Postmates, one of the earlier entrants to the billion-dollar food delivery wars, has raised an additional $100 million in equity funding at a $1.85 billion valuation, as first reported by Recode and confirmed to TechCrunch by Postmates. The round comes four months after the eight-year-old startup drove home a $300 million investment that finally knocked it into “unicorn” territory.
New investor BlackRock has joined the funding round alongside Tiger Global, which served as the lead investor of Postmates’ September financing. Led by co-founder and chief executive officer Bastian Lehmann, the company has garnered a total of $681 million in venture capital funding from investors, including Spark Capital, Founders Fund, Uncork Capital and Slow Ventures.
In line with several other tech unicorns, Postmates has begun prep for an initial public offering that could come this year, including tapping JPMorgan to advise the float. As Recode pointed out, the $100 million capital infusion was probably less of a necessary funding event but rather an opportunity for existing investors to liquidate stock ahead of an exit.
Postmates, which completes 3.5 million deliveries per month, reportedly expected to record $400 million in revenue in 2018 on food sales of $1.2 billion. The company has not confirmed that figure nor disclosed any other 2018 revenue numbers. The company currently operates in more than 500 cities, recently tacking on another 100 markets to reach an additional 50 million customers.
It will be interesting to see how Wall Street responds to a Postmates public listing. Though it was an early player in what has become an extremely crowded market, Postmates never emerged as the leader in food delivery. Now, with supergiants like Uber dominating via Uber Eats and SoftBank funneling loads of capital into Postmates competitor DoorDash, it shouldn’t count on an oversubscribed IPO.
TaxScouts, a U.K. startup founded by TransferWise and Marketinvoice alumni, is the latest online service designed to make filing your tax return a lot less tedious. However, rather than focusing on the bookkeeping part of the problem primarily tackled by cloud accounting software — which is often overkill if you are self-employed or simply earn a little additional income outside of your day job — the company combines “automation” with human accountants to help you prepare your tax submission.
“Doing taxes is either tedious when you have to do them yourself, or expensive when you hire an accountant,” says TaxScouts co-founder and CEO Mart Abramov, who was employee number 8 at TransferWise and also previously worked at Intuit, MarketInvoice and Skype. “We’re automating as much of the admin part of tax preparation as possible in our online app. We then connect you with a certified accountant who will take care of the entire tax filing process for you”.
The headline draw is that TaxScouts charges a flat fee of £99 if you pay in advance, and promises a turn-around of just 24 hours. To help with this, the web app walks you through your tax status, income and expenses without assuming too much prior knowledge. This includes asking you to upload or take a photo of any required documents, such as invoices or dividend certificates. The idea is that all of the admin is captured digitally and packaged up ready for your assigned accountant to take a look.
“As more of the menial tasks are handled by our app this allows accountants to focus on what they do best and not get stuck in admin,” explains Abramov. “They can focus on providing advice and expertise to make sure everything is done right. Our customers get both the benefits of getting a personal accountant and having a simple tool to manage it all, without the huge costs”.
Abramov tells me that TaxScouts’ typical customers are anyone who wants to have their self assessment done for them or who just wants help with tax preparation. This spans self-employed people — from construction workers to professional freelancers — entrepreneurs and company directors, and people who are entitled to some kind of tax relief or refund, such as investors on crowdfunding platforms. He also said that gig economy workers are a good fit.
Moving forward, TaxScouts plans to further develop the automation functionality, including plugging into more data sources beyond its existing integration with HMRC. Abramov says this could include a driver’s Uber data for tracking mileage claims, for example, while I can immediately see how the app could integrate with various fintech offerings that capture transactions and receipts.
To that end, the startup has raised £300,000 in “pre-seed” funding to continue building out the product. Backers include Picus Capital, Charlie Delingpole (co-founder of ComplyAdvantage and MarketInvoice), and Charlie Songhurst (former GM corporate strategy at Microsoft).
What a day. Yesterday, hundreds of people gathered in Zug, Switzerland for TechCrunch Sessions: Blockchain. In addition to some of the key people of the Ethereum Foundation, the team interviewed the entrepreneurs behind Binance, Coinbase, ConsenSys, CryptoKitties and many other organizations.
The event was packed with interesting content. But if you couldn’t be there in person, don’t worry as you can watch everything that happened in Zug:
Disclosure: I own small amounts of various cryptocurrencies.
Logtrust is now known as Devo in one of the cooler name changes I’ve seen in a long time. Whether they intended to pay homage to the late 70s band is not clear, but investors probably didn’t care, as they gave the data operations startup a bushel of money today.
