• Watch Out, VCs, Chris Farmer Plans to Massively Disrupt the Industry

    BN-KT144_ChrisF_G_20151013194954For years, Chris Farmer worked as a venture partner at General Catalyst Partners, helping develop its then-nascent seed-investing program while simultaneously working on a big idea: a database that could help screen engineering talent.

    Today, that idea forms the basis of SignalFire, a San Francisco-based investment firm that Farmer, who is its sole general partner, calls the “most quantitative fund in the world.” He says to “think of us as the world’s most elite angel group, with a central institutional fund, built on top of a mini proprietary Google.”

    It all sounds pretty audacious, of course, but there’s some “there” there, as we saw first-hand during a demonstration last week.

    According to Farmer, SignalFire’s platform, Beacon, tracks more than half a trillion data points that it collects from two million data sources, from patents to academics publications to open source contributions to financial filings.

    As a result, SignalFire is able to keep close tabs on the comings and goings of millions of engineers around the globe. And that’s just one piece of the picture. SignalFire also invests heavily in unstructured data, including raw consumer transactions that allow Beacon to see where consumers are spending their time and money — and which companies and sectors are growing or not.

    Much more here.

  • StrictlyVC: October 22, 2015

    Hi, everyone, happy Thursday!

    Sorry for the late send — we were on several back-to-back calls this a.m. Also, no column today. More tomorrow!

    —–

    Top News in the A.M.

    Nasdaq has agreed to buy SecondMarket to combine forces with the Nasdaq Private Market, reports TechCrunch. Terms of the deal aren’t being disclosed. The group will facilitate the exchange of shares for private companies, including DocuSign, Pinterest, Shazam and Tango. Bill Siegel, present CEO of SecondMarket, will lead the expanded Nasdaq Private Market business, which will be headquartered in both San Francisco and New York.

    Amazon‘s one-hour delivery service, Prime Now, has hit the Bay Area.

    —–

    New Fundings

    Ampy, a 1.5-year-old, Chicago-based kinetic charging battery startup — it makes a wearable spare battery pack charged by human movement — has raised $875,000 in seed funding led by Clean Energy Trust and NewGen Ventures, with participation from numerous angel investors. TechCrunch hasmore here.

    Bownty, a 4.5-year-old, Copenhagen, Denmark-based aggregator that collects, sorts and distributes deals from more than 100 deal sites in approximately 1,200 cities in Europe, has raised €3.4 million (roughly $3.9 million) in Series A funding. Backers include HOWZAT Partners, SEED Capital, and Bownty chairman Pia Vemmelund. More here.

    Clutter, a 2.5-year-old, L.A.-based high-tech self-storage service, has raised $9 million in Series A funding led by Sequoia Capital. The company has now raised $12.3 million altogether. The WSJ has more here.

    DigiTour Media, a five-year-old, L.A.-based company that produces concerts and other live events that feature social media stars, has raised an undisclosed amount of funding from Viacom, LionTree Entertainment and Slow Ventures. More here.

    Honestbee, a year-old, Singapore-based on-demand grocery concierge and delivery service startup, has raised $15 million in funding led by Formation 8, with participation from Pejman Mar Ventures, Gideon Yu and Owen Van Natta. Tech In Asia has more here.

    Insureon, a Chicago-based online provider of small business insurance, has raised $31 million in new funding led by Oak HC/FT, with participation from earlier backer Accretive. The Chicago Tribune has more here.

    Kaleo Software, a three-year-old, El Segundo, Ca.-based enterprise cloud platform for capturing and sharing employee expertise, has raised $7 million in funding led by OMERS Ventures, with participation from Saturn PartnersMore here.

    MoneyForward, a Tokyo, Japan-based online financial management startup, has raised JPY 1.6 billion (US$13.3 million) in Series C funding from SBI Holdings, Shizuoka Bank, Yamaguchi Financial Group, Toho Bank, Fenox Venture Capital, Mitsubishi UFJ Trust and Banking Corporation, and Mitsui & Co. Tech in Asia has more here. The company had raised a separate,$12.6 million round, less than a year ago.

    Numerify, a three-year-old, Cupertino, Ca.-based company that sells IT business analytics applications to companies, has raised $37.5 million in Series C funding led by Tenaya Capital. Silicon Valley Bank and Four Rivers Group also joined the round, along with earlier backers Sequoia Capital and Lightspeed Venture Partners. The company has now raised more than $60 million altogether. Vator has more here.

    Opinio, a six-month-old, Bangalore, India-based hyperlocal delivery startup, has raised $7 million in Series A funding from Accel Partners, Sands Capital and the logistics firm Delvhivery. Tech in Asia has more here.

    Periscope Data, a 3.5-year-old, San Francisco-based startup that has built a platform for data scientists to create fast, detailed and customized visualizations, has raised $9.5 million in Series A funding led by by DFJ, along with participation from earlier backers AngelPad, Susa Ventures and Eric Schmidt’s Innovation Endeavors. TechCrunch has more here.

    Playful Corp., a three-year-old, McKinney, Tex.-based virtual-reality gaming studio founded by Paul Bettner, cofounder of the once-popular mobile game “Words with Friends” (it sold to Zynga for a bundle in 2012), has raised $25 million from undisclosed investors. The WSJ has more here.

    Portal Instruments, a three-year-old, Cambridge, Ma.-based drug delivery company focused on injectable biologics for chronic diseases, has raised $25 million in Series B funding led by 5AM Ventures. Earlier backer Sanofi Sunrise also joined the round. Med Device Online has more here.

    Silk Road Medical, an eight-year-old, Sunnyvale, Ca.-based company that makes medical devices for neurovascular diseases, has raised $57 million in equity and debt financing. CRG led the debt financing. It also participated in the company’s equity funding, with Warburg Pincus and The Vertical Group. Fierce Medical Devices has more here.

    Squad, a months-old, New York-based app that connects groups of friends together (including around events or nights out), has raised $1.7 million in seed funding led by Lerer Hippeau Ventures and First Round Capital. TechCrunch has more here.

    Sunnova, a three-year-old, Houston, Tex.-based private residential solar service company, has raised $300 million in debt arranged by Credit Suisse and equity funding led by Triangle Peak Partners. Other equity investors include business development companies sponsored by Franklin Square Capital Partners. Sunnova had raised another giant round — $250 million — last November. More here.

