. The conference will take place on December 11-12.

In addition to panels and fireside chats, like this one, new startups will participate in the Startup Battlefield to compete for the highly coveted Battlefield Cup.

( function() {
var func = function() {
var iframe = document.getElementById(‘wpcom-iframe-8c04370dcd5ec52297bec6ccf0dd3a5b’)
if ( iframe ) {
iframe.onload = function() {
iframe.contentWindow.postMessage( {
‘msg_type’: ‘poll_size’,
‘frame_id’: ‘wpcom-iframe-8c04370dcd5ec52297bec6ccf0dd3a5b’
}, “https://tcprotectedembed.com” );
}
}

// Autosize iframe
var funcSizeResponse = function( e ) {

var origin = document.createElement( ‘a’ );
origin.href = e.origin;

// Verify message origin
if ( ‘tcprotectedembed.com’ !== origin.host )
return;

// Verify message is in a format we expect
if ( ‘object’ !== typeof e.data || undefined === e.data.msg_type )
return;

switch ( e.data.msg_type ) {
case ‘poll_size:response’:
var iframe = document.getElementById( e.data._request.frame_id );

if ( iframe && ” === iframe.width )
iframe.width = ‘100%’;
if ( iframe && ” === iframe.height )
iframe.height = parseInt( e.data.height );

return;
default:
return;
}
}

if ( ‘function’ === typeof window.addEventListener ) {
window.addEventListener( ‘message’, funcSizeResponse, false );
} else if ( ‘function’ === typeof window.attachEvent ) {
window.attachEvent( ‘onmessage’, funcSizeResponse );
}
}
if (document.readyState === ‘complete’) { func.apply(); /* compat for infinite scroll */ }
else if ( document.addEventListener ) { document.addEventListener( ‘DOMContentLoaded’, func, false ); }
else if ( document.attachEvent ) { document.attachEvent( ‘onreadystatechange’, func ); }
} )();

Hovhannes Avoyan is a serial entrepreneur, investor and scholar. He is the founder and CEO of PicsArt, the No. 1 photo and video editing app and community with more than 130 million monthly active users. PicsArt is backed by Sequoia Capital, Insight Venture Partners, DCM and Siguler Guff. The company employs more than 350 people and is headquartered in San Francisco, with offices across the globe in Yerevan, Armenia; Los Angeles; Beijing; and an AI lab in Moscow.

Avoyan brings more than 25 years of experience in computer programming and global business management. Prior to PicsArt, Avoyan founded five other startups, all of which had successful acquisitions by global companies including Lycos, Bertelsmann, GFI, TeamViewer, and HelpSystems.

He is a graduate of Harvard Business School’s Bertelsmann Senior Executive’s program. He received his B.S. and M.S. from the State Engineering University of Armenia and his M.A. in Political Science and International Affairs from the American University of Armenia. He’s also a frequent speaker at business conferences on topics ranging from business strategy to international team building and Al.

Source: Tech Crunch Startups | Watch an unfiltered interview of PicsArt founder at Disrupt Berlin

Fintech startup N26 is raising $170 million a few months after raising $300 million. While it’s technically structured as a new round, the company considers today’s new funding as an extension of the Series D round.

N26 has only reached out to existing investors. All the investors in the Series D round are investing again, as well as a few investors that have been around for a while. So that’s Insight Venture Partners, GIC (Singapore’s sovereign wealth fund), Tencent, Allianz X, Peter Thiel’s Valar Ventures, Earlybird Venture Capital and Greyhound Capital.

“It’s a raise in valuation of about 30%. It’s only existing investors that participated. We didn’t go external as it is also quite quickly after the round that we did earlier this year,” co-founder and CEO Valentin Stalf told me. “But I think it’s a good testament of the development of the company over the last couple of months.”

With this new influx of funding, N26 has now reached a post-money valuation of $3.5 billion. The company has raised $670 million in total. And N26 says that it is now the highest valued German startup and one of the highest valued fintech startups in the world.

