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The founder of one of 2019’s most buzzworthy startups is putting on his VC hat.
Rahul Vohra, the creator of the $30/month subscription emailing service Superhuman, and Todd Goldberg, the founder of the marketing business Mailjoy, are circulating a pitch deck to potential limited partners, with plans to raise a $4 million debut angel fund, TechCrunch has learned.
Goldberg declined to comment. Vohra did not respond to a request for comment.
San Francisco-based Superhuman has raised millions in venture capital funding, attracting a $260 million valuation with a $33 million investment led by the respected firm Andreessen Horowitz earlier this year. Quickly, Superhuman developed a loyal fan base and inspired a new wave of startups building for the “prosumer.”
“Superhuman has become an aspirational brand and product that many SaaS companies want to emulate,” Vohra and Goldberg write in the deck, obtained by TechCrunch. “Founders of these companies seek out Rahul as an investor. This helps us get into the hottest rounds — even the closed ones.”
Vohra and Goldberg have been seeding startups for the past four years, according to the deck. Both men have completed the Y Combinator startup accelerator and funded other graduates of the program, including Tandem, which emerged from YC this summer with funding from a16z, Vohra and several others. One or both of the pair have also invested in Command E, a tool that enables instant cloud search; Mercury, a bank tailored to the needs of startups; and Sandbox VR, which is developing premium virtual reality experiences in retail locations.
Many of Vohra and Goldberg’s existing investments, such as Sandbox VR, Tandem and Mercury, are also a16z portfolio companies, as is Superhuman. We’re guessing Vohra has served as a sort of scout for the firm, bringing in attractive deals for a16z to lead, with room for him to nab a friendly allocation.
Vohra and Goldberg are hoping to collect capital from LPs to scale their investment activity. According to the deck, they will make 25 to 35 deals with check sizes ranging between $50,000 to $150,000. The fund will invest in the “prosumerization” of the enterprise, business infrastructure, health, fitness & wellness, “devsumer” & low-code/no-code, audio-first products, creator tools and “enterprization” of consumers.
Indeed, the deck is packed with buzzwords. The “prosumerization” of the enterprise is tech-speak for work products with nicer interfaces and more premium features. A “devsumer” tool is one that enables consumers to complete developer tasks on their own, i.e. without coding — devsumer products on the market include Airtable, Notion and Retool. Finally, the “enterprization” of consumers simply means the rise of business tools built for consumers first.
Vohra and Goldberg cite their experience as operators as one of their “unfair advantages,” along with their ability to secure large allocations (a decent piece of the pie) in startups, their YC network, relationships with other angels & funds and their ability to get pro rata access in later rounds.
Founders often search for established operators to join their cap tables for exactly these reasons. Someone like Vohra can help startups foster relationships with big-name venture capital backers and make critical introductions to their own rapidly growing pool of customers.
The rise of micro-funds led by networked entrepreneurs, including Niv Dror’s Shrug Capital or Brianne Kimmel’s new outfit, Work Life Ventures, for example, could pose a threat to existing institutional seed investors, who may not be as well-versed in specific sectors or able to offer as much time to potential founders. On the other hand, many micro-funds co-invest with or are backed by VCs, which means returns from the fund end up in the same pockets, in essence.
Deploying capital from a fund, however, is time consuming. How Vohra can balance building a Series B startup and investing in upwards of 35 businesses remains to be seen.
Though Superhuman was founded in 2014 — Vohra incorporated the business immediately after the LinkedIn acquisition of his previous startup, Rapportive — the company is essentially still in closed beta (those looking for access must be approved for the service in iOS’s TestFlight, where constant beta updates are delivered). Today, it’s popular in the Bay Area tech scene where the tagline “sent via Superhuman” has become a status symbol of sorts. But many are uncertain non-techies will be willing to shell out $30 per month for a luxury email tool.
With that said, Superhuman has a wait list of 180,000 people, according to The New York Times, which spoke to Vohra in June. With a large and growing valuation, an email tool with rave reviews and a set of loyal followers, Vohra will likely have no trouble navigating his way into Silicon Valley’s hottest deals.
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LinkedIn, the social networking service for the working world, is today taking the wraps off its latest effort to provide its users with better tools for presenting their professional selves, and to make the process of recruitment on the platform more effective. It will now offer a new feature called Skills Assessments: short, multiple-choice tests that users can take to verify their knowledge in areas like computer languages, software packages and other work-related skills.
The feature is being rolled out globally today. However, while offering the skills assessments as part of an earlier, limited beta, LinkedIn tells us that 2 million tests were taken and applied across the platform. That’s a sign of how the full service might well be a very popular, and needed, feature.