    The18, a 1.5-year-old, Boulder, Co.-based online content and commerce platform for soccer enthusiasts, has raised $1 million in funding from unnamed individual investors. More here.

    Worthy, a three-year-old, New York-based online marketplace for pre-owned luxury goods, has raised $8 million in Series B funding led by Carmel Ventures, with participation from earlier investors, including Star Ventures founder Meir Barel. The company has previously raised more than $8.5 million. Finsmes has more here.

    —–

    New Funds

    General Mills is launching a new venture capital arm called 301 Inc. that will take stakes in small regional food-related startups that are looking for growth capital. Fortune has more here.

    According to Fortune’s Dan Primack, KKR is quietly raising its first-ever fund dedicated to growth equity investing in technology companies. Reportedly, the fund isn’t being marketed with a specific target, though KKR is committing to invest roughly $200 million.

    In Europe today, Google is opening up applications for startups and others who are interested in receiving grants from its Digital News Initiative Innovation Fund, a €150 million ($170 million) pool that the company has set aside for startups and others building new services, products and technologies for the news industry. Grants range from €50,000 to €1 million but there’s no cap and there are no strings attached, reports TechCrunch.

    Reach Capital, a new venture firm in Palo Alto, Ca. has raised a $53 million fund to back education-tech startups, reports Venture Capital Dispatch. Reach was spun out from the nonprofit New Schools Venture Fund earlier this year and will make seed investments of $100,000 to $500,000 and write follow-on checks of $1 million or more.

    —–

    Exits

    Publicly traded Ruckus Wireless has acquired Cloudpath Networks, a privately held company that makes secure Wi-Fi onboarding software. Terms of the deal haven’t been disclosed. Wireless Week has more here.

    —–

    IPOs

    Less than two weeks after Shield Therapeutics pulled the plug on its £110 million ($170 million) IPO, Acacia Pharma has yanked its, too, citing “volatility and uncertainty in global equity markets.” It’s looking like a trend. According to FierceBiotech: “While the window for life science IPOs in London has yet to shut completely . . . it has become much harder to persuade investors to part with large sums of money.”

    —–

    People

    Twitter co-founder and recently re-installed CEO Jack Dorsey kicked off the company’s big developer event with an apology for Twitter’s past behavior and a commitment to try to make it better. “Our relationship with developers got confusing, unpredictable.” More here.

    “Give us a few years,” says Uber CEO Travis Kalanick of taking the company public (as dozens of investors pound their fists into nearby walls).

    “I did find [Twitter] challenging to use at times and intimidating to use,” Omid Kordestani tells the WSJ in his first interview since being named executive chairman at Twitter last week.

    A former SpaceX employee has filed a class action lawsuit against the rocket company, saying hourly employees are regularly expected to work overtime hours without proper compensation. It’s at least the fourth lawsuit alleging SpaceX violated California labor law to be filed since 2014, reports the International Business Times.

    —–

    Jobs

    The private equity advisory business StepStone Group is looking to hire a research analyst. The job is in San Diego.

    —–

    Essential Reads

    Airbnb regrets its tone-deaf hotel ads and is taking them down “immediately.”

    Yesterday, YouTube made its top video creators an offer they can’t refuse (because their content will disappear otherwise).

    —–

    Detours

    Has it become impossible to prosecute white collar crime?

    —–

    Retail Therapy

    Smart Ped.

  • StrictlyVC: October 21, 2015

    Hi, everyone, hope your Wednesday is off to an auspicious start!

    We’re racing out the door a little early for an interview; please send any and all complaints to trumpforpresident@aol.com.

    —–

    Top News in the A.M.

    JP Morgan is about to make it easier for retail investors to gain access at the IPO price. The bank is announcing today that it will partner with Motif Investing to give ordinary investors the option to purchase shares in IPOs that it manages.

    Morgan Stanley downgraded Twitter stock to “underweight” this morning, with a price target of just $24 — down from the roughly $30 at which it was trading. (As of this writing it has fallen just 4 percent to $29.50.)

    Apple and Dropbox said yesterday that they do not support a controversial cybersecurity bill that critics say would give the government new powers to spy on Americans.

    —–

    Howdy Raises $1.5 Million from Top VCs to Build Apps for Slack

    Despite a checkered history with online platforms, developers are always looking for the next big distribution model and a small but growing number is betting Slack, the popular group-messaging platform, is the way to go.

    One such startup, Austin-based Howdy, may be the first to nab venture funding based largely on that vision. Specifically, the company, which has developed a customizable chat bot application that runs automated tasks for teams on Slack, has just nabbed $1.5 million in venture funding from Bloomberg Beta, True Ventures, a small angel group called Outlier and numerous individual investors.

    Howdy is first and foremost a time saver for now, especially when it comes to meetings. For example, after connecting to Slack, the app can simultaneously message each member of a team, collecting status updates that can be archived and viewed by everyone. The idea: to keep meetings from turning into one long catch-up session and enabling attendees to focus on decision-making instead. (Worth noting: Howdy can also be used to collect everyone’s lunch orders. It’s up to the team using it.)

    Howdy co-founder Ben Brown says the still-in-beta company will eventually charge customers on a monthly basis but that it’s a “little early to know the details.” What he says he does know is that providing applications, content and services via messaging applications is becoming a “huge opportunity.”

    More here.

    —–

    New Fundings

    Adjust, a 3.5-year-old, Berlin, Germany-based mobile app intelligence and analytics company, has raised $17 million in new funding led by Highland Europe. The company has now raised $30 million altogether. TechCrunch has more here.

    Cielo24, a three-year-old, Santa Barbara, Ca.-based company that delivers searchable captions for large media platform partners in the online education, enterprise, and entertainment markets, has raised $5 million in Series A funding led by ff Venture Capital, with participation from North Base Media, Pereg Ventures, Indicator Ventures and Wavemaker Partners. More here.

    Citus Data, a 4.5-year-old, San Francisco-based real-time big data company that’s helping drive advanced uses of Postgres, has raised $9.5 million in Series A funding led by Khosla Ventures, with participation from Data Collective and Vaizra Investments. More here.