N26 has been building a retail bank that works better. The company lets you sign up from your phone, get a card that you can control from your phone and make purchases all around the world without any foreign transaction fee. And the company has managed to attract 3.5 million customers all around Europe.

More recently, N26 launched its challenger bank in the U.S. The company plans to expand to Brazil in the coming months and launch more products to make it easier to manage your money. Many features will be based on Spaces, which are sub-accounts that let you separate your money in multiple pools and eventually share Spaces with other people.

I chatted with N26 co-founder and CEO Valentin Stalf about the future of N26. Here’s our interview, which was edited for clarity and brevity.

TechCrunch: You announced N26 You already. What’s the idea behind it?

Valentin Stalf: We launched it yesterday or the day before yesterday. There are different card colors and we’re differentiating our premium tier [N26 Metal] a little bit more from the mid tier [N26 You]. I think it was a little bit similar.

But now, N26 You is more individual. And then it’ll come together in a couple of weeks when we launch additional cards for one account. You can have different colors. And then, with Spaces, I think we're trying to build the most flexible bank account to live and think your way.

And then, in the next quarter we’ll do an app update with a transaction-based timeline.

TC: Does it mean that because of the new colors, people will get multiple cards and attach one card to one Space for instance?

Stalf: In the end, you’ll be able to attach the cards freely to different Spaces. It’s not even that important that you attach one card to one Space. Sometimes, people want to have multiple cards. But if you only use one card, then you can swap a transaction to a different Space.

TC: Now that you’re bringing perks from N26 Metal to N26 You, what does it mean for Metal customers? Do you just get a different card?

Stalf: I think with Metal, we’ll go more and more in the premium direction.

We also mentioned that we’ll be relaunching our insurance packages. The new package will be based on traveling but also mobility. You’ll have a lot of things in the mobility space including scooter riding.

TC: Let’s talk about product. You talked about Shared Spaces and multiple cards. There’s a redesign that is coming out in the next few months, what will it look like?

Stalf: With the app update that we’re doing, it’s not just a design update of the front end, it’s really an update of the way we talk to our customers and how we present transactions. We’ll be changing what you see in the app timeline.

We want to give you more context and we cant to make it smarter. We’ll integrate customer support interactions, we’ll integrate transactions that didn’t work… These features will launch over time.

We’re launching the infrastructure and then we’re launching each of the features. For instance, you’ll have the opportunity to start a customer service interaction directly from a transaction, straight to live chat.

And it’s coming together with Shared Spaces. It’s also something that needs to be reflected in the timeline in a smart way. Some of the transactions that might show up in your timeline might not be done by yourself but maybe by someone else.

Depending on which transaction you do, we move more details into the timeline directly based on what we think is important. So let’s say it’s a transaction in a new country, you might want to see the exchange rate in the timeline directly. If it’s rent, sending the same amount every month, you don’t need to see more details. It just needs to say rent — okay fine.

TC: What did you promise when you raised some more money? New countries, user numbers, improved monthly transaction volume?

Stalf: We have an opportunity that we build a bank that has more than 50 million users around the globe. Today, we only have 3.5 million users but we’re accelerating.

From a country perspective, we have agreed already that we go to Brazil. There’s no plan after Brazil yet. Now let’s focus on the U.S., then on Brazil, then next year we’ll find out what’s the feedback from these two markets.

Source: Tech Crunch Startups | Banking startup N26 raises another 0 million at .5 billion valuation

Wavecell, a cloud-communications platform for companies in Southeast Asia, announced today that it has been acquired by 8×8 in a deal worth about $125 million. The acquisition will help San Jose, California-based 8×8 expand in Asia, where Wavecell already has offices in Singapore, Indonesia, the Philippines, Thailand and Hong Kong.

Wavecell’s cloud API platform, which includes SMS, chat, video and voice messaging, is used by companies such as Paidy, Lalamove and Tokopedia. It has relationships with 192 network operators and partners like WhatsApp and claims its infrastructure is used to share more than two billion messages each year.

