Menu

Timesdelhi.com

March 21, 2019
Category archive

Pinterest

Flight-hailing startup BlackBird raises $10 million to replace driving with flying

in air travel/Airbnb/Andrew Swain/Blackbird/california/Delhi/eBay/Francoise Brougher/Google/India/Lyft/new enterprise associates/pilot/Pinterest/Politics/tahoe/TC/Transportation by

The origin story of BlackBird, a startup that links travelers to planes and commercial pilots through an app, didn’t begin with air travel. It was prompted by car sickness.

BlackBird CEO and founder Rudd Davis, who was getting his pilot’s license at the time, asked his flight instructor if he would fly his family to Tahoe because his son gets terribly sick every time they traveled by car. What Rudd discovered was an incredible experience that was far more affordable than he realized. 

Davis launched the company in 2016 and has spent the past two years honing in on the business model as well as adding commercial pilots and members. Now, with fresh capital from New Enterprise Associates, BlackBird is ready to spread its wings. 

The company announced Tuesday it has raised $10 million in a Series A round led by NEA. NEA partner Jonathan Golden, who previously worked at Airbnb, has joined the BlackBird board of directors alongside Francoise Brougher of Pinterest, Square and Google, and Andrew Swain, who also is from Airbnb.

BlackBird has also hired Brian Hsu, who spent a decade at eBay and most recently was vice president of supply at Lyft, as chief operating officer. Davis is counting on Hsu, who has experience scaling marketplaces, to help BlackBird expand its membership and reach.

 

The company will use its new injection of capital to scale up, in terms of users, pilots and employees.

BlackBird currently has more than 700 commercial pilots who fly passengers between 50 and 500 miles from and within California. For now, Davis said this is a self-imposed geographic restriction.

“We’re trying to build up density and build up the network and optimize it before we start replicating it to other geographies,” Davis said.

It does face challenges. BlackBird has to find that price-per-seat sweet spot, which is largely driven by how many users and pilots are on the platform. Seats can be around $80 or upwards of $900, depending on the route, pilot availability and demand. And BlackBird must fight misconceptions of what and who the platform is designed for.

“A lot of people have looked at this space before, and really have kind of come up empty handed,” said Golden, who was a seed investor in BlackBird before joining NEA.

What makes BlackBird so compelling, Golden added, is that it’s not about luxury travel, but instead about how to actually replace driving through flights, which is really compelling.

“When most people think about kind of flying non-commercially, they think about huge jets with couches and for billionaires,” Davis said.And that is not the entirety of general aviation; there’s a huge aspect of aviation that is flying in smaller planes. It just hasn’t really been as accessible.”

News Source = techcrunch.com

Airbnb, Automattic and Pinterest top rank of most acquisitive unicorns

in Aileen Lee/Airbnb/Automattic/blockspring/coinbase/Column/commuting/cowboy ventures/CrunchBase/Delhi/Docker/flatiron school/India/Italy/Lyft/M&A/neologisms/Neutrino/Pinterest/Politics/Sprinklr/Startups/SurveyMonkey/TC/transport/Uber/unicorn/unity-technologies/Venture Capital/vox media/WeWork by

It takes a lot more than a good idea and the right timing to build a billion-dollar company. Talent, focus, operational effectiveness and a healthy dose of luck are all components of a successful tech startup. Many of the most successful (or, at least, highest-valued) tech unicorns today didn’t get there alone.

Mergers and acquisitions (M&A) can be a major growth vector for rapidly scaling, highly valued technology companies. It’s a topic that we’ve covered off and on since the very first post on Crunchbase News in March 2017. Nearly two years later, we wanted to revisit that first post because things move quickly, and there is a new crop of companies in the unicorn spotlight these days. Which ones are the most active in the M&A market these days?

The most acquisitive U.S. unicorns today

Before displaying the U.S. unicorns with the most acquisitions to date, we first have to answer the question, “What is a unicorn?” The term is generally applied to venture-backed technology companies that have earned a valuation of $1 billion or more. Crunchbase tracks these companies in its Unicorns hub. The original definition of the term, first applied in a VC setting by Aileen Lee of Cowboy Ventures back in late 2011, specifies that unicorns were founded in or after 2003, following the first tech bubble. That’s the working definition we’ll be using here.