    Collective Health, a two-year-old, San Mateo, Ca.-based enterprise health insurance services platform, has raised $81 million in Series C funding from Google Ventures, along with earlier backers New Enterprise AssociatesFounders Fund, Maverick Capital, Red Point Ventures and RRE Ventures. The company has now raised $119 million altogether. TechCrunch has more here.

     Conversocial, a six-year-old, New York and London-based customer relationship management software company that integrates with social media so support teams can answer question about brand products directly, has raised $11 million in new funding led by Dawn Capital, with participation from earlier backers Octopus Ventures and Draper Espirit. The company has now raised $22 million altogether. More here.

    Betabrand, a six-year-old, San Francisco-based online clothing company known for its limited batch clothing and bags, has raised $15 million in fresh capital co-led by Morgan Stanley and earlier backer Foundry Group. The company has now raised $29 million altogether. More here.

    Frontline Aerospace, an eight-year-old, Broomfield, Co.-based company focused on gas turbine engine efficiency technologies, has raised $2 million in new venture funding from undisclosed investors. More here.

    Gritstone Oncology, a months-old, San Francisco-based company that’s planning to develop personalized cancer therapeutics, has raised $102 million in Series A funding co-led by Versant Ventures and The Column Group, with participation from Clarus Ventures, Frazier Healthcare Partners, Redmile Group, and Casdin Capital. The Boston Globe has more here.

    Humacyte, an 11-year-old, Morrisville, N.C.-based developer of human tissue-based products for uses in regenerative medicine and vascular surgery, has raised $150 million in Series B funding from a long list of investors, including Access Industries, Bangkok Bank Public Company, Brady DouganPacific Eagle Asset Management, Reignwood Group and Gavril Yushvaev. Xconomy has more here.

    Mouth Foods, a five-year-old, Brooklyn, N.Y.-based e-commerce startup selling craft foods, wine and spirits, has raised $5.5 million in funding led by KarpReilly, a Greenwich, Cn., investment firm that specializes in e-commerce and food and beverage startups. Earlier backers Vocap Investment Partners and Jason Calacanis also joined the round, which brings the company’s total funding to $8.7 million. Crain’s New York Business has more here.

    Ourglass, a 3.5-year-old, Boston-based private social network for sharing with 12 or fewer connections, has raised $1.6 million in seed funding from General Catalyst Partners and other, unnamed investors. More here.

    Phenom People, a five-year-old, Horsham, Pa.-based service that customizes company job search pages for individuals, has raised $6 million in venture funding led by Sierra Ventures. TechCrunch has more here.

    Pyramid Analytics, a seven-year-old, Seattle-based business intelligence platform for the enterprise, has raised $30 million in new funding led by Viola Private Equity and return backer Sequoia Capital. The Seattle Times hasmore here.

    ROOY, a 1.5-year-old, San Francisco-based shoe design platform, has raised $3.4 million in seed funding led by Formation 8, with participation from Korea Investment Partners. More here.

    Science 37, a year-old, L.A.-based company that’s trying to bring clinical studies to patients (instead of vice versa), has raised $6.5 million in Series A funding led by Lux Capital and dRx Capital. More here.

    Solinea, a two-year-old, San Francisco-based software and services company that helps enterprises design and deploy their private clouds, has raised $4 million in Series A funding led by Translink Capital, with participation from its angel investors. TechCrunch has more here.

    Vittamed, a Boston-based developer of a non-invasive intracranial pressure monitor, has raised $10 million in Series A funding led by Xeraya Capital, with participation from return backer Imprimatur Capital. More here.

    ——

    New Funds

    Activant Capital Group, a five-year-old, Greenwich, Cn.-based growth-equity firm, is raising $250 million for two funds that will target retail technology and e-commerce companies, according to Venture Capital Dispatch.

    Progress Ventures, a five-year-old, Cambridge, Ma.-based early-stage investor, has raised $20 million for its third venture fund. The capital will be used to fund business-to-business, marketing and media technology companies, says the firm.

    —–

    Exits

    It’s official. Western Digital, the storage giant, has agreed to buy SanDisk for about $19 billion. The move follows speculation that SanDisk was shopping for a buyer. TechCrunch has more here.

    —–

    People

    Jill Hazelbaker, Snapchat’s VP of communications and public policy, is the eighth Snapchat executive to leave this year, notes Business Insider. As Recode reported early yesterday, she’s joining Uber and reporting to her old boss at Google, Rachel Whetstone.

    Speaking with Business Insider yesterday, Bill Maris of Google Ventures drove over Theranos, then threw the truck in reverse. Explaining why GV — which has a strong focus on life sciences — didn’t invest in the now-controversy-embroiled diagnostics company, he said, “We looked at it a couple times but there was so much hand-waving — like, Look over here! — that we couldn’t figure it out. So, we just had someone from our life science team go into Walgreens and take the test. And it wasn’t that difficult for anyone to determine that things may not be what they seem here.”

    Home services marketplace Thumbtack has hired a new CFO, Servaes Tholen, roughly a month after closing on a fresh $125 million at a $1.3 billionvaluation. Tholen was previously CFO at eBay and Upwork (formerly Elance-oDesk). Thumbtack has also named Mitt Romney’s former general counsel Katie Biber as lead in-house counsel. Recode has the story here.

    ——

    Jobs

    J&J Innovation, a part of Johnson & Johnson’s family of companies, is looking to a hire a venture investments principal in Menlo Park, Ca.

    —–

    Data

    New data highlights that there’s really no such thing as bad publicity when it comes to the consumer Internet. Even when there’s a dip in usage following bad news, business resumes before too long. The Information has the story here. (Subscribers only.)

    —–

    Essential Reads

    Apple has told a federal judge that it “would be impossible” to access user data on a locked iPhone running one of the newer operating systems.

    The New York Times is collaborating on a virtual reality project with Google and planning to distribute more than a million cardboard VR viewers to its print subscribers.

    —–

    Detours

    How innovations in biological science may change the fairness, safety and meaning of sports. (Great report.)

    An artist transforms her parents’ home into a creepy visage for Halloween.

    Tesla owners love their cars, but they may have trouble reselling them.

    —–

    Retail Therapy

    Stupendo.

  • Howdy Raises $1.5 Million from Top VCs to Build Apps for Slack

    howdyDespite a checkered history with online platforms, developers are always looking for the next big distribution model and a small but growing number is betting Slack, the popular group-messaging platform, is the way to go.