The company now known as Devo announced a $25 million Series C round led by Insight Venture Partners with participation from Kibo Ventures. Today’s investment brings the total raised to $71 million.
The company changed its name because it was about much more than logs, according to CEO Walter Scott. It offers a cloud service that allows customers to stream massive amounts of data — think terabytes or even petabytes — relieving the need to worry about all of the scaling and hardware requirements processing this amount of data would require. That could be from logs from web servers, security data from firewalls or transactions taking place on backend systems, as some examples.
The data can live on prem if required, but the processing always gets done in the cloud to provide for the scaling needs. Scott says this is about giving companies this ability to process and understand massive amounts of data that previously was only in reach of web scale companies like Google, Facebook or Amazon.
But it involves more than simply collecting the data. “It’s the combination of us being able to collect all of that data together with running analytics on top of it all in a unified platform, then allowing a very broad spectrum of the business [to make use of it],” Scott explained.
Devo dashboard. Photo: Devo
Devo sees Sumo Logic, Elastic and Splunk as its primary competitors in this space, but like many startups they often battle companies trying to build their own systems as well, a difficult approach for any company to take when you are dealing with this amount of data.
The company, which was founded in Spain is now based in Cambridge, Massachusetts, and has close to 100 employees. Scott says he has the budget to double that by the end of the year, although he’s not sure they will be able to hire that many people that rapidly
The images that appear on social media – happy people eating, cultural happenings, and smiling dogs – can actually predict the likelihood that a neighborhood is “healthy” as well as its level of gentrification.
So says a groundbreaking study published in Frontiers in Physics, in which researchers used social media images of cultural events in London and New York City to create a model that can predict neighborhoods where residents enjoy a high level of wellbeing — and even anticipate gentrification by 5 years. With more than half of the world’s population living in cities, the model could help policymakers ensure human wellbeing in dense urban settings.
The idea is based on the concept of “cultural capital” – the more there is, the better the neighborhood becomes. For example, if there are many pictures of fun events in a certain spot you can expect a higher level of well-being in that area’s denizens. The research also suggests that investing in arts and culture will actively improve a neighborhood.
“Culture has many benefits to an individual: it opens our minds to new emotional experiences and enriches our lives,” said Dr. Daniele Quercia. “We’ve known for decades that this ‘cultural capital’ plays a huge role in a person’s success. Our new model shows the same correlation for neighborhoods and cities, with those neighborhoods experiencing the greatest growth having high cultural capital. So, for every city or school district debating whether to invest in arts programs or technology centers, the answer should be a resounding ‘Yes!’”
The Cambridge-based team looked at “millions of Flickr images” taken at cultural events in New York and London and overlaid them on maps of these cities. The findings, as we can imagine, were obvious.
“We were able to see that the presence of culture is directly tied to the growth of certain neighborhoods, rising home values and median income. Our model can even predict gentrification within five years,” said Quercia. “This could help city planners and councils think through interventions to prevent people from being displaced as a result of gentrification.”
The team expects to be able to assess the health of citizens using the same method, overlaying pictures of food on maps in order to find food deserts and spots where cafes and croissants are on the rise. Just imagine: all those Instagrammed photos of your favorite sandwiches will some day help researchers build happier cities.
Bumble founder and CEO Whitney Wolfe Herd has always done things her own way.
Whether it’s standing up for her political beliefs, building a company with fully outsourced engineers or avoiding the usual startup fundraising runaround, Wolfe Herd follows her own instincts in building a business. Which is why we’re super excited to announce that Whitney Wolfe Herd will join us at TC Disrupt SF 2018.
Wolfe Herd first came on the scene as a co-founder and VP of Marketing at Tinder, where she helped grow the dating app into one of the world’s biggest dating platforms. But after a lawsuit over sexual harassment and discrimination, which was settled out of court, Wolfe Herd left the company to build an app focused on compliments and positive affirmations.
Originally, she wanted nothing to do with the dating space. But after meeting Andrey Adreev, Badoo founder and Bumble’s majority stakeholder, she realized that giving women a voice in digital dating could be revolutionary. And so, Bumble was born in 2014.
The app has grown to 30 million users, and continues to grow in popularity based on a simple premise: women make the first move.
But Wolfe Herd’s ambitions don’t stop at dating. The 28-year-old founder has added new verticals to the app, letting users find friends and make professional connections via Bumble.
And all the while, Bumble’s cap table has never changed, with Wolfe Herd’s 20 percent stake as yet undiluted. Wolfe Herd was named one of Time 100’s most influential people this year, and has herself become a brand that represents authenticity and self-empowerment.
We can’t wait to talk to Wolfe Herd at Disrupt SF 2018. You can buy tickets to the show here.