In the chart below, we display the number of known acquisitions made by U.S.-based unicorns that haven’t gone public or gotten acquired (yet). Keep in mind this is based on a snapshot of Crunchbase data, so the numbers and ranking may have changed by the time you read this. To maintain legibility and a reasonable size, we cut off the chart at companies that made seven or more acquisitions.

As one would expect, these rankings are somewhat different from the one we did two years ago. Several companies counted back in early March 2017 have since graduated to public markets or have been acquired.

Who’s gone?

Dropbox, which had acquired 23 companies at the time of our last analysis, went public weeks later and has since acquired two more companies (HelloSign for $230 million in late January 2019 and Verst for an undisclosed sum in November 2017) since doing so. SurveyMonkey, which went public in September 2018, made six known acquisitions before making its exit via IPO.

Who stayed?

Which companies are still in the top ranks? Travel accommodations marketplace giant Airbnb jumped from number four to claim Dropbox’s vacancy as the most acquisitive private U.S. unicorn in the market. Airbnb made six more acquisitions since March 2017, most recently Danish event space and meeting venue marketplace Gaest.com. The still-pending deal was announced in January 2019.

WordPress developer and hosting company Automattic is still ranked number two. Automattic  href=”https://www.crunchbase.com/acquisition/automattic-acquires-atavist–912abccd”>acquired one more company — digital publication platform Atavist — since we last profiled unicorn M&A. Open-source software containerization company Docker, photo-sharing and search site Pinterest, enterprise social media management company Sprinklr and venture-backed media company Vox Media remain, as well.

Who’s new?

There are some notable newcomers in these rankings. We’ll focus on the most notable three: The We CompanyCoinbase and Lyft. (Honorable mention goes to Stripe and Unity Technologies, which are also new to this list.)

The We Company (the holding entity for WeWork) has made 10 acquisitions over the past two years. Earlier this month, The We Company bought Euclid, a company that analyzes physical space utilization and tracks visitors using Wi-Fi fingerprinting. Other buyouts include Meetup (a story broken by Crunchbase News in November 2017) reportedly for $200 million. Also in late 2017, The We Company acquired coding and design training program Flatiron School, giving the company a permanent tenant in some of its commercial spaces.

In its bid to solidify its position as the dominant consumer cryptocurrency player, Coinbase has been on quite the M&A tear lately. The company recently announced its plans to acquire Neutrino, a blockchain analytics and intelligence platform company based in Italy. As we covered, Coinbase likely made the deal to improve its compliance efforts. In January, Coinbase acquired data analysis company Blockspring, also for an undisclosed sum. The crypto company’s other most notable deal to date was its April 2018 buyout of the bitcoin mining hardware turned cryptocurrency micro-transaction platform Earn.com, which Coinbase acquired for $120 million.

And finally, there’s Lyft, the more exclusively U.S.-focused ride-hailing and transportation service company. Lyft has made 10 known acquisitions since it was founded in 2012. Its latest M&A deal was urban bike service Motivate, which Lyft acquired in June 2018. Lyft’s principal rival, Uber, has acquired six companies at the time of writing. Uber bought a bike company of its own, JUMP Bikes, at a price of $200 million, a couple of months prior to Lyft’s Motivate purchase. Here too, the Lyft-Uber rivalry manifests in structural sameness. Fierce competition drove Uber and Lyft to raise money in lock-step with one another, and drove M&A strategy as well.

What to take away

With long-term business success, it’s often a chicken-and-egg question. Is a company successful because of the startups it bought along the way? Or did it buy companies because it was successful and had an opening to expand? Oftentimes, it’s a little of both.

The unicorn companies that dominate the private funding landscape today (if not in the number of deals, then in dollar volume for sure) continue to raise money in the name of growth. Growth can come the old-fashioned way, by establishing a market position and expanding it. Or, in the name of rapid scaling and ostensibly maximizing investor returns, M&A provides a lateral route into new markets or a way to further entrench the status quo. We’ll see how that strategy pays off when these companies eventually find the exit door .