    One such startup, Austin-based Howdy, may be the first to nab venture funding based largely on that vision. Specifically, the company, which has developed a customizable chat bot application that runs automated tasks for teams on Slack, has just nabbed $1.5 million in venture funding from Bloomberg Beta, True Ventures, a small angel group called Outlier and numerous individual investors.

    Howdy is first and foremost a time saver for now, especially when it comes to meetings. For example, after connecting to Slack, the app can simultaneously message each member of a team, collecting status updates that can be archived and viewed by everyone. The idea: to keep meetings from turning into one long catch-up session and enabling attendees to focus on decision-making instead. (Worth noting: Howdy can also be used to collect everyone’s lunch orders. It’s up to the team using it.)

    Howdy co-founder Ben Brown says the still-in-beta company will eventually charge customers on a monthly basis but that it’s a “little early to know the details.” What he says he does know is that providing applications, content and services via messaging applications is becoming a “huge opportunity.”

    More here.

  • StrictlyVC: October 20, 2015

    Hi, happy Tuesday, everyone!

    —–

    Top News in the A.M.

    Venture capital funds should face less red tape across the 28-nation European Union so there can be more of them and in more regions, EU Financial Services Commissioner Jonathan Hill said at a conference earlier today in Brussels. Here’s what he has in mind.

    —–

    Crisis Experts Debate Amazon’s Latest Lob

    When a New York Times piece came out in August that described Amazon’s workplace culture as “bruising,” Amazon cofounder and CEO Jeff Bezos acted quickly to dampen the story’s blow. He wrote a memo to employees saying the account “doesn’t describe the Amazon I know” and pointed out a separate piece by an Amazon engineer who described the Times article as “utter reader bait.”

    It was a smart approach, suggests Marina Ein, whose Washington, D.C.-based crisis communications firm has represented Michael Milken and Dominique Strauss-Kahn, among others. “I thought the company was acting on very good advice,” she says.

    More confounding to Ein is a new post authored by former journalist and current Amazon spokesman Jay Carney, in which Carney not only systematically attacks the now two-month-old Times piece for being imbalanced but works to undermine several former employees quoted in the story.

    One is former site merchandiser Bo Olson, who spent roughly 20 months at Amazon and had told the Times for its story, “You walk out of a conference room and you’ll see a grown man covering his face . . . Nearly every person I worked with, I saw cry at their desk.”

    Wrote Carney of Olson today: “His brief tenure at Amazon ended after an investigation revealed he had attempted to defraud vendors and conceal it by falsifying business records. When confronted with the evidence, he admitted it and resigned immediately.”

    “I think it’s crazy,” says Ein of Carney’s unexpected missive.

    More here.

    —–

    New Fundings

    AgentDesks, a year-old, San Francisco-based mobile-first CRM for real estate agents that helps realtors track tasks, find property leads, import contacts, and store notes, has raised $2.95 million in seed funding from Sierra VenturesCota Capital and Vegas Tech Fund, among others. The company was incubated at the accelerator program, AngelPad, late last year. The Economic Times has more here.

    Amino, a two-year-old, San Francisco-based digital healthcare startup that’s been quietly amassing a database of U.S. consumer healthcare data since late 2013 to make it easier for consumers to locate a doctor or specialist with experience treating their condition, has raised $19.4 million in pre-launch funding from Accel Partners, CRV, Rock Health and more than a dozen individual investors. TechCrunch has much more here.

    Attune Technologies, a six-year-old, Singapore-based startup that makes cloud-based software for hospitals and labs, has raised $10 million in Series B funding from Qualcomm Ventures and returning investor Norwest Venture Partners. TechCrunch has more here.

    Illusive Networks, a 1.5-year-old, Tel Aviv, Israel-based cybersecurity company focused around so-called deception technology, has raised $22 million in Series B funding led by new investor New Enterprise Associates, with participation from new and earlier backers, including Bessemer Venture Partners, Marker LLC, Citi Ventures, and Eric Schmidt’s Innovation Endeavors.

    Mobvoi, a three-year-old, Beijing, China-based company specializing in mobile voice search technology, has raised an undisclosed amount of Series C, including from Google, which has become a minority shareholder. Altogether, the company has raised $75 million to date. TechCrunch has more here.

    Redox, a 1.5-year-old, Madison, Wi.-based health care software development tool-maker, has raised $3.5 million in  funding round led by .406 Ventures, with participation from Flybridge Capital Partners, and HealthX Ventures, a venture capital fund that formed in Madison to invest in digital health companies. The Milwaukee Journal Sentinel has more here.

    Stitch Labs, a four-year-old, San Francisco-based maker of online inventory control software, has raised $15 million in Series B funding led by Triangle Peak Partners. The company has now raised $23 million altogether. More here.

    Sweeten, a four-year-old, New York-based home renovation matchmaker that connects contractors with customers, has raised $3.5 million in Series A funding led by Navitas Capital, with participation from Overnight Capital and Gotham Gal Ventures. More here.

    Yidao Yongche, a five-year-old, Beijing, China-based ride-hailing app, says that a unit of Beijing-based technology company LeTV has agreed to invest $700 million in the firm in return for a 70 percent stake. The funding brings the total capital raised by the company to at least $790 million, shows CrunchBase. Reuters has more here.

    ZeroStack, a 1.5-year-old, Mountain View, Ca.-based developer of self-service and scale-out private clouds, has raised $16 million in Series B funding led by Formation 8, with participation from from earlier investor Foundation Capital and company board member Mark Leslie. More here.

    Zignal Labs, a four-year-old, San Francisco-based real-time media analytics company, has raised $15 million in new funding led by earlier investors Andy Ballard of Figtree Partners; Mitch Cohen of Ross Investment Associates; and the company’s own cofounder and chairman, Jim Hornthal.

    —–

    New Funds

    S2G Ventures in Chicago has closed on $125 million for a debut venture fund to invest exclusively in agriculture and food ventures. The firm has already backed eight companies, and deployed 18 percent of its fund to these deals. Venture Capital Dispatch has the story here.

    —–

    Exits

    Gone, a year-old app that helps users sell items they no longer want in their home, has acquired FOBO, a young Y Combinator alum that had pivoted into an auction-based service that lets users sell their things via a mobile app. According to CrunchBase, FOBO Had raised just $1.6 million in seed funding; Gone has meanwhile raised just more than $1 million, according to CrunchBase. More here.