While DoorDash, Postmates and other apps are looking to reimagine what the food delivery experience looks like, Ray Reddy says he wants to figure out what the next generation of a food court looks like. Sort of.
Reddy’s startup, Ritual, aims to remake the whole process of leaving your office and walking around five minutes to a nearby deli or cafe to pick up food for lunch. But Reddy and his founders Larry Stinson and Robert Kim wanted to focus first on getting that experience right for a single building that leaves to go pick up coffee or food — and has that daily ritual of getting lunch with the team, or something along those lines. The whole process boils down to an app for consumers to order food or drinks as well as have coworkers piggyback onto that order to create a more socialized experience around getting up and going around the corner for a snack. Ritual said it has raised a new $70 million round led by Georgian Partners, with existing investors Greylock Partners, Insight Ventures, and Mistral Venture Partners all participating.
“If we [couldn’t] build something that is compelling for the 300 people who work at this single building, it’s not gonna work period,” Redddy said. “That helped us define the problem narrowly. We thought, here are the 12 or 14 spots within a five minute walk of this building, let’s focus on simulating what would happen. Let’s not worry about financials or economics, let’s prove this works. Just like Uber’s a remote control for the real world, we viewed this in a similar way where ultimately the app is a remote control for a real world experience.”
Ritual’s main flow is probably something the typical user is accustomed to at this point when it comes to food. They pick a place they like, place an order for food (or coffee), and then go pick it up. But the whole background process involves not only getting restaurants on board with the specific things they want while still trying to calibrate a consistent experience that users at this point expect when it comes to ordering something online after being trained on that simplicity for years by Postmates, DoorDash, or even apps by companies like Starbucks.
But over the past year or so, the company has increasingly tuned itself to employees jumping aboard the same order when considering what to pick up for a snack or a meal. The whole process aims at emulating that experience of figuring out where you want to eat in a Slack channel or arguing over a Seamless order, and in the end whoever has time to run out and grab something will be able to bring things back for teammates (or, of course, everyone can leave at the same time). That whole process is called “piggybacking,” a feature the company introduced around 18 months ago. The company has around 44,500 teams using the app, Reddy said.
All this is aimed to help restaurants adapt to the same changes in user behavior that retail has seen in the past decade, Reddy said. Amazon trained users to buy things online, forcing retailers to shift their strategies, just as Postmates and DoorDash have trained users to order food delivery through apps and immediately have access to a ton of options. With all that comes more and more data, which has helped those industries slowly tune their models over time and try to keep up with the increase in demand that has come with reducing friction around the whole experience.
“What restaurants are seeing are right now the same challenges retailers saw 10 years ago,” Reddy said. “What does it mean to become omni-channel, how do you go from one customer segment to dealing with walk-ins plus digital orders. Retailers faced a lot of those challenges 10 years ago, they faced challenges around pricing, fulfillment, and how do they build new capabilities. They are dealing with a new source of demand, and fundamentally the problem was a lot of stores weren’t designed for accepting multi-channel origins.”
While an order-ahead app might be one way to connect online users to a physical location, there’s still plenty of work to do as most restaurants, coffee shops or typical stores aren’t tuned for a digital-first experience, Reddy said. That extends to even not having enough counter space to hold coffee cups that customers have ordered ahead of time, much less including things like NFC readers or QR codes — the latter of which has proved wildly popular and effective throughout Asia thanks to services like Alipay and WeChat. And that’s largely a result of iOS and Android, the main platforms in North America, not really doing a lot with QR codes for a very long time. Reddy said that North America was making some progress, especially when it came to NFC, but for now the company still has to figure out unique ways to connect users to those restaurants.
That can take a lot of different forms. While Ritual has to figure out how to create a seamless experience that covers a lot of different restaurants or shops, Reddy said the startup still has to offer those same stores some kind of control over the experience. That means giving those customers some value proposition beyond just telling them to sign up for another order-ahead app. Ritual, for example, lets restaurants who onboard Ritual customers themselves keep the full transaction for a purchase, while it takes a small slice off other transactions. That, in addition to other marketing options, helps restaurants control their own destiny, he said.
Of course, at its heart, it’s an order-ahead app — even with that social experience on top of it. And if you’ve ever looked at where to eat nearby with coworkers, you’ve probably checked Yelp or a few other places, and possibly even settled the argument with a giant order on an online ordering platform like DoorDash or Seamless. All these have already tapped that user experience, and it’s not clear if Ritual would be able to clear enough room should any one of them go after a similar experience while already having that customer and user relationship, in addition to being the spot customers go already. In the end, Reddy says that it’ll come down to users having a few apps, and hopes that by offering restaurants flexibility and focusing on the hyper-local idea of just a single office building will help build up that moat.