News Source = techcrunch.com

Startups Weekly: Flexport, Clutter and SoftBank’s blood money

in alex wilhelm/allianz/Bessemer Venture Partners/Coatue Management/connie loizos/Delhi/DoorDash/dragoneer investment group/DST Global/Flexport/founders fund/GIC/India/Ingrid Lunden/Keith Rabois/Lyft/mindworks ventures/Naspers/Panda Selected/Pinterest/Politics/sequoia capital/Shunwei Capital/Startups/susa ventures/TC/the wall street journal/Uber/Venture Capital/WaitWhat/Y Combinator by

The Wall Street Journal published a thought-provoking story this week, highlighting limited partners’ concerns with the SoftBank Vision Fund’s investment strategy. The fund’s “decision-making process is chaotic,” it’s over-paying for equity in top tech startups and it’s encouraging inflated valuations, sources told the WSJ.

The report emerged during a particularly busy time for the Vision Fund, which this week led two notable VC deals in Clutter and Flexport, as well as participated in DoorDash’s $400 million round; more on all those below. So given all this SoftBank news, let us remind you that given its $45 billion commitment, Saudi Arabia’s Public Investment Fund (PIF) is the Vision Fund’s largest investor. Saudi Arabia is responsible for the planned killing of dissident journalist Jamal Khashoggi.

Here’s what I’m wondering this week: Do CEOs of companies like Flexport and Clutter have a responsibility to address the source of their capital? Should they be more transparent to their customers about whose money they are spending to achieve rapid scale? Send me your thoughts. And thanks to those who wrote me last week re: At what point is a Y Combinator cohort too big? The general consensus was this: the size of the cohort is irrelevant, all that matters is the quality. We’ll have more to say on quality soon enough, as YC demo days begin on March 18.

Anyways…

Surprise! Sort of. Not really. Pinterest has joined a growing list of tech unicorns planning to go public in 2019. The visual search engine filed confidentially to go public on Thursday. Reports indicate the business will float at a $12 billion valuation by June. Pinterest’s key backers — which will make lots of money when it goes public — include Bessemer Venture Partners, Andreessen Horowitz, FirstMark Capital, Fidelity and SV Angel.

Ride-hailing company Lyft plans to go public on the Nasdaq in March, likely beating rival Uber to the milestone. Lyft’s S-1 will be made public as soon as next week; its roadshow will begin the week of March 18. The nuts and bolts: JPMorgan Chase has been hired to lead the offering; Lyft was last valued at more than $15 billion, while competitor Uber is valued north of $100 billion.

Despite scrutiny for subsidizing its drivers’ wages with customer tips, venture capitalists plowed another $400 million into food delivery platform DoorDash at a whopping $7.1 billion valuation, up considerably from a previous valuation of $3.75 billion. The round, led by Temasek and Dragoneer Investment Group, with participation from previous investors SoftBank Vision Fund, DST Global, Coatue Management, GIC, Sequoia Capital and Y Combinator, will help DoorDash compete with Uber Eats. The company is currently seeing 325 percent growth, year-over-year.

Here are some more details on those big Vision Fund Deals: Clutter, an LA-based on-demand storage startup, closed a $200 million SoftBank-led round this week at a valuation between $400 million and $500 million, according to TechCrunch’s Ingrid Lunden’s reporting. Meanwhile, Flexport, a five-year-old, San Francisco-based full-service air and ocean freight forwarder, raised $1 billion in fresh funding led by the SoftBank Vision Fund at a $3.2 billion valuation. Earlier backers of the company, including Founders Fund, DST Global, Cherubic Ventures, Susa Ventures and SF Express all participated in the round.

Here’s your weekly reminder to send me tips, suggestions and more to kate.clark@techcrunch.com or @KateClarkTweets

Menlo Ventures has a new $500 million late-stage fund. Dubbed its “inflection” fund, it will be investing between $20 million and $40 million in companies that are seeing at least $5 million in annual recurring revenue, growth of 100 percent year-over-year, early signs of retention and are operating in areas like cloud infrastructure, fintech, marketplaces, mobility and SaaS. Plus, Allianz X, the venture capital arm attached to German insurance giant Allianz, has increased the size of its fund to $1.1 billion and London’s Entrepreneur First brought in $115 million for what is one of the largest “pre-seed” funds ever raised.