    According to Bloomberg, SanDisk is in advanced talks to sell itself to Western Digital Corp., and the two storage makers could reach a deal as soon as this week. More here.

    —–

    People

    One week after announcing major layoffs, Twitter is hiring New York Times editor at large Marcus Mabry to help develop editorial direction for its new Moments section.

    Jeff Seibert, senior director of product at Twitter, tells Stanford students what went well and what didn’t during the acquisition of his earlier startups by big-name technology companies — and why an acquisition isn’t always the best exit strategy for a promising startup.

    Inside Snapchat CEO Evan Spiegel‘s entertainment empire.

    Remember that altercation at Tesla’s battery gigafactory site between two Reno Gazette-Journal photographers and Tesla security guards? RGJ’s attorney is saying the guards were violent and that Tesla’s portrayal of the incident is “scandalous.”

    A 23-year-old Google employee is living in a truck in the company’s parking lot. (The upside, he says: He’s saving 90 percent of his income.)

    —–

    Jobs

    Bessemer Venture Partners is looking to hire an associate or senior associate for its cloud team in Silicon Valley. (That means spending time at both its San Francisco and Menlo Park, Ca., offices.) To apply, write to kristina at bvp.com.

    —–

    Data

    Apple CEO Tim Cook said yesterday that Apple Music has 6.5 million paid subscribers, plus another 8.5 million users who are still in their three-month free trial period.

    —–

    Essential Reads

    Google’s growing problem: Half of people do zero searches per day on mobile.

    Sky-high valuations are starting to backfire on some Silicon Valley companies that are trying to raise more money or go public, reports the WSJ, and it holds up Dropbox as a prime example. To wit, BlackRock, which led a $350 million deal that more than doubled Dropbox’s valuation from $4 billion to $10 billion early last year, has since cut its estimate of the company’s per-share value by 24 percent.

    A U.S. judge has dismissed a proposed class action lawsuit filed by an Uber driver against the ride service over a data breach disclosed by the company.

    —–

    Detours

    Why you should carve a pumpkin from the bottom.

    The new “Star Wars” trailer, scene-by-scene as GIFs for you to study.

    —–

    Retail Therapy

    weeHouse.

  • Crisis Experts on Amazon’s Latest Lob (and What Could Be Next)

    img-thingWhen a New York Times piece came out in August that described Amazon’s workplace culture as “bruising,” Amazon cofounder and CEO Jeff Bezos acted quickly to dampen the story’s blow. He wrote a memo to employees saying the account “doesn’t describe the Amazon I know” and pointed out a separate piece by an Amazon engineer who described the Times article as “utter reader bait.”

    It was a smart approach, suggests Marina Ein, whose Washington, D.C.-based crisis communications firm has represented Michael Milken and Dominique Strauss-Kahn, among others. “I thought the company was acting on very good advice,” she says.

    More confounding to Ein is a new post authored by former journalist and current Amazon spokesman Jay Carney, in which Carney not only systematically attacks the now two-month-old Times piece for being imbalanced but works to undermine several former employees quoted in the story.

    One is former site merchandiser Bo Olson, who spent roughly 20 months at Amazon and had told the Times for its story, “You walk out of a conference room and you’ll see a grown man covering his face . . . Nearly every person I worked with, I saw cry at their desk.”

    Wrote Carney of Olson today: “His brief tenure at Amazon ended after an investigation revealed he had attempted to defraud vendors and conceal it by falsifying business records. When confronted with the evidence, he admitted it and resigned immediately.”

    “I think it’s crazy,” says Ein of Carney’s unexpected missive.

    More here.

  • StrictlyVC: October 19, 2015

    Hi, everyone, happy Monday! No column today, but we have some good stuff coming your way tomorrow, so stay tuned.

    Also, congratulations to our co-conspirator in StrictlyVC events and our favorite guest editor, investor Semil Shah, on his beautiful week-old twin sons. We’re so happy for his family.

    —–

    Top News in the A.M.

    The Transportation Department plans to announce today that it wants to soon require registration for all unmanned drones “except for toys and those with minimal safety risk,” according to the WSJ. Its concern: That the devices increasingly pose a threat to people on the ground and in the air.

    This morning, Amazon has come out swinging hard at the mid-August New York Times piece that called the company’s workplace culture “bruising.”

    Hundreds of iOS applications have just been pulled from the App Store, following a report from analytics service SourceDNA, which uncovered a group of applications that were extracting users’ personally identifiable information, including their email associated with their Apple ID, device and peripheral serial numbers, and a list of apps installed on their phone.

    —–

    New Fundings

    AppSheet, a three-year-old, Seattle-based startup whose tool lets companies build their own custom mobile apps without writing code, has raised $1.5 million in seed funding from New Enterprise Associates. The company has now raised $2.1 million altogether. GeekWire has more here.

    Ensighten, a six-year-old, San Jose, Ca.-based maker of enterprise tag management software to enable companies to manage their sites more effectively,has raised $53 million in private equity and debt financing. Insight Venture Partners, Lead Edge Capital, Mack Capital and Volition Capitalprovided the equity; Silicon Valley Bank provided the debt. AdExchanger hasmore here.

    HealthiPASS, a two-year-old, Chicago-based patient check-in and payments company, has raised an undisclosed amount of Series A funding led by OCA Ventures, with participation from Beverly Capital and MPG Equity Partners.More here.

    StreetHub, a two-year-old, London-based startup that helps independent retailers be discovered and sell online, has raised $2.6 million in new funding led by earlier investor Octopus Ventures, with participation from Index Ventures and Playfair Capital. TechCrunch has more here.

    TinderBox, a five-year-old, Indianapolis Ia.-based company that sells cloud-based sales productivity software, has raised $7 million in funding co-led by Greycroft Partners and Allos Ventures, with participation from the regional firm High Alpha. Indianapolis Business Journal has more here.

    UserZoom Technologies, an eight-year-old, San Jose, Ca.-based SaaS platform used to test web and mobile products, has raised $34 million in new funding led by TC Growth Partners, with participation from Trident Capital and StepStone Group. NovoBrief has more here.