First up are English-language tests covering some 75 different skills, all free to take, but the plan, according to Emrecan Dogan, the group product manager in its talent solutions division, is to “ramp that up agressively” in the near future, both adding in different languages and more test areas.
(Side note: Dogan joined LinkedIn when his company ScoreBeyond was quietly acquired by LinkedIn last year. ScoreBeyond was an online testing service to help students prep for college entrance exams. Given LinkedIn’s efforts to get closer to younger users — again, in part because of competitive pressure — I suspect that is one area where LinkedIn will likely want to expand this assessment tool longer term, if it takes off.)
The skills assessment tool is coming at an important moment for LinkedIn.
The Microsoft-owned company now has nearly 650 million people around the world using its social networking tools to connect with each other for professional purposes, most often to network, talk about work, or find work.
That makes for a fascinating and lucrative economy of scale when it comes to rolling out its products. But it comes with a major drawback, too: the bigger the platform gets, the harder it is to track and verify details about each and every individual on it. The skills assessment becomes one way of at least being able to verify certain people’s skills in specific areas, and for that information to start feeding into other channels and products on the platform.
It’s also a critical competitive move. The company is by far the biggest platform of its kind on the internet today, but smaller rivals are building interesting products to chip away at that lead in specific areas. Triplebyte, for example, has created a platform for those looking to hire engineers, and engineers looking for new roles, to connect by way of the engineers — yes — taking online tests to measure their skills and match them up with compatible job opportunities. Triplebyte is focused on just one field — software engineering — but the template is a disruptive one that, if replicated in other verticals, could slowly start to chip away at LinkedIn’s hegemony.
Other larger platforms also continue to look at ways that they might leverage their own social graphs to provide work-related networking services. Facebook, for example, had incorporated e-learning into its own efforts in professional development, laying the groundwork for other kinds of interactive training and assessment.
This is not the first time that LinkedIn has tinkered with the idea of offering tests to help ascertain the level of users’ skills on its platform, although the information was used for different ends. In India, several years ago the company started to incorporate tests on its platform to help suggest jobs to users. Nor is it the first time that the company has worked on ways to improve its skills and endorsement profile to make them more useful.
Testing on actual skills is just one area where verification has fallen short on LinkedIn. Another big trend in recruitment is the push for more diverse workforces. The thinking is that traditionally too many of the parameters that have been used up to now to assess people — what college was attended, or where people have worked already — have been essentially cutting many already-disenfranchised groups out of the process.
Given that LinkedIn currently has no way of ascertaining when people on its platform are from minority backgrounds, a skills assessment — and especially a good result on one — might potentially help tip the balance in favor of meritrocracy (if not proactive diversity focused hiring as such).
For regular users, the option to take skills assessments and add them to your profile will appear for users as a button in the skills and endorsements area of their profiles.
Users take short tests — currently only multiple choice — which Dogan says are created by professionals who are subject area experts that already work with LinkedIn, for example to write content for LinkedIn learning.
Indeed, in November last year, the company expanded LinkedIn Learning to include content from third-party providers and Q&A interactivity so there is a trove of work already there that might be repurposed as part of this new effort.
These tests measure your knowledge in specific areas, and if you pass, you are given a badge that you can apply to your profile page, and potentially broadcast out to those who are looking for people with the skills you’ve just verified you have. (This is presuming that you are not cheating and having someone else take the test for you, or taking it while looking up answers elsewhere.) You can opt out of sharing the information anywhere else, if you choose.
If you fail, you have three months to wait before taking it again, and in the meantime LinkedIn will use the moment to upsell you on its other content: you get offered LinkedIn Learning tests to improve your skills.
For those who pass, they will need to retake tests every year to keep their badges and credentials.
On the side of recruiters, they are able to use the data that gets amassed through the tests as a way of better filtering out users when sourcing candidate pools for job openings. This is a huge issue on a platform like LinkedIn: while having a large group of people on there is a boost for finding matches, in fact there can be too many, and too much of a challenge and time suck to figure out who is genuinely suitable for a particular role.
There is another angle where the skills are being used to help LinkedIn monetise: those who are putting in ads for jobs can now buy ads that are targeted specifically to people with certain skills that have been verified through assessments.
There are still some shortfalls in the skills assessment tool as it exists now. For example, coding tests are all multiple choice, but that’s not how many coding environments work these days. (Triplebyte for example offers collaborative assessments.) And of course, skills is just one aspect of how people might fit into a particular working environment. (Currently there are no plans to bring in psychometric or similar assessments, Dogan said.) This is an interesting start, however, and worth testing the waters as more interesting variations in recruitment and connecting professionals online continue to proliferate.