Flipkart co-founder invests $92M in Ola
Redis Labs raises a $60M Series E round
Chinese startup Panda Selected nabs $50M from Tiger Global
Image recognition startup ViSenze raises $20M Series C
Circle raises $20M Series B to help even more parents limit screen time
Showfields announces $9M seed funding for a flexible approach to brick-and-mortar retail
Podcasting startup WaitWhat raises $4.3M
Zoba raises $3M to help mobility companies predict demand

Indian delivery men working with the food delivery apps Uber Eats and Swiggy wait to pick up an order outside a restaurant in Mumbai. ( INDRANIL MUKHERJEE/AFP/Getty Images)

According to Indian media reports, Uber is in the final stages of selling its Indian food delivery business to local player Swiggy, a food delivery service that recently raised $1 billion in venture capital funding. Uber Eats plans to sell its Indian food delivery unit in exchange for a 10 percent share of Swiggy’s business. Swiggy was most recently said to be valued at $3.3 billion following that billion-dollar round, which was led by Naspers and included new backers Tencent and Uber investor Coatue.

Lalamove, a Hong Kong-based on-demand logistics startup, is the latest venture-backed business to enter the unicorn club with the close of a $300 million Series D round this week. The latest round is split into two, with Hillhouse Capital leading the “D1” tranche and Sequoia China heading up the “D2” portion. New backers Eastern Bell Venture Capital and PV Capital and returning investors ShunWei Capital, Xiang He Capital and MindWorks Ventures also participated.

Longtime investor Keith Rabois is joining Founders Fund as a general partner. Here’s more from TechCrunch’s Connie Loizos: “The move is wholly unsurprising in ways, though the timing seems to suggest that another big fund from Founders Fund is around the corner, as the firm is also bringing aboard a new principal at the same time — Delian Asparouhov — and firms tend to bulk up as they’re meeting with investors. It’s also kind of time, as these things go. Founders Fund closed its last flagship fund with $1.3 billion in 2016.”

If you enjoy this newsletter, be sure to check out TechCrunch’s venture capital-focused podcast, Equity. In this week’s episode, available here, Crunchbase News editor-in-chief Alex Wilhelm and I discuss Pinterest’s IPO, DoorDash’s big round and SoftBank’s upset LPs.

Want more TechCrunch newsletters? Sign up here.

News Source = techcrunch.com

Pinstagram? Instagram code reveals Public Collections feature

in Apps/Delhi/India/instagram/mobile/Pinterest/Politics/Social/Startups by

Instagram is threatening to attack Pinterest just as it files to go public the same way the Facebook-owned app did to Snapchat. Code buried in Instagram for Android shows the company has prototyped an option to create public “Collections” to which multiple users can contribute. Instagram launched private Collections two years ago to let you Save and organize your favorite feed posts. But by allowing users to make Collections public, Instagram would become a direct competitor to Pinterest.

Instagram public Collections could spark a new medium of content curation. People could use the feature to bundle together their favorite memes, travel destinations, fashion items, or art. That could cut down on unconsented content stealing that’s caused backlash against meme “curators” like F*ckJerry by giving an alternative to screenshotting and reposting other people’s stuff. Instead of just representing yourself with your own content, you could express your identity through the things you love — even if you didn’t photograph them yourself. And if that sounds familiar, you’ll understand why this could be problematic for Pinterest’s upcoming $12 billion IPO.

The “Make Collection Public” option was discovered by frequent TechCrunch tipster and reverse engineering specialist Jane Machun Wong. It’s not available to the public, but from the Instagram for Android code, she was able to generate a screenshot of the prototype. It shows the ability to toggle on public visibility for a Collection, and tag contributors who can also add to the Collection. Previously, Collections was always a private, solo feature for organizing your bookmarks gathered through the Instagaram Save feature Instagram launched in late 2016.