    —–

    Exits

    Dyson, the British maker of vacuums, has agreed to acquire Ann Arbor, Mich.-based battery startup Sakti3 for $90 million in cash, according to Quartz. Sakti3 has raised around $50 million in VC funding from Dyson, Beringea, GM Ventures, ITOCHU Corp. and Khosla Ventures.

    Time Inc. has acquired Hello Giggles, operator of the pop-culture, beauty and lifestyle website HelloGiggles.com, for $20 million, give or take, says the WSJ. The company was founded in 2011 by entertainer Zooey Deschanel.

    —–

    Exits

    Ellipse Technologies, a 10-year-old Aliso Viejo, Ca.-based company that makes orthopedic implant systems, has filed for a $75 million IPO. Its largest outside shareholders include HBM Healthcare Investors, which owns 29.9 percent of the company; Wexford Capital, which owns 18 percent; and HBM-MedFocus, which owns 12.9 percent. More here.

    Match Group, a spinoff of IAC that owns properties like Tinder and OKCupid, has filed to go public. TechCrunch has much more here.

    Mimecast, a 12-year-old, London-based email security provider, has filed to go public on Nasdaq. The company has raised roughly $90 million over the years, shows CrunchBase. Its investors include Insight Venture Partners, which owns 19.8 percent of the company; Index Ventures, which owns 17 percent; and Dawn Capital, which owns 14.5 percent. Reuters has more here.

    —–

    People

    Legendary venture capitalist Michael Moritz has published an opinion piece about the boom in “unicorn” tech businesses, saying many are “subprime.”

    Jacqueline Reses is leaving her role as chief development officer at Yahoo, to help boost the executive team at Square. Bloomberg has the storyhereYahoo Marketing Partnership SVP Lisa Licht is also out the door, though it isn’t clear yet where she’s headed.

    VCs tend to be optimistic about startups, but have they grown blindly defensive? Business Insider suggests the answer is yes.

    Inside a love triangle at Stanford’s Graduate School of Business.

    Meet venture capital’s teenage analyst.

    —–

    Jobs

    Mercedes-Benz is hiring a venture scout. The job is in Sunnyvale, Ca.

    —–

    Data

    Home prices are bad in San Francisco, but they’ve pulled almost as far away from the middle class in Los Angeles and San Diego, suggests Standard & Poor’s data.

    —–

    Essential Reads

    Late last week, TechCrunch obtained documents that show Pinterest has been forecasting $169 million in revenue this year and $2.8 billion in annual revenue by 2018, and expecting to grow its monthly active users to 151 million by year end and to 329 million by 2018.

    In April, Amazon filed suit against the operators of websites that offered Amazon sellers the ability to purchase fake, four and five-star reviews of their products. Now it’s going after individuals who provide such fake reviews.

    Apple wants mobile devices to be filled with apps. Google supports a world where people browse the web for most things. Sites are increasingly caught in the middle.

    Twenty new ways Facebook is eating the Internet.

    —–

    Detours

    Facebook will now notify you of “state-sponsored attacks” on your account.

    Parents talk differently to boys and girls after accidents.

    An epic escape from Syria.

    —–

    Retail Therapy

    24-karat gold manicure set, for when every other overpriced gift idea in the world has been exhausted.

  • StrictlyVC: October 16, 2015

    Ah, Friday, not a day too soon.:) Hope you have a fantastic weekend, everyone!

    —–

    Top News in the A.M.

    Regulators in Nevada just banned DraftKings, FanDuel and other daily fantasy sports sites, saying that they’re unlicensed gambling operators.

    —–

    YC Tells VCs Not to Worry About Its New, $700 Million Growth Fund

    Almost a year-and-a-half after Ali Rowghani resigned as COO of Twitter, he’s been appointed the head of Y Combinator’s growth fund by the organization’s president, Sam Altman.

    TechCrunch had heard whispers of the move earlier this week, but Altman made the announcement official earlier yesterday,tweeting of Rowghani that he’s a “wonderful partner to help companies scale.”

    Rowghani joined Y Combinator as a part-time partner back in November of last year. Earlier in his career, from 2002 through 2008, he served as the CFO of Pixar. (Rowghani had joined Twitter as CFO from Pixar but was made COO in 2012.)

    Yesterday, we hopped on the phone with Rowghani to discuss some of his plans moving forward.

    Most notably, Y Combinator will be leading investments in startups with its new growth capital, which is coming in part from Stanford University, Willett Advisors, and TrueBridge Capital Partners, according to the Wall Street Journal. Indeed, as TechCrunch reported early this week, YC is the lead investor in Checkr, a San Francisco-based startup that runs background checks and vets potential hires for fast-growing startups. The company is raising at least $30 million in Series B funding, at a valuation north of $250 million.

    For VCs who haven’t had to compete with Y Combinator in later-stage rounds, this is a Big Deal.

    More here.

    —–

    New Fundings

    Codacy, a three-year-old, Lisbon, Portugal-based company that makes an automated code review tool, has raised €1 million ($1.1 million) in a seed extension round from Caixa Capital, with participation from current investors Faber Ventures and E.S. Ventures. The company has now raised €1.5 million altogether. TechCrunch has more here.

    HappyCar, a two-year-old, Hamburg, Germany-based car rental comparison startup, has raised $1.58 million in funding led by Capnamic Ventures, with participation from HR Ventures, Global Founders Capital, and Swoodoo founder Wolfgang Heigl, among others. The company has now raised $3.2 million to date. TechCrunch has more here.

    Emergent VR, a months-old, Francisco, N.C.-based startup that promises full video capture that can be viewed on virtual reality headsets, has raised $2.2 million from Accel Partners, Rothenberg Ventures and Google Ventures. TechCrunch has more here.

    Klook, a year-old, Hong Kong-based company that sells travel activities across Asia, has raised $5 million in Series A funding led by Matrix Partners. China Growth Capital and Francis Leung, chairman of CVC Capital. The round brings the company’s total funding to $6.5 million. TechCrunch has more here.

    MycoTechnology, a two-year-old, Aurora, Co.-based natural food technology company that employs “gourmet fungi,” has held a first close on a $9.2 million Series A round from S2G Ventures, Seventure Partners, and Middleland Capital. More here.