The terms of the deal includes $69 million in cash and about $56 million in 8×8 common shares. Founded in 2010, Wavecell’s investors included Qualgro VC, Wavemaker Partners and MDI Ventures.

In a prepared statement, 8×8 CEO Vik Verma said “8×8 is now the only cloud provider that owns the full, global-scale, cloud-native, technology stack offering voice, video, messaging, and contact center delivered both as pre-packaged applications and as enterprise-class APIs. We’re excited to welcome the Wavecell employees to the 8×8 family. We now have a significant market presence in Asia and expect to continue to expand in the region and globally in order to meet evolving customer requirements.”

Source: Tech Crunch Startups | Southeast Asian cloud communications platform Wavecell acquired by 8×8 in deal worth 5 million

Coinbase is taking advantage of its significant user base to give you more information about trading behavior and price correlation. Given that there are now 15 cryptocurrencies on Coinbase that you can trade, the new features should provide some signals.

In addition to price and variation information, you can see what Coinbase customers with large balances are currently doing. You get a buy/sell percentage for each asset.

Behind the scene, Coinbase looks at users with a Coinbase balance in the top 10% for that asset. The exchange then counts how many users in that pool have increased or decreased their positions over the last 24 hours. The signal is updated every two hours.

Coinbase is also calculating two other data points — the average hold time and the popularity of each asset. This time, the company relies on the entire Coinbase user base to tell you how long people keep a specific asset before selling it or sending it to another address.

Unfortunately, when you transfer your assets to a hardware wallet or a more secure wallet, Coinbase considers that you’re no longer “holding” that asset because it’s no longer on your Coinbase account.

Finally, Coinbase is looking at price data to find out if prices of multiple assets are correlated. For instance, if Crypto X and Crypto Y have a correlation of 0%, it means that they have no relationship. A negative correlation means that two assets move in opposite directions. This feature could help you build a more balanced portfolio of cryptocurrencies.

Source: Tech Crunch Startups | Coinbase tells you if top holders are buying or selling a crypto asset

Set in the city where startup dreams began, TechCrunch’s flagship tech conference — Disrupt San Francisco 2019 — takes place October 2-4. And with more than 10,000 attendees converging on Moscone North Convention Center, the networking possibilities can seem downright daunting. More like a contact sport than a business opportunity, right?

Why waste your valuable time talking to the wrong people? Reap the benefits of simplified networking with CrunchMatch. This free business match-making platform — available to attendees with Innovator, Founder or Investor passes — helps you find and connect with the people who can move your business forward.

How does it all work? Qualified pass holders will be able to access the platform via the Disrupt app to fill out their CrunchMatch profile outlining their specific roles, goals and the type of people they want to meet. Founders, for example, would list category, stage, location, funding status, etc. Investor profiles might include investment categories, preferred funding stage, geographic preferences and the like.

It’s not just for founders and investors. Whether you’re a developer looking for founders, a technology service provider searching for new customers or a startup looking for marketers, CrunchMatch can help you zero in on the right people, too.

CrunchMatch gets to work matching people based on their mutual business interests. It suggests meetings and sends out invitations (which recipients can easily accept or decline). Here’s another real time-saver: CrunchMatch lets you reserve dedicated meeting spaces where you can network in comfort. No more shouting just to be heard.

At a conference this size, an efficient strategic planning tool like CrunchMatch comes in handy. You’ll gain access to the Disrupt app in September, which gives you plenty of time to view the CrunchMatch platform and vet meeting requests before you step foot inside the Moscone Center.

Here’s what Michael Kocan, managing partner at Trend Discovery, had to say about his experience with CrunchMatch:

I scheduled more than 35 meetings with startups that I pre-vetted using CrunchMatch, and we made a significant investment in one of them.

On the other side of the investor/founder coin, Caleb John, co-founder of Cedar Robotics, appreciated the platform’s time-saving efficiency:

CrunchMatch is a great way to pitch your ideas to investors quickly. Instead of approaching each one individually, just type up your pitch and send it to 50 people. Even if only 10 percent get back to you, you still have five investors. It’s one of the best benefits.