Instagram told TechCrunch “we’re not testing this” which is its standard response to press inquiries about products that aren’t available to any public users, but that are in internal development. It could be a while until Instagram does start experimenting publicly with the feature and longer before a launch, and the company could always scrap the option. But it’s a sensible way to give users more to do and share on Instagram, and the prototype gives insight into the app’s strategy. Facebook launched its own Pinterest -style shareable Sets in 2017 and launched sharable Collections in December.

Currently there’s nothing in the Instagram code about users being able to follow each other’s Collections, but that would seem like a logical and powerful next step. Instagrammers can already follow hashtags to see new posts with them routed to their feed. Offering a similar way to follow Collections could turn people into star curators rather than star creators without the need to rip off anyone’s content. Speaking of infuencers, Wong also spotted Instagram prototyping IGTV picture-in-picture so you could keep watching a long-form video after closing the app and navigating the rest of your phone.

Instagram lets users Save posts which can then be organized into Collections

Public Collections could fuel Instagram’s commerce strategy that Mark Zuckerberg recently said would be a big part of the roadmap. Instagram already has a personalized Shopping feed in Explore, and The Verge’s Casey Newton reported last year that Instagram was working on a dedicated shopping app. It’s easy to imagine fashionistas, magazines, and brands sharing Collections of their favorite buyable items.

It’s worth remembering that Instagram launched its copycat of Snapchat Stories just six months before Snap went public. As we predicted, that reduced Snapchat’s growth rate by 88 percent. Two years later, Snapchat isn’t growing at all, and its share price is at just a third of its peak. With over 1 billion monthly and 500 million daily users, Instagram is four times the size of Pinterest. Instagram loyalists might find it’s easier to use the ‘good enough’ public Collections feature where they already have a social graph than try to build a following from scratch on Pinterest.

News Source = techcrunch.com

Daily Crunch: Pinterest files to go public

in Daily Crunch/Delhi/India/Pinterest/Politics/TC by

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.

1. Pinterest files confidentially to go public

The business has confidentially submitted paperwork to the Securities and Exchange Commission for an initial public offering slated for later this year, according to a report from The Wall Street Journal.

Earlier reports indicated the company was planning to debut on the stock market in April. In late January, Pinterest took its first official step toward a 2019 IPO, hiring Goldman Sachs and JPMorgan Chase as lead underwriters for its offering.

2. Google ends forced arbitration for employees

This is a direct response to a group of outspoken Google employees protesting the company’s arbitration practices. Forced arbitration ensures that workplace disputes are settled behind closed doors and without any right to an appeal, effectively preventing employees from suing companies.

3. Facebook will shut down its spyware VPN app Onavo

Facebook will end its unpaid market research programs and proactively take its Onavo VPN app off the Google Play store in the wake of backlash following TechCrunch’s investigation about Onavo code being used in a Facebook Research app that sucked up data about teens.

In this photo taken on February 6, 2019, Indian delivery men working with the food delivery apps Uber Eats and Swiggy wait to pick up an order outside a restaurant in Mumbai.

4. Uber is reportedly close to making a tactical exit from India’s food delivery industry

India’s Economic Times is reporting that Uber is in the final stages of a deal that would see Swiggy eat up Uber Eats in India in exchange for giving the U.S. ride-hailing firm a 10 percent share of its business.

5. Google’s ‘Digital Wellbeing’ features hit more devices, including Samsung Galaxy S10

Initially available exclusively to Pixel and Android One device owners, Digital Wellbeing’s feature set is now rolling out to Nokia 6 and Nokia 8 devices with Android Pie, as well as on the new Samsung Galaxy S10.

6. DoorDash raises $400M round, now valued at $7.1B

Recent data from Second Measure shows that DoorDash has overtaken Uber Eats in U.S. market share — for online food delivery, it now comes in second to Grubhub.

7. Venmo launches a ‘limited edition’ rainbow debit card for its payment app users

The new rainbow card will be offered until supplies last, Venmo says. And existing card holders can request this card as a replacement for their current card, if they choose.

News Source = techcrunch.com

1 2 3 6
Go to Top