“The way that things have played out in Asia [with platforms like WeChat] is exactly striking the right balance between a platform and giving stores control,” Reddy said. “When you think of the consumer view, people — for the same reason you don’t have 10 retail apps — don’t have 10 food apps. You’re not gonna download an app for every neighborhood spot. It’s not that these apps are bad or don’t work well, people are just not gonna download 10 apps. There’s gonna be a handful of platforms people are going to use to access their neighborhoods. We have to have a unified platform, but give restaurant partners enough control, not only over being able to speak with their customers, but control for the look and feel of their storefront. That’s the middle ground we’re looking to find, which we think is a win for customers and our storefronts.”
CEO David Mandelbrot is in Shenzhen, China this week to announce the program, which is designed to help Chinese entrepreneurs reach a global audience. In an email, he told me:
The China Pilot Program is officially out of pilot phase — today, we are officially launching the Indiegogo Global Fast Track. During the pilot phase, the team experimented with different ways to help service Chinese brands and manufacturers who were looking to launch products overseas. After helping companies raise over $100 million and launch over 3,000 China-based projects over two years time, the team has finalized its new suite of services.
Those services include guidance around crowdfunding and marketing in the United States and other countries, access to a network of more than 65 service providers (including retailers and marketing firms, as well as Indiegogo’s manufacturing partner Arrow Electronics and shipping partner Ingram Micro) and Chinese-to-English consultation with bilingual staff.
Even while in the pilot phase, Indiegogo has had some success stories in helping Chinese companies launch globally. For example, Bluetooth headphone company crazybaby raised more than $4 million across three campaigns.
GV (formerly Google Ventures) is leading this round, according to the report by Axios, as the massive land grab for a stake in the scooter wars continues to heat up — whether that’s funding or actual scooters piling up on the sidewalk. Both companies have faced pushback from some city regulators (probably on the basis of tripping over them and falling on your face), but it still means the venture community is still salivating over potentially the next major mode of metropolitan transportation. Most venture investors in the Valley argue scooters make sense for short trips throughout areas that are just too far to be considered a trek, but too close that it would be a waste of time and money to call a ride share like Uber or Lyft.
Given that Uber exposed a massive hole for easier transportation in major metropolitan areas — and potentially replacing cars in those areas — getting into the next big transportation revolution is more than tempting enough for firms like GV (which is also an investor in Uber). Lime was previously reported to be seeking up to $500 million in funding and was taking meetings with some major firms in Silicon Valley over the past few weeks. It might not get that, but a $250 million influx might be plenty to try to continue to ramp up its business and get more rides on board. Axios is reporting that Lime has told investors users have taken 4.2 million rides and each scooter gets 8 to 12 rides per day.
Still, while it’s not $500 million, there’s plenty of interest in the on-demand scooter business — challenges of keeping them charged and intact included — that Bird has authorized the sale of up to $200 million in new shares at a $1 billion valuation just months after its previous round. So it might not be surprising if this, too, ends up as kind of a rolling process where Lime eventually gets all the capital it sought.
Bird, the scooter startup whose scooters you might have seen fallen over on the sidewalk in a major metro area, has authorized a new $200 million round of funding that could value the startup at around $1 billion post-money, according to a certificate of incorporation filed in Delaware.
The latest Bird round has been pretty widely reported, suggesting that the company is raising $150 million at a $1 billion valuation. That, too, comes amid a big effort by competitor Lime to raise a big funding round. These documents indicate that the company has authorized the sale of those shares, though it may not fully fill out the round. The certificate of incorporation document was provided be Lagniappe Labs, creator of the Prime Unicorn Index.
The document indicates that Bird has authorized the sale of 31.5 million new shares in its financing round at a value of $6.15 per share, which if fully sold could net the startup as much as $200 million in this round. This round would value the company at just over $1 billion, a new financing round that follows up a $100 million round announced in March.
These kinds of rolling rounds are not completely uncommon. Instead of bundling everything together in a single round, startups may sometimes have a process that includes follow-on investment rounds, of which this may be a component. The last funding round in March valued the company at around $300 million.
Needless to say, scooters are a hot market right now even if they are facing a lot of friction when it comes to dealing with leaving their scooters everywhere around cities. But running startups that are hardware-focused — especially on-demand ones that have to manage a network of scooters that need to have enough of a charge to get someone from point A to point be, lest they have a bad experience and switch to an alternative, can be an expensive proposition. The hardware component itself, too, can be a tough business.