    Quip, a three-year-old, San Francisco, Ca.-based company behind a hybrid communications, collaboration and productivity service, has raised $30 million in Series B funding led by Greylock Partners, with participation from Benchmark. Recode has more here.

    Virtus.pro, a 12-year-old, Moscow-based online sports company that live-streams video game tournaments, has received roughly $100 million in funding from billionaire Alisher Usmanov’s USM Holdings. Bloomberg has more here.

    ——

    Exits

    Alibaba is acquiring Youku Tudou, one of China’s top YouTube-like services, in a $3.5 billion deal. TechCrunch has more here.

    The publicly traded enterprise software company Red Hat is spending more than $100 million to acquired Ansible, a two-year-old, Santa Barbara, Ca.-based company that helps its clients build and manage hybrid IT deployments across the cloud and on site, reports VentureBeat. Ansible had raised $6 million from Menlo Venture and e.ventures, shows CrunchBase.

    —–

    IPOs

    First Data Corporation ended lower in its trading debut yesterday, a move that could dampen the struggling IPO market even more. Dealbook has more here.

    —–

    People

    Former Microsoft CEO (and current L.A. Clippers owner) Steve Ballmer says he has built up a 4 percent stake in Twitter.

    Flipboard cofounder Evan Doll isn’t returning to the company after a long sabbatical. Instead, he’s becoming an entrepreneur-in-residence at Redpoint Ventures.

    Square (and Twitter) CEO Jack Dorsey is giving almost 20 percent of his Square stake to an organization serving struggling communities.

    Matt Kelly, Facebook‘s head of growth product, has resigned from the company.

    The restaurant search app Zomato has laid off 300 employees, or 10 percent of its staff.

    —–

    Jobs

    Hercules Technology Growth Capital is looking to hire an associate. The job is in Palo Alto, Ca.

    —–

    Essential Reads

    Under pressure from regulators, Theranos has stopped collecting tiny vials of blood drawn from finger pricks for all but one of its tests, reports the WSJ.

    Stanford and Michael Bloomberg now back every Y Combinator startup.

    Dropbox‘s reinvention continues with Paper.

    —–

    Detours

    How well do you know the news? Take Fast Company’s quiz.

    American’s top 10 fears, 2015 edition.

    The new “billionaire beach bunker,” in Miami.

    Pirate cat.

    —–

    Retail Therapy

    Vuarnet Glacier Spectre sunglasses. James Bond wears them. Just sayin’.

  • Y Combinator Tells VCs Not to Worry About Its New $700M Fund

    Twitter_AliAlmost a year-and-a-half after Ali Rowghani resigned as COO of Twitter, he’s been appointed the head of Y Combinator’s growth fund by the organization’s president, Sam Altman.

    TechCrunch had heard whispers of the move earlier this week, but Altman made the announcement official earlier yesterday, tweeting of Rowghani that he’s a “wonderful partner to help companies scale.”

    Rowghani joined Y Combinator as a part-time partner back in November of last year. Earlier in his career, from 2002 through 2008, he served as the CFO of Pixar. (Rowghani had joined Twitter as CFO from Pixar but was made COO in 2012.)

    Yesterday, we hopped on the phone with Rowghani to discuss some of his plans moving forward.

    Most notably, Y Combinator will be leading investments in startups with its new growth capital, which is coming in part from Stanford University, Willett Advisors, and TrueBridge Capital Partners, according to the Wall Street Journal. Indeed, as TechCrunch reported early this week, YC is the lead investor in Checkr, a San Francisco-based startup that runs background checks and vets potential hires for fast-growing startups. The company is raising at least $30 million in Series B funding, at a valuation north of $250 million.

    For VCs who haven’t had to compete with Y Combinator in later-stage rounds, this is a Big Deal.

    More here.

  • StrictlyVC: October 15, 2015

    Hi, everyone, and happy birthday to one of our most cherished readers!

    —–

    Top News in the A.M.

    Square is officially going public, and investors in its most recent round were guaranteed a return of at least 20 percent, shows its SEC filing.

    The FBI and the US attorney’s office in Boston have launched an investigation into whether DraftKings and other fantasy sports operators are violating federal gambling laws, according to the Washington Post.

    —–

    Kinnek, a Small Biz Marketplace, Raises $20 Million Led by Thrive

    Kinnek, a 3.5-year-old, New York-based marketplace for small businesses to find suppliers and manage purchasing, has just raised $20 million in Series B funding led by Thrive Capital.

    It already looks like a smart bet.

    The company currently has 20,000 businesses and 2,000 suppliers using its marketplace, and they’re striking millions of dollars worth of deals every week, says cofounder Karthik Sridharan. Considering the company’s age and the fragmented landscape in which it’s operating – think restaurants to distilleries to manufacturers – that kind of traction is meaningful.

    It’s also just the tip of the iceberg, apparently. According to a spokesperson for the company, Kinnek “conservatively” estimates that U.S. businesses with up to 100 employees and $20 million in yearly sales spend more than $2.2 trillion annually on machinery, equipment and physical goods based on data from Visa, Intuit, and the Bureau of Labor Statistics.

    While we can’t vouch for the accuracy of that number (there are lots of different figures floating around out there), what is clear is the competition, or lack of it, facing Kinnek.

    More here.

    —–

    (Other) New Fundings

    17hats, a 1.5-year-old, L.A.-based business management app for small business owners, including project management, quotes, time tracking and bookkeeping, has raised $4 million in Series A funding led by Wavemaker Partners, which also led the company’s $1.3 million seed round earlier this year. TechCrunch has more here.

    8i, a 1.5-year-old, New Zealand-headquartered company that’s building a consumer media platform to let users create and share immersive 3D video of real people, has raised $13.5 million in Series A funding from RRE VenturesFounders Fund Science, Horizons Ventures, Samsung Ventures, Dolby Family Ventures, Bertelsmann Digital Media Investments, Sound Ventures, Signia Venture Partners, Inevitable Ventures, Freelands Ventures, Advancit Capital, Rothenberg Ventures and Boost VC (among others). TechCrunch has more here.

    23andMe, the nine-year-old, Mountain View, Ca.-based genetics-testing company, has raised $115 million in Series E funding led by Fidelity Management & Research Co., with participation from Google Ventures and New Enterprise Associates and new backers Casdin Capital and WuXi Healthcare Ventures. The financing implies a valuation of $1.1 billion, reports Bloomberg.