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We’ve aggregated the world’s best growth marketers into one community. Twice a month, we ask them to share their most effective growth tactics, and we compile them into this Growth Report.
This is how you’re going stay up-to-date on growth marketing tactics — with advice you can’t get elsewhere.
Our community consists of 600 startup founders paired with VP’s of growth from later-stage companies. We have 300 YC founders plus senior marketers from companies including Medium, Docker, Invision, Intuit, Pinterest, Discord, Webflow, Lambda School, Perfect Keto, Typeform, Modern Fertility, Segment, Udemy, Puma, Cameo, and Ritual.
You can participate in our community by joining Demand Curve’s marketing webinars, Slack group, or marketing training program. See past growth reports here.
Without further ado, onto the advice.
Based on insights from Guillaume Cabane.
A customer testimonial from a well-known executive may be the social proof that improves conversion rates on your landing pages or in sales collateral. But executives of reputable companies are generally busy and difficult to reach.
Here’s how to get the testimonial:
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We just closed our $11 million Series A financing, and within 15 minutes of the news hitting the wire, the weirdness began. It turns out that once you announce to the world that you have money, everyone wants a piece. Some want to earn your business, some actually want your business, some want you to move your business, and others just want to straight-up steal your business.
These are the weird things that no one tells you will happen after you close your round that I’m hoping you will find helpful, insightful and maybe spare you a headache or two.
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Yesterday at TechCrunch’s Enterprise event in San Francisco, we sat down with three venture capitalists who spend a lot of their time thinking about enterprise startups. We wanted to ask what trends they are seeing, what concerns they might have about the state of the market and, of course, how startups might persuade them to write out a check.
We covered a lot of ground with the investors — Jason Green of Emergence Capital, Rebecca Lynn of Canvas Ventures and Maha Ibrahim of Canaan Partners — who told us, among other things, that startups shouldn’t expect a big M&A event right now, that there’s no first-mover advantage in the enterprise realm and why grit may be the quality that ends up keeping a startup afloat.
Jason Green: When we started Emergence 15 years ago, we saw maybe a few hundred startups a year, and we funded about five or six. Today, we see over 1,000 a year; we probably do deep diligence on 25.
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Zhihu may not be as well known outside of China as WeChat or ByteDance’s Douyin, but over the past eight years, it has cultivated a reputation for being one of the country’s most trustworthy social media platforms. Originally launched as a question-and-answer site similar to Quora, Zhihu has grown to be a central hub for professional knowledge, allowing users to interact with experts and companies in a wide range of industries.
Headquartered in Beijing, Zhihu recently raised a $434 million Series F, its biggest round since 2011. The funding also brought Zhihu two important new partners: video and live-streaming app Beijing Kuaishou, which led the round, and Baidu, owner of China’s largest search engine (other participants in the round included Tencent and CapitalToday).
Launched in 2011, Zhihu (the name means “do you know”) is most frequently compared to Quora and Yahoo Answers. While it resembled those Q&A platforms at first, it has grown in scope. Now it would be more accurate to say that the platform is like a combination of Quora, LinkedIn and Medium’s subscription program.
For example, Zhihu has an invitation-only blogging platform for verified experts and since launching official accounts, it has become a channel for companies and organizations to communicate with users. A representative for Zhihu told TechCrunch that the platform had 220 million users and 30,000 official accounts as of January 2019 (for context, there are currently about 800 million Internet users in China), who have posted a total of 130 million answers so far.
The company’s growth will be closely watched since Zhihu is reportedly preparing for an initial public offering. Last November, the company hired its first chief financial officer, Sun Wei, heightening speculation. A representative for the company told TechCrunch the position was created because of Zhihu’s business development needs and that there is currently no timeline for a public listing.
At the same time, the company has also dealt with reports that its growth has slowed.
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China’s ByteDance, which owns popular video sharing app TikTok, is already working to enter the smartphone business and the music streaming space. It appears the world’s most valued startup also has ambitions about developing its own search engine. Kind of.
A company spokesperson told TechCrunch on Thursday that it has introduced a search function in ByteDance’s Toutiao news app.
“The function is in line with Toutiao’s mission of ‘information creates value.’ Users can try the function in the app and provide feedback and suggestions on the new function,” the spokesperson said.
The search function gleans information from both content on Toutiao as well as the entire world wide web, TechCrunch understands.