Make the most of your time at Disrupt San Francisco 2019. Buy an Innovator, Founder or Investor pass and take advantage of the many networking benefits CrunchMatch has to offer. We’ll see you in October!

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

Source: Tech Crunch Startups | Let CrunchMatch simplify your networking at Disrupt SF 2019

There is a special chaos that happens when a startup reaches 30 employees. People have a harder time tracking what’s going on, and it’s easy for some to feel left out or ignored.

Right when you want employees focusing on taking the company to the next level, they’re suddenly focused on their own futures. Insecurities and politics can abound, and the work can suffer.

How to stop the madness? In my experience, it all comes down to structure. It might seem early, or scary to a company used to succeeding on grit, but 30 is a key time to begin putting processes into place.

You’re no longer 10 people sitting around a table together, and communication can start to break down. Looking to large companies is no help either. It’s easy to get lost in a sea of frameworks, and you don’t want to overwhelm your team.

What steps can you take to keep things on track and scale effectively? How much is too much?

My company, Bright + Early, works with companies at exactly this stage, helping them grow up without losing the culture that makes them special. For a company just on the verge of scaling, here’s what I recommend.

Values

Source: Tech Crunch Startups | How much HR does a scale-up need?

With commercial launch services expected to reach $7 billion by 2024, there’s increasing demand for an array of new technologies that can offer advantages to companies looking to get communications infrastructure in orbit.

That’s one of the reasons behind the new $25.5 million financing for Momentus, which sells in-space shuttle services to move satellites between orbits.

The company joins other satellite and telecommunications technology vendors like Akash Systems, which raised $14.5 million for its advanced telecommunications chipsets used in satellites, that have raised money from investors looking beyond basic launch services.

A motley assortment of venture capital firms, hedge funds, family offices and other institutional investors came in to finance the new round of funding for Momentus including: Y Combinator, the Lerner Family, the University of Wyoming Foundation, Quiet Capital, Mountain Nazca, ACE & Co., Liquid 2 Ventures and Drake Management. The financing was led by Prime Movers Lab.

With $34 million in funding to date, Momentus said it will use its new cash to continue the development of its two shuttles designed to move payloads between different orbits. As the space in space fills up, the ability to maneuver payloads once they reach low Earth orbit will become more important.

“In the past 18 months, Momentus has rapidly matured their water plasma propulsion system to deliver the world’s safest and most affordable in-space transportation services. They recently launched their first demonstration and are on track to radically reshape the landscape of the space economy,” said Dakin Sloss, founder and general partner at Prime Movers Lab, in a statement. “I look forward to Momentus delivering on their massive backlog of contracts and partnerships with NASA, SpaceX and other top players in the space ecosystem.”

A backlog of contracts is impressive, but the down payment on a potential flight is minimal compared to the ability to get on a vehicle, so companies tend to spread the wealth.

The money will also pay for building in-house research and development for the company’s technology and additional flight demonstrations throughout 2020, according to Momentus chief executive Mikhail Kokorich. The company expects to generate its first revenue next year, as well, Kokorich said.

The company has three flights scheduled for 2020.

Source: Tech Crunch Startups | In-space shuttle service, Momentus, raises .5 million as investments climb for ‘new space’ tech

10x Ascend is a new firm that helps software development, cybersecurity and data science professionals negotiate for better deals.

Founders Michael Solomon and Rishon Blumberg started out in talent management for the music industry (their clients still include musicians like Vanessa Carlton), then moved into representing tech freelancers with their firm 10x Management. More recently, they decided that there was an opportunity to provide similar services to full-time employees.

Given the rising demand for tech talent (the Bureau of Labor Statistics projects that software development roles will grow by 31% through 2026), you might think that developers and engineers can get anything they want when they’re looking for a job.

However, Blumberg suggested that many of these prospective hires simply don’t feel comfortable asking for what they want or what they’re worth — whether that’s more money, more equity, more flexibility in working from home, more vacation or anything else that’s important to them. He also pointed out that there’s no one else representing the employee’s interest in these discussions, since the recruiter ultimately works for the employer.