    Bracket Computing, a four-year-old, Sunnyvale, Ca.-based company that protects corporate customers from some of the security risk associated with cloud computing, and which was founded by veterans of the anti-spam company Ironport Systems, has raised $45 million. Fidelity Management and Research and Goldman Sachs joined the round along with several current investors. The company has now raised $130 million altogether. Venture Capital Dispatch has the story here.

    Clustree, a two-year-old, Paris, France-based recruiting tool that helps HR departments assess internal candidates by matching up employees’ talents and job openings, has raised $2.9 million (€2.5 million) in new funding from Alven Capital and business angels. TechCrunch has more here.

    Decibel Therapeutics, a months-old, Boston-based hearing company focused on discovering and developing new medicines to protect, repair and restore hearing, has raised $52 million in Series A funding led by Third Rock Ventures, with participation from SR One. Forbes has more here.

    FabFitFun, a five-year-old, L.A.-based women’s lifestyle subscription box company that sends off products from numerous categories, including beauty, fashion, food, wellness, and technology, has raised $3.5 million in funding led by New Enterprise Associates and Upfront Ventures. TechCrunch has more here.

    FollowAnalytics, a two-year-old, San Francisco-based mobile marketing automation and engagement platform, has raised $10 million in Series A funding led by Aspect Ventures, with participation from Salesforce Ventures. Earlier backers Sapphire Ventures, Zetta Venture Partners and others also joined the round. More here.

    Gaana, a five-year-old, New Delhi, India-based music streaming service, has raised an undisclosed amount of funding from Micromax, the country’s largest smartphone maker, which will now bundle Gaana’s music app on its devices. TechCrunch has more here.

    Galera Therapeutics, a six-year-old, Malvern, Pa.-based clinical-stage biotech developing new treatments for cancer patients, has raised $37 million in Series B funding led by Novo Ventures, with participation from earlier backers New Enterprise Associates, Novartis Venture Fund, Correlation Ventures and Galera Angels. More here.

    Hatch Baby, a two-year-old, Menlo Park, Ca.-based company whose smart changing pad is due to ship soon (it weighs babies so parents know they’re gaining enough weight as they grow), has raised $7 million in Series A funding led by True Ventures. Other participants in the round include Geoff RalstonJames Hong, H. Barton Co-Invest Fund, and Veddis Ventures. TechCrunch has more here.

    Hermo, a 3.5-year-old, Malaysia-based online cosmetics and skincare marketplace, has raised $2 million in Series A funding from Gobi Partners. Tech In Asia has more here.

    Lenddo, a four-year-old, New York-headquartered company that helps financial service providers with their credit scoring and online verification, has raised an undisclosed amount of Series B funding led by new investors AT Capital and Life.SREDA, with participation from earlier backers Omidyar NetworkBlumberg Capital and Golden Gate Ventures. More here.

    Mast Mobile, a two-year-old, New York-based mobile communications platform that provides phones to its corporate customers that feature separate work and personal numbers, has raised $7 million in funding led by by FirstMark Capital. Other participants include DFJ, Eniac Ventures, Harrison Metal, HMM Investors, and Initialized Ventures. We talked about the company yesterday with CEO David Messenger. More from that chat here.

    Niantic, a four-year-old, Mountain View, Ca.-based games maker that began as a lab within Google and was spun out last month, has raised $20 million in Series A funding from Pokémon Company Group, Google and Nintendo. TechCrunch has more here.

    OpenGov, a three-year-old, Mountain View, Ca.-based company whose software visualizes municipal financial data, allowing governments to access, analyze, and share that data with the public, has raised $25 million in Series C funding from earlier backers Andreessen Horowitz, Formation 8, Thrive Capital and AITV, along with new investors Glynn Capital, Sound Ventures, and Intuit founder Scott Cook. TechCrunch has more here.

    Outdoor Voices, a three-year-old, New York-based recreational apparel — or “athleisure wear” — company, has raised $7 million in new funding led by earlier backer General Catalyst Partners, with participation from Forerunner Ventures, Collaborative Fund, and 14W. The company had previously raised $1.1 million in seed funding. TechCrunch has more here.

    Zwipe, a six-year-old, Oslo, Norway-based company whose embedded fingerprint reader technology can authenticate card payments, just raised $5 million in Series B funding from Photon Future, a wholly owned subsidiary of the Shenzhen, China-based high-tech holding group Kuang-Chi Group. TechCrunch has more here.

    —–

    Exits

    VMware has announced plans to purchase email management app Boxer for an undisclosed amount. Three-year-old, Austin, Tex.-based Boxer had raised $3 million dollars from Sutter Hill Ventures. TechCrunch has more here.

    —–

    IPOs

    The eight-year-old, French music streaming service Deezer has announced that it plans to raise €300 million ($343 million) in a public listing that will take place in its native France at the end of this month. TechCrunch has more here.

    —–

    People

    Christina Smedley, who’d been PayPal’s VP of global brand and communications, is joining Facebook to run communications for Messenger. TechCrunch has more here.

    —–

    Jobs

    Eastman Kodak is looking for a director of business development. The job is in San Francisco.

    Pandora wants to add a senior associate to its corporate development group. The job is in Oakland, Ca.

    —–

    Data

    Yesterday, CB Insights and KPMG published their most recent numbers. Today, it’s Dow Jones VentureSource, and the theme is much the same: Investments continued apace in the third quarter, hitting $19 billion, according to its findings. U.S. venture investments hit $54.6 billion for the first nine months of the year; that’s nearly all the venture money invested in 2014 (which was $55.5 billion). Still, bubbly as those figures may sound, they’re still likely to be below the record $94.17 billion invested in 2000 at the height of the dot-com boom, says the report. Much more here.

    —–

    Essential Reads

    Theranos, which has raised more than $400 million from investors, is struggling with its blood tests, reports the WSJ. Notably, it has retained legendary litigator David Boies, too, which could mean one of two things. Meanwhile, founder and CEO Elizabeth Holmes has pronounced the WSJ piece “disappointing” and “full of falsehoods.”

    The unicorn boom has just begun, argues Forbes.

    —–

    Detours

    A Twitter account run by a chicken.

    —–

    Retail Therapy

    The August doorbell cam, accessible from you phone.


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