From the looks of it, ByteDance’s current search functionality is more alike WeChat’s in-app search function than local giant Baidu’s or Google’s offering.
On WeChat, when a person looks up a keyword, they see news articles about that topic, followed by mentions of it from their friends. This is followed by random articles about the subject. When a user clicks on any of these article or news links, WeChat serves them the page through its in-app browser, giving them no option to leave the walled-garden.
The idea is to change the way people think about — and use — a search engine altogether. And in China, where apps such as WeChat and TikTok have gained gigantic reach on mobile, it seems logical to add all new functionalities within those apps.
ByteDance’s interest in a search engine became public on Wednesday after it published a recruitment post on its WeChat account. The startup said its “search engine” is aimed at “hundreds of millions of mobile users in China.”
“We will build a universal search engine with a better user experience from 0 to 1. Only you don’t want to search, there is no [info] you can’t find, because we can search the whole network,” the company said in the post.
According to the description in the listing, ByteDance has already hired people from other search engines such as Google, Baidu, Bing and 360.
An analysis of LinkedIn listings by TechCrunch found more than 100 people from Google, Microsoft and Baidu, many of whom worked around search divisions at the previous companies, have joined ByteDance in recent quarters.
ByteDance following Tencent’s WeChat model to create its alternate search business may add more worries to Baidu, which currently holds more than 75% of the search engine market in China, according to third-party web service StatCounter Global Stat. Microsoft’s Bing is also operational in the country, though its market share remains in the low-single digits. Google currently does not offer its search feature in China — though it has attempted to change that in recent months to no luck.
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At a conference in New Delhi early last year, Netflix CEO Reed Hastings was confronted with a question that his company has been asked many times over the years. Would he consider lowering the subscription cost in India?
It’s a tactic that most Silicon Valley companies have adapted to in the country over the years. Uber rides aren’t as costly in India as they are elsewhere. Spotify and Apple Music cost less than $2 per month to users in the country. YouTube Premium as well as subscriptions to U.S. news outlets such as WSJ and New York Times are also priced significantly lower compared to the prices they charge in their home turf.
Hastings had also come prepared: He acknowledged that the entertainment viewing industry in India is very different from other parts of the world. To be sure, much of the pay-TV in India is supported by ads and the access fee remains too low ($5). But that was not going to change how Netflix likes to roll, he said.
“We want to be sensitive to great stories and to fund those great stories by investing in local content,” he said. “So yes, our strategy is to build up the local content — and of course we have got the global content — and try to uplevel the industry,” he said, identifying movie-goers who spend about Rs 500 ($7.25) or more on tickets each month as Netflix’s potential customers.
Indian commuters walking below a poster of “Sacred Games”, an original show produced by Netflix (Image: INDRANIL MUKHERJEE/AFP/Getty Images)
Less than a year and a half later, Netflix has had a change of heart. The company today rolled out a lower-priced subscription plan in India, a first for the company. The monthly plan, which restricts usage of the service to mobile devices only, is priced at Rs 199 ($2.8) — a third of the least expensive plan in the U.S.
At a press conference in New Delhi today, Netflix executives said that the lower-priced subscription tier is aimed at expanding the reach of its service in the country. “We want to really broaden the audience for Netflix, want to make it more accessible, and we knew just how mobile-centric India has been,” said Ajay Arora, Director of Product Innovation at Netflix.
The move comes at a time when Netflix has raised its subscription prices in the U.S. by up to 18% and in the UK by up to 20%.
Netflix’s strategy shift in India illustrates a bigger challenge that Silicon Valley companies have been facing in the country for years. If you want to succeed in the country, either make most of your revenue from ads, or heavily subsidize your costs.
But whether finding users in India is a success is also debatable.
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There is a special chaos that happens when a startup reaches 30 employees. People have a harder time tracking what’s going on, and it’s easy for some to feel left out or ignored.
Right when you want employees focusing on taking the company to the next level, they’re suddenly focused on their own futures. Insecurities and politics can abound, and the work can suffer.
How to stop the madness? In my experience, it all comes down to structure. It might seem early, or scary to a company used to succeeding on grit, but 30 is a key time to begin putting processes into place.
You’re no longer 10 people sitting around a table together, and communication can start to break down. Looking to large companies is no help either. It’s easy to get lost in a sea of frameworks, and you don’t want to overwhelm your team.
What steps can you take to keep things on track and scale effectively? How much is too much?
My company, Bright + Early, works with companies at exactly this stage, helping them grow up without losing the culture that makes them special. For a company just on the verge of scaling, here’s what I recommend.
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