“Even though technologists are data-driven people who work in data-driven environments, they don’t negotiate that much,” Blumberg said.

So 10x Ascend can help, either by getting directly involved in the negotiations, or by advising prospective hires on things like counter-offers. (It’s not doing this in secret — Solomon said that either way, “We want the employer to know that we’re involved.”)

The firm is spinning out of 10x Management, and it’s been testing the model through a beta program. It says it’s already helped nearly 50 senior tech executives negotiate their job offers, increasing their compensation by an average of 35% — and as much as 100% in some cases.

In exchange, 10x Ascend collects between 6% and 8% of first-year salaries (the percent is lower for high-level jobs), starting with a $3,500 retainer.

Even though the firm is compensated based on salary, Solomon said that was simply the “cleanest” approach, and he emphasized that 10x Ascend isn’t just pushing clients to take the highest-paying offer. In fact, it’s created a free lifestyle calculator that helps people identify their priorities, whether that’s salary, job logistics, work-life balance and so on, which then informs the negotiations.

Blumberg also acknowledged that there’s been an “education” process with employers. He suggested that while engineers are sometimes nervous that they’ll blow a job offer by asking for too much, it’s actually helpful to have a third party who can take some of the heat.

“They can say, ‘That was my stupid advisor,’ ” Blumberg said. “We’re happy to be the bad cop.”

He also said that in some cases, employers are ultimately grateful to have 10x Ascend involved, as it helps them figure out packages that are more likely to attract and retain talent — which may mean offering more money, but could also mean creating more “bespoke” deals that provide flexibility or compensation in other areas. (You can read more about some of the negotiations on the 10x Ascend website.)

Given the name of the firm and the timing of the launch, I had to bring up the recent discussion around “10x engineers,” which led to some delightful social media backlash. Blumberg said he hadn’t been aware of the latest controversy, but he pointed out that this is a longstanding discussion. And inasmuch as 10x engineers exist, he suggested that they have team skills and emotional intelligence as much as technical skills.

“That doesn’t mean writing 10x lines of code or being 10x as fast,” Solomon added. “But we have definitely seen people who produce 10x results.”

Source: Tech Crunch Startups | 10x Ascend aims to help tech talent with job negotiations

ClassPass has set up yet another revenue stream, signing to a corporate wellness program partners like Facebook, Glossier, Google, Morgan Stanley, Under Armour, Etsy, Southwest Airlines and Gatorade.

The program will give employees at these companies access to the ClassPass network of more than 22,000 studio partners across 2,500 cities around the world, which includes studio brands like Barry’s Bootcamp, Flywheel Sports and CorePower Yoga. Corporate partners also get access to a “large library” of on-demand audio and video workouts.

This comes after ClassPass retooled the ClassPass Live product, in which it invested the resources to build out a new live broadcast studio, and rebuilt it into a library of on-demand video workouts.

The company launched ClassPass Live in 2018 with the hopes that users could workout from home within the ClassPass ecosystem. CEO Fritz Lanman told TechCrunch in June that the company stopped doing live classes in April 2019 and repackaged the content into free, on-demand video classes.

According to the release, one of the issues with corporate wellness programs is that HR departments have to patch together programs based on the regions in which their companies have offices/employees. ClassPass argues that its scale across the country, and in 17 other countries, gives it an edge with corporations that have global workforces.

Moreover, the ClassPass corporate wellness program only charges employers when employees actually use the service, and allows employers to reward good behaviors (going to a certain number of classes per month) by offering additional credits toward ClassPass experiences.

Here’s what Lanman had to say about it in a prepared statement:

The ClassPass Corporate Program enables employers of all sizes to offer the world’s most extensive, one-stop fitness and wellness program to their employees worldwide. ClassPass is the best fitness program ever created for consumers. With this launch, it’s now also the best fitness program ever created for employers and their employees.

Source: Tech Crunch Startups | ClassPass introduces a corporate